The relationship between a customer and a consultant can be very beneficial or can be fraught with peril and animosity. The Federal Times reports that the Federal Government has spent more than $27 billion for professional services in 2003. Total Contract Value (TCV) for professional services has $41.3 billion in Information Technology alone. Sooner or later government executives will be doing business with consulting firms, therefore, it is imperative that buyers understand how to effectively choose, hire, manage, and coordinate with these firms. To avoid problems down the road ensure you answer the following questions before embarking on a project involving consultants.

1. Why are you hiring a consultant to begin with?
2. Which consulting firm/individuals do you hire?
3. What is the acquisition strategy to access the consultant?
4. What type of contract vehicle are you going to use?
5. How do will you effectively manage the consultant on a day-to-day basis?
6. Is the consultant going to be on-site?
7. How do you address changing requirements/scope?
8. How will you deal with further business development efforts from the consulting firm?
9. How do you reward the consultant for superior performance?
10. What is the process for escalating issues/problems?
11. What is the exit strategy/end result?
12. Are you looking for knowledge transfer or expert advice?

Over the next several months, Pivotal Insight will be publishing a series of three articles on "Why Hire a Consultant?", "Which Consultant Do I Hire?", and "How Should I Contract and Manage a Consultant?".