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

  • Malibu High School Campus Completes $102M Phase 1 of Construction

    Malibu High School in Malibu, Calif., recently announced that it has completed phase 1 of construction for its new campus, a news release reports. The first phase consisted of developing and modernizing the site of a former elementary school into a new, 70,000-square-foot, two-story facility.

  • concentric silhouettes of a human head

    How Physical Space Shapes the Mind: Designing for Better Learning Outcomes

    Research in environmental psychology and neuroscience increasingly suggests that the way a room is designed can influence memory, focus, or even a student's sense of belonging.

  • University of West Florida Opens New Laboratory Facility

    The University of West Florida recently announced that renovation work is complete on a new lab building for its campus in Pensacola, Fla., according to university news. Building 80 will serve as the home to the university’s civil engineering program and the Tyler Chase Norwood Construction Management Program.

  • Beyond Four Walls

    Operable glass walls provide a dynamic solution for educational spaces. They align with today’s evolving teaching methods and adapt to the needs of modern learners. Beyond the functional versatility, movable glass walls offer clean, contemporary aesthetics, slim and unobtrusive profiles, and versatile configurations that cater to the evolving needs of students and educators alike.

Digital Edition