1. Crown Commercial Service Commercial Contract and Supplier Management
Version v1.0
19 Nov 2014
Delivering value for the nation
through outstanding commercial capability
and quality customer service

2. Mission Statement
Our aim is to ensure that our customers are getting the maximum levels of service and value from their suppliers whilst also minimising risk.

3. Contract Management – Part of our DNA
Procurement
Process
Contract and Supplier Management
High
Before going to market
Time spent on value added activity
Developing requirements that shape markets and the supply base to Government
Improving contract and supplier management capability through application of new standards and capability
Simplifying process and reducing turnaround times & supplier bid costs
Low
Before
Business need identification
Sourcing strategy
Supplier identification
Finalisation of contract
Contract management
Goal
Market analysis
Execution of sourcing strategy
Supplier relationship management and negotiation
Achieving better results from public funded bids

4. Why are we doing it? Delighted customer Improved supplier performance
Risk management and business continuity best practice
Contract savings
Transparency of performance data
Stringent performance reporting
Stringent Performance reporting
MI and best practice sharing across contracts and suppliers
Management information (MI) and best practice sharing across contracts and suppliers
Strong supplier relationship management (SRM) and contract management (CM) links across supplier organisations and categories
Strong SRM and CM links across SO and categories
Standardised and online CM resources reducing CM time
Standardised and on line CM resources reducing CM time
Value for money (VFM) contract variations linked with organisational priorities
VFM contract variations linked with organisational priorities
Transition to better value contracts/ frameworks
Transition to better value contracts/ frameworks
Benchmarking of costs across contracts and departments
Benchmarking of costs across contracts and departments
CM portal, with shared customer interface
CM portal, with shared customer interface

5. Contract Managers – Pillar (Tier 1)
Steve Duckworth Head of Contract and Supplier Management
Victoria Ladishinskaya Technology Lead
Barry Bone Corporate Lead
Mark French Buildings Lead
Angela Donohue People Lead
Paul Allison Operations Lead
IACCM
Expert*
IACCM
Expert*
IACCM
Expert*
IACCM Expert tbc*
IACCM Expert*
IACCM Expert*
Contract Managers – Pillar (Tier 1)
Commercial Awareness and Negotiation Training**
Contract Managers – Service Operations (Tiers 2 and 3)
Commercial Awareness and Negotiation Training**
* International Association for Contract and Commercial Management (IACCM) training to Expert Level for Commercial Contract Management and Supplier Relationship Management
** IACCM and bespoke courses through Civil Service Learning

6. Contract Management (CM) Standards Overview
Pre-Procurement
Procurement/ Mobilisation of CM Function
Implementation: CM Set Up
Delivery: CM
Exit, Transition & Review
Review deliverability of the contractual provisions
Scope
Payment Regime
Key performance indicators (KPIs)
Operational CM
Customer feedback
Supplier reporting
Governance
Escalation / dispute resolution
Benchmarking and VFM
Exit provisions
Before contract award:
Review deliverability of proposals with the supplier
Agree split of roles and responsibilities between customer and supplier
Resource and mobilise CM function
Budget
Recruitment
Training
Objective-setting
Set up internal CM documents and systems
CM operations manual
CM planner
Contract budget monitoring
Contract change controls
Risk register
Issues log
Lessons learned log
Continuous improvement plans
Repository for contract and procurement documentation (filing system)
Contingency and business continuity plans
Benefits capture
Client meetings and governance structure
N.B. ensure these are in place for existing contracts
Agree with supplier
Process maps for contracted provision
Customer and supplier roles and responsibilities
Performance monitoring regime and criteria: common understanding of scope, KPIs and reporting requirements
Processes for complaints, escalations and dispute resolution
Triggers for payment and incentive regime
Meetings: governance, agenda, terms of reference
Change control process and forms
Customer satisfaction surveys process
Contingency and continuity plans
Exit plan
Operational management and administration (3.0)
Supplier performance monitoring (3.1)
CM budget monitoring (3.2)
Change control and benefits realisation (3.3)
Escalations and disputes (3.4)
Benchmarking and VFM (3.5)
Supplier relationship and continuous improvement management (3.6)
Client relationship management (3.7)
Risk and business continuity management (3.8)
Finalise and implement the exit plan
Ensure handover information is captured from supplier
Conduct soft market testing
Ensure gathered lessons learned and soft market testing feed into future procurement / re-procurement
ACTIVITIES
Robust draft contract documentation
Signed contract
CM function budget and scope agreed
CM function in place
Suite of contract specific CM documentation and systems (as listed above)
CM documentation and systems agreed with supplier
Robust regime for CM governance, performance monitoring and budget control
Exit plan
Agreed re-procurement
Updated specification
OUTPUTS
A contract that is fit for purpose, aligned to client organisation priorities and easy to manage
A fit for purpose contract
A fit for purpose CM function
Continuity between procurement to delivery stages
Customised CM systems, based on common standard – optimising contractor performance while minimising contract and CM costs
Common understanding of contracted provision between customer and supplier
Ability to hold the supplier to account for delivery of contracted provision
Supplier providing maximum provision for minimum cost
Reduced time input required from the client
Proactive CM > no need for fire-fighting
Transition to re-provision
Market intelligence and previous lessons captured, informing future provision
OUTCOMES

7. Contract Management Implementation
Performance improvement
Contract object
Contract handbook
Escalation and dispute resolution
SRM
Benchmarking
Cross government data
Innovation and improvement
Intelligence and review
Exit management
Performance management
Cost control
Risk control
Supplier reviews
Contract tiering
Contract Manager assigned
Contracts loaded to database
Change control
MI identified
Phase 1
Transition
Phase 2 Start up
Phase 3
Operations
Phase 4
Strategic contract & supplier management

8. If you have any questions about the CCS contract management team or the use of Contract Management Standards and related documentation please contact: Vicky Ladizhinskaya Senior Commercial Manager Mobile: