Crown Commercial Service

Commercial Contract and Supplier Management

Version v1.019 Nov 2014

Delivering value for the nation through outstanding commercial capability

and quality customer service

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Mission Statement

Our aim is to ensure that our customers are getting the maximum levels of service and

value from their suppliers whilst also minimising risk.

Busin

ess

need

iden

tifica

tion

Suppl

ier r

elat

ions

hip

man

agem

ent a

nd

nego

tiatio

n

Execu

tion

of

sour

cing

stra

tegy

Mar

ket a

nalys

is

Sourc

ing

stra

tegy

Suppl

ier

iden

tifica

tion

Fina

lisat

ion

of

cont

ract

Contra

ct

man

agem

ent

Goal

High

Low

Time spent on value added activity

Before going to market

ProcurementProcess

Developing requirements that

shape markets and the supply base to

Government

Improving contract and supplier management

capability through application of new

standards and capability

Simplifying process and reducing

turnaround times & supplier bid costs

Before

Contract Management – Part of our DNA

Achieving better results from public funded bids 3

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Why are we doing it?

Delighted customer

Transparency of performance data

CM portal, with shared

customer interface

Contract savingsRisk management and

business continuity best practice

Benchmarking of costs across contracts and departments

Transition to better value contracts/

frameworks

Standardised and on line

CM resources reducing CM

time

VFM contract variations linked with

organisational priorities

Improved Supplier Performance

Stringent Performance

reporting

MI and best practice sharing

across contracts and

suppliers

Strong SRM and CM links

across SO and categories

CM portal, with shared

customer interface

Benchmarking of costs across contracts and departments

Transition to better value contracts/

frameworks

Standardised and online CM

resources reducing CM

time

Value for money (VFM)

contract variations linked with

organisational priorities

Improved supplier performance

Stringent performance

reporting

Management information (MI)

and best practice sharing

across contracts and

suppliers

Strong supplier relationship

management (SRM) and

contract management

(CM) links across supplier organisations

and categories

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Contract Managers – Pillar (Tier 1)

Contract Managers – Service Operations (Tiers 2 and 3)

IACCMExpert*

IACCM Expert tbc*

IACCM Expert*

IACCM Expert*

IACCM Expert*

* International Association for Contract and Commercial Management (IACCM) training to Expert Level for Commercial Contract Management and Supplier Relationship Management** IACCM and bespoke courses through Civil Service Learning

IACCMExpert*

Commercial Awareness and Negotiation Training**

Commercial Awareness and Negotiation Training**

AC

TIV

ITIE

S

Review deliverability of the contractual provisions

• Scope• Payment Regime• Key performance

indicators (KPIs)• Operational CM• Customer feedback• Supplier reporting• Governance• Escalation / dispute

resolution• Benchmarking and

VFM• Exit provisions

Before contract award:

Review deliverability of proposals with the supplier

Agree split of roles and responsibilities between customer and supplier

Resource and mobilise CM function

• Budget• Recruitment• Training• Objective-setting

Pre-Procurement

Set up internal CM documents and systems•CM operations manual•CM planner•Contract budget monitoring•Contract change controls •Risk register•Issues log•Lessons learned log•Continuous improvement plans•Repository for contract and procurement documentation (filing system)•Contingency and business continuity plans•Benefits capture•Client meetings and governance structure

Procurement/ Mobilisation of CM

Function

Agree with supplier•Process maps for contracted provision•Customer and supplier roles and responsibilities•Performance monitoring regime and criteria: common understanding of scope, KPIs and reporting requirements•Processes for complaints, escalations and dispute resolution•Triggers for payment and incentive regime •Meetings: governance, agenda, terms of reference•Change control process and forms•Customer satisfaction surveys process•Contingency and continuity plans•Exit plan

Implementation: CM Set Up

• Operational management and administration (3.0)

• Supplier performance monitoring (3.1)

• CM budget monitoring (3.2)

• Change control and benefits realisation (3.3)

• Escalations and disputes (3.4)

• Benchmarking and VFM (3.5)

• Supplier relationship and continuous improvement management (3.6)

• Client relationship management (3.7)

• Risk and business continuity management (3.8)

Exit, Transition & Review

• Finalise and implement the exit plan

• Ensure handover information is captured from supplier

• Conduct soft market testing

• Ensure gathered lessons learned and soft market testing feed into future procurement / re-procurement

Delivery: CM

• Supplier providing maximum provision for minimum cost

• Reduced time input required from the client

• Proactive CM > no need for fire-fighting

• Transition to re-provision

• Market intelligence and previous lessons captured, informing future provision

• Exit plan• Agreed re-

procurement • Updated

specificationOU

TP

UT

S

N.B. ensure these are in place for existing contracts

OU

TC

OM

ES

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Contract Management (CM) Standards Overview

• Customised CM systems, based on common standard – optimising contractor performance while minimising contract and CM costs

• Common understanding of contracted provision between customer and supplier

• Ability to hold the supplier to account for delivery of contracted provision

• Robust regime for CM governance, performance monitoring and budget control

• CM documentation and systems agreed with supplier

• A fit for purpose contract • A fit for purpose CM

function• Continuity between

procurement to delivery stages

• Signed contract• CM function budget and

scope agreed• CM function in place

• Suite of contract specific CM documentation and systems (as listed above)

• A contract that is fit for purpose, aligned to client organisation priorities and easy to manage

• Robust draft contract documentation

Contract Management Implementation

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If you have any questions about the CCS contract management team or the use of Contract Management Standards and related documentation please contact:

Vicky Ladizhinskaya

Senior Commercial Manager

Email: Victoria.ladizhinskaya@crowncommercial.gov.uk

Mobile: 07887 830 893

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