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Contract Management

Success Story: Government Contracting

ManTech Improves Government Contract Administration

ManTech International Improves Government Contract Administration With Determine Contract Lifecycle Management

ManTech International Corporation is one of the leading providers of technologies for the federal government, supporting mission-critical security programs for the Intelligence Community; the departments of Defense, State, Homeland Security, and Justice; the Space Community; and other U.S. federal agencies. Over 7,600 ManTech professionals provide a wide array of services in the United States and 40 countries.

Like all federal contractors, ManTech has to structure its contracts to conform to federal regulations—closely tracking agreements with subcontractors as well as its own subsidiaries. With the help of Determine Contract Lifecycle Management, ManTech is consolidating its contract management processes and using new approaches to handle complex government contracts.

Addressing the Unique Challenges Facing Government Contractors

Federal contractors face many challenges when managing complex contracts with government agencies. There are the common issues all businesses face, such as redlining contract agreements, managing proposals and RFPs, and tracking contract terms with customers and vendors. But federal contracts offer an added layer of complexity since government contractors must “flow-down” unique provisions and contract terms to subcontractors, adhere to GSA and pricing regulations, monitor all contracts with internal groups for potential conflicts of interest, and maintain absolute transparency in the contract terms and clauses throughout the company.

One of the reasons ManTech decided to automate its contract management processes was to more easily ensure that prime contract terms flow-down to all subcontractors. All government contractors may outsource pieces of their projects to other companies. 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 that include the dollar threshold, subcontract type, i.e. Federal Financial Participation (FFP), Cost Plus (CP), the subcontractor’s business size, or a combination of all these attributes. This means that the terms of each contract need to flow-down to all subcontractors in an accurate, enforceable, and auditable manner.

An ongoing issue for all government contractors is reconciling contract value against available contract funds. Unlike projects in the private sector where a contract award has a specific dollar value, funding for government contracts are tracked on an ongoing basis, applying the amount funded by the government customer at any given time against the overall amount allocated for an entire project. The contract typically requires the contractor, and its subcontractors, to notify the government agency when billings against available project funding reach a specified threshold so the project can be assessed and more money can be allocated. ManTech, like most contractors, tracks all value and funds within its ERP system. With Determine CLM, ManTech now has the ability to integrate and pre-validate the value and funds reconciliation process during a contract administrator’s daily processes. This ability provides pre-validated funds information into the ERP system.

Government contracts predominately require that each organization submit an Organizational Conflict of Interest (OCI) disclosure statement verifying that the prime contractor, its affiliates, and subcontractors don’t offer goods or services that would create a conflict with the project. ManTech has grown to a $2.5 billion company and has had a number of mergers and acquisitions, so identifying potential conflicts with its subsidiaries is a challenging task. For every new proposal and every new contract, ManTech needed an effective means to vet each project with key stakeholders throughout the company to identify areas of potential conflict of interest.

Managing Federal Contracts with Determine CLM

By adopting Determine CLM, ManTech is able to keep close track of all contractual relationships, starting with the RFP process through contract award and closeout, including all relative subcontractor teaming relationships. Integrating contract management into the RFP process makes it easy to establish business rules and conditions from the outset, and manage workflow and approval processes as each government project progresses.

ManTech had geographically decentralized contract management operations, with over one hundred contract administrators who have traditionally used existing contract templates to perform their daily responsibilities. With 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. ManTech’s first phase of deployment for Determine CLM was to manage the OCI vetting process and the full lifecycle process (request to close) of nondisclosure and teaming agreements. What was attractive about Determine was its strong configuration support and its ability to create standardized templates and enforce workflows. As part of the initial solution launch, ManTech was able to implement an elaborate, yet simple, OCI review process that requires only “five clicks” for each OCI reviewer. Using Determine’s built-in workflow and approval processes, proposals and contracts are instantaneously routed to more than 90 managers throughout the company to identify potential conflicts. Once a conflict is identified, managers can work to resolve the conflict before submitting a proposal or accepting a contract award.

Document management is also greatly simplified. Some large proposals require 50 or more teaming agreements. With Determine CLM, professionals create a single request that can be replicated across all other teaming agreements to ensure terms are consistent. The PDF- to-Microsoft® Word conversion feature in Determine CLM makes it easy to convert static documents for editing. According to Uster, Determine’s PDF conversion is even more robust than that available from Adobe, and ManTech will realize additional savings with a single enterprise software license from Determine as opposed to multiple desktop software licenses from other vendors.

Implementing Contract Terms Flow-Down for Subcontractors

Determine CLM is ideally suited for managing subcontractors and contract flow-down provisions since it has a hierarchical and relational structure, allowing ManTech to track individual contractor agreements and manage rules that flow-down the value chain to each individual subcontract based upon the prime contract requirements. Customized questionnaires make it easy to map business rules to RFPs, and the Determine solution manages workflow as well as the approval processes. All contract provisions are entered into the system and specific provisions are designated as flow-down. The Determine system then links the subcontracts to the primary contract, assigned by a contract administrator, and all the terms flow automatically into the subcontracts.