ESBD_434199_1752495689793_Indirect Spend Event Scope of Work.pdf

The University of Texas at M. D. Anderson Cancer Center

Scope of Work for

Indirect Spend Procurement Optimization Sourcing Event July 14, 2025

1. Overview

The University of Texas MD Anderson Cancer Center (“MD Anderson”) is seeking proposals from experienced and qualified procurement advisory firms to provide strategic support in optimizing its indirect spend and purchased services portfolio.

As a large academic healthcare institution and Texas state agency, MD Anderson seeks to improve cost efficiency, supplier performance, and procurement governance across all non-clinical spend categories. The primary objective of this initiative is to identify and achieve cost-saving opportunities, improve procurement efficiency through category management strategies, and enhance overall value through strategic sourcing, supplier consolidation, process improvement, and contract optimization. Firms are expected to bring deep market expertise, data-driven insights, and a demonstrated track record of delivering measurable results in similar healthcare or complex organizational environment, while ensuring compliance with applicable healthcare, academic, and Texas state procurement regulations.

For the purposes of this engagement, the term “indirect spend” refers to all categories of procurement and contractual expenditures that are not directly tied to the delivery of patient care, including purchased services. This includes, but is not limited to, areas such as facilities management, information technology, administrative services, professional consulting, marketing, and other non-clinical goods and services.

This sourcing event will be conducted in two phases:

Phase 1 – Request for Qualification (“RFQ” or “Qualification”) MD Anderson will evaluate firm qualifications, relevant experience, service capabilities, and alignment with our objectives. No detailed pricing information will be requested or considered during this phase.

Phase 2 – Request for Proposal (“RFP” or “Proposal”) A shortlist of qualified respondents from the RFQ phase will be invited to submit a detailed technical and financial proposal and may be invited to vendor presentations, in response to the

RFP.

2. Scope of Services

Respondents are required to propose a methodology for achieving the outcomes identified below. MD Anderson will evaluate proposals based on their relevance to the healthcare sector, adaptability to a public procurement environment, and potential to deliver measurable results.

2.1 Spend Analysis and Opportunity Assessment

• Conduct a structured assessment of MD Anderson’s indirect spend and purchased services based on historical spend data and available contract documentation;

• Benchmark current pricing and contract terms against available market data;

• Identify categories with the highest potential for cost savings, supplier rationalization, or value improvement;

• Provide a summary report highlighting key opportunity areas, including estimated savings potential and ease of implementation.

2.2 Develop Category Management Strategies

• Develop category-specific sourcing strategies that incorporate State of Texas procurement rules and MD Anderson policies;

• Create a business case for each prioritized category including ROI projections and implementation timelines;

• Establish stakeholder engagement plans with clear roles and responsibilities.

2.3 Proposal Evaluation and Negotiation Support

• Provide recommendations on structuring RFPs, RFQs, or other competitive solicitations based on prioritized opportunities;

• Suggest total cost of ownership (TCO) models and evaluation methods to compare supplier proposals;

• Support strategy development for supplier negotiations.

2.4 Savings Validation and Reporting

• Provide tools or templates to support internal reporting to leadership;

• Document both direct cost reductions and indirect value improvements (e.g., payment terms, service levels, contract compliance, etc.).

3. Estimated Indirect Spend

MD Anderson’s total annual indirect spend is estimated to exceed $600 million in the aggregate.

This estimate is provided solely for the purpose of bid consideration and planning and does not represent a guaranteed volume or commitment.

For the purposes of this solicitation, indirect spend refers to all categories of procurement and contractual expenditures that are not directly tied to the delivery of patient care, including purchased services. These may include, but are not limited to, the following categories:

• Facilities Management & Maintenance

• Marketing & Advertising Services

• Information Technology (hardware, software, services)

• Temporary Staffing & Human Resources Support

• Consulting & Professional Services

• Purchased Administrative Services

• Courier & Logistics Services

• Equipment Maintenance & Repair

• Food & Nutrition Services

• Other non-medical support services

Respondents should not assume that all categories listed above will be included in the scope of any resulting engagement. More detailed category spend data will be shared with the selected firm(s) upon contract execution.