Federal research funding is facing significant disruption, with proposed policy changes from the current administration threatening to reduce or eliminate support for vital programs.
One major move is capping indirect costs from the National Institutes of Health (NIH) at 15%—a move that represents nearly a 50% decrease from the current average for many research institutions. At the same time, 780 NIH grants have been canceled across 220 universities and organizations.
University leaders are more than a little concerned that these changes will mean devastating cuts in research activities, workforce reductions, and a major slowdown in scientific progress, particularly in critical areas like medical and health research.
To maintain research momentum in this challenging environment, institutions must find innovative, cost-saving strategies.
Beyond the immediate threat to federal funding, higher education institutions are navigating a complex web of financial pressures. The demographic cliff is shrinking the college-age population, further tightening budgets. Rising operational costs and additional federal funding uncertainties only intensify the challenge.
Against this backdrop, procurement and finance teams are trying to figure out how to fund research activities while controlling costs and maintaining compliance.
It’s a delicate balance.
These pressures are fueling a shift in how institutions approach procurement and is why higher ed research leaders are increasingly turning to cooperative buying models.
Traditional procurement processes are not always designed for speed or agility. Long procurement cycles, fragmented supplier relationships, and a heavy compliance burden often delay access to critical research resources. For research administrators, this can mean missing important grant deadlines or delaying experimentation due to procurement bottlenecks.
Cooperative contracts provide a way forward.
These competitively solicited agreements streamline procurement by offering pre-negotiated pricing, terms, and compliance frameworks. This results in faster turnaround times and lower administrative overhead, creating fewer obstacles between researchers and the tools they need to innovate.
Time is often a critical factor in research success. Whether acquiring specialized lab equipment, accessing cloud-based data platforms, or contracting with niche consulting firms, delays in procurement can stall momentum.
Because suppliers are pre-vetted and contract terms are already compliant with education-sector regulations, procurement teams can move quickly and confidently with cooperative agreements while helping their institutions save money. By leveraging the aggregated buying power of multiple colleges and universities, institutions can see significant savings they likely could not achieve on their own, no matter their size or scale.
Cooperative buying in education also aligns with many institutions’ goals for sustainability, supplier diversity, and inclusive sourcing.
Strategic supplier relationships are key to long-term innovation. Cooperative contracts help institutions form deeper relationships with suppliers that understand the education and research landscape. These partnerships can produce value-added services, technical expertise, and customization that support research priorities.
Procurement teams play a critical role here.
With cooperative contracts, procurement and finance teams can ensure vendors align with institutional goals, manage performance expectations, and help researchers stay ahead of emerging needs in science and technology.
While cooperative contracts have standardized terms, many also allow flexibility for customization. In most cases, blanket discounts apply, so you can purchase whatever you need under contract. There may also be additional pricing discounts for different tiers of purchasing volume to further lower costs.
Innovation in higher ed research depends on institutions being able to move quickly, spend wisely, and collaborate effectively. Cooperative buying in education removes the friction of traditional procurement, reduces costs, and unlocks access to specialized scientific equipment, lab supplies and services.
Procurement teams can pave the way for researchers to stay focused on discovery and lower costs to keep programs moving forward.
E&I Cooperative Services is the only member-owned nonprofit sourcing cooperative focused solely on education. With a deep understanding of the needs and challenges of higher ed, E&I can help ensure you maximize every dollar you have.
Some cooperative agreements contain additional incentives or rebates for purchasing, along with significant volume discounts. E&I also provides patronage refunds to members based on contract utilization. These rebates can amount to millions of dollars to member institutions, turning spending into revenue generation to meet the current funding crisis.
Learn how your institution can reduce costs and accelerate procurement with E&I’s research-ready cooperative contracts. There is no cost to become a member of E&I and no minimum purchasing requirement. Contact your institution’s dedicated E&I Cooperative Services representative to learn more.
