Economists determined that the Educational Services
Commission of New Jersey
substantially reduced prices and increased bandwidth by bundling
Internet demand.
PISCATAWAY, N.J., July 24,
2024 /PRNewswire/ -- For 10 years, the
Educational Services Commission of New
Jersey (ESCNJ) has saved school districts money on
technology through consortium purchasing. A newly-released report
by researchers from four major colleges shows just how much money
they saved during the first wave of ESCNJ's broadband co-op
program.
"Estimated cost savings from the program range from $2 million to $6.9
million," according to the researchers.
The report, called "Bundling Demand in K-12 Broadband
Procurement," was prepared by independent economists from
Stevens Institute of Technology,
Boston College, Boston University, and the University of Michigan. Together, they studied
procurement models that aggregate demand for technology services,
such as Internet access, resulting in quantifiable savings to
taxpayers.
When the researchers heard about the ESCNJ's broadband
consortium, they launched a study to evaluate effectiveness by
analyzing public records.
"Bundling demand can obtain similar cost savings to the schools
(and greater bandwidth-adjusted savings) compared to the E-rate
subsidy program and at no cost to taxpayers," reads the report.
The federal E-rate program charges New
Jersey telecommunications customers fees to subsidize
broadband access in schools. The revelation that the ESCNJ's
cooperative purchasing program is providing comparable financial
benefits to schools as the E-rate program without levying any taxes
or fees on New Jerseyans is one of the most consequential findings
of the report.
"We are extremely pleased that these independent researchers
have quantified the impact of our purchasing consortium," said
Nadia Romano, the ESCNJ Schools
Superintendent. "The conclusions validate what ESCNJ and its
members already know: cooperative purchasing saves taxpayers
money."
Dr. Pallavi Pal, an assistant
professor at Stevens Institute of
Technology in Hoboken and
member of the research team, said ESCNJ's program serves as an
example to other states seeking to control technology costs.
"ESCNJ's program reduced prices while improving the level of
service; it can be seen as a success," said Pal, noting the
researchers plan to dig deeper into the data to assess more recent
waves of the ongoing program.
ESCNJ's broadband purchasing consortium is known as the "New
Jersey Digital Readiness for Learning Assessment Project"
(NJDRLAP). It was launched in 2014 with the New Jersey Department
of Education to help school districts improve their broadband
access for online standardized tests.
Ten years later, it has become a popular and trusted broadband
service contract for public schools in New Jersey. More than 358 school districts
have used the NJDRLAP program so far, which is more than 60 percent
of school districts statewide.
The NJDRLAP program is also open to local government
organizations, including libraries, community colleges, public
universities, and municipal authorities. Last year, 12 new local
government organizations joined the program, bringing the total
number of non-school participants to 60 statewide.
Seven service providers currently participate in the program.
Comcast, CherryRoad, DNS, Lightpath, PenTeleData, Planet Networks,
and Xtel Communications.
ESCNJ recently conducted an extensive survey of its co-op
members and upgraded its NJDRLAP contracts following the feedback.
The new statewide broadband contracts increased average available
Internet bandwidth by 22 percent while decreasing the cost for
service by nine percent.
"School districts are struggling with price increases in all
aspects of school administration and instruction," Romano said.
"But our co-op continues to deliver tremendous value to taxpayers.
We are keeping teachers in the classroom and providing students
with leading-edge tools for learning."
The ESCNJ co-op is also helping students with special needs. All
the proceeds from the ESCNJ consortium support programs for
children and adults with disabilities and special educational
requirements.
To read the report, "Bundling Demand in K-12 Broadband
Procurement," click here.
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Jonathan Jaffe, (908) 789-0700,
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SOURCE The Educational Services Commission of New Jersey