Project Management Framework
Planning - Contractor Management Plan
Definition
A useful document that can assist with your planning efforts is the Contractor Management Plan (CMP). Creating a CMP will assist your project with defining a strategy for preparing, awarding, and if necessary, filing your purchased/personal services contract(s). In addition, a CMP can play an important role for the project manager to articulate relevant contractual topics early in the planning phase and manage these key elements throughout the duration of the contracting period. Typically, contracts for goods and services will include:
- Personal services
- Purchased services
To learn more about personal and purchased services contracting, please read the Office of Financial Management
Guide to Personal Service Contracting manual.
The CMP is part of the overall contracting/procurement process. The picture below illustrates the role the CMP plays in contract planning and development/formation phases. Defining what services will be acquired, how the contract will be managed/monitored, and establishing a process for measuring and reporting performance will assist with managing your project contracts effectively.
The CMP provides the reader a general overview of the contracting management process. Information related to the hardware and software acquisition process is beyond the scope of the CMP. The topic of hardware/software acquisition is a function of the acquisition planning process and is covered in the (vendor)
Acquisition Plan.
Why is this important?
From time to time, a project must look externally for assistance with completing special or unique work. In such cases, and when approved by sponsors, the project must enter into a contract agreement with a company for the specialized skills and services. Contractor Management involves the overall strategy for identifying, selecting, hiring, and managing contractor services efficiently and effectively. Using the CMP can assist with the contract management strategy development and can help to ensure that your project is focused on key and relevant contract matters.
Instructions
Several other planning phase documents can serve as inputs into the CMP. If available, use the feasibility study or similar business case supporting documentation as a starting point. Other sources you should read prior to creating the CMP include the project charter, project plan, and other project initiation/planning related material.
The following activities should be completed during the contract management-planning phase:
- Identify and document the project need or requirement.
- Obtain authorization to proceed from your sponsors.
- Develop the business justification for the personal/purchased services contract.
- Demonstrate that acquisition is feasible.
- Check to see if your agency has a central contract office. If so, involve them early in your process to:
- Provide technical assistance with your planning needs
- Assist with any contracting laws, policy, or procedure requirements
- Select a contract strategy and approach.
- Verify that your contract approach will meet business objectives.
- Identify any risk that will be associated with the proposed (deliverable based, time & material) option. Use deliverable based contracts when possible.
- Consider using the Department of General Administration vendor pre-qualified list.
- Read the following reference material:
- Guide to Personal Services Contracting, Office of Financial Management
- Washington State Purchasing Manual, Department of General Administration/Office of State Procurement
- Determine procurement needs (purchased or personal services).
- Involve your agency Assistant Attorney General (AAG) representative early in the contract planning stage.
- Develop criteria for evaluating and scoring a contract proposal.
- Develop criteria/process for selecting a contract proposal.
- Create an evaluation/selection team.
- Develop the contract solicitation and award process.
- Prepare for contract award and execution.
- Ensure that you allow adequate time for contract negotiations. Also, make sure the contract is sufficiently protects your agency prior to signing.
- Consider including a "hold back" strategy in your contract that withholds a portion (10%, 15%, etc.) of the total contract amount until all deliverables have been completed and accepted.
- Also, consider requiring your contractor to read all your agency policies and employee related material, such as
- Employee handbook
- Agency guidelines
How to Scale
Scaling the CMP should be based on the size and complexity of the project and needed contract services. Small projects requiring a CMP should verify that the need for contract services is required and documented in the Request for Proposal (RFP), Request for Quotation and Qualifications (RFQQ), Statement of Work (SOW), or other related project documentation. Large and complex projects may require formal contract management governance for managing and controlling a project contract. Regardless of the project size or complexity, a project should always document the justification that contractor services were required to complete project work.
Related Links:
Contractor Management Plan Template
Contract Management Execution
Checklists