2 Breakout Session #304 Po Collins, CPCM, C.P.M, Fellow Raytheon Company, Senior Manager, Contracts Holly Friedrich, CPCM, Fellow DCMA Contracts Field Support Representative 15 April 2008 Value-Added Contract Management: Earning Trust & Bringing Value

3 Agenda Early Involvement Constructing Relationships Expanding Our Reach

4 Early Involvement More Than Terms and Conditions Understanding the Effort Contract Structure Protecting Information Payment and Financing

5 Early Involvement: More Than Terms and Conditions Risk & Opportunity Assessments Evaluating New Markets Collaborative Partnerships Mergers and Acquisitions Offer Innovative Solutions –Reward creativity & innovation –Expand business acumen education –Use tools to assess risk & opportunity from a CM perspective “Just Say No” Is Not an Option!

6 Early Involvement: Understanding the Effort Decline of sole-source DoD business End-to-end solutions Risk management Clear work definition Internal approvals Negotiations

7 Early Involvement: Contract Structure Investor expectations are rising, including higher ROIC Selecting contract types –Unique Obligations Statements of Work –Clear work definition –Clear exit criteria Regulatory requirements

8 Early Involvement: Protecting Information Proprietary Agreements Export/Import Licensing Technical Assistance Agreements Data Rights Allow Customer Performance

9 Early Involvement: Payment and Financing Contract financing terms Funding and color of money Delivery and acceptance Payment process

10 Constructing Relationships How Contracts Fits IPT Structure Declining Workforce Multi-tasking

11 Constructing Relationships: How Contracts Fits More Complex Partnerships –Teaming –Collaborative –Partnerships –Joint Ventures –Mergers & acquisitions Improve Relationships –Cultivate customer relationships Authority to Commit

12 Constructing Relationships: IPT Structure Embrace Creative Solutions Look for Synergy between Disciplines Integrated Product Teams (IPTs) IPT Shortcomings

13 Director System Engineering Production/ Operations Engineering Services Engineering Supply Chain Quality MPM Finance Contracts Constructing Relationships: IPT Structure Program Manager

14 DCMA Program Integrator Engineering Manufacturing Quality Assurance Other Functional Specialties Administrative Contracting Officer Program Manager Procurement Contracting Officer Constructing Relationships: Government Program Team

15 Constructing Relationships: Declining Workforce War for Talent Is Intensifying If You Build It, They Will Come…and Stay Develop, Attract & Retain Talent –Continuous learning –Develop new competencies –Effective use of technology –Streamlined processes –Empowered professionals –Required training

16 Constructing Relationships: Multi-Tasking Talent needs are changing: New skill sets Stronger bench and people with multi-functional skills needed –Very strong verbal and written communications skills –Routinely interact with internal and external customers and demonstrate discretion and excellent judgment –Develop and sustain customer relationships –Positive can-do attitude –Effectively interface at all levels of the business area –Team player

17 Constructing Relationships: Multi-Tasking, continued Stronger bench and people with multi-functional skills needed –Critical thinker and problem solver –Sound judgment –Effectively establish and maintain internal and external customer relationships –Proficient in common office software applications (Word, Excel and PowerPoint) –Detail-oriented –Extremely well-organized

18 Expanding Our Reach Ensuring Compliance Recognizing Change Effective Performance Measurement

19 Expanding our Reach: Ensuring Compliance Laws Regulations Internal policies/procedures

20 Expanding our Reach: Recognizing Change Must anticipate change Changing Marketplace –Decline of sole-source DoD business –Customers demand rapid, flexible, and innovative solutions –Need to provide end-to-end solutions: Funding…development…customer support Investor expectations are rising, including higher ROIC Changing contract requirements –Participate in Technical Meetings

21 Expanding our Reach: Effective Performance Measurement Export license cycle time Negotiated profit Bookings IDIQ awards Overaged undefinitized contracts Delinquent invoices and payments Prompt contract closure

22 Summary Engage early Become a valued team member Understand ALL contract requirements Contract Management requires you to… –Communicate –Certify –Comply –Change (Manage) –Close-out

23 Questions ?