Faculty Buys in Bulk In Effort to Cut Deficit

Think of it as bargain shopping. More technical terms such as "vender discount" and "leveraged purchasing" could also serve well.

Whatever term used, the idea is the same--Faculty of Arts and Sciences (FAS) administrators hope shopping around will pare down their $7.5 million budget deficit.

For instance, the Faculty stopped using Federal Express after completing a bulk packaging arrangement with United Parcel Services, according to Associate Dean of the Faculty for Finance Candace R. Corvey.

In another cost-cutting measure, FAS now bids out its copying through a competitive arrangement with Pitney Bowes, Corvey said.

Through committee deliberations, administrators are considering similar bulk arrangements in other areas, which would require further coordination of FAS and University spending.

"The FAS as a very large entity or the University...could exercise a lot more muscle with venders," Corvey said. "It has a lot of promise."

Corvey said that cost containment committees on the Faculty level--consisting of administrators and University Hall employees--have scrutinized the FAS spending for well over two years.

Last spring, under the direction of Vice President for Finance Robert H. Scott, the central administration set up University-wide task forces on a number of expenses.

The costs included mailing and printing, lab equipment and supplies, acquisition of food and catering services, publications, building utilities and maintenances, office supplies and travel expenses, Corvey said.

Members of FAS joined those task forces, which are comprised of representatives of many jobs from many of Harvard's schools. The committees will soon present their findings to groups ofadministrators, Corvey said.

Dean of the Faculty Jeremy R. Knowles calledthe process "the power of pieces of the FAS orpieces of the University joining together toobtain better services for lower cost."

The task forces and focus groups ofdepartmental administrators, in addition, assembleto brainstorm for cost-cutting ideas.

"The opportunities for economy are coming muchmore from individuals who see new ways of doingthings that would cost less money," Knowles said.

Knowles said he hopes those economies will bethe equivalent of 4 or 5 percent of the individualdepartmental operating budgets.

Corvey adds that while the specific amount ofsavings depends on which recommendations theadministrators implement, bulk economies will saveFAS "absolutely over $300,000, and it's probablyconsiderably more.

Dean of the Faculty Jeremy R. Knowles calledthe process "the power of pieces of the FAS orpieces of the University joining together toobtain better services for lower cost."

The task forces and focus groups ofdepartmental administrators, in addition, assembleto brainstorm for cost-cutting ideas.

"The opportunities for economy are coming muchmore from individuals who see new ways of doingthings that would cost less money," Knowles said.

Knowles said he hopes those economies will bethe equivalent of 4 or 5 percent of the individualdepartmental operating budgets.

Corvey adds that while the specific amount ofsavings depends on which recommendations theadministrators implement, bulk economies will saveFAS "absolutely over $300,000, and it's probablyconsiderably more.