3-6.7 Allocate Resources for Contract Management

The allocation of resources for contract management activities affords the Postal Service the opportunity to manage the contract by assigning funding, staff, facilities, and/or tools to a given contract, based on the size, complexity, and time frame established. Resource allocation ensures that the plans of the Postal Service are integrated and sustainable within the resources available, based on the contract management metrics that have been established. These metrics are discussed in detail in Section 2-23, Define Contract Management Metrics.

The client and CO will work together to determine how resources will be allocated to manage a particular project, in conjunction with input from the rest of the purchase/SCM team. When allocating resources for any contract, it is important to identify the types of resources needed. Depending on the commodity being purchased, there are five categories of resources that need to be assessed:

• Funding — assess the current funding availability and compare it with the funding required to accomplish the project.
• People — ensure that there is sufficient human capital to develop, manage, and operate the project.
• Facilities — ensure that existing facilities can accommodate the project.
• Technology — analyze the organization’s current state of technology, and determine what will be required to enable effective operation of the proposed project.
• Other resources — analyze other resources that the organization has, and determine which additional resources may be needed to carry out the project.

The Assess Resources topic of the Conceptualize Need task of USPS Supplying Practices Process Step 1: Identify Needs should be revisited to gain further understanding of the previously identified resources and to determine how they can be allocated to ensure cost-effectiveness and best value to the Postal Service.

Once the resources for the contract have been allocated accordingly, managing the project will be an ongoing task.