This document outlines an efficient process for contract review to ensure effective compliance. It recommends identifying subject matter experts, defining a document management system requiring 7 documents for every file, and regular follow up meetings. The goals of contract review are confirmation, expectations, and risk analysis. An efficient review process includes identifying experts, tracking documents, and weekly meetings. Effective compliance has two aspects - following the internal review process and complying with contract terms. It suggests implementing a review process, document management, metrics, training, and internal audits.

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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