How Does Higher Education Procurement Work?

For businesses trying to make a mark in the higher education market, understanding how procurement works is essential. That’s why we’re diving into the purchasing landscape of universities and colleges today—arming you with key insights and best practices to boost your outreach and marketing efforts.

Read on and learn more about higher education procurement and how education vendors can stand out in this specialized field.

What Is Higher Education Procurement?

Higher education procurement is the process of securing the goods and services colleges and universities need to deliver on their academic and operational goals. Beyond managing contracts, it plays a direct role in student success by ensuring resources are cost-effective, compliant, and mission-driven.

With the National Center for Education Statistics reporting that post-secondary institutions in the United States spend $702 billion a year, you have to imagine a hefty percentage goes toward procuring goods and services—from new technology and office supplies to food services and much more.

The 3 Ps of Procurement

In higher education, procurement is shaped by three key elements:

• People: The skilled professionals who manage procurement, such as the chief procurement officer. They make sure the right resources are acquired efficiently.
• Process: The structured procedures and workflows that govern purchasing activities from start to finish.
• Paper: The essential documentation that tracks and validates every step of the procurement process.

Beyond these core elements, procurement requires navigating strict regulations and institutional policies, managing layered stakeholder approvals, and maintaining budget accountability to ensure every purchase supports institutional goals responsibly.

Types of Procurement Activity in Higher Education

Explore some of the most common procurement activities that are unique to the higher education sector:

• Tendering: Inviting competitive bids or proposals for major purchases and projects.
• Sourcing: Identifying and selecting suppliers who meet an institution’s specific needs.
• Invoicing: Handling and processing invoices for received goods and services.
• Contract management: Negotiating, monitoring, and enforcing supplier agreements.
• Catalog management: Maintaining a dynamic database of approved suppliers and their offerings.
• Purchasing: Acquiring essential goods and services to support daily operations and academic goals.

At the same time, certain players in the sector have more purchasing power than others. And they shape procurement decisions that impact both academic excellence and operational efficiency. These school leaders often include:

• Procurement officers
• Administrators
• Faculty members
• Governing board members
• Department heads
• Financial officers
• IT directors
• Deans
• Vice presidents

A Step-by-Step Guide to the Higher Education Procurement Process

The procurement process in higher education follows a structured series of steps that emphasize transparency, accountability, and value:

1. Needs assessment and requirement definition: Institutions identify the goods or services required and outline specifications to meet academic and operational goals.
2. Tendering and solicitations: Schools issue solicitation documents, such as requests for proposals, bids, or quotes, to invite qualified suppliers to compete.
3. Supplier sourcing and evaluation: They assess vendors based on quality, cost, compliance, and alignment with institutional priorities and procurement policies.
4. Contract negotiation and awarding: Schools finalize agreements that reflect the institution’s needs and regulatory requirements.
5. Purchase order issuance: They approve and issue orders, authorizing suppliers to deliver goods or services.
6. Delivery, invoicing, and payment processing: Institutions receive, verify, and process payments for products or services according to the agreed terms.
7. Contract management and performance monitoring: School leaders oversee vendor performance to ensure contracts are fulfilled and institutional objectives are met.

Examples of Procurement in Colleges and Universities

Here are a few examples of how different types of procurement play out at colleges and universities:

1. Tendering of Campus Construction Projects

Colleges often invite competitive bids for large construction projects, like new buildings or major renovations. That way, educational institutions get the best value while staying within budget constraints and quality standards. Such projects aim to enhance the campus environment for students and staff alike.

2. Sourcing Educational Technology Solutions

Universities seek out advanced technology solutions to improve teaching and learning experiences—from interactive classroom tools to a comprehensive learning management system. This requires careful selection of vendors who can meet the institution’s specific technological needs and future-proof its educational infrastructure.

3. Purchasing Laboratory Equipment

Because science departments use specialized equipment for research and teaching, procurement practices involve evaluating different suppliers to find high-quality, reliable laboratory instruments. With solutions that meet the rigorous standards of academic research, schools ensure that students and faculty have access to the best tools available.

4. Contract Management for Campus Services

Managing contracts for services such as dining, maintenance, and security is essential for smooth campus operations. Throughout the process, schools engage in negotiating terms, monitoring performance, and ensuring compliance with service agreements. These efforts help maintain a safe and student-friendly campus environment.

How Vendors Can Enter the Higher Education Procurement Market

So, where do education solution providers fit in? Vendors support schools by offering solutions tailored to an institution’s unique needs, and knowing how, where, and when to reach the right decision-makers.

Follow these steps to get started as a new vendor in higher education:

1. Establish your business as a legal entity: Ensure your business is properly registered and authorized to operate in the relevant states. This is crucial for compliance and legitimacy.
2. Register with relevant state boards and agencies: Identify and register with the appropriate state agencies that oversee education procurement services. That way, you increase your visibility and credibility within the sector.
3. Obtain necessary certifications: Acquire certifications or solicitation documents to demonstrate your business meets industry standards. These validations may be necessary to qualify for certain procurement opportunities.
4. Register on procurement platforms: Sign up on educational procurement platforms commonly used by schools. These platforms are used by many colleges and universities to reach out to potential service providers to meet schools’ procurement needs.
5. Build relationships with decision-makers: Cultivate lasting relationships with key decision-makers and procurement professionals in the education sector. Strong connections promote long-term success and more opportunities for your business.

The Challenges for Vendors in School Procurement

After establishing your business as a vendor, it’s time to focus on marketing and outreach. However, you may encounter a few key challenges trying to connect with a school’s procurement leaders:

• Budget constraints and purchasing cycles: The University Professional and Continuing Education Association notes that higher ed must balance financial sustainability with operational efficiency in resource-constrained environments (made worse by the end of CARES federal funding). These limited budgets, along with unique school purchasing cycles, necessitate careful planning and negotiation to secure contracts.
• Complex decision-making hierarchies: Navigating multiple layers of administrative approval processes and procurement policies can prolong spending timelines. Plus, the involvement of diverse stakeholders often leads to competing priorities that slow procurement even further.
• Varying needs and high competition: The diverse requirements and preferences of institutions make engagement complex, while the crowded higher education marketplace makes it difficult for vendors to stand out.
• Compliance and regulatory requirements: Meeting strict compliance standards and navigating complex regulations make securing procurement agreements in education even more challenging.
• Building trust with procurement officials: Establishing credibility and gaining the confidence of decision-makers is critical (yet often difficult) in a sector that emphasizes transparency and accountability.

Best Practices for Effective Outreach and Engagement in Higher Education Procurement

Discover strategies to boost your engagement efforts with educational institutions—at the right time in their purchasing cycles:

1. Leverage Education Data

Make use of education data and analytics from trusted providers like Agile Education Marketing to understand the specific needs and procurement activities of relevant institutions. Gathering insights into purchasing behaviors, budget cycles, and strategic priorities helps you not only navigate complex decision-making hierarchies but also tailor your outreach strategy more effectively.

2. Customize Your Solutions and Proposals

Because of the competitive nature of the sector, avoid a one-size-fits-all approach in your solutions and engagement initiatives. Instead, customize your offerings, proposals, and marketing efforts to align with the unique requirements of each institution. Demonstrating a clear understanding of a school’s needs increases the likelihood of gaining traction and trust.

3. Demonstrate Value From the Start

Showcase the real-world impact of your solutions through compelling case studies and testimonials. Highlighting successful implementations and measurable ROI is essential to reassure decision-makers of the benefits of partnering with your company—especially amid shrinking school budgets. You might also offer pilot programs or free trials, so institutions can experience your solutions firsthand and build confidence in your team.

4. Cultivate Beneficial Partnerships

Focus on building and nurturing long-term relationships with higher education procurement leaders. To strengthen partnerships:

• Invest in personalized communication.
• Establish regular follow-ups or check-ins.
• Offer proactive support to foster trust and loyalty over time.
• Provide exclusive insights or previews of upcoming solutions.

5. Establish Thought Leadership

Position your company as a thought leader by providing valuable educational content. This not only attracts attention but also establishes your credibility and expertise within the community. Vendors can share insights and industry trends through content marketing, webinars, conferences, and social media.

Drive Procurement Success With Higher Education Data Licences

Succeeding in higher education procurement demands a deep understanding of institutional values, needs, and decision-making processes. Agile Education Marketing equips teams with essential education data, insights, and valuable services to navigate this landscape. That way, you can refine your marketing strategies to better engage with higher education institutions and build lasting relationships in the sector.

Learn more in our eBook: Be Buyer Aware, or explore our higher education data licenses to get started.