The Job: AML Advisory recently completed a four month engagement with a major provider of health and aged care in NSW. The AML involvement was to deliver a contract renewal process for Support Services to meet the requirements of the major organizational facility located in the Sydney area that had approximately 1800 customers and 800 staff.
The Objectives: The objectives of the AML engagement were quite simply to deliver:
- Effective services to permit transition from the current Services contract by a fixed date and
- Develop a contract using a transparent and auditable process demonstrating Value For Money
The Additional Objectives: An additional outcome that was sought was to provide a methodology and process framework that would be repeatable across other sites within the organization, reducing the overall cost of tendering and time, without compromising services quality AND, wherever possible achieve increased savings.
The Outcome: The results are in:
- The Scope of Services, RFT Development and approvals were completed on time and on budget, delivering a level of methodology and accuracy not seen before in the organization
- AML led the evaluation, completed documentation for delivery to the organizational board for endorsement and financial commitment. The RFT process achieved a market response delivering over 8% savings against the forecasted budget
- AML let the contract negotiations with the Preferred Tenderer realizing an additional 2% in savings
- AML's involvement from end-to-end met schedule, budget and realized overall savings of approximately $100,000 per year or 10.5% reduction against pre-tender arrangements with an increased service level