Program Management for Contract Managers The Holy Grail of Mission Success

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2 Program Management for Contract Managers The Holy Grail of Mission Success Breakout Session A02 Mr. John Dobriansky MS, MBA, CPCM, Fellow Manager, Contracts, U.S. Navy Mr. Peter Tuttle, CPCM, Fellow Vice President, Strategic Outreach Distributed Solutions, Inc. Date: December 4, 2017 Time: 10:15 to 11:30 am 1

3 Opening How would you characterize your organizations contracting environment? Proactive? Reactive? Majority of organizations - reactive 2

4 Program Management for Contract Managers The Holy Grail of Mission Success Root Causes Poor Program Management Poor requirements Poor contract packages Poor planning Poor communications Lack of trust 3

5 Root Causes continued: Poor Contract Management Poor understanding of marketplace and market place dynamics Poor understanding of services/supplies being acquired Poor understanding of value beyond cost/price 4

6 Root Causes, continued: Poor Contract Management Poor understanding of regulatory flexibility Lack of trust Poorly aligned Contract Management with Program Management 5

7 Bottom-line: Both PM and CM have issues that can only be solved with mutual communication, coordination, cooperation, education and trust 6

8 Why Should You Care? Contracting Officers/Specialists and Program Managers need to effectively collaborate to achieve mission success Contracting is only one step of the entire acquisition process. A more global view puts what you are doing in perspective Successful acquisition is a team sport 7

9 Why Should You Care? The ultimate customer needs what you are procuring You are the one who can provide true value to the customer, the agency and the taxpayer 8

10 Why should you care? The ultimate customer needs what you are procuring You are one who can provide true value to the customer, the agency and the taxpayer 9

11 Important institutional framework The Contract Management Body of Knowledge (CMBOK) version 5 The Program Management Body of Knowledge (PMBOK) version 5 In particular Chapter 12 Procurement Management 10

12 Contract Managers need to know how to use Program Management methods to achieve acquisition success Program Management and Contract Management need to be synchronized using the Integrated Master Schedule A high level of Program Management needs to be in place in your organization for effective planning to achieve mission success 11

13 Critical areas of focus: Risk Management Earned Value Management Marketplace Knowledge Trade off or value analysis (best value) 12

14 Risk Management Plan (RMP): The RMP is a document designed to foresee risks, estimate impacts, and define responses to issues. The are a number of classic responses to risk: Avoid risk Change plans to circumvent the problem; Control/Mitigate risk; Reduce impact or likelihood (or both) through intermediate steps; Accept risk Take the chance of negative impact, eventually budget the cost (e.g. via a contingency budget line); Transfer risk Assign or outsource risk (or a portion of the risk Share risk) to the contractor or third parties that can manage the outcome. What s the value to Contracting Officer: Help determine contract type to reduce or shift risk Help determine evaluation criteria or value Help identify potential post-award performance problem areas and cost overrun areas (focus post-award oversight activities) 13

15 Integrated Master Schedule (IMS): The IMS is made up of "tasks" depicting the work effort needed to complete the requirement. It is a detailed time-driven plan for program execution that helps to ensure on-time delivery dates are achieved. Value to Contracting Officer: Help identify task, or work, interdependencies. Help identify what the Program Office should be tracking. Help determine future workload for contracts on a program. 14

16 Issues Log: Issues will arise during contract performance and a log should be maintained by the Program Office to document and monitor all issues. The log helps to keep track of issues so that they can resolved or escalated by their target date. Helps to reduce that chances that unresolved issues will negatively effect the program. Value to Contracting Officer: See what the issues actually are. Resolve issues before they become a crisis that is handed off to you at the 11 th hour. 15

17 Alignment to achieve success: Your program management organization must be properly aligned with your contract management organization 16

18 Discussion 17

19 Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level 18

20 Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level 19

21 Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level 20

22 Contact Information Mr. John Dobriansky, CPCM, Fellow (571) Peter G. Tuttle, CPCM, Fellow (703)