IUC price agreements are similar to State Purchasing contracts in many respects. Some agreements are for a specific item or group of items and awarded to a single bidder, while others seek competitive proposals for various manufacturer's lines with multiple awards being issued. The price agreements issued by the Inter-University Council Purchasing Group are handled very professionally, provide an open and competitive forum for all interested vendors, comply with competitive bidding principles and provide significant cost savings and increased services to member institutions. Members are not required to purchase from the price agreements, they are a tool to assist the schools in their purchasing needs. As the need occurs, each institution issues their own purchase order with price, terms and conditions of the price agreement.
Purchase orders reference the price agreement number.
Price agreements are generally issued for a one year period with an option to extend for an additional one year by mutual consent at the same price, or discount, terms and conditions. Price agreements have varied effective dates and include a mandatory 30-day grace period if needed. A negative response does not affect the award. The value of joint purchasing is well known among educational institutions. It is a common practice for institutions to pool their buying power.