American Association of Community Colleges
Cooperative Purchasing Agreement for Personal Protective Equipment (PPE)
Due to current global demand amid COVID-19 concerns, most Personal Protective Equipment (PPE) factories now require between 50% and 100% of the purchase price to be paid upfront to begin manufacturing this essential equipment.
The American Association of Community Colleges (AACC) has brokered an agreement for the nation’s community colleges that will allow your institution to secure much-needed PPE through a binding purchase order (POI), which will initiate the full manufacturing, inspection and delivery of your order with Cash On Delivery (COD) payment terms.
This program provides the benefits of high-quality PPE, secured at competitive prices, with little to no risk to the institution. The steps are as follow:
- June 19, 2020 – AACC will open the process for interested colleges to submit an order for PPE and quantity that the institution needs. The more colleges that participate in the cooperative purchase program, and the higher the quantities of each product ordered, the lower the purchase price of that product will be for the entire group.
- July 8, 2020 – PPE Order Deadline: Once AACC receives all PPE orders, the total price will be calculated and communicated to the institution.
- July 14, 2020 – Institution will confirm and approve the quote, sign the purchase contract, and provide a Letter of Credit for the full purchase price.
- July 17, 2020 – Documentation will be confirmed and order will be placed.
- Payment for the order will be facilitated through a MT700 Letter of Credit (LOC) facility between your institution and the supplier’s bank. This facility provides protection for both parties and ensures that the payment for your order will not be transferred until the product is delivered, inspected and signed off on.
- Once your order is manufactured, the product will be inspected at the factory, then shipped to the point of departure, at which time a 2nd independent certification agency, SGS (www.sgs.com), will inspect the order and deliver a report confirming the product certifications, quality and quantity.
- Once the SGS certification is confirmed and signed off on, the product will be transferred to the exporter who will act as the shipper, insurer and customs agent.
- When the product arrives in the US the shipment will be moved through customs and the product will be shipped to your institution.
- Once the product is delivered, inspected and certified, the Letter of Credit trigger conditions will be met, the banking institutions will be notified and the funds transfer will be initiated.
- The LOC will not fund until the product is delivered and inspected, thereby mitigating risks related to manufacturing, inspections, customs and transport.
This cooperative purchase program works best if AACC can consolidate orders into sizeable blocks that will maximize our pricing power through economies of scale.
Completion of the PPE Form is not binding. The agreement will not become binding until the institution provides approval to place the order.