AITPBPGuide

Vendor Management Systems
Best Practices Guide February 2004
Cover by Katie Roane
AITP VMS Best Practices Guide
Table of Contents
TABLE OF CONTENTS ............................................................................................................................................2 OVERVIEW AND INTRODUCTION ......................................................................................................................4 THE CASE FOR VMS................................................................................................................................................5 VMS FUNDAMENTALS............................................................................................................................................6 WHERE DO I BEGIN ....................................................................................................................................................6 Define your goals .................................................................................................................................................6 Define key stakeholders and obtain support ........................................................................................................7 Define your business process ...............................................................................................................................7 SELECT THE SYSTEM AND MODEL .................................................................................................................10 MODEL CHOICES .....................................................................................................................................................10 Employee Operated............................................................................................................................................10 Managed Service Provider.................................................................................................................................11 Application Service Provider .............................................................................................................................11 SYSTEM CONSIDERATIONS ......................................................................................................................................11 RFP FOR VMS SOFTWARE ......................................................................................................................................11 System Integration..............................................................................................................................................11 Training..............................................................................................................................................................12 Customer Support ..............................................................................................................................................12 Company Background........................................................................................................................................12 Pricing model.....................................................................................................................................................12 Reporting capabilities ........................................................................................................................................12 Billing and Invoicing Procedures ......................................................................................................................13 System maintenance ...........................................................................................................................................13 Implementation...................................................................................................................................................13 Training..............................................................................................................................................................13 EDUCATING THE PARTNERS .....................................................................................................................................13 EDUCATING MANAGEMENT .....................................................................................................................................14 CONTRACTS ............................................................................................................................................................15 SUPPLIERS ...............................................................................................................................................................16 CREATING SOLID SUPPLIER RELATIONSHIPS ...........................................................................................................16 SELECTION AND/OR RFP SUGGESTIONS ..................................................................................................................16 Service................................................................................................................................................................17 Quality................................................................................................................................................................18 Stability ..............................................................................................................................................................19 Diversity.............................................................................................................................................................19 Team...................................................................................................................................................................19 WHAT DO YOU EXPECT FROM THE SUPPLIERS ..........................................................................................................19 WHAT DO YOU PROVIDE TO THE SUPPLIER ...............................................................................................................20 SUPPLIER MEASUREMENT .......................................................................................................................................21 RATES ......................................................................................................................................................................22 AFTER VMS IS ESTABLISHED ............................................................................................................................24 SUPPLIERS TRYING TO GET IN BACK DOOR ...............................................................................................................24 Solutions.............................................................................................................................................................24
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NEW SUPPLIERS TRYING TO GET ON THE LIST ..........................................................................................................25 Solutions.............................................................................................................................................................25 YEAR TWO WHAT COMES NEXT ..........................................................................................................................25 ENSURING SUCCESS (REASONS THEY FAIL) ................................................................................................27 REFERENCES AND RESOURCES .......................................................................................................................28 VENDOR MANAGEMENT SYSTEMS SUPPLIER DIRECTORY .......................................................................................28 WEBSITE RESOURCES ..............................................................................................................................................36 SAMPLE RULES OF ENGAGEMENT/CODE OF CONDUCT ............................................................................................37 GLOSSARY ...............................................................................................................................................................43 CONTRACTS ............................................................................................................................................................46 VMS SYSTEM RFP SAMPLES ..............................................................................................................................73 SAMPLE #1 ..............................................................................................................................................................73 SAMPLE #2 ..............................................................................................................................................................76 SAMPLE #3 ..............................................................................................................................................................79 SUPPLIER RFP SAMPLES.....................................................................................................................................87 SAMPLE #1 ..............................................................................................................................................................87 BIOGRAPHIES .........................................................................................................................................................89 CYNTHIA GOSS ........................................................................................................................................................89 KAREN WILSON .......................................................................................................................................................89
Overview and Introduction

PLEASE NOTE The Best Practices Guide is a work in progress, and as such, will have updates and revisions. Updates and revisions will be posted to the Chicago AITP SIG web site (www.aitpchicago.com) as they are completed and approved by the committee members.
This document was created as a reference for those organizations considering a vendor management system (VMS) solution, implementing a solution, or refining an existing VMS program. There are several definitions for the acronym VMS. For the purposes of this document VMS will represent the entire vendor management system solution. This includes business process flow and responsibilities in addition to a software tool often utilized within a vendor management system, not simply a software solution. This document is the collaborative effort of a number of organizations using a variety of VMS solutions. While the VMS programs implemented at these companies were varied, many of the business issues and process flows were the same. It was recognized that regardless of the VMS solution an organization chooses, great value could be gained from the experiences of other companies that had faced the same business issues. Cynthia Goss of TransUnion LLC, who had implemented a successful VMS solution, was asked if she would be willing to spearhead this effort and encourage others to share their knowledge. Cynthia agreed and the group members commenced creating this VMS Best Practices Guide. The information contained within the Best Practices Guide is intended as a reference that will promote the activities within an organization to implement a successful VMS program. We do not endorse any one particular product or solution as each organization has its own business processes to define and respect. On behalf of the Chicago AITP, the sponsor of this SIG, we hope this information is useful in planning, implementing, or refining a successful VMS solution. For further information regarding AITP go to www.aitp.org. For further information about the Chicago AITP VMS SIG go to www.chicagoaitp.com or call Cynthia Goss at 312-985-2828 / cgoss@TransUnion.com or Karen Wilson at 630-990-3990 / kwilson@makecor.com. Industries Represented by SIG include: Banking Finance Global Quick Service Global Retail Insurance Wireless Communications Biographies of some of the members of this group can be found in Biographies section of this guide. Special Thanks to Additional Contributors: Beeline, Jacksonville, FLA Enterprise Marketing & Communications, Cherry Hill, NJ Make Corporation, Oakbrook, IL Staffing Industry Analyst, New York, NY The Jordan Group, Sante Fe, NM
The Case for VMS

For many companies, labor cost represent as much as 80 percent of operating costs. Corporations are choosing to increase their reliance on non-traditional work arrangements in order to develop and maintain a more flexible, agile, competitive, and cost-effective workforce. In an effort to more intelligently manage labor costs and leverage relationships with suppliers (temporary agencies and staffing agencies), organizations are searching for ways to accurately assess their contingent workforce spend and for ways to streamline the on-boarding and off-boarding of this adaptive workforce. This workforce and how the workers are obtained and how the process is managed in a corporation is the main focus of this paper. It is important to understand that the process of centralizing the procurement of contingent workforce is an evolving and relatively new practice for most companies. Terminology reflects this stage of development for these systems and often times multiple acronyms and definitions exist for the same general process or function. Simply using contingent workers (staff augmentation, consultants, etc.) does not automatically yield improvements in flexibility and cost that companies are seeking. These benefits only result when the contingent workers themselves, the suppliers, and the processes for procuring and compensating them are all well-managed and working cohesively to achieve these goals. Many companies utilize contingent labor in a variety of areas. For many years administrators, accountants and construction labor have been traditionally used as supplemental staff. IT (information technology) has been one of the most rapid growth areas in the last 15 years. Today, some companies have over 50% of their IT Departments represented by contingent labor (consultants). A challenge many corporations face is how to bring in these workers and if they have them, tracking their length of stay and the total cost. In the last few years a new process has emerged to assist with this challenge: Centralized Vendor Management also known as VMS. VMS is the centralized on boarding of contingent labor. There are numerous acronyms that are basically referring to VMS of one type or another. Common alternatives include HCM (human capital management), HCMS (add systems) and CWM (contingent workforce management) to name a few. It can be as simple as a centralized business process and can include software to assist with the process. VMS has been typically defined as any Internet-based procurement application that enables companies to manage the process of outsourced procurement of temporary and/or permanent staff. Some VMS applications are designed exclusively to handle the procurement of temporary staff, some also handle permanent staff, and other extend to the procurement of independent contractors, consulting services, all services or even goods procurement. As reported in a survey by The Jordan Group, companies are implementing VMS for a variety of reasons. The top reasons stated in the survey were: increased administrative efficiencies, better control of spend, improved reporting, and reduced cost. This same survey indicated that 67% of the respondents reported a 10% or higher savings by implementing some sort of VMS. Approximately 13% reported savings of 15% with a high of 25% savings. While reducing cost wasnt one of the top three reasons for implementing VMS, they are very compelling numbers to justify such a move.
VMS Fundamentals Where do I begin

Implementing VMS in a company can be challenging. It is important to understand the corporations goals when beginning this process. Successful programs are the result of collaborative efforts between all departments within an organization. If all inter-departmental processes are defined and agreed upon in advance, but C-level executives allow for the on-boarding of resources from outside the VMS system, the program is compromised and the partnership between all participants is diminished. Similarly if all inter-departmental processes are defined, and agreed upon in advance, but accounting will issue a check to a supplier if asked directly by a hiring manager, the program is likewise compromised. It is strongly advised that the important first steps to follow are to define the companys goals, define key stakeholders, and obtain support within the organization and the business process the corporation chooses to follow. The target solution the company chooses should be a product of all related departments and be defined and agreed upon in advance. No system or software will produce the desired results if the foundation is not firmly in place. This process should be defined whether you plan on implementing a system or tracking your consultants manually.
Define your goals

It is important first to take a step back to view the entire picture and begin answering, What do we plan to achieve with a VMS System? and What is our primary goal? Having identified the primary deliverable(s) will help you accomplish your goals, keep your focus, and measure your results. Some examples include: Administrative efficiencies Centralizing a process can improve a variety of administrative tasks including, but not limited to, processing invoices, single point of contact, consistent job orders, and coordination with accounting and human resources. Improved reporting capabilities Many organizations are challenged with determining their total spends on consulting. Coordinating all consulting through a single source will allow centralized reporting. Reports on average hourly rate, total dollars spent within the company, department, or even against a purchase order, can now be available. Cost savings Corporations that have implemented a centralized process have recorded hard dollar savings between 3%-10% of total spend. This is achieved through rate negotiations, quantity discounts, and early pay options. Soft dollar savings have been recorded as high as 28% of total spend. Imagine the time saved when the managers in a company no longer have to meet with and take calls from all the suppliers who are trying to do business with the company. Pay suppliers faster Efficiencies in processing invoices can be achieved by having a central resource to receive those invoices. Suppliers sometimes offer early payment options to also assist with cost reductions.
Improve the quality of resources hired A centralized process will allow a company to set high standards for the consultants submitted. The centralized process can allow for better high-level competition. Reduce time to hire If the process is well-defined and timeframes for suppliers to submit are realistic, the time to on-board a consultant will be reduced. Coordination with security departments and IT to be ready for the consultant can be easily coordinated with a single source.
Define key stakeholders and obtain support

When beginning any project it is important to define everyone who will be involved and/or affected by that project. Establishing a Centralized Vendor Management System and/or Process is no exception. Stakeholders in centralizing the on-boarding and off-boarding of contractors can include a variety of groups. The important part is to find and involve all influencers and supporters in your own organization. Establish a means of communication and keep your stakeholders engaged and up-to-date as your program begins. Define partners to the process, as all are responsible for contributing to the success of the VMS Management all levels (Executive is critical, Hiring Managers, Project Managers) Accounting Legal Human Resources Purchasing and Procurement Logistics Security Space Management Risk Management and Compliance non-legal Suppliers Consultants
Define your business process

Once the goals have been defined and key stakeholders identified, it is important to define your business process. The first step in defining your business process is to define and document the current process. Even if the current process is as simple as calling a supplier and the supplier emails the resume, defining the current process will allow key stakeholders to review and improve that process. The next step is to work with the stakeholders to document the new business process. This process definition is really a business workflow. The easiest way to understand defining a business process is to provide examples.
As Is Process
Hiring Manager calls multiple suppliers
Manager provides little or no feedback, sets interview and hires, little or no negotiation
Consultant starts - does he have a desk, phone, ID can he really start work?
Executive Management wants to know what they spend each year?
??????? ????
Supplier sends invoice
Supplier Submits Candidate
Manager Reviews Resumes
Supplier calls and calls for feedback Recruiters and Candidates get frustrated
Manager approves invoice
Accounting receives invoice not enough info for accounting
Supplier wants to be paid takes 60-90 days
This process represents some amount of chaos. Chaos in business requires business process improvements.
New Business Process

When writing the company business process for Centralized Vendor Management, it is important to take a very detailed look at all the steps it takes to on-board a contractor. This includes not only submittal of resumes and resume review, but should include items such as setting up a supplier with accounting, making sure a login ID and desk are ready for the contractor when they arrive and assigning who signs the time cards. The sample process shown can be a start for any corporation. This process sample is a high level sample and doesnt include all of the processes necessary to complete the process. It doesnt include all of the key stakeholder roles. This is merely to provide an idea of how to get started. Step One: Position Process
Disapprove Hiring Manager Creates Position or corrects position CO Initial Review Job Order ------Approve or Dissaprove CO Creates Position on Behalf of Hiring Manager Approve Accounting Review ? Approve Disapprove
START
Enter Accounting Info -----PO # and AFE if Avaiable
CO Final Review Job Order ------Submit or Dissaprove
Disapprove
Submit to Suppliers
Position Submitted ---------Emails to Accounting and Hiring Manager
Step Two: Candidate Process

Decline CO Declines Feedback to Suppliers Update Report Card Decline Decline ----Email CO
Supplier Submits Candidate
CO Reviews Candidates ------Qualify or Decline Qualify ----Email HM
Decline -----Email CO
Sends to Hiring Manager for review
HM Interviews Candidates ------Enters Feedback -------Qualify or Decline
Declines -----Comments Supplier Reviews Offer ------Accepts or Declines
Enter Accounting Info -----PO # if Available
CO Reviews Comments
CO creates offer -------Submits to Supplier
Page 1
Accepts
CO Confirms Start Date
Page 2
HM Reviews Candidates ------Qualify or Decline
Qualify -----Email CO
Qualify Email CO CO Schedules Interview
Select the System and Model

Organizations should seriously consider deploying VMS software to streamline their contingent labor procurement process, says Mr. Hanscome from Meta Group as stated in SIReport. Those companies that use contractors can stretch their contingent labor budgets 10% to 20% by implementing such software, he points out. It is important to remember that the VMS system is the full system to streamline the business process a company has developed. Without first defining the business process it is unlikely a system will be implemented appropriately and fulfill a companys real needs. In addition to the software available, there are a variety of models to choose from as well. Model options available for VMS systems include a variety of models: ASP (Application Service Provider), MSP (Managed Service Provider), or employee operated. A conference sponsored by SIReport held a special workshop called Choosing VMS Solutions, where staffing companies clients explained their decisions to go with VMS. For the most part, the clients said that management of the contingency component was what drove their decisions. Saving money was not the primary driver, said Tony Manley, vice president and senior sourcing strategist with KeyBank. It was, instead, tightening controls on the work force. KeyBank uses contingent workers mostly in clerical and IT/IS. Gary Albright, senior director of global staffing for VERITAS, echoed Manleys statement. We did not do this to save money. It was to get all the cats to go in the same direction. At the conference, both Albright and Manley, along with fellow panelist Larry Kasten of Cap Gemini Ernst & Young, said that once a buyer decides to go with a VMS, it is imperative to get one that is vendor neutral. There are nearly 60 VMS providers in the United States today, according to research by Staffing Industry Analysts Inc., producer of the event and publisher of SI Review. The market is an estimated $500 million to $1 billion. A listing of some of the vendors available for Vendor Management Systems can be found in Reference section of this guide under Vendor Management Systems Supplier Directory. Based upon the findings of your business process review and definition a company will need to determine how to structure its VMS system. Not only does a company need to choose a system but it must choose a model.
Model Choices Employee Operated

Many organizations choose to use an existing employee or hire a new employee to run their VMS program. It is suggested that, regardless of the system you choose, this person is critical to the success of the program. This individual should have a diverse background including sales, recruiting, human resources, project management, as well as people skills including excellent communications and the ability to work with all levels of management. Some of the advantages of an employee-run model are that there can be more control and it can be easier to make modifications to the business process if needed. This individual is also committed to the company and has no financial gain in choosing a particular system or supplier. They are more often viewed as a member of the team rather than a vendor. The biggest disadvantage to employee run programs is really finding the right individual as described above. This person must be able to sell internally as well as externally to suppliers.
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Managed Service Provider

MSP or Managed Service Provider means that a corporation has outsourced the business process. A MSP can run the program either on your site or off-site. In some cases the MSP can and will assist a company in designing the business process as well. Since the MSP is in the business of vendor management, they typically have qualified individuals to run the program for you. Again, you will want to make sure this individual has the right qualifications. Sometimes a MSP can have a conflict of interest if that company is or can be a supplier of candidates for jobs as well. Suppliers can sometimes be challenged with a MSP due to concerns surrounding vendor neutrality. Good MSPs understand this and rely on documented practices and metrics to demonstrate the neutrality of their programs. Involving the staffing suppliers in ongoing process improvements and establish strong communications go a long way structuring stable MSP programs.
Application Service Provider

An ASP model can be run in a variety of ways. This model simply means that the application is running on a server in a suppliers site and all access is done over the Internet. An ASP model can be run by an employee-modeled program or a MSP. ASPs also can run the program for a corporation as well.
System Considerations
Once an organization makes the decision on the type of model, and that the company wants to implement software to run its business process, then it is time to evaluate the systems in the market. As mentioned earlier, a list of VMS providers can be found in the back of this Guide under Reference section Vendor Management Systems Supplier Directory. In reviewing VMS Systems, the best way to determine if a provider can meet a companys needs is to provide a business process. The provider should show how their system would meet your companys business process. Additional criteria for selection should include financial viability and cost structure. Depending on the model you choose, pricing will be structured in a variety of ways. Some providers charge a flat monthly rate and some charge a percent of the billable rate. Many corporations pass some or all of this cost directly on to the suppliers and some do not. System considerations are best reviewed in RFP for VMS section below.
RFP for VMS Software

The RFP process in evaluating VMS software applications should focus on a variety of key areas. VMS system offerings may seem very similar in terms of appearances and features. Differences that helped our member companies define software vendors that stand out among the competition were in software flexibility, customer service support, training, system integration, and price. Below are some examples of RFP categories that may be drilled down in more detail depending on defined business needs. Sample RFPs for VMS Software and further detail on the categories below can be found in the back of this Guide under: VMS System RFP Samples.
System Integration
System integration should be discussed with any potential supplier. Whether you want integration immediately or in the future. Integration points could include: Accounts Payable, Project Management Software and/or internal Time Reporting systems. Many providers are now using XML, which makes the integration easier. Also, check with suppliers regarding their systems. They may want integration between their Candidate Tracking Systems.
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Training
Verify if training is included in integration. Determine the training necessary for the corporation. It is strongly recommended that on-site training be provided for anyone who will use the system. This includes, administration, hiring managers, accounting, and suppliers (accounting, recruiting, sales). Customized training manuals should be available at training and should be available on line after training.
Customer Support
Customer support is probably the most critical of criteria and one of the most difficult to determine in advance. Establishing response time SLAs (Service Level Agreements) can be critical to implementing a system. Asking the provider if they have a call tracking system and a problem escalation process will assist in determine customer support capabilities. Also, make sure you ask references what their customer service experience has been in the past. Verify support capabilities and expectations for on-going support and through implementation. Also, verify hours of operation and make sure that your organization is covered when necessary. Another area companies often forget is disaster recovery. Make sure you request their disaster recovery plan.
Company Background
In todays market of mergers and acquisitions and the search for financial backing, it is imperative that the financial background be verified for any provider that a company reviews. Asking questions in the RFP related to number of implementations completed, time frame for implementations, and references are an absolute must.
Pricing model
A variety of pricing models are available today. It is important to remember when reviewing pricing models, that you are the customer. You have the ability to ask for any model you want whether the provider offers that model or not. Feel free to be creative. If you want that provider, you can find a way to make the pricing work for both organizations. Typical models are as follows: Percentage of Supplier Revenue Transaction Fee A majority of companies utilizing a vendor management system solution operate with the percentage of supplier revenue transaction fee. In this approach, the provider simply reserves a small percentage of the suppliers payment each billing cycle. This is typically a vendor-funded model, meaning the suppliers absorb the costs of the system. Hourly Charge by Consultant Headcount Some organizations appreciate the vendor-funded model but choose to deploy an hourly rate. In this model, the provider charges the suppliers a set dollar amount for each hour worked by each consultant. Lump Sum Monthly Fee For customers who desire to have a more fixed and predictable cost, the provider offers a lump sum monthly fee. The ranges vary greatly due based on the complexity, size, and number of locations involved in the engagement.
Reporting capabilities
In the beginning, reporting may appear to be not critical. But remember, if you are implementing a centralized resource for an organization and one of your goals is administrative efficiency, then reporting will become critical. You will want the ability to set up standard reports, have reports sent to the administrator, or management on a monthly basis, and perform cost reports and supplier report card reports. If a provider has implementing ad hoc customized reporting capabilities, then this is the best option.
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Billing and Invoicing Procedures

Most providers offer the opportunity to have consultants/contractors enter time on-line through the system. The advantages of this include, electronic tracking, ability to show approval history, and being able to move from timesheet to invoice quickly. Some providers run the invoicing for you, some still have the suppliers submit invoicing. Again, you are the customer. Define how you want invoicing and timesheets done and make sure the provider you choose has those options. Some providers will have you pay them directly and then the provider pays the suppliers. Some providers just have you pay the suppliers directly and remove a fee for their services. The choice is yours.
System maintenance
Ask questions on system updates and uptime with your providers. Find out how often during the last year they have had major upgrades. Find out their % of uptime over the last year.
Implementation
In a successful project there is no such thing as winging it. Your provider should offer you a complete project plan and have a project manager assigned to the implementation. It is important to make sure that the timeline is realistic and that the resources you need inside your organization are available. Test runs once implemented would also be critical.
Training
What kind of training does the provider offer? Is there a cost? Most importantly, what kind of training do you require? Several companies have suggested that training take place no more than a week prior to the go live date. While coordinating this can be tricky, it is important that the training be fresh in everyones mind when they start using the system. Make sure you obtain training for ALL users (key stakeholders) of the system. This includes suppliers. One warning is that the suppliers (sales/account management) will often have the recruiter and sales person trained on the system. Make sure their accounting people are trained as well. This will be very important if your system is providing invoices and you are not accepting supplier invoices. Many suppliers accounting departments have to find a way to reconcile their system to match your new system. If they are unaware of the process, this can become a huge accounting nightmare.
Educating the Partners

A partner is such a loosely used term today. What is really meant here is who you want to work with and have a relationship with: your suppliers. Suppliers can and will assist with the success of the program. Bring in the suppliers, talk to them, introduce them to your VMS provider, explain the goals, why you chose the program, the process, the executive support you receive and that you want their support and feedback. While the suppliers dont really have a choice in working within a VMS, it is still very important to communicate to them. The more information you provide about the process and your VMS program the more support you will receive from them. Hiring Managers are also your partners in this program. Keep them informed through meetings and emails on the progress of the project. One member company scheduled a kick off meeting prior to the go live date of their VMS system. This company set up the kick off like a grand opening event a new business would sponsor. They arranged for a late morning meeting and served appetizers. Hiring Managers and suppliers were all invited. A brief presentation was done to explain the new business and the suppliers even provided give-a-ways as an incentive for people to attend. This type of kick off assisted in putting all partners at ease about the program.
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Educating Management
As a corporation, you have decided you want to implement VMS. You have established business goals, reviewed your existing process and developed a new business process. If you really want a successful program then management support is critical. One of the best methods to educating the management is to develop a business case or ROI (Return on Investment). Depending upon which pricing model your organization chooses will depend if there is really a hard cost to the program. A variety of resources are available to assist you in developing an ROI. One of the best cases is a survey that was completed in October 2003 by The Jordan Group (http://www.jordangroupinc.com/). Corporate end users at all levels were interviewed and surveyed regarding Vendor Management, the process, the success and the reasons implemented. This survey provides excellent facts for building your business case. Even if you have Management support, the group suggests that you continue educating Management on successes in the program. In other words, dont let them forget that your program exists. Provide management with statistics on monthly cost savings (Published statistics state VMS return 10-15% hard dollar savings and 15-20% soft dollar savings this is according to Giga Information Group and the Robert Frances Group study), successful contract and other activities. It is suggested that you advertise your program the same way a new company would advertise. One member corporation sends services emails to management and posts notices in the elevator. Continue to show your management what services you provide. Another suggestion is to establish a user community within your own company. Key Managers and the VMS group can meet monthly to discuss successes of the program. Review the monthly on boarding and off boarding of consultants. In addition, you can run reports on consultants rates and review any issues in the program or rebels who have tried to go around the system. You will be surprised how this group will make the VMS strategy part of their own strategy.
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Contracts
Contracts can be an area of contention among companies and we suggest to always using your own standard format. Creating a standard Master agreement for each supplier firm to sign that has been pre-approved by your legal department is one suggestion to help ensure you are doing the best to cover your organization. If a standard contract is not an option, insist on a high level of management sign-off only after your legal department has reviewed the contract in detail to assess any hidden risks. Corporations may look to develop guidelines for hiring managers, such as if a contract exceeds a particular level of spend then a set level of management sign-off would be required. Contract managers must know how to structure healthy vendor contracts and relationships. Managers should take the key steps that will ensure that a new or renewed contract will not turn out to be a "nightmare" contract. Sample contracts and clauses can be found in the Contract Sample section toward the end of this document.
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Suppliers
Despite the fact that corporations want Vendor Management Systems which can help them lower bill rates, reduce costs and improve quality of service staffing firms dislike VMS. Regardless, SIA (Staffing Industry Analyst research presented at a recent conference showed planned use of VMS is high in 2004. Most staffing company representatives surveyed said VMS gets in the way of a personalized, valueadded relationship with clients. Two-thirds said VMS is low or not on their priority list at all, and 82% said they do not have a VMS strategy. Yet 42% of companies surveyed claim to use the technology in some way and another 21% plan to work with a VMS in the future. The survey included 347 respondents representing 298 staffing companies. Marshall Utterson, director of recruiting at AIG American General, said staffing firms shouldnt be scared. He said when his company employed a VMS, it kept its relationships with its staffing companies. There is a lot of loyalty to groups that have a quality relationship with our company. Most corporations implementing VMS do want a relationship; it is just that the relationship has changed. As long as organizations include contingent workforces in meeting their staffing needs, partnerships with staffing companies will be required.
Creating Solid Supplier Relationships

Your organization has chosen to manage project and technology peaks with contingent labor. This model and approach to headcount, by definition, requires that you establish business partnerships with valued suppliers. Your supplier base is an asset to your program. The more you define expectations, communicate effectively and help provide the supplier the information they need to perform business, the better your program will perform for all parties involved. Ultimately you will receive a higher quality consultant and a fair market price. You may want to consider defining separate classifications for suppliers. In some cases organizations have identified strategic suppliers from whom they expect higher levels of responsiveness and service (e.g. delivery of a fully developed application, or risk assessment vs. IT staff augmentation or temporary labor recourses). These suppliers should be identified as such and evaluated on these pre-determined expectations. Other suppliers may be defined in a less strategic fashion and evaluated on simple criteria such as quality of consultants, length of assignment, or value add. If your expectations for suppliers are varied, we suggest you determine this up front and define the evaluation criteria accordingly. Communications is a key factor in creating solid relationships with suppliers. While we will provide ideas and suggestions in selecting suppliers, we also suggest you review the sample Code of Conduct, found at the end of this Guide, as a rules for engagement in working with suppliers. The following are some suggestions to guide you both in selection and in developing a successful relationship with suppliers.
Selection and/or RFP Suggestions

It is important to ensure that you have already gone through defining your business process prior to choosing your suppliers. The expectations of suppliers will be unique to your organization and directly related to your program expectations and business process as defined in the section called VMS Fundaments. This section will address some common supplier selection criteria used by a variety of corporations involved with the development of this Best Practice Guide. Sample Supplier RFPs can be found under Supplier RFP Samples at the back of this Guide.
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Service
It is generally acknowledged that the days of staffing companies carrying full time staff or benches are gone. Therefore, staffing companies are often working with the same pool of resources when recruiting for your requirements. The value of service both to you the client, and to the consultants who will ultimately be responsible for meeting the project expectations cannot be minimized. Service elements defined as most important by the participating SIG organizations included the following: Accountability How does this supplier respond to issues? Are they timely and detailed in addressing problems? Do they provide detailed and documented evidence to explain how and why something occurred? Are they trustworthy? The overwhelming sentiment expressed by our group was that they understand that the product being provided by their suppliers is in fact a human being and that it is impossible to predict and expect perfection. They do, however, expect honest communications and integrity with regard to solving problems. Capability Define your expectations for particular orders and RFPs well in advance. Then score your expectations in a number format. It is much easier to decide upon a particular suppliers capability by defining what is important to your company in advance and asking about those specific capabilities. For example, do you need 7 x 24 support; do you require drug and background checks/drug screening? If you have these requirements defined, you can ask the specific questions and ask for specific answers, examples, and references. Communications Communications is a recurring expectation for all parties involved in successful VMS programs. How well does your supplier communicate with you in both written and verbal fashion. Are they clear and concise? Do they add value beyond the specific requirements? How effectively to they present themselves? Contracts It is significantly easier to manage one contract. Our SIG suggests that you define your own contracts in advance, have them developed or reviewed by your legal experts and stick with it. Many elements in supplemental staffing contracts have become standard. Ask your suppliers for input for your contracts, network with other organizations regarding contracts, and in the end, ask that your suppliers sign YOUR contract in order to eliminate managing multiple contractual agreements. It is understood that some negotiations may take place but it is better to edit your own contract rather than sign a new one with each supplier. How flexible are they on terms? Expertise While there is consensus that most suppliers are establishing relationships with consultants from the same pool, it is also acknowledged that some suppliers choose to focus on one or two particular technologies or strategies. Many of our participating organizations choose to define their supplier list with a mix of generalists and specific technology practice area vendors such as project work, offshore, etc.
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Geographic coverage Consider the necessity of coverage outside of the corporate office or your location. Is it important for you to include national and international suppliers amongst your regional suppliers? Many of our organizations found that including some of each of these types of suppliers kept all suppliers engaged at a stronger level. Relationship with consultants The consultants are the key to your success. How is your staffing company doing in building professional partnerships with their consultants? Do they offer Benefits to their consultants, do they meet their consultants on site, and do they offer training and career guidance? These attributes speak to how strongly the supplier values the long-term relationship with quality resources. Reporting What kind of reporting do they offer to the customer? Are they willing to provide you with reporting required by your management? Do they have standard reporting they provide to all of their customers? If Diversity is a goal for your organization are they willing to provide the necessary quarterly reports? Staff turnover What is the average length of employment for sales, recruiting, and consultants?
Quality
Customer References are an excellent way to confirm the marketing hype. Are your suppliers able and willing to provide contact information for other clients they are working with to substantiate their claims? Not only does checking references provide credibility to the suppliers claim of quality, it provides you an opportunity to build a network with other organizations who utilize business partners to meet their contingent workforce needs. Having a source to go to discuss relevant trends and issues was a key benefit for the companies who participated in this SIG. Suppliers who can add value to your company through their knowledge and participation in related trade associations and technical associations position you to provide this same value to your internal clients. The suppliers who continually demonstrate an understanding of this value and are as interested in providing this service as they are in providing resources will ultimately bring you the best candidates. This is because they are tuned in to the industry in greater depth than some of their competitors and will ultimately earn the same respect from consultants as they will from you. Look for this value. As stated earlier in this guide, the business of recruiting contingent talent has changed. Few staffing companies hire full time employees or carry a bench. This makes the recruiting process more critical than ever before. Many of our participating organizations chose to meet and interview the recruiting staff when assessing potential suppliers. They key elements that organizations looks for are a defined, consistent recruiting process and a willingness to adapt this process for a particular client, department within an corporation, or project. Most companies want to know that references have been checked and can be shared with clients, and that third party technical evaluations have been performed. Drug and background screening is becoming more prevalent but still seem to be client specific.
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Stability
The challenges of the recent economic times have not left staffing companies untouched. Many of our participating corporations shared horror stories of contractors who had not been paid in months even though the client had been paying the staffing company regularly. It is essential to assess the stability of your prospective suppliers in order to circumvent problems in this area. We recommend a D&B report, a review of the organizations finances, customer as well as current consultant references, and insurance minimums to name a few. Additional evaluation criteria included retention statistics as they apply to the salespeople and recruiters. Organizations who have high turnover in both of these areas could have business, financial, and/or quality issues. Many corporations ask for financial reports. This can be a challenge for some suppliers who, as privately-held companies, may not provide this information. We also suggest that you ask suppliers for a full understanding of their own internal recruitment process and retention plans as well as the technology they use to track and attract consultants.
Diversity
Diversity is a business goal for many corporations but particularly those doing any kind of government service. Most of our participating organizations noted that they either had current diversity goals or were being told they were coming. It is important to incorporate diversity firms into your supplier list. There are multiple ways to achieve these goals. The most straightforward is to include staffing firms whose ownership qualifies them as a diversity supplier dollar per dollar for your business with them. You can also achieve diversity goals if your suppliers are not diversity organizations but have internal diversity programs to which they can identify any independent contractor assigned to your account who meets diversity classification. Many of our participating companies had colleagues on staff that directed them as to their companys diversity requirements.
Team
As discussed earlier, a supplier is as good as the team bringing the resources to your corporation. It has become common for the supplier selection process to include a presentation from the finalists that includes the opportunity to meet the team that will support your account. This includes the marketing team, the recruiting team, any consulting managers assigned to your account, and/or owners or executives. This gives you an opportunity to assess the commitment this supplier has to your account and whether a strategy has been established to serve your account.
What do you expect from the suppliers

VMS is a gaining momentum for organization worldwide. This is due to the documented savings these programs provide. Many suppliers are slow to make the change and are still only interested in accounts with which they can have ongoing direct access to hiring managers. It is important to assess this element up front with your suppliers. The VMS programs that reported the highest level of success in both dollar savings and quality of resources were those in which the suppliers were part of the solution and not working against the program. If your company has buy in at the highest executive level your suppliers must support this. If a hiring manager forgets and calls a supplier with a requirement before they call the central vendor manager, this supplier should be required to redirect the hiring manager to the vendor manager as well as contact the vendor manager directly. The suppliers who understood the concept of long-term trust and reliability were the suppliers who experienced the greatest success in these programs. The VMS programs that clearly identified these and other performance expectations experienced the greatest success. Some organizations created documents for easy reference that outline the rules of doing business with a client such as a code of conduct. The successful organizations solicited input from the suppliers for these guidelines and reviewed them often. Suppliers who took initiative with regard to providing positive, constructive input gained the respect of the program and contributed to the success for all parties.
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What do you provide to the supplier

Successful VMS programs included a high level of communication both from the supplier and from the corporation. As demand rises for quality resources you will compete with organizations for consultants. If your program is too restrictive and/or not respectful of the role the suppliers play in meeting your contingent workforce goal, your account will become a resource from which staffing companies recruit. It is important to return phone calls, be consistent in communicating your process for considering new suppliers, and for having a somewhat fluid review process. If you never give new suppliers an opportunity to do business two things can happen: 1) your current suppliers get complacent, 2) your account becomes a resource. Many successful programs establish a list of evaluation criteria for selecting new suppliers. The real success factor is following through on the evaluation and criteria. It makes no sense to send a supplier to a web site to fill out information if that supplier will never be contacted. That is simply a waste of time for everyone involved. It will save a vendor manager time by simply following up with every supplier call. Suppliers will not continue to call if they understand the parameters of your program. Once you have selected preferred suppliers the group strongly suggests that you continue to communicate to their suppliers. Provide them with information about your company, the technologies you use and your goals and challenges for the coming year. The more information they understand about your business the better candidates they can provide to you. Several corporations hold a supplier conference periodically. The goals of these are varied but overall it is a chance to provide information and communications between your company and the suppliers. The important factor here is to tell the suppliers what to expect, review your expectations and see if the supplier is performing.
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Supplier Measurement
Concise performance metrics provided consistent evaluation criteria for companies with their suppliers. Several organizations had included key performance indicators (KPI) not traditionally used for staffing or service assessments - but rather for goods assessment - but still found these measurements to be effective. The consensus was that identifying particular elements to evaluate and compare on a regular basis with suppliers provided the best results. Measurements included # of requirements responded to, response time, # of times an interview was requested, and rate competitiveness as compared to other submittals. Interestingly, several companies chose not to track placements as they recognized only one supplier ultimately got the placements. The level of activity and the quality of presentation was more important. Some companies look for more subjective criteria for evaluation. These can include valueadded services and communications. Even how they work with their consultants. Sample report cards are as follows: Sample 1:
Supplier Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Received Submitted 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 3 0 1 0 1 1 6 0 1 0 1 0 2 7 5 7 3 1 3 7 5 3 Responded Forwarded to To HM (qualified) 60% 0% 20% 0% 20% 20% 120% 0% 20% 0% 20% 0% 40% 140% 100% 140% 60% 20% 60% 140% 100% 60% 3 0 0 0 1 1 5 0 1 0 1 0 2 4 4 6 3 1 3 5 4 3 Submitted vs. Forwarded 100% 0% 0% 0% 100% 100% 83% 0% 100% 0% 0% 0% 100% 57% 80% 86% 100% 100% 100% 71% 80% 100% Interviewed 2 0 0 0 0 0 1 0 0 0 1 0 0 2 4 2 1 0 0 3 1 0 Forwarded vs. Interviewed 67% 0% 0% 0% 0% 0% 20% 0% 0% 0% 100% 0% 0% 50% 100% 33% 33% 0% 0% 60% 25% 0% Hired 0 0 0 0 0 0 1 0 0 0 1 0 0 2 2 0 0 0 0 3 0 0 to Hired 0% 0% 0% 0% 0% 0% 100% 0% 0% 0% 100% 0% 0% 100% 50% 0% 0% 0% 0% 100% 0% 0%
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Sample 2:
Recs Rec Submits Responded Avg Complia # Submitted BR Score Rank ASP nce Consul. Avg Bill Rate
Supp - Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name Supplier Name
Interviews
Int. %
Hires
Hire %
38 12 6 39 38 39 36 39 39 6 34 39 39 39 35
16 6 5 35 55 29 32 38 43 5 27 42 26 40 37
42.11% 50.00% 83.33% 89.74% 144.74% 74.36% 88.89% 97.44% 110.26% 83.33% 79.41% 107.69% 66.67% 102.56% 105.71%
1 1 0 8 11 6 8 8 12 0 3 13 7 9 5
6.25% 16.67% 0.00% 22.86% 20.00% 20.69% 25.00% 21.05% 27.91% 0.00% 11.11% 30.95% 26.92% 22.50% 13.51%
0 0 0 4 5 4 1 4 2 0 0 5 3 3 1
20.00 %
0.00% 0.00% NA 50.00% 45.45% 66.67% 12.50% 50.00% 16.67% NA 0.00% 38.46% 42.86% 33.33% 20.00%
$79.22 $81.33 $65.20 $73.13 $77.84 $82.10 $76.03 $77.12 $75.89 $89.40 $75.83 $76.68 $72.96 $72.50 $77.51
0.02 0.05 0.00 0.16 0.17 0.15 0.10 0.15 0.13 0.00 0.03 0.20 0.15 0.13 0.06
13 11 14 3 2 5 9 4 8 14 12 1 6 7 10
4 0 1 1 10 1 4 1 3 0 6 13 1 2 0
0.50 NA 0.20 0.33 0.77 0.33 0.44 0.11 0.27 0.00 1.50 1.08 0.33 1.00 0.00
8 0 5 3 13 3 9 9 11 1 4 12 3 2 3
$87.13 N/A $68.20 $90.00 $83.31 $77.33 $87.11 $82.00 $66.91 $110.00 $75.25 $79.67 $68.33 $81.50 $69.33
Goal
100.00%
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33.00%
Rates
Rates can be a controversial subject, especially with suppliers. There are many schools of thought in this area as well. Some member companies use rate cards. Rate cards make it easier to budget positions; however, they can be outdated quickly in this rapidly-changing marketplace. It is possible that if rate is the focus then a company may not be getting the best resource needed for the job. Of course, rate is important since we all have budgets to manage. Some corporations utilize market research to establish their rates. There are a variety of tools and resources available in the marketplace. Mercer puts out a report annually on salaries and rates. However, this is published about 68 months after the research. An online tool has also been recently introduced (http://www.peopleticker.com/) that allows for searches on skills in geographic areas. Periodically asking your suppliers for market rates for a skill set is another good option. It is likely you will get about the same range from each supplier you ask. Another rate option is to submit a job request with a realistic but large rate range. Surprisingly, one of the member companies used a range with a spread of $50-$75/hour, and all the suppliers submitted candidates within a $5/hr range of each other. Some companies request full disclosure from their suppliers. This means that the customer knows what the supplier is paying the consultant and there is an agreed to mark up. A supplier recently performed a study regarding full disclosure. This article can be found at www.makecor.com.
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The user group has also indicated that including large, medium, and small organizations on the supplier list can be of benefit in this area. The suppliers and their desire to compete will eliminate detailed management of rates and the challenge of keeping cards up to date. It is also important to not forget the leverage you have with suppliers to negotiate rates. Leverage relating to the % of business a supplier receives. Remember that the suppliers are in the business of making money. Rate negotiations should be reasonable for all participants. Requesting volume discounts from suppliers is typical but can be difficult to manage at times.
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After VMS is Established

Introducing a new business process to a complex organization can present many challenges. Often times these challenges can be a result of not anticipating such occurrences and therefore not gaining consensus for a solution. This section of the guide defines some common challenges new VMS programs face and some suggested solutions that have worked for member companies. These are listed in alphabetical order for easy reference.
Suppliers trying to get in back door

Back door selling is direct contact between suppliers and managers (buyers and sellers), bypassing the centralized process.
Solutions
Get Company Buy In The most significant element for success in implementing VMS is the support from senior or executive management. Demonstrate the return on investment of the program by educating managers in advance of the program commencement. Include executive management as well as hiring managers in the implementation and enforcement team. Control Building Access Suppliers ultimately want to meet with managers and these drop by visits are costly in terms of management time, production, and the integrity of your VMS. Limiting supplier access to your managers and your building will reinforce the VMS role and have your suppliers coming to the VMS contact. Refrain from giving supplier access badges and have them meet their consultants in a centralized area. Control System Access Occasionally a manager has consultants who are already on site and working before the VMS has been notified. Institute a policy where only consultants from your preferred suppliers can obtain log-in and passwords to access your systems. Control Supplier Payment Managers may want to bring in suppliers who are not part of the approved VMS program providing services. Work with accounting to ensure non-preferred vendors are not eligible for payment. This seems to be a huge motivating factor in making sure suppliers and managers work within the VMS system. Institute a Code of Conduct Suppliers and Internal Managers alike may occasionally forget the expectations of the program. A Code of Conduct defines the rules and expectations of the VMS program and is shared with suppliers and hiring managers. This guide should include, but not be limited to items such as: How to submit a resume, when to summit a resume, resume formatting, rules surrounding dual representation (double submittal), how interviews will be coordinating, how to communicate with your company, how to resolve contractor issues, and supplier evaluation criteria. Exception Reporting Managers may want to request a resource from other than a preferred supplier. Some member companies require managers to write extensive reports justifying the need to go outside the VMS system. These reports require CIO or other executive level sign-off and therefore discourage managers from going around the VMS. If an exception report is approved, VMS should also source a similar resource from the approved list of suppliers as a
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comparison. If the preferred suppliers also locate this type of resource an exception may be avoided in the future. Streamline electronic processing If possible, avoid paper timesheets that can easily be signed by any manager. If you have an electronic invoicing and time entry tracking for contractors, grant only preferred suppliers access to this system.
New Suppliers trying to get on the List

New suppliers will continue to contact your organization to earn a place on your supplier list. This constant contact from a variety of suppliers can be quite time-consuming; however, the goal of your company is to ensure that you are always working with the best suppliers. Your goal is to make your job easier. Having a consistent, documented, and honest approach on how your suppliers are brought to your systems is the best approach. This will ensure access to the best talent and help in monitoring and managing your companys list of suppliers.
Solutions
Thoroughly define the process for evaluating new suppliers. Since external clients (suppliers) as well as internal clients (hiring manager, etc.) will have similar questions regarding the process, you can prepare a written description that includes how often you update your supplier list, your expected form of communications (email, phone calls, meetings, etc.), evaluation criteria, and RFP process. Rather than avoiding suppliers attempts to contact you, use these situations as opportunities to gain information about their companies and the industry or to screen them as potential additions to your list. Establish a tracking system to monitor communications. This can be as simple as an Excel spreadsheet listing supplier name, contact name, phone number, email address, date of first call, date of first communications, who referred them, follow up date, etc. You can also use a more elaborate database. Be responsive and professional. Demonstrate the type of communications you expect in your program.
Year Two What Comes Next

Weve achieved the big bang effect of first year cost savings and executive buy-in. Now what do you do? The best suggestion is to inspect what you expect. It is important that you perform period reviews of the expectations you have set for your suppliers. For example, review time entry and watch overtime calculations and hours. It is important that consultants enter their work time within a reasonable timeframe of the work performed. It is also important to verify that hiring managers are approving the timesheets, especially if this is how suppliers are paid. Setting a standard for supplier performance reviews is important. This can be done annually, but we suggest quarterly reviews. It is also important to perform reviews with the hiring managers and other key stakeholders to receive feedback on how the program is working in your company. Several companies developed a supplier counsel for feedback and improvement on the program. After the program is established and all stakeholders feel the program is a success, then it is time to review process improvements. Corporations need to verify the accuracy of invoices. Statistics indicate that companies have shown an average of 30% errors in invoicing. Potentially implementing integration into existing accounts payable system may help with reducing these errors. Provide a communications platform for the suppliers to meet hiring managers and to understand the goals and challenges of your organization. Hold a supplier conference where managers can present the technologies they use to suppliers. Again, the more information a supplier has, the better the
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quality and match of consultants you will receive. Suppliers do not want your company secrets, they want to understand your business and technology challenges as they relate to a human capital need. Share with them and your and your company will reap the rewards.
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Ensuring success (reasons they fail)

The dictionary defines success this way: 1 obsolete : OUTCOME, RESULT 2 a : degree or measure of succeeding b : favorable or desired outcome; also : the attainment of wealth, favor, or eminence 3 : one that succeeds. The question is then how does a company ensure they have implemented a successful program? Once your company has established the goals of the program, then the most obvious is feedback from all of the stakeholders. If hiring managers are working in the program and receiving and hiring qualified candidates at market price and have voiced satisfaction, then the program is a success internally. It is also important to verify that suppliers and consultants are inspired and enthusiastic about the program. Centralized vendor management programs typically fail because they are not managed appropriately and are not supported by the management of the company. As we discussed at the beginning of this document, executive management support is critical. Inconsistent communications can cause even the best programs to fail. Vendor managers need to submit well-qualified jobs and provide timely feedback to suppliers on the candidate submittals. Suppliers who have to submit candidates within a very short timeframe, and can submit as many resumes as they want, and have to submit at the lowest rate, will eventually become frustrated and submit the good candidates to company programs that respond. Remember, corporations compete for great talent. You want your supplier to give you the best candidate so make sure you provide feedback. Additionally, continually keeping hiring managers and other personnel inside your company informed regarding the services that the vendor manager provides and the successes you have will assist with improving your program. Some companies post their suppliers on the Intranet or periodically send emails to promote suppliers and successful placements. Lastly, dont let your program go stale. Join a user group of other vendor managers. Network with other vendor managers to find out new and creative ways to improve your program.
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References and Resources Vendor Management Systems Supplier Directory

(from Staffing Industry Analyst Inc., January 2002) Analysts International - (952) 835-5900 Phone: (800) 800-5044 * Fax: (952) 897-4555 3601 W. 76th St. Minneapolis, MN 55435 e-mail: inquiries@analysts.com Beeline - (866) BEELINE
Fax: (904) 273-6466 1400 Marsh Landing Pkwy. Ste. 106 Jacksonville Beach, FL 32250 e-mail: Sales@Beeline.com
Bullhorn Inc. - (617) 464-2440
Phone: (866) 538-7795 * Fax: (617) 464-0677 125 B Street Suite 3 Boston, MA USA 02127 e-mail: staffingsales@bullhorn.com
CascadeWorks Inc. - (415) 402-8000
Fax: (415) 402-8025 300 California St., Ste. 600 San Francisco, CA 94104 e-mail: info@cascadeworks.com
Chimes Inc. - (248) 293-6767
Phone: (877) 972-2700 * Fax: (248) 293-6768 5455 Corporate Dr. Ste. 303 Troy, MI 48098 e-mail: chalash@chimesnet.com
Comensura Inc. - (713) 438-1543
Fax: (713) 297-8299 1775 St. James Place Ste. 236

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Houston, TX 77056 e-mail: infous@comensura.com

Covendis Technologies - (770) 903-9990
Fax: 5303488270 3500 Parkway Ln. Ste. 370 Norcross, GA 30092 e-mail: rtsao@covendis.com
DCR - 561-998-3737
Fax: 561-998-3713 6001 Broken Sound Parkway, Suite 610 Boca Raton, FL USA 33487 e-mail: info@dcr-inc.com
DCR - Smart Track - (888) 243-7531
Phone: (561) 276-6838 * Fax: (561) 276-8058 100 E. Linton Blvd. Suite 203 A Delray Beach, FL 33483 e-mail: info@dcr-inc.com
e2staff.com - (215) 222-7900
Fax: (215) 222-3924 3701 Market St. Philadelphia, PA 19104 e-mail: contact@e2staff.com
Econometrix Inc. - (415) 355-0166
Fax: (415) 355-0181 999 Brannan St. Ste. 109 San Francisco, CA 94103 e-mail: info@econometrix.com
Elance Inc. - (408) 524-7500
Fax: (408) 524-4814 820A Kifer Rd. Sunnyvale, CA 94086 e-mail: sales@elance.com
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elevon - (415) 495-8811
Fax: (415) 957-1711 303 Second St. 3 North San Francisco, CA 94107 e-mail: info@elevon.com
Enthusian - (954) 938-7600
Phone: (800) 388-7783 * Fax: (954) 938-7770 2050 Spectrum Blvd. Fort Lauderdale, FL 33309 e-mail: resources@spherion.com
eWork Exchange Inc. - (415) 546-4800
Fax: (415) 546-3889 717 Market St. Suite 500 San Francisco, CA 94103 e-mail: bschuh@ework.com
Fieldglass Inc. - (312) 759-1100
Fax: (312) 759-5555 125 S. Wacker Dr., Ste. 2400 Chicago, IL 60606 e-mail: info@fieldglass.com
FillYourJobs.com - (781) 681-9990
Phone: (866) 271-9900 * Fax: (781) 749-9381 45 Accord Park Dr. Norwell, MA 02061 e-mail: info@fillyourjobs.com
GlobalServe Inc. - (914) 729-6821 Fax: (914) 729-6895 200 Summit Lake Dr. 2nd Fl. Valhalla, NY 10595 e-mail: inforequest@global-serve.com hy-phen (Spring Group plc) - 44 800 587 5870
368 Oxford St. London, UK W1C 1ND e-mail: info@hy-phen.com

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Icarian Inc. - (408) 743-5700
Phone: (800) 991-9699 * Fax: (408) 743-5701 555 North Mathilda Avenue Sunnyvale, CA 94086 e-mail: info@icarian.com
ICIMS.com - (800) 889-4422 Phone: (732) 847-1941 * Fax: (732) 847-1944 1301 Concord Center, Ste. 6 Hwy. 36 Hazlet, NJ 07730 e-mail: sales@icims.com Infinity Consulting Group LLC - 732-593-0200
Fax: 732-593-0211 4400 Route 9 South 2nd Floor Freehold, NJ USA 07728 e-mail: brieland@infinitygroup.com
Interactive Business Systems (IBS) - (630) 571-9100
Phone: (800) 555-5IBS * Fax: (630) 571-9110 2625 Butterfield Rd. Oak Brook, IL 60523 e-mail: ibscorp@ibs.com
IQ Navigator - (303) 563-1500
Phone: (877) 267-0905 * Fax: (303) 563-1650 4600 S. Ulster St. No. 680 Denver, CO 80237 e-mail: iqsales@iqnavigator.com
IQNavigator - 303.563.1500
Phone: 877.267.0905 * Fax: 303.563.1650 4600 S. Ulster St, Suite 680 Denver, CO USA 80237 e-mail: iqmarketing@iqnavigator.com
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iServiceX - (888) 577-6479
Fax: (770) 441-1854 2865 Amwiler Rd. NW No. 500 Atlanta, GA 30360 e-mail: sales@iservicex.com
Judge Group - (610) 667-7700
Fax: (610) 667-6085 Two Bala Plaza, Ste. 800 Bala Cynwyd, PA 19004 e-mail: dknecht@judge.com
LiquidMedium - (904) 223-0373
13901 Sutton Park Dr. S. Ste. 300 Jacksonville, FL 32224 e-mail: info@liquidmedium.com
MSX International Inc. (b2bBuyer) - (248) 299-1000
22355 W. Eleven Mile Rd. Southfield, MI 48034 e-mail: sales@msxi.com

neoIT - (925) 355-0557
Fax: (925) 355-0558 2603 Camino Ramon 2nd Fl. San Ramon, CA 94583 e-mail: info@neoIT.com
NextSource Inc. - (212) 736-5870 Phone: (800) 727-6583 * Fax: (212) 736-9046 462 Seventh Ave., 4th Fl. New York, NY 10018 e-mail: info@nextsource.com Onstaff - (888) 863-9444
Fax: (877) 238-0555 3400 W. Alameda 2nd Fl. Burbank, CA 91505 e-mail: info@onstaff.com
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Peopleclick - 919.645.2800
Phone: 877.820.4400 * Fax: 919.645.2801 Two Hannover Square, 7th Floor Raleigh, NC USA 27601 e-mail: contactus@peopleclick.com
PeopleSoft Inc. - (888) 773-8277
Fax: (925) 694-4293 4460 Hacienda Dr. Pleasanton, CA 94588 e-mail: steven_jannicelli@peoplesoft.com
ProcureStaff - (212) 808-8000 Fax: (212) 808-8013 560 Lexington Ave. New York, NY 10022 e-mail: globalsales@procurestaff.com ProSavvy - (720) 873-5400
Phone: (800) 983-9737 * Fax: (720) 873-5602 9510 meridian Blvd. No. 200 Englewood, CO 80112 e-mail: info@prosavvy.com
RecruitAlliance, Inc. - 772.781.1844
15 Miramar Rd Stuart, FL USA 34996 e-mail: Support@RecruitAlliance.com

Resource Ocean (Workforce Exchange) - (269) 672-9521
Fax: (269) 672-2345 1692 12th St. R Martin, MI 49070 e-mail: Rosales@ResourceOcean.com
RINGO - (631) 393-9788
Fax: (631) 777-7628 445 Broadhollow Road Suite 112 Melville, NY 11747 e-mail: info@goringo.com
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Skillbay.Com Inc. - (800) 291-2230
Fax: (248) 619-2889 2899 E. Big Beaver Rd. No. 130 Troy, MI 48083 e-mail: sales@skillbay.com
SonicRecruit - (800) 882-3921
Phone: (888) 817-9698 * Fax: (510) 845-3608 6425 Chrisite Ave., Ste. 300A Emeryville, CA 94608 e-mail: info@sonicrecruit.com
SpiderXchange Inc. - (937) 298-8160
Fax: (937) 298-8054 2621 Dryden Rd. No. 107 Dayton, OH 45439 e-mail: sales@spiderxchange.com
TKO Systems - 631-471-1515
Fax: 631-471-1535 3900 Veterans Memorial Highway Suite 140 Bohemia, NY USA 11716 e-mail: gressler@tkosys.com
Top Echelon Network Inc. - (330) 455-1433
Fax: (330) 455-8813 PO Box 21390 Canton, OH 44701-1390 e-mail: marketing@topechelon.com

Vendor One (Comsys) - (877) 626-6797
4400 Post Oak Rd. No. 2575 Houston, TX 77027 e-mail: nray@comsys.com
Venturi Partners - (704) 442-5100
Fax: (704) 442-5137 Five Lakepoint Plaza

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2nd Fl. Charlotte, NC 28217 e-mail: webmaster@VenturiPartners.com

White Amber - (516) 927-1001
Fax: (516) 620-7249 2001 Marcus Avenue, Suite S160 New Hyde Park, NY USA 11042 e-mail: mcruz@whiteamber.com
The WorkCard Co. Inc. - (408) 736-3277
Fax: (408) 736-3122 1307 S. Mary Avenue Sunnyvale, CA 94087 e-mail: info@workcard.com
WorkforceLogic - (866) 296-3343
Fax: (709) 935-6124 19080 Lomita Ave. Bldg. 3 Sonoma, CA 95476 e-mail: info@workforcelogic.com
Workplace Software - 1.888.815.2888
Phone: 1.212.699.3810 * Fax: 1.212.699.3811 18 East 17th street 5th Floor New York, NY USA 10003 e-mail: info@workplace.net
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Website Resources http://www.navcon.net/VMS%20Decision%20Guide.pdf http://www.jordangroupinc.com/ http://www.staffingindustry.com/ http://www.naccb.org/
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Sample Rules of Engagement/Code of Conduct

Renewals/Extensions
Centralized VMS Group will monitor ending dates and end of funding for Consultants. Centralized VMS Group will start contacting the Hiring Manager 4 weeks prior to the end of the contract to obtain renewal status. Suppliers MUST not contact Hiring Manager regarding end of contract status; please contact the Centralized VMS Group if you want an updated status. Please stay in communications with the Centralized VMS Group regarding end dates; unless otherwise stated in writing; then the end date in ASP VMS System is the ruling date. Contract extensions will be entered into ASP VMS System; Suppliers are responsible for watching for, and responding to contract extensions in ASP VMS System. If extensions are not responded to, your consultant may lose their access to ASP VMS System to enter their time.
Contractor issues
Please contact the Centralized VMS Group directly regarding any issues with your Consultant. This includes: End date Time off Concerns Etc.
Non-compliance
Non-compliance in working with the Centralized VMS Group will result in being removed from the ABC Company Preferred Supplier program.
New jobs
Do not, under any circumstance, contact the Hiring Manager, or anyone in the Dept./Division regarding questions on the Job Request; all questions should go through the Centralized VMS Group. If you are asked by a ABC Company Manager/Director to provide resumes or project solutions directly to a Manager/Director in a Division/Dept. and you do not contact the Centralized VMS Group PRIOR to responding, you will be removed from the Preferred Supplier Program; ABC Company Executive Management requires that all consulting requirements go through the Centralized VMS Group. Please contact Centralized VMS Group for any questions relating to new job orders. Recruiting Consultants It is inappropriate to lure a Consultant by indicating that you have a better opportunity as a Preferred Supplier versus any other ABC Company Preferred Supplier. If ABC Company Supplier gets a job request, all Consultants will be considered on the qualifications of their Consultant in the same manner that any Preferred Supplier Consultants are considered. We do not decide on a Consultant because they come from a particular Supplier; all Consultants are given the same consideration. This type of behavior is not considered appropriate as a Preferred Supplier and will be seriously frowned upon and potential cause for being removed as a Preferred Supplier. It is the suppliers responsibility to make sure that ASP VMS System contact information is maintained. This includes all accounting, recruiting and sales contact. It is the suppliers responsibility to make sure that ASP VMS System generated invoices are paid in a timely manner. Supplier should contact Centralized VMS Group if invoices are not paid within a 30-40 day period.
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New Supplier contact

It is strongly recommended that the Supplier representative maintain consistent contact with the Centralized VMS Group.
Communications/Meetings from Centralized VMS Group to Suppliers

The Centralized VMS Group will provide any new and/or changed process information as needed to all Preferred Suppliers. The Centralized VMS Group is happy to meet with Suppliers as needed The Centralized VMS Group is seeking Suppliers that add value; please feel free to forward articles and/or information regarding the industry or technology. If this information is helpful to other Managers, Centralized VMS Group will forward the information and note which supplier sent the information. Proactive/non-solicited resume submittal Please do not submit resumes when there is no Job Request. If a Consultant, who has worked for ABC Company in the past becomes available, call the Centralized VMS Group regarding this Consultant; do not just email the resume. The Centralized VMS Group will review any (good) previously contracted Consultants.
Replacement of a Consultant
Centralized VMS Group will submit a new job request for replacement of a consultant who leaves prior to the end of the Contract. Supplier who lost the consultant does not have an exclusive right to replace.
Communications with ABC Company Managers/Directors

Managers/Directors/Associates of ABC Company do not wish to be contacted directly by suppliers; please contact the Centralized VMS Group with your requirements and requests. While we do not allow direct contact with Hiring Managers, we know that some Managers may contact you directly. Should this occur, please copy the Centralized VMS Group on any meetings with Managers/Directors; we may be able to provide you with additional background information before your meeting. Failure to include the Centralized VMS Group in ABC Company meetings could be reported against your quarterly review. If a ABC Company Manager contacts you directly regarding a job order and/or a project and you submit resumes or proposals directly without informing Centralized VMS Group you may be removed from the supplier preferred program. I do want to encourage invitations to events that your companies are holding; please forward any event invitations to me directly and I will forward them to the manager(s) of your choice. Please contact Centralized VMS Group to help facilitate any required meetings/lunches that you feel are necessary.
Lunches and meetings and events

Job Requests and Resume Submittals

Only one resume can be submitted for each Consultant needed for an open Job Request unless otherwise stated in the job order. Consultant original resume is required for each submittal; please keep logos off of the resume (candidates will be declined if logos are on the resumes). The Centralized VMS Group will usually only review resumes at the specified time noted in the Job Request and not before the due date/time, unless otherwise stated in the job order. This is to help you understand that ABC Company not looking for the fastest submittal, just the best candidate. Double submittals will be based on first-in-first-out. It is expected that all Consultants submitted has approved you to represent them for the specific Job Request. Please dont hesitate to call with questions; you can contact Centralized VMS Group via cell phone (312-617-3472) anytime with Job Request or candidate related questions.
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Job Requests are both urgent and important; they take top priority in the Centralized VMS Group If information, not on the Job Request, is discovered through Q&A, this new information will be sent out via email to the Suppliers; resume due date could change depending on the priority of the information discovered. Hiring Managers CANNOT be contacted directly for any questions regarding job orders or Consultant status. All communications must go through Centralized VMS Group. Centralized VMS Group will provide feedback as soon as possible on resume submittals; you may contact Centralized VMS Group if you do not feel you have received timely feedback. We will attempt to provide feedback to you in the same amount of time provided to you to find and submit a candidate. (e.g. if Centralized VMS Group allows you 3 business days to submit a candidate then expect a 3 day response time on feedback.) Suppliers are expected to technically test the consultant being submitted. The type of test and score should be submitted in the Candidate Information section of the submittal. Suppliers are expected to perform a background check and credit checks on candidates prior to start. This is new based upon the 2004 contract. Contract to hire positions as outlined in the original RFP agreement= document terms. Permanent request = document terms.
ASP VMS System Submittal Information Required Information

If the following information is not entered into ASP VMS System, your candidate will be automatically declined Supplier Submitted Bill Rate Consultant Related Skills Consultant Related Comments or Notes (this is where you sell your Consultant and tell ABC Company why you picked them; comments including he is excited to work for ABC Company or you will like this Consultant are NOT considered selling; selling means why did you pick this candidate technically. This is also where you will indicate what technical test they have taken their score). All Skills. Background and Credit Check information (pass or fail). Attachments resume must be attached as Word document (WITHOUT company logos). References (at least two must be entered prior to interview). If references are not completed prior to interview time, interview may be cancelled or candidate rejected. Optional Information: Certifications. Project Descriptions. Job Related information.
Interviews
It is recommended that consultants wear business attire for interviews unless you contact the Centralized VMS Group prior to the interview. Centralized VMS Group does not perform interviews; only the Hiring Manager and technical team perform interviews and make hiring decisions. Consultant interviewing should bring a copy of his/her resume. Again make sure there are no logos on the resume. Consultant should visit www.ABC Company.com prior to the interview. Consultant should arrive 10-15 minutes prior to the interview. Consultant should have the name(s) of the persons who they are interviewing with. They should not ask for anyone in Centralized VMS Group. If you do not know who your consultant is interviewing with then you should contact Centralized VMS Group prior to the interview.
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Supplier representative may escort the Consultant to the interview; if you want to sit in on the interview, please make that request with the Centralized VMS Group prior to the interview day. Some managers will allow this; the Centralized VMS Group does understand the value of this and will encourage this process. If the Supplier representative is allowed to sit in on the interview, the Supplier representative is not permitted to ask questions or respond during the interview. Centralized VMS Group will provide feedback as soon as possible on interviews; you may contact the Centralized VMS Group to provide feedback from the interviewee.
Your Consultant is starting at ABC Company Supplier Responsibility

Supplier representative must contact the Consultant on-site within the first two days of beginning on-site work to: Obtain a location and phone extension It is your responsibility to ensure they have the ASP VMS System log-in and password and knows how to enter their time (you can find their log in ID and status in ASP VMS System if their status is not in the Active state, contact Centralized VMS Group). Ensure consultant knows they must enter time each Monday by noon into the ASP VMS System . ABC Company utilizes the ASP VMS System for approving time sheets. ABC Company hiring managers are not authorized sign supplier time sheets. Inform your consultant to contact Centralized VMS Group x2828 to schedule time for Security Awareness and Information Security class within the first month (classes are required) when your consultants are scheduled for these meetings please make sure they attend.
Time sheets
Your consultant must enter their time in ASP VMS System no longer than 30 days after completing the work. If time is not entered in this timeframe, ABC Company will not pay for time worked; this is in the ABC Company contract as well. ABC Company managers cannot sign paper time sheets. You can see the status of a consultants time sheet in ASP VMS System; please refer to the ABC Company Supplier Billing Information Packet.
Dress Code
ABC Company has a business casual/casual dress environment although dress policy may change at times during the year. Consultants should up-scale their business dress to present a high level of professionalism for their Supplier and for the Centralized VMS Group. Shirts must always have collars.
On-premise conduct
Some consultants receive a ABC Company email address; Consultants should never use this email as their personal email. Any inappropriate emails found through IT monitoring will be cause for immediate end of Contract. Internet access while ABC Company does have Border Manager that prevents access to inappropriate sites should a consultant gain access to an inappropriate site IT monitoring could show this access and will be cause for immediate end of Contract. Any equipment provided to the Consultant by ABC Company is the responsibility of the Supplier; this equipment should be used for ABC Company business only. Remote access is only available if a consultant has obtained the proper authorization and equipment; no remote access should be attempted without approval. See Dress Code.
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Work Week
Some divisions have a standard workweek of 37.5 hours and some have 40 hours; your consultant should verify their work hours with the Division Manager.
Invoicing and Payments

ABC Company LLC will run Payment Register (invoice) Reports in ASP VMS System every two weeks. ABC Company LLC, not ASP VMS System, is responsible for payments to Suppliers. Suppliers may not submit invoices to ABC Company. ABC Company LLC will process checks for ASP VMS System Payment Register within 20-35 days after report is run. It is the Suppliers responsibility to ensure that payment has been received in a timely fashion. If payments are not received, or if there are questions regarding payments please contact the Centralized VMS Group directly. It is the Suppliers responsibility to make sure the Supplier accounting resources reconcile all payments to match ASP VMS System Payment Register. Please always have the ASP VMS System Payment Register number, invoice date and payment period information when contacting the Centralized VMS Group about payment questions. Please refer to the ABC Company Supplier Billing Information Packet for more information.
Staff Supplier Evaluation Categories for Performance Review

Category One: % Consultants submitted to jobs received. Category Two: % Consultants forwarded to Hiring Manager in relationship to Consultants submitted. Category Three: % of Consultants interviewed in relationship to Consultants forwarded to Hiring Manager. This category has a weighted average 2 times higher than category one. Category Four: Level of communications and value add to Centralized VMS Group and ABC Company.
Evaluation Criteria
Preferred Suppliers may either: Maintain Preferred Supplier status. Move off of Preferred Supplier status. Preferred Suppliers are expected to maintain the following performance standards: Respond to 80% of the jobs received AND Maintain above 75% in Category Two AND Maintain above 25% in Category Three AND Maintain consistent communications with Centralized VMS Group. Maintain consistent communications with consultants. Process Information: Suppliers not performing in either of the above categories will be removed from the ABC Company Preferred Supplier Program and will be replaced. Open slots in the Preferred Supplier Program may be filled with new Vendors. This supplier evaluation will be run each quarter during the year. Suppliers also have the ability to run evaluation reports in ASP VMS System to review your status. Any vendor who is removed from the Preferred Supplier program may not re-apply until the following year.
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Project Supplier Evaluation

Project Suppliers are required to respond to 100% of project requests. Project Suppliers will be evaluated on the criteria established for each project; lowest rated project firm maybe replaced at the end of any project RFP based upon viability of the supplier and the rating of the criteria selection. Project Suppliers will also be evaluated during and after a project. ABC Company management will assist in determination of Project Supplier status. Project Suppliers will also be evaluated on communications to Centralized VMS Group and value added services.
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Glossary
It is important to understand that the process of centralizing the procurement of contingent workforce is an evolving and relatively new practice for most companies. Terminology reflects this stage of development for these systems and often times multiple acronyms and definitions exist for the same general process or function. This glossary will define how a term or process is being defined for the purposes of this Best Practices Guide. Agreement: Fee schedule between the recruiter and client company covering the fee due, if the contractor is hired permanently by client company. You should have a conversion fee agreement for each and every contracting placement. The financial details of every placement are different, so you will need a separate agreement for each contractor you place to protect yourself. Alternative Staffing: Another term for "Contingent Staffing," includes all nontraditional work arrangements other than direct full-time employment, including: contractors, temporaries, consultants, self-employed, independent contractors and part-time workers. Buy-out Agreement: See "Conversion Fee Agreement." Candidate: Person to potentially fill a job opening. Usually refers to an applicant who has been qualified for the position and submitted to the client company (may then be known as a "submittal"). In contracting, after the candidate is placed they become the "Contractor." VMS Centralized Vendor Management -- The business process defined within an organization to centralize and facilitate the requisition, procurement, ongoing management, and payment of contingent staffing resources. Client Company: Company receiving services from "Contractors" who are employees of a "Staffing Company." Contract Technical Employee -- A temporary employee with technical skills who is employed for an extended period by a contract technical firm but works at, and is supervised on a day-to-day basis by, that firm's client. Typical contract technical jobs are engineer, draftsperson, designer, technical writer and editor, illustrator, programmer, and systems analyst. Job length typically is 3-12 months but may extend to two years or longer. (See also: Technical Services Firm.) Contingent Staffing: Flexible supply of labor to support a core of permanent employees in peripheral, non-core functions and during periods of increased demand. Contingent Workers: Includes all nontraditional work arrangements other than direct full-time employment, workers including: contractors, temporaries, consultants, self-employed, independent contractors, and part-time workers. Contracting: Triangular employment relationship where a "Staffing Company" supplies "Contractors" to a "Client Company" for a specific function and time period, at a specified hourly rate. Contractor: Employee of "Staffing Company" who provides services to a "Client Company" under the day-to-day supervision of the client. Conversion Fee: Placement fee earned by the recruiter when contractor is hired permanently by client company. Conversion fee is in addition to the hourly fee earned during the term of the contract. Core Employees: Permanent, "traditional" employees who have the critical skills necessary for an organization's continued existence. These employees guide the company's strategies for the future. Core employees are surrounded by a flexible ring of contingent workers who handle non-core work.
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Downsizing: Movement in Corporate America to reduce costs and become more competitive; reducing headcount to lower fixed costs. Flexible Staffing: Trend in American companies towards a core of permanent employees with critical skills necessary for a company's survival, surrounded by a flexible ring of contingent staff to handle peripheral, non-core functions. See also "balanced staffing," "contingent staffing," and "just-in-time staffing." Independent Contractor: An Independent Contractor provides services to a company, but is not an employee of that company. The company pays the Independent Contractor without withholding payroll taxes or paying the employer's share of payroll taxes. An independent contractor has the right to decide how the work will be done and may hire others to assist or do the work. Independent contractors also do not receive wages. Independent Contractors are under intense scrutiny from the IRS and states because of abuses costing billions of dollars of taxes. IT (Information Technology) -- A sector of business services that includes IT staffing, IT solutions consulting, and IT project management. Job Order -- Refers to a bona fide request to an employment agency to refer applicants for a specific permanent position with a customer. A job order is the specific set of requirements set forth by an employer for an actual position. Just-In-Time Staffing (JIT Staffing) -- A loosely used term that equates "flexible staffing" arrangements with the concept of "just-in-time" inventory control or delivery of parts for a manufacturing process. Rather than carrying inventory (or permanent employees), arrangements are made with a supplier to deliver parts (or help supply workers) just at the time when they are needed in the work process. MSP - Managed Service Provider A company that partners with a VMS provider and maintains an onsite program management presence. Outsourcing: Basic outsourcing is where the client company has an entire department staffed by the employees of a staffing company, from top to bottom. Can be done on or off the client company premises. See also "Vendor on Premises." Subcontracting arrangement Refers to staffing firms working through another staffing firm or primary vendor. Staffing Company: A company who is the employer of record for contractors and handles the back-office functions associated with payroll and administrative duties. Supplemental Staffing -- The provision of temporary workers to a client company to supplement the current workforce for peak loads, special projects, or planned and unplanned worker absences. Technical Services -- A segment of the temporary help market that includes computer programmers, systems analysts, designers, drafters, writers, editors, engineers, and illustrators. Technical Services Firm -- A firm that locates, recruits, and hires technical and/or engineering skilled personnel and then contracts with another company to assign its workers at the customer's location for a specified duration and/or project. (See also: Contract Technical Employee.) Technical Contracting: Contracting jobs such as engineers, programmer analysts, systems analysts, drafters, designers, and technical writers. Temp-to-Perm: A contractor (employee) is placed on an assignment with a client company based on the assumption that if the client likes the employee, the employee may be permitted to be hired by the client as a direct hire. A "try before you hire" practice.
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Traditional Employment: New term for permanent employment. Non-traditional jobs are the contingency positions. Vendor Neutral A program that promotes an equal opportunity for all vendors to received and respond to requirements. Particularly relevant when MSP or VOP having staffing arms of their business in addition to managing staffing programs. VMO Vendor Management Organization or Vendor Management Office The body of policies and procedures that surround the VMS software. The VMO can be either managed internally by the client or outsourced to a third part such as an MSP or VOP. VMS Vendor Management Systems Refers to software that is utilized to procure contingent staffing requirements. Often includes features and functionality from initial job definition to final invoicing and payment. VOP Vendor On Premises -- On-site coordination of a customer's temporary help services through an exclusive, long-term general contractor relationship with a temporary help company. The designated Vendor On Premises may enter into subcontracting relationships with other temporary help suppliers, or the customer may specify such relationships. Virtual Corporation: New term for maintaining a minimum staff of core employees, surrounded by a ring of contingent staff. Work Order -- Refers to a request from a customer for a specific type of service to be provided by one or more temporary employees for a specific period of time.
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Contracts
The following are contract samples for consulting firms.
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CONTRACT FOR SERVICES

COMPANY ABC, 123 State Street, City, State 12345, and its wholly-owned subsidiaries, (COMPANY ABC") and _____________________________, _______________________________ ("Provider"), agree as follows: 1. Services. 1.1 From time to time, Provider shall provide COMPANY ABC with certain services (the Work). The Work shall be performed on a task order basis. All Work performed by Provider shall be documented in a Task Authorization signed by authorized representatives of both parties and Provider shall only perform such Work specifically authorized by a Task Authorization. All Task Authorizations executed by both parties hereto are hereby incorporated herein by reference. 1.2 In the event the Task Authorization incorporates a proposal or other document, or both, prepared by Provider ("Proposal"), solely those portions of the Proposal which describe the proposed work effort shall be incorporated into the Task Authorization. Moreover, notwithstanding the limited incorporation of the Proposal, in the event of an inconsistency between any provisions or any Work set forth in the Proposal and the provisions set forth in this Contract or the Work set forth in the associated Task Authorization(s), the provisions set forth in this Contract, and the Work set forth in such Task Authorization(s) shall govern. COMPANY ABC may, at any time, by notice to Provider and with the concurrence of Provider, make changes within the scope of the Work, including but not limited to revisions of, additions to, or deletions of, portions of any such Task Authorization. Any such change shall be effective only upon a written amendment to a Task Authorization, which has been executed by both parties. If any mutually agreed to Work change causes an increase or decrease in the cost to Provider of, or the time required for performance of, this Contract and/or a Task Authorization, an appropriate adjustment shall be made to the cost provisions or period of performance, or both. For each Task Authorization, Provider's performance of the Work shall be under the general review of COMPANY ABCs Project Manager, who is shall be identified in the Task Authorization. COMPANY ABC, at any time, may designate a new or alternate Project Manager by written notice to Provider.
1.3
1.4
2. Term and Termination. 2.1 The Term of this Contract shall commence upon __________200_, and shall continue until terminated by either party as provided for in this Contract. 2.2 COMPANY ABC shall have the right to terminate any or all Task Authorizations outstanding, or any portion thereof, for any reason, upon written notice to Provider. Moreover, COMPANY ABC shall have the right to terminate this Contract, for any reason, at any time upon providing Provider with ten (10) days' prior written notice. Provider shall have the right to terminate this Contract, for any reason, upon providing COMPANY ABC with thirty (30) days' prior written notice. With the exception of Provider's obligation to perform services after the effective date of any such termination, and COMPANY ABC's obligation to pay for services performed by Provider after the effective date of any such termination, all provisions of this Contract shall survive the termination of this Contract. If a fixed fee is payable to Provider, as provided for below, then in the event this Contract is terminated, such fixed fee shall be pro-rated by Provider to equal a percentage of the fixed fee, set forth in the applicable Task Authorization, which is equal to the percentage of the Work, under such Task Authorization, actually completed. Upon any such termination (whether of this Contract or a Task Authorization in its entirety), Provider shall provide all Work Product (as defined below in Section 5) deliverables, as they then exist, to COMPANY ABC within ten (10) days' of such termination.
2.3 2.4
Compensation. 3.1 COMPANY ABC shall pay Provider in accordance with each Task Authorization including the costs, rates or other such amounts set forth therein. Except in the event the fee amount set forth in the applicable Task Authorization is a fixed fee, COMPANY ABC shall also reimburse Provider for
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actual and reasonable out-of-pocket expenses incurred in performance of the Work; provided however, that, Provider must receive prior written authorization from COMPANY ABC for all air travel and all such authorized air travel undertaken by Provider shall be by common carrier at coach or economy rates. Provider is not authorized to expend or commit any funds until such time as Provider's expenditure of funds is authorized through the Task Authorization(s). For each Task Authorization executed by the parties, COMPANY ABC shall not be obligated to pay Provider for any costs incurred in excess of the amount approved for Providers expenditure under the Task Authorization and Provider shall not be obligated to continue the Work, set forth in the Task Authorization, once the costs incurred equals the amount approved in the Task Authorization. 3.2 For each Task Authorization, unless the Task Authorization provides for a fixed fee, Provider shall account for its time utilizing the time reporting system set forth in the Task Authorization and that, by each Monday at noon, such time reporting system reflects the correct amount of time during which Provider performed Work during the immediately preceding business week. Moreover, for each Task Authorization, within thirty (30) days of the Work being completed under such Task Authorization, or if applicable, the termination date of such Task Authorization, Provider shall ensure that such time reporting system reflects the correct amount of time during which Provider performed such Work. Provider hereby waives any claims it may have for any amounts that may be payable for time not so reflected in such time reporting system due to Providers failure to perform its obligations under this Section 3.2. In the event Provider utilizes an automated time reporting system under a Task Authorization, for that Task Authorization, Providers time shall be billed to COMPANY ABC through that time reporting system; provided however, that Provider shall present a separate invoice to COMPANY ABC for such aforementioned out-of-pocket expenses. Provider shall present to COMPANY ABC such out-of-pocket expense invoices and all other invoices to be presented to COMPANY ABC, other than through an automated time reporting system, periodically, but not more often than once a month. COMPANY ABC shall use its best efforts to provide payment to Provider within thirty (30) days of COMPANY ABC's receipt of such invoices. All invoices shall specifically refer to the Task Authorization to which they relate. Provider shall include, with such invoices for out-of-pocket expenses, original receipts for all expenses in excess of Twenty-five dollars ($25.00). Terms and conditions on Providers invoices shall not add to nor modify this Contract. All amounts set forth in this Contract are in United States Dollars. 3.3 Provider shall maintain complete and accurate accounting records in accordance with generally accepted accounting practices. Provider shall preserve such records for a period of at least three (3) years after completion of the pertinent Work. COMPANY ABC shall have access to such records for purposes of audit, either through its own representatives or through an independent auditor selected and paid by COMPANY ABC. Any such review of Provider's records shall be conducted at reasonable times during business hours, and no more than twice annually. Confidentiality. 4.1 Provider shall hold in confidence and shall not copy, publish, disseminate or otherwise use any confidential information it receives from COMPANY ABC by virtue of this Contract including, but not limited to, any consumer credit information; provided however, that Provider may use (but not copy, publish, disseminate nor use for any other purpose) any such confidential information solely to the extent necessary for Provider's performance under this Contract. Such obligations of confidentiality shall not apply to information (a) which Provider can demonstrate, by its written records, was already in the possession of Provider prior to the first date of disclosure by COMPANY ABC; (b) which is now or becomes publicly known through no fault of Provider; (c) which Provider rightfully receives from third parties; (d) which by COMPANY ABC's written authorization is approved for use or release by Provider; or (e) which is required by law (i.e., an order of a court or data request from an administrative or governmental agency with competent jurisdiction) to be disclosed; provided however, that Provider shall provide to COMPANY ABC prior written notice before the disclosure of such information pursuant to this subparagraph (e) and shall use best commercial efforts to provide COMPANY ABC with such written notice at least ten (10) days prior to such disclosure..
3.3
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4.2
Any portion of such confidential information that is specific (i.e., business practices, etc.) shall not be within the foregoing exceptions to such obligations of confidentiality merely because such information is embraced by general disclosures that are within such exceptions. Moreover, the foregoing exceptions to such obligations of confidentiality shall not apply to a combination of features found in such information unless that combination and not just the individual features are within such exceptions. All tangible information Provider receives by virtue of this Contract shall be returned to COMPANY ABC no later than the completion date of the Task Authorization under which such information was obtained by Provider, unless otherwise agreed to in writing by COMPANY ABC, or, if applicable, the termination date of this Contract; provided however, that the obligations of confidentiality set forth in this Contract shall survive any such return of information to COMPANY ABC. Provider shall not publish, nor otherwise disclose to any third party, the results of the Work including, without limitation, the Work Product, without the prior written authorization of COMPANY ABC. The consumer information (including, but not limited to, consumer credit information) that COMPANY ABC maintains in its various databases is highly confidential and highly sensitive. Therefore, without limiting the foregoing obligations of Provider under this Section 4, Provider shall implement, and shall take all measures to maintain, reasonable and appropriate administrative, technical and physical, security safeguards ("Safeguards) to (a) insure the security and confidentiality of consumer information (which may include, but not necessarily be limited to, consumer credit information) that Provider receives from COMPANY ABC, directly or indirectly, under this Contract or otherwise has access to by virtue of this Contract; (b) protect against any and all anticipated threats or hazards to the security or integrity of such consumer information; and (c) protect against unauthorized access or use of such consumer information that could result in substantial harm or inconvenience to any consumer. Provider shall immediately notify COMPANY ABC in writing in the event: (d) of any changes to Provider's business, or in the event any other circumstances arise, which Provider knows, or has reason to know, will have a material adverse impact on such Safeguards; or (e) Provider becomes aware that its Safeguards are otherwise insufficient to meet its obligations under this Section 4.5. COMPANY ABC may, from time to time, request information pertaining to such compliance with this provision and Provider shall reasonably cooperate with any and all such COMPANY ABC requests. Moreover, COMPANY ABC shall have reasonable access to other records of Provider which are relevant to this Contract and to Providers facility for the purpose of verifying its compliance with the terms of this Contract. Any such review of Provider's records, facilities, or both, shall be conducted at reasonable times during business hours. Providers obligation to comply, with the provision of this Contract shall, in no event, be deemed contingent upon, or otherwise affected by, the aforestated audit rights of COMPANY ABC. Ownership of Work Product. The entire right, title and interest in and to all copyrights, patents, trade secrets, trademarks, trade names, and all other intellectual property rights associated with any and all ideas, concepts, techniques, inventions, processes, or works of authorship including, but not limited to, all materials in written or other tangible form developed or created by Provider during the course of performing the Work for COMPANY ABC under this Contract (collectively, the "Work Product") shall vest exclusively in COMPANY ABC. Provider hereby automatically assigns to COMPANY ABC at the time of creation of the Work Product, without any requirement of further consideration, the entire right, title, and interest in such Work Product including, without limitation, any copyrights, moral rights, and all other intellectual property rights pertaining thereto. Upon request of COMPANY ABC, Provider shall take such further actions including, without limitation, execution and delivery of instruments of conveyance, as may be appropriate to give full and proper effect to such assignment. Moreover, Provider shall also cooperate in prosecuting patent applications, infringement actions, and other patent enforcement procedures deemed necessary by COMPANY ABC with such directly related reasonable and actual expenses incurred by Provider reimbursed by COMPANY ABC. Residual Rights of Personnel. Notwithstanding anything to the contrary herein, Provider and its
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4.3
4.4
4.5
5.
6.
employees shall be free to use and employ its and their general skills, know-how, and expertise, and to use, disclose, and employ any generalized ideas, concepts, know-how, methods, techniques, or skills gained or learned during the course of any assignment, so long as it or they acquire and apply such information without disclosure of any confidential or proprietary information of COMPANY ABC and without any unauthorized use or disclosure of the Work Product. 7. Provider Intellectual Property Rights. Provider hereby grants to COMPANY ABC a worldwide, irrevocable, perpetual, royalty-free, non-exclusive license, including the right to sublicense, in and to any and all Provider, including, without limitation, each of Provider's employee's, owned or controlled intellectual property rights which are necessary for COMPANY ABC to be able to exercise unencumbered, its rights (including, without limitation, the right to make, use, perform, display, reproduce, distribute, create derivative works, offer for sale, import into the United States, and sell existing or hereafter developed products and services based on or incorporating the Work Product), set forth in this Contract. COMPANY ABC Intellectual Property Rights. Except as specifically, and solely to the extent, required to perform the Work for COMPANY ABC under this Contract, nothing in this Contract shall be construed, by implication or otherwise, to grant any right or license to Provider under any patent, invention, copyright, or any other intellectual property right, now or hereafter owned or controlled by COMPANY ABC. Representations and Warranties. Provider represents and warrants 1) that it has the experience and ability to perform the Work; (2) that it is, or will be the sole author of the Work Product; (3) that it will perform the Work in a professional, competent and timely manner; (4) that it has the power to enter into and perform this Contract; (5) that it has and will have the legal right to give to COMPANY ABC the rights set forth in this Contract; (6) that its performance of this Contract shall not infringe upon or violate the rights of any third party or violate any federal, state and municipal laws or regulations; and (7) it is under no obligation or restriction, nor will it assume any such obligation or restriction that does or would in any way interfere or conflict with this Contract. Provider represents and warrants that each of its employees who performs any Work is or will be bound (prior to the commencement of any Work by such employee) by an appropriate written agreement sufficient to ensure compliance with the provisions of this Contract, including without limitation, all grants and assignments of rights and ownership hereunder and the protection of COMPANY ABC's confidential information. The terms "employee" and "personnel" as used under this Contract shall include all of Providers employees and any and all independent contractors who are individuals (but not subcontractors doing business in any other form such as a corporation, partnership, etc. Subcontracting to such entities is not permitted under this Contract as set forth below in Section 14). Provider represents and warrants that for each employee assigned to perform Work under this Contract, Provider has performed reasonably sufficient background checks on each employee: (1) to ensure the accuracy of such employees employment chronology and educational credentials; and (2) to ensure such employee has no civil, criminal or credit history that would preclude successful fulfillment of Providers obligations under this Contract including, but not limited to, Providers consumer information safeguarding obligations set forth above. Provider represents and warrants that to a reasonable certainty no virus, turn-off device, invisible hypertext markup language hot link, Java applet Trojan horse, encryption code, lock-out device or similar program, macro or script, nor other tracking functionality of a hidden nature not disclosed to and authorized by COMPANY ABC, is included within the Work Product. Indemnification. Provider hereby indemnifies and saves COMPANY ABC harmless from and against any and all claims of any kind including, but not limited to, liability for injury to persons or damage to property, to the extent such claims arise out of Providers negligence, intentional wrongful conduct, or breach of this Contract (including, but not limited to, a breach of Providers representations and warranties), or any combination thereof, including, but not limited to, any and all expenses, costs, attorneys' fees, settlements, judgments or awards incurred by COMPANY ABC in
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8.
9. 9.1
9.2
9.3
9.4
10.
the defense of any such claim or lawsuit. The defense against any such claim shall be conducted and controlled by Provider at its own expense, but COMPANY ABC may have counsel present at COMPANY ABCs expense and shall be permitted to participate in the defense of the claim and all related settlement negotiations. Moreover, where COMPANY ABC is a party to the claim or a defendant, no settlement of any such matter which admits any liability on behalf of COMPANY ABC or imposes on COMPANY ABC any obligation other than the payment of amounts subject to indemnification by Provider shall be made by Provider without the written approval of COMPANY ABC, which approval shall not be unreasonably withheld. COMPANY ABC shall, to the extent practicable, provide Provider with all reasonably necessary assistance, information and authority to perform the above, with all expenses incurred by COMPANY ABC at the request of Provider, reimbursed by Provider. 11. Waiver of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR, AND BOTH COMPANY ABC AND PROVIDER HEREBY WAIVE AS TO THE OTHER PARTY, ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES INCURRED BY THE OTHER PARTY AND ARISING OUT OF THE PERFORMANCE OF THIS CONTRACT, INCLUDING BUT NOT LIMITED TO LOSS OF GOOD WILL AND LOST PROFITS OR REVENUE, WHETHER OR NOT SUCH LOSS OR DAMAGE IS BASED IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY, INDEMNITY, OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. THE FOREGOING NOTWITHSTANDING, AS TO SUCH DAMAGES INCURRED BY COMPANY ABC AS A RESULT OF THIRD PARTY CLAIMS, NOTHING IN THIS CONTRACT SHALL BE CONSTRUED AS LIMITING PROVIDERS OBLIGATIONS UNDER SECTION 10 ABOVE. IN ADDITION, EXCEPT FOR AMOUNTS DUE TO PROVIDER IN ACCORDANCE WITH SECTION 3.1 ABOVE, IN NO EVENT SHALL COMPANY ABC BE LIABLE TO PROVIDER, UNDER THIS CONTRACT, FOR ANY AMOUNT IN EXCESS OF THE AGGREGATE AMOUNT OF FEES PAYABLE BY COMPANY ABC TO PROVIDER UNDER THIS CONTRACT, OR TEN THOUSAND DOLLARS ($10,000.00), WHICHEVER AMOUNT IS LESS. Insurance. Provider shall obtain, and maintain for the period of performance of this Contract: (a) Worker's Compensation and/or all other Social Insurance in accordance with the statutory requirements of the jurisdiction in which Work will be performed and (b) Commmercial General Liability and Professional Liability Insurance including, without limitation, errors and omissions coverage, covering all Provider's operations under this Contract, in an appropriate amount, but in any event in a minimum amount of One Million Dollars ($1,000,000.00) per occurrence. Upon written request, Provider shall deliver to COMPANY ABC certificates evidencing the insurance obtained pursuant to the requirements set forth in this Contract. All policies of insurance obtained pursuant to this Contract shall (a) name COMPANY ABC as an additional insured; and (b) provide that such insurance will not be changed or canceled until thirty (30) days prior written notice has been given to COMPANY ABC. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Illinois regardless of the laws that might otherwise govern under applicable Illinois principles of conflicts of law.
12.
13.
14. Subcontracting and Assignment. This Contract and the rights and the obligations under this Contract with respect to Provider are personal to Provider and may not be assigned, transferred, nor subcontracted by any act of Provider or by operation of law without the prior written consent of COMPANY ABC. COMPANY ABC shall have the unrestricted right to assign this Contract to a Subsidiary of COMPANY ABC, a successor in interest to COMPANY ABC or to the purchaser of a portion of the assets of COMPANY ABC. For purposes of this Section 14 "Subsidiary" means COMPANY ABCs present and future subsidiaries of any tier and/or joint venture companies in which COMPANY ABC has at least a fifty percent (50%) share of ownership at the time of assignment of this Contract. 15. Assignment of Personnel. COMPANY ABC may interview the personnel Provider assigns to perform the Work. If COMPANY ABC determines that such personnel are not appropriate for the Work based
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on their specific or general skills or their experience, Provider shall make a reasonable effort to assign other qualified personnel. Moreover, COMPANY ABC may from time to time, for cause, request the removal of Provider's employee(s) from performing the Work. In the event COMPANY ABC requests the removal of Provider's employee(s) for cause during the first eighty (80) hours of such employee(s) engagement under a Task Authorization ("the probationary period"), then Provider shall not charge COMPANY ABC for such employee(s) time spent during the probationary period. In the event COMPANY ABC has already submitted payment for such time, then, Provider shall either provide COMPANY ABC, at COMPANY ABC's sole option, with a credit or refund equal to the amount paid. If COMPANY ABC requests a replacement, Provider will provide same as soon as practicable thereafter so as not to unnecessarily delay, disrupt, or interfere with business relationships or projects of COMPANY ABC. Moreover, should any personnel of Provider be unable to perform scheduled services because of illness, resignation, or other causes beyond provider's reasonable control, then Provider shall not charge COMPANY ABC for the first eighty (80) hours of such personnel's time in performance of the Work. In the event COMPANY ABC has already submitted payment for such time, then, Provider shall either provide COMPANY ABC, at COMPANY ABC's sole option, with a credit or refund equal to the amount paid. Moreover, Provider will attempt to replace such personnel within twenty-four (24) hours, or as otherwise mutually agreed to in writing by Provider and COMPANY ABC. 16. Construction and Severability. All references in this Contract to the singular shall include the plural where applicable. Titles and headings to sections or paragraphs in this Contract are inserted for convenience of reference only and are not intended to affect the interpretation or construction of this Contract. If any term or provision of this Contract is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
Independent Contractor. 16.1 Provider is an independent contractor. This Contract is not intended to create or evidence any employer-employee arrangement, agency, partnership, joint venture, or similar relationship of any kind whatsoever, between COMPANY ABC and Provider. Provider shall retain the right to perform services for others during the term of this Contract. COMPANY ABC shall retain the right to cause services of the same or a different kind to be performed by its own personnel or other contractors during the term of this Contract. 17.2 Provider understands that COMPANY ABC will not contribute to Medicare, Social Security or any other required employment taxes, nor will COMPANY ABC withhold income taxes from compensation paid to Provider. Provider understands that Provider will be responsible for paying and reporting one hundred percent (100%) of all applicable taxes and social insurance including, but not limited to, federal and state employment and income taxes, and social security taxes for itself and its employees. Moreover, Provider understands that neither Provider nor its employees will be entitled to receive any employment benefits from COMPANY ABC including, but not limited to, health, life or disability insurance; retirement or pension plans; paid vacation or sick leave; unemployment compensation or workers compensation insurance. 17. Solicitation of Employment. The parties agree that their respective employees, who have integrally participated in the implementation of this Contract, shall not attempt to hire, solicit for employment or otherwise enter into a contract with any employee(s) of the other party, who becomes known to them by virtue of this Contract, during this Contract and for six (6) months thereafter, unless expressly agreed to in writing by the other party. Notices. Any notice required to be sent under this Contract, may be delivered by hand, confirmed telecopier (facsimile) transmission, confirmed electronic-mail transmission, via nationally-recognized overnight courier, or mail, postage pre-paid, certified (or any foreign counterpart), return receipt requested, to the address set forth in the introductory paragraph, above. All such notices intended for COMPANY ABC shall be sent to the attention of COMPANY ABC's Project Manager.
18.
Force Majeure. Neither party shall be liable to the other for failure to perform or delay in performance under this Contract if, and to the extent, such failure or delay is caused by conditions beyond its reasonable control and which, by the exercise of reasonable diligence, the delayed party is unable to prevent or provide against. Such conditions include, but are not limited to, acts of God; failure of
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utilities; strikes, boycotts or other concerted acts of workmen; laws, regulations or other orders of public authorities; military action, state of war or other national emergency; fire or flood. The party affected by any such force majeure event or occurrence shall give the other party written notice of said event or occurrence. Publicity. Both Provider and COMPANY ABC shall submit to the other party for written approval, prior to use, distribution, or disclosure, of any material including, but not limited to, all advertising, promotion, or publicity in which any trade name, trademark, service mark and/or logo of the other party are used. Such party, from whom approval is being requested, will not unreasonably withhold its approval. Both parties will have the right to require, at each party's respective discretion and as communicated in writing, the correction or deletion of any misleading, false, or objectionable material from any such advertising, promotion, or publicity. No Waiver. No waiver by either party of any default, or failure of either party to exercise in any respect any right provided for in this Contract, will be deemed as a waiver of any prior or subsequent default of the same or other provisions of this Contract. Entire Agreement. This Contract constitutes the entire agreement between the parties hereto and supersedes all previous agreements and understandings, whether oral or written, express or implied, with respect to the subject matter contained in this Contract. Except as set forth above in Section 2, this Contract may not be altered, amended, or modified except by written instrument, signed by the duly authorized representatives of both parties. IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed as of the last date and year written below. The parties hereto agree that a facsimile transmission of this fully executed Contract shall constitute an original and legally binding document. ______________________________________ COMPANY ABC By: ________________________________ By: ________________________________ ________________________________ ________________________________ Name and Title of Signer Name and Title of Signer _______________________________ ________________________________ Date Signed Date Signed
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AITP VMS Best Practices Guide (updated: January 15, 2004)
AUTHORIZATION NO.: DATE: CONTRACT FOR SERVICES TASK AUTHORIZATION REFERENCE: Contract for Services dated _________________ between Company ABC ("COMPANY ABC"), and _______________________________. (Provider). 1. Work to be Performed: Description Specifications: Documentation Acceptance Criteria Assumptions/Dependencies Other 2. Providers Employees Assigned/Rates/Period of Task Performance: Provider Employee Rate Period of Task Performance
3. Maximum Authorized: The maximum aggregate total payments, under this Task Authorization, to Provider shall not exceed _________________________ Dollars ($________________), unless COMPANY ABC amends such limitation in a written amendment to this Task Authorization, duly executed by the authorized representatives of both parties. 4. Time Reporting System to be utilized by Provider (check one): ASP Time Sheet Other Specify: ________________________ COMPANY ABC Project Manager: This Task Authorization is hereby agreed to by the parties as evidenced by the signatures below. _______________________________________ COMPANY ABC By: Name: Title: Date: Name: Title: Date:
MASTER CONSULTING AGREEMENT

This Master Consulting Agreement (hereinafter referred to as Agreement) is made and entered into as of this _____day of __________________, 2003 by and between COMPANY NAME Delaware corporation (hereinafter referred to as Company Name), and ________________________ (hereinafter referred to as CONSULTING FIRM). RECITALS CONSULTING FIRM employs on a full-time basis numerous people and has contracts with consultants and/or consulting firms (consultant(s)) who have data processing, software code development or other information technology skills, knowledge and experience whom CONSULTING FIRM is willing to make available to COMPANY NAME during the term of this Agreement and subject to the terms and conditions set forth herein; and CONSULTING FIRM has agreed to convey to COMPANY NAME all right, title and interest in and the exclusive right to reproduce and copy the work product of the projects undertaken pursuant to this Agreement, including, but not limited to, all computer programs, designs, documentation and reports developed or enhanced for COMPANY NAME in accordance with this Agreement. In consideration of the mutual promises, representations and covenants set forth herein, the parties hereto agree as follows:
AGREEMENT ARTICLE I
The term of this Agreement shall be from ________________to June 30, 2006.
ARTICLE II SCOPE OF WORK

A. During the term of this Agreement, COMPANY NAME and CONSULTING FIRM shall agree on the portion of the Project or Projects to be completed during a specific time period. All deliverables and their due dates shall be set forth and all costs, including expenses shall also be detailed. 1. Time and Materials Projects - Once this document has been completed, CONSULTING FIRM and COMPANY NAME will agree on the number and level of employees or consultants to be provided by CONSULTING FIRM to COMPANY NAME for work on the particular stage of the project, if such services are to be provided on a time and materials basis. 2. Fixed-bid Projects - In the event that the services are to be provided on a fixed-bid basis then the Work Order shall reflect that fact and the scope of work and all assumptions shall be stated. For fixed-bid projects, the number and level of consultants provided by CONSULTING FIRM shall be determined by CONSULTING FIRM as necessary to complete the deliverable(s) by the due date(s). COMPANY NAME reserves the rights to interview any CONSULTING FIRM employee/consultant candidates whose qualifications were submitted to COMPANY NAME via their resumes. These interviews shall occur unless waived in writing by COMPANY NAME . Prior to any consultant(s) start date, CONSULTING FIRM will conduct a standard background check including, but not limited to, verification of identity, employment history, academic credentials and criminal check including all counties for the past seven years. Criminal violations that would preclude a worker from active assignment with COMPANY NAME would include but not be limited to incidents of violent behavior, any crime connected with minors/children, computer crime, embezzlement, forgery or fraud. In the event that the criminal check reveals such events, CONSULTING FIRM shall not offer such individual to COMPANY NAME . New consultant workers will not be permitted to begin their assignment with
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COMPANY NAME before the completion of the criminality portion of the background check. COMPANY NAME reserves the right to audit the background check records of assigned personnel on a as needed or random check basis, but this right shall not relieve CONSULTING FIRM of the obligation to perform such checks. Each employee/consultant of CONSULTING FIRM approved to work at COMPANY NAME will be designated to work on a specific project or projects by agreement of the parties. In the event that CONSULTING FIRM provides a consultant rather than its own employee to provide services hereunder the following conditions, in addition to those contained in this Agreement, shall apply: (a) Such consultant(s) shall be incorporated or be the employee of a corporation; (b) Such consultant(s) shall make themselves available to the general public for consulting services and not exclusively for COMPANY NAME . (c) CONSULTING FIRM shall have a written agreement with such consultant(s) or their employer under which all the terms of this Agreement are incorporated and binding upon the consultant(s) and/or their employer; and consultant(s) and/or their employer is/are responsible for employment, income and social security taxes for consultant(s) that arise from the services they are providing. (d) COMPANY NAME shall be named in writing as a third-party beneficiary of the agreement between CONSULTING FIRM and the consultant(s) and/or their employer insofar as the terms and conditions of this Agreement are concerned; and (e) If COMPANY NAME requests COMPANY NAME shall be provided with a fully executed copy of all the items set forth in this section A prior to the consultant performing services hereunder. B. It is contemplated that CONSULTING FIRM will perform its services in connection with this Agreement at the COMPANY NAME Corporation offices in CITY NAME , Illinois, or at such other location designated by the parties. When the services are performed at COMPANY NAME , the services will be performed within normal business hours unless otherwise jointly agreed by the parties. On time and material engagements COMPANY NAME reserves the right to limit the number of hours that CONSULTING FIRM works on any particular Work Order. To the extent that services are performed at COMPANY NAME premises, CONSULTING FIRM shall be permitted to utilize COMPANY NAME computer terminals, software, (excluding electronic mail services) telephones and ordinary supplies such as pencils, stationery, and the like; however, where CONSULTING FIRM utilizes its own equipment, electronic mail services, supplies or facilities, or those of any third party, COMPANY NAME shall have no obligation to reimburse it therefor. C. CONSULTING FIRM understands and acknowledges that under this Agreement COMPANY NAME neither promises nor guarantees any minimum number of consulting hours for any individual employee/consultant of CONSULTING FIRM or the CONSULTING FIRM itself. D. COMPANY NAME has entered into this Agreement based upon the assumption that CONSULTING FIRM has the expertise and capability to complete the assignment(s) described in the particular Work Order(s). COMPANY NAME is not responsible for training, seminars or any other educational resources necessary to assist CONSULTING FIRM in completing the project. In the event that COMPANY NAME and CONSULTING FIRM agree that it would be desirable to enhance the skill level of an employee/consultant provided by CONSULTING FIRM, COMPANY NAME may choose to send the specific employee/consultant selected to perform the task to a training class. COMPANY NAME shall pay for the training but shall not be billed for CONSULTING FIRM employees/consultants time during the training period. COMPANY NAME may provide CONSULTING FIRM with notice of various meetings such as project kick-off meetings. It shall be within CONSULTING FIRMS discretion whether or not to attend such meetings, however COMPANY NAME shall not be billed for CONSULTING FIRM time spent in attending such meetings. E. COMPANY NAME reserves the right from time to time to establish and modify guidelines and standards applicable to the time and materials projects and to CONSULTING FIRMS performance thereunder, and CONSULTING FIRM shall comply therewith. In the case of fixed-bid projects, the Change Request process set forth below shall apply.
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If COMPANY NAME wishes to make a change to one or more deliverable(s) as set forth in the applicable Work Order, it shall specify in writing what changes it wishes made. CONSULTING FIRM shall either (a) agree to the requested changes, in which case the Work Order shall be amended to reflect such changes, or (b) shall inform COMPANY NAME of any costs associated with the requested changes. COMPANY NAME and CONSULTING FIRM shall meet to review the costs for such changes and if they reach agreement, the agreement shall be reflected in a written amendment to the Work Order. F. CONSULTING FIRM shall, at COMPANY NAME request, prepare and submit documentation to evidence periodic progress covered by a particular Work Order or Work Orders. G. Subject to Article VIII hereof, CONSULTING FIRM shall not be restricted from performing other or similar services for others during the intended term hereof; except that CONSULTING FIRM employees/consultants assigned to work at COMPANY NAME or on COMPANY NAME projects shall not provide services to any person or business entity in the quick-service restaurant industry for two years after ceasing to provide services to COMPANY NAME , unless otherwise agreed to in writing. H. CONSULTING FIRM employees/consultants will use the development standards, tools, and methods that the internal COMPANY NAME staff uses. CONSULTING FIRM employees/consultants performing services at COMPANY NAME must observe COMPANY NAME holiday schedule. Work hours, overtime and vacation time must be coordinated with the COMPANY NAME supervisor and will not be unilateral decisions. I. Neither party shall have the right to use the other partys name or trademarks without the express written consent of an officer of such party. ARTICLE III CENTURY DATE CHANGE REQUIREMENTS CONSULTING FIRM warrants that any software developed by CONSULTING FIRM and delivered to COMPANY NAME will fully comply with the following millennium compliance statement with no limitations. The definition of compliance is the ability to: Correctly handle date information before, during and after 1 January 2000 accepting date input, providing date output and performing calculation on dates or portions of dates; Function accurately and without interruption before, during and after 1 January 2000 without changes in operation associated with the advent of the new century assuming correct configuration; Where appropriate, respond to two digit date input in a way that resolves the ambiguity as to century in a disclosed, defined and predetermined manner; Store and provide output of date information in ways that are unambiguous as to century; Manage the leap year occurring in the year 2000, following the quad-centennial rule. ARTICLE IV DISABLING CODE CONSULTING FIRM covenants, warrants and represents that is has taken all reasonable steps to test any software developed hereunder (including software modifications) for Disabling Code (as defined below) and that the software is and shall be free of Disabling Code as of the date of delivery by CONSULTING FIRM, and that CONSULTING FIRM shall continue to take such steps with respect to future enhancements or modifications to the software. CONSULTING FIRM shall not invoke any Disabling Code on any of COMPANY NAME systems. The term Disabling Code means computer instructions, features or functions that may permit CONSULTING FIRM or a third party to, or may automatically: (a) alter, destroy or inhibit the software and/or COMPANY NAME processing environment; (b) erase, destroy, corrupt or modify any data, programs, materials or information used by COMPANY NAME or store any data, programs, materials or information on COMPANY NAME computers without the consent of COMPANY NAME ; (c) discontinue COMPANY NAME
1. 2. 3. 4. 5.
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effective use of the software; or (d) bypass any internal or external software security measure to obtain access to any hardware, software or data (data includes, but is not limited to, any data or information belonging to COMPANY NAME , as well as any data or information belonging to another party that is in COMPANY NAME possession) of COMPANY NAME without the written consent of an officer of COMPANY NAME , including, but not limited to, other programs data storage and computer libraries. Disabling Code includes, but is not limited to, programs that self-replicate without manual intervention, instructions programmed to activate at a predetermined time or upon a specified event, and/or programs purporting to do a meaningful function but designed for a different function. CONSULTING FIRM further covenants, warrants and represents that it shall maintain a master copy of each version of the software free and clear of any Disabling Code. Upon COMPANY NAME request, CONSULTING FIRM agrees to make such master copy available to COMPANY NAME , with appropriate provisions for security thereof, for comparison with, and if necessary, correction by CONSULTING FIRM of COMPANY NAME copy of the software. ARTICLE V VIRUS PROTECTION To the extent that any computer equipment is used by CONSULTING FIRM in conjunction with the Services and CONSULTING FIRM provides software or equipment to COMPANY NAME , CONSULTING FIRM must use up-to-date anti-virus software on all such equipment and systems, which shall constitute commercially reasonable efforts to deliver all software and equipment virus free. As used in the preceding sentence, up-to-date anti-virus software shall mean that CONSULTING FIRM uses virus definition files made available by the anti-virus software publisher no more than seven (7) days prior to the date of the complained of incident. With respect to any CONSULTING FIRM equipment or software which may interface directly with the COMPANY NAME network system, CONSULTING FIRM will provide COMPANY NAME Technology Assurance and Security group the CONSULTING FIRMS standard software load on a representative CONSULTING FIRM employee laptop prior to accessing any portion of COMPANY NAME Corporate Network or shared resources for a technical review to determine if CONSULTING FIRM is in compliance with COMPANY NAME standards. Any CONSULTING FIRM hardware or software not in complete compliance with COMPANY NAME standards will not be allowed to access any portion of the COMPANY NAME Corporate Network or shared resources. If a request is made for CONSULTING FIRM to use remote access to the COMPANY NAME network and COMPANY NAME approves such a request, CONSULTING FIRM shall use only COMPANY NAME approved method(s) for remote access to the COMPANY NAME network. All such requests for remote access must be submitted to COMPANY NAME Technology Assurance and Security group. CONSULTING FIRM must have approved anti-virus protection software and update virus definition files on a weekly basis, unless a new or variant virus or malicious code is identified by COMPANY NAME and communicated to CONSULTING FIRM and in such case, the updates will occur daily. All storage media will be scanned on a daily basis or files will be scanned on a real time basis by virus protection software as those files are accessed, and any infected files will be immediately deleted. CONSULTING FIRM will be responsible for making any and all configuration changes or purchases, which may be required, based on the above referenced COMPANY NAME evaluation. Any decision and/or recommendation made by COMPANY NAME Technology Assurance & Security on the adequacy of the anti-virus protection software used by CONSULTING FIRM, is applicable only to the date of the test and/or statement issued. It is the responsibility of the CONSULTING FIRM to ensure timely updates, patches, etc., and to ensure their software and protection remains current (as specified above). With respect to software deliverables, immediately before delivering them to COMPANY NAME , CONSULTING FIRM will scan such deliverables for viruses with the most recent virus definition files available from the anti-virus software publisher. If CONSULTING FIRM fails to perform any obligation set forth in this section and if as a result, the software deliverable or interfacing equipment introduces a virus into COMPANY NAME system(s), CONSULTING FIRM will be responsible for any costs in removing the virus from the affected system(s), in addition to being liable for other damages resulting from such introduction.
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ARTICLE VI FEES AND TAXES A. In full and complete consideration of the satisfactory performance by CONSULTING FIRM of any particular assignments undertaken in accordance with the project, COMPANY NAME agrees to pay the fee set forth in the pending Exhibit B. B. COMPANY NAME agrees to pay CONSULTING FIRM a fee which corresponds to the skill level of the CONSULTING FIRM employee/consultant and is no higher than that fee paid for that specific level of individual by CONSULTING FIRMS best customers. The skill level needed shall be specified on outgoing resource requests. Fees shall not increase during the term of this Master Consulting Agreement, except that rate adjustments may be made by mutual agreement of the parties for those employees/consultants of CONSULTING FIRM who have been assigned to COMPANY NAME continuously for one (1) year and are still assigned to COMPANY NAME at the time of the rate adjustment. C. CONSULTING FIRM shall bill COMPANY NAME in accordance with the COMPANY NAME guidelines that shall be furnished to the CONSULTING FIRM. COMPANY NAME reserves the right to change these guidelines upon thirty (30) days written notice to CONSULTING FIRM. D. For time and materials engagements, the assigned workers will enter their time into the approved COMPANY NAME time reporting system. These hours, once approved by the hiring manager directing the workers, will be the only hours for which the CONSULTING FIRM will be compensated. Hard copy or paper invoices will only be used as an audit for initial payments for new vendors or newly assigned workers. Approved hours will be processed for payment semi-monthly. COMPANY NAME shall have the right to change this method of entering hours upon thirty (30) days notice to CONSULTING FIRM. CONSULTING FIRM agrees that no compensation shall be due it for hours not entered within sixty (60) days of the performance of service. CONSULTING FIRM hereby waives any claims for compensation for any hours not entered within that sixty (60) day period. E. If COMPANY NAME requests that CONSULTING FIRM provide an invoice and multiple employees/consultants of CONSULTING FIRM are simultaneously assigned to a single COMPANY NAME project, then a single invoice shall be issued to COMPANY NAME covering all such CONSULTING FIRM employees/consultants. . F. Business expenses for CONSULTING FIRM employees/consultants are the sole responsibility of CONSULTING FIRM. COMPANY NAME shall not be responsible for such expenses unless expressly agreed to in writing by an officer of COMPANY NAME . In the event that COMPANY NAME agrees to reimburse travel expenses of CONSULTING FIRM, such reimbursement shall be made in accordance with the Information Services Consultant Travel Expense Reimbursement Policy, which is attached hereto as Exhibit C. COMPANY NAME retains the right to modify the Policy from time to time. G. COMPANY NAME shall, in addition to any other undisputed amounts payable under this Agreement, pay all sales, value-added, excise, use and any other taxes of whatever nature imposed by any governmental authority by reason of the payment of fees and expenses as contemplated by this Agreement; provided, however, that: (i) COMPANY NAME shall not be liable for any taxes based on CONSULTING FIRMS income, assets, franchise or net worth or employment or other similar income taxes payable by CONSULTING FIRM or its Personnel; and (ii) COMPANY NAME obligation to pay such amounts shall at all times be subject to the obligation of CONSULTING FIRM to provide timely notice, wherever possible, of its intent to pay such amount and to allow COMPANY NAME opportunity to contest or defend against the imposition of such amounts. Without prejudice to the foregoing, COMPANY NAME shall pay to CONSULTING FIRM such additional amounts as are paid to or on behalf of CONSULTING FIRM Personnel performing services resulting from (i) the payment or reimbursement of expenses being treated as taxable income to such Personnel and/or (ii) due to the secondment or relocation of such Personnel for the performance of Services; provided that (A) CONSULTING FIRM advised COMPANY NAME that such additional amounts were likely to be incurred prior to such amounts actually becoming due, (B) COMPANY NAME had a reasonable, , but
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in no event less than thirty (30) days, opportunity to take steps to avoid the incurring of such taxes (e.g., causing resources to be relocated), and (C) COMPANY NAME did not take such steps to avoid the incurring of such taxes. H. Overtime hours once approved by COMPANY NAME Management shall be compensated at the same rate as non-overtime (straight-time) hours. ARTICLE VII TITLE A. CONSULTING FIRM and its employees/consultants agree to and do hereby grant to COMPANY NAME , without further consideration, the entire right, title and interest (including all moral and authors rights, if applicable) of CONSULTING FIRM and its employees/consultants in and to the work product, copyright, patent mask works and trademark of any and all projects CONSULTING FIRM undertakes pursuant to this Agreement, including but not limited to all developments, inventions, improvements, methods, processes, procedures computer programs and improvements to those programs, documentation and related material and discoveries, whether or not patentable, conceived of or reduced to practice in the course of or pursuant to the performance of services rendered hereunder. CONSULTING FIRM shall not incorporate any of its property or any property of a third party (NonCOMPANY NAME Property, which includes but is not limited to, developments, inventions, improvements, methods, processes, procedures computer programs and improvements to those programs, documentation and related material,) into any work product for COMPANY NAME without the express consent of COMPANY NAME . In the event that COMPANY NAME consents to the inclusion of Non- COMPANY NAME Property CONSULTING FIRM and its consultants agree to grant to COMPANY NAME a worldwide, irrevocable, royalty free and perpetual license to any NonCOMPANY NAME Property which is incorporated in any of the work done for COMPANY NAME , including the right to distribute work in which the incorporated NonCOMPANY NAME Property resides or which was developed by use of such Non- COMPANY NAME Property, to COMPANY NAME licensees, subsidiaries, affiliates, joint ventures and business partners. Nothing herein shall be construed to grant COMPANY NAME ownership of any Non- COMPANY NAME Property which is in existence as of the date of this Agreement, or is subsequently developed by CONSULTING FIRM, without the use of COMPANY NAME Confidential Information, for itself or a third party. B. CONSULTING FIRM and its employees/consultants acknowledge and agree that COMPANY NAME , without further consideration, has the sole right to reproduce, distribute, translate, publish, license, dispose of, sell, and to authorize others to do so, any and all computer programs, enhancements, documentation and related material developed or undertaken by CONSULTING FIRM and its employees/consultants while rendering services in accordance herewith, consisting of, by way of example and not by way of limitation, computer program machine codes and source codes, operating instructions, input information, specifications and related documentation. C. CONSULTING FIRM represents to COMPANY NAME that it and its consultants have no prior obligations to grant rights to others arising by contract, express or implied, written or oral, which may restrict, detract from or affect the grant to COMPANY NAME provided herein. D. CONSULTING FIRM agrees to deliver to COMPANY NAME as requested and supplied by COMPANY NAME such duly executed instruments of assignment or applications necessary to vest in COMPANY NAME or its designee the sole and exclusive ownership of and the right to apply for and prosecute patent, copyright and trademark applications covering each such invention, improvement, discovery or trademark. CONSULTING FIRM further agrees that it will at all times, at COMPANY NAME request and expense, aid COMPANY NAME in preparing or giving testimony in any and all patent, copyright, trademark application or other judicial or quasi-judicial proceedings. E. CONSULTING FIRM agrees to promptly make a full and complete detailed written disclosure to COMPANY NAME of each computer program and all related material including, but not limited to, in whatever media such materials exist, computer program machine code and source code, object code, operating instructions, filenames, input information, format specifications, routines and
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instructional documentation, inventions, improvements or discoveries covered by the aforementioned grant. ARTICLE VIII CONFIDENTIALITY AND RESTRICTION ON USE AND DISCLOSURE A. CONSULTING FIRM agrees that all documentation, data, manuals, records, papers, reports, descriptive and pictorial material, printed or written technical information, drawings, notes and other information provided to CONSULTING FIRM by COMPANY NAME , and reproductions thereof, and all such material and data produced or received by CONSULTING FIRM during performance of the services rendered hereunder or relating to COMPANY NAME including, without limitation, in whatever media such materials exist, computer programs, source code, object code, operating instructions, filenames, input information, specifications, routines and instructional documentation (hereinafter referred to as Confidential Information), shall be solely COMPANY NAME property and shall be held in strictest confidence by CONSULTING FIRM and any of its employees/consultants assigned to work at COMPANY NAME . CONSULTING FIRM and its employees/consultants shall also hold all third party software, information and documentation supplied to it by COMPANY NAME in strictest confidence. This paragraph, however, shall not apply to information and documentation in the public domain or which may otherwise be generally available to the public. B. All Confidential Information shall be considered and treated by CONSULTING FIRM as COMPANY NAME confidential and proprietary property, the nature and contents of which shall not be disclosed to others or used without written permission from COMPANY NAME . C. CONSULTING FIRM agrees to return to COMPANY NAME Confidential Information and all other property of or related to COMPANY NAME upon completion of its consulting relationship with COMPANY NAME . ARTICLE IX NO ASSIGNMENT This Agreement and the rights provided CONSULTING FIRM hereunder are personal to CONSULTING FIRM and shall not be assigned, transferred, shared or divided in any manner by CONSULTING FIRM without the prior written consent of COMPANY NAME , provided, however, that COMPANY NAME shall not refuse to consent to such an assignment to any corporation the shares of which are owned solely and exclusively by CONSULTING FIRM (in which event said shares shall not be subsequently transferred without prior notice to COMPANY NAME , and shall bear a legend to that effect). ARTICLE X NO AGENCY CREATED A. CONSULTING FIRM and any of its individual employees/consultants shall have no authority, express or implied, to act as an agent or employee of COMPANY NAME , its subsidiaries or affiliates for any purpose whatsoever. CONSULTING FIRM is, and shall remain, an INDEPENDENT CONTRACTOR. CONSULTING FIRM shall have the sole right, obligation, and discretion to hire, assign, fire, discipline, evaluate, supervise, manage, train, assign work, define jobs, determine job content, maintain records of hours, perform payroll functions, be responsible for all obligations and liabilities which CONSULTING FIRM may incur in connection with this Agreement, including the obligation to pay all employment, income and social security taxes arising hereunder, and determine all other terms and conditions of employment for all of CONSULTING FIRMS employees, and secure all appropriate insurance coverage, in the amount of at least Five Million ($5,000,000.00) Dollars (with COMPANY NAME being named as an additional insured), including employee workers compensation insurance, comprehensive general liability with personal injury endorsements for libel, slander and defamation, as may be required by COMPANY NAME from time to time.
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B. CONSULTING FIRM represents that all of its employees assigned to COMPANY NAME projects are full-time employees of CONSULTING FIRM, eligible for benefits and under the professional control of CONSULTING FIRM. CONSULTING FIRMS employees shall not be eligible to participate in any of COMPANY NAME employee benefits programs, including but not limited to, any bonus, pension, profit sharing, stock option, 401(k), health, sickness, dental, accident, life, disability, retirement, severance, vacation and other paid time off, tuition benefits, deferred compensation, or insurance which COMPANY NAME may maintain for the benefit of any of its employees, even if CONSULTING FIRMS employees are determined to be common law or statutory law employees of COMPANY NAME . In addition, CONSULTING FIRMS employees shall not be entitled to unemployment benefits in the event this Agreement terminates, or workers compensation benefits in the event CONSULTING FIRMS employees are injured in any manner while performing services hereunder, even if CONSULTING FIRMS employees are determined to be common law or statutory law employees of COMPANY NAME . ARTICLE XI INDEMNITY CONSULTING FIRM shall forever protect, save and keep COMPANY NAME , its subsidiaries and affiliated companies, as well as their respective corporate officers, directors and employees, harmless and indemnify said parties against and from any and all claims, demands, losses, costs, damages, suits, judgments, penalties, expenses and liabilities of any kind or nature whatsoever arising out of or in connection with CONSULTING FIRMS performance of services hereunder and grants of title conveyed to COMPANY NAME by CONSULTING FIRM. ARTICLE XII REMEDIES CONSULTING FIRM acknowledges that damages in the event of breach of Article VIII of this Agreement may be difficult or impossible to ascertain and, therefore, CONSULTING FIRM consents to the entering of temporary and permanent injunctive relief, without bond, against any unauthorized use or disclosure by CONSULTING FIRM of any Confidential Information in order to enjoin such breach, without thereby limiting any other remedies or rights that COMPANY NAME may have at law or in equity. ARTICLE XIII NONSOLICITATION OF EMPLOYEES A. Neither COMPANY NAME nor CONSULTING FIRM shall hire or seek to hire the employees of each other who have worked on a project covered by this Agreement unless, in the case of a CONSULTING FIRM employee, (1) the employee has provided services to COMPANY NAME for a six (6) month period, or (2) the employee has not provided services to COMPANY NAME for ninety (90) days, or, in the case of a COMPANY NAME employee, the employee has not been employed by COMPANY NAME for at least one (1) year. B. In the event that an employee dissolves his/her employment relationship with the CONSULTING FIRM, COMPANY NAME shall not be prohibited from using the services of such employee in the same capacity and through a different CONSULTING FIRM. C. Nothing herein shall prevent either party from hiring the subcontractors of the other party. ARTICLE XIV SURVIVAL OF REPRESENTATIONS All representations, covenants and agreements by CONSULTING FIRM herein shall survive termination or expiration of this Agreement.
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ARTICLE XV SUBSTITUTION OF INDIVIDUAL CONSULTANTS A. CONSULTING FIRM agrees that, under a time and materials assignment, within the first thirty (30) calendar days of a consultants work at COMPANY NAME pursuant to a Work Order, COMPANY NAME may require CONSULTING FIRM to replace such employee/consultant with a substitute consultant who is suitable to COMPANY NAME . B. For one week after COMPANY NAME notifies CONSULTING FIRM that it desires such a substitution, CONSULTING FIRM has the exclusive right to propose substitute employees/consultants to fill the vacant position. After this one-week period, COMPANY NAME has the right to accept proposals from anyone with regard to candidates to fill the vacant position. C. Should COMPANY NAME choose to make such a substitution of an individual employee/consultant, COMPANY NAME reserves the right not to pay for the services of the replaced employee/consultant. D. CONSULTING FIRM may replace an individual employee/consultant, but only upon providing COMPANY NAME with at least thirty (30) days written notice. It shall be CONSULTING FIRMS responsibility to provide such training and information, at CONSULTING FIRMS sole expense, as to allow the substitute employee/consultant to provide services to COMPANY NAME at the same skill and project knowledge level as the individual to be replaced. Training shall include having the new individual work with the individual to be replaced for a period of time to be agreed upon between COMPANY NAME and CONSULTING FIRM, but in no event shall such period be less than two weeks. Additionally, COMPANY NAME shall have the right to designate certain employee(s)/consultant(s) as key to a project. These individuals shall not be replaced without the consent of COMPANY NAME . The restrictions contained in this section shall not apply if the individual to be replaced terminates their employment or business relationship with CONSULTING FIRM. Additionally, the prohibitions in this Agreement against hiring employees of CONSULTING FIRM shall not apply to those key individuals referred to above whom terminate their employment or business relationship with CONSULTING FIRM. ARTICLE XVI TERMINATION AND EXTENSION A. This Agreement or any Work Order under it may be terminated at any time at will and without cause by either party upon fourteen (14) calendar days written notice to the other party, or in the event of a CONSULTING FIRMS material breach of this Master Consulting Agreement, without notice. Additionally COMPANY NAME shall have the right to terminate any particular Work Order without notice where CONSULTING FIRM fails to make adequate, timely and satisfactory progress pursuant to the particular Work Order in question. B. If and when COMPANY NAME believes that CONSULTING FIRM employee/consultant will finish his/her work before the Projected End Date provided in his/her Work Order, COMPANY NAME may terminate such persons work for COMPANY NAME so long as two (2) weeks prior notification of such termination is given to CONSULTING FIRM. C. At any time during the assignment period for a particular CONSULTING FIRM employee/consultant, the parties may agree via a signed writing to extend that persons Projected End Date to a mutually agreeable future date. D. In the event of the termination of this Agreement by COMPANY NAME , COMPANY NAME sole liability to CONSULTING FIRM shall be for payment of properly and timely completed services performed prior to the effective date of termination and which were accepted by COMPANY NAME , less any offsets against said amounts which COMPANY NAME shall be entitled to recover. ARTICLE XVII LAW GOVERNING The terms and provisions of this Agreement shall be interpreted in accordance with and governed by the laws of the State of Illinois. Additionally, CONSULTING FIRM shall, and shall be responsible for ensuring that CONSULTING FIRMS Personnel shall (1) perform all obligations of CONSULTING FIRM under this Agreement in
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compliance with all federal, state, local, foreign and intergovernmental laws, directives, ordinances, rules, orders and regulations, and (2) acquire all permits or other documents necessary for CONSULTING FIRM to perform all of its obligations (Legal Requirements). CONSULTING FIRM shall indemnify COMPANY NAME for any claims that arise out of its failure to comply with this paragraph. ARTICLE XVIII LANGUAGE The parties have requested that this Agreement and all documents contemplated by this Agreement be drawn up in English. Les parties aux prsentes ont exig que cette entente et tous autres documents envisags par les prsentes soient rdigs en anglais. ARTICLE XIX ENTIRE AGREEMENT This Agreement shall be deemed to constitute the entire agreement between the parties hereto relating to its subject matter. CONSULTING FIRM acknowledges and confirms that neither COMPANY NAME nor anyone acting on its behalf has made any statement, promise or agreement, verbally or in writing, in conflict with the terms of this Agreement or that in any way modifies, varies, alters, enlarges or invalidates any of the provisions hereof and it is agreed that no obligations of COMPANY NAME shall be implied in addition to the obligations herein expressed. ARTICLE XX NOTICES All notices required under the terms and provisions hereof shall be in writing, by certified or registered mail or by personal delivery. Any such notice shall become effective only upon receipt at the following addresses by the designated person, which upon written notice, may be changed from time to time: If to COMPANY NAME : COMPANY NAME Corporation One COMPANY NAME Plaza CITY NAME , Illinois 60523 Attention: Title: Senior Vice President With a copy to: General Counsel And if to CONSULTING FIRM: _________________________________ _________________________________ _________________________________ Attention: _________________________
(Please Print) (Please Print)
Title: _____________________________ IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. COMPANY NAME CORPORATION By: Title: Senior Vice President ____________________________________ By: Title: ______________________________
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EXHIBITS EXHIBIT A EXHIBIT B EXHIBIT C NOTICE OF REQUIREMENT WORK ORDER TRAVEL REIMBURSEMENT POLICY
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EXHIBIT A NOTICE OF REQUIREMENT PROJECT DESCRIPTION
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EXHIBIT B WORK ORDER TIME AND MATERIALS VENDOR NAME DATE SUBMITTED I. This Work Order is subject to the Master Consulting Agreement executed by COMPANY NAME Corporation and the Consulting Firm named above. The terms of the Master Consulting Agreement are hereby incorporated into this Work Order. II. LOCATION OF ASSIGNMENT: COMPANY NAME Corporation CITY NAME , Illinois 60523 III. SKILLS AND EXPERIENCE REQUIRED: Skills associated with the _________________ position profile as defined in the COMPANY NAME System. IV. NAME OF THE COMPANY NAME PROJECT MANAGER AND PLATFORM LEADER:
V. NAME OF AUTHORIZED CLIENT REPRESENTATIVE: VI. INDIVIDUAL ASSIGNED AND HIS/HER CORRESPONDING RATE: VII. COMPANY NAME PROJECT(S) NUMBER, PROJECT(S) NAME, DESCRIPTION OF WORK TO BE PERFORMED CONSISTENT WITH THE PROJECT(S) PLANS, APPROXIMATE START DATE(S) AND PROJECTED END DATE(S):
VIII. COMPLETION CRITERIA: In accordance with the Completion Criteria in the referenced Project Plan and with the approval of the assigned Management Team. COMPANY NAME CORPORATION ONE COMPANY NAME CITY NAME , ILLINOIS 60523 By: Title: Date: By: Title: Date:
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EXHIBIT B WORK ORDER FIXED BID VENDOR NAME DATE SUBMITTED I. NOTE: This Work Order is subject to the Master Consulting Agreement executed by COMPANY NAME Corporation and the Consulting Firm named above. The terms of that Master Consulting Agreement are hereby incorporated into this Work Order. LOCATION OF ASSIGNMENT: COMPANY NAME Corporation CITY NAME , Illinois III. NAME OF THE COMPANY NAME PROJECT MANAGER AND PLATFORM LEADER:
II.
IV.
NAME OF AUTHORIZED CLIENT REPRESENTATIVE:
V.
COMPANY NAME PERFORMED:
PROJECT NAME AND DESCRIPTION OF WORK TO BE
VI.
COMPLETION CRITERIA: In accordance with the Completion Criteria in the above referenced Project Plan and with the approval of the assigned Management Team.
COMPANY NAME CORPORATION ONE COMPANY NAME PLAZA CITY NAME , ILLINOIS 605 By: Title: Date: By: Title Date:
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EXHIBIT C CONSULTANT TRAVEL EXPENSE REIMBURSEMENT POLICY ALTERNATIVE TO TRAVEL As an alternative to travel, videoconferencing should be considered when face-to-face communication is not mandatory. This has the greatest opportunity to save travel costs and unproductive travel time. REIMBURSEMENT When consultants are on assignments, which require them to spend time away from their permanent place of work, they will be reimbursed for authorized expenses. Expenses are required to be promptly reported, adequately explained and supported by receipts on an expense report. A consultant should neither make nor lose money because of traveling on company business. Attached is an example of the minimum information requested for all consultant travel charges submitted to the COMPANY NAME .
Air Travel
Class of air travel COMPANY NAME Corporation policy is all flights must be booked as coach. No first class air travel is allowed. The Company is not responsible for the cost of upgrades. The CEO and COO are the only ones who can approve deviations from this policy. Outside vendors whose travel costs will be charged to COMPANY NAME must follow COMPANY NAME policy. Booking air travel United Airlines is the preferred airline for COMPANY NAME Corporation. Significant discounts are available on United Airlines and other Star Alliance carriers, especially on full fare tickets, so these carriers should be used unless there are compelling cost or schedule advantages to alternatives (see below). COMPANY NAME also has arrangements with America West Airlines, Delta Air Lines, Northwest Airlines, and USAirways that provide for smaller discounts on business travel. All discounts apply ONLY on tickets purchased from COMPANY TRAVEL AGENCY, which is why it is mandatory to use COMPANY TRAVEL AGENCY for booking travel. Travel agency Travel 1-877-623-xxxx Monday Friday 8:00AM 6:00PM Central Time If a weekend stay substantially reduces the airline ticket price, COMPANY NAME may pick up the expenses for the extra day(s). COMPANY NAME should not pay extra money due to this weekend stay. These arrangements must be pre-approved by the Department Head or equivalent. On long-term assignment, COMPANY NAME will allow a return flight home every other week.
Air Phone Charges

Air phone expenses should not be charged and will not be reimbursed LODGING
Making Hotel Reservations

All hotel reservations must be made through Company Travel agency , except for very large meetings and conventions. Reservations should not be made directly with the hotel. Please book lodging and car rental using COMPANY TRAVEL AGENCY even if your travel does not require a commercial airline flight. Neither
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COMPANY TRAVEL AGENCY nor arrangements.
COMPANY NAME
will assess a booking fee to lodging or car rental
Hotel Selection Guidelines

COMPANY TRAVEL AGENCY will make hotel reservations at COMPANY NAME preferred properties when you travel to areas where the company has negotiated rates. A preferred hotel listing is available in Appendix A. Consultants and vendors should always use The Lodge when staying or conducting meetings in the Chicago area. COMPANY NAME owns The Lodge and staying at this property on COMPANY NAME Campus saves the Company a significant amount of money. COMPANY NAME to take advantage of consultants, and vendors will be required to use these pre arranged terms when possible COMPANY NAME hotel rates.
Ancillary Hotel Charges

COMPANY NAME Corporation does not allow the following lodging-related charges: All hotel telephone charges excluding 1-800 number access charges. Use cell phones and calling cards. Spa / salon charges. Charges at in-hotel convenience stores for sundries (e.g. magazines, toiletries).
MEALS & SUNDRY EXPENSES: On short term travel assignments, a spending limit of forty-two ($42.00) dollars per day is allowed to cover the actual cost of food and beverages as well as miscellaneous expenses such as personal phone calls. On longerterm assignments where corporate condominium or apartment arrangements exist, a spending limit of thirty-four ($34.00) dollars per day applies. TRANSPORTATION TO AND FROM AIRPORT: Reasonable costs are reimbursable. For limousine service between NAME and Midway, use West Suburban Travelers. (630) 668-9600 CAR RENTAL Car rental is expensive, so the need for a car should be compared with other modes of transportation. Many of COMPANY NAME preferred hotels have shuttle service to and from airports and major local destinations, such as regional offices, which should be used when available. Please contact the property directly for more information. Depending on the length of stay, limousines and taxis are often more cost-effective alternatives to car rental, especially in more expensive destinations such as Chicago, New York, and Philadelphia. When a car is needed, our preferred company is Hertz. Please book your car rental through COMPANY TRAVEL AGENCY, who has preloaded COMPANY NAME discounted rates with Hertz. Booking and paying for a mid-size car or smaller unless the size of the group dictates something larger. One car is allowable for each group of three or fewer individuals. For example, if five (5) individuals are traveling together, two (2) rentals is reasonable. You must refuel the car before you return it to the rental agency. Hertz should always be used domestically (within the 50 United States). Internationally, where Hertz discounts are not as great, rates should be compared with rates of preferred car rental companies in the country in which you are traveling. Hertz rates include unlimited mileage for round-trip rentals and free loss damage waiver (LDW) on business rentals. Please make sure to book through COMPANY TRAVEL AGENCY to capture your free insurance. Please decline all insurance in the event it is offered. For business rentals at international destinations, COMPANY NAME Insurance Department recommends you accept all insurance. CITY NAME and OHare or CITY
Other car rental charges

COMPANY NAME Corporation will not permit the following charges:
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Any refueling charges. Always decline the refueling option and return the car with a full tank of gas. Any insurance on domestic car rentals.
OTHER: The following items will not be reimbursed: Charges for sports activities or health club facilities; Doctor bills, prescription and non-prescription medications; Gift shop/sundry charges; Laundry and dry cleaning fees; Movie rentals in-flight or in-room; Office supplies, books, software; Valet parking or car washes. Charges for excess baggage, passport/visa, or air travel insurance. Entertainment. Note: to the If there are any questions concerning this travel policy, please contact of the I/S H/R Team Following is an example of the minimum information requested for all consultant travel charges submitted COMPANY NAME Information Services department.
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CONSULTANT TRAVEL EXPENSE REPORTING Consultant: John Smith Project: Financial Management (Project #6901) Description Round-trip Airfare Chicago to Minneapolis Hotel accommodations (Minneapolis Ramada - $80 per day from 3/1 to 3/3 Meals & Sundry Expenses: 3/1 (meals - $32,) 3/2 (meals) 3/3 (meals) 3/4 (breakfast) Subtotal Car rental (Minneapolis 3/1 to 3/4 Total for trip Round-trip Airfare Chicago to Denver (Direct billed) Hotel accommodations (Denver Sheraton - $90 per day from 4/4 to 4/14 Meals & Sundry Expenses: 4/4 (dinner) 4/5 (meals - $33, 4/6 (meals - $35, 4/7 (meals) 4/8 (meals) 4/9 (meals) 4/10 (meals) 4/11 (meals - $32,) 4/12 (meals - $34,) 4/13 (meals) 4/14 (meals) 4/15 (breakfast - $7,) Subtotal Car rental (Denver 4/4 to 4/15) Total for trip Total to be reimbursed Amount 240.00 35.00 37.00 38.00 10.00 120.00 148.00 818.00
990.00 22.00 36.00 38.00 34.00 30.00 32.00 30.00 38.00 38.00 34.00 31.00 10.00 373.00 300.00 2031.00 2849.00
Please include receipts for expenses not included under the daily spending limit. In the event a receipt is not obtained for a small dollar expense, a brief explanation should be entered on a piece of stationery and included with the travel expense report. Please include Itinerary from COMPANY TRAVEL AGENCY
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VMS System RFP Samples Sample #1 I. Company Background

1. Please give a brief history of your organization including the types of services and personnel that you provide. 2. Does your company provide contract employees as well as manage staffing suppliers? 3. Summarize your companys qualifications to provide vendor management services to CUSTOMER. 4. Please provide your most recent financial statement and your last three years audited financial statements.
II.
Vendor Management Overview

1. Summarize overall capabilities and experience in providing staffing vendor management solutions. Please limit your response to 4 pages (or other number determined by CUSTOMER). May want to choose this question or #3 above 2. Summarize the technology component of your vendor management program. Provide high-level system details: 3. Requisition Process 4. Approval Process 5. Candidate Submission and Selection 6. Contractor Onboarding 7. Timekeeping 8. Reporting 9. What unique characteristics set your technology apart?
System Overview 1. Supplier must have a detailed, written Disaster Recovery Plan including response time to
2. 3. 4. 5. 6. 7.
restore the system in the event of the primary system failure, as well as scheduled system backup process to protect data. Scheduled downtime shall be performed after CUSTOMER business hours (before X:00 am EST and after X:00 p.m. EST). Vendor must notify CUSTOMER seventy-two (72) hours prior to scheduled downtime Who owns your code development? Is any of the code developed by third parties? If so, what functionality was developed by third parties? Please discuss your ability to locate your server application outside the CUSTOMER firewall. Discuss the security of the server within your facility. What security measures have you taken to ensure that CUSTOMER data is not available to other corporations who may be using your system? Please discuss system redundancy plan.
System Support
1. Please identify the hours of operation and support staff available. 2. Please explain your companys level of support staff. 3. What types of support resources are available for CUSTOMER users (web tutorial, telephone support, written instructions, etc.)?
III.
1. 2. 3. 4. 5. 6.
Implementation
Provide an overview of your implementation strategy. Provide an overview of your Implementation Team. Describe the transition from the implementation team to the ongoing Account Management Team. Suggest a timetable for implementation. What are the critical components of a vendor management program implementation? Would you recommend piloting the program first?
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7. Describe the role that CUSTOMER will be expected to play during implementation. Please approximate required CUSTOMER personnel requirements. 8. Transition Plan Provide a comprehensive plan including the timeline showing how your organization plans to transition all existing staffing suppliers into the new vendor management model.
IV.
Training
1. Provide a detailed training plan necessary for all users including CUSTOMER end users, suppliers and contract employees. 2. What communication vehicle and materials would be used to educate all levels of using managers? 3. Would training be conducted face-to-face, on-line, via phone conference or web interface? 4. How will you supply ongoing training for new users after initial training is complete?
V.
Account Management
1. What account management structure would you recommend for CUSTOMER? 2. What are the roles, responsibilities, and reporting relationships of your Account Management Team? 3. Where is this team physically located? 4. How do you measure your Account Team's performance? 5. What elements of this team are most critical to its success? 6. How frequently would the Account Management meet with CUSTOMER to discuss and review supplier performance requirements? What elements are most important to include in these discussions? 7. How would you incorporate CUSTOMERS goals to improve overall cost savings and dollars spent with diversity suppliers? 8. How would you handle program expansion to include additional CUSTOMER sites/business units? 9. Describe your process for determining contractor rate structures.
VI.
Vendor Management
1. Provide a narrative outlining your supplier relationships. Give an example of an exceptional supplier partnership. 2. Have you ever had a staffing supplier refuse to participate in your vendor management program? 3. What processes do you use to manage your suppliers satisfaction, quality, performance metrics, pricing and policy compliance? 4. Please describe your staffing vendor management program is it a tiered program or an allinclusive broadcast program? 5. What metrics are used to monitor supplier performance? 6. What are the steps used to qualify and add new suppliers? What process is used to terminate suppliers? 7. Please comment on your ability to communicate supplier benchmarking data that you have attained through working with other companies. 8. Explain your position on who holds the contracts with the staffing services suppliers.
VII. VIII.
Reporting Invoicing
1. Please describe your electronic reporting capabilities. 2. Provide examples of your most frequently used reports (please limit to xx). 1. How do you pay your suppliers? 2. How does your billing system capture items such as company number, department code, costs center, etc? 3. What are your EDI or EFT capabilities? 4. What is your process for time reporting validation? Please include your systems capability for the hiring manager to delegate his/her approval authority.
IX.
Customer Satisfaction
1. How do you measure customer satisfaction? 2. Describe your ability to deliver and assess the results of a customer satisfaction survey.
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3. What performance metrics are currently in place with other customers that would be relevant to measure customer satisfaction?
X.
General Questions
1. Please provide (3) vendor management references including name of customer, name of reference, title, phone number, and e-mail address. In addition, identify how long you have provided these customers with vendor management services, what primary skill categories you manage, how many contractors you are currently managing and how many orders are filled per month. 2. Describe your most unique vendor management program. 3. Describe a vendor management program that failed and the reasons for the failure. How large was the annual spend for this failed program? Disclosure of the customer is not required. 4. Provide (3) examples in which your vendor management programs have delivered hard cost savings to your customers. Provide statistical information on total spend and hard savings.
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Sample #2 Introduction Company Overview

[Offer the vendors a high-level overview of your company describing your line(s) of business and annual revenue. Typically, this would also include number of offices, number of employees, number and types of contingent workforce, etc.]
History
[Offer the vendors a history of why this solicitation has been released and what they can expect by returning a response.]
Scope of Work
[Offer the vendors a high-level overview of what would be expected of them should they be awarded the work.]
Insurance Requirements
[Outline your minimum insurance requirements.]
Response Requirements
[Outline specifics for returning a response such as the due date, number of hardcopies, number of softcopies, address for return, labelling specifications, etc.
Timeline
[Outline timeline including date submitted to potential vendors, date for questions concerning RFP, due date for responses, date of final selection, date of anticipated implementation start date.]
General Information
1. Provide a brief overview of your organization. Include whether or not you are a subsidiary of another company. 2. Name of Account Representative, telephone number, and e-mail address. 3. Provide an executive summary on the general financial health of your company. Please include your most recent year of audited financial information as an appendix to the response. 4. How many employees do you have (do not include parent company if applicable)? How many employees do you have dedicated to training? Help desk? Implementation/deployment? Client Services overall? Development? 5. Please provide your top 10 customers you would be willing to put us in touch with. 6. Please list the customers you have implemented your solution with that are no longer customers. Explain why they are no longer customers. 7. What differentiates you from your competition?
Vendor Management
1. 2. 3. 4. 5. 6. 7. Briefly describe your vendor management solution. What are the benefits of a vendor management solution? What are the benefits to our suppliers? How do you evaluate and rank suppliers? Do you have your own automated system or do you use a third party system. If we select your vendor management solution, do we have to use your automated system? Does the solution include representatives from your company on-site at our location(s)?
Automation 1. Provide a brief overview of the proposed automated solution.

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Requisitioning Process
1. 2. 3. 4. Describe the standard workflow from requisition to placement within the system. Briefly describe how suppliers submit candidate data, resumes and comments. Does the product allow the hiring manager to select their preferred agency? Describe. Does the product allow for pre-populated templates for frequently posted positions that can be customized as necessary? Describe. 5. Can interviews be scheduled through the system? 6. Briefly describe how many levels of approval hierarchy that the system can accommodate.
Client Servicing Support

1. Provide a description of your technical support process. Is support available 24/7? Can all users (client and supplier) call the support line? 2. Provide descriptions of your training offering with associated costs.
Reporting
1. Describe your reporting capabilities. 2. Can report data be exported for use in other applications? If so, which applications do you support? 3. List the standard reports provided. 4. Do you offer ad-hoc reporting? 5. What are the top 3 most useful reports you provide to your customers/suppliers?
Time and Expense Capabilities

1. 2. 3. 4. 5. Does your automated solution include time and expense functionality? Describe the time submittal and approval process? Do consultants enter their own time? Do you have a limit to the number of consultants that can enter time? Can time be tracked by multiple projects? Can projects be allocated to multiple cost centers?
Billing
1. 2. 3. 4. 5. Does your automated solution include consolidated billing? If so, please describe. Do you pay the vendors or will we continue to pay the vendors? Will the vendors be required to send invoices? Can you interface with our financial system? What is your process for vendors to reconcile their invoices?
Technology
Describe the technology of your solution. Do you require any unique hardware and/or software? Describe your current security processes. Include both physical location and data security. Provide the disaster recovery plan for your service. Describe the capabilities of your product to interface with ERP systems such as [CLIENT TO NAME THEIR SPECIFIC PACKAGE HERE]. 5. Outline your standard procedures and frequency for back up of client data. 1. 2. 3. 4.
Implementation & Transition

1. Outline a high-level implementation plan for [CLIENT] in the event service is awarded to your company. 2. Identify the client resources required during implementation. 3. Please describe the time to implement with several of your current customers and provide approximate size (# of contractors, contractor annual revenue, etc.) 4. What is the smallest and largest engagement youve completed? 5. Outline your vendor adoption methodology.
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6. What are some key learnings youve had as a result of implementing your solutions?
Pricing
1. Detail the rates for your proposed solution, inclusive of ongoing fees, one-time charges and any other rates that will be incurred by [CLIENT] or its suppliers. 2. Provide a projected cost to implement your proposed solution. 3. State the efficiencies in financial terms that [CLIENT] will realize as a result of implementing your application/solution. 4. What is the rate for customizations that are or could be requested by [CLIENT]?
Miscellaneous
1. 2. 3. 4. 5. 6. 7. 8. 9. Explain your position on vendor neutrality. How can you ensure we receive the lowest rates while maintaining quality? Do you provide any service or cost savings guarantees? What are the top benefits of implementing your solution(s)? Please provide a one page case study on how you helped a customer. Is your solution in practice anywhere outside the United States? Do you offer any other workforce solutions? Please list your top three competitors. Please compare your strengths and weaknesses against your competitors.
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Sample #3 SUPPLIER/PROVIDER INFORMATION Introduction

The following three sections describe the complete contents of what XYZ Inc. expects in each response and possible presentation (if requested). Each supplier is asked to submit all of the requested data in the order as listed, in the format, if any, described. Deviations, if necessary, require an explanation. Each response should have a cover page that references the title of this RFP and clearly displays the name of the responding supplier. If chosen as the Managed Services Provider to XYZ Inc., XYZ Inc. will use your responses to sections 4, 5, and 6 as a basis for a global contract and related service-level agreement (SLA). Your RFP responses will be used to build a baseline of key measurables that will become part of the final contract and SLA.
General Supplier Information

XYZ Inc. is seeking to develop a long-term strategic partnership with the Managed Services Provider that we select. In light of that long-term business arrangement, XYZ Inc. is seeking an understanding of some of the key information regarding its potential strategic partner. Please provide a description of your company including, but not limited to: Year founded Company headquarters location Locations of other global facilities History of company growth (please identify if growth occurred through acquisition or mergers) Describe your corporate culture and how your company addresses this on a global basis Identify your vision of the managed services industry for the next five years
Supplier Global Presence

XYZ Inc. desires to work with an established Managed Services Provider that already has a global presence and the ability to provide service and support to XYZ Inc. facilities worldwide. Please detail your companys global presence, including a map showing your facilities in North America, Europe, and Asia/Pacific. Please include the XYZ Inc. facilities listed in Appendix A on this same map in order to determine how your facility locations match XYZ Inc.s facilities. In addition, please provide the following information for the previous two years for each of your local offices that would serve the XYZ Inc. facilities listed in Appendix A. This information should be sorted by the five skill sets discussed in Section 2.3 (Information Technology, Engineering, Manufacturing, Clerical and Administrative Support, and Finance). Please include only headcount and spending numbers for those skill sets that were ACTIVELY managed under a current Managed Services Agreement with one of your customers. Supplemental staffing numbers for clients who DO NOT have a managed services agreement with your firm should NOT be included. This answer should be included as Attachment A and will not be considered as part of the 30-page limit for this RFP. The number of internal employees that work at each of the local offices The average number of temporary employees and dollar spending under management by the local office, sorted by the five skill sets discussed in Section 2.3 The average number of temporary employees subcontracted by the local office The number of on-site Managed Services operations supported by the local office Indicate those offices which are company owned, franchised, or under a different name
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Management
XYZ Inc. wants to understand the long-term direction of its potential Managed Services Provider. Please outline in detail the management structure you would plan to put in place for the XYZ Inc. account. How would the day-to-day account be managed at both the corporate and the local level? Explain what type of training and development opportunities are provided to the account management team as well as additional bonus, incentive, and reward programs. Please describe your core competency. What distinguishes your company from its competition? Include a summary of the key advantages of your firm. Describe your companys experience managing supplemental staffing vendors in the five skill sets outlined above (Information Technology, Engineering, Manufacturing, Clerical and Administrative Support, and Finance) for a manufacturing company (ideally, one in the medical device industry). Discuss your expectations from a business relationship between XYZ Inc. and your company. Be specific.
Financial Analysis
XYZ Inc. wants assurance that its Managed Services Provider is financially secure and has the financial resources necessary to meet XYZ Inc.s global business needs. If this information is available on the Internet, please provide a link to that information as your answer to these four questions. Please provide total revenue for the past three years and forward projections for two years. State revenue by major business segments, as well as revenue by key offices that would support the XYZ Inc. account (if applicable). State targets, performance, and trends on internal key financial ratios: EBIT, profit margin, RONA, etc. Identify any outstanding or pending litigation and describe the associated risk.
Alliances
XYZ Inc. wants to know of any third parties or strategic business partners, including subcontractors, involved in servicing the accounts you CURRENTLY manage. Please discuss the current business relationship between your company and those business partners. Please identify any third-party businesses, including subcontractors, that would be involved in servicing the XYZ Inc. account and state the nature of the service to be provided by these companies. Please discuss the current business relationship between your company and those business partners. Upon review of the XYZ Inc. locations as outlined in Appendix A, please identify any XYZ Inc. location that would be serviced by a third-party business partner or subcontractor. Please discuss the nature of the services to be provided by that business partner or subcontractor.
Customer References
Provide names of at least 3 (three) customers who are of comparable size and are involved in business lines that are similar to XYZ Inc. It is recommended that these customers cover most of the geographic areas described in 4.3.1. Each reference should include: Company name Address Point of contact (name and direct phone number of the person who is willing to talk to XYZ Inc.) Account Retention
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Please provide the names of former customers who have not renewed contracts with you during the past two years. Please provide the reason you did not retain the account(s). If applicable, please provide a name and phone number of a person we may contact.
DELIVERABLES Supplier Recruitment/Selection

Explain your companys standard process for recruiting/attracting vendors to provide resources for any supplemental staffing assignment at XYZ Inc. in Information Technology, Engineering, Manufacturing, Administrative and Clerical Support, and Finance. How do you evaluate vendor performance? Please describe additional creative recruitment strategies for attracting and retaining qualified candidates in a tight labor market. Describe your companys process (if any) for client specific recruitment requirements (job fairs, open houses, client-specific ads, etc.). If any of these costs are passed on to the client, provide the basis and formula for these costs in the pricing section under 6.2.2. Provide your companys recruitment policy and process for attracting minority-, women-, or disabledowned supplemental staffing vendors. Please explain how your company handles special accommodations for disabilities that may need to occur at the client location but are for your employees. What is your process for communicating those needs to the hiring location? XYZ Inc. requires mandatory criminal background checks (going back seven (7) years), a 5-panel drug screen from a NIDA certified lab, and employment/education verification for all supplemental staffing assignments. How do you monitor vendor compliance with these types of requirements? Detail your companys policy and procedures for ensuring that there is protection for XYZ Inc. against coemployment issues on both a corporate and local level. Order Fulfillment Describe your order fulfillment process. Detail how you would identify candidates, response policies for customer requests, standard fulfillment time commitments, etc. for filling open positions at a XYZ Inc. business location which has an on-site vendor management staff. Describe your order fulfillment process. Detail how you would identify candidates, response policies for customer requests, standard fulfillment time commitments, etc. for filling open positions at a XYZ Inc. business location which DOES NOT have an on-site vendor management staff. What sort of response time for filling positions in the skill sets above can XYZ Inc. expect? What sort of Service Level Agreements (SLAs) would you provide? Describe your communications process and the status updates that XYZ Inc. could expect regarding your ability/inability to fill the position within the desired timeframe. Provide your plan for providing replacement coverage for no shows or cancellations. Describe your companys quality performance guarantee.
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For orders that you receive from XYZ Inc. that are not typically filled by existing vendors (i.e. positions that may have special skill sets or professional certification requirements), describe your ability to fill these orders and any additional processes or costs associated with these special order requests. Detail your policy on payrolling services (XYZ Inc. refers a particular person to fill a supplemental staffing position who is not currently employed by your company or one of our existing vendors). Provide your companys policy and processes for providing on-site administration, including both full-time and part-time on-site presence. Provide information on office space requirements, headcount ratios, network and telecommunications specifications. Indicate the costs, if any, associated with implementing and maintaining on-site administration that would be charged to XYZ Inc.s corporate office or business units in Section 6.2.2. Describe how your company would deal with pre-existing master vendor agreements for current XYZ Inc. locations.
Time Keeping
Does your system offer a Web-based time entry system? If so how does it work? What sort of PC and/or Internet access is required in order to use the system? Please include any additional costs for this system as part of your pricing proposal in Section 6. What alternate time entry methods are available for those contract labor workers who do not have access to either a PC or the Internet? Please include any additional costs for this system as part of your pricing proposal in Section 6.2.2. Does your time keeping system provide an interface to accept time entry data that is downloaded from another system? If so, what data format is required? How are manager approvals of entered time handled? Are multiple approval levels allowed and how is access to the approval system controlled? How is the list of available charge numbers managed and controlled? Can approved charge numbers be specified for each contract worker? Can your time entry module be used to do time entry/accounting for XYZ Inc. employees as well as for supplemental staffing employees? If so please explain any changes in the system or process that would be required. If an additional cost or fee is involved, please make sure those costs are included as an optional cost in Section 6 of your response to this RFP. What limitations, if any, are there on the length or types of characters used for the charge number? Does the system support multiple levels within a project charge number; for example, charging time at the project, task, or activity level? How is the list of cost allocation transactions managed and controlled?
Vendor Management and Evaluation

Please list any subsidiaries, divisions or alliance partners who are currently doing business with XYZ Inc.. Please provide the company name, volume of business, and XYZ Inc. location where they are doing business. Discuss how your company and those team members who are working with XYZ Inc. can assist us in selecting the high quality, competitively priced vendors to meet our contract labor staffing needs in all areas of our business. What processes and procedures would you use to reduce the overall number of vendors that XYZ Inc. is using for supplemental staffing?
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Reporting
When responding to this section, please note if there are any differences between reporting for the overall XYZ Inc. Corporation and reporting for the current business units. Also indicate if different reporting systems or operating systems will be used for any foreign locations of XYZ Inc.. List and describe the various types of management reports your company can provide. Provide samples of your standard management reports in an electronic form. Please indicate whether these reports can be manipulated or sorted by XYZ Inc.. Is the data available for download by XYZ Inc.? Please describe your software systems ad hoc reporting capabilities. Does your system support userdefined reporting at the corporate, business unit, and department levels of detail? Can labor rates be reported on by such factors as region, skill set, and position title? Are these reports available on-line or over the Web? Please describe your companys ability to provide custom or ad hoc reports to XYZ Inc.. These reports may include all locations from a XYZ Inc. Corporation perspective or by individual business units or by department within a business unit. Is ad-hoc reporting accomplished using the current data set or are reports run against a reporting database (for example, are reports run against an extract of your database that is updated nightly)? Please describe how often that data is updated. Performance Standards/Quality Assurance Provide the internal performance standards your company uses to measure performance for on-site supplemental staffing programs. Describe how your company drives compliance to these quality standards and XYZ Inc.s Service Level Agreements. How does your company measure and report the cost savings associated with your services? Please provide sample reports. This answer should be included as Attachment B and will not be considered as part of the 30-page limit for this RFP. Describe how your company determines and measures the performance of your vendors, including feedback that is given by the end customer. Describe what formal processes you have implemented to obtain customer feedback on supplemental staff performance by vendor, the frequency of the feedback, and the method of communication. Describe how your company determines and measures the performance of your on-site employees (account managers, site representatives, recruiters, and recruiting assistants).
System Requirements/Interfaces
Please describe how your software tools and system processes would interface with XYZ Inc.s existing Ariba Purchasing System Interface. What interface points currently exist and what integration efforts are needed? Please describe how your software tools and system process would interface with XYZ Inc.s existing ABC accounting system. What interface points currently exist and what integration efforts are needed? What data control processes are in place in order to control the ability for users to enter or adjust prior period data within the costing and time reporting systems? XYZ Inc. plans to incorporate the time entry feature into our existing Intranet application called XYZ Inc.. Does your software (time entry and vendor management) support single-user sign-on so that once users
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sign onto XYZ Inc.s Intranet, they do not have to log in again to do time entry? Please explain the process. Single-point billing for XYZ Inc. Please explain your processes to provide consolidated billing (one invoice) to XYZ Inc. for all supplemental staffing services that are managed by your company. What systems and processes are in place for automated time entry, approval for hours worked, and vendor approval of the submitted hours prior to payment? What export files, reports, or integration points are available to review and approve the total billing dollars and hours prior to XYZ Inc.s payment of the invoice? Please provide an example of the reports used in this process. Cost allocation of billed costs Please explain your processes to provide cost allocation information to the XYZ Inc. general ledger system for the total amount of billed costs covered in Section 5.7.5 above. What export files, reports, or integration points are available to review and approve the total cost allocation dollars and hours prior to the data transfer to XYZ Inc.s accounting system? Please provide an example of the reports used in this process. Reconciliation - Please explain your process to reconcile the total amount of consolidated billing paid by XYZ Inc. in Section 5.7.5 above with the cost allocation information provided to the XYZ Inc. general ledger system for the total amount of billed costs as described in Section 5.7.6 above. How is this accomplished? What reports are used? Is your company or XYZ Inc. responsible for making sure that these reports are in balance? Please provide an example of the reports used in this process.
Implementation Planning and Scope

Implementation planning Please provide a copy of your implementation documentation and methodology. This answer should be included as Attachment C and will not be considered as part of the 30-page limit for this RFP. Describe in detail your proposed implementation plan. This plan should provide a step-by-step outline of the plan from contract award stage through the go-live date. Also, please include a timeline of all key activities with your plan indicating accountability for each activity. This answer should be included as Attachment D and will not be considered as part of the 30-page limit for this RFP. Please outline in detail the management structure you would plan to put in place for the XYZ Inc. account during the implementation phase. How would the implementation project be managed within your company at both the corporate and the local level? Resource requirements Based on the implementation plan outlined above, please outline all information that will need to be provided by XYZ Inc. and what level of internal resources will be required by XYZ Inc. to achieve a successful implementation. Conference room pilots Please discuss your use of conference room pilots and any other prototyping methods that might be used as part of the implementation process. How long does it take to set up a new user in your vendor management system? What information is required? Please provide your companys plan for transitioning existing vendors who are doing business at XYZ Inc. from a direct relationship with XYZ Inc. to a managed services relationship with your company and XYZ Inc.
Security, Disaster Planning and Recovery

What provisions exist to provide XYZ Inc. with a 24/7/365 level of system reliability and operation for your software system?
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How is user support for your system provided? What is the primary point of contact for user support? What are the hours of operation? Are European and Asian locations supported differently? If so, how? How is system security accomplished? How does the software prevent your other customers and vendors from seeing XYZ Inc.s or each others proprietary data? Please provide a copy of your software providers data back-up and disaster recovery plans. Please provide us with the date and results of the last full-scale disaster recovery drill. What processes were followed and how long did it take to bring the system back on-line after a major system or facilities disaster? This answer should be included as Attachment E and will not be considered as part of the 30page limit for this RFP. In the event that the company or division that provides your software system either goes out of business or discontinues operations, what provisions or processes exist to ensure that XYZ Inc. can continue using the software to manage its contract employee workforce? What provisions are in place to escrow the source code? How will the system be made available to XYZ Inc. in the event of a discontinuation of business by your software partner/supplier? What company/companies are currently qualified to host, service and support your software tool? Please provide company name and contact information.
TERMS AND ITEMIZED COST Contract and Contract Terms

XYZ Inc. believes in forming long-term relationships. For the purposes of this RFP response, please assume a 3- (three-) year agreement will be signed with the company awarded this RFP. All contract terms must be part of the RFP response. Please include a sample of any contracts related to this RFP in your response. XYZ Inc. will designate a negotiating team that will be responsible for concluding final terms and pricing. This answer should be included as Attachment F and will not be considered as part of the 30-page limit for this RFP. Please include a proposed Service Level Agreement detailing the service levels and metrics that XYZ Inc. would use to measure your cost, quality, and delivery performance under the three-year agreement outlined in 6.1.1. This answer should be included as Attachment G and will not be considered as part of the 30-page limit for this RFP. Pricing Strategy Please consider that while cost control is an important consideration for XYZ Inc. in this RFP, a consistent, high level of personalized service and quality are critical and must not be compromised for any XYZ Inc. location. For the purposes of this RFP, XYZ Inc. would like to understand your pricing strategy. The overall cost will be negotiated in advance between XYZ Inc. and the selected Managed Services Provider. The prices, holdbacks, or fees that are quoted in Section 6.2.2 should include ALL costs to be incurred by BOTH XYZ Inc. and our vendors as a result of this implementation. Neither XYZ Inc. nor our vendors will be expected to pay any other costs not covered in the RFP during the term of this agreement. The total cost of the program may be paid for entirely by XYZ Inc., by our vendors, or on a shared-cost basis. Will your proposed billing and cost accounting solution handle all three of these approaches?
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It is estimated that XYZ Inc. currently has approximately 2,000 supplemental staff workers in the United States across all of the skill sets discussed above. Annual spending for these 2,000 contract employees is between $90 and $100 million. Please provide a detailed pricing proposal for managing this approximate level of spending and resource mix. Please explain your methodology and process for billing XYZ Inc. for Vendor Management Services and how you collect the appropriate service fees as covered in this RFP. Explain any additional volume discounts or reduction in fees resulting from significant volume increases. Please detail any additional fees or upfront costs related to your services that would be charged if XYZ Inc. were to add additional businesses through acquisition or mergers. Invoice Content and/or Payment Method Please include an example of the content of a standard invoice and demonstrate how it can be modified or tailored to meet individual client needs. This answer should be included as Attachment H and will not be considered as part of the 30-page limit for this RFP.
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Supplier RFP Samples Sample #1 Supplier Questions

123 Enterprises Inc. is in the process of selecting a group of Suppliers for technical consulting services needed throughout 2003. Through the Preferred Supplier Program and Contract Office, 123 Enterprises Inc. intends to strengthen our relationship with a few preferred Suppliers, thereby meeting the majority of our IT Staff Augmentation and Project Consulting needs. Please provide responses to the following questions for consideration in this RFP process.
Supplier Single Point of Contact:

Name Address Work Phone Cell Phone Email Address
Describe your primary business

Staff Augmentation Project Consulting Technologies Other 1. Please describe any discount plans (e.g., volume-tiered pricing) that you offer. 2. Propose how you can ensure 123 Enterprises Inc. pays competitive prices through the duration of the contract 3. What technical testing process do you use for your consultants? 4. Describe your recruitment and consultant qualification process? 5. What process do you use to pay a consultant? A client signed timesheet (i.e., Beeline approved timesheet)? Or receipt of payment from client? 6. What standard benefits do your consultants receive? 7. Provide references of companies, 123 Enterprises Inc.s size or larger, that we can contact directly. Please share contact name, company, address, and phone number. 8. List consultants that you provided to 123 Enterprises Inc. over the past 12 months, along with their rate, duration, and manager. Please use the attached Consultant History Spreadsheet. 9. What does your company have to offer that distinguishes it from other companies? 10. How many consultants do you currently have on contract in the Chicago area (city of Chicago and suburbs)? 11. What are the qualifications of the personnel who recruit your consultants? How much have you spent on them for training in the last year? What classes have they taken? 12. What are the qualifications of the primary contact that will work with 123 Enterprises Inc.? How much have you spent on training for this person in the last year? What classes were taken? 13. What is your review plan for consultants on contract? 14. What is your standard follow-up after a consultant is placed at a customer site? 15. What is your policy for consultant pay increases? 16. Provide a list of office locations and their specialties, if applicable. 17. What certifications does your organization have? 18. How do you keep your consultants up to date on newly released technologies? 19. Provide an annual report for the last two years (2000 and 2001) and estimated revenue for 2002. 20. When are your consultants eligible for health care benefits? 21. How many paid vacation days per year do your consultants receive? 22. How many holidays do your consultants receive with pay? 23. How many of your consultants use the W2 vs. 1099?
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24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.
How was your company founded? Where is your company headquartered? List any professional affiliations? Is your company publicly or privately held? Describe your companys ownership. Please provide descriptions of any pending litigation. Include the date initiated, plaintiff, expected resolution, and amount of any financial reserves for such litigation. Provide an organizational chart of your company including any emergency phone numbers. How many sales people do you employ? How many are in Chicago? How many recruiters do you employ? How many are in Chicago? 123 Enterprises Inc. may require suppliers to perform background checks prior to a consultant starting on contract with us. Would there be a fee for this? If so, what is your fee structure? Please provide a description of any project work that you have provided to 123 Enterprises Inc. over the past 12 months, including: description, if completed on time and on budget, timeframe, 123 Enterprises Inc. cost, and 123 Enterprises Inc. contact.
Supplier Compliance Questions

The following questions should be answered on the attached Supplier Response spreadsheet: 1. 123 Enterprises Inc. requires that candidates be submitted sometimes in as little as 24 hours. Can you comply with this requirement? 2. 123 Enterprises Inc. has a Vendor Management System where all time reporting is completed. Consultants enter time into this system, and hiring managers approve the time electronically. We do not wish to have hiring managers sign paper timesheets as well. Will you comply with this requirement? 3. 123 Enterprises Inc. has a Vendor Management System where a Payment Register is generated and then payment is processed directly to the supplier from 123 Enterprises Inc.. 123 Enterprises Inc. does not accept Supplier invoices. Will you comply with this requirement? 4. 123 Enterprises Inc. favors a contract-to-hire process that includes the following terms: 30 days contract, 10% of salary fee; 31-89 days contract, 5% of salary fee; and 90+ days of contract, 0 fee. Will you comply with this requirement? 5. 123 Enterprises Inc. reserves the right to remove any consultant from site at anytime; please note that two weeks of the consultants time will be credited back to 123 Enterprises Inc.. Replacement of that consultant will go out to bid again to the Preferred Suppliers. Will you comply with these requirements? 6. Supplier will not reassign consultants to 123 Enterprises Inc. who have been deemed unacceptable by 123 Enterprises Inc., and will track them. Will you meet these requirements? 7. 123 Enterprises Inc. maintains a Vendor Management System (VMS) and a Contract Office. All resume submittals, resume reviews, and scheduling of interviews goes through this system. Resume submittals or interviews outside of the VMS and Contract Office are not allowed. Will you comply with this requirement? 8. 123 Enterprises Inc. requires our IT contract labor suppliers to be Equal Opportunity Employers. Do you meet this requirement? 9. Prior to finalizing a contractual agreement, 123 Enterprises Inc. will review each suppliers insurance coverage. Please submit a copy of your companys current certificate of insurance with this RFP. (See attached contract for requirements.) 10. 123 Enterprises Inc. requires that three (3) professional references be checked prior to submittal of a consultant and that they be documented within our Vendor Management System. Will you comply with this requirement? 11. 123 Enterprises Inc. may require background checks on consultants before they start working with us. Will you comply with this requirement? 12. 123 Enterprises Inc. will require consultants to be tested for technical aptitude prior to submittal. Will you comply with this requirement?
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Biographies Cynthia Goss

Cynthia Goss is responsible for establishing Centralized Vendor Management at TransUnion LLC. She has been instrumental in the selection and management of TransUnions web based vendor management system. This program is now in its third year and has been an effective resource to automate the hiring, procurement, and management of their contingent work force. Centralizing vendor management at TransUnion has saved the company approximately 28% of their total IT spend during the first year. Prior to joining TransUnion LLC, Cynthia was a successful sales, project and operations manager for a variety of IT consulting environments. As an account manager, Cynthia exceeded revenue and gross profits expectations on numerous occasions and received several sales awards for her efforts. She was also responsible for the single largest consulting contract in Universal Networks history. In addition, in her role as a sales manager, Cynthia opened a branch office; developed marketing, press and presentation material; and participated in the development of a certification program. Cynthias diverse blend of experience has enabled her to understand and determine the benefit of web based vendor management systems from the perspective of the company and the supplier. Currently Cynthia is the co-Chairperson for a new Special Interest Group of the AITP. This group called VMS (Vendor Management Systems) is a networking group. Their current project, which is almost complete, is the writing of a Best Practices Guide for centralizing vendor management and evaluating suppliers.
Karen Wilson
Karen Wilson is an innovative business owner in the consultant supplier community. It was her insight into the VMS marketplace that lead her to the idea of establishing a VMS user group to work together to assist corporations in implementing successful VMS programs. Karen joined MAKE Corporation as president and partner in 2002. She has been active in the IT industry for over 23 years working in such varied positions as programmer analyst, technical management, and executive management for the IT Staffing industry. Before going to MAKE, Karen served as Vice President of Technology Consulting Corporation having full responsibility for the development and profitability of the Chicago Branch. Karen was elected to the chair position of the Open Door Foundation, which awards scholarships to IT students in the junior or senior college years to help them with their college expenses. Karen serves as the co-chair for the AITP VMS special interest group.
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Vendor Management Systems

Best Practices Guide February 2004

Cover by Katie Roane

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

Overview and Introduction

AITP VMS Best Practices Guide

The Case for VMS

AITP VMS Best Practices Guide

VMS Fundamentals Where do I begin

Define your goals

AITP VMS Best Practices Guide

Define key stakeholders and obtain support

Define your business process

AITP VMS Best Practices Guide

Executive Management wants to know what they spend each year?

Supplier sends invoice

Supplier Submits Candidate

Manager Reviews Resumes

Manager approves invoice

Accounting receives invoice not enough info for accounting

Supplier wants to be paid takes 60-90 days

New Business Process

Enter Accounting Info -----PO # and AFE if Avaiable

CO Final Review Job Order ------Submit or Dissaprove

Position Submitted ---------Emails to Accounting and Hiring Manager

AITP VMS Best Practices Guide

Step Two: Candidate Process

Supplier Submits Candidate

CO Reviews Candidates ------Qualify or Decline Qualify ----Email HM

Sends to Hiring Manager for review

HM Interviews Candidates ------Enters Feedback -------Qualify or Decline

Declines -----Comments Supplier Reviews Offer ------Accepts or Declines

Enter Accounting Info -----PO # if Available

CO creates offer -------Submits to Supplier

CO Confirms Start Date

HM Reviews Candidates ------Qualify or Decline

Qualify Email CO CO Schedules Interview

AITP VMS Best Practices Guide

Select the System and Model

Model Choices Employee Operated

AITP VMS Best Practices Guide

Managed Service Provider

Application Service Provider

RFP for VMS Software

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

Billing and Invoicing Procedures

Educating the Partners

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

Creating Solid Supplier Relationships

Selection and/or RFP Suggestions

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

What do you expect from the suppliers

AITP VMS Best Practices Guide

What do you provide to the supplier

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide

AITP VMS Best Practices Guide