Procurement & Deal Strategy

Overview

Undertaking a major procurement can be one of the biggest challenges an organization faces. Whether contracting a service provider to deliver telecom services or outsourcing key health and social services for vulnerable populations, procuring effective service delivery without waste or unnecessary risk is a high stakes endeavor.

Since our inception in 2006, Deetken has led or supported more than 35 major procurements, representing over $25 billion in total deal value. Our experience is comprehensive; we have supported suppliers and buyers in both the public and private sectors. We have project managed entire complex procurements and have worked across the full procurement lifecycle from developing procurement models/strategies, solicitation documents, contracts and evaluation guidelines to leading negotiations and end-of-term assessments.

While each deal is unique, we can draw on an expanding knowledge base of best practices to bring state-of-the-art tools and techniques to the ancient arts of deal structuring and negotiation.

Service Offerings

Procurement Strategy and Implementation

We can design procurement models to determine the optimal approach, as well as develop procurement strategies that help our clients achieve their business objectives. We can also develop the procurement approach, as well as lead project teams in the execution of the procurement, solutioning, negotiations and transition.

Economic Model and Deal Structure

Deetken leverages our background in economic and financial modelling, financial valuation and deal structuring, risk management and due diligence to build financial and economic models for procurements. We are experts in standard procurement models as well as alternative outcome-based economic models and provide training and coaching so all parties can understand, design and implement the new framework and the final contract.

Relational and Outcome-based Procurement

We are experts in relational and outcome-based procurement, novel approaches to contracting and contract management that are focused on fostering a mutually beneficial relationship between buyers and sellers. Unlike conventional procurement contracts, relational and outcome-based contracts are designed to incentivize the best possible outcome for both parties.

Business Case Development

Deetken has experience crafting business cases that evaluate the costs and benefits of various procurement approaches. This often involves a detailed analysis of service delivery and the development of new service delivery models. We have also established shadow bids to help purchasers make decisions during the procurement process.

RFX and Contract Document Development

We have drafted a wide variety of solicitation documents from RFPs, NRFPs and JSRFPs to RFQs, RFIs, CFRs, as well as contracts and contract templates. We can analyze the costs and benefits of different procurement models and work closely with in-house and external legal teams to build out a contract management process, contract governance and oversight and contract performance regimes.

Vendor Evaluations

We provide support to clients during vendor evaluations for procurements, including developing evaluation criteria and frameworks, conducting due diligence and refining solutions with proponents. We leverage our expertise in financial and economic modelling to evaluate financial models in vendor submissions. Our analysis has resulted in improved final bids, stronger incentives and greater financial viability for proponents.

Commercial Negotiations

We have served as lead negotiators or key members of the negotiation team on multiple high-stakes procurements and commercial contracts. We are experts in interest-based and outcome-based negotiations and are able to work with a diverse group of stakeholders and train others in negotiating deal structures.

Governance Structure Development

Sound and transparent governance is a hallmark of any successful procurement. Deetken has experience designing governance and oversight structures for procurement projects, including developing supporting materials such as organizational structures, functional maps, roles and responsibility matrices, and terms of reference.

End-of-Term and Mid-Term Assessments

We have led multiple mid-term and end-of-term assessments of major strategic outsourcing deals to inform contract renewals, extensions and re-procurements. We provide a detailed analysis of the contract performance and value, financial costs and services delivered, as well as rigorous analysis of the financial and economic models and recommendations for improvement.

“The team is professional, knowledgeable and highly adaptable to fast-changing prioritization. Personal interactions, a high-value price point and engagement with stakeholders rounded out an overall first-class experience.”

Senior Official, Provincial Ministry