HARD LESSON IN ECONOMICS
City schools buying marked-up goods
City schools pay more for many basic classroom goods than they would at big-box retailers — thanks to an in-house purchasing system set up by education officials.
Every school must funnel its purchases through a city Department of Education portal called the Financial Accounting Management Information System, or FAMIS.
The system’s massive inventory of more than 400,000 goods is priced according to negotiated contracts with a range of vendors including major retailers such as Staples.
The system is intended to leverage the DOE’s gigantic purchasing power to secure discounted prices for a dizzying array of goods, from baseball mitts to books.
But while most FAMIS items are cheaper than big-box and online retailers, a sampling of the system revealed a slew of basics that were priced significantly higher.
For example, the same pack of Expo dry-erase markers that DOE staffers pay $25.39 for is available on Amazon.com for $16.89.
And a 24-pack of Crayola colored pencils costs $4.12 on FAMIS and $2.77 at Target, while a 12pack of Sharpie markers that costs $12.99 at Target runs $19.67 at the DOE.
Pricier items can also be more expensive on the FAMIS site.
A Lexmark printer listed for $423.14 by the DOE can be had on Amazon for $240. Even with installation and a three-year warranty, the Amazon cost still beats the FAMIS price by more than $100.
The DOE countered that its system is generally significantly cheaper than alternate retailers and always includes delivery, warranties and installation.
On average, FAMIS items contracted with Staples are 60 percent cheaper than through the retailer directly, according to the DOE.
“Through the DOE’s purchasing system, our teachers and schools can choose from among 400,000 high-quality products at competi- tive prices,” said DOE spokesman Will Mantell.
James Madison HS Principal Jodie Cohen insisted, “It’s simple to order, there’s a huge range of products, and there’s better pricing than a brick-and-mortar store.
“We can order water at a quarter of the price we’d spend for water from a noncontracted vendor.”
Mantell said the centralized purchasing site also allows for better oversight.