Welcome To Contract Management & National Contract Management Association

Purpose: Introduce Universities and Colleges to – The Contract Management Profession National Contract Management Association Benefits of student membership in NCMA Benefits of NCMA student chapters Information about CM curriculum development For More Information Neal Couture, CPCM at 2

What is Contract Management? Contract management is the art and science of formulating, executing, administering and closing a business transaction between two or more parties. Both buyers and sellers participate in the contract management process. Job scope ranges from the administrative skills of managing, organizing, and planning, to the excitement and challenge of negotiating a major contract. 3

What skills do you need? Contract management skills are developed through continuing education and practice. A successful contract manager has developed skills in 3 main areas. –Technical: Demonstrated by competently performing such as tasks preparing and issuing solicitations, bids, and proposals, preparing or analyzing terms and conditions, or analyzing procurement requirements and supplier capabilities. –Conceptual: The manner in which the contract manager visualizes the contract's organization in terms of the agency's or company's goals. These skills involve the ability to see and use the "big picture" for greater organizational and personal success. –Human relations: Focus on the "people" aspect of contract management. Effective performance requires the cooperation of many others over whom the contract manager has little or no organizational control. Dealing with government and contractor representatives from a diverse range of disciplines requires strong relational and communication skills. Many contract managers consider competency in human relations to be the most important skill for the future of their jobs and careers. 4

Contract Roles Buyers – purchaser of product(s) or service(s) –Key Terms: Acquisition, Purchasing Agents Contracting Officers, Subcontract Managers/Administrators Sellers – provider of product(s) or service(s) –Key Terms: Sales Agents, Business Development, Contracting (Contract Administrator) Negotiators Maintenance or Management of Contract –Applies to both Buyers and Sellers Note: One person can have all roles 5

Contract Manager Responsibilities Effective Teamwork with Customers –External – Buyers are customers to Sellers –Internal – Project Managers or Business Development become customers to Contracting Professional when they need a contractual agreement to purchase products and services or build teaming agreements Coping with Contract Regulations –U.S. Government contracts: Federal Acquisitions Regulations (FAR) Federal agencies may also have FAR supplements –Commercial contracts: Uniform Commercial Code (UCC) –International contracts: Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) 6

Contract Manager Responsibilities (Continued) Problem Solver –Work with customer to structure effective acquisition strategy and tactics Well described requirement and clear contracting vehicle –If there are hoops to jump through, jump through them together –Don’t gain the reputation of being a problem causer Business Advisor –The shortest route to success may not be the best; protect your boss and customer –If there is a gray area when interpreting rules, interpret to the benefit of your customer (document your rationale) –The skill (and reward!) comes from building an alternative that works 7

What Does It Take? Contract Management demands competence in –Leadership –Management –Contract law –Economics –Accounting & finance –Marketing –Operations management –In short – a “walking MBA” Organizations need to quickly identify and hire entry level professionals to be able to deal with threats and opportunities 8

Contract Management – Jobs! A lot of jobs on both the government and industry side within the contracts field Search on Monster.com with “contract administrator” results 2,000+ jobs nationwide Search on Monster.com with “procurement” results more than 5,000 jobs Search on usajobs.gov with “procurement” results 1,800+ jobs Washington, DC has the most jobs available within the field 9

Contract Management – Money! 2008 NCMA Salary Survey Findings Median = US $90,000 Annual median salary by experience –<5 years =$59,000 –5 to 9 years =$76,000 –10 to 14 years =$87,500 –15 to 19 years =$100,000 –20 to 29 years =$107,200 –30+ years =$119,600 10

2008 NCMA Salary Survey Findings (Continued) Annual median salary by age (in US $) –Under 35 = $63,000 –35 – 44 = $82,800 –45 – 54 = $95,300 –55 and up = $100,000 11

What is NCMA? Vision NCMA will lead and represent the contract management profession. Our vision is that enterprises will succeed through improved buyer-seller relationships based on common values, practices, and professional standards. Mission NCMA exists to enable the workforce to grow professionally, assess individual and organizational competency against professional standards, establish values, develop best practices, and provide access to skilled individuals, enabling enterprises to improve their buyer-seller relationships. Web Site: 12

Benefits of NCMA NCMA provides contract professionals in the private and public sectors, buying and selling worlds, the knowledge and connections that foster lifetime career management excellence through… Contract Management – monthly magazine Journal of Contract Management Three Annual National Educational Conferences CM News—Monthly newsletter Chapter Affiliation Webinars Professional Certification Programs E-Courses Job opportunities: ntJobs.com Access to Salary Survey Networking Opportunities with the People Who Matter 13

Student Membership & Chapters — Why? “The foundation of integrity within the (federal acquisition) system is a competent, experienced, and well-trained, professional workforce.” –FAR Part 102-2(c)(1) 14 Major Employers seeking better and more in depth knowledge in candidates when hiring new contract management professionals

Student Member Benefits Receive all the benefits of Individual Members –Contract Management magazine –CM News (e-newsletter) –Access to local and national training/educational opportunities –Member discounts –Networking opportunities leading to possible future intern programs or full-time employment –Access to Post resume Apply for jobs online > 1,000 worldwide jobs posted every year 15

Student Membership Requirements To qualify: –Must be full-time student; –Must be in an accredited, degree-granting institution; and –Not hold full-time employment in CM or related career field Student Membership available at no charge until June 30, Join now! Effective July 1, 2010, dues increase to $25 annually. –Initiation fee is waived 16

Student Chapter Benefits Networking opportunities –Learn from each other –Learn from mentor chapter Closer working relationship with faculty advisor More in-depth relationship to NCMA organization 17

Getting Started Support from both NCMA and your local chapter Conduct student chapter interest meeting –Provide food & nonalcoholic drinks –Invite NCMA speaker CM information and testimonials NCMA benefits Get at least 25 students interested Select pro tem President, Secretary, Treasurer Submit charter petition letter Select faculty advisor (Make or break step!) For more details about Chapter Chartering contact Mary Beth Lech, Chapter Relations Manager, at 18

Faculty Advisor Role Focal contact for student chapter Advocate student chapter Advise student board members Communicate with both NCMA and the local host chapter Send NCMA related information to chapter members Consider development of Contract Management curriculum or content 19

Tools For Contract Management Curricula NCMA has developed summary Contract Management Body of Knowledge (CMBOK) Access to NCMA library Career Building Box (see next slide) Support from other professors within field Support from both NCMA and the local host chapter 20

Career Building Box Student Brochure & Applications Contract Management Code of Ethics Guide to the CMBOK Executive Summary of the Salary Survey Student Posters Contract Management Magazine 21 Knowledge Catalog Resource Guide Journal of Contract Management Where to obtain a copy of the latest Student Chapter Newsletters on line Information on s.com s.com

Summary CM is an established and growing career field –In excess of 128,000 jobs –Supporting and facilitating acquisition of R&D, production, construction and many other supplies and services –Located at Federal, State, and Local Government level –Located in all industries selling to Government – Located in companies selling to and buying from industry –Working at both prime and subcontract level CM profession greatly facilitated by trained, competent, and professional workforce Employers place great value on CM knowledge in candidates NCMA provides a bridge to CM profession and career 22