Effective Contract Management and Administration
The National Association of State Procurement Officials (NASPO) recently released its annual report – “Top 10 Priorities for State Procurement 2020
” – based on input from state CPO’s. In a series highlighting the priorities in greater detail, we will explore how you can achieve several priorities for your agency.
In a previous article we focused on Continuous Process Improvement (CPI)
and we will now turn our attention to the hot topic of Effective Contract Management and Administration.
As with those of the personal variety, long lasting and mutually beneficial contractual relationships sometimes require a degree of compromise, patience, and empathy. The best results are achieved when your suppliers feel like equal partners rather than subordinates, but as the customer, it is crucial that you maintain control. So how can you ensure that an effective relationship is achieved?
According to IACCM
(The International Association for Contract & Commercial Management), Contract management is a discipline that supports commercial management through the preparation, negotiation, implementation and oversight of legally enforceable performance commitments and risk positions, both outbound (to the market) and inbound (from the market). Ultimately, contract management covers the entire contracting process, from the pre-solicitation activities through to contract closeout. Effective contract management can lead to lower operational costs, increased user agency satisfaction, and efficiency in delivering services to taxpayers.