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Government & Public Sector

 
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IACCM Council Representatives
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THE IACCM PUBLIC SECTOR NETWORK

The purpose of the public sector network is to provide its members with insights to new trends and emerging practices in the fields of contract, commercial and relationship management. While these will be in the context of the public sector, they will draw from knowledge and ideas that are current and relevant in the private sector. A key goal is to improve the performance of public sector contracts and relationships.

The objectives will be met by sharing ideas, discussing challenges, exploring new directions and, where appropriate, initiating research or inviting experts to present on key topics related to contract, commercial and relationship management.

Meetings will be virtual (by phone or webinar) unless in specific cases there is an agreed wish to have physical meetings or workshops to develop specific initiatives.

 

Please take a minute to participate in the following survey https://www.surveymonkey.co.uk/r/IACCMPublicSector

 
 
Network Updates

Public Cloud in the IT Space - Cost of a Contract

Cloud has significant impact on the cost of Contract Creation and Negotiation. Data Processing and Security terms can be particularly difficult to negotiate, especially in the Public Sector Space. Pricing - especially where a good portion of Cloud is priced in a use-it-or-lose-it-model - can present a lot of customer concerns. Customizing the scope of the Contract to meet customer needs can prove beneficial, but given the lack of awareness, understanding, and knowledge of Cloud, it's not without a cost. Many customers still don't understand Cloud - this requires additional time explaining the ins-and-outs for customers in order to get them to buy Contracts where Cloud Service offerings and/or Cloud Professional Services are in scope. I will be interested to see how this changes years down the road. Perhaps it won't be so difficult to negotiate and create Contracts with Cloud. Hopefully more and more customers understand what they are buying and are familiar with the concept of Data Processing and Security as it relates to Cloud.

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Most Negotiated Terms Podcast and Survey

Our podcast explores some interim findings from this year's Most Negotiated Terms survey, which illustrate the topsy-turvy nature of the current business environment. Increased levels of disagreement, yet a trend towards greater harmony; continued focus on risk consequence, but supplemented by terms that better anticipate and manage uncertainty.

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Amendment vs. Change Order

My organization (public organization)has a new Procurement Leadership that is requesting that we (Buyers) issue contract amendments for change orders the Engineers (Project Managers) send in for additional work (increase in scope). I see this as change orders for the project and not amendments to the contract. We also have language in the contracts and the change orders follow this process, using the change order document provided in the contracts. I cannot seem to understand why we are doing an amendment for a change order. In my opinion, the scope is increasing but the work (project) is still the same, so there is no need for a contract amendment. Please can anyone provide an insight? Is it required that contract amendment be issued for, and in addition to change orders when there is an increase in scope?

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EXECUTIVE BRIEFINGA PROCESS FOR B2B PARTNERSHIPS:Designing to deliver capability across companies

Customers are increasingly demanding complex services and solutions from their suppliers. In response, B2B partnerships are being created, but that creates problems. The aim of this executive briefing is to provide a handrail process for consideration of how to build a partnership and drive it towards delivery. We look at identifying a design process and where problems and barriers will arise.

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Commercial Management Structure, Model, and Governance in Public Sector

Hi Everyone; Hope you and your loved ones are doing well and staying safe! We are in the process of Commercial Management Function establishment. We do have Material Management (subs: Planning and Inventory Control, Warehouse and Distribution), Project and Category Management (subs: Procurement (capital), procurement (operating)) which both department directly report to finance. How do you add the commercial management to this hierarchy?

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Justifying a commercial item in Defence Contracting

Hi all, Working in a UK Defence Company, we are relatively new to contracting with the U.S Department of Defence. We are attempting to justify our product as a Commercial Item under Paragraph 8 of the US DoD Guidebook for determining a Commercial Item. This pertains to our product being developed at our own expense and sold in substantial quantities to State and Local governments. The area for debate is the word 'State'. We have sold our product to foreign 'States' but not local U.S. State Governments, and this is proving to be the area of contention, the interpretation of the word 'State.' As part of our Bid submission we provided price justification which satisfied that the price we charged the government via a Prime Contractor was our established market price and this satisfied their approval to place a Purchase Order, so I am trying to establish the risk associated with the rights to cost and pricing data which is associated with Non-Commercial Items. Any help would be gratefully received.

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2020 Challenges in Partnerships

A survey among alliances & partnerships professionals in Europe and Asia resulted in 5 themes that these professionals see as their main challenges in their work for 2020. Except for the specific outside circumstances most of these themes are not new in 2020, yet appear to be continuing challenges in our profession. Some of the challenges the respondents see can be handled by a solid governance structure most by rigorous alliance management. A short article about the preliminary findings can be read here: https://www.petersimoons.com/2020/01/2020-challenges-in-alliances-partnerships/

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Agenda 2030 and public procurement driving it

Lately, I have come across strong initiatives in the Nordic countries that intend to drive Agenda 2030 and all it´s goals by embedding the content within the public procurement activities. As you know, the public sector is very large in my Country, Sweden, and I expect this move to have a fundamental effect on trade in general. For obvious reasons they (state, regional and local governments) are looking for insights and inspiration from us at IACCM. I do not know if I am an early observer (I am not first) or "the last one to figure it out". Regardless, I am interested in understanding if, and if so how, such initiatives are launched elsewhere in the world and a bit more "meat on the bones" if available. It would be very beneficial to me. Very best regards, Erik Nordling, IACCM Fellow

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Municipalities not required by law to indemnify a Vendor

During negotiations, municipal/city customers tell me they are not required to indemnify a vendor as required by state law. I'm not arguing the law, but (i) this does not seem fair while attempting to negotiate a fair contract and (ii) if this must be the way, does anyone have a great idea to provide a counter to this. Currently, I change our customer indemnity language to state "the Customer is responsible for its acts and omission etc....

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