Implementing Effective Contract Negotiation and Relationship Management Strategies

Implementing effective contract negotiation and relationship management strategies 201

Learning Objectives How to take software requirements from ancillary items in an old RFP to living, breathing scopes of work How to navigate changes to an already contentious contract How to build better relationships between vendors and contract managers

A Note on Governance This presentation assumes the roles in the Continuum have been delineated through good contracting and that responsibilities for each party are clear so that these processes can be carried out by the appropriate person. Here is an example of a breakdown of who may or may not be involved in the processes discussed in this presentation: Process Step Parties involved Requirement Writing HMIS Lead, CoC Lead, HMIS Participating Agencies, Other interested stakeholders Procurement/Selection HMIS Lead, CoC Lead, HMIS Participating Agencies, Other interested stakeholders, Attorney(ies) Contract Negotiation/Execution HMIS Lead, CoC Lead, Attorney(ies) Contract Monitoring Administration Project Management HMIS Lead

Contracting Life Cycle procure monitor execute

procure execute monitor Procurement means to purchase a new system based upon an RFP, RFQ, RFQQ, or other type of official solicitation Brainstorm: Who can purchase office supplies in your agency? Who can hire people? Who can sign contracts? Search out the people that can help you solicit and purchase software Get examples of past solicitations The harder the process, the better! It means more oversight and, ultimately, more teeth!

procure execute monitor Write measureable requirements Tech Support becomes live person email/phone, 7a 7p, no answering machine, monthly response repts that include Details for each report becomes PersonID, HHID, Project Name, Start, Exit, Living, Dest, etc. with each canned rpt Ad Hoc Reports becomes Unlimited access to all data in database (including meta data), on demand, live, all users, etc.) Request responses in terms of what performance looks like to respondent Use the same document to score & use the scoring process to game out performance criteria Transfer requirements and responses to contract SOW

Learning Objective: Living Scopes of Work Learning Objective: Living Scopes of Work This means three-ish things: 1. Requirement is measureable 2. Measurement is in vendor s own words 3. Money is tied to completion for each requirement 1. Living comes from reviewing the SOW each month with each invoice 1. Pay for requirements that are completed 2. Hold back payment for requirements that are not pay once completed, even if months down the road Large Group Discussion: How does this play out differently in different CoC jurisdictions (sm, md, lg)?

procure execute monitor If you can t procure: Dig out that requirements document that guided your last search/purchase process Update to current requirements Detail each data element Detail each report you expect Detail each service option you think you have or need Develop an MOU between Vendor and HMIS Lead, or HMIS Lead and CoC Lead, depending on HMIS Lead s role to the vendor Negotiate terms of the MOU just like you would a contract All this work can transfer once you can procure again

procure execute monitor Execute means to negotiate and put into active, legal status an agreement that is based upon mutually agreeable terms, conditions and scopes of work/service level agreements. This can be a new contract or a contract amendment This could also be an MOU non legally binding but good faith if a new or amended contract isn t doable If a clear copy of the terms and conditions and scope of work is what is responded to during the procurement process, then executing the contract should be a straight-forward exercise

procure execute monitor Too often, what is submitted as the requirements for the software product during the procurement effort is then ignored in favor of a software provider s basic service level agreement during contract negotiations Too often, a basic service level agreement from a software provider requires very little by way of performance measurement and requirements for either party

Learning Objective: Contentious Contracts Learning Objective: Contentious Contracts Audience Participation Opportunity What are some things that you ve argued about? What are some things you haven t argued about? Every organization has something that works right Appreciative Inquiry Handbook, 2nd ed. How can you build upon what is working and apply it to what isn t? Example #1: What s working: ticket tracking What s not working: management not involved/operations fails Solution: can you apply the ticket system to all issues, even not software-related ones?

Learning Objective: Contentious Contracts Learning Objective: Contentious Contracts Example #2 What works: Weekly calls with Management go great seems like they will address issues of high priority What doesn t: Tickets are unresolved for months; reports are late or non-existent due to outstanding bugs Solution: include your own analysis of the outstanding tickets as an agenda item on the weekly calls Establish a clear, performance-based contract from the beginning to avoid contentious contractual issues entirely Large Group Discussion: Community Examples

procure execute monitor If you can t execute a new or amended contract or MOU: Ask about your procurement/purchase power Read your current contract. What can you monitor against? Ask your contracts department how to desk monitor versus on site monitor A desk monitoring is a low-key option that might help establish a relationship between you and your vendor that doesn t already exist May lead to onsite monitoring or other monitoring protocols in the long run

procure execute monitor Monitoring means checking in on contractual agreements for compliance Monitoring can also mean helping a contractor to succeed by creating space for success The Two Hat conundrum: Hat #1: The Enforcer: compliance-based check in on contractual items Hat #2: The Helper: constructively, pre-emptively working through shortcoming(s) to ensure all parties are doing what they should be and creating space for success

procure execute monitor Establishing a monitoring protocol (or following through on one that already exists) Goes a long way towards implementation success Encourages less contractual conflict Sets up a pattern of oversight & obligation Helps create better contracts in the future (because there will be things you wish you could monitor if only it was written down) With a performance-based contract, monitoring is built in because every invoice payment becomes a chance to monitor

Learning Objective: Relationship Building Learning Objective: Relationship Building Think of your relationship like an ATM Starting balance is positive (for both) Issues create withdrawals Successes create deposits There is a human behind the machine Small Group Exercise Get together with peers in the room (same size CoC, same vendor, etc.) Do a pro/con list what deposits have you made to the relationship? What withdrawals? Which side is bigger? PS: Money is a deposit even with a hypothetical ATM

Learning Objective: Relationship Building Learning Objective: Relationship Building Small group report-out What does this mean for our relationships? Each side must invest continually Monitoring that creates space for success can thwart potential conflict if employed early enough Don t let the small fish get away too many small fish ends up creating a much larger fish down the road Fry em all Write it down in your words and let them write it down in theirs then use those words over and over and over and over come back each month

procure execute monitor If you can t monitor Track service requests and meet regarding resolution/outstanding issues Read your contract and ask questions Ask what you can do for your vendor that would help them be more successful Ethical/legal obligations: are there rules that are being violated by not engaging in a thorough monitoring of contracts using public money for purchase Can you establish a new purchase or execute an amendment with clear requirements for monitoring purposes?

Additional Resources Vendor Contracting 101: https://nhsdc.org/wp- content/uploads/2018/04/Session-8A-Vendor- Contracting-101-MSchwartz-MMcEvilley-RBurger.pdf Vendor Relations and Changing Software: https://www.hudexchange.info/resources/documents/ HMISVendorRelations_Presentation.pdf Managing Vendor Relations & HMIS Contracting: https://www.hudexchange.info/resources/documents/ ManagingVendorRelationsAndContracting.pdf HMIS Cost Estimation Guidelines: https://www.hud.gov/sites/documents/DOC_14249.PD F