# Presentation: 525568

## 

Integrating Contract Management and Project Management	

- Integrating Contract Management and Project Management

- Edward Simpson
- Director
- Office of Procurement and Assistance Management

## Why?

- Ensure Project Success
- Get what we bargained for
- On time, within cost
- Award a Contract that
- Motivates the contractor to perform at highest levels
- Clearly establishes requirements, rights, remedies
- Accurately reflects Government’s needs
- Integration between contract management and project management disciplines are critical to successful mission accomplishment
- Integration means bringing together many disciplines and people – project, contracts, finance, legal, cost estimating

## Slide 3

## Critical Success Factors

- Integrated Acquisition Planning
- Rigorous Competition Process
- Integrated Post-Award Contract Management

## When Should Integration Begin?

**Integration between contract management and project management needs to **_**begin**_** at project inception**
**Sets foundation for acquisition strategy development and acquisition, financial, and project planning**
**Issues**
- Definition of project scope – the project scope needs to be defined as the springboard for acquisition planning.
- Realistic/Defensible Government cost/budget estimate - if we don’t have a good initial cost estimate, how do we know we will have sufficient funding and how to develop the budget request?
- What does the market research indicate about potential offerors and industry capabilities?

## Acquisition Planning is Critical to Project Success

**Its all about the Contract!**
**Contract Type**
- Drives contract management and project management process
- The wrong choice can have negative consequences for the Government and contractor
- Consider use of appropriate incentives at key points in the project

## Acquisition Planning   (continued)

**Major Considerations:**
- Requirements
- Schedule
- Alternatives
- Risks
- Government Furnished Services and Information
- Data Packages
- Human Resource Issues
- Pre-award and Contract Administration Resources

## Risk Planning as a Part of  Acquisition Planning

**Appropriately identifying all areas of project risk ensures contractual coverage – i.e. scope, budget, contingency.**
**Make sure the appropriate requirements, rights, and remedies are in the contract to effectively manage relationships.**

## Risk Areas Translate to Contract Requirements 

**Risk Areas Translate to Contract Requirements **

- Performance Requirements
- Mission Changes
- Technology
- Logistics
- Facilities
- Funding
- Regulator Requirements
- Management
- Contract Transition
- Environmental issues
- Workforce/Labor Market
- Government Supplied Property
*(GFP, GFE, GFI)*
- etc...

**Notes:**
This list duplicates some of the risk areas shown on the previous chart but adds more.  Point out that there is no comprehensive list of risks or risk areas, they are program specific and vary greatly between programs.

## Project Design

- Appropriate Project Management Controls – Order 413.3 Requirements/Others
- What should the Government’s role be in design authority and oversight?
- Should DOE be a more active participant in the design process?
- Have we, or can we, effectively manage the inherent conflict of interest in a design/build project?

## COST ESTIMATING

**Recognize the distinction between a budget estimate for CD-0, total project cost estimates, and the contract cost/price.**
**Project Baseline = Contract Price**
**Earned Value Management is key “warning signal” to potential problems.**
**Validated Project Baseline not an option.**
** **
**Contractors play a crucial role in setting the expectations for project cost. **
**Identify the requisite cost estimating skills and expertise for the project that will support the project throughout its life cycle.**

## A Sound Competitive Solicitation is Critical to Project Success	

- Competition as a Tool
- Solicitation sets out the Business Deal
- Evaluation Factors – Key to Choosing the Right Contractor
- Technical Approach/Project Mgt Controls
- Past Performance/Experience
- Key Personnel
- Cost
- Industry Engagement/Communications

## Contract Management Is Critical to Project Success

- Formal Contract Management Plans
- Significant benefit derived when the project managers and contracting officers approach the contract management planning as a collaborative effort.
- Not just a procurement exercise.
- Clear understanding of the roles, responsibilities, and authorities of the players.
- Appropriate identification of Key Project Milestones, Deliverables, Project Management Systems, etc
- Sets the stage for timely decisions/actions

## Post-award Team

- Project Manager, Contracting Officer, Counsel collaboration essential.
- Support Teams and Systems
- Keep the multi-disciplinary approach going - involve contracting officer, project manager, Headquarters program elements, budget, cost estimators.

## Integration & Communication

- Communication is key and the contract is the primary vehicle for communications between the Government and the contractor
- Post-award orientations – make sure Contractor and Government are aligned and managing to same objectives
- Management Information Systems Aligned

## Post-Award Change Control

- Use of appropriate contract procedures and process rigor in implementation of technical and baseline changes - EVMS.
- Timely resolution of Requests for Equitable Adjustments.
- Recognize the difference between a contract change and change to program plans.
- Inappropriate use of change orders when there was no change to a contract term or condition.

## Project Changes

- Contractor and Government management systems need to accumulate data and information relevant to the contract requirements.
- Sound contractor management systems including estimating, accounting, and billing systems and procedures are fundamental to project success.

## QUESTIONS?