2026 Annual Report - Drive Savings & Value

Drive Value & Savings

Procurement drives significant savings and value by optimizing sourcing strategies, fostering innovation, and leveraging collective buying power. We support the University’s mission while delivering savings and efficiencies that benefit UC and create lasting impact statewide and beyond.

Campus Contributions To Driving Value & Savings

UC Berkeley
UC Irvine
UC Merced
UC Riverside
UC San Diego
UCSF
UC Santa Barbara
UC Santa Cruz
Systemwide

1 Billion in certified spend. 2.6 million invoices. 940,000 POs. 185,000 suppliers total

UC Procurement

UC Procurement Surpasses Its FY26 Benefit Target

UC Procurement surpassed its $410 million FY26 benefit target, delivering $445.4 million in value, equivalent to 4.1% of $10.85 billion in addressable spend. Teams combined category management, supplier engagement, strategic sourcing, and data-informed target setting to capture benefits despite tariff-related cost pressures and budget uncertainty. Earlier stakeholder engagement and stronger spend visibility helped align opportunities with campus needs. The result reflects coordinated work across UC and procurement's contribution to financial stewardship and mission support.

How did we get there? By leaning into data, engaging suppliers early, and working closely with campus partners to spot opportunities. From strategic sourcing and contract improvements to smarter demand management, the team found ways to capture value without compromising service or long-term goals.

Learn more about our FY26 results

UC Berkeley

Duty-Free Guide for High-Value Research Equipment

UC Berkeley published a structured pathway for departments seeking duty-free treatment on high-value scientific and research equipment through federal Form ITA-338P. The process may apply when imported equipment supports educational or scientific work and no equivalent U.S.-manufactured instrument can meet the intended use. Procurement guidance also sets realistic expectations: the application is complex, departments may need to pay duties when equipment enters the country, and refunds depend on later federal approval. The resource helps researchers evaluate tariff-mitigation opportunities while planning for documentation, timing, and cash flow.

UC Irvine

Expanding Laboratory Equipment Maintenance Options

UC Irvine promoted the new UC-wide Remi Group agreement as an option for laboratory equipment repair and preventive maintenance. The contract provides access to a service network covering more than 22,000 equipment types, 24/7 dispatch support, online service-history tracking, a 25% discount from OEM list prices, and a 2% patronage rebate under UC-aligned terms. These features will reduce maintenance costs, simplify service management, and support equipment uptime.

UC Irvine

UCI Modernizes Payments and Increases Revenue

UC Irvine launched Payment Plus in July 2025 to modernize supplier payments and create a new source of incentive revenue. Procurement Services invested approximately 450 hours in project management, testing, technical coordination, supplier strategy, communications, and cross-functional collaboration to bring the program live. Participating suppliers receive faster, secure virtual-card payments, while UCI reduces administrative costs and payment risk and earns incentive revenue on eligible transactions. Ongoing spend analysis and supplier engagement are expanding participation and extending the program's value.

UC Merced

Leveraging Digital Procurement Solutions to Deliver Value

UC Merced continued to expand the value of BobcatBuy+ powered by Labviva, improving supplier access, pricing transparency, and purchasing decision support for campus users. During FY26, the platform generated approximately $170,000 in documented cost avoidance, including $77,000 linked to tools that identify lower-cost equivalent products across suppliers. Procurement also collaborated with Labviva to enhance search, introduce AI-enabled quote processing, and improve supplier visibility. Marketplace participation has grown by more than 40 suppliers over two years – increasing competition, supporting supplier diversity, and helping consolidate tail spend.

UC Merced

UC Merced Earns Best in Class Recognition for P-Card Program

UC Merced received a Best in Class award at the UC/U.S. Bank Annual P-Card Conference in October 2025, recognizing the campus's work to strengthen card adoption and payment efficiency. Program improvements included promoting Amazon Business, shifting utility bills and approved contracted services to P-Card, and prioritizing P-Card over one-time purchase orders for eligible non-catalog purchases. The quarterly report cites 20.45% growth in P-Card usage in 2024, demonstrating the program's momentum as UC Merced expands card-based purchasing and reduces reliance on more labor-intensive payment pathways.

Four people at a conference table. Two are shaking hands.

UC Riverside

Optimizing UCR Mobile Service Pricing

UC Riverside Procurement worked with AT&T to optimize campus mobile-service pricing, reducing the monthly rate for active and new smartphone, tablet, and mobile-hotspot lines to $30 from an average of ~$45 - a 33% reduction. A limited-time offer also made eligible iPhone 17 devices available for $0.99, while existing smartphone lines received a $100 credit over 36 months, lowering the effective monthly service cost to about $27.21 during that period. The initiative combines account-level negotiation, device value, and buyback options to reduce recurring costs across campus.

UC San Diego

Building the Future of Ocean Discovery

UC San Diego's Integrated Procure-to-Pay Solutions facilitated the competitive procurement of design and construction services for a 125-foot hybrid-electric Coastal Class Research Vessel (CCRV). An international request for proposals drew bids from six shipyards across North America, South America, and Europe, followed by a best-value evaluation by nine experts in research, operations, maritime construction, and naval vessel procurement. The selected $35.52 million bid represented approximately $3.34 million in calculated savings. Under construction at Astilleros Asenav in Chile and expected in late 2028, the low-emission, low-noise vessel will support ocean research, accommodate up to 15 scientists on extended missions, and carry 40 students on one-day deployments.

UC San Diego

Campus Inquiry Leads to Systemwide Impact in Freight Savings

After a UC San Diego department raised concerns about rising Illumina shipping charges, Procurement and Logistics analyzed historical orders and identified a major opportunity to reduce inbound freight costs. In a sample of 231 orders, Illumina's standard approach produced $105,564 in charges, while UC's Vantage Point Logistics program would have reduced the cost to $6,930—a 93% reduction and $98,634 in potential savings. UC San Diego updated purchase order instructions to route eligible orders through the lower-cost program and partnered with the UC Systemwide Procurement Life Sciences Category Manager to extend the solution systemwide.

UC San Diego

Powering Campus Reliability Through Strategic Partnership

UC San Diego Procurement and the Central Utility Plant competitively sourced an eight-year steam-turbine maintenance agreement with Turbine Repair Services LLC. The contract delivers $113,485.75 in annual savings—$907,885.99 over the term—with fixed pricing aligned to the planned overhaul cycle. It also provides a piggybacking option for other UC campuses, extending the benefits of the agreement across the UC system. By aligning strategic sourcing with the CUP's long-term infrastructure strategy, the partnership improved cost predictability and strengthened the reliability of critical campus utility systems.

UCSF

UCSF Payment Plus Recognized With “Best in Class” Award

UCSF's Disbursements team earned the UC system's 2025 'Best in Class' Award for Payment Plus, its second consecutive win and third recognition since 2020. The program uses virtual credit cards to accelerate supplier payments, strengthen security, and generate rebate returns. The award recognizes UCSF's continued leadership among UC campuses and federal national laboratories, along with the collaboration between Disbursements and Supplier Registration that supports strong program performance.

UCSF

$39M

Benefit

185,000

Reqs

$960M

Spend

355

Iniatives

UCSF Strategic Procurement Drives $39 Million in Savings

UCSF Strategic Procurement delivered more than $39 million in validated FY26 savings through collaborative initiatives. These 355 initiatives span cybersecurity, telecommunications, public safety technology, research, and other operations – exceeding its $36.8 million target. Approximately 185,000 requisitions totaling $960 million were processed. Procurement directly reviewed about 8,600 requisitions – only 5% of volume but nearly 80% of spend (approximately $763 million), concentrating on complex, high-value transactions. While most routine purchases are completed through streamlined, automated processes, Strategic Procurement focuses its expertise on a small number of complex, high-value transactions to create the greatest fiscal impact and protect UCSF from unnecessary risk. These results demonstrate that procurement is about much more than processing purchase orders: it's about delivering financial value, reducing institutional risk, and helping departments succeed.

UCSF

SCM Logistics Expands Outbound Mail Service to Include BCHO

SCM Logistics integrated UCSF Benioff Children's Hospital Oakland (BCHO) into UCSF's institutional outbound mail network, consolidating service through existing infrastructure. The Logistics team has saved an estimated $34,000 so far by eliminating separate meters, utilizing existing mail services infrastructure and consolidating staffing.

UCSF

UCSF Mobile Phone Strategy Dials Up Value

UCSF's IT Category Management Team used a data-driven portfolio review to improve mobile-service cost, visibility, and governance across Campus and Health. The analysis identified approximately 1,400 unused phone lines, which were disconnected, and supported carrier negotiations that secured a 20% discount on AT&T rates. Together, the work is reducing costs by more than $1.4 million annually while improving insight into mobile usage. The initiative shows how category analysis, cross-functional collaboration, and centralized account management can convert a decentralized service environment into measurable recurring savings and stronger operational control.

Certificate of Achievement for UCSB Card Program

UC Santa Barbara

UCSB Named #1 Overall Best in Class for UC Card Programs

UC Santa Barbara was recognized by UC Procurement and U.S. Bank as the No. 1 Overall Best in Class location for UC card programs among UC campuses and national laboratories. UCSB was also identified as the only location to achieve growth across every product category. The recognition reflects a cross-functional approach to payment optimization, card adoption, process efficiency, and customer service. The award provides third-party validation of UCSB efforts to expand efficient electronic payment channels while supporting campus operations.

UC Santa Cruz

UCSC Payment Plus Expansion Delivers Outsized Returns

With a $26,520 U.S. Bank grant supporting a student intern, UC Santa Cruz expanded Payment Plus through data-driven supplier targeting and automated analysis. The team reviewed roughly 2,048 potential suppliers, narrowed the list to 244 high-value candidates, and enrolled 61 suppliers in nine months. Those enrollments generated $1.84 million in Payment Plus spend and approximately $35,000 in rebate revenue, already exceeding the initial project investment. UCSC also built a pipeline of 183 additional suppliers, creating a scalable model for continued rebate growth with limited staff workload.

SWP - Travel

Delivering Value Through the Managed Travel Program

The Central Travel Office (CTO) continues to maximize the University's purchasing power by delivering strong value through strategic supplier partnerships and systemwide contracting. During FY26, the Central Travel Office supported more than 93,500 airline tickets representing $45 million in managed air spend. UC travelers paid an average of $460 per ticket across domestic and international travel, compared with an industry benchmark of $606. Strategic supplier agreements, unused-ticket management, and other traveler benefits helped UC stretch travel dollars while delivering a consistent systemwide travel experience.

SWP - Info., Analytics & Systems

Protecting Budgets Through Rigorous Price File Review

Rigorous systemwide review of 2026 supplier price files protected UC Berkeley from a major cost increase before it reached campus buyers. Procurement reviewed 27 price files from 21 suppliers across UC covering more than 2.6 million SKUs and held average implemented increases to 3.7%. Nine noncompliant updates were declined, six corrected files were accepted after negotiation, and one supplier's 75.5% average increase was stopped. Most directly for Berkeley, reviewers prevented a 20%-plus increase from a major laboratory supplier that could have added nearly $400,000 in annual cost. The result demonstrates proactive contract administration as a measurable budget-control strategy.

Strategic Priorities

UC Procurement is committed to the five strategic priorities below. Through dedication to these priorities, we strive to empower our campuses, foster innovation, and shape a more sustainable and equitable future. This Annual Report is organized by these five priorities – click any card to delve into our progress in these areas:

Drive Value & Savings