Post Award Contract Administration An Industry Perspective

1. Post Award Contract Administration An Industry Perspective “The Customer Service Model for Effective Contract Administration” (For NCMA-Boston’s March Workshop) David Barr, CPCM Director of Contracts, Procurement & Property The Charles Stark Draper Laboratory, Inc. 16 March 2011

2. AGENDA 1.0 Customer Service Elements 1.1 Focus 1.2 Definitions 2.0 Identifying the Customers 2.1 Internal 2.2 External 3.0 Core Contract Administration Functions 4.0 Examples of Standard T&Cs 5.0 Routine Contract Administration Activities

3. AGENDA (cont’d) 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 Entities 10.2 Audit Activities 11.0 Career Development Suggestions 12.0 Closing Remarks

4. 1.1 Customer Service Focus 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

5. 1.2 Customer Service Means Being: Persistent and Patient Calm and Approachable Flexible and Responsive Consistent and Reliable Pleasant and Attentive Knowledgeable and Professional

6. 1.2 Customer Service Means Being (cont’d): Confident and Creative Proactive and Assertive Willing to go above and beyond expectations Willing to communicate face-to-face as often as possible

7. 2.1 Internal Customers/Departments Program Management Finance and Accounting Legal Internal Audit and Compliance Subcontracts/Procurement Property Control Security Human Resources

8. 2.2 External Customers 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

9. 3.0 Core Functions to Perform 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

10. 3.0 Core Functions to Perform (cont’d) 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

11. 3.0 Core Functions to Perform (cont’d) 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

12. 4.0 Examples of Standard T&C to Administer Limitation of Funds (i.e. 75% letters) Change Orders and Modifications Disputes Resolution ITAR – Export Control Consent to Subcontract Termination for Convenience or Default

13. 4.0 Examples of Standard T&C to Administer (cont’d) 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

14. 5.0 Routine Contract Admin. Activities 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

15. 5.0 Routine Contracts Admin. Activities (cont’d) 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)

16. 5.0 Routine Contracts Admin. Activities (cont’d) 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

17. 6.0 Examples of More Challenging Terms and Conditions Intellectual Property Warranty Indemnification Limitation of Liability

18. 7.0 Keys to Success 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

19. 7.0 Keys to Success (cont’d) 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

20. 8.0 Meeting Management Practices 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

21. 9.0 What to Keep in each Contract File 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

22. 10.1 Work with these Auditing Entities DCMA DCAA SBA Company assigned CPA Firm ISO Consultants Internal Financial and Quality Auditors

23. 10.2 Support these Audit Activities Contractor Purchasing System Review (CPSR) Incurred Cost Audit Small Business Subcontracting Plan Indirect Rate Audits Property Audits

24. 10.2 Support these Audit Activities (cont’d) Sarbanes/Oxley Audits Security Audits Quality Control Audits (IQMS or ISO) A-133 Audits (for Non-Profits)

25. 11.0 Career Development Suggestions 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

26. 11.0 Career Development Suggestions (cont’d) 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

27. 12.0 Closing Remarks 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

28. Questions? Questions?

29. Thank you! 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