Case Study #3

Client had recently completed negotiations for voice and data services with a tier-1 carrier. Source One was hired to review the final contract offer to determine if further cost reductions could be obtained.

The Process

Source One reviewed incumbent carrier's current contract and billings via our AUDIT service option. We compared the incumbent's proposed offer to carrier promotions and customized offers negotiated by Source One for other clients. Source One also introduced an alternate carrier to provide connectivity services.

While auditing the current contract, Source One discovered no tax waivers and immediately filed new and retroactive exemption forms to receive the correct refund and ongoing tax exemption. While reviewing the existing contract and the billing history, we found that a signing bonus was never issued. Source One negotiated with incumbent carrier for the full credit amount. In addition, we uncovered inaccuracies in billing for the frame relay service and identified some clauses to add to the proposed contract.

The Result

• Lower net costs and reduced usage commitment by 1/3, resulted in annual savings of $96,000
• Recovery of incorrect charges for taxes, credits promised in previous contract and refund for incorrect discount on frame relay, resulted in a $17,000 refund
• Rate stabilization and annual review of contract terms added as a clause to the contract
• Immediate receipt of full refund from the carrier

In total, carrier contractual offer to Client improved by 31%.

Source One will continue to monitor alternate carrier for 24 months to ensure pricing and contractual commitments are met. The alternate vendor recommended by Source One has since been contracted for further services by the Client.