BBA 4326 Unit VII Assessment

BBA 4326 Unit VII Assessment

QUESTION 1

Recall the quote from the unit lesson; Garret (2015) states “If the contract risk and opportunity assessment is unfavorable, the Contract Manager in conjunction with the Project Manager may search for ways to improve the opportunity and/or reduce the risk prior to contract award.” Using the contract management risk and opportunity assessment tool, how is the determination made that the contract risk and opportunity assessment is unfavorable?

The Contract Management Risk and Opportunity Assessment Tool or CMROAT, is a tool that is designed for both buyers and sellers of various organizations to aid in assessing the possible risks and opportunities associated with a pending, potential, or actual contract (Garrett, 2015). Over the years, since its induction in 1992, “CMROAT has evolved as a tool designed to provide contract and project, preaward or postaward, risk and opportunity assessment” (Garrett, 2015, p. 203). The determination of whether or not a contract risk and opportunity assessment if favorable or unfavorable is made through a four-step process using the CMROAT. Since there are two versions of CMROAT, step one is to simply choose the appropriate version to use (for buyers or sellers) and to complete the survey. Step two is to evaluate the risk through a series of ten questions regarding Risk Analysis. Step three is to then evaluate opportunity, also accomplished through a series of ten questions on Opportunity Analysis. Finally, step four is to map the evaluated risk and opportunity to the matrix. Scores from the risk and opportunity questions are plotted on the Risk and Opportunity Matrix and the location of the scores helps in determining the extent of opportunity and the level of risk that will be required to be managed in order to ensure that quality products, services, or solutions are delivered on time and at a reasonable price in order to determine whether or not an assessment is favorable or unfavorable (Garrett, 2015).

Reference

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.

QUESTION 2

The last step in the contract management maturity model for both buyers and sellers is the contract closeout. How is this step different for buyers and sellers? What should sellers do at this level that buyers do not need to do?

The Contract Management Maturity Model (CMMM) provides organizations with a visual tool designed to aid in assessing the six major steps that must be accomplished when either buying or selling a product, service, or integrated solutions within both the private and public business sectors. The maturity levels reflected within the model provide an organization with the ability to assess its level of capability within each of the six major steps encompassed in the organizations buying or selling process. The CMMM was developed through the adoption of the six-phase contract management model established by Gregory Garrett. The model established by Garrett provided a baseline for the project management process for both buyers and sellers that could be expanded on when developing the contract management maturity model. From the buyer’s perspective, the CMMM consist of six key process areas, which are: procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract closeout. Within the CMMM, the six key process areas from the sellers perspective are: pre-sales activities, bid/no bid decision making, bid or proposal preparation, contract negotiation and formation, contract administration, and contract closeout. Within the six steps from both buyers and seller perspective, the final step is contract closeout. For both buyers and sellers, contract closeout is described as the completion and settlement of the contract, including resolution of any open items (Garrett, 2015). Garrett (2015, p. 192) clearly states that “it should be noted that the contract management key process areas of Contract Administration and Contract Closeout are identical for both the buyer and seller-that is, both the buyer and seller perform identical contract administration and contract closeout functions during the management of a contractual relationship.” Therefore, according to Garrett (2015), the contract closeout step for both buyers and sellers is the same and does not differ and sellers are not required to do anything more than buyers within this step.

Reference

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.