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Defense Contracting

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Contractors will need to implement strong project management techniques not only to effectively manage existing projects but also to ensure winning future bids from the government.

Strong knowledge of project management techniques will help defense contractors:

• Keep projects on track for optimal return on their investment
• Prepare for government-specific methodologies based on project management principles
• Merge companies smoothly and manage joint projects across varying organizations

Ensuring High Returns on Investments

Most defense projects are based on fixed-price contracts. Although ensuring a fixed income, these types of contracts suffer when cost overruns occur since a fixed price has already been negotiated. Missed deadlines and cost overruns can also hinder contractors from bidding on future government contracts or might make these vendors vulnerable to lawsuits by the government. Managing project costs by implementing a good risk management plan, controlling scope and meeting scheduled milestones will help defense contractors realize higher returns on their projects and help them win future government contracts.

Preparing for Government-Mandated Project Management Techniques

In 2002, DoD Regulation 5000.2-R was published that included four goals for government projects: reduce cycle time, improve training and education, adopt commercial practices and leverage commercial technology. The new goals influenced the release of a DoD Draft Extension to the Project Management Institute's (PMI®) A Guide to the Project Management Body of Knowledge (PMBOK® Guide) 2000 Edition.

Although based on the PMBOK® Guide, the DoD Draft extension applies the basic concepts of the PMBOK® to government-based projects. In addition, the DoD has added several sections pertaining specifically to managing projects within a government environment. Having expert knowledge of project management principles will help defense contractors understand the concepts of the new extension and prepare for government-mandated project management skills to ensure future bid awards.

Managing Mergers and Joint Projects

In recent years, large defense contractors have merged -- forming mega-companies. Mergers can be challenging to execute while still maintaining competitiveness and developing new products. Different corporate cultures and methodologies must work together on various projects while still learning about the newly formed company.

Another trend in the industry is awarding contracts to more than one organization through mammoth joint projects. Cross-functional project teams and diverse organizations must overcome differing management styles and even geographically dispersed project teams. Following the repeatable, universally accepted project management techniques of planning, execution and close out can help organizations merge more smoothly and enable diverse organizations to work together successfully.

Learn Proven Techniques from the Leader in Project Management

ESI International understands the unique needs of managers operating in the defense industry. With more than 20 years of experience and a world-class project management curriculum, we can help you increase your competitive edge. We have helped many defense contractors such as The Boeing Company, General Dymanics, Honeywell and Lockheed Martin, improve performance in their operations worldwide.

ESI has the largest and most comprehensive repertoire of solutions to transition a company's culture to one that is driven by project profitability. We will help your company identify the issues affecting financial performance and develop a means for tracking how project management can impact your bottom line. From there we will develop a custom solution that may include classroom training, e-training, executive workshops, mentoring and consulting.

ESI is a global company, working for a wide variety of clients around the world. We can support your company no matter where your offices are located, bringing our instructors and consultants to your site. Our experience with companies of all sizes gives us a unique insight into how organizations can benefit from effective project management processes.

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