BEYOND THE PRICE TAG
Examining value-based purchasing in K-12
Student outcomes. Data-driven decisions. Performance-based partnerships. Collaboration at every level. These are the pillars that form the bedrock of educational success. But in a procurement landscape where price often takes center stage, school districts are finding themselves at a crossroads—balancing state mandates with the real-world need for smarter, value-based purchasing.
More than just budgets and balance sheets, today’s K-12 procurement leaders can no longer rely on the lowest bid. Forward-thinking districts must weigh vendor reputation, product quality, local sourcing and past performance. The question isn’t just, “What does it cost?” Today, the question is, “How does this investment improve student learning?” Whether it is higher test scores, stronger engagement or sharper skill-building, the shift to value-based purchasing is about prioritizing what matters most: the success of every student.
These are the factors Phillip Ellison sits down with every day. As the Executive Director of Procurement Services at Spring Independent School District, Ellison must look beyond the price factor when evaluating vendors and suppliers. Instead, he considers factors like availability, shipping, dependability, reputation, experience, past dealings and customer service. “I procure items that are either mission critical or would have a large impact on our operations. I make this distinction because there is a purpose for vendors who offer an online marketplace in order to streamline low-dollar, non-repetitive purchases, or even items that help the district with its mission, but don’t have an impact on operations.”
The shift to value-based purchasing in today’s K-12 landscape finds more and more operational leaders following Spring Independent’s lead, a district that serves 34,000 pre-kindergarten through 12th grade students in a diverse district located 20 miles north of central Houston. Instead of prioritizing the quality and effectiveness of products or services, school districts are using data-driven metrics to evaluate vendor performance and incentivize better outcomes for student learning.
“I see value-based purchasing becoming less utilized for a larger range of goods as marketplace vendors become more prevalent in the public sector arena.”
— Phillip Ellison, Executive Director, Procurement Services, Spring Independent School District
Take Texas, which modified its procurement statutes for education almost 20 years ago in order to award vendor services or suppliers based on the best value. Ellison says the move was a game-changer for education, as it allowed eight other factors to be considered in addition to price. These included the reputation of the vendor; quality of goods or services; the extent to which they meet the needs of the district; past relationship with the district; compliance with laws related to historically underutilized businesses; total long-term cost; local preference; and any other relevant factors.
Ellison says there are certain instances where the shift toward value-based purchasing can impact the quality of goods and services. For example, the use of value-based purchasing is particularly valuable when procuring for construction. “The reputation of the vendor, whether it be the engineer, architect or construction company, is vital to ensuring they have a proven track record of solid performance, not only at contract initiation, but throughout the project until closeout.”
In all situations, the key to ensuring transparency and accountability sits squarely on the shoulders of the school district. For Ellison, Spring Independent ensures transparency by requiring the vendor to provide a list of references. It also ensures the evaluation team views the past performance of a vendor with services that are equal to the services being solicited.
“I see value-based purchasing becoming less utilized for a larger range of goods as marketplace vendors become more prevalent in the public sector arena,” Ellison says. “But value-based purchasing will always have a place when it comes to services that are mission-critical, including construction and technology infrastructure.”
As the second largest public school district in Mississippi, Rankin County in the city of Brandon consists of 28 schools serving more than 18,000 students across eight communities or zones. While Director of Purchasing Samuel Lemonis says Rankin County does not select vendors or services based on value often, every relationship comes down to performance, i.e., who is performing and who is not.
“My door is open. We have a public records policy because we are a public entity. When our end users come to me about vendor performance, I tell them to document, document, document.”
— Sam Lemonis, Director of Purchasing, Rankin County School District
“When evaluating or working with vendors or suppliers, it is about those we have great relationships with,” Lemonis says. “There are vendors you trust—the ones you know will answer when you call or consistently call you to check in on how you are or what you need. We don’t do many value-based purchases, so if we needed to evaluate something, we would probably look closer at that if we were having a problem with a current vendor.”
When price isn’t the most important factor, Rankin County leans in on conducting a Request for Proposal (RFP), which helps solicit bids from potential vendors or contractors. “We don’t have a local preference policy, but it’s great to have local vendors that you know and trust and have a great working relationship with,” Lemonis says. “My door is open. We have a public records policy because we are a public entity. When our end users come to me about vendor performance, I tell them to document, document, document. If we ever award, or do not award a bid based on a vendor’s performance, we need to prove it.”
By weighing factors such as quality, reputation and impact alongside price, K-12 school districts continue to make procurement decisions that drive meaningful change. In the end, the ultimate value lies not just in the cost of a product, but in its ability to shape the future for the students it serves.
