Orchestrating a $600K Co-Termination Across Five Contracts

The Challenge

A large defense contractor had accumulated five separate contracts with us over four years, each purchased by a different division at different times with different renewal dates. Managing five contracts was a headache for both sides — different pricing, different terms, different renewal dates, and no volume discounts. Total annual spend was $480K across the five contracts.

The Approach

I proposed consolidating all five contracts into a single enterprise agreement with a common renewal date. The benefits for the customer were clear: simplified procurement, volume-based pricing, consistent terms across all divisions, and a single point of contact. To make the co-termination work financially, I pro-rated each contract to align with a common end date and offered a 10% enterprise volume discount.

The complexity was in the execution. Each division had its own procurement team, and coordinating the termination and replacement of five separate contracts required alignment from five stakeholders. I created a project plan with each division's responsibilities and managed weekly check-ins until all contracts were consolidated.

The Result

The consolidated enterprise agreement was signed at $600K annually — a 25% increase over the $480K combined value of the separate contracts, despite the 10% volume discount. The increase came from adding users in three divisions that had been under-deployed due to the complexity of modifying individual contracts. The customer loved the simplification, and our finance team loved the predictable renewal date.

Key Takeaway

Contract fragmentation is both a risk and an opportunity. Multiple small contracts are harder to defend at renewal and easier for competitors to pick off one at a time. Consolidating into an enterprise agreement strengthens the relationship, grows revenue through simplification-driven adoption, and creates a single, defensible renewal event.