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Contract Management

Purchasing Services is authorized by the Trustees of the University of Pennsylvania to negotiate and implement university-wide contract pricing agreements that will provide the University with "least total cost" for products and services required from external suppliers. These formal supplier contract pricing agreements are the result of Strategic Sourcing initiatives that have been negotiated to take advantage of the University's significant buying power. Contract suppliers are expected to provide "best-in-class" pricing to the University and offer agreed upon contract pricing to all University departments and affiliates.

When negotiating new supplier agreements, Purchase Services considers the supplier's ability to provide:

Value

  • "Value" is more than a good price. In fact, price is not the sole determining factor. Quality, service and delivery are very important in our strategic sourcing review.

Capacity/Distribution

  • The University of Pennsylvania is a decentralized buying environment with desktop delivery to the office and laboratories across campus. Suppliers must have the capacity and distribution capabilities to meet our logistics requirements. Smaller businesses should keep in mind that strategic alliances can often help accomplish this.

Electronically Capable

  • Suppliers must have the ability to conduct business electronically with web/internet based technologies. Purchasing Services actively promotes electronic procurement, including electronic invoicing.

Stability

  • Suppliers must be both solvent and able to meet long-term contractual obligations.

Diversity

  • Economic inclusion promotes development and provides maximum opportunity for local community, diversity, women, and disabled-owned businesses to participate in the procurement activities at Penn. Suppliers must be able to demonstrate support for diversity, equity and people with disabilities in the workplace.

Workplace Environment

  • Suppliers must have established policies, practices and standards in place promoting a safe and healthy environment.