Hooks and Bullets

Practical Contracts/Supplier Management Law

Spot Exercise "What’s Your UCC Quotient?"
A Brief intro into why we need things they didn’t teach in college, MBA school too Uniform Commercial Code (UCC) basics including

Goods versus services
The 4 requirements of a P.O to avoid personal liability
The 4 requirements of a contract
The 4 forms of purchasing authority
UCC listings (liens and searches)
The 7 obligations of an agent (it imposes a burden on you!)

More practical legal considerations

Robinson-Patman (how a price below a suppliers cost can be illegal)
Reciprocity
Oral contracts
Mirror image rule last shot principle

Ethics

Legal versus ethical considerations (Ethical Behavior is the law!)
Ethical practices and good faith
Land mines to avoid
Sample Ethics policies
Answering the suppliers question "Where do I have to be?"

Spot Exercise "Do We Have a Deal?"
Another familiar question, the answer to which may be different now that we know more Ethics

Legal versus ethical considerations (Ethical Behavior is the law!)
Ethical practices and good faith
Land mines to avoid

Spot Exercise "Legal Conduct vs. Ethical Behavior"
An interesting challenge

Supplier Management Strategies

Supplier Certification

How to establish minimum standards for our suppliers
Why we need to have Certification
How it proceeds to Evaluation
How to base standards on TCO
How and why does it save money to reduce the supplier base?

Supplier Evaluation

Evaluating supplier RFQ/RFP
Evaluating supplier performance
What data do we collect and analyze?
Invest in supplier development?

Formal Exercise "The Gaylord Principle"
Creating a simple, workplace-friendly model to measure and evaluate supplier performance

Single and Sole Source Suppliers

Achieving mutual cost reduction
Falling costs = falling prices

Spot Exercise ROUND TABLE Examination

Where are we now with Single and Sole sources?
Where are we going?
What kind of problems do we have
Do we have/need/want a unified strategy?

Formal Exercise "TBD"
We’ll apply supplier management skills to the AAFES workplace

Contracts Management Strategies

Formation of Strategic Alliances

Rationale for creating
Forms, including single source issues
Problems in maintaining
Sample road map

Partnering, Preferred Suppliers, and other Strategic Alliances

A COST reduction strategy for supplier and customer
Achieving mutual cost reduction
How to Partner AND not to Partner

Spot Exercise ROUND TABLE Examination

Where are we now with forms of contract familiarity?
Where are we going?
What kind of problems do we have
Do we have/need/want a unified strategy?

Forms of Contract

Lump Sum
Cost plus
Unit Price
Take or Pay
Escalation/De-escalation
Fixed price re-determinable
Shared savings
Contracts from the FAR side, CPFF, CPAF, IDIQ, NTE, etc, DDT, AM/FM, QED, OIC

Formal Exercise "Contract Forms – Whatchu talkin’ abow?"
An eye opening exercise in learning about appropriate contact forms

Enforcement clauses

Liquidated damages
Bonus and Penalty
Time, delivery and inspection
Letters of credit, domestic and foreign

Spot Exercise Emergency Capital Construction
Encounter more twists and turns in this complex exercise than a Six Flags rollercoaster.

Insurance