Contract Administration‚ People‚

Part 1:
Processes‚

and

Best

Practices

B Y G r e g o ry A . Ga r r e tt

52 Contract Management | February 2010

 It is vitally

important to have

the right people

and processes in

place to manage

the growing

number‚ value‚

and complexity of

U.S. government

contracts.

Contract Management | February 2010 53

 Contract Administration, Part 1: People, Processes, and Best Practices

For more than three decades‚ U.S.

government reviews‚ assessments‚

and audits conducted by numerous

agencies—including the Government

Accountability Office‚ Office of

Management and Budget‚ and the

Defense Contract Audit Agency—

have indicated the real and

compelling need for improved post-

award contract administration by

government and industry.

In both the public and private business sectors, contract administra-
tion is often an afterthought and is usually insufficiently staffed
in both the quality and quantity of resources (contract managers,
project managers, technical managers, property managers, supply
chain/subcontract managers, etc.). Typically, government and
industry focus their time, attention, and key resources on soliciting,
proposing, negotiating, and forming the contract—simply put, “get-
ting the deal.” As a result, there are often very limited resources to
manage, administer, and closeout the deal.
While project management and earned value management have
received significant focus and attention in recent years for the value-
added capabilities they can provide, few organizations have paid
much attention to post-award contract administration and closeout
activities, which are equally vital to business success. In this three-
part series of articles, we will focus on the importance of having the
right people and processes in place to manage the growing number,
value, and complexity of contracts to ensure U.S. government agen-
cies are able to obtain quality products, services, and/or solutions
from government prime contractors and subcontractors.

54 Contract Management | February 2010

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 Contract Administration, Part 1: People, Processes, and Best Practices

FIGURE 1.

ƒƒ Rising healthcare costs, and

Total amount spent on federal contracts
(billions of dollars) ƒƒ Economic recovery expenses due to recession.

$550 Since the start of the Barack Obama administration,

$500 government spending has gone to even higher levels,
including the new $787 billion American Recovery
$450
and Reinvestment Act (ARRA, Public Law 111-5),
$400 which contains over $500 billion in new spending
$350 projects at the federal, state, and local levels of
$300
government via a combination of grants, loans, and
federal contracts on top of the usual $600 billion
$250
in spending for the normal acquisition of products,
$200 services, and systems by the more than 60 federal
$150 government departments, agencies, and commis-
sions. The new ARRA, or “stimulus act,” spending
$100
has had a dramatic impact on the purchasing and
$50 contract administration workload in the U.S. Depart-
$0 ments of Health and Human Services, Housing and
2000 2001 2002 2003 2004 2005 2006 2007 2008 Urban Development, Treasury, Labor, Education,
Energy, Transportation, and Environmental Protec-
Source: Federal Procurement Data Systems, 2008. tion Agency to provide for the growing demand
for services, economic stimulus, and “bailouts” of
financial institutions.

Contract Administration:
People and Workload
FIGURE 2.

As previously stated, government agencies and prime

Total number of federal contracts
contractors are highly focused on awarding/receiving
(in millions)
contracts and spending money, yet both agencies and
prime contractors currently suffer from a shortage of 8.0
talent to effectively and efficiently manage the mas-
7.0
sive growth of government spending. Between fiscal
years 2000 and 2008, the government’s spending had 6.0
increased from $219 billion to more than $538 billion 5.0
(see FIGURE 1 above). In addition, the number of trans-
actions or contracts awarded by government agen- 4.5
cies during the same period of time had grown from 4.0
500,000 transactions to over 7.7 million transactions
(see FIGURE 2 to the right). 3.5

3.0
This tremendous spending growth during the George
W. Bush administration was largely the result of 2.5
numerous converging factors, including: 2.0

ƒƒ The Global War on Terrorism, 1.5

1.0
ƒƒ The creation of the Department of Homeland
0.5
Security,
0
ƒƒ Significant natural disasters,
2000 2001 2002 2003 2004 2005 2006 2007 2008

ƒƒ Demographics—aging of the Baby Boomers, Source: Federal Procurement Data Systems, 2008.

56 Contract Management | February 2010

 Contract Administration, Part 1: People, Processes, and Best Practices

Thus, during the past decade, U.S. government contracts have

grown dramatically in:

ƒƒ Numbers/quantity—up 14 times since fiscal year 2000;

ƒƒ Dollar amount/value—up three times since fiscal year 2000;

and

ƒƒ Complexity/integration of hardware, software, and profes-

sional services.

However, those who are tasked to plan, negotiate, award, manage,

administer, deliver/fulfill, and closeout the contracts and related
projects from both government and industry have remained
relatively the same in quantity. Fortunately, the Obama admin-
istration is highly focused on hiring more government employ-
ees in numerous career fields, including the federal acquisition
workforce. Further, the secretary of defense announced in March
2009 that the Department of Defense plans to hire/obtain more
than 20,000 additional acquisition professionals to address the
workload over the next five years. However, another problem is
that both government and industry lack sufficient practical and
cost-effective education and training to keep up with the dramatic
increase in the complexity of the government’s requirements and
increased spending practices.
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From the government’s perspective, the job titles/roles in FIGURE 3 Cost for each course package:
on page 58 are critical to its ability to acquire and manage products,
NCMA Members—$220
services, and solutions from industry to meet the needs of its re-
Nonmembers—$250
spective agencies. During the past decade, many of the people who
have performed these vital government acquisition positions have Courses may not be taken separately.
retired, transferred to other positions within government, moved to
a position within industry, changed career fields, or some combina- Current packages offered include:
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From industry’s perspective, the similar job titles/roles in FIGURE
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Contract Management | February 2010 57

 Contract Administration, Part 1: People, Processes, and Best Practices

ucts and services was tremendously expedited by the expansion of What has been and is still driving the growing amount of money be-
the following: ing spent by the government acquiring complex systems, integrated
solutions, and professional services? The answer is the combination
ƒƒ Internet-based business, of numerous converging factors:

ƒƒ Electronic data interchange, ƒƒ Increased threat of global terrorism via Afghanistan and Iran;

ƒƒ Electronic funds transfer, ƒƒ Struggling global and U.S. economy;

ƒƒ Electronic signatures, ƒƒ Continually evolving communication technologies;

ƒƒ Electronic sales catalogs, ƒƒ High integration cost for hardware and software;

ƒƒ Federal Supply Schedules, ƒƒ Increased customer/U.S. citizen demands for services;

ƒƒ Governmentwide acquisition contracts, ƒƒ Less government personnel with needed professional services
expertise;
ƒƒ Blanket purchase agreements, and
ƒƒ Less government technical expertise to develop more detailed/
ƒƒ Indefinite delivery/indefinite quantity contracts. defined requirements;

While a majority of the government’s contracts are firm-fixed- ƒƒ Increased reliance on IT platforms, related-hardware, and soft-
price (FFP), and are used to acquire relatively simple commer- ware applications; and
cially available off-the-shelf products and services, they typically
comprise less than 60 percent of the dollars spent in some ƒƒ Other factors.
government agencies. Conversely, a minority of government
contracts are cost-reimbursement or time-and-materials (T&M)
contracts, typically used to acquire highly complex systems, Why Does the Type of Contract Matter?
integrated solutions, and a vast array of professional services. The answer is simple—when an FFP contract is awarded, the
Yet, these cost-reimbursement type contracts and T&M type con- government has very low financial risk because the contractor has
tracts together often account for over 40 percent of the dollars agreed to perform the contract for a fixed amount of money. If the
spent in some government agencies. contractor can adequately perform the work for less, then it makes
a higher profit. If, however, it takes the contractor more than the
fixed amount to accomplish the work, then the contractor loses
FIGURE 3.
money. Thus, government agencies typically perform little contract
administration on FFP type contracts because the
Key Government People/Roles Key Industry People/Roles contractor has the greatest financial risk.
ƒƒ Program Manager ƒƒ Program Manager
Conversely, when a cost-reimbursement contract
ƒƒ Systems Engineer ƒƒ Systems Engineer
or a T&M contract is awarded, the government
ƒƒ Contracting Officer ƒƒ Contracts Manager
has higher potential financial risk. In the case of
ƒƒ Contracting Officer’s Technical ƒƒ Subcontract Manager cost-reimbursement contracts, the government has
Representative
ƒƒ Bid/Proposal/Capture Manager agreed that the nature of the work is too difficult to
ƒƒ Lawyer
ƒƒ Cost/Price Analyst adequately define at the start. Thus, the government
ƒƒ Cost/Price Analyst is essentially purchasing the contractor’s best efforts
ƒƒ Contract Administrator
ƒƒ Contracts Specialist/Administrator and promising to reimburse the contractor for all of
ƒƒ Buyers/Purchasing Specialist
ƒƒ Government Property Manager
ƒƒ Logistics/Supply Chain Manager
its allowable, allocable, and reasonable expenses.
ƒƒ Budget/Financial Analyst Depending upon the type of cost-reimbursement
ƒƒ Lawyer
ƒƒ Quality Assurance Specialist contract, there may be an incentive fee, award fee,
ƒƒ Project Control Manager
ƒƒ Logistics Manager and/or fixed-fee, which is subject to specific Federal
ƒƒ Business Development Manager Acquisition Regulation (FAR) limitations.
ƒƒ Others
ƒƒ Account Manager
ƒƒ Accountants/Financial Manager In the case of a T&M contract, the government has
ƒƒ Property Manager agreed that the nature of the professional services is

58 Contract Management | February 2010

NCMA National Education Seminars
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 Contract Administration, Part 1: People, Processes, and Best Practices

too difficult to adequately define at FIGURE 4.

Post-Award Contract Administration Process

the start. Thus, on a T&M contract,
the government is purchasing the
Key Inputs Tools and Techniques Desired Outputs
contractor’s best efforts for specific
services in specific labor catego-
ries, plus related materials. In a ƒƒ Contract ƒƒ Project management discipline ƒƒ Documentation
T&M contract, the time consists ƒƒ Project plans and schedules ƒƒ Contract analysis and planning ƒƒ Payment
of a fully-loaded wrap-rate (direct ƒƒ Work results ƒƒ Kick-off meeting or pre- ƒƒ Completion of work
performance conference
cost, indirect cost, general and ƒƒ Contract change requests
administrative, fringe, and profit) ƒƒ Performance measuring and
ƒƒ Invoices
reporting
for each specific labor category on
ƒƒ Payment process
an hourly rate basis. The material
consists of the total material costs, ƒƒ Contract change management
process
plus any related handling costs; but
ƒƒ Dispute resolution process
it does not typically include any
profit, per FAR prohibition. ƒƒ Supply chain management
process
ƒƒ Government property
Since cost-reimbursement and management
T&M contracts place greater
ƒƒ Contract closeout process
financial risk on government agen-
cies, these types of contracts are
less preferred. Despite this fact, these types of contracts are and A contractor getting paid more money for doing more work than was
have been for many years the types of contracts upon which the originally agreed upon in the contract is both fair and reasonable.
government spends a large amount of money buying systems, ser- Likewise, if a contractor fails to properly perform the work or fails to
vices, and integrated solutions. As a result of the dramatic increase comply with the terms and conditions of the deal, there should be
in spending, increased number of contracts awarded, growing an appropriate remedy. Tailored project management and contract
complexity of contracts and projects, and a shortage of experienced administration procedures are essential to ensure both parties know
and properly trained government acquisition personnel, government what is expected of them at all times; to avoid unpleasant surprises
agencies have struggled to provide the necessary contract adminis- and reduce risks regarding requirements, costs, or schedule-related
tration support services and surveillance appropriate to help guide issues; and to solve problems quickly when they occur.
contractors, mitigate risks, and ensure successful programs.
However, government customers do at times consider contractors
who effectively manage their contracts and actively pursue pay-
Contract Administration Processes ment for contract changes to be “nickel-and-diming” them. Some
Contract administration can be straightforward or complex, depend- prime contractors will intentionally “low-bid or underprice” the
ing on the nature and size of the project. Administering a contract initial bid in order to get the contract on the off chance that they
entails creating a contract administration plan and then monitoring can make enough follow-on sales to offset the initial loss and create
performance throughout the many, varied activities that can occur a profitable long-term business relationship. Often, government
during project execution. buyers are so motivated to reduce initial capital expenditures to fit
their reduced budgets that they will essentially entice sellers into an
Key contract administration activities typically include: initial low bid/buy-in business model.

ƒƒ Ensuring compliance with contract terms and conditions; Effectively managing the contract scope of work through proven
project and contract management best practices is wise and finan-
ƒƒ Practicing effective communication and control; cially prudent for both the government and industry. The govern-
ment needs to ensure it gets what it paid for and to get it when it
ƒƒ Managing contract changes, accounting, invoicing, needs it. Contractors need to ensure they provide the products and/
and payment; or services as and when they agreed to deliver them. Post-award
contract administration is the process of ensuring that each party’s
ƒƒ Management of government property; performance meets contractual requirements.

ƒƒ Resolving claims and disputes; and On larger projects with multiple product and service providers, a key
aspect of contract administration is managing the interfaces among
ƒƒ Contract closeout actions. the various providers. Because of the legal nature of the contractual

Contract Management | February 2010 61

 Contract Administration, Part 1: People, Processes, and Best Practices

FIGURE 5.

Contract Requirements Matrix

Deliverables

Description Contract Delivery Date or Work Breakdown Other Reference

Reference Services Date Structure Element

relationship, the project team must be acutely aware of the legal
implications of actions taken when administering the contract.
Effective contract administration is critical to effective project
management because an organization’s failure to fulfill its contrac-
tual obligations could have legal consequences. Therefore, someone
must observe the performance of contractual obligations. That
person is usually the contract manager, contract administrator, or
subcontract manager, depending on the organization, who must al-
ways be aware of the legal and financial consequences of an action
or failure to act, and who must take steps to ensure required actions
are taken and prohibited actions are avoided.
In a real sense, a contract manager is a project manager, and the
principles of project management apply to their work. Each party to
the contract appoints a contract manager, contract specialist, con-
tract administrator, or subcontracts manager; job titles vary among
those who monitor not only their own organization, but the other
party as well to ensure that both parties are keeping their prom-
ises. The contract managers must maintain these two perspectives
throughout contract performance.
Project Plans and Schedules
The project manager shall prepare appropriate plans to ensure
the work is properly completed on time, on budget, and meeting
contractual requirements. Such planning could include a work
breakdown structure, organizational breakdown structure, responsi-
bility assignment matrix, schedules (Gantt charts, milestone charts,
project network schedules, etc.), and an earned value management
system (EVMS). Plus, the contract manager should develop a con-
tract requirements matrix (see FIGURE 5 above).
Work Results
The results of performing the requirement will affect contract
administration.
Contract Change Requests
Contract change requests are a common element of most contracts.
An effective process for managing contract changes must be in
place to ensure that all requests are handled smoothly. Contract
changes may include:

The post-award phase of the contract management process (see ƒƒ Amendments,

FIGURE 4 on page 61) includes applying the appropriate contract
administration and project management actions to the contractual ƒƒ Modifications,
relationships and integrating the output from these best practices
into the general management of the project. ƒƒ Change orders,

ƒƒ Supplemental agreements,
Input
Input to the post-award phase of the contract management process ƒƒ Add-ons,
consists of the following items.
ƒƒ Up-scopes, or

Contract ƒƒ Down-scopes.
The contract document is the primary guide for project execution
and administration of the contract. Contract changes are opportunities either to increase or decrease
profitability for the seller. Changes are a necessary aspect of busi-

62 Contract Management | February 2010

 Contract Administration, Part 1: People, Processes, and Best Practices
ness for buyers because of changes in their needs. The management
of unauthorized contract changes can prove to be very challenging.
Invoices
An efficient process must be developed for handling invoices
throughout contract administration. Few areas cause more concern
to sellers than late payment. Buyers can realize savings by develop-
ing an efficient and timely payment process because sellers are
often willing to give discounts for early payment.
Tools and Techniques
The following tools and techniques are often used to improve con-
tract administration performance results.
Project Management Discipline
All work to be performed should be appropriately led, planned,
scheduled, coordinated, communicated, tracked, evaluated, reported,
and corrected, as necessary, using the basic guidelines of the Project
Management Institute’s Project Management Body of Knowledge.
RECOMMENDED READING
Smart Contracting for Local Government
Services: Processes and Experience
(Privatizing Government: An Interdisciplinary
Series)
by Kevin Lavery
Building a Career in Compliance and Ethics
by Joseph E. Murphy and Joshua H. Leet
The Contract Negotiation Handbook:
An Indispensable Guide for Contract
Professionals
by Stephen Guth
FEBRUARY
Contract Analysis and Planning
Before contract award, each party should develop a contract
administration plan and assign the responsibility of administer-
ing the contract to a contract manager. To whom should the job
be assigned? A project manager could do double duty as contract
manager. However, in most large companies, contract administra-
tion is a specialized function, usually performed by someone in the
purchasing, contracting, or subcontract management department
because doing the job requires special knowledge and training.
Contract administration is an element of both contract management
and project management.
Kick-off Meeting or Pre-performance Conference
Before performance begins, both government and industry should
meet (via teleconference, videoconference, Web meeting, or
face-to-face meeting) to discuss their joint administration of the
contract (see FIGURE 6 on page 64). The meeting should be formal,
the agenda should be distributed in advance, and minutes should
be taken and distributed. Each party should appoint a person who
will be its organization’s official voice during contract performance.
At the meeting, the parties should review the contract terms and
conditions and discuss each other’s roles. The parties should also
establish protocols for written and oral communication and progress
measurement and reporting. They should also discuss procedures for
managing changes and resolving differences. Government and con-
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Contract Management | February 2010 63
 Contract Administration, Part 1: People, Processes, and Best Practices
FIGURE 6.
Pre-performance Conference Checklist
Project Name:
Prepared by (Print): Date Prepared:
Customer: Contract:
Contact Telephone/E-mail:
…… Complete requirements analysis—verify and validate the re-
quirements stated in the contract to ensure that the project,
when completed according to the requirement statement,
will meet the needs of both parties.
…… Summarize contract requirements—complete a contract
requirements matrix (see FIGURE 5 on page 62).
…… Establish the project baseline—ensure that the baseline and
specifications are established.
…… Develop in-scope and out-of-scope listings—develop lists of
items that the government and contractor consider within
and outside the scope of the contract.
…… List the contractor’s assumptions about the government’s
requirements and understanding of the end-user’s expecta-
tions.
…… Establish a preliminary schedule of meetings between the
parties.
…… Inform your team and other affected parties—brief the team
members who will attend the meeting, ensuring they under-
stand the basic requirements of the contract and the project.
…… Review meeting findings with all affected people in your
organization.
…… Document who attended, what was discussed, what was
agreed to, and what follow-up actions are required—by
whom, where, and when.
…… Prepare and send pre-performance conference meeting
minutes to the other parties.
tractor managers with performance responsibilities should attend
the pre-performance conference or at least send a representative.
Important subcontractors should also be represented. The meeting
should be held shortly after contract award.
Performance Measuring and Reporting
During contract performance, the project manager, contract manager,
and responsible business managers all must observe performance, col-
lect information, and measure actual contract progress. These activi-
ties are essential to effective control. The resources devoted to these
tasks and the techniques used to perform them will depend on the
nature of the contract work, the size and complexity of the contract,
and the resources available. On large, complex contracts, the govern-
ment will often require the contractor to apply an EVMS.
64 Contract Management | February 2010
Payment Process
Every contract must establish an adequate accounting, cost tracking,
invoicing, and payment process between the parties. The govern-
ment agencies and prime contractors must agree to whom invoices
should be sent and what information is required. Prime contractors
and their subcontractors must submit proper invoices in a timely
manner. Government agencies are then required to pay all properly
submitted invoices in a prompt manner.
Contract Change Management Process
As a rule, any party that can make a contract can agree to
change it. Changes are usually inevitable in contracts for
complex undertakings, such as system design and integration.
No one has perfect foresight—requirements and circumstances
change in unexpected ways and contract terms and conditions
must often be changed as a result.
Dispute Resolution Process
No one should be surprised when, from time to time, contracting
parties find themselves in disagreement about the correct interpre-
tation of contract terms and conditions. Such disagreements are typ-
ically minor and are resolved without too much difficulty. Occasion-
ally, however, contracting parties may find themselves entangled in
a seemingly intractable controversy. Try as they might, they cannot
resolve their differences. If the dispute goes unresolved for too long,
one or both of the parties may threaten, or even initiate, litigation.
Litigation is time consuming, costly, and risky. You can never be
entirely sure of its result. Rarely is the outcome a truly satisfactory
resolution of a dispute, and it sours business relationships. For these
reasons, litigation should be avoided. Thus, it is critical to create a
cost-effective dispute resolution process between the parties using
negotiation, arbitration, facilitation, or mediation methods.
Supply Chain Management
Supply chain management represents the ability of government
prime contractors to efficiently and cost-effectively manage their
subcontractors and vendors, which comprise their selected supply
chain. Applying proven-effective supply chain management best
practices is vital to improve performance results, including the ap-
propriate flow-down of mandatory government contract clauses.
Government Property Management
The ability of a prime contractor to effectively perform government
property management, pursuant to FAR Part 45, and overcome the
numerous challenges to achieve the on-time delivery of quality prod-
ucts, services, and systems, is critical to business success.
 Contract Administration, Part 1: People, Processes, and Best Practices

FIGURE 7.
ƒƒ Progress reports,
Contract Closeout Checklist
ƒƒ Project diaries,
Project Name:
ƒƒ Telephone logs,
Prepared by (Print): Date Prepared:
ƒƒ Photographs, and
Customer: Contract:
ƒƒ Videotapes.
Contact Telephone/E-mail:
1. …… yes …… no …… n/a All products or services required
were provided to the buyer. Payment
Sellers want their money as quickly as pos-
2. …… yes …… no …… n/a Documentation adequately shows
sible. The government should seek product and
receipt and formal acceptance of
all contract items. service discounts for early payments. Likewise,
contractors should improve their accounts re-
3. …… yes …… no …… n/a No claims or investigations are ceivable management and enforce late payment
pending on this contract.
penalties.
4. …… yes …… no …… n/a Any buyer-furnished property or
information was returned to the
buyer. Completion of Work
5. …… yes …… no …… n/a All actions related to contract This last step is the contractor’s actual accom-
price revisions and changes are plishment of the government’s requirement for
concluded. products, services, systems, or solutions.
6. …… yes …… no …… n/a All outstanding subcontracting
issues are settled.
Contract Administration—
Best Practices
7. …… yes …… no …… n/a If a partial or complete termination
was involved, action is complete.
The following is a checklist for best practices
8. …… yes …… no …… n/a Any required contract audit is now when conducting post-award contract
complete. administration:

Contract Closeout Process …… Develop and implement a project management discipline to

Contract closeout refers to verification that all administrative
matters are concluded on a contract that is otherwise physically
complete. In other words, the contractor has delivered the required ……
supplies or performed the required services and the government has
inspected and accepted the supplies or services (see FIGURE 7 above). ……
ensure on-time delivery and flawless execution.
Comply with contract terms and conditions.
Develop and implement a contract compliance matrix.

…… Maintain effective communications.

Outputs
The following output functions result from contract administration: …… Manage contract changes with a proactive change manage-
ment process.

Documentation …… Resolve disputes promptly and dispassionately.

This is essential to provide proof of performance, management of
changes, justification for claims, and evidence in the unlikely event of ……
litigation. The most important documentation is the official copy of
the contract, contract modifications, and conformed working copies ……
of the contract. Other important forms of documentation include:
Use negotiation or arbitration, not litigation, to resolve disputes.
Develop a work breakdown structure to assist in planning and
assigning work.

ƒƒ External and internal correspondence, …… Conduct pre-performance conferences or a project kick-off

meeting.
ƒƒ Meeting minutes,

Contract Management | February 2010 65

 Contract Administration, Part 1: People, Processes, and Best Practices
…… Measure, monitor, and track performance.
…… Manage the invoice and payment process.
…… Report the progress internally and externally.
…… Identify variances between planned versus actual perfor-
mance—use earned value management.
…… Be sure to follow up on all corrective actions.
…… Appoint authorized people to negotiate contract changes and
document the authorized representatives in the contract.
…… Enforce contract terms and conditions.
…… Provide copies of the contract to all affected organizations.
…… Maintain conformed copies of the contract.
…… Understand the effects of change on cost, schedule, and quality.
…… Document all communication—use telephone correspondence,
faxes, correspondence logs, and e-mails.
…… Prepare internal and external meeting minutes.
…… Prepare contract closeout checklists.
…… Ensure completion of work.
…… Document lessons learned and share them throughout your
organization.
…… Communicate, communicate, communicate!
66 Contract Management | February 2010
Conclusion
Contract administration is an important aspect of successful busi-
ness. Simply said, contract administration is the joint government
and contractor actions taken to successfully perform and administer
a contractual agreement, including effective changes management
and timely contract closeout. The ongoing challenge is maintaining
open and effective communication; timely delivery of quality prod-
ucts and services; responsive corrective actions to problems; and
compliance with all laws, rules, regulations, and agreed-upon terms
and conditions. After the project is successfully completed, proper
procedures must be put into place to closeout the contract officially.
Of course, the goal of nearly every prime contractor is to capture
the government’s follow-on business, which is far easier to do if the
contract and related project were properly managed by both parties.
Remember, achieving a true business partnership between a govern-
ment agency and a government prime contractor requires dedica-
tion and discipline by both parties—not just one!
Remember, too, the power of precedent. Your organization is always
evaluated based on your past performance and the precedents it
sets. Your contract administration actions taken years ago affect
your organization’s reputation today. Likewise, in both government
and industry the contract management actions you take today form
your organization’s reputation for tomorrow. CM
About the Author
GREGORY A. GARRETT, CPCM, NCMA Fellow, C.P.M., PMP, is the
managing director and practice leader of Government Contractor
Services, Navigant Consulting, Inc. He is an international educa-
tor, best-selling author, highly respected consultant, and is the recipi-
ent of numerous national and international business awards. He has
authored 16 books and more than 90 published articles. He is also a
member of the NCMA Executive Advisory Council.
Send comments about this article to cm@ncmahq.org. To dis-
cuss this article with your peers online, go to www.ncmahq.org/
cm0210/Garrett and click on “Join Discussion.”
This article is a modified excerpt from the new book Contract Admin-
istration: Tools, Techniques, and Best Practices, by Gregory A. Garrett
(CCH, Wolters-Kluwer Law & Business, Chicago: 2009).