One of the most overlooked areas in procurement is in the development of performance based processes. We spend countless hours preparing a Request For Proposal (RFP), creating a well-tuned negotiations strategy and selecting the supplier based on the work they achieved in the acquisition process. We create a Master Professional Agreement and negotiate from a contract. And then we let suppliers off the hook by constructing a poorly written Statement of Work that fails to detail how the supplier actually needs to complete the work. Remember, if you specify the wrong tasks, the supplier still gets paid.
In this two-part session, you will learn the key elements of good PSAs and SOWs. Whether you have been in the business one year or 20 years, you need to reinforce these long forgotten skills.
Topics of Discussion
•Create a Master Professional Services Agreement that
-sets out all of the general administrative terms between the parties
-provides for the needs of the customer
-is legally complete and meets special circumstances
-can be used with a wide variety of suppliers
-creates a uniform approach to manage consultants
•Draft Statements of Work that
-properly describe the objective of the exercise
-clearly state the details
-create milestones schedules
-specify payments that are dependent upon performance
-give the project lead control over the process
-eliminate “weasel” words that allow suppliers to escape responsibility
-cap and control costs
-reduce scope creep
Mike Ushijima was in private general legal practice for nearly 30 years. Mike is currently IT procurement administrator for Pactiv Corporation, a 3-billion-dollar specialty packaging manufacturer whose primary consumer brand is Hefty. He is responsible for drafting and negotiating all contractual matters relating to IT acquisition and telecom services. He has
drafted and maintains all standard IT contracts for Pactiv. Additionally, Mike has IT experience as MIS for a publishing company and a disaster recovery company.