Subcontract Management - Up To and Including Termination Presented by Tom Reid Chief Problem Solver Certified Contracting Solutions, LLC

Transcription

1 Subcontract Management - Up To and Including Termination Presented by Tom Reid Chief Problem Solver Certified Contracting Solutions, LLC President Subcontract Management Institute Prepared for Baltimore Chapter, NCMA October 7, 2015

2 Subcontracting Issues Supply chain Small Business subcontracting requirements Flow downs Ethics and compliance Differing bodies of law The disputes process The right of termination

3 DEDICATED TO REDUCING PERFORMANCE RISK IN THE EXECUTION OF PUBLICLY- FUNDED CONTRACTS Combines Certification with Qualification Equivalency Training Provider

4 The Subcontract Management Institute ScMI As indicated in the Packard Commission Report (1986), the single greatest risk factor in the acquisition process is the failure of the using activity to adequately define its requirements from the outset. The second greatest risk factor is the failure of the prime contractor to adequately manage its subcontractors with whom the federal government has no privity (no contractual arrangement). Approximately 60-80% of all acquisition dollars are expended with subcontractors. THAT RISK STILL EXISTS UNTIL NOW, THERE WAS NO INDUSTRY STANDARD FOR SUBCONTRACT MANAGEMENT OF PUBLICLY-FUNDED CONTRACTS.

5 Supply Chain Selection process Capabilities Competitive concerns International aspects Buy American Exchange rates; taxes Global economy

6 Small Business Subcontracting Requirements Plan and type Include overhead spend? Compliance Liquidated Damages Past performance Effective administration

7 Flow Downs Required Commercial Item Contract type Duplication and redundancy => ambiguity Subcontractors not well versed in government clauses Unequal bargaining power

8 Ethics and Compliance Responsible; debarred or suspended Bad press; social media TINA; TC&PD Inspection clause Proprietary information and data (esp. among competitors)

9 Differing Bodies of Law Federal Common Law Uniform Commercial Code Federal Court BCA s State Courts

10 The Disputes Process Consistent and fair Expeditious Requires a claim in sum certain Authority of the contracting officer Arising under or related to the contract Requirement to continue performance

11 The Right of Termination In commercial law = breach Limits damages Not a required flow down Fails for lack of consideration Settlement must occur more quickly Treatment of subs part of past performance

12 ScMI CHARTER Managing Subcontracts for Peak Performance The purpose of The Subcontract Management Institute (ScMI ), a non-profit organization, 501c(3), is to: 1. Establish and maintain the Global Standard for Subcontract Management and Administration to include the Subcontract Management Body of Knowledge ; 2. Provide the contractor with knowledge, skills, competencies, tools and techniques to execute subcontracts more effectively, reduce performance risk and deliver value to company shareholders and taxpayers; and 3. Provide organizations and individuals the opportunity to become certified to enhance productivity, profitability and their value proposition. ScMI provides prime and subcontractor personnel with the knowledge, skills, tools and techniques to deliver best value supplies, services and data and reduce performance risk in the execution of publicly-funded contracts. Integrates certification standards with qualification standards.

13 ScMI Leadership Dan Jacobs, Chairman - Chairman/CEO, The Federal Market Group (FMG); Past National President NCMA; Chairman Emeritus, Contract Management Institute (CMI); Director, Procurement Round Table (PRT); NCMA Board of Advisors Lenn Vincent, Vice Chairman - RADM USN (RET); Industry Chair, DAU; Past National President NCMA; Director, Procurement Round Table (PRT); Formerly Commander, Defense Contract Management Command (DCMC); Formerly Commandant, Defense Systems Management College (DSMC); NCMA Board of Advisors Tom Reid, President - President, Certified Contracting Solutions, Member NCMA, former member, Board of Directors, NCMA Vic Avetissian, VP/Treasurer - President, Avetissian & Associates; Formerly Director of Pricing and Government Policy, Northrop Grumman; Past National President NCMA, Former Chairman, Contract Management Institute (CMI); NCMA Board of Advisors;, ScMI Director of Marketing West Coast Bonnie Ross, VP /Secretary/Chief Marketing Officer - Managing Partner Capture Strategies, The Federal Market Group; Registered Lobbyist, Member NCMA Alan Boykin, VP/Chief Learning Officer - President, PACE, Inc., Formerly Chief Learning Officer, NCMA

14 ScMI Board of Trustees Frank Anderson, Trustee - BG, USAF (RET); President, Strategic Public Sector Solutions, LLC; Formerly President, Defense Acquisition University; Deputy Assistant Secretary for Contracting, Office of the Assistant Secretary for Acquisition, and Air Force Competition Advocate General; Director, Procurement Round Table (PRT); NCMA Board of Advisors Robert Burton, Trustee - Partner, Venable Law; Formerly, Administrator, The Office of Federal Procurement Policy (OFPP); Director, Procurement Round Table (PRT); NCMA Board of Advisors Fred Bowen, Trustee - President, Bowen & Associates; Formerly Head of NASA Office, Jet Propulsion Laboratory (JPL), Past Chairman, NCMA Board of Advisors John Etherton, Trustee - President, Etherton and Associates, Inc.; Former Professional Staff Member, Committee on Armed Services, United States Senate, and member of the Acquisition Advisory Panel ("SARA Panel"); Senior Fellow for Acquisition Reform at the National Defense Industrial Association; Director, Procurement Round Table. Frank Rapoport, Trustee - Senior Partner and a leader in Peckar & Abramson s Public- Private Partnerships practice group, NCMA Board of Advisors Karen Wilson, Trustee Counsel, Boeing Corporation; former Certified Contracting president Solutions, NCMA LLC

15 ScMI FACTS Established and maintains the Subcontract Management Body of Knowledge (ScMBOK ) Developed and delivers Subcontract Management Certification Program (ScMCP ) for Subcontract Managers (SCM) and Technical Representatives (TR) Certification only when candidate has demonstrated they are Qualified; combines online, classroom and experiential Training Online Toolbox, Desktop Reference Guide, Performance Support Tools Program recommended by DOD and State Department to the Commission on Wartime Contracting as a best practice Program briefed to heads of DCMA and DCAA; supports outreach Representation in DC, Denver, Los Angeles, Seattle, Brussels, Tel Aviv

16 ScMCP BENEFITS to GOVERNMENT Reduces Performance Risk and Contract Costs Facilitates Best Value Source Selection Standardizes Criteria for Subcontract Key Personnel and Organizations Supports DCMA/DCAA Outreach Enhances Small Business Subcontracting Practices and Outcomes Addresses Contingency Contracting Provides Community of Practice and Forum on Subcontracts Best Practices Improves Compliance - Reduces Risk - Enhances Reliability

17 Reduces Performance Risk Enhances Profitability Enhances Value Proposition ScMCP BENEFITS to INDUSTRY Facilitates Win Rates for Best Value Source Selections Standardizes Key Personnel Criteria for Subcontract Management Personnel & Provides Career Path Demonstrates Management Appreciation of the Personnel and the Function Enhances Small Business Subcontracting Outcomes Facilitates Contingency Contracting Provides Community of Practice for Forum on Subcontracts Best Practice Improves Communications Reduces Risk Repeatable Processes

18

19 Certified Contracting Solutions LLC Presents this FREE RESOURSE

20