INNOVATIONS IN ENGINEERING INNOVATIONS IN ENGINEERING

Post Award Contract Administration An Industry Perspective

“The Customer Service Model for Effective Contract Administration”

(For NCMA-Boston’s March Workshop)

David Barr, CPCMDirector of Contracts, Procurement & PropertyThe Charles Stark Draper Laboratory, Inc. 16 March 2011

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1.0 Customer Service Elements

1.1 Focus1.2 Definitions

2.0 Identifying the Customers

2.1 Internal2.2 External

3.0 Core Contract Administration Functions

4.0 Examples of Standard T&Cs

5.0 Routine Contract Administration Activities

AGENDA

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6.0 Example of more challenging T&Cs

7.0 Keys to Successful Contract Administration

8.0 Meeting Management Practices

9.0 The Contracts File

10.0 Audits

10.1 Audit Entities10.2 Audit Activities

11.0 Career Development Suggestions

12.0 Closing Remarks

AGENDA (cont’d)

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Effective Contract Administration begins with a Customer Service mindset

The Contract Administrator is in the business of providing Customer Service

Contract Administrators have many customers with different priorities and needs

Contract Administrators advise and assist their customers Contract Administrators translate and share information

with their customers Contract Administrators bridge communication gaps and

solve problems

1.1 Customer Service Focus

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Persistent and Patient Calm and Approachable Flexible and Responsive Consistent and Reliable Pleasant and Attentive Knowledgeable and Professional

1.2 Customer Service Means Being:

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Confident and Creative Proactive and Assertive Willing to go above and beyond expectations Willing to communicate face-to-face as often as

possible

1.2 Customer Service Means Being (cont’d):

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Program Management Finance and Accounting Legal Internal Audit and Compliance Subcontracts/Procurement Property Control Security Human Resources

2.1 Internal Customers/Departments

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The Contracts counterpart at the customer/sponsor location (PCO/ACO)

The cognizant DCMA Representative The cognizant DCAA Representative The sponsor COTR The end user of the company’s product or service

2.2 External Customers

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Serve as primary point of contact with the Contracting Officer (ACO/PCO)

Develop and implement the Contract Administration Plan for each contract

Monitor and administer company compliance with contract terms and conditions

Monitor and administer company compliance with its own policies and procedures

3.0 Core Functions to Perform

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Set up the contract in the contracts module of company enterprise accounting system

Maintain the Contract File and all contract related correspondences

Represent the company in negotiations Maintain proficiency with the FAR, DFAR and Agency

Supplements

3.0 Core Functions to Perform (cont’d)

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Interpret contract provisions for company personnel Stay current on changes to Government Contract

laws, statutes and regulations Attend and support monthly or quarterly program

review meetings Work with Subcontracts Department to assure proper

flow down provisions are included in Subcontract Agreements

3.0 Core Functions to Perform (cont’d)

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Limitation of Funds (i.e. 75% letters) Change Orders and Modifications Disputes Resolution ITAR – Export Control Consent to Subcontract Termination for Convenience or Default

4.0 Examples of Standard T&C to Administer

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Process Stop Work Orders Key Personnel Clause EEO Compliance Reporting Service Contract Act Compliance U.S. Flag Air Carrier Clause Organizational Conflict of Interest Inspection and Acceptance Terms

4.0 Examples of Standard T&C to Administer (cont’d)

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Make sure all costs charged to the contract are allowable and billable

Make sure Program does not overrun Prepare Contract Summary/Synopsis/Brief for each

Contract Prepare Contract Administration Plan for each

contract Prepare Transmittal Letters for Deliverables

5.0 Routine Contract Admin. Activities

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Change in Key Personnel Notification Negotiation of Award Fee or Incentive Fee Negotiate Contract Modifications Requests for Release of Public Information Maintain and Update the Central Contractor Register

(CCR)

5.0 Routine Contracts Admin. Activities (cont’d)

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Maintain and Update ORCA Respond to CPARs Work with F&A on billing and collection matters Provide timely Patent Disclosure Notification Prepare Contract Close-Out documentation

5.0 Routine Contracts Admin. Activities (cont’d)

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Intellectual Property Warranty Indemnification Limitation of Liability

6.0 Examples of More Challenging Terms and Conditions

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Establish a strong working relationship with Program Manager, PCO, and ACO

Educate, Educate, Educate – first yourself, then those you support and your peers

Communicate, Communicate, Communicate – up, down and across organizations, inside and outside the company

7.0 Keys to Success

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Know who the key stakeholders are and keep them informed

Obtain buy-in from key internal stakeholders on sensitive issues before presenting to external stakeholders

Deliver on Promises – Meet Deadlines

7.0 Keys to Success (cont’d)

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Accept that meetings are a necessary evil Be prepared for lots of meetings Prepare and stick to an agenda Know who to invite, and who not to invite Keep meeting short and on task After a meeting send out meeting minutes with action

items Tenaciously follow-up and bring issues to closure

8.0 Meeting Management Practices

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The fully executed Contract and all Modifications Contract Briefing/Synopsis of overall contract Contract Administration Plan Cost, Technical and Management Proposal Basis of Estimate (BOE) and Negotiation

Memorandum RFP and all Amendments Key internal and external correspondences

9.0 What to Keep in each Contract File

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DCMA DCAA SBA Company assigned CPA Firm ISO Consultants Internal Financial and Quality Auditors

10.1 Work with these Auditing Entities

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Contractor Purchasing System Review (CPSR) Incurred Cost Audit Small Business Subcontracting Plan Indirect Rate Audits Property Audits

10.2 Support these Audit Activities

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Sarbanes/Oxley Audits Security Audits Quality Control Audits (IQMS or ISO) A-133 Audits (for Non-Profits)

10.2 Support these Audit Activities (cont’d)

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Join NCMA today Regularly attend NCMA monthly events Volunteer to help at an NCMA event Obtain NCMA Professional Certification Read the NCMA Monthly Magazine Attend Contract Courses Develop public speaking skills

11.0 Career Development Suggestions

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Build a professional network of mentors and colleagues

Develop collaboration skills Maintain a thirst for knowledge Develop a tolerance for ambiguity Understand at a very top level your peer’s

role/responsibility Maintain a Healthy Lifestyle – this job takes a lot of

energy and commitment

11.0 Career Development Suggestions (cont’d)

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RECONGNIZE YOUR CONTRIBUTION MAKES A HUGE DIFFERENCE!

Strive for Excellence in Customer Service Don’t get overwhelmed with body of knowledge to

learn Don’t get overwhelmed with the number or variety of

tasks to perform Stick with it - you are in a high demand career field Take charge of your career Enjoy the ride Contact me

12.0 Closing Remarks

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Questions?

Questions?

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Thank you!

David G. Barr

Director, Contracts, Procurement and Property

The Charles Stark Draper Laboratory, Inc.

555 Technology Square, Cambridge, MA 02139-3563

Phone: 617-258-3135

Email: dbarr@draper.com

Thank you!

16 March 2011