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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.

Formal university-wide pricing agreements are awarded to suppliers that can satisfy the University's business requirements while providing value, service and support to University faculty and staff. Purchasing Services promotes "preferred contract supplier" enablement in the Penn Marketplace and promotes the value and benefits of each new contract to all University faculty and staff. This marketing effort with preferred contract and Penn Marketplace participating suppliers focuses on "contract acceptance and utilization" by exceeding customer expectations.

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 deliver 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.

University faculty and staff are obligated abide by the Purchasing Code of Ethics and to protect University proprietary data. Contract supplier pricing information is University proprietary data. As such, it must be treated accordingly or its misuse can be considered improper handling of institutional data.

When accessing the Penn Marketplace, or the University Contract Supplier List, faculty and staff:

  • May not provide proprietary data to other suppliers or anyone not affiliated with the University
  • May not use proprietary data in an unethical fashion
  • May not use proprietary data for personal gain
  • May not use proprietary data for misrepresentation or illegal trade practices

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