Case Study Details

Project and Program Management

The Business Challenge:

  • A contract between an existing supplier and a government department required re-negotiation. This involved sensitive issues as the contract was subject to public scrutiny
  • The number of transactions managed under the contract had increased two fold beyond minimal contractual requirements (2 million per annum)
  • A desire to achieve a unit price reduction was set as the objective

Approach adopted by Direct Focus

Phase 1: Research of unit costs

  • DirectFocus implemented a detailed and independent evaluation of unit prices under the existing contract
  • Direct Focus developed a model that allowed the evaluation of contract costs at different indicative price points

Phase 2: Re-negotiation of contract

  • Direct Focus assisted its customer to renegotiate the terms of the contract and establish a framework for on-going service delivery under the new contract

Outcomes to Customer

  • A new price schedule was successfully negotiated with contractor with the minimum of disruption
  • New service level agreements were struck between the government department and the contractor
  • Principals of trust and confidentiality were achieved, together with significant unit cost reductions
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