A Supplier Partnering Agreement at the University

A Supplier Partnering
Agreement at the University
of Las Vegas 1
Mr. Bob Ashby, newly hired as the purchasing director at the University of Las Vegas
(ULV), was offered a partnering agreement by the Nevada Office Supply Company
(NOSC) whereby ULV, all other state institutions of higher education, and all state
K-12 School Districts could purchase office supplies at discounted pricing, provided
they were named a sole provider of office supplies. Mr. Ashby was given this offer without
benefit of competitive bidding and was given only 15 days to accept the offer.
General Background Information
Besides serving the various educational institutions in the State of Nevada for over
15 years from its warehouse in Southern California, NOSC has also been the major supplier
of office supplies to most of the major casinos in Las Vegas and Reno during that
same period. It has recently opened a warehouse in the Las Vegas Valley due to its continual
growth and increased sales. It has a good reputation for its products, pricing and
service. With the continued growth of the gaming business in Las Vegas and Reno, the
continued growth of both the higher education and K-12 educational system throughout
Nevada, and the explosive population growth of the Las Vegas valley, it expects its
growth and sales to increase by approximately 20% in the next twelve months.
ULV’s Source Selection Policy
NOSC is one of eight suppliers of general office supplies used by ULV. It currently
provides approximately 50% of ULV’s annual U.S. $300,000 office supply needs and has
done so since NOSC became a force in the Las Vegas office supply market 15 years, ago.
Mr. Ashby’s queries to his staff and user departments have found a consensus that while
other suppliers might from time to time provide better pricing, quality and service, overall
NOSC has provided the best combination of these requirements. Further, he has found
that when ULV has issued bid requests for office supplies,...