The Evolving Face of the Acquisition Workforce: Building Valued Business Advisors & Leaders
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2 The Evolving Face of the Acquisition Workforce: Building Valued Business Advisors & Leaders Breakout Session #: D02 Zelalem Alemayehu, Robbyn Coleman, Beth Thanos, & Sheila Wright Grant Thornton Date: Tuesday, July 26 Time: 11:15am 12:30pm 1
3 INTRODUCTION MEET YOUR PRESENTERS: Zelalem Alemayehu, CFCM Robbyn Coleman, CFCM Beth Thanos, CFCM Sheila Wright, JD, CPCM, PMP 2
4 The Contracts Professional Then and Now Contracts Profession was seen mostly as "Administrative" in nature: Processed Documents Obtained signatures for contractual agreements Maintained Contract files "Paper Pushers" 3
5 The Contracts Professional Then and Now Over last years, the profession has evolved into a more advisory role It has changed in other ways as well made evident by the NCMA Salary Surveys over the past 10 years: For instance, College Degrees: Those without one has dropped from 14% 6% Those without professional certifications has dropped by 5% 4
6 The Contracts Professional Then and Now Education 40% - highest degree was a Master's 46% - highest degree was a Master's 5
7 The Contracts Professional Then and Now Certifications % had one or more certification Most common = DAWAI Level III % had one or more certification Most common = CFCM 6
8 The Contracts Professional Then and Now Certifications Broad range of certifications obtained by contracting professionals ranging from: CFCM, CPCM, CCCM, ICCM D, ICCM F To more in depth training in technical areas, such as: PMP, PgMP, PMI-RMP, PMI-PBA, PMI-SP 7
9 What is the Current Atmosphere of the Contracting World? Baby Boomers Gen X Millennials In 2006, 61% of the respondents were 45 or older In 2014, 70% of the respondents were 45 or older This compared with those younger than 35 In 2006, 14% of the respondents were 35 or younger In 2014, 21% of the respondents were 35 or younger 8
10 What we do know about the Millennials? Having an affinity for the digital world Tend to be wary of strict corporate structure Are seeking more challenging and flexible work environments Expect rapid career growth, a varied & interesting career and frequent feedback Want a career to meet their high ambition level and their desire to keep learning 9
11 WHAT SHOULD WE BE DOING? 10
12 PERSPECTIVE If it's your organization how do you begin? Current or New Position? Who is your Boss? Who is on your staff? How do you engage? 11
13 What kind of boss do you have on this spectrum? Old School Visionary 12
14 Grant Thornton Carlos Otal, Managing Partner 13
15 Internal Survey Getting the pulse of people we support Be proactive what is working? Are there any areas that are lacking adequate support? 14
16 Internal Survey What do you like/appreciate about the Contracts Department? The ability to respond quickly when questions arise. I also appreciate there continued follow up when we are awaiting responses from clients. 15
17 How do you engage your staff.thoughts and ideas? 16
18 Contracts Managers/Administrators perspective What is Contract Management? Why? Key Items of Consideration 17
19 Contracts Managers/Administrators perspective What is Contract Management? Responsibilities of Contract Managers are broad. Drafting, Evaluation, Negotiation and Execution, record keeping, training, etc. Contract Management is not just a document management solution Emphasis within this list will vary from one organization to the other 18
20 Why? Contract management function is a core-competency in both the private and public sector, Studies indicate that approximately 10% of the contracts are lost, regardless of the industry, as a result of a failure in contractual management. The cost of improper contract management far outweighs the cost of doing it right Major differences between organizations lies in: The extent of authority & accountability that contract personnel have, The extent of participation in overall the company policy and contractual strategy Do they advocate change? Do participate in key policy discussions? 19
21 Contracts Managers/Administrators perspective Best practice is being holistically responsible for the contracting process (pre- and postaward) Increasingly involved in establishing contracting policies that support market and business strategy 20
22 Risk advisement Key Items of Consideration Risk Management: the ability to efficiently and cost effectively mitigate potential problems Failure to comply with your contractual obligations result Disappointment to your customers Exposes you to claims of breach Seriously damage your brand The Remedy: Risk mitigation planning and cost-effective implementation The focus of contract professionals should be working with your counterpart to reduce or eliminate risk probability rather than battling over risk allocation 21
23 Key Items of Consideration Government agencies and contractors should develop a comprehensive or holistic approach to risk management that is focused on efficient process that would create better performance and with less cost. No-Risk = expensive management, slowed growth and reduced collaboration, All-Risk = high legal bills, poor business base, potential business shut down, etc. Best practice is balancing risk-tolerance with business growth objectives while minimizing administrative cost. 22
24 Key Items of Consideration Organizational Conflict of Interest (OCI) Unable or potentially unable to render impartial assistance or advice. OCI violation a basis to overturn an award decision. Best practice (As detailed in FAR 9.504) o Identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible o Avoid, neutralize, or mitigate significant potential conflicts before contract award. 23
25 Key Items of Consideration Small Business goals Statutory Requirements - FAR Any contractor receiving a contract or Contract modification that individually expected to exceed $700,000 ($1.5 million for construction) must agree: To provide maximum opportunity to SB, VOSB, SDVOSB, HUBZone SB, SDB, WOSB, To submit an acceptable subcontracting plan. 24
26 Key Items of Consideration Purpose: to ensure that small businesses get their fair share of work with the federal government. Any contractor or subcontractor failing to comply in good faith with the requirements - material breach of its contract resulting imposition of liquidated damages 25
27 Best Practice is to develop and promote company/division policy statements that demonstrate the support for awarding contracts and subcontracts to small businesses Monitor company s performance and make any adjustments necessary Document reasons for the inability to meet subcontract goals Develop and maintain database of small business 26
28 Collaborative effort With Various Teams Program Management Team Should participate and take active role in the makeor-buy decisions Participate in Bid/No-bid discussions Finance Team Avoid revenue loss - working with Finance Poor management of contracts can lead to significant loss of revenue Poor tracking of price, payment and renewal annual price adjustments 27
29 Recruiting It is a team effort - everyone is a 'recruiter' for the industry, for our clients and customers Building a pipeline of candidates The goal is attracting and retaining talent, providing improved job satisfaction and making this a career of choice for the most talented applicant High employee turnover costs business We must ensure our LCATs in our contracts are properly staffed 28
30 Training Contract management function has now became corecompetency in both the private and public sector Therefore, today s contract professional must have the appropriate education and skills necessary to manage various types of contracts It is important to arrange or conduct training on varied Contract/Subcontract matters Document training and attendance for SBA and internal review 29
31 You only have one chance to make a first impression!! 30
32 Key Focus Areas Technical Skills Soft Skills 31
33 Grant Thornton Carlos Otal, Managing Partner 32
34 Key Focus Areas Attitude Proactive Communication Adaptability Timeliness/Responsiveness Behavioral Style Quadrants 33
35 Grant Thornton Carlos Otal, Managing Partner 34
36 Creative Workforce Planning Thinking outside the box more than just a catch phrase Workforce Structure What comes first? The chicken or the egg Staggering your workforce Skill set How and what do you need to get it approved 35
37 Creative Workforce Planning Employee retention The number one rule Employee morale initiatives Work/life balance Flexibility Positive Working Environment Training Communication CASE STUDY 36
38 Conclusion 37
39 Who We Are Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd (GTIL), one of the world s leading organizations of independent audit, tax and advisory firms. Through member firms in 113 countries, including over 50 offices in the United States, Grant Thornton partners and employees provide personalized attention and the highest quality service to clients around the globe. Our Global Public Sector (GPS), based in Alexandria, Virginia, is a global management consulting practice providing responsive and innovative solutions to government and international organizations. GPS consists of over 600 professionals with certified subject matter experts in strategic planning, financial management, acquisition management, business and process transformation, performance measurement, and project management. Financial Management & Assurance Performance Transformation Information Technology Decision Analytics Governance, Risk and Compliance Financial Management Operations Transaction Valuation Services Audit and Attest Services Information Assurance Audit Readiness/Remediation Strategy and Organizational Transformation Budget and Planning Performance Measurement and Management Business Process Improvement Acquisition Management Human Capital Management IT Program and Project Management Office IT Strategy and Governance Data Management and Analysis Cybersecurity and Information Assurance Systems Development and Sustainment Applied Analytics Spend Analysis Vendor Management Post-Contract Accountability Cost and Performance Analytics Financial Business Analytics 38
40 Contact Information 39
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