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The financial situation at many academic institutions might be best summed up as tenuous. Even for those that are thriving, margins are tighter and cost increases are shrinking budgets. Procurement teams are often stuck in the middle, trying to find the high-quality goods and services colleges and universities need to remain competitive while also trying to find cost savings at every turn.
This has caused many institutions to revisit procurement practices, taking a look at the traditional model of RFPs in higher education alongside increased use of GPO contracting.
Higher education procurement has relied on the RFP process for decades. Institutions define requirements internally, draft a formal solicitation, publish the RFP, evaluate supplier responses, negotiate terms, and ultimately award a contract.
While this provides control and customization, it’s also extremely resource intensive. Managing the RFP process can stretch into months, and negotiations may further extend timelines.
While an RFP in higher education can result in competitive pricing, that doesn’t mean it minimizes costs. Many providers don’t respond to RFPs, choosing to look for higher volume. Even suppliers who do respond may not offer the significant volume discounts they are willing to give to larger purchases.
Procurement staff must coordinate with legal, finance, IT, and departmental stakeholders. While RFPs can yield competitive pricing, the full cost of the process often extends beyond the final contract price.
Cooperative purchasing aggregates demand across institutions to create collective buying power. Under GPO contracting, cooperatives like E&I Cooperative Services conduct a competitive solicitation on behalf of its members, evaluate suppliers, and award contracts that are made available to members. You aren’t required to use any cooperative contract but can opt in when the contract aligns with your needs.
Aggregating demand across more than 6,200 member institutions, E&I achieves significant volume discounts, often reducing costs by 10–15% versus what individual RFPs can produce and significantly reducing the administrative overhead, vs. RFPs in higher education.
When you’re looking at cost savings, this usually starts with unit price. But price alone doesn’t reflect the full cost of procurement decisions. The internal costs of staff time, legal review, lengthy negotiations, and opportunity cost can be substantial. These indirect costs are rarely captured in sourcing analyses but materially affect overall value.
Cooperative purchasing addresses cost differently. Aggregated demand results in more favorable pricing, and streamlining the procurement process lowers administrative overhead. When procurement teams reuse pre-negotiated contracts, savings accrue from pricing and efficiency.
Compliance in higher education procurement is mandatory to meet institutional governance, grant requirements, and government funding needs. So, demonstrating competitive sourcing, fairness, and transparency is essential.
With an RFP in higher education, you bear full responsibility for compliance documentation, evaluation records, and audit readiness. With cooperative purchasing, much of this responsibility shifts to the cooperative, which conducts competitive solicitations designed to meet public-sector standards. Besides saving time, this has financial implications as well. Reduced audit exposure, fewer procurement delays, and standardized contract terms all contribute to cost control, even if they are not reflected directly in pricing.
Most institutions don’t see cooperative purchasing and RFPs as mutually exclusive. Each model is used where it makes the most sense. Highly specialized, unique applications may require a traditional RFP. However, most institutions have similar needs, and cooperative agreements often cover specific suppliers but give you options to customize purchasing to meet very specific needs.
For example, opting into a cooperative contract may give you a volume discount across a supplier’s product line while still allowing you to purchase whatever you need.
The question is not whether GPO contracting or traditional RFPs are inherently better, but how each can support your institutional goals.
E&I Cooperative Services offers a distinct approach to cooperative purchasing. It is the only member-owned nonprofit sourcing cooperative focused solely on education. With more than 6,200 member institutions, E&I aggregates demand to achieve volume savings with top-tier suppliers. Because E&I Cooperative Services serves the education sector exclusively, contracts are designed to meet the specific compliance, operational, and financial needs of higher education.
Learn more about how E&I Cooperative Services operates, its mission, and how it can help support your procurement strategy.