When it comes to contract management, all businesses face similar needs and challenges, from redlining to attachment management, tracking, clause libraries, etc. But for federal contractors – especially those working in technology for public sector agencies like the Department of Defense and the intelligence community – managing contractual relationships and the documents themselves leaves no room for error.
Working with government organizations is never simple. The regulatory environment, intense scrutiny and strict parameters become even more extreme when those organizations include Homeland Security, Space Community, the Department of State and others. For a company like ManTech International Corporation, a leading technology provider, contract conformance and compliance to federal mandates required a consolidation of contract management processes to deal with it all.
Advanced technological services, even more advanced contract needs.
Supplier and third-party management is becoming more onerous for companies in just about every industry today. With government organizations, added complexity comes with something called “flow-down,” where companies like ManTech are required to apply unique provisions and contract terms to all sub-contractors. This is done to avoid issues such as conflicts of interest, and to maintain requisite transparency in contracts.
Over 7,600 ManTech professionals provide a wide array of services in the United States and 40 countries. The company was saddled with labor-intensive, manual processes to manage complex subcontractor and team agreements, placing demands on resources to manually enter and analyze data. Without complete verified data visibility, contract teams had difficulty assessing internal conflicts of interest and addressing fair pricing concerns, a cumbersome and time-consuming activity.
Automating to go with the flow-down.
Previously, ManTech had geographically decentralized contract management operations with over one hundred contract administrators who have traditionally used existing contract templates. By adopting Determine CLM, existing contract terms and templates are now standardized using a centralized knowledge management hub, and changes to contract clauses can be tracked in a way that provides transparency across the organization.
By automating its contract management processes, ManTech can more easily control the entire contract workflow. Government regulations, otherwise known as Federal Acquisition Regulations (FARs), require a contractor to flow-down unique and standard terms to subcontractors based on complex rules. These include the dollar threshold, subcontract type, i.e. Federal Financial Participation (FFP), reconciling contract value against available contract funds and others. A central contract repository makes it easy to vet proposals for potential conflicts of interest, and ensure that prime contract terms flow-down to all subcontractors.
In addition, standardized contract terms start with the RFP and follow through to contract award and closeout, with integrated pricing standards to help avoid defective pricing.