What is a "contracting strategy"?

A contracting strategy is fundamentally a planned approach that outlines how an organization's procurements will be conducted. This strategy is designed to align procurement activities with the organization's overall goals and objectives. It encompasses various considerations, including the types of contracts to utilize, the selection of contractors, market analysis, pricing strategies, and methods for procurement.

Effective contracting strategies not only ensure that procurement processes are efficient and cost-effective but also account for risk management, compliance with regulations, and accountability. By having a well-defined strategy, organizations can prioritize their needs, allocate resources appropriately, and support their broader mission. This provides a roadmap that enables procurement professionals to make informed decisions that will best serve the organization’s interests over the contract lifecycle.

The other options, while related to contract management, focus on specific aspects rather than the overarching plan that guides procurement efforts. Evaluating contractor performance, managing contract disputes, and assessing contract management technology are all crucial components of the contract management process, but they do not collectively represent a comprehensive contracting strategy.