Pharmaceutical and Health Care Industry Experience
Industry: Healthcare Focus: Contract Negotiations
An East Coast hospital decided to outsource facilities and projects management to a firm that was managing other contracts for the group. Capstan was retained to help negotiate pricing, fees at risk and gain share/penalty provisions for labor and energy costs. We benchmarked the proposed terms and conditions against similar contracts in our database and facilitated negotiation planning sessions for the hospital's negotiating team. We developed service level agreements, key performance indicators and other contract terms, then provided guidance on transition and governance implementation.
Industry: Healthcare Focus: Sourcing Strategy
Capstan evaluated facility management sourcing strategies for a Midwest healthcare company, providing expertise in defining objectives for the process, understanding the service provider marketplace, drafting an RFP and developing bidder evaluation criteria. The entire engagement was completed in just three weeks, allowing the internal team to launch an RFP process seeking a solution that could be rolled out quickly in the U.S. and expanded globally in subsequent years.
Industry: Pharmaceuticals Focus: RFP Process Management, Contract Negotiations and Training
An internal client team of a major pharmaceutical company needed expert support for an RFP process and contract negotiations with two service providers to manage office and laboratory facilities in North America and Europe. Each contract called for a principal model relationship and a fixed price for all facilities operating costs. In contract negotiations, management relied on Capstan to provide market intelligence and practical experience to the Procurement-led internal team. During transition and due diligence, Capstan developed a contract training curriculum and materials for the client's stay back team as well as the new account team. Training sessions were held at major sites in the U.S. and Europe.
Working with our alliance partner EquaTerra, we conducted an Opportunity Assessment and analyzed potential savings from outsourcing the facility management, project management and soft services for a pharmaceutical company with a total spend of over $500 million in the U.S. and Europe. We collected data on labor, materials, energy and other costs, and benchmarked those costs against market data by location. We summarized our findings in a business case which projected that savings of 12-15% could be achieved in the near term. We then designed an RFP process that the client's Sourcing Group is now conducting. Initial provider responses have validated the savings estimates, and the internal facilities group has begun implementing some of the "low hanging fruit" recommendations in our report.
