Best Practices for Best In Class Contract Management
by Rachel Thomas
Once upon a time, most Government Contracting firms were small. As we all know, growing a business is no small achievement and requires a tremendous amount of perseverance, hard work and a dedicated team focused on delivering exceptional products and services to your customers.
Government Contracting businesses have the potential for substantial growth margins. So, when launching your first-class contracting business, you’ll first want to develop a business plan that captures the following elements:
- Establishment of Policies and Procedures
- Implementation of Adequate Systems
- Well defined Roles and Responsibilities
Be A Visionary
The vision must be clear, concise, and communicated effectively. It’s essential to understand how your vision will help drive the success and the growth of the business.
The Fun Stuff
We all need Policies and Procedures! The purpose of Policies and Procedures are to guide and support effective contract management and administration. We rely on the expertise of our Contract Managers to mitigate risk, effectively negotiate contractual terms and conditions, interpret regulations and advise the internal customers on the best course of action related to the contract requirements. Your policies and procedures should include guidance on how to conduct business on behalf of the organization as it relates to every aspect of the Contract Management lifecycle: Pre-Award, Post- Award, and Close-out. Well written policies and procedures must be implemented so that the contracts organization can maintain a consistent standard of providing exceptional service and support to internal and external customers.
It’s All About the System
It’s necessary to identify Adequate Systems and Tools to assist with the administration and management of all contracts. When deciding on which systems or tools to use, you should consider your approved accounting systems, the number of current and future potential contracts, the end users and your required compliance standards. These systems should allow you to track the contract funding/ceiling value, manage contract awards, modifications, deliverables and Federal Regulations.
A Little R&R
Your contracts organization must understand their roles and responsibilities as a part of their job function. Well defined roles and responsibilities provide clarity and support the vision and the goals of the organization. There is a high value placed on the support and knowledge of your Contracts Manager. Your Contracts Manager is a business partner and should be relied upon to make decisions that protect your organization from risk and issues, support business growth and interface with the customer on behalf of the organization. As your business grows, roles and responsibilities will evolve, and to maintain your success, everyone must always understand the expectations of the organization.
We’re confident that these Best Practices will help you establish a first-class contracts organization. If you’d like information on how to implement these best practices, please contact us!