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Contracting Strategy

The Purchasing Department is the central purchasing authority for Princeton University. We are responsible for managing the procurement process on a University-wide level, including orders, contracts and legal agreements, to support Princeton’s educational, research and community support initiatives. We are authorized to negotiate and implement University-wide vendor contract pricing agreements in an effort to provide the University with contract cost savings as well as efficient procurement processes for all of our required products and services.

Purchasing's vendor contracts have been negotiated, structured and leveraged to take advantage of the University’s significant buying power by offering the best possible pricing to all University departments. The Purchasing Department and our contract vendors work together to achieve total customer satisfaction.

The primary objectives of our vendor contracting strategy is to:

• Identify the optimal sources of supply.
• Secure the best prices.
• Develop process efficiencies.
• Deliver high quality products and services.
• Ensure that small/minority/woman-owned and disadvantaged businesses are included.
• Make these agreements available to all University departments.
• Provide timely and accurate customer service.

Benefits for Departments

Contracts resulting from our vendor contracting strategy and special projects have been developed through strategic planning and negotiating that has been conducted by the Purchasing Department to establish the agreements for these specific products and services. Departments are then able to purchase these products and services more quickly since the competitive bidding process has already been completed and both parties have already mutually agreed upon the ordering process, contract language, and delivery arrangements in advance. Competitive bids and other justification are therefore not required for purchases from these contract vendors.

Benefits for the University

Contracts resulting from our vendor contracting strategy achieve significant cost savings for the University. These contracts also allow the University to streamline the procurement and disbursement process by reducing the overall number of vendors we do business with. Increasing the volume of business with fewer vendors results in savings based on economies of scale for both parties. This strategy allows the University to enter into partnerships with these vendors to invest in the necessary process changes and new technologies to further streamline the procurement process. Our contracts also ensure compliance with both State and Federal acquisition regulations.

Do Departments Have to Use These University-wide Contracts?

Vendor contract pricing is typically based on the University’s overall anticipated volume of purchasing activity during the contract period. In order to assure the University community of the best possible price for products and services, and to fulfill the University’s obligation to consolidate all of its requirements with authorized contract vendors, all University departments are encouraged to order required products or services from the vendors who are authorized contract vendors for the University.

How are New Contracts Announced?

After a contract has been awarded to a vendor, the Purchasing Department will add the contract to the valid contract vendor list. This list is updated weekly for your reference. In addition, periodic announcements will be distributed via the Liaison Program to inform departments of any new contract vendors. Similarly, any vendor name changes are listed on the vendor name change list for your reference.

How do Departments Order from Contracts?

When entering a requisition, make sure that you select the products you are interested in from the Item Master in PeopleSoft. The Item Master is a comprehensive catalog of available items from all contract vendors. Specific catalogs and kits can be established for departments if necessary.

What do Departments do if They Identify a Potential New Vendor Contract?

If a department identifies a potential vendor or need for specific goods or services, or if they purchase goods or services repeatedly from the same vendor, simply contact the Purchasing Department. The Purchasing Department will analyze this information to determine if it is the best interest of the University to establish a contract pricing agreement with this vendor.

How do Vendors do Business with Princeton?

Interested suppliers and/or vendors can bid on contracts that are available by utilizing our Web-based contract bidding system. This system has been designed and is currently in the production and testing stage. We plan to utilize the Web to handle the competitive bidding process electronically, thereby becoming more efficient for our internal and external customers. More information will be made available as the system evolves and complete details will be distributed once the system becomes fully operational.