Mod Contracts: Successfully Tendering and Managing Contracts

Course overview

What the programme is about

The MoD is a key market for many suppliers, particularly under the current economic constraints. Winning and retaining contracts in the defence sector is becoming increasingly challenging. A number of seismic changes have taken place in the function of 'acquisition' within MoD. In parallel there has been an increasing requirement for MoD suppliers to deliver tangible VFM and enhanced relationships, including effective partnering.

This seminar will provide you with an insight to the key processes and themes impinging on the changing MoD buyer-seller dynamic.

Why you should attend

This two-day comprehensive programme has been designed to give you the competitive advantage when tendering with the MoD, to ensure you win and retain your contracts.

It will:

• Deliver insights into commercial and contractual understanding, including pricing, and the industry's approach
• Refresh and explain key terms and conditions used, including DEFCONs
• Explore the skills and approaches necessary to optimise relationships between Industry and the MoD
• Provide a forum to explore and reflect on the positive and negative relationships that develop between MoD and strategic supply chain over the long term

Who should attend?

Everybody that depends upon suppliers or is responsible for choosing suppliers or putting contracts in place with suppliers will benefit from attending this programme:

• Business development managers
• Bid managers
• Commercial managers
• Contract managers
• Budget holders
• Supply chain managers
• Functional heads of department
• Office managers
• Project managers
• Procurement managers

Programme - Day 1

Day one

Overview of MoD acquisition and tender process

• Positive actions suppliers can take during the current 'austerity'
• Ministry of Defence procurement structure including DE&S
• What is value for money? And the 12 themes important to the MoD
• Smart acquisition; salient features – and benefits to suppliers
• Identifying tendering opportunities in the MoD environment
• The Acquisition Operating Framework and certainty of terms
• The MoDs' perspective on partnering

Exploration of self-assessment tool for managing MoD contract risk

• Basic principles of MoD contracts, accountabilities, obligations and remedies
• Significance of some of the most common terms
• Payment
  • Acceptance and testing
  • Specification
  • Insurance
  • Limit of liability
  • Right of audit
  • Damages through life support
  • Intellectual property rights
• Explore the impact of partnering on contractual relationships
• Avoiding unintended liabilities (flowdown to subcontractors)
• Utilise a self-assessment tool for managing commercial/MoD contract risk

Focusing on the MoD needs and aligning your response in their 'language'

• MoD values and principles – informed by examples
• Special circumstances such as proposals for non competitive situations
• Mirroring the language and structure of the MoD's PQQs and ITTs
• The value of powerful executive summaries in successfully tendering for MoD contracts
• The biggest mistakes made when writing proposals and tenders for the MoD
• Pitfalls of language – including the Flesch index and glossary of MoD terms
• Eleven crucial and proven facts of successful proposals and tenders for the MoD
• MoD presentation and post-tender stage: negotiation or clarification?

Pricing and payment models used by the MoD

• Pricing strategies impacting on MoD tenders
• The QMAC principles and practice – and commercial opportunities
• NAPNOC (pre-contract) pricing
• Setting prices – 'firm' and 'fixed' prices and related indices
• Target cost incentive fee contracts – and commercial risk profiling
• Anchor milestones from a commercial perspective
• Vesting, title and commercial risk
• Invoicing and payment profiles to mutually benefit supplier and MoD

Programme - Day 2

Day two

Key post contract challenges: DEFCONs – progress, termination and delay

• Introduction to the model form of contract which underpins MoD acquisition
• Breach of contract
• Failure to complete
• Liquidated damages – cost impact
• Force majeure
• Key personnel
• Contract management
• Review meetings
• Termination provisions – the six key DEFCONs every supplier must know

Intellectual property rights – a commercial perspective

• How suppliers can optimise commercial management of IPR with MoD
• Directorate of Intellectual Property Rights
• Patents and inventions, trademarks, designs and copyrights
• Background and foreground technology
• Software and escrow agreements
• International collaboration
• Subcontracting for IPR
• Actual examples of IPR clauses and guidance on how to commercially interpret them

Strategies to manage MoD contractual obligations and enhance trading relationships

• Post contract award strategies in the context of your organisation's business plans
• Identifying opportunities to enhance revenue and mitigate risk:
  • Interpretation of contractual obligations and liabilities
  • Continuous improvement and innovation
  • Value Engineering Change Proposals
  • Managing contract change
  • Demonstrating MTBF; MTTR
  • Managing the supply chain
  • Carbon footprint considerations and BS8903

Back to business – your business

• Final session to discuss and agree what the participants are going to implement in their own business.