Decline Contract

							Value-Added Contract
Management: Earning Trust &
Bringing Value
Breakout Session #304
Po Collins, CPCM, C.P.M, Fellow
  Raytheon Company, Senior Manager, Contracts
Holly Friedrich, CPCM, Fellow
  DCMA Contracts Field Support Representative


15 April 2008


                                                2
Agenda


• Early Involvement
• Constructing Relationships
• Expanding Our Reach




                               3
Early Involvement

• More Than Terms and Conditions
• Understanding the Effort
• Contract Structure
• Protecting Information
• Payment and Financing


                                   4
Early Involvement:
More Than Terms and Conditions
•   Risk & Opportunity Assessments
•   Evaluating New Markets
•   Collaborative Partnerships
•   Mergers and Acquisitions
•   Offer Innovative Solutions
    – Reward creativity & innovation
    – Expand business acumen education
    – Use tools to assess risk & opportunity from a CM perspective
• “Just Say No” Is Not an Option!


                                                                     5
Early Involvement:
Understanding the Effort
• Decline of sole-source DoD business
• End-to-end solutions
• Risk management
• Clear work definition
• Internal approvals
• Negotiations

                                        6
Early Involvement:
Contract Structure
• Investor expectations are rising, including
  higher ROIC
• Selecting contract types
   – Unique Obligations
• Statements of Work
   – Clear work definition
   – Clear exit criteria
• Regulatory requirements

                                                7
Early Involvement:
Protecting Information
• Proprietary Agreements
• Export/Import Licensing
• Technical Assistance Agreements
• Data Rights Allow Customer
  Performance


                                    8
Early Involvement:
Payment and Financing
• Contract financing terms
• Funding and color of money
• Delivery and acceptance
• Payment process



                               9
Constructing Relationships

• How Contracts Fits
• IPT Structure
• Declining Workforce
• Multi-tasking



                             10
Constructing Relationships:
How Contracts Fits
• More Complex Partnerships
  –   Teaming
  –   Collaborative
  –   Partnerships
  –   Joint Ventures
  –   Mergers & acquisitions
• Improve Relationships
  – Cultivate customer relationships
• Authority to Commit
                                       11
Constructing Relationships:
IPT Structure
• Embrace Creative Solutions
• Look for Synergy between Disciplines
• Integrated Product Teams (IPTs)
• IPT Shortcomings



                                         12
Constructing Relationships:
IPT Structure
                              Director


                       Program Manager



   System       Production/               Engineering   Engineering
 Engineering    Operations                 Services



 Supply Chain     Quality                   MPM            Finance



                              Contracts




                                                                      13
Constructing Relationships:
Government Program Team
 Procurement Contracting
                                                                                          Program Manager
         Officer

                                                    DCMA
                                               Program Integrator



          Administrative Contracting Officer




                                                                            Engineering




                                                                           Manufacturing




                                                                         Quality Assurance



                                                                    Other Functional Specialties




                                                                                                            14
Constructing Relationships:
Declining Workforce
• War for Talent Is Intensifying
• If You Build It, They Will Come…and Stay
• Develop, Attract & Retain Talent
  –   Continuous learning
  –   Develop new competencies
  –   Effective use of technology
  –   Streamlined processes
  –   Empowered professionals
  –   Required training

                                             15
Constructing Relationships:
Multi-Tasking
• Talent needs are changing: New skill sets
• Stronger bench and people with multi-functional skills
  needed
   – Very strong verbal and written communications skills
   – Routinely interact with internal and external customers and
     demonstrate discretion and excellent judgment
   – Develop and sustain customer relationships
   – Positive can-do attitude
   – Effectively interface at all levels of the business area
   – Team player


                                                                   16
Constructing Relationships:
Multi-Tasking, continued
• Stronger bench and people with multi-functional skills
  needed
   – Critical thinker and problem solver
   – Sound judgment
   – Effectively establish and maintain internal and external customer
     relationships
   – Proficient in common office software applications (Word, Excel
     and PowerPoint)
   – Detail-oriented
   – Extremely well-organized


                                                                     17
Expanding Our Reach

• Ensuring Compliance
• Recognizing Change
• Effective Performance Measurement




                                      18
Expanding our Reach:
Ensuring Compliance

• Laws
• Regulations
• Internal policies/procedures




                                 19
Expanding our Reach:
Recognizing Change
• Must anticipate change
• Changing Marketplace
   – Decline of sole-source DoD business
   – Customers demand rapid, flexible, and innovative solutions
   – Need to provide end-to-end solutions:
     Funding…development…customer support Investor
     expectations are rising, including higher ROIC
• Changing contract requirements
   – Participate in Technical Meetings



                                                                  20
Expanding our Reach:
Effective Performance Measurement
•   Export license cycle time
•   Negotiated profit
•   Bookings
•   IDIQ awards
•   Overaged undefinitized contracts
•   Delinquent invoices and payments
•   Prompt contract closure

                                       21
Summary
Engage early
• Become a valued team member
• Understand ALL contract requirements
• Contract Management requires you to…
  –   Communicate
  –   Certify
  –   Comply
  –   Change (Manage)
  –   Close-out

                                         22
Questions




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