Regional higher education institutions often face unique procurement challenges that reflect their specific local needs and constraints—regardless of size. A small community college in rural America might struggle with sourcing specialized technology equipment, within its budget. A large urban university may face difficulties in managing complex facilities services efficiently.
These challenges underscore the pressing need for procurement solutions that are both flexible and tailored to regional contexts. Leveraging a
national procurement office with an education purchasing cooperative is one way to address these issues. By leveraging the power of collective buying and streamlined processes, cooperative contracts can mitigate regional challenges in higher education procurement.
Cooperative Contracts to Address Regional Needs
There is a misconception that cooperative contracts from group purchasing organizations (GPOs) are inflexible and cannot be adapted to meet local or regional needs.
That is not the case.
While contracts may be negotiated by a cooperative’s national procurement office with volume discounts and standard terms, these contracts can be adapted to fit your needs. In fact, one of the key advantages of cooperative contracts is their flexibility.
Let’s take the example of a roofing supplier. A national contract may apply a blanket volume discount for roofing services. However, how you install roofing and the materials used may be very different in
Arizona, with its relentless heat, compared to schools in
New Hampshire, which gets the second biggest snowfall in the U.S. behind only Alaska.
In practice, many institutions have successfully amended cooperative contracts to fit their unique contexts. A contract for food service might set standardized pricing for schools but be tailored to include fulfillment by
certified diverse or
sustainable suppliers to meet school initiatives.
Customizable Solutions for Diverse Needs
Cooperative contracts can also be customized to address a wide range of needs. For example, an institution might adjust a facilities management contract to incorporate region-specific requirements such as climate control systems suited for extreme temperatures or local compliance standards. California, for example, has significantly different requirements from a state like Texas when it comes to energy or emissions.
Flexibility allows institutions to adapt contracts to their particular challenges and requirements.
Support for Local Economies and Vendors
Cooperative contracts can also be tailored to integrate local vendors. This approach supports regional businesses and fosters economic development through subcontracting opportunities. A cooperative contract for construction services might include provisions for local subcontractors, ensuring that regional businesses benefit from larger contracts.
Busting Myths About Cooperative Contracts
Regardless, there are some common misconceptions that some procurement teams have about cooperative contracts, so let’s take the time to examine a few of them.
Myth: Lack of Regional Relevance
A common myth in
higher education purchasing is that cooperative contracts are too broad to accommodate regional differences. In reality, these contracts are designed with flexibility in mind. You can adapt the terms to fit your needs.
A cooperative contract for educational supplies can be structured to meet the needs of both rural and urban institutions by including options for different types of supplies and delivery methods, suited to different geographic areas. This adaptability ensures that all participating institutions benefit from the contract, regardless of their location.
Want to learn more about the relationship between procurement for higher education and local communities? Listen to this episode of our podcast Cooperatively Speaking, where we dive into local community impact.
Myth: One-Size-Fits-All Approach
Another misconception is that cooperative contracts follow a one-size-fits-all model. In reality, these contracts are highly customizable. Institutions can negotiate terms and conditions that fit their specific needs, allowing for adjustments in pricing, service levels, and other critical factors. Many cooperative contracts will have ceilings, which guarantee certain levels of volume discounts and provide additional incentives for increased spend.
The flexibility inherent in cooperative contracts means that institutions can select options that best align with their requirements.
Myth: Inflexibility and Bureaucracy
There is a belief that cooperative contracts are inflexible and bureaucratic.
Actually, cooperative contracts are designed to streamline procurement, not complicate it. Cooperative purchasing organizations in education provide expert support to assist institutions in navigating the contracts and making necessary adjustments. This reduces the time it takes to source, solicit, and negotiate—significantly reducing the administrative burden.
Get Cost Savings and Flexibility in Higher Education Purchasing
Cooperative contracts present a valuable solution to addressing the diverse and unique procurement challenges faced by regional higher education institutions. By offering cost savings, efficiency, and the ability to tailor contracts to specific needs, you can overcome regional constraints and achieve your procurement goals.
Learn about how E&I Cooperative Services can help your procurement efforts and create cost-saving, yet flexible, cooperative contracts that fit your unique needs. Contact the education procurement specialists at E&I Cooperative Services. 
