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

  • Western Kentucky University, Gilbane Announce “Elevate WKU” Partnership

    Western Kentucky University in Bowling Green, Ky., recently announced that it has reached the financial close on a on a public-private partnership (P3) with Gilbane Development, according to a news release.

  • Wold Architects & Engineers Announces Acquisition of JJCA

    Wold Architects & Engineers, based in Minneapolis, Minn., recently announced that it has acquired JJCA, an architecture firm based in Nashville, Tenn., according to a press release. JJCA specializes in healthcare and education design; the partnership allows both firms to expand their presence across the country while building on existing strengths.

  • Colorado School District Breaks Ground on Unified PK–12 Campus

    The Haxtun School District No. Re-2J in Haxtun, Colo., recently announced that ground has been broken on a renovation/addition project that will unite its two schools, Haxtun Elementary and Haxtun Jr/Sr High School, according to a news release.

  • University of Pittsburgh to Build New Residence Hall

    The Board of Trustees from the University of Pittsburgh in Pittsburgh, Penn., recently approved the construction of a new residence hall for first-year students, according to university news.