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

  • USC Launches Major AI Initiative After $200M Gift

    The University of Southern California in Los Angeles, Calif., recently announced that it has launched a “transformational” new AI initiative thanks to a $200M gift, according to a news release. The project will leverage AI toward breakthroughs and innovations in subjects like the health sciences, business, security, and the arts.

  • Stanford Online Reveals New Immersive Learning Studio

    Stanford Online recently marked its 30th anniversary with the announcement of a new immersive learning studio, according to a university news release. The studio takes advantage of AI-powered and immersive learning technologies to continue delivering personalized and faculty-led education.

  • Higher Ed is Betting on New Buildings While Quietly Undermining Their Campuses — Here’s Why

    In this climate, the owner’s representative has changed from a delivery-focused advisor to a strategic campus partner. Institutions are increasingly relying on owner’s reps not just to manage, cope, schedule, and budget, but also help evaluate whether a project should proceed at all.

  • abstract illustration of school gym

    How the Gymnasium Can Serve as a Model for Learning Space Design

    Multipurpose gyms work because flexibility was built into the brief from the start, not retrofitted later. The same logic applies to academic spaces.