Career Spotlight: Contract Management
Summer 2017
It might not be as top-of-mind
as some high-profile business
positions.
In fact, some people don't know
it even exists — but it continues to garner attention
as companies empower this person to impact the
bottom line. Take a hard look at the advantages of a
career in contract management — not the least of
which is a median annual salary of $105,000* — and
suddenly it seems downright desirable.
Contract managers are often rising stars within a
company, interfacing with nearly every department
from marketing and legal to finance and
HR. They devise and negotiate creative contract
solutions that can save a company millions,
streamline operations, and navigate a dynamic
global economy. Not incidentally, it's also an
excellent gateway to upper management
positions.
It could be the hottest career you've never heard
of — and the need for new blood has never been
greater.
“Most people don't realize the level of creativity and
innovation needed for the job,” said Ed Velasquez,
a UCI DCE alumnus who runs his own contract
management firm. “People picture us sitting at a
desk all day shuffling papers and going over legal
jargon. But there's so much more to it. You have
to stay on top of economic trends, pay attention
to foreign currency fluctuations, and come up with
creative and complex solutions.”
For example, when Velasquez worked for
L.A. Metro he devised an imaginative
plan to ship an entire rail car by
aircraft from Italy to LAX, by
way of Iceland and Canada.
The entire trip took only 36 hours instead of the
usual 40 days to deliver it by ship and truck, saving
Metro valuable time and money.
“It's a lot more interesting than people might think,”
he said. “That's why I have no plans to retire, even
though my son keeps asking. I'm having too much
fun.”
Contract management 101
Think of a contract manager as an in-house
business consultant, someone who manages risk
and compliance with a balance of legal and
financial expertise, said Julianne Hagan, a
Contract Management instructor and
advisory board member at UCI DCE.
Whether on the buying or selling side, they
draft and negotiate contracts, then manage
performance once they're executed.
“That's when issues arise,” Hagan said.
“Project managers and others look to the
contract manager to recommend a course
of action in compliance with the contract.”
A highly valued skill set within a company,
contract management expertise can easily
transfer from one industry to another, anything
from government agencies to multinational
corporations and even small businesses, making
it exceptionally versatile and portable.
With the profession dominated by Baby Boomers
nearing retirement age and beyond, there's
a looming shortage for this crucial role —
and robust demand for new blood.
“Unfortunately, most young people don't
know the position exists,” said Velasquez,
who earned a contract management certificate in 1992 and now sits
on the program's advisory board.
He points to an industry study that
found 75% of contract managers in
the U.S. are Baby Boomers. At L.A.
Metro, the average age was 62.
“There is definitely a gap. More
seasoned contract managers who
have long careers are retiring,”
Hagan said. “And there is a lack of
people who have been groomed to
fill those positions. There has been a
big push in the past 15 years or so
to try to fill that gap.”
First steps
The path to a career in contract
management can take many forms.
Since the job requires so much
collaboration between departments,
candidates from any number of
backgrounds can jump-start their
careers through continuing
education.
“People come into the career in
various ways,” Hagan said. “Many
start out as secretaries, administrative
assistants, contract specialists or
procurement clerks. Others have
a bachelor's degree when they
get started — usually in business
administration, public administration,
finance, political science or
accounting.”
Hagan started as a legal secretary
at a computer company while
working her way to a B.A. Once she
got her degree, she began managing
contracts for a number of companies
over her career, from nonprofits
to Fortune 500 corporations.
Velasquez was running his own
company maintaining aircraft at
John Wayne Airport when a client
suggested he take the UCI certificate
course and join his company.
After retiring from L.A. Metro he
launched his business, Capitol
Government Contract Specialists,
and even served on the board of
the National Contract Management
Assn. (NCMA) in Washington D.C.
“People often start in another
department in their company, then
go back to school and get their
specialized certificate,” he said.
Offering a direct path to this
lucrative career, the DCE's Contract
Management certificate program
addresses the core competencies
recognized by the NCMA, including
contract formation, negotiation,
financial analysis and risk
management.
Coursework covers the latest
advances in commercial and
government sectors, including new
approaches to international business.
Students get a solid background
in managing federal contracts,
strategic alliances, global outsourcing
and more. Credits can
be applied towards NCMA
certification requirements, a
valuable resource for career
advancement.
“Some programs can be tightly
focused on a single aspect of
contract management, but UCI
strives for a more comprehensive
approach,” Hagan said. “UCI's
program is more robust and broader
in nature – including a balanced
focus on commercial and
government segments.”
Spreading the word
Although a career in contract
management might be far off the
radar for most Millennials, that could
soon change. With demand rising,
look for it to start attaining a higher
profile.
“It's just a matter of educating
people on the perks of a career in
contract management,” Velasquez
said. “For instance, I helped give
a presentation to 25 guidance
counselors at College of the
Canyons, and none of them had
heard of contract management
as a career option. But once they
heard the median salary was
$105,000 a year, they suddenly
became very interested.”
*NCMA 2015 Salary Survey