Breakout Session # 505 Joel P. McMains and Joan Wysoske, Contract Administration,

1. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

2. Out With the Old and In With the New! The Challenges of Simultaneous Contract Transitions Breakout Session # 505 Joel P. McMains and Joan Wysoske, Contract Administration, Humana Military Healthcare Services, Inc. April 27, 2004 11:00 am – 12:00 pm NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

3. Transition In • Very positive, lots of energy • Challenges • Identify obligations • Meet deadlines • Hire and train new people NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

4. Transition Out • An ending • People looking for next assignment • Staff may or may not be out of a job when activities are completed • Close Out Activities are not fascinating • Less energy • Less interest NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

5. Simultaneous Transition • Combination is geometrically more difficult. • More challenges NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

6. Interfaces Challenges • Each element is so interdependent NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

7. Examples of Challenges • Two contracts • 7th and 9th year of operation • 3.5 M lives in 15 states • New contract • 2.8 M lives in 10 states • Skills mix necessary quite different NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

8. One stop shopping for customer service Many phone calls or walk-ins met with nurses. 2 contract types SOW Based Many national contracts for services Different skills for services to be provided. 5 contract types Performance Based Old v. New NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

9. Simultaneous Transitioning - Out • Must vacate TRICARE Service Centers • Provide Services from centralized locations • Maintain Service Levels • Retain qualified employees to last day NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

10. Simultaneous Transition - In • Hire and train qualified staff • Set up locations with equipment • Obtain Certifications of physical security and authority to operate NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

11. Continuity of Services • FAR 52.237-3 …Some services are vital to the Government and must be continued without interruption and that, upon contract expiration, a successor, either the Government or another contractor, may continue them. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

12. Continuity of Services • Requests to bridge some services that are “going away” • Difficult as we transition to new duties • Challenge “continue as is” under new contract • Adjustment to new duties and responsibilities while still continuing others. • Impact on personnel end dates NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

13. Contractual necessities • FAR Part 4 • Records Management (FAR 4.8) • Settle Outstanding Change Orders, Claims and Disputes • Coordinate funding and deobligate $ where possible • Make final payment NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

14. Transition of Records • Claims records • Case management files • Pre Authorizations • Private Health Information (PHI) Authorizations NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

15. Personnel • Required lead time for notification letters • Severance packages • Retention packages NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

16. Personnel • Necessity to retain them; while giving them opportunity for future employment with new contractor. • Having them available for training while maintaining service levels. • At locations that stay the same, the skills mix change. NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

17. Tracking Tools NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

18. Tracking Tools • Top Level • Keeps the nits from being tracked • Does generate questions. • Into the Weeds • The more detail provided the fewer questions generated. • Too much time updating, taking away from actual accomplishments of actions NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

19. Communication and Monitoring • Each customer and supplier must have their needs met • The incoming and outgoing interrelationships are complex and changing • Assure dependent dates are not missed NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

20. Each miss causes others problems NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

21. Conclusion • Keep Talking and Monitoring • Understand the interdependency • Understand the personnel impact • Keep relationships honest and truthful • Act in Good Faith NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”

22. Questions? • Joel McMains, CPCM, Fellow • Director, Contract Administration, • jmcmains@humana.com • 502-580-3233 • Joan Wysoske, CPCM, Fellow • Director, Change Orders • jwysoske@humana.com • 502-580-3243 NCMA World Congress 2004 “Maximizing Value to Stakeholders…Contract Management in the Business World”