Post by Lori Hebert on Sept 1, 2021 13:12:47 GMT
Scenario #1: Go/No Go Analysis
Questions:
1. What are the major (obvious and not so obvious) risks of this contract?
Reputational and financial are the obvious major risks to this contract. There is also the insurance risk due to the liability of training and hiring individuals with criminal backgrounds. These would all need to be planed for and managed.
2. What should be done early to ensure that the contract does not fail?
First, I would look at the previous contractor’s strengths and weaknesses to draw a plan. I would also work with Corporate Services to develop risk analysis that includes job market breakdown (employee or employer driven), companies hiring individuals with criminal backgrounds and qualifications, program relationships within the Culinary and Facilities market. A mitigation plan should also be completed to identify the risks known and unknown. An electronic data management system would also be something I would implement early in the planning, is there a platform internally and if not identify the costs associated with implementation.
3. What are some of the tripwires that the program director needs to be able to monitor should the company move forward? How will that measurement occur?
Building a supervision model for performance accountability is key along with implementing clear expectation for workforce and program participants. Clearly identifying daily workflow and data collection, measuring metrics and outcomes weekly, monthly, quarterly, and annually.
Having standardized operating procedures, policy and safety manuals and a code of ethics in place prior to launch will help mitigate performance risk. Having a workforce and leadership that can work in the ambiguity and pivot as necessary is key in all new contracting.
Preparing MOU (Memorandum of Understanding) with companies for partnership would also mitigate potential job placement performance issues.
4. How can you negotiate this contract to mitigate as much risk as possible?
I would be prepared with prior contractor information, market analysis and propose a plan based on reality of the contract and what is needed to exceed the criteria. That plan would include a clear path to engagement with participants, companies, and other community services. I may also negotiate and increase in indirect costs to cover increased corporate services leveraging their experience along with ensuring liability coverage is increased
Scenario #2: Fraud, Control and Compliance
Questions:
1. Was a fraud committed? Are there any compliance issues?
I am not sure if this is fraud, however there is a definite violation of ethics. If this is Fedcap we are talking about, any customary courtesy must be legitimate, having a lavish and expensive lunch is not considered legitimate and should have been brought to leadership immediately, before attending! The next issue is the gifting, Fedcap has a no gifting policy and that should have also been escalated immediately.
There are clear compliance issues with the code of conduct and with accounting. When proper coding is not used, invoices are rejected and the revenue still increases, that is a red flag that should be immediately reviewed for quality control measures.
2. What were the risks involved with this contract?
With any government contract there is reputational and financial risk. There can also be ethical risks with relationship and boundary management. Without setting clear expectations and protocols with the funder, the workforce and management ethical issues such as this can arise. It appears that a lack of oversight with this contract ultimately led to a large loss of potential revenue.
3. How could you have mitigated them?
From the invitation to the dinner, the ethics and conflict of interest policy should have been covered with the city counterpart, setting clear expectations for the working relationship between the funder, workforce, leadership, and corporate services. I would also have included senior management in these conversations to ensure clear communication and oversight.
I think there could have been some salvage of this contract as well if there was oversight on performance and revenue. By working with the city to set clear standards and performance measures we would proactively mitigate the risk and avoid the potential loss. Doing nothing and being complacent led to the loss of this business.
4. What specific controls should we have implemented?
Quality control should be implemented immediately on all new contracts, from performance to revenue. A billing supervisor reviewing the receivables would have seen the discrepancy in billing to revenue. If there was a clearly defined Key Performance Indicator in place, managers and leadership could have identified the decline in billing quicker than “over time”. Clear expectations, accountability and quality control could have mitigated the risk and possibly salvaged the contract.
5. Are there any lessons learned?
I think that is how any organization continues to operate, by learning from mistakes and using them to learn and grown. I am a firm advocate for not only setting clear expectations but also putting appropriate training in place for mitigating risk. Ethics and ethical boundaries should be part of every program training regimen along with ensuring all company employees understand the policies in working the mission.
Questions:
1. What are the major (obvious and not so obvious) risks of this contract?
Reputational and financial are the obvious major risks to this contract. There is also the insurance risk due to the liability of training and hiring individuals with criminal backgrounds. These would all need to be planed for and managed.
2. What should be done early to ensure that the contract does not fail?
First, I would look at the previous contractor’s strengths and weaknesses to draw a plan. I would also work with Corporate Services to develop risk analysis that includes job market breakdown (employee or employer driven), companies hiring individuals with criminal backgrounds and qualifications, program relationships within the Culinary and Facilities market. A mitigation plan should also be completed to identify the risks known and unknown. An electronic data management system would also be something I would implement early in the planning, is there a platform internally and if not identify the costs associated with implementation.
3. What are some of the tripwires that the program director needs to be able to monitor should the company move forward? How will that measurement occur?
Building a supervision model for performance accountability is key along with implementing clear expectation for workforce and program participants. Clearly identifying daily workflow and data collection, measuring metrics and outcomes weekly, monthly, quarterly, and annually.
Having standardized operating procedures, policy and safety manuals and a code of ethics in place prior to launch will help mitigate performance risk. Having a workforce and leadership that can work in the ambiguity and pivot as necessary is key in all new contracting.
Preparing MOU (Memorandum of Understanding) with companies for partnership would also mitigate potential job placement performance issues.
4. How can you negotiate this contract to mitigate as much risk as possible?
I would be prepared with prior contractor information, market analysis and propose a plan based on reality of the contract and what is needed to exceed the criteria. That plan would include a clear path to engagement with participants, companies, and other community services. I may also negotiate and increase in indirect costs to cover increased corporate services leveraging their experience along with ensuring liability coverage is increased
Scenario #2: Fraud, Control and Compliance
Questions:
1. Was a fraud committed? Are there any compliance issues?
I am not sure if this is fraud, however there is a definite violation of ethics. If this is Fedcap we are talking about, any customary courtesy must be legitimate, having a lavish and expensive lunch is not considered legitimate and should have been brought to leadership immediately, before attending! The next issue is the gifting, Fedcap has a no gifting policy and that should have also been escalated immediately.
There are clear compliance issues with the code of conduct and with accounting. When proper coding is not used, invoices are rejected and the revenue still increases, that is a red flag that should be immediately reviewed for quality control measures.
2. What were the risks involved with this contract?
With any government contract there is reputational and financial risk. There can also be ethical risks with relationship and boundary management. Without setting clear expectations and protocols with the funder, the workforce and management ethical issues such as this can arise. It appears that a lack of oversight with this contract ultimately led to a large loss of potential revenue.
3. How could you have mitigated them?
From the invitation to the dinner, the ethics and conflict of interest policy should have been covered with the city counterpart, setting clear expectations for the working relationship between the funder, workforce, leadership, and corporate services. I would also have included senior management in these conversations to ensure clear communication and oversight.
I think there could have been some salvage of this contract as well if there was oversight on performance and revenue. By working with the city to set clear standards and performance measures we would proactively mitigate the risk and avoid the potential loss. Doing nothing and being complacent led to the loss of this business.
4. What specific controls should we have implemented?
Quality control should be implemented immediately on all new contracts, from performance to revenue. A billing supervisor reviewing the receivables would have seen the discrepancy in billing to revenue. If there was a clearly defined Key Performance Indicator in place, managers and leadership could have identified the decline in billing quicker than “over time”. Clear expectations, accountability and quality control could have mitigated the risk and possibly salvaged the contract.
5. Are there any lessons learned?
I think that is how any organization continues to operate, by learning from mistakes and using them to learn and grown. I am a firm advocate for not only setting clear expectations but also putting appropriate training in place for mitigating risk. Ethics and ethical boundaries should be part of every program training regimen along with ensuring all company employees understand the policies in working the mission.
