Bulk sales to save school districts money on supplies and services
Georgia school districts large and small eventually could save millions of dollars partnering with the state on purchasing necessities like paper, pencils and vendor service contracts in bulk under a new deal.
An official with the state Department of Education announced Thursday that the agency is negotiating with the state Department of Administrative Services to help cash-strapped Georgia school systems save by buying in bulk and also cash in by selling surplus desks and equipment through a state clearinghouse.
Under the deal, school systems will be invited to participate in state contracts that give them bigger discount rates for their orders. Districts also would be entitled to larger rebates for their repeat business on items bought with state purchasing cards.
“We are offering volume buying power to all of the districts,” said Scott Austensen, a deputy superintendent in the state Department of Education’s finance office. “Because of volume that the state buys, we get better pricing.”
School districts who order with the state in bulk would get the same shipping and delivery services the Georgia government offices receive, even if they are a small school system of under 2,000 students.
"A partnership with the state of Georgia’s 180 school districts, adding their collective purchasing leverage to that of the state, further adds to that [spending] leverage," said Rodney Jenkins, spokesman for the administrative services department. "It also creates tremendous efficiency among the school districts, many of whom have limited resources."
Austensen said previously this purchasing option was only open to a few districts who do large volumes. The new deal under negotiation with the Department of Administrative Services extends the opportunity to all school districts to begin saving now.
Gwinnett County Schools officials said bulk purchasing with the state helped them to save more than $1 million in three years. The system uses the Bank of America state purchasing card to buy supplies for offices and classrooms.
“We are already on the state P-Card system and receive annual rebates to the tune of about $400,000 year," said Sloan Roach, spokeswoman for Gwinnett schools. "That money goes back into the budget."
Fulton County Schools also partners with the state administrative services office on purchasing cars, furniture, copiers and other office equipment.
"That is something we have been doing for years," said Allison Toller, spokeswoman for Fulton schools.
Austensen said all school districts now can begin taking advantage of bulk purchasing by contacting the administrative services department. He said districts also can get the Bank of America P-Card connected to the state's plan if they desire. A survey shows purchasing cards reduce costs per transaction by $70 on average, Jenkins said. The rebates school districts would get for using the card are still being negotiated.
"The amount of the rebate will be based on the size of their own volume," Austensen said. "But even the smallest tier would receive more than they could receive on their own.’’
The final part of the deal will allow schools to partner with the state to sell surplus items, something Fulton County Schools already does. Austensen said he is in talks with state officials about creating an information clearinghouse where school systems can list their surplus items for sale to other districts. Those items not purchased could eventually be shipped to a common warehouse and then be sold on the Internet to the public.
More information on these opportunities will be available on the state Department of Education's Web site later this month, Austensen said.
