Are you leaving millions on the table?
SOVRA Fee Optimization helps unlock the full potential of statewide administrative fee collection on contracts
Maximize Michigan's Contract Revenue
Every day, the State of Michigan could miss out on substantial revenue hidden in the contracts you already have. These uncollected fees could enhance public services, improve infrastructure, or fund critical programs.
Yet, there is a way to capture this revenue without any upfront costs! The SOVRA Fee Optimization Program ensures you’re not missing out on this vital revenue.
Expected spend on Statewide contracts for similar sized states
Up to
of local spend could be going untracked ¹
More than Just Dollars Owed
This program isn’t just about collecting fees; it is also about maximizing the use of your statewide contracts. In Michigan, up to 51%¹ of procurement spending comes from local governments. We will work to market and amend these contracts to drive greater utilization from local governments, creating more value and revenue for the Michigan government. By making these contracts more accessible and better promoted to local governments, we help you optimize every dollar spent.
SOVRA’s Fee Optimization Program comprehensively reviewed the State’s existing processes. Despite their belief that they had 95% compliance, our data-driven methods identified gaps in their fee collection system. We tracked supplier activity, flagged non-compliance and proactively engaged with suppliers to ensure they were fulfilling their contractual obligations.
This resulted in a 57% increase in revenue from supplier fees in just a few quarters. The state was able to significantly increase its budget without additional effort simply by leveraging SOVRA’s expertise.
The state had an existing internal fee program that applied only to departmental spending. They wanted to expand this program to include external fees from suppliers, particularly to capture revenue from local governments, which were a major user of statewide contracts. However, they faced resistance from suppliers and needed a strategy to ensure broad compliance.
SOVRA worked closely with the state to pass the necessary regulations to implement the new fee structure. The program’s expansion led to a dramatic increase in local government participation, with local spend on statewide contracts growing from $6–8 million per quarter to over $100 million. This surge in local government engagement, combined with the consistent application of the new fee structure, significantly boosted the state’s revenue.
How it works
Our program is designed to align with your existing procurement processes. We step in where your resources are stretched thin, ensuring that the fees Michigan is owed get collected. Our skilled professionals, who understand public procurement inside and out, with proprietary technology, work on your behalf to maximize your revenue. We handle everything from start to finish, with no risk to your budget.
Supplier
Success
Marketplace
Local Government Enablement
Contract Marketing
Sales Reporting & Fee Collection
Supplier Compliance
Program Optimization
Why leave money on the table?
Let us show you how much revenue you could capture. Fill out the form, and we’ll provide insights detailing the potential impact of our program on your state’s budget. We are excited by the opportunity to help you drive revenue.
Start turning missed opportunities into real dollars today!
Footnotes
- Assumptions based on industry data and averages from SOVRA customers.
- Based on census data
