Research - Publishing - Events - Advisory

Fair and Reasonable Prices for Services More Difficult to Determine; Enhanced Competition at Contract and Order Stages Recommended Monadnock Research (VIII N10) - 17 March 2010 MR - This Research Note summarizes the key findings and recommendations of a two year study conducted by the U.S. GSA's Multiple Award Schedule Advisory panel into procurement policy regulations, solicitations, and contract provisions, which highlights distinctions between services, solutions, and products. Some key study findings include: (1) It is more difficult to determine fair and reasonable prices for services than for products; (2) Meaningful competition occurs at the contract schedule (MSA) and order levels; (3) The value of a price reduction clause as an effective procurement tool is questionable; (4) Order data is not systematically collected as it should be to leverage client purchasing power; and (5) the best method for determining a fair and reasonable price for services and products is to enhance competition at the contract and order levels, and to ensure that the process of contract and order formation is transparent to both procurement and all authorized ordering activities. Report makes 20 key recommendations to re-architect inter-agency procurement policies, processes, and workflow to increase competition and transparency, and to set the stage for transformation to strategic sourcing within the world's largest organization. (1,653 words) . . . More Caliburn Partnership to be Acquired by Greenhill & Co. Monadnock Research - 16 March 2010 MR - Greenhill & Co. has signed a definitive $91 million agreement (not including earn-out provisions) to acquire Caliburn Partnership Pty Ltd. (Caliburn), a leading independent financial advisor serving the Australasian market. The firms say the acquisition advances their common goal to create the leading independent global financial advisory firm, with capabilities to advise clients across industry sectors on mergers, acquisition, restructurings, financing, and capital-raising in all regions. Caliburn says it has advised on more than $170 billion (AUS) of transactions since its inception in 1999. The deal is expected to close in early April. (1,395 words) . . . More Drivers Jonas Deloitte Launches after Acquisition Closes Monadnock Research - 16 March 2010 MR - Deloitte has completed the creation of Drivers Jonas Deloitte, a specialist real estate advisory subsidiary that launches with approximately 700 staff. This follows the completion of Deloitte LLP's merger with property advisory Drivers Jonas, which was founded in 1725 and was the UK's oldest property advisory firm. The transaction closed as planned when the deal was announced in late January. The combined Real Estate Group will have estimated annual revenues over £110m, and it will operate within Deloitte's £200m UK Real Estate industry practice. (560 words) . . . More 2010 US Public Sector Business Consulting Services Rates Increase by 3.5 Percent Monadnock Research (VIII N9) - 12 March 2010 Rates for business consulting services provided to US public service organizations in 2010 increased by 3.5 percent over 2009 levels. The mean hourly rate for services across all categories was a little under $200. But less than one-fifth of business consulting services firms included executive-level positions in their negotiated rate schedules. This Research Note summarizes our analysis of rates for the business consulting services category under the US GSA's Schedule 874, Mission Oriented Business Integrated Services (MOBIS). It also analyzes the consolidated hourly rates of each firm within MR's 8 labor rate categories, including details on the categories themselves, for the top 5 percent of the 2,000 firms providing related services. Over the next eight weeks we will publish our analysis of rates for financial and business advisory services, human resources and administrative services, advertising and integrated marketing services, and information technology professional services. (1,850 words, 4 Charts) . . . More LECG Completes Merger with Smart Business Advisory & Consulting Monadnock Research - 10 March 2010 LECG Corporation has completed its merger with SMART Business Advisory & Consulting. The deal was announced in August 2009 and was approved by LECG shareholders in December. But its anticipated February closing had to be extended to allow more time to finalize negotiations on a new credit facility for the merged company. LECG issued around 10.9 million shares of common stock to acquire SMART's shares, and another 6.3 million newly created Series A convertible redeemable preferred shares at $3.96 each to Green Hill Partners for $24.95 million in cash. . . . More U.S. Bonus Payments for 2010 Remain Strong; Salary Levels to Increase Slightly Buck Consultants - 10 March 2010 Buck - The majority of U.S. employers report their bonus payments in 2010 will be similar to what they paid in 2009, according to the results of a recent survey by Buck Consultants. Buck's survey found that pay increases for 2010 will average 2.2 percent, which exceeds 2009 levels but is slightly less than the 2010 projections made by companies in a July 2009 Buck study. One-third report making changes to the way they measure or reward employee performance. Thirty percent indicate they plan to use market-based salary adjustments to retain top performers. And more than 95 percent of participants have no plans to expand or implement bonuses for attracting and retaining employees, despite growing worker dissatisfaction. (685 words) . . . More Deloitte Acquires Carbon and Sustainability Consultancy, dcarbon8 Monadnock Research - 8 March 2010 MR - Deloitte has acquired dcarbon8, a leading carbon and sustainability consultancy, as the firm expands its environmental and sustainability consulting practice. dcarbon8's founder, Guy Battle, joins Deloitte as a partner. The firm focuses on incorporating carbon within client products and complex supply chains. This news follows the January announcement of the acquisition of property advisory Drivers Jonas, creating a new real estate advisory business within Deloitte, and the acquisition of business performance and information management consultancy, ReportSource. (450 words) . . . More Boston Consulting Group Opens Three New Offices Monadnock Research - 8 March 2010 MR - The Boston Consulting Group (BCG) has opened three new offices, including its first on the African continent. The new office locations are in Casablanca, Morocco; Canberra, Australia; and Istanbul, Turkey, bringing the firm's total number of offices to 69 in 40 countries. BCG says the office openings follow strong 2009 financial results, where the firm posted a 3 percent increase in global revenues at constant exchange rates, and increased global consultant headcount by 2 percent. (320 words) . . . More Arrow ECS Establishes Consulting and IT Services Organization Monadnock Research - 4 March 2010 MR - Arrow Enterprise Computing Solutions (Arrow ECS) has launched a new professional services business unit in North America. Arrow ECS now provides technical, engineering, and educational services for the company's full portfolio of software, hardware, and storage offerings, as well as proprietary services and select cloud computing and managed services for Arrow resellers and clients. Arrow ECS reported $4.9 billion in global revenues in fiscal 2009. (436 words) . . . More CEO Study Indicates Human Capital Strategies Will Become a Priority Post-Recession PricewaterhouseCoopers - 28 February 2010 PwC - While some large employer brands were tarnished in the last few years in terms of their human capital strategies, PricewaterhouseCoopers' recent 13th Annual CEO Survey suggests that CEOs are prioritizing their HR agendas as a means to recover and grow. Seventy-nine of CEOs expect to overhaul the way their organizations manage people during change as a consequence of the economic crisis. Addressing staff morale was highlighted by three-quarters of CEOs as an area in need of reform and investment. Fifty-nine percent said they will make changes to flexible working, with 55 percent intent on revising global mobility of staff. Forty-eight percent said they had reduced headcount over the last year, and 77 percent plan to increase investment in training and development. (705 words) . . . More 2010 Global Consulting Firm Rate Study Launches - Free to Participants Monadnock Research - 25 February 2010 Monadnock Research announces its comprehensive research program for 2010 consulting firm rates. The study will be the largest negotiated client rate study ever conducted. Participation is free and confidential. Statistical results will be aggregated and reported in a final series of 500+ page reports by industry that will be made available only to participants. . . . More Hewitt Spins-Off Part of Its Executive Compensation Consulting Business as Meridian Compensation Partners Monadnock Research (VIII N8) - 25 February 2010 MR - Hewitt Associates has divested a portion of its North American executive compensation consulting business, forming Meridian Compensation Partners LLC. Under the agreement, a number of principals and consultants will be leaving Hewitt to form Meridian. Staff departures will be staged between February and October 2010. The move addresses regulatory changes in the U.S. related to transparency and objectivity of advisory relationships, and conflicts they may pose. Hewitt and Meridian say the firm will operate as an independent executive compensation advisor. There will be no cross-ownership interest held by principals of either entity, according to Meridian sources. Hewitt says it will continue to serve board clients that are comfortable with its current controls in place to ensure independence of executive compensation advice, or where fee disclosure is not a material issue. (732 words) . . . More Former Deloitte Consultant Settles Insider Trading Allegations Monadnock Research (VIII N7) - 25 February 2010 MR - A former Deloitte employee benefits consultant and three co-defendants have settled SEC insider trading charges, agreeing to pay around $145,000 without admitting or denying the allegations. The case involved insider trading in securities of Crocs, YRC Worldwide, Spectralink Corporation, and SigmaTel. Crocs was a Deloitte audit client. (Includes copies of settlement documents - 300 words) . . . More Consulting Leadership News: L.E.K., A.T. Kearney, CSC, KPMG, Deloitte, PwC, EquaTerra, and FTI Consulting Monadnock Research - 25 February 2010 MR - L.E.K. Consulting appoints 13 new Partners across Europe, North America, and Asia Pacific. A.T. Kearney appoints Director of firm's Global Business Policy Council. CSC appoints President of Global Sales and Marketing; Vice President of Cyber Technology and Services. EquaTerra appoints Real Estate & Facilities Management Advisory practice leader. Former CFO of National Science Foundation joins Deloitte; Firm appoints new leader of the U.S. automotive practice. KPMG Appoints U.S. National Managing Partner of university relations and recruiting. PricewaterhouseCoopers appoints principal and leader of Capital Projects & Infrastructure practice. FTI Consulting appoints Senior Vice President and Chief Marketing Officer; Segment leader for FTI Technology. . . . More Fraudulent Transfer Claims on the Rise Navigant & the Economist (EIU) - 24 February 2010 Navigant and EIU - Signals about the pace of economic recovery continue to be mixed and there has been a dramatic uptick in the number of fraudulent transfer claims filed as a result of the financial crisis, according to the results of a new study by Navigant Consulting and the Economist Intelligence Unit (EIU). According to the findings, more than half of respondents saw an increase in fraudulent transfer cases in the past year, while only two percent saw a decrease. Lenders are increasingly being found by courts to have negotiated unfair advantages in their dealings with distressed borrowers over the interests of other parties. (465 words) . . . More More News More Research Notes (subscription) More Firm Research