
Uncovering Hidden Revenue with Enhanced Supplier Compliance
December 2, 2024A long-time state client with extensive experience in managing and administering a fee program partnered with SOVRA to unlock additional revenue opportunities and enhance program effectiveness. Through our collaboration, the client expanded their reach by implementing SOVRA’s best practices and insights, resulting in significantly improved compliance levels and overall program impact.
Challenge
The state had an existing internal fee program, which applied only to departmental spending. They wanted to expand this program to include reporting from suppliers, particularly to better understand data pertaining to local government contract usage. The biggest challenge was a lack of awareness regarding who was utilizing their contracts and to what volume. However, with the implementation of a successful reporting and fee remittance program, it was confirmed that local government spend on statewide contracts is consistently around 50% of all spending. This insight has been a significant takeaway and win from our reporting program thus far.
Their goal has always been to cover costs and optimize procurement operations, not merely to generate more revenue. Additionally, the state envisions leveraging statewide contracts to benefit all state entities and streamline procurement processes, ultimately reducing the burden and providing value to all state taxpayers. With improved visibility into contract utilization, they can now manage a portfolio that may be underutilized at the state level but heavily utilized locally—insight that was previously unavailable—thereby bringing clear value to the procurement strategy.
Solution
SOVRA’s Fee Optimization Program started with a comprehensive review of their existing processes. Our team used data-driven methods to identify gaps in their fee collection system and introduced consistent, transparent, and objective compliance enforcement. Through collaborative workshops and data analysis, we engaged key stakeholders in understanding the shortcomings and potential areas for improvement.
We recommended enhanced risk mitigation strategies, ensuring that the state could better safeguard against potential service disruptions. Our solution is powered by the strength of our team’s actuarial expertise, which enables us to create a data-driven approach with a proven track record of success. This specialized knowledge is uncommon in the industry, allowing us to deliver a level of unique precision and insight that sets us apart from other providers.
We implemented a three-step approach to systematically assess vendor reporting and compliance. This methodology allowed us to effectively track supplier activity, flag non-compliance, and proactively engage with suppliers to ensure they fulfilled their contractual obligations.

Results
Within a few quarters, our approach led to a 50% increase in revenue from supplier fees—an astounding achievement for a program already considered effective. This journey demonstrated the power of data-driven insights and highlighted the state’s willingness to adapt and evolve its procurement practices. This dramatic improvement initiated by SOVRA was due to better compliance, consistent follow-up, and a deep understanding of procurement processes.
With the increased revenue, the procurement department was entirely self-funded and could increase its budget and invest in its team. By leveraging SOVRA’s expertise, our partnership uncovered hidden revenue and reinforced the importance of proactive supplier engagement and compliance monitoring, marking a new chapter in the state’s procurement journey.
Interested in how SOVRA’s Fee Optimization Program could impact your state, click here