CASE STUDY 1: Policy Crisis & Government Relations Solution
A Legislation Problem
A company executive came to us with a huge problem -- the state legislature had passed a law, which the governor had signed, that in effect would have put the company out of business in just a few months. It would not have technically put them out of business since it would have allowed them to do business in neighboring states, but since the company was national in nature and was doing business in 46 states, in essence it would have to shut its doors.
When we were first presented with the problem, we began by analyzing the legislation and trying to figure out why a state would enact such a law, putting hundreds of people out of work. It became quickly apparent that the legislature was rightfully trying to outlaw certain dangerous behaviors but in doing so drafted the law so broadly that it inadvertently swept in our client as well.
When we were first presented with the problem, we began by analyzing the legislation and trying to figure out why a state would enact such a law, putting hundreds of people out of work. It became quickly apparent that the legislature was rightfully trying to outlaw certain dangerous behaviors but in doing so drafted the law so broadly that it inadvertently swept in our client as well.
Strategic Planning
Our first step on the governmental relations side was to go to the governor and see if the governor would agree that the law had inadvertently included our client. After carefully explaining who the law was intended to include and why our client was not part of that segment of the industry, the governor agreed to sign a bill but only if it came to his desk. In other words, he would not advocate for it but would also not oppose it.
Our next step was to find champions in the legislature to submit a revised bill. We were able through assistance from our local lobbyists, who we brought in to assist with the day to day lobbying elements of this project, a small group of legislators who understood the need to revise the law. However, we were opposed by the committee chairman, who was the sponsor of the original law.
Realizing that it might ultimately turn out to be impossible to maintain the business in its original state, we immediately began considering alternative locations. Working with a neighboring state, we were able to put together an economic development package with the governor of that state and their economic development team that would make it economically possible for our client to relocate on the other side of the border. In addition, since our client was located in the northern part of the United States and frequently had shipping issues resulting from bad weather, we convinced them to open a second office in a warmer climate and have some redundant services so that it could ship from either location. We worked with the local mayor and governor to get assistance in opening this secondary office.
Our next step was to find champions in the legislature to submit a revised bill. We were able through assistance from our local lobbyists, who we brought in to assist with the day to day lobbying elements of this project, a small group of legislators who understood the need to revise the law. However, we were opposed by the committee chairman, who was the sponsor of the original law.
Realizing that it might ultimately turn out to be impossible to maintain the business in its original state, we immediately began considering alternative locations. Working with a neighboring state, we were able to put together an economic development package with the governor of that state and their economic development team that would make it economically possible for our client to relocate on the other side of the border. In addition, since our client was located in the northern part of the United States and frequently had shipping issues resulting from bad weather, we convinced them to open a second office in a warmer climate and have some redundant services so that it could ship from either location. We worked with the local mayor and governor to get assistance in opening this secondary office.
A Win-Win Solution
At the same time that we were working on these two fronts, it occurred to us that the law was unconstitutional as it was in violation of the Commerce Clause of the United States Constitution. We brought in a leading national law firm that was based in the capital city of the client's state. We provided the law firm with a number of legal arguments which proved to be on point. In addition, we worked with the state's attorney general's office, explaining that we were going to challenge the law on constitutional grounds. Upon hearing our argument and seeing drafts of our brief, the Attorney General decided that the state would lose in court and it was not worth the time or expense to defend the law. Our final legal step was to have the Attorney General inform the Governor that the law could not be defended and had to be overturned.
Upon hearing that our client was preparing to leave the state, taking hundreds of jobs with it and that the state Attorney General would not defend the law because it was unconstitutional and would not stand up in court, the committee chairman agreed to allow the revised language to be included in a supplemental budget bill. The bill passed and was signed into law by the governor.
Thanks to our efforts, our client was able to continue to do business, keeping a $1 billion business in operation, and saving over 300 jobs. It took convincing 3 governors, a big city mayor, a constitutional law challenge, an attorney general and an economic development package that gave our client real options and leverage to get to a successful outcome for our client. By providing innovative and comprehensive solutions to our client's problem, we were able to fashion an extremely successful result.
Upon hearing that our client was preparing to leave the state, taking hundreds of jobs with it and that the state Attorney General would not defend the law because it was unconstitutional and would not stand up in court, the committee chairman agreed to allow the revised language to be included in a supplemental budget bill. The bill passed and was signed into law by the governor.
Thanks to our efforts, our client was able to continue to do business, keeping a $1 billion business in operation, and saving over 300 jobs. It took convincing 3 governors, a big city mayor, a constitutional law challenge, an attorney general and an economic development package that gave our client real options and leverage to get to a successful outcome for our client. By providing innovative and comprehensive solutions to our client's problem, we were able to fashion an extremely successful result.
CASE STUDY 2: Public Contract Procurement
An Impending Contract Expiration
One of our clients is a national provider of highly specific healthcare services. It had a large contract to provide these services to one of the largest cities in the country. We were instrumental in their obtaining this more than $1 billion contract and had been greatly involved over the prior 10 years with each of their successful renewals. This contract was enormously important to our client not just because of the money it generated but also because it is highly prestigious within its industry and helped maintain its market share.
Individuals in the department overseeing the contract decided that they no longer wanted a private company providing these services and preferred to have public or not-for-profit agencies do so. However, they were unable to find any public or not-for-profits who were interested in taking on such a large endeavor. As time wore on, the department realized that they had run out of time and could not get a Request for Proposal (RFP) issued, reviewed and awarded before the contract expired. As a result, they offered our client a one year extension.
It became obvious to us that the intention of the department was to give our client the one year extension and use this extra time to find a public entity or not-for-profit to take over this contract and fire our client. We realized that if our client only had a one year extension and there were rumors that they would not keep the contract longer that their top employees would leave for more secure jobs. Our client would be severely damaged, not only by losing a lucrative and prestigious contract but also by damage to its reputation, resulting from losing top staff and perhaps not performing as well as they had in the past. This would have national repercussions for our client, hurting them in the bidding process in virtually every state and city in the country.
Individuals in the department overseeing the contract decided that they no longer wanted a private company providing these services and preferred to have public or not-for-profit agencies do so. However, they were unable to find any public or not-for-profits who were interested in taking on such a large endeavor. As time wore on, the department realized that they had run out of time and could not get a Request for Proposal (RFP) issued, reviewed and awarded before the contract expired. As a result, they offered our client a one year extension.
It became obvious to us that the intention of the department was to give our client the one year extension and use this extra time to find a public entity or not-for-profit to take over this contract and fire our client. We realized that if our client only had a one year extension and there were rumors that they would not keep the contract longer that their top employees would leave for more secure jobs. Our client would be severely damaged, not only by losing a lucrative and prestigious contract but also by damage to its reputation, resulting from losing top staff and perhaps not performing as well as they had in the past. This would have national repercussions for our client, hurting them in the bidding process in virtually every state and city in the country.
An Innovative Procurement Solution
We created a strategic plan for the client that included taking a hard line and rejecting the one year extension. We did so knowing that the department could have terminated our client's contract at any time. At first, our client was shocked, not wanting to jeopardize its existing contract. However, we knew that the only leverage our client had was to take the element of time away from the department, thereby forcing them to either find someone who they preferred immediately or run the risk of our client serving out its contract and withdrawing, leaving the city without anyone providing this essential health service. We even went so far as to draft employee termination notices to inform our client's employees that it would not be extending the contract past its termination date.
The department refused to back down, repeating that it would not offer our client more than a one year extension. Finally with just days before our client had to notify its employees that it was terminating the contract, we were able to get the Mayor's Office to step in and force the department to negotiate a longer contract with our client.
As a result of our direct efforts, our client received a new multi-year contract with a number of extensions. Instead of losing the contract and hundreds of millions of dollars, our client made hundreds of millions of dollars.
The department refused to back down, repeating that it would not offer our client more than a one year extension. Finally with just days before our client had to notify its employees that it was terminating the contract, we were able to get the Mayor's Office to step in and force the department to negotiate a longer contract with our client.
As a result of our direct efforts, our client received a new multi-year contract with a number of extensions. Instead of losing the contract and hundreds of millions of dollars, our client made hundreds of millions of dollars.