A Baker Tilly Survey of Best Practices in Federal Contract Management

The CM Benchmarks Report

One thing is certain in today's ever-changing regulatory environment: A well-executed contract management function is a difference maker—helping to reduce risk and win business.

92%
of survey respondents agreed:
Effective contract management is essential to their organizations' success
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Key Findings

  • Training
    Training
  • Tools
    Tools
  • Structure
    Structure
  • Policies
    Policies
50%
of government contracting professionals receive formal training

Robust training programs lead to higher win rates and lower risk

Training is a critical element in the contract management toolbox. It can greatly affect an organization's ability to identify and mitigate compliance risks. There seems to be a correlation between companies that offer robust training programs and higher win rates.

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60%
of government contractors use Microsoft Excel in place of more sophisticated tools to track and manage contracts

Leverage systems to automate processes where possible

Relying on Microsoft Excel, SharePoint or other similar programs that lack the data capture, sharing, version control and process-flow capabilities of more sophisticated systems can result in serious compliance issues. In an age where data is king, these major needs should drive decision-making.

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89%
of government contractors have a centralized contract management department with responsibilities contained within

Consider multiple factors when deciding whether or not to centralize your CM function

Some companies find success managing their contracts through a centralized department, while others do well remaining decentralized. At a minimum, best practice is to centralize storage of contract documentation.

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40%
of government contractors have policies that are inconsistently applied, not formally documented or non-existent

Formally document and enforce comprehensive standard operating procedures

Regardless of industry or size, organizations that formalize and mandate well-thought-out controls—including standardization policies and procedures and IT infrastructure—eliminate potential conflicts of interest and minimize risk to business.

Download Report >

Key Findings

Training
Training
50%
of government contracting professionals receive formal training

Robust training programs lead to higher win rates and lower risk

Training is a critical element in the contract management toolbox. It can greatly affect an organization's ability to identify and mitigate compliance risks. There seems to be a correlation between companies that offer robust training programs and higher win rates.

Download Report >

Tools
Tools
60%
of government contractors use Microsoft Excel in place of more sophisticated tools to track and manage contracts

Leverage systems to automate processes where possible

Relying on Microsoft Excel, SharePoint or other similar programs that lack the data capture, sharing, version control and process-flow capabilities of more sophisticated systems can result in serious compliance issues. In an age where data is king, these major needs should drive decision-making.

Download Report >

Structure
Structure
89%
of government contractors have a centralized contract management department with responsibilities contained within

Consider multiple factors when deciding whether or not to centralize your CM function

Some companies find success managing their contracts through a centralized department, while others do well remaining decentralized. At a minimum, best practice is to centralize storage of contract documentation.

Download Report >

Policies
Policies
40%
of government contractors have policies that are inconsistently applied, not formally documented or non-existent

Formally document and enforce comprehensive standard operating procedures

Regardless of industry or size, organizations that formalize and mandate well-thought-out controls—including standardization policies and procedures and IT infrastructure—eliminate potential conflicts of interest and minimize risk to business.

Download Report >

Trends and Best Practices in Federal Contract Management

With a new administration and shifting budget priorities, federal contractors must be adaptable to protecting profits amid margin-squeezing initiatives.

In conjunction with the release of The CM Benchmarks Report, Baker Tilly teamed with Bloomberg Government and presented a 60-minute webinar on key trends, benchmarks and best practices that companies should be mindful of as 2017 continues to unfold.

The demand for increased transparency and accountability presents a challenge for businesses looking to strike a balance between comprehensive contract management practices and cost-effectiveness. This report offers benchmarks and best practices to help federal contractors establish a best-in-class contract management function.

— Bill Bressette, Principal

Government Contractor Advisory Services Practice Leader

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Report Inquiries

Bill Bressette
703 923 8624

Media Inquiries

Ariel Bendorf
703 923 8259