Managing an R&D Contract with the Government

Formal project‐management procedures, required for U.S. Government contract execution, provide a basis for management of R&D‐intensive projects within AT&T. A$19.7‐million R&D contract, awarded by the Defense Advanced Research Projects Agency (DARPA), provided an opportunity for the gallium arsenide (GaAs), integrated‐circuit (IC) project team to develop basic project‐management procedures that extend well beyond the realm of government‐contract management. For example, the project‐management approach developed for execution of the DARPA contract is directly applicable to the product‐realization process, to emerging quality and productivity initiatives, and to fiscal accountability in AT&T's strategic business units (SBUs). Baseline planning becomes the cornerstone for critical SBU projects, and formal milestone tracking and control ensure high‐level visibility of project progress. Product‐development teams become customer champions for specific deliverables, and the core strength of a project‐management department emphasizes a business‐like approach to the R&D challenges of the 1990s.