One of the most challenging periods of contract performance is the transition phase between the old (incumbent) contractor and the new contractor. At the end of the current contract, the incumbent is facing a pretty significant disruption, as the work ends, the revenue ceases and the workforce must be shifted, de-mobilized or downsized. At the same time, the incoming contractor is mobilizing its workforce, orienting to the workspace and the terms and conditions of the new contract. In addition, the new contractor will be trying to glean all valuable information from the government and the outgoing contractor, without impacting the latter’s final performance or inducing any problems.
Immediate challenges arise in the fact that the numbers of contracted personnel will increase during the overlap period, potentially impacting space allocation and trafficability issues. In addition, meetings, systems and procedures may involve a surge in attendance, and a resulting sluggishness in performance and action. The contract terms may be structured to deny both contractors on-site at the same time, which means that the transition will not involve overlap and side-by-side transition. This then results in a lag in performance as the old contractor clears the site and the new contractor gains access for the first time. Regardless of the approach taken, there will be some degree of degraded performance issues, if only temporarily, and the government must plan and prepare for these conditions.
The tension and potential conflicts can be heightened if the outgoing contractor lost the re-compete action. There may naturally be some resentment between the two companies, especially among the workforce, if jobs are being eliminated with the completion of the contract. Many folks are afforded the opportunity to sign on with the new contractor, and essentially keep their job but just change employers. But even then, there can be issues, because the winning vendors often bid lower prices to win the follow-on contract. Since the new contractor is earning less revenue for the work, this usually translates to lower wages and compensation packages for the workforce. So workers may keep their job, but often at lower pay than they have previously enjoyed.
The government personnel are responsible for managing the transition process, ensuring the outgoing contractor performs to the full measure of their obligation, while working with the incoming contractor mobilizes effectively and is ready to commence work on day one of the new period of performance. There are often logistics issues to work out, with installation access and badging, transition of government-furnished property, network access and security procedures, and so on. Moreover, there will often be a learning curve for the new contractor, as its workforce adapts to the new environment. Even if a large number of workers are carried over from the previous contract, there will inevitably be adjustments in the new contractor’s systems, procedures, and so on. And quite likely, the government has incorporated some amendments into the statement of work, so the new contract is not likely to be an exact replica of the expiring one.
All of these factors combine to impose a certain degree of friction into the transition process. Experienced contractors and government employees can manage these challenges with professionalism, poise, and a good measure of patience. In the end, the transition will occur, the dust will settle, and work will resume. But in the transition phase, an efficient contractor and a wise government organization can mitigate much of the friction and continue operations with minimal turbulence.
