Ensuring Compliance in Higher Ed with Cooperative Purchasing Contracts

With a legally compliant cooperative purchasing contract in higher ed, you can buy with confidence. A cooperative purchasing contract must meet rigorous standards to comply with procurement requirements.

Failing to comply with procurement requirements and laws can have significant implications, including financial penalties, strained relationships with funders, and a loss of trust.

Procurement compliance is complex, and you need to work with partners that understand the nuances of higher education to ensure cooperative purchasing contracts adhere to compliance requirements and help you achieve your strategic goals.

Compliance in Higher Education Procurement

As a quick reminder of how complex compliance gets, here is a partial list of the key federal laws and regulations governing colleges and universities, updated in 2024 by the Higher Education Compliance Alliance:

• Anti-Kickback Act of 1986: Prohibits payments or gratuities made for securing favorable treatment in public procurement.
• Anti-discrimination laws for federal contractors: Enforces non-discrimination in hiring and employment practices for federal contractors.
• Byrd Amendment: Prohibits the use of federal funds for lobbying by contractors and grantees.
• Copeland Anti-Kickback Act: Prohibits inducing or accepting kickbacks in public works projects.
• Davis-Bacon Act: Mandates prevailing wages for laborers and mechanics working on federal contracts.
• E-Verify Executive Order 13465: Requires federal contractors to use the E-Verify system to confirm the employment eligibility of workers, ensuring compliance with immigration laws.
• Health Insurance Portability and Accountability Act (HIPAA): Establishes standards to protect the privacy and security of health information, with compliance requirements for any institution handling personal health data.
• Higher Education Act: Foreign Gift and Contract Reports: Requires higher education institutions to report any gifts or contracts from foreign sources over a certain threshold to ensure transparency and prevent undue foreign influence.
• Small Business Act and Small Business Investment Act: Promotes federal contracting opportunities for small businesses, mandating that agencies set aside certain contract opportunities for small business entities.
• Trade Sanctions Reform and Export Enhancement: Regulates trade activities with certain foreign countries, ensuring compliance with U.S. sanctions laws in procurement and contracting practices.

Cooperative purchasing contracts in higher ed can help you meet this long (and growing) list of requirements. Keep in mind that this list does not include state, local, or institutional requirements.

How Cooperative Contracts Ensure Compliance in Higher Ed

Cooperative purchasing organizations perform thorough vetting of vendors through competitive solicitation. By engaging with suppliers that meet compliance standards, cooperative purchasing contracts in higher ed reduce the compliance burden.

Other ways cooperative contracts help with compliance include:

Legal Reviews

Purchasing cooperatives contracts undergo legal and compliance reviews from professionals who work closely with institutions to ensure that contract terms align with regulatory standards. This expert support provides universities with an extra layer of compliance assurance, reducing the risk of unintentional violations and helping institutions navigate complex procurement requirements.

Staying on Top of Laws and Regulations

Purchasing cooperatives monitor and adapt to evolving procurement regulations, ensuring that cooperative contracts meet the requirements set by federal and state authorities. This regulatory awareness means that universities using cooperative contracts remain in compliance—especially important for institutions managing federal grants or public funding.

Transparency

One of the significant advantages of cooperative contracts is transparency and documentation. This transparency enables you to provide auditors with the documentation they need, simplifying audits.

Reporting and Audit-Ready Resources
Cooperatives typically provide members with access to contract documentation and information, including contract usage, pricing, and terms, needed to demonstrate compliance. These resources can help you track spending, justify budget decisions, and maintain audit readiness.

How We Approach Compliance at E&I Cooperative Services

At E&I Cooperative Services, we constantly review our competitive solicitation to ensure we adhere to the highest standards in public procurement. Our member-driven solicitation complies with generally accepted procurement standards. Our practices have been reviewed and comply with the U.S. Department of Education’s General Administrative Regulations (EDGAR). Any adopted contracts developed by Lead Public Agencies (LPA) in higher education go through a formal review before adoption to ensure they follow our standards.

Cooperative purchasing contracts in higher ed aggregate purchasing power across member institutions, producing significant volume pricing. By opting in to cooperative agreements, you can also reduce your administrative burden and streamline your procurement.

View hundreds of compliant cooperative purchasing contracts at E&I Cooperative Services.