The Secret Sauce of Program Management Is the Best Defense to Mitigate Contract Risk

Abstract

"The author has written this paper to defend and strengthen the use of government initiatives, industry, and academia risk mitigation measures that prevent divergence from successful Program Management (PM) with the framework of Contract Management (CM), and the integration of Earned Value Management (EVM), and Agile methodologies and practices. On December 14, 2016, Public Law No: 114-264, the “Program Management Improvement Accountability Act [PMIAA]” was signed into law (H.R. 114-637S.1550, 2016). This law was enacted to improve program and project management practices within the federal government by requiring agencies to conduct [document] annual portfolio reviews of “high risk” programs that the Government Accountability Office (GAO) identified. Additionally, the PMIAA establishing a Program Management Improvement Officer (PMIO), who will “assess the quality and effectiveness of program management” (2016). These measures will highlight the possibilities of future performance growth, increased demand, and technological advancements in the Defense Industrial Base (DIB) (DoD, 2022). Additionally, improvement in workforce acquisition career paths and skill levels (H.R. 114-637S.1550, 2016). At the onset, the “delivery of performance [will be] at the speed of relevance” (Mattis, 2018, p. 10).

Effective and efficient PM requires a solid foundation of knowledge and the framework of CM, with the integration of EVM, and Agile methodologies and practices. These disciplines will provide the capabilities required to maximize innovation, mitigate contract risk, and develop the workforce that supports the proper stewardship of taxpayer dollars.

In February 2022, the National Defense Industrial Association reported that U.S. national security interests are at risk given the declining health of the DoD’s supply chain, surge readiness, and production capacity. It is essential to communicate and collaborate with all stakeholders to develop and grow the DIB and engage the workforce with the right people, processes, and tools at the right time. "