Presentation is loading. Please wait.

Presentation is loading. Please wait.

Effective Contract Management Planning

Similar presentations

Presentation on theme: "Effective Contract Management Planning"— Presentation transcript:

1 Effective Contract Management Planning
For Performance-Based Contracting

2 It’s a Different Contracting World!
Performance-Based Acquisition fundamentally changed contract formation and administration Objectives structured into contracts and multiple incentive arrangements Contractors and Federal staff adjusting to a cultural change

3 When does Contract Management start?
Old View Started at contract award Embodied a post-award orientation New View Effective contract administration starts early with contract management planning Begins during the acquisition planning phase Recognizes the performance-based elements of the contract The Contract Management Plan is in place before or shortly after the time of award

4 The Performance-Based Contract
What are the elements of Performance-Based Contracting? Government Protocols Require: Establish requirements in a results oriented manner Ensure that Contract measures and expectations are measurable and correspond to work requirements Ensure that Quality Assurance Surveillance Plans are tailored to contract objectives Incorporate cost constraints or cost incentives Acquisition Guide Performance Based Contracting Guides – provides guidance on structuring effective incentives

5 The Performance-Based Contract
What are the elements of Performance-Based Contracting? (cont.) In 1997 Rules mandated that PBCs Requirements are structured in a results or outcome oriented manner Positive and/or negative incentives are included Quality Assurance Surveillance Plans are required

6 Other Contracting Rules Require:
What are the Contracting Officers Responsibilities in Performance-Based Contracting? Other Contracting Rules Require: Ensure that performance-based contracting used to the maximum extent practicable. Use contract types that best fits the work and likely to motivate contractors. Use positive or negative performance incentives to the maximum extent practicable. Quality assurance surveillance plan shall contain measurable inspection and acceptance criteria corresponding to the performance standards of the SOW.

7 Get Results! Results Identify incentives that support program and site priorities Project specific Integrated efforts (intra-site or inter-site) Technology Development Infrastructure/Facilities Maintenance Contractor Motivation (fee, more work, Peer recognition, past performance assessments) Incentivize Results! Review lessons learned!

8 Contract Management at Governement Entities
Government Agencies major site and facility contracts are usually long-term and involve a complex mix of sponsors and stakeholders Integrated Team Members Government Contract Management Focus Areas Project Management, change control, baseline management, technology, performance, quality assurance, fee and incentive management, contractor human resources, etc.

9 Key Contract Management Responsibilities and Focus Areas
Ensuring performance of all necessary actions for effective contracting Ensuring compliance with the terms of the contract, Safeguarding the interests of the contractual relationships, Requesting and considering advice of specialists in audit, law, engineering, and other fields, as appropriate, Monitoring Performance, and Enforcing the Government’s rights when necessary.

10 The Contract Management Team
Success Depends on an Integrated Team! Contracting Officer (CO), Project Director, etc. Effective administration of PBCs relies heavily on the integration efforts of groups of people representing many functional areas, customers, and stakeholders Past problems can be traced to lack of an integrated effort in managing contract performance Manage the contract not the people or the process

11 Key Tools of Contract Management
Quality Assurance Surveillance Plan Contract Management Planning Earned Value Management

12 Ensuring the Quality of Performance
QASP Develop early - during the early stages of the RFP (SOW) Tool to evaluate contractor’s performance Provides a structured approach to performing quality inspections and surveillance Establishes frequency and types of inspections Focuses on results - quality and timeliness QASP linked with Performance Evaluation Management Plans (PEMPs) PEMPs establish the performance evaluation process and fee determination process PEMPs may be used to fulfill QASP requirement

13 Contract Management Planning
Why Plan for Contract Management? Challenges by GAO, IG and internal DOE reviews More sophisticated contracting models Performance-based contracting More rigorous contract types, i.e. CPIF DOE Contract Administration Study Little interface between all parties managing the contract Infrastructure/culture not keeping pace with PBCs Lack of “game plan” for managing contracts To develop a “corporate oversight strategy” for ensuring contract success

14 Contract Management Planning
When is a Contract Management Plan (CMP) Required? For all M&O & Major Site and Facility Contracts Contracts subject to Government Regulation Desirable for service contracts that are complex., high risk with a high $$ value How do we develop an effective corporate oversight strategy/CMP? Begin planning during the earliest stages of the RFP preparation Review the contract and identify key governmental responsibilities (equipment, receiverships, etc.)

15 Contract Management Planning
How do we develop an effective corporate oversight strategy/CMP? (cont.) Get input from the contractor to ensure critical areas are identified Identify key contract vulnerabilities or performance risk areas that are inherent in the contract Develop a strategy for managing unique terms and conditions (award term, incentives, etc.) Develop a proactive approach for managing the governmental responsibilities and for mitigating any identified risk areas Formally identify the key contract management team, include their names, responsibilities, authorities and limitations

16 Contract Management Planning
How do we develop an effective corporate oversight strategy/CMP? (cont.) Develop training and guidance to help the culture (infrastructure/people) evolve if site is managing a new contract type (CPIF), Develop an approach for managing the incentive fee arrangements of the contract, and Ensure that other critical focus areas are included - management of contractor litigation, partnering agreements, records management, and other site specific challenges.

17 Contract Management Planning
How can we use the CMP to ensure successful contract performance? Coordinate and solicit input from all staff involved in contract management Conduct a special session with the contractor on the goals and objectives of the CMP and name the individuals (CO, COR, TM, etc.) responsible for its implementation Meet with all concerned parties on a regular basis to address issues Track performance and assess progress against the QASP Address performance risks or deficiencies early Update the CMP as necessary

18 Assessing Contractor Performance
Earned Value Management Contractor use EVM to control cost and schedule performance as well as report progress against the contract DOE uses EVM to: Monitor and verify progress on contract costs and schedule performance Monitor and validate contractor accomplishments on specific fee and PBI incentives Early warning system to identify deficient progress

19 Contract Management Planning
What is the CO - Contracting Officer’s role in EVM? The CO is responsible for ensuring that EVM is a requirement in the RFP (when applicable) After award, the CO is responsible for receiving the contract performance reports, approving changes to the system, and generally ensuring that the system requirements are being met The CO relies on subject matter experts for advice on the integrity of the system The CO is responsible for enforcing the terms of the contract and requesting corrective action as necessary

20 Thanks and Kindest Regards, AAPM

Download ppt "Effective Contract Management Planning"

Similar presentations

Ads by Google