Optimizing the CRO Bidding Process for a Mid-size Biotech

The Challenge

A mid-size biotech Sponsor faced significant challenges in managing an RFP process requiring proposals from three CROs. Each CRO submitted their proposals in native bid grid structures, creating inconsistencies and inefficiencies. Without a unified technology platform, the Sponsor relied on spreadsheets and outdated tools, resulting in:

• Time-Consuming and Error-Prone Comparisons: Standardizing budget comparisons and analyzing responses required significant manual effort and advanced Excel skills.
• Misalignment of Formats and Assumptions: Variations in CRO submissions necessitated multiple clarifications and extensive reconciliation efforts.
• Lack of Actionable Insights: Spreadsheets were unable to support intuitive variance analysis or benchmarking against Fair Market Value (FMV), complicating the assessment of proposals.
• Delays and Increased Risks: Prolonged timelines and misaligned expectations impacted due diligence and CRO negotiations.

Given the complexity and scale of the study, the sponsor required a solution that ensured clarity, efficiency, and consistency in the evaluation process.

The Solution

To address these challenges, the sponsor adopted Strategikon’s Clinical Maestro platform, leveraging its advanced capabilities to enhance the RFP process. The solution streamlined proposal submissions, aligned budgets with benchmarks, and enabled data-driven decision-making.

Step 1: Establishing a Baseline

Strategikon set up the sponsor’s RFP template and standardized bid grid in Clinical Maestro, mapping the Sponsor’s activities to market benchmarks. This created an accurate baseline budget, serving as a reference for proposal evaluations.

Step 2: Facilitating CRO Collaboration

The proposal submission deadline was extended by one week to allow for CRO training on Clinical Maestro. Strategikon provided free system training to all three CROs. One CRO took a strategic approach, requesting additional time and sessions to align their bid grid with Clinical Maestro’s structure, ensuring accuracy and efficiency in their submission.

Step 3: Streamlining Due Diligence

All CROs successfully submitted proposals through Clinical Maestro’s SOURCE outsourcing engine. This platform enabled:

• Efficient side-by-side comparisons of budgets against benchmarks.
• Simplified due diligence with reduced manual effort.
• Quick identification of misalignments in cost drivers and scope alignment.

Results

The CRO Who Engaged Strategically Won the Proposal

The CRO who took a strategic approach to both proposal team training and activity mapping delivered a proposal that closely matched the Sponsor’s expectations, securing the contract. Clinical Maestro was instrumental in this success by:

• Reducing Proposal Submission Time by 80%: High-quality submission with precise alignment to Sponsor requirements accelerated the process.
• Improving Sponsor Satisfaction: Transparent cost comparisons and actionable insights fostered Sponsor’s trust and confidence in the CRO’s ability execute the study.

Quantitative Outcomes

• 80% Reduction in Negotiation Time: Streamlined bid grid mapping and reduced back-and-forth exchanges cut negotiation meetings from four to one.
• >90% Reduction in Due Diligence Time: Easy comparisons and improved clarity minimized Sponsor’s manual effort.
• >15% Cost Savings: Eliminating unnecessary scope and negotiating based on FMV saved over $1 million in clinical trial execution costs.

Conclusion

Building Long-Term Value

Post-award, Strategikon, the Sponsor, and the winning CRO deepened their partnership. Strategikon provided global training for the CRO’s proposal team and co-developed a resource library for future submissions through Clinical Maestro SOURCE. Feedback from the CRO was incorporated into the platform’s development roadmap, enhancing future user experiences.

This collaboration not only improved the CRO’s win rate but also reinforced the Sponsor’s confidence in their decision-making process, establishing a foundation for ongoing success and innovation.