VENDOR MANAGEMENT & RELATIONSHIP RECOVERY

SBA’s vendor management practice is comprised of three distinct areas: contract negotiations, vendor monitoring and management, and vendor recovery.

Contract Negotiations

Because the principals at SBA have set up and successfully run large outsourcing and consulting operations, we are ideally positioned to advise clients regarding contract terms and provisions, and pricing.  In short, we know the pitfalls plan sponsors need to be aware of and to avoid.  We analyze the vendor's proposed contract, flag any items that require modification, and work with the vendor to negotiate any required changes. Our goal is to ensure the contract is in the best interest of the plan sponsor, that it includes needed safeguards and service level agreements, and it protects your investment in the vendor.

Vendor Monitoring and Management

Vigilance regarding the services provided by a vendor as well as the reasonableness of any change orders and other out-of-scope fees are critical parts of a plan sponsor’s fiduciary duty.  In many cases, having an independent third party reviewing change orders will help keep a vendor on their toes.  Because of our experience with setting up and running these operations, we are in the unique position to advise plan sponsors as to whether proposed change orders are reasonable.  If change order fees are not reasonable, we are able to develop a ground-up analysis showing where the fees should fall.  In many cases, we are able to negotiate the fees to a reasonable and acceptable level, if not away entirely.  Over the course of our practice, we have saved plan sponsors untold dollars in unnecessary change order fees.

Vendor Recovery

In situations where the performance of a vendor has fallen to levels that are not acceptable, vendor recovery may be an appropriate option to pursue.  SBA’s process for vendor recovery includes the following steps:

  • Review the vendor’s contract for scope of services, service level agreement parameters, pricing and other details
  • Meet with client’s subject matter experts to gather facts and brainstorm about the vendor issues
  • Analyze feedback from the meeting and develop a detailed description of each issue
  • Meet with vendor resources to present the issues and gather their perspective
  • Develop an extensive report regarding processing failures and root causes
  • Draft a recovery plan for both the client and vendor, including a timetable for recovery, specific steps which should be taken in the process and who is responsible for the steps in the plan
  • Actively address each issue in the recovery plan and monitor progress
  • Modify or create an on-going process to ensure service level agreements are met as well as ways to address new issues as they arise
  • Establish periodic meeting between the client and vendor to ensure process is being followed and to facilitate changes to the on-going plan

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VENDOR MANAGEMENT & RELATIONSHIP RECOVERY

SBA’s vendor management practice is comprised of three distinct areas: contract negotiations, vendor monitoring and management, and vendor recovery.

Contract Negotiations

Because the principals at SBA have set up and successfully run large outsourcing and consulting operations, we are ideally positioned to advise clients regarding contract terms and provisions, and pricing.  In short, we know the pitfalls plan sponsors need to be aware of and to avoid.  We analyze the vendor's proposed contract, flag any items that require modification, and work with the vendor to negotiate any required changes. Our goal is to ensure the contract is in the best interest of the plan sponsor, that it includes needed safeguards and service level agreements, and it protects your investment in the vendor.

Vendor Monitoring and Management

SBA's principals have successfully managed large DB, DC and health & welfare outsourcing operations.  We understand the pitfalls and the areas that must be monitored and controlled. We perform a thorough analysis, pinpoint issues, develop and implement action plans, and work with your provider to keep your outsourced operation on track.

In addition, we are in the unique position to advise plan sponsors as to whether proposed vendor change orders are reasonable.  If change order fees are not reasonable, we are able to develop an analysis showing the range where the fees should fall.  In many cases, we are able to negotiate the fees to a reasonable and acceptable level, if not away entirely.  Over the course of our practice, we have saved plan sponsors untold dollars in unnecessary change order fees.

Vendor Recovery

In situations where the performance of a vendor has fallen to levels that are not acceptable, vendor recovery may be an appropriate option to pursue.  SBA’s process for vendor recovery includes the following steps:

  • Review the vendor’s contract for scope of services, service level agreement parameters, pricing and other details
  • Meet with client’s subject matter experts to gather facts and brainstorm about the vendor issues
  • Analyze feedback from the meeting and develop a detailed description of each issue
  • Meet with vendor resources to present the issues and gather their perspective
  • Develop an extensive report regarding processing failures and root causes
  • Draft a recovery plan for both the client and vendor, including a timetable for recovery, specific steps which should be taken in the process and who is responsible for the steps in the plan
  • Actively address each issue in the recovery plan and monitor progress
  • Modify or create an on-going process to ensure service level agreements are met as well as ways to address new issues as they arise
  • Establish periodic meeting between the client and vendor to ensure process is being followed and to facilitate changes to the on-going plan