Quantifying the Downstream Impact of Procurement Activity
Ikaso developed tools and processes to validate and quantify a state Central Procurement Office’s savings over time
The Challenge
Creating an evidence-based mechanism to demonstrate the Central Procurement Office’s value creation, both at the level of individual initiatives and enterprise operations.
The Outcome
We developed an ongoing program that analyzes data on key state contracts and calculates achieved savings. Our team launched tools and processes to increase vendor accountability for pricing and performance. An additional benefit is that the data generated by the program supports the recurring procurement cycle when contracts are resolicited.
Values-Centered Approach
Our team relied on the value of respect, to quantify and recognize the value created through the work of state staff. The outcome is distinguished from a number of other states that estimate savings, but have a bias towards best-case scenario assumptions. Ikaso’s approach to validate savings subjects all assumptions to the "real world" test.
Highlighted Results
Savings have been quantified and proven for 42 contracts across a broad range of expenditure areas, impacting every corner of state government and totaling millions of dollars per year in value created.
