I have previously called attention to the challenges posed by online program managers (OPMs), those companies that manage some or all aspects of online programs for colleges and universities. A new report from the Century Foundation provides the most detailed look to date at the contractual arrangements that colleges and universities have entered into with OPMs.
The Century Foundation team reviewed 79 contracts with third party providers entered into by public colleges and universities. The contracts were obtained via public records requests. The examination of these contracts allowed for a descriptive account of the landscape of relationships. Two major types of arrangements were noted: tuition-sharing arrangements in which a portion of tuition revenue is turned over to the third party in exchange for a set of services, and fee-for-services agreements in which certain services are provided for a fixed fee.
After a discussion of the persistent issues concerning the relationship between colleges and universities and OPMs, the report concludes with five cautions for colleges and universities when entering into agreements:
Don’t buy bundled services
Don’t bypass your own faculty
Don’t enter into lengthy, unbreakable contracts
Don’t “share” tuition revenue.
Don’t facilitate aggressive recruiting.
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