What are Term Price Agreements?
A term price agreement or requirements contract commits the district to buying a particular good or service from designated vendors, in exchange for a volume discount and preferred status service. Term Price Agreements are an important tool used to provide high quality goods and services, at a competitive price, with timely delivery. Purchasing can issue purchase orders quickly since the price for goods or services is negotiated (or competitively bid) prior to the requisition being entered and fixed for a set period of time.
When the school or department enters a requisition, the chosen vendor may be changed to a vendor with an existing price agreement.