What does it mean to be an Alliance “Preferred Supplier”?
When the Alliance competitively procures and then negotiates a master supply contract on behalf of Alliance members and affiliates, the awarded supplier is given the unique distinction of being a “Preferred Supplier.” This distinction reflects that the Alliance master supply contract is recognized by the Alliance as a favorable purchasing option available to all Alliance Members (UT institutions) and Affiliates (non-UT institutions). The designation does not obligate any Alliance Member or Affiliate to purchase from the Preferred Supplier, nor does it grant exclusivity or guarantee any level of purchase volume. Each Member of Affiliate institution retains sole discretion over its sourcing decisions, including whether to purchase under an Alliance contract, or another contract available to them.
Once a master supply contract is signed by the Preferred Supplier and UT System (acting through the Alliance), institutions sign a short Institutional Participation Agreement (IPA). The IPA is the means by which institutions “opt into” the master supply contract and become entitled to its benefits, such as discounted pricing, rebates and incentives. The IPA also commits the institutions to comply with all obligations in the master supply contract applicable to them. These obligations include various commitments to promote the use of the Preferred Supplier’s goods and services by the institution’s internal customers.
Benefits of Becoming a Preferred Supplier
- The Alliance works closely with the Preferred Supplier to grow existing business and develop new areas of opportunity that fully maximize the Preferred Supplier's product or service offering.
- Preferred Supplier status is highlighted within e-procurement technology platforms.
- The Alliance works with the Preferred Supplier to develop unique event promoting the contract.
- The Preferred Supplier business relationship and value is identified to end users.
- The Preferred Supplier is best positioned to benefit from campus growth.
Becoming a Preferred Supplier
In order to become a preferred supplier a company must first participate and successfully compete in an Alliance strategic sourcing event. The Alliance invites suppliers to provide their most competitive offering for their products and services to our Members and Affiliates. For more information see the Bid Opportunities menu tab.
