Contract Measures: Moving from binary requirements to uncertainty and value

Conversation by Aaron Meyers & Ana Monroe
Article edited by Ana Monroe
Article written by Claude Sonnet 4 with Ishmael Interactive tuning
 

In the world of government contracting, where acronyms multiply like rabbits and money comes in colors, a peculiar figure sits somewhere near the middle: the Contracting Officer's Technical Representative (COTR). Part translator, fortune-teller, and marriage counsellor, these professionals weave together legal requirements and the delivery of the work—a multi-disciplinary job even for the federal sector, which routinely demands people to wear 17 hats at once.

Aaron Myers, a former COTR and now head of Data at Ishmael Interactive, describes the role as "sitting right between where two functions, that is, legal requirements and business requirements meet" but cannot speak to each other. Think of it as professional speed-dating, except instead of finding love, you're trying to prevent a contractor from submitting invoices to the wrong address for three consecutive years (a real occurrence that would make Kafka weep).

Standard contracting metrics focus on administrative compliance: tracking utilized contract ceilings, ensuring on-time payments, and managing work stoppages when funding authorizations lapse. These measures, whilst necessary, capture only basic contract mechanics rather than actual value delivery.

More sophisticated approaches examine programmatic impact and return on investment, particularly relevant for modernization projects where upfront costs yield long-term savings. Yet even these metrics depend heavily on external factors, including cooperation from business units and accurate future projections.

The most revealing indicators, however, remain largely unused. Myers advocates measuring contractor satisfaction, noting that motivated contractors produce superior work and volunteer valuable insights. He also tracks meeting frequency, arguing that successful contracts require fewer check-ins as relationships mature and processes stabilize.

Perhaps most innovative, Myers monitors the rate at which predictable contractor functions can be transferred to government employees, freeing resources for more complex challenges. This approach recognizes that contracts inevitably encounter unexpected obstacles requiring financial flexibility.

Ana Monroe, Chief Executive of Ishmael Interactive, suggests organizing these various metrics into two composite indices: uncertainty (declining over time) and value (increasing). Such an approach acknowledges the inherent complexity of contract management whilst providing actionable insights for oversight.

The broader lesson extends beyond government procurement. In any relationship requiring sustained collaboration between organizations with different incentives, success depends not merely on compliance monitoring but on actively managing the human elements that determine actual performance.

Other posts in this series:

FAR 10 Reaction: Flying over the changes in federal acquisition (24 June 2025)

Our First Response to a Federal Solicitation (22 July 2025)

Image credit:

Study of Butterfly and Insects. c. 1655.Jan van Kessel the Elder. Painter, Flemish, 1626-1679. National Gallery of Art, Washington, DC. Treatment by Ishmael Interactive