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

  • University of Illinois Moves Forward with College Sports’ Largest Digital Scoreboard

    The University of Illinois in Champaign, Ill., recently announced a series of upgrades to Gies Memorial Stadium that will include the largest scoreboard in college sports, according to a news release.

  • Illinois State University Breaks Ground on College of Fine Arts Transformation

    Illinois State University in Normal, Ill., recently held a groundbreaking ceremony for the Wonsook Kim College of Fine Arts transformation project, according to university news. The series of new constructions and renovations will upgrade spaces in Centennial East, the Center for the Visual Arts, and the Center for the Performing Arts, as well as replace the existing Centennial West facility with a new Commons Building.

  • Wisconsin District Breaks Ground on New Elementary School

    The School District of La Crosse in La Crosse, Wis., recently broke ground on a new elementary school that will consolidate the students and staff of two existing schools, according to local news. Funding for the school comes from a $53-million referendum approved in 2024.

  • Houston-Area High School Breaks Ground on 117,000SF Multi-Use Facility

    North Shore Senior High School, part of Galena Park ISD in Houston, Texas, recently broke ground on a new multi-use facility for student extracurriculars, according to a news release. The North Shore Multi-Use Facility will include dedicated practice and training space for the school’s athletics and fine arts programs.