7 Tips for Success
Best Practices for Establishing a Best-in-Class Contract Management Function
A new presidential administration augurs impending shifts in budget priorities and a changing enforcement landscape. For federal contractors facing both heightened risk and opportunity, it is more important than ever to treat contract management as a critical cross-organization business function.
Some focused attention on fundamental best practices will help mitigate risk, increase win rates and ultimately, boost profitability.
What can your company do to emulate best-in-class firms?
Tip 1: Perform a Thorough Assessment
Perform a thorough assessment of business practices, compliance obligations and infrastructure, and develop a contract management program that is optimally tailored to the unique characteristics of your organization.
Tip 2: Ensure Some Degree of Centralization
Ensure some degree of centralization for the storage and management of contract documentation. Confirm retention practices align with basic government standards, and organize information for easy access in the event of an audit.
Tip 3: Establish the Appropriate Segregation of Duties
Establish the appropriate segregation of duties between your contract management and sales teams to eliminate potential conflicts of interest and minimize risk to the business.
Tip 4: Document Relevant Business Practices
Document relevant business practices with formal policies and standard operating procedures—making certain that the preventive and detective controls effectively mitigate risk.
Tip 5: Provide Recurring and Targeted Training
Provide recurring and targeted training to contracts personnel to ensure they have and maintain the skillset necessary to succeed in their role(s).
Tip 6: Tailor System(s), Tools and Resources
Tailor system(s), tools and resources to the business, its compliance obligations and contract volumes.
Tip 7: Implement a Process with Defined Metrics
Implement a process with defined metrics to periodically measure the effectiveness of your contract management function and adjust practices, as necessary, to remediate control gaps and enhance efficiency.