Skip to main content
Add as a preferred source on Google

Cooperative Purchasing Contracts Can Help Schools Stay Within Budgets

  • 11/01/17

Over the last several years there has been a proliferation of purchasing cooperatives in the education space and it’s easy to see why. Today’s procurement professionals continue to face the daunting challenge of spending less and getting more. Be it through increased efficiencies, aggregated knowledge or leveraging resources, cooperative purchasing contracts can help.

Strength in Numbers

The sheer volume of purchasing power aggregated by the size of the cooperative provides individual members with economies of scale — and pricing advantages — they would likely not be able to achieve on their own. Add to that the considerable time savings associated with researching new product categories, sourcing competitive quotes, and negotiating pricing. By eliminating time spent on these tasks, resources can be reallocated to focus on more strategic projects.

Cooperative contracts can also represent a revenue generating tool. On top of exclusive savings and rebates, a true member-owned cooperative typically shares its profits with members in the form of “patronage” refunds, which are based on a member’s annual purchases.

Time Efficiencies

“We average approximately 100 days from beginning to end, in terms of conducting an RFP,” said Rick Gay, Procurement Officer at Houston Independent School District. “Utilizing a contract that has already gone through a bid process means we have immediate access to an agreement that adheres to our board policies or state statutes. It also means we can quickly conduct a market trend analysis to ensure we’re in compliance with federal spend regulations.”

The procurement team at Houston ISD comprises 12 sourcing specialists that typically conduct 350-400 solicitations per year. That requires a significant amount of time and resources, and every measure of savings helps. “It’s all about ensuring that our end users get what they need, at the best price available, as quickly as possible,” Rick said. “If that means using a cooperative contract, I’m in!”

This article originally appeared in the issue of .

Featured

  • Benson Polytechnic High School in Portland, OR

    Preserving Legacy, Designing for the Future

    As historic academic buildings age, institutions face a difficult decision: preserve and adapt or demolish and rebuild. How do we honor the legacy of these spaces while adapting them to meet the needs of modern learners?

  • Dallas ISD Voters Approve $6.2B Bond Package

    Dallas ISD voters have approved a record-setting $6.2-billion bond package that district leaders say will modernize aging campuses, eliminate portable classrooms and reshape learning environments across one of the nation’s largest school systems.

  • Harvard Announces Replacement Facility for Native American Program

    Harvard University in Cambridge, Mass., recently announced that construction will begin this spring on a new home for its Native American Program, according to university news. The 6,500-square-foot, all-electric building will stand three stories and serve as the central hub for the Harvard University Native American Program (HUNAP).

  • Universities Continue to Launch Multimillion-Dollar Campus Transformations

    What makes the current wave of campus development especially noteworthy is its emphasis on multi-use functionality and community integration. Institutions are no longer investing solely in academic or athletic facilities in isolation. Instead, they are creating destinations that blend recreation, health, housing, and event-driven economic activity.