2. Efficient Contract Review
for Effective Compliance
Breakout Session #: C14
Presented by: Robert E. Jones, CFCM, CCCM
Date: July 22, 2013
Time: 4:00 PM – 5:15 PM

3. Agenda
1. Goals
2. Efficient Process
3. Documentation
4. Compliance
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4. Why is contract review important?
• What can go wrong in a contract?
• Can you identify that up front?
• How do some of you review contracts
today?
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5. 1.0 Goals of Contract Review
1. Confirmation
2. Expectations
3. Risk Analysis
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6. 1.1 Confirmation
• Did the customer order what they said they
were going to order?
• Correct quantity and pricing?
• Same T&C as pre-negotiated?
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7. 1.2 Expectations
• What are the T&C, Spec, and SOW
requirements?
• Can we meet the delivery deadlines?
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8. 1.3 Risk Analysis
• What kind of risk is involved?
– Technology
– Schedule
– Financial/T&C
• How can we mitigate the risk?
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9. Risk Assessment Tool
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10. 2.0 Keys to an Efficient Process
1. Identify subject matter experts (SME)
(department managers?)
2. Define a system for tracking documents,
revisions, reviews, and approvals (Document
management, SharePoint, ERP)
3. Regular meetings and follow-up (weekly
huddle)
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11. 2.1 Subject Matter Experts (SME)
• T&C - payment terms, warranty, insurance,
termination, liquidated damages, etc.
• Quality - quality requirements or
certifications
• Spec - can we build the product and meet
the spec?
• Exports - product jurisdiction, classification,
and licensing requirements
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12. 2.1Subject Matter Experts (SME)
• Materials - do we have the supplies and
can we get them in time?
• Software - do we have updated test
software?
• Planning - is there capacity to build the
product?
• Program Management - are there any
SOW issues?
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13. 3.0 Documents for EVERY file
1. Signed Contract or Purchase Order
– Including a record of negotiations, with
references to other documents
1. Terms & Conditions
– including any Quality clauses
1. Non-Disclosure Agreement (NDA/PIA)
2. Specification and/or Drawing
– what is being built, designed, or serviced
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14. 3.0 Documents for EVERY file
5. Statement of Work
– how and where the work is to be performed
5. Export Review
– including restricted party screening and product
or service jurisdiction and classification
5. Quote Package
– including original RFP/Q and Basis of Estimate
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15. 4.0 Effective Compliance
There are two aspects of compliance:
1. Compliance to the review process and your
internal procedures
2. Compliance to the contract
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16. 4.1 Compliance to the Process
1. Implement a review process
– defined process, released procedure
1. Define a document management system
2. Reporting and Metrics for TAT(turn around
time)
3. Training
4. Internal audit
– could be part of QMS/AS internal audit
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17. 4.1.1 Review Process
• Hold a Kaizen event
• Have a defined process and written
procedure
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18. 4.1.2 Document Management
• Seven documents for every file
• Defined naming and filing system
• Document retention requirements
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19. 4.1.3 Reporting & Metrics
• Define metrics
• Provide reports and feedback
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20. 4.1.4 Training
• Provide training as a result of Kaizen and
updated process
• Train new employees
• Refresher training for those not actively
involved in the process
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21. 4.1.5 Internal Audit
• Incorporate into your QMS/AS audit
• Have a sister company audit
• Have another department audit
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22. 4.2 Compliance to the Contract
• Whole separate set of issues
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23. Review & Connect
3 keys to implementing an efficient contract review
process:
1.Identify subject matter experts (SME).
2.Document management
– 7 Documents for EVERY File
1.Follow-up
– 5 Steps for Effective Compliance
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24. Questions
Robert E. Jones
CFCM, CCCM
Contracts Manager, Pole/Zero Corporation
rjones@leftbrainpro.com
(513) 728-1163
www.linkedin.com/in/rjones330
www.leftbrainpro.com
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