Month: November 2016

Best practices of various phases of contract management

sourcing, 

pre-qualificatin,

procurement planning,

Best practices in procurement planning include the use of outsourcing analysis to assess contract risks and market research to identify supplier capabilities, as well as determine industry practices for describing the requirement and determining contract type.  Early supplier involvement though the use of pre-solicitation conferences and industry benchmarking are also considered best practices.

Solicitation Planning

Best practices in solicitation planning include using cross-functional teams for developing solicitations, and identifying contract risks.  The use of Statements of Objectives (SOO) and Performance-based Statements of Work (SOW) are also considered best practices.

solicitation,

Best practices in the solicitation phase include using web-based and other paperless solicitation processes, as well as using draft solicitations as a source industry feedback.

source selection,

Best practices in the source selection phase include using a formal source selection organization with trained and experienced cross-functional proposal evaluation teams, using a weighting system to prioritize the evaluation criteria and using a disciplined approach to following the evaluation criteria stated in the solicitation.  Additional best practices include obtaining independent cost estimates to assist in evaluation supplier proposals, and conducting a price realism analysis on each supplier proposal.  

contract administration,

Best practices in the contract administration phase include using a formal contract administration methodology with trained and experienced cross-functional team members competent in contractor performance measurement.  Additional best practices for the contract administration phase include using an integrated performance evaluation method and establishing a contract change control process. 

Contract Close-out Best practices in the contract closeout phase include designating and empowering a formal contract closeout team, using contract closeout checklists, and documenting contracting lessons learned and best practices. 

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Phases of contract management

The overall function of contract management includes various phases which are;

Procurement Planning: This involves the process of identifying which business needs can be best met by procuring products or services outside the organization.  This process involves determining whether to procure, how to procure, what to procure, how much to procure, and when to procure (Garrett & Rendon, 2005). 

2.  Solicitation Planning involves the process of preparing the documents needed to support the solicitation.  This process involves documenting program requirements and identifying potential sources (Garrett & Rendon, 2005).

3.  Solicitation is the process of obtaining information (bids and proposals) from the prospective sellers on how project needs can be met (Garrett & Rendon, 2005). 

4.  Source Selection is the process of receiving bids or proposals and applying the proposal evaluation criteria to select a supplier (Garrett & Rendon, 2005).  The source selection process includes the contract negotiations between the buyer and the seller in attempting to come to agreement on all aspects of the contract, to include cost, schedule, performance, terms and conditions, and anything else related to the contracted effort.

5.  Contract Administration is the process of ensuring that each party’s performance meets the contractual requirements (Garrett & Rendon, 2005). 6.  Contract Closeout is the process of verifying that all administrative matters are concluded on a contract that is otherwise physically complete (Garrett & Rendon, 2005).

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