Top FAQs About Higher Education National Procurement

By partnering with a national procurement organization for higher education purchasing, you get access to pre-negotiated contracts and volume pricing discounts, which streamlines procurement and saves you time and money.

What is national procurement, and how does it work? Here are some of the most frequently asked questions (FAQs).

What Is National Procurement in Higher Education Purchasing?

National procurement enables collaborative agreements for colleges and universities to buy goods and services from suppliers across the country. These agreements are facilitated by national purchasing organizations or cooperatives, which pool the collective buying power of their entire membership of institutions. By leveraging this collective power, schools benefit from competitive pricing.

How Does National Procurement Differ from Local Procurement?

In local procurement, schools negotiate directly with suppliers in their region. This can limit the ability to optimize pricing and take more time. National procurement aggregates bulk buying power in higher education purchasing.

Local purchasing may provide tailored solutions for specific needs or be part of your initiatives to support local businesses. However, many national contracts also allow for fulfillment by local or regional businesses.

What Are the Benefits of a National Higher Education Purchasing Cooperative?

Here’s what colleges and universities gain from working with a national higher education purchasing cooperative:

• Economies of Scale: Institutions can access discounts typically reserved for larger organizations.
• Administrative Efficiency: Procurement teams save time by relying on pre-negotiated agreements rather than conducting lengthy RFP processes.
• Supplier Diversity: National purchasing organizations help with supplier diversity, working with a wide range of suppliers, including small businesses and minority-owned enterprises.
• Risk Mitigation: Contracts are thoroughly vetted for compliance with regulations, reducing legal exposure.

Are Contract Terms the Same in All Cooperatives?

No, contract terms can vary across cooperatives depending on their focus, vendors, and procurement strategies. Some cooperatives are tailored to higher education and include terms that address unique institutional needs, such as compliance with federal and state regulations for educational institutions. Others may cater to broader industries, which could limit flexibility for colleges and universities.

When choosing a cooperative, it’s important to compare contract terms to ensure they align with your institution’s goals, policies, and long-term procurement strategies.

How Often Does Pricing Change?

Pricing depends on the negotiated terms of the cooperative agreement. In some cases, pricing is locked in for the duration of the contract to provide stability and protect against market fluctuations. However, some agreements include provisions for periodic adjustments based on external factors like inflation or material costs.

Lately, we’re seeing more frequent pricing resets and escalation clauses. While some contracts have annual adjustments, others are quarterly due to recent price fluctuations.

How Long Are Contracts Good For?

The duration of contracts varies but typically ranges from 1 to 5 years. Many cooperatives offer multi-year agreements with options for renewal to maintain continuity.

For higher education institutions, longer-term contracts can provide predictability and reduce administrative workloads associated with frequent renegotiations.

Are Contract Terms Negotiable?

Most contract terms in national procurement cooperatives are pre-negotiated to ensure fairness and consistency for all participating members. While these terms are generally not open to negotiation on an individual basis, some cooperatives may offer limited flexibility for institutions with unique needs, such as customized delivery schedules or payment structures.

How Are Suppliers Selected for National Procurement Contracts?

While processes vary, it’s common for suppliers to be chosen through competitive solicitation conducted by the national purchasing organization. This rigorous selection ensures:

• Competitive Pricing: Suppliers must meet strict price benchmarks.
• Quality Assurance: Products and services must adhere to high standards.
• Diverse Offerings: Organizations prioritize partnerships with vendors from diverse backgrounds, promoting inclusivity.

Colleges and universities can trust that suppliers meet both institutional needs and industry standards.

What Happens if a Contract Expires and You Are in the Middle of a Project?

Most contracts include provisions to address expiration during ongoing projects. These provisions may allow institutions to continue receiving goods or services under the existing terms until the project is completed. Alternatively, institutions might be transitioned to a new contract with similar terms to minimize disruption.

Why Should I Partner with an Education-Focused National Procurement Cooperative?

Education-focused cooperatives are uniquely positioned to meet the needs of colleges and universities. Key advantages include:

• Customized Solutions: These cooperatives understand the complexities of higher education procurement, such as compliance with Title IX, FERPA, HIPAA, and other regulations.
• Relevant Vendor Networks: Partnering with suppliers that specialize in education ensures access to high-quality products and services that serve academic institutions.
• Budget-Friendly Options: Education-focused cooperatives prioritize cost-effective solutions that align with tight academic budgets.
• Streamlined Governance: Contracts are vetted to comply with public and private institutional policies, reducing administrative burdens.

By choosing an education-focused cooperative, your college or university can address your higher education purchasing challenges more effectively.

E&I Cooperative Services is the only non-profit, member-owned national procurement cooperative exclusively focused on education. Learn more about the benefits of membership or call (800) 283-2634 to discuss ways to improve your higher education purchasing.