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Martek Creates Cost Saving Contract Closeout Processes
Location: Washington Metropolitan Area
Services: Acquisition Support
After taking an inventory that included desk audits, Martek determined that the contract types were mixed between T&M, FFP, and CPFF which may require DCAA audits. It was also determined that a significant amount of the de-obligated dollars could be returned to the agency, while the balance had to go to the treasury
The market for experienced contracting professionals has made it very difficult to find reasonably priced specialists willing to work in an administrative function such as closing out contracts. Additionally, this agency required “secret” cleared personnel.
First the nature of the work was evaluated and the process broken down into its components. It was determined that many steps in the process do not require a contracting background. In many cases, someone with a customer service/administrative background could accomplish these actions. Examples of these include performing follow-up on requests for concurrences, data or information, status tracking, and general typing or record keeping. Martek then sourced qualified admin personnel with the task specific and security clearance requirements. These admin were then placed into a team with experienced contract specialists that could oversee the process and perform the duties more commensurate with their training and salary. The agreement was modified and a reduction in labor costs agreed to by both parties.
This change resulted in gains in several areas. First and foremost was that the closeout process did not suffer any degradation. The number of files closed remained constant while achieving a morale enhancement for the contract specialists by removing routine or mundane tasks from their daily activities. Even though the team consisted of four admin and one contract specialist instead of five contract specialist, the customer received the same level of service while preserving some of their budget for other uses, making this a cost effective measure.
Martek Global Services, Inc.
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