Post by jonrojas on Sept 1, 2021 14:04:48 GMT
Scenario #1: Go/No Go Analysis
What are the major (obvious and not so obvious) risks of this contract?
A: There are a lot of pieces that need to fall in place in a very short period of time. We risk wasting a lot of time, money, and other resources if we can't meet the mile stones that they are asking for. This can hurt the reputation of Fedcap and Easterseals if we can take on this contract and do not deliver which in turn can prevent us from getting more contracts in the future. Especially Easter Seals as they are front facing end of that region for Fedcap.
What should be done early to ensure that the contract does not fail?
A: A system such has Fedcap Cares needs to be acquired and initiated as soon as possible. Being that it is a mile stone contract, monitoring the metrics is going to be really crucial for monitoring performance and knowing when you have achieved said mile stone. Research needs to be done on recruiting opportunities in the area as the last provider failed to recruit enough participants to make the milestones that they needed. Fedcap is already involved in multitude of training services. I would reach out to William Edwards from the kitchen at 210 East 43rd street to understand what goes into to running a kitchen and learn more about the facilities training happens there as well. Having an understanding of what goes into these training programs will help me to better understand what is needed to start one. It wouldn't hurt to reach out to the Engagement department to see what can be about promoting these services to the right demographics to sustain the contract. I would also look into mirroring how these programs are run due to their success and the short time frame to get the services up and running. Looking for the talent to help run this program as soon as possible will be crucial.
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?
A: Everything would lie in the metrics for this situation. Everything throughout the process needs to be added into the metric tracking system so that it can be properly monitored. Retention rates are going to be really important as ensuring 6 months of employment is one of the milestones that we need to reach for this contract. Collecting on the funds will be critical as well as delays in receiving the funds can hurt the program overall. Establishing relationships with the various city/state counterparts and with vendors for the area will be important as well. This could all be tracked with a program such as Fedcap Cares as I stated earlier. Funding for this tracking method will also have to be considered.
How can you negotiate this contract to mitigate as much risk as possible?
A: I would ask for a delay in the start time of the contract. Even one or two months more could make a world of a difference in regards to getting the program up and running. Some sort of way to mitigate the costs for the startup and potential delay in payment from contract would help a lot as well.
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Scenario #2: Fraud, Control and Compliance
Was a fraud committed? Are there any compliance issues?
A: While there it is not clearly stated that fraud was committed, it does seem like that there was something going on with the money on the backend. The actions such as personalized holiday gifts and going out for drinks and food at an expensive place does not help matters any.
What were the risks involved with this contract?
A: It seems that some research needed to be done on who was running the program to begin with. The city counterpart is an important person in the relationship between the city and Fedcap with this contract. There needs to be a strong control over the finances to make sure that bills are being paid and services can continue to run. There is also a reputational risk if this program fails and makes Fedcap look bad to the city. It could hurt future contract opportunities.
How could you have mitigated them?
A: The financial state of the program should of been looked at before we continued on with trying to take on that contract. I also would make sure that not all of the eggs are the city's basket. It seemed a lot of control was that in city counterpart's hands and there could of been a back up put in place just incase he wasn't available. That back up could of been brought up by Fedcap to ensure that both sides have a say in what is happening with the day-to-day.
What specific controls should we have implemented?
A: There should of been a close eye on the finances. I would of initiated clear protocols for how to deal with billing moving forward with the contract. What the contract money is being spent on is very important and someone shouldn't be able to just spend the money as they see fit. I would have also kept a close eye on who else was involved in the contract from the city's side. It doesn't bode well to find out months later that there is another not for profit providing the same services that you are working towards and then the city counterpart suddenly resigns without a word.
Are there any lessons learned?
A: Be wary of who you will be involved with when you taking on a contract. Being disorganized can destroy structure just as quickly as it is built. Bad outcomes with contracts hurts Fedcap in the long run and it was unfortunate that the city counterpart caused the program to collapse.
What are the major (obvious and not so obvious) risks of this contract?
A: There are a lot of pieces that need to fall in place in a very short period of time. We risk wasting a lot of time, money, and other resources if we can't meet the mile stones that they are asking for. This can hurt the reputation of Fedcap and Easterseals if we can take on this contract and do not deliver which in turn can prevent us from getting more contracts in the future. Especially Easter Seals as they are front facing end of that region for Fedcap.
What should be done early to ensure that the contract does not fail?
A: A system such has Fedcap Cares needs to be acquired and initiated as soon as possible. Being that it is a mile stone contract, monitoring the metrics is going to be really crucial for monitoring performance and knowing when you have achieved said mile stone. Research needs to be done on recruiting opportunities in the area as the last provider failed to recruit enough participants to make the milestones that they needed. Fedcap is already involved in multitude of training services. I would reach out to William Edwards from the kitchen at 210 East 43rd street to understand what goes into to running a kitchen and learn more about the facilities training happens there as well. Having an understanding of what goes into these training programs will help me to better understand what is needed to start one. It wouldn't hurt to reach out to the Engagement department to see what can be about promoting these services to the right demographics to sustain the contract. I would also look into mirroring how these programs are run due to their success and the short time frame to get the services up and running. Looking for the talent to help run this program as soon as possible will be crucial.
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?
A: Everything would lie in the metrics for this situation. Everything throughout the process needs to be added into the metric tracking system so that it can be properly monitored. Retention rates are going to be really important as ensuring 6 months of employment is one of the milestones that we need to reach for this contract. Collecting on the funds will be critical as well as delays in receiving the funds can hurt the program overall. Establishing relationships with the various city/state counterparts and with vendors for the area will be important as well. This could all be tracked with a program such as Fedcap Cares as I stated earlier. Funding for this tracking method will also have to be considered.
How can you negotiate this contract to mitigate as much risk as possible?
A: I would ask for a delay in the start time of the contract. Even one or two months more could make a world of a difference in regards to getting the program up and running. Some sort of way to mitigate the costs for the startup and potential delay in payment from contract would help a lot as well.
-------------------------------------------------------------------------------------------------------------------
Scenario #2: Fraud, Control and Compliance
Was a fraud committed? Are there any compliance issues?
A: While there it is not clearly stated that fraud was committed, it does seem like that there was something going on with the money on the backend. The actions such as personalized holiday gifts and going out for drinks and food at an expensive place does not help matters any.
What were the risks involved with this contract?
A: It seems that some research needed to be done on who was running the program to begin with. The city counterpart is an important person in the relationship between the city and Fedcap with this contract. There needs to be a strong control over the finances to make sure that bills are being paid and services can continue to run. There is also a reputational risk if this program fails and makes Fedcap look bad to the city. It could hurt future contract opportunities.
How could you have mitigated them?
A: The financial state of the program should of been looked at before we continued on with trying to take on that contract. I also would make sure that not all of the eggs are the city's basket. It seemed a lot of control was that in city counterpart's hands and there could of been a back up put in place just incase he wasn't available. That back up could of been brought up by Fedcap to ensure that both sides have a say in what is happening with the day-to-day.
What specific controls should we have implemented?
A: There should of been a close eye on the finances. I would of initiated clear protocols for how to deal with billing moving forward with the contract. What the contract money is being spent on is very important and someone shouldn't be able to just spend the money as they see fit. I would have also kept a close eye on who else was involved in the contract from the city's side. It doesn't bode well to find out months later that there is another not for profit providing the same services that you are working towards and then the city counterpart suddenly resigns without a word.
Are there any lessons learned?
A: Be wary of who you will be involved with when you taking on a contract. Being disorganized can destroy structure just as quickly as it is built. Bad outcomes with contracts hurts Fedcap in the long run and it was unfortunate that the city counterpart caused the program to collapse.