Breakout Session 1104 Human Capital and Career Management Dr Ralph “Mike” Criss,

2. Growing Your Own:Developing a College Hire Program for Government Contractors Breakout Session 1104 Human Capital and Career Management Dr Ralph “Mike” Criss, Director Contract Management, Fluor Government Group April 24, 2007 10:45 - 11:45

3. The Problem • More Contracted • More Dollars • Not Enough People

4. The Solution • Do More With Less (or at best the same) • Higher More People • Hire a Winner • Train Someone From a Closely Related Field • Hire and Train from Within • Hire and Train from the Outside College Hires

5. The Approach • Where Do They Come From? • How Do You Know if They Will Fit In? • How Do You Bring Them Along? • What Do You Do With Them? • Why Hire Them At All?

6. Where Do They Come From? • Interns • Co-Ops • Fresh Out of School

7. How Do You Know if They Will Fit In? • Discipline • Finance, Economics, Industrial Engineering • Contract and Procurement Majors • In School, What Else Did They Do? • Tell Them Like It Will Be

8. How Do You Know if They Will Fit In? • Remember, Many of Them Have Been Coached • Watch the Little Things • They Know Little About the “Business” • Hire for Potential

9. How Do You Bring Them Along? • Training Courses • Basic Contracts, Law, Pricing • But Not Right Away • Mentoring • Be Involved, Then Back Off • Development Plan • Little Steps • Include More Than They Can Finish

10. What Do You Do With Them? • Monitor • Find Meaningful Work • Rotate Jobs • Get Feedback • Sell, Sell, Sell • Two Year Rule • Keep Them Employed • They Are an Investment

11. Why Hire Them At All? • They Are Cheap • They Want To Learn • They Have Few Bad Habits • If They Are Good, They Are an Easy Sell • They Build Loyalty and a Future

12. Examples

13. Selling the Program

14. New College-Hire Training Rotation Plan

15. Position Rotations • Management Assistant • C and SCM Systems • Contract Administration • Business Diversity Program • Government Property • Business Development • GCA

16. Direct Training Aspects • Formal Courses • Basic FAR • Contract Law • Cost and Pricing • On the Job • Camtasia/KOL • Functional Training - CM Training online • In House Training

17. Other Areas of Emphasis • GS&S Rotation • Other Functions • Project Controls • Estimating • Scheduling • HR • Finance and Accounting

18. Position Rotations Details and Competencies

19. Management Assistant • Six Month Rotation • Work Directly with Executive Sponsor • Manage Assigned Programs and Projects • Attend Variety of Management Level Meetings • Emphasize writing, research, and reporting

20. Contract and SCM Systems • Three Month Rotation • Learn Function’s Systems • Hands-on Emphasis • Work Directly with System Knowledgeable Professionals • End Competencies • Knowledge of Systems • Ability to Training Others

21. Contract Administration • Three Month Rotation • Learn Basics of Subcontract Administration • Work Under Direct Supervision • End Competencies • Understand Basic of Contract Administration • Can Award Subcontract with Supervision • Can Administer Subcontract with Supervision

22. Business Diversity Program • Up to Three Month Rotation • Work with Diversity Professional • Become Familiar with BD Program • End Competencies • Aid Lead in Executing Program • Understand Basics of Program and How it Applies to Project Execution

23. Government Property • Up to Three Month Rotation • Work with Gov’t Property Professional • Become Familiar with Program • End Competencies • Aid Lead in Executing Program • Understand Basics of Program and How it Applies to Project Execution

24. Business Development • Up to Three Month Rotation • Work with Marketing/BP Professional • Become Familiar with Program • End Competencies • Aid Lead in Executing Program • Understand Basics of Program and How it Applies to the Contracts Function

25. Government Contract Administrator • Capstone Rotation • Work with Senior GCA • Assist GCA in Execution of the Contract • End Competencies • Understand Prime and Subcontract Administration • Be Capable of Performing All Contract Management Functions with Minimum Supervison • Know How to Use all Contract Practices

26. Direct Training Aspects Details

27. Formal Courses • Courses • Basic FAR • Contract Law • Cost and Pricing • Purpose • Baseline General Knowledge to Client and Professional Community • Complete Between Months Three and Six • Best if Courses are Taken Off Campus • Gives Broader Perspective to New Hire

28. On the Job Training • Primarily Done Through Rotation Training

29. Functional Training • Online Through KOL • Camtasia • GS&S Contract Management Training • Boot Camp

30. In House Training • In House Courses Offered by Function • MatMan and CMSi • Computer Based • Lunch and Learn • Staff Meeting • Functional Manager Sponsored • One-on-One • One-on-Small Group

31. The General Process

32. General Contract Process Agency Fluor Vendors/Subs Proposal Proposal RFP Tech Pricing T&C’s Subcontracts Contract Invoicing Purchase Orders Performance/Execution Performance/Execution Deliverables Deliverables Invoicing

33. Process By Function

34. Organization by Function Functional Level VP VP C&SCM Dir Cont Ops Gvt Prop Systems Proc Ops Bus Div Compliance Project Level Mgr Prime Sub PPM PMM GCA CA PM MM GCA CA PM MM GCA CA PM MM

35. Contracts and Supply Chain Management • Contracts • Prime Contracts • Subcontracts • Supply Chain Management • Procurement • Materials Management • Government Property • Systems • Compliance • Export Control • Business Diversity

36. Contracts and Supply Chain Management General Leadership Programs Approvals Supply Chain Management Execution of Programs Oversight Training Review Policy Peer Review Systems Execution of Programs Oversight Training Contract Operations Execution of Programs Oversight Training Review Policy Peer Review Compliance Execution of Programs Oversight Training Policy Review Coordination

37. The Contract Process

38. Pre-Award Sales and Marketing Lead Contracting T&C’s, Business Approach, Execution Plan, Bidders List Operations Execution Strategy, Business Approach, Plans with input from other disciplines Project Controls Estimating with input from other disciplines, Schedule, WBS, Business Approach Engineering Technical Approach, Materials requirements Procurement Same as Contracts without T&C’s ESH&Q Safety and Health, Quality Other Disciplines Agency Generates RFP Fluor Generates Proposal Technical Cost Management Past Performance

39. Award Sales and Marketing Lead (except for TO’s - Ops), Sign Contracting Confirm award same as proposal, T&C’s, Business Approach, Execution Plan, Bidders List, Recommend Signature Operations Confirm award same as proposal, Execution Strategy, Business Approach, Plans with input from other disciplines Project Controls Confirm award same as proposal, Estimating with input from other disciplines, Schedule, WBS, Business Approach Engineering Confirm award same as proposal, Technical Approach, Materials requirements Procurement Confirm award same as proposal, Same as Contracts without T&C’s ESH&Q Confirm award same as proposal, Safety and Health, Quality Other Disciplines Agency Generates Contract Fluor Signs Agency Signs

40. Post Award Operations Lead, Assign PM/PD, Oversee Execution, Complete Plans, Accept Charges Invoice, Authorize Billings Contracting Complete Plans, Verify Flow-downs, Do Abstract, Solicit Subs, Awards Subs, Monitor Subs Project Controls Control Financials, Schedule, Estimating, Manage Change Control Process Engineering Develop Scopes, Monitor Sub Performance, Verify Quantities Procurement Same as Contracts Other Disciplines Fluor Performs Work Invoices Client Subcontracts for Services PO for Materials Monitor Subs Pay subs Identify Changes Negotiates Claims Agency Accepts Services from Fluor Pays Fluor Monitors Fluor Performance Monitor Award Fee Generate Changes Fund Work

41. Closeout Operations Lead, Destaff Job, Ensure Work is Complete Contracting Close files with subs, Closeout with Agency (property, claims, final rates/invoices, final payment), Closeout file, Disposition Project Controls Closeout Financials Procurement Same as Contracts Other Disciplines Fluor Close Project IAW Plan Negotiate with Agency for Final Payment Agency Negotiate with Fluor for Final Payment Provide Closeout Documents

42. Contract Type

43. General Contract Process Agency Fluor Vendors/Subs Proposal Proposal RFP Tech Pricing T&C’s Subcontracts Contract Invoicing Purchase Orders Performance/Execution Performance/Execution Deliverables Deliverables Invoicing

44. Types of Contracts Contract Type Fluor Risk Government Risk Firm-Fixed Price Fixed Price/Unit Price Time and Material/Labor Hour Cost Reimbursable/Cost Plus High Low Low High Fee Arrangements Profit vs Fee Incentive Fee FP/CR Fixed Fee CR Award Fee CR(FP) Performance Based FP/CR Profit = Revenue - Cost Fee = Payment for Services Components by Contract Types FFP Revenue only, Cost borne by contractor CPFF Profit = Rev - Cost Reimbursement = Allowable Cost + Fee Fee may not = profit CPAF Profit = Rev - Cost Reimbursement = All. Cost + Earned Fee Base and Award Fees T&M Profit = Rev - Cost Reimbursement = Labor Rate X Hours+ Material Cost Labor Hour same as T&M Performance Based, Option Periods