Step 1

In this step define:

•  The overall strategic objective for Contract Management;

•  The anticipated results and benefits of effective Contract Management;

•  The external constraints and departmental processes for Contract Management;

In carrying out analysis at this step, it is worth bearing in mind that the principal purpose for all Contract Management activities is that they enable the Parties to the Contract:

•  to meet their obligations,

•  to successfully deliver the outputs of the Contract;

•  to proactively anticipate future needs and issues;

•  to optimize the efficiency, effectiveness and economy of the Contract; and

•  to be flexible, adapt to change and seek continuous improvements while balancing cost and risk.

The anticipated results and benefits should include as a minimum:

•  meeting the requirement (the defence capability or business need) within Performance, Time and Cost parameters;

•  delivering profit to shareholders;

•  exploiting opportunities, managing risks and realising benefits.

Both the MOD and the Contractor will have to work within the constraints of the respective organisation's wider policies and procedures, their business and commercial strategies and plans, and their respective governance arrangements. These include:

•  policies and procedures for project and programme management;

•  authority and delegations to make decisions and accountability to senior line management (including assurance and approvals processes);

•  project specific Through-Life and Capability Management constraints and any planning constraints and assumptions;