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Reported by ReadexResearch | MemberSurvey.com

2011 Contract Management

$ALARY SURVEY
executive summary
The contract management
profession is a dynamic, challenging, and (as demonstrated by this report) a rewarding career choice. This 2011 Salary Survey report demonstrates that contract management professionals are highly experienced, extremely well-educated people, possessing a variety of professional certifications and designations. It also demonstrates that if you are in the contract management profession, you are being well rewarded (or you should be!) in terms of salary and bonus. If you are not currently a contract management professional, and are contemplating a career change, or if you are a college student considering a career choice, this report demonstrates that contract management would make an excellent choice! Whether you are a professional negotiating a pay raise with your boss, or a department manager fighting for salary adjustments for your employees, or even a corporate human resources professional trying to fairly assess the proper pay levels for your organizations contract management staff, this report provides the answers you need. This executive summary provides compensation information based on age, gender, education level, certifications held, security clearance, military status, years of experience, employer industry, organization size, years of service with the employer, position, job title, and location. In addition, the report also provides crosstabulated data based on multiple variables, such as compensation by education and experience, and by position and location, to name only two, providing a much more in-depth look at compensation across the profession. I encourage you to look closely at the dozens of tables and exhibits contained in the report. For more information on how to purchase the full 2011 Salary Survey report, visit www.ncmahq.org/salarysurvey2011 or see the order form on page 10. The National Contract Management Association is here to serve the people in the contract management profession. I hope the information you find in this report is of service to you and your organizations, and I encourage and welcome your feedback. It is our goal to make the 2012 Salary Survey even better for you.

Neal J. Couture, CPCM Executive Director National Contract Management Association

National Contract Management Association www.ncmahq.org

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Acknowledgments
NCMA would like to thank the individual members who responded to the Salary Survey. Without your willingness to spend a few minutes of your time in filling out the survey, this valuable information would not be available to our profession. We would also like to thank the following NCMA staff members involved in this project: Neal Couture, CPCM, Executive Director Sam Smith, CPA, Chief Financial Officer Alan Boykin, Chief Learning Officer Will Kohudic, Director of Creative Services Jessica Friedman, Director of Marketing Cambria Tidwell, Director of Operations Jennifer Coy, Director of Meetings Kerry McKinnon Hansen, Editor in Chief Jennifer Reitz, Senior Graphic Designer Correen Dingle, Marketing Specialist April Silverthorn, Marketing and Communications Specialist
We would also like to thank our Board of Directors and the hundreds of chapter volunteers across the association for their service, dedication, and leadership to the contract management profession.

Copyright 2011 by the National Contract Management Association. No part of this document may be reproduced, photocopied, entered into a computer database, copied in handwritten format, or republished in any form, in whole or in part, without the express written permission of the National Contract Management Association, 21740 Beaumeade Circle, Suite 125, Ashburn, VA 20147. Violators are subject to prosecution under federal copyright laws.

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Findings

Over the years, the National Contract Management Association (NCMA) has served its members and the contract management profession by conducting and reporting periodic surveys on salaries and benefits in the profession. This document reports results from NCMAs 2011 Salary Survey. This Findings section provides an overview of survey results: describing the research methodology, profiling survey respondents, and discussing compensation and benefits from a variety of perspectives. Detailed tables follow, showing how compensation for contract management professionals as a whole is related to a variety of factors. Subsequent tables show compensation for four broad positions within the profession. The report concludes with further tables describing professionals and their employment situations.

Professional Profile
Overall, 54% of respondents are female. The median age is 48, with 28% age 55 or older, and 20% under age 35.

Age

4554 34% 28%

55+

18%

20% < 35

Methodology
This survey was designed and conducted by NCMA. It was tabulated and reported by Readex Research, an independent research company located in Stillwater, Minnesota. In Spring 2011, NCMA e-mailed survey invitations to its 19,032 current members. Of those, 312 e-mail addresses were returned as undeliverable, resulting in a net effective mailout of 18,720. A total of 2,280 responses were submitted to the NCMA website. Responses from those outside the United States, those not employed full time, and those not providing salary information are excluded from this report. Proportions in most tables, based on 2,194 reporting full-time U.S. respondents (respondents), are subject to a margin of error of 2.1% at the 95% confidence level.
3544

Base: 2,194 reporting U.S. respondents.

1 n Executive Summary

Three-quarters of respondents (76%) describe their race as Caucasian/White (non-Hispanic). About one in ten (11%) are African American, and no more than 4% are any other single race.

Race
Caucasion African American Hispanic or Latino Other No Response 11% 75%

In terms of the nine U.S. Census divisions, respondents are highly concentrated in the South Atlantic division, which includes the District of Columbia and surrounding states. Forty-two percent are in that Census region, including 24% who are located in the Washington-Arlington-Alexandria DC-VA-MD-WV Core-based Statistical Area.

Location U.S. Census Division

New England 4% 6% 8% 4% 42% 6% 7% 7% 14%

4% 4% 4%

Middle Atlantic East North Central West North Central South Atlantic East South Atlantic West South Central

Base: 2,194 reporting U.S. respondents.

Mountain Pacific

Base: 2,194 reporting U.S. respondents.

2 n Executive Summary

Six percent of respondents hold a doctorate as their highest degree, with 44% having a masters, 40% a bachelors, and 4% an associates. Seven percent hold no college degree, though most of them have completed at least some college.

Fifteen percent of respondents are currently or have been in the military. The majority of them are military retirees.

Military Status Years Worked in Contract Management

Education Highest Degree Held

Masters 44% 6% 7% 40% Bachelors 4% Doctorate No College Degree Associates 12% Retired 2% Reserve 1% Active Duty 86%

None

Base: 2,194 reporting U.S. respondents. Base: 2,194 reporting U.S. respondents. About half (51%) of respondents report holding a security clearance.

3 n Executive Summary

The majority of military retirees found a job in the industry with relative ease. It took less than three months for most (57%) to find a job after they started actively looking, while it took longer than a year for only 8%. The typical (median) military retiree found a job in the industry in about two months.

Nearly all respondents (96%) indicated they are members of NCMA. An additional 2% said they are former members. Forty-seven percent of respondents indicated they currently possess one or more professional certifications. The ones held by the most include the three levels of DAWIA and two of NCMAs certifications: CPCM and CFCM.

Length of Time to Find a Job

> 1 month 1 month 13% > 1 year 8% 28%

Certifications Held
DAWIA Level III CPCM CFCM DAWIA Level II DAWIA Level I 13% 11% 10% 8% 7% 3% 2% 15% 47%

14% 6 months 1 year 20%

16% 2 months

CPSM, CPSD, etc. PMP Other At Least One

36 months Base: 2,194 reporting full-time U.S. respondents. Base: 263 military retirees. Military retirees reported earning a median salary of $48,000 at the time they entered the contract industry.. The various DAWIA levels are seen most frequently among those employed by the federal government.

4 n Executive Summary

The typical (median) respondent has worked in contract management for 12 years, with 12% involved 30 years or more.

Experience Years Worked in Contract Management

2029

Respondents tend to be at very large organizations, with nearly half (48%) working for organizations with annual revenue (or budgets if public agencies) in excess of $500 million. Only 7% indicated they are at organizations with annual revenues/budgets under $11 million. Twenty percent of respondents are unsure about the size of their organizations annual revenue/budget.

24% 12% 1019 23% 21% 18% <5 30+

Organization Size Revenue/Budget

> $500 million

48%

Not Sure 59 Base: 2,194 reporting U.S. respondents. About half (52%) of respondents report holding a security clearance.

20% 11% 7% 14% $101500 million

< $11 million $11100 million

Base: 2,194 reporting U.S. respondents.

5 n Executive Summary

Over half of respondents (57%) work for a government contractor, while 25% are with the federal government. No more than 8% work for any other single type of employer.

Employer
Government Contractor

Asked to categorize their management level from a list of five options (plus other), the highest proportion (48%) indicated they would be considered experienced nonsupervisory staff. An additional 8% said they are entry-level staff. Managers (second tier or higher) make up 26%; supervisors (first tier) 13%; and executives (CEO, president, vice president, owner) 5%.

Management Level
Experienced Staff

Federal Government 25% 57% 48%

8% Commercial Business 10% Other Supervisor 13% 26%

8% 5%

Entry-Level Staff 1% Other Executive

Manager Base: 2,194 reporting U.S. respondents. The typical (median) respondent has worked for his or her present employer for four years and has been in his or her current position for half that time (two years). Most commonly, respondents found their current jobs through networking (45%), followed by online recruitment sites (19%). Print ads helped only 6% of respondents find their current jobs. ContractManagementJobs.com was indicated as a job source by 2%.

Base: 2,194 reporting U.S. respondents. For a comparative analysis, the compensation and profile results are split out by management level in the tables presented in the full Salary Survey. Specific job titles of respondents vary widely, but two are relatively common: contract manager/supervisor/director (35%) and contract administrator/specialist (32%). No other single position was indicated by more than 9%.

6 n Executive Summary

The typical respondent works 45 hours per week, with 30% working 50 hours or more. Telecommuting is not an option for about a third of respondents (34%). Fourteen percent telecommute at least part time, including 2% who work that way full time. Fortyone percent do not telecommute regularly, but said it is an available option on an as-necessary basis. For the most part, respondents seem to be content with their current jobs. Forty-two percent said they are not looking for a new one and only 9% said they are actively searching. An additional 6% indicated they will begin searching in a year or two. Fifteen percent are on the fence, not actively looking but considering change. And 28% are open to change, indicating they might take the right offer.

Sixteen percent of respondents are eligible to retire within their organizations rules for retirement eligibility within the next two years. Of those who are eligible, 29% plan to retire in that timeframe, 48% do not plan to retire, and 23% are undecided. Among those who plan to retire, many still plan to work post-retirement: 24% will take a part-time job just to stay busy or earn money; 22% will work in contract managementrelated position part time (such as a trainer, reannuitant, consultant, or employee); and 11% will get another full-time job. Fifteen percent said they have no intention to work at all after retirement.

Post-Retirement Plans
Will Work Part Time 24% Will Work in Contract Management

Seeking a New Job

Not Looking

42% 6% 9% 28%

Will Begin Searching in 12 Years Actively Searching Dont Know Yet

22% 19% 11% 8% 15% Will Work Full Time

15% Considering Change Other

Might Take the Right Offer

Will Not Work at All Base: 103 respondents eligible to retire within the next two years who are planning to retire. Most of those who are eligible but do not plan to retire say they cannot afford to retire yet (58%). Another quarter say they enjoy their work so much they do not want to retire yet (23%). When asked to indicate the most important factor that will affect whether they decide to retire, those undecided about retiring indicated similar factors to those who are eligible but decided not to retire yet. Job satisfaction and their financial situations are key, that is: whether they enjoy their job or not (30%), economic conditions/outlook for the next few years (29%), and how much money they have saved (20%).

Base: 2,194 reporting U.S. respondents. Among those actively seeking a new job, there are varied reasons for doing so. The most common among their multiple responses was that they have issues with their employer/management (33%), are dissatisfied with their salary (28%), and/or do not find their work challenging (26%). A change in career path is a driving force for 12%. Eight percent claim benefit dissatisfaction as a reason for seeking a new job.

7 n Executive Summary

The following pages discuss compensation among respondents working full time and reporting their salary. Overall, the median salary is reported to be $94,900 per year. The mean is reportedly slightly higher at $99,300, but means tend to fluctuate more in terms of a few very high-end respondents in a given study year influencing the statistic. As a result, later analysis of how salary differs based on various respondent characteristics will focus on median responses.

There are several components considered to be part of compensation other than salary. For example, 96% receive vacation leave, 92% receive healthcare benefits, 90% receive 401K or a similar defined contribution retirement plan, 88% receive life insurance, 87% receive dental benefits, and 78% receive vision benefits. Seventy percent are eligible to receive a bonus as part of their compensation package (this is more likely among executives than staff86% versus 62%, respectively). Two in three (66%) can receive tuition assistance. Far fewer have a traditional defined benefit (pension) plan (29%) or an employee stock ownership plan (27%). The latter is concentrated mostly among those working for government contractors, commercial businesses, or professional services.

Annual Salary
$100K$149K 9% 35% 10% 44% 21% $80K$99K 24% 20% 14% $150K+

Compensation Components Other Than Salary

Vacation Leave 96% 92% 90% 88% 87% 78% 70% 66% 29% 27%

< $60K

Healthcare Benefits 401K or Similar Life Insurance Dental Benefits Vision Benefits Bonus Tuition Assistance Pension ESOP

$60K$79K Base: 2,194 reporting U.S. respondents.

Base: 2,194 reporting U.S. respondents. The typical respondent earns 19 days of vacation annually. Thirty percent get 21 days or more.

8 n Executive Summary

When asked to provide the value of their bonus from their last performance review, about one in four (28%) indicated they didnt receive a bonus at that time. Among those that did, the median bonus was $4,000.

Most Recent Bonus Awarded

$5,000$9,999 18% 27%

$10,000+

22% $2,500$4,999

33% < $2,500

Base: 1,443 who received a bonus (fill-in answers). Executives who received a bonus from their last performance review typically earned an additional $28,000 compared to $2,500 for experienced non-supervisory staff and $1,100 for entry-level staff.

9 n Executive Summary

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2011 Salary Survey
Available in electronic format only

Print Form
To order this electronic survey, click the
button above to visit the NCMA online store. You can also click the Print button to print this order form, and fax or mail it to the contact information below, or call and order directly. Member Price: $50.00 Nonmember Price: $250.00 VA residents ONLY, add 5.0% sales tax. Total $___________ Payments by check or credit card. Make checks payable to NCMA. Check Enclosed $__________ Credit Card MC Visa Card No. AmEx Discover

The contract management profession is a dynamic, challenging, and as demonstrated by this report, rewarding career choice. The 2011 Salary Survey demonstrates that contract management professionals are highly experienced, extremely well-educated people who possess a variety of professional certifications and designations. Survey findings indicate that those in the profession are well rewarded in terms of salary and bonuses. If you dont work in contract management and are contemplating a career change, or if you are a college student pondering career choices, this report demonstrates why contract management is the field to be in. This extensive survey takes an in-depth look at compensation across the profession.

Exp. Date Name on Card Signature Date Send to: E-mail (required) Mail: National Contract Management Association 21740 Beaumeade Circle, Suite 125 Ashburn, VA 20147 Call: 800-344-8096 Fax: 703-448-0939
* NCMA reserves the right to adjust the price at its discretion and without previous notice.

Information is based on:

age and gender, certifications and security clearances held, education, years of experience, military status, employer industry, organization size, position level, job title, location, and more.

NATIONAL CONTRACT MANAGEMENT ASSOCIATION

10 n Executive Summary

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EMPLOYERS Simplify your hiring process and reach qualified candidates

Guarantee your success with this unique career management tool for all contracts professionals. Grow with us, as we continue to expand our services!

JOB SEEKERS Save valuable time and tap into industryspecific jobs

More than just another job site, ContractManagementJobs.com is a professional hub for employers and job seekers alike. With targeted delivery features in a select pool of candidates and job listings, this is the only niche job site for the contract management profession!

NATIONAL CONTRACT MANAGEMENT ASSOCIATION | WWW.NCMAHQ.ORG 11 n Executive Summary

An alternative perspective on salaries and bonuses is provided by analyzing percentiles: that is, the points below which a designated percentage of salary/bonus responses lie when they are ordered from low to high. For example, the 50th percentile represents the median (or typical) value, with 50% below and 50% above. Under this view, we see that 10% of respondents earn annual salaries of under $53,100 and $1,000 as a bonus if they received one at their last performance review. A quarter (25%) of respondents earn less than $70,000 and a $1,900 bonus if they got one, and so on. The top 10% (90th percentile) earn annual salaries of $150,000 and those who received bonuses earned an additional $25,000.

As would be expected because experience tends to equate with age, average salaries are highest among the oldest respondents. Those under 35 earn a median salary of $65,000 compared to $115,200 among those 55 or older.

Annual Salary by Age

55+

4554

Annual Salary and Most Recent Bonus Awarded Percentiles

Annual Salary 10% earned less than 25% earned less than 50% earned less than 75% earned less than 90% earned less than $53,100 $70,000 $94,900 $122,100 $150,000 Most Recent Bonus Awarded $1,000 $1,900 $4,000 $10,000 $25,000

3544

< 35

All $40 $70 $100 $130 $160 $190 $220

Base: 2,194 reporting full-time U.S. respondents.

Base: 2,194 reporting full-time U.S. respondents for salary; for bonus: 1,443 who received a bonus at their last performance review.

12 n Executive Summary

Results by gender show the typical (median) female earning approximately $18,000 per year less than the typical male. However, correlation is not causation; this discrepancy may result from differing average levels of qualifications, experience, and/or responsibility between males and females.

Salary by education shows an expected pattern for median salary, with a bachelors degree providing an $11,500 premium when compared to those without a college degree. A masters adds another $18,000, and a doctorate $7,000 on top of that.

Annual Salary by Education Annual Salary by Gender

Median (50th Percentile) $94,900 $75,500 $80,000 $87,000 $105,000 $112,000

Male All No Degree Associates Female Bachelors Masters Doctorate All

Minimum $70,000 $10,000 $10,000 $10,000 $10,000

25th Percentile $70,000 $58,000 $63,000 $65,300 $82,000 $85,000

Base: 2,194 reporting full-time U.S. respondents. $40 $70 $100 $130 $160 $190 $220

Base: 2,194 reporting full-time U.S. respondents.

13 n Executive Summary

Slight variations in median salary are apparent based on race. Those indicating they are Caucasian/White or African American earn a median of $95,000 in salary compared to no more than $87,300 among the other segments. Again, these slight discrepancies may result from differing levels of qualifications, experience, and/or responsibilities.

Those without any certifications do slightly worse than respondents as a whole, with a median salary of $88,000 (versus $94,900 overall). The CPCM and DAWIA III certifications, specifically, are associated with higher levels of compensation. But the data is not controlled for those holding multiple certifications, so results should be interpreted cautiously.

Annual Salary by Race

Annual Salary by Certifications

White African American Hispanic or Latino Asian Other All $40 $70 $100 $130 $160 $190 $220 $40 Base: 2,194 reporting full-time U.S. respondents. Base: 2,194 reporting full-time U.S. respondents. $70 $100 $130 $160 $190 $220 CFCM CPCM DAWIA I DAWIA II DAWIA III None All

14 n Executive Summary

Again noting that correlation is not causation, we see that those who hold a security clearance earn a median salary $17,000 above those who do not.

Those who are military retirees earn a median salary $21,500 above those who are not.

Annual Salary by Security Clearance

Annual Salary by Military Status

Holds Clearance

Active Duty/ Reserves Military Retiree Neither

No Clearance

All All $40 $40 $70 $100 $130 $160 $190 $220 Base: 2,194 reporting full-time U.S. respondents. Base: 2,194 reporting full-time U.S. respondents. $70 $100 $130 $160 $190 $220

15 n Executive Summary

Those who are currently NCMA members earn a median salary slightly higher than those who are not NCMA members ($95,000 and $85,000, respectively).

Annual Salary by NCMA Membership

As would be expected, increasing experience correlates strongly with increasing salaries. The gap is greatest ($21,000) between novices who have less than five years experience and those having 59 years of experience, with medians of $60,000 and $81,000, respectively.

NCMA Member

Annual Salary by Experience Years Worked in Contract Management

30+ Years Not a Member 2029 Years 1519 Years 1014 Years All 59 Years < 5 Years $40 $70 $100 $130 $160 $190 $220 All $40 Base: 2,194 reporting full-time U.S. respondents. Base: 2,194 reporting full-time U.S. respondents. $70 $100 $130 $160 $190 $220

16 n Executive Summary

Annual salary varies somewhat with employer type. Typically, state/local government employees earn the least among the segments, while the small minority who are in professional service firms (accountants, lawyers, consultants, trainers, etc.) earn the most.

Those in the smallest organizations (annual revenues or budget under $1 million) and those in the largest organizations (over $500 million) earn the highest median salaries ($100,000 and $106,000, respectively). The smallest organizations demonstrate the most variability in their compensation; theres a $134,500 spread between the 25th and 75th percentile for organizations with under $1 million in annual revenues/budget ($55,500 to $190,000).

Annual Salary by Employer

Federal Government State or Local Government Government Contractor Commercial Business Professional Services Academia Other All

Annual Salary by Organization Size

Over $500 Million $101$500 Million $11$100 Million $1$10 Million $70 $100 $130 $160 $190 $220 < $1 Million All

$40

Base: 2,194 reporting full-time U.S. respondents. $40 $70 $100 $130 $160 $190 $220

Base: 2,194 reporting full-time U.S. respondents.

17 n Executive Summary

Of all the variables, management level shows the strongest association with salary. Executives (CEOs, presidents, vice presidents, owners) report a median annual salary of $168,500. Thats $43,500 per year more than managers, who typically earn $125,000. Supervisors earn a median of $105,100, experienced non-supervisor staff members $83,000, and entry-level staff $50,900. More detailed examination of salary by management level is in the third section of this report.

Median salaries of those who work more than 40 hours per week are $24,000 higher than those who work 40 hours per week.

Annual Salary by Hours Worked

More than 40

Annual Salary by Management Level

40 Executive Manager Supervisor Experienced Staff Entry-Level Staff All $40 $70 $100 $130 $160 $190 $220 Base: 2,194 reporting full-time U.S. respondents. All

$40

$70

$100

$130

$160

$190

$220

Base: 2,194 reporting full-time U.S. respondents.

18 n Executive Summary

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To purchase the full report (PDF document) ($50 for members and $250 for nonmembers), visit www. ncmahq.org/salarysurvey2011, complete and return the enclosed order form, or call us at (800) 344-8096.

Tables in sections two and three also show compensation statistics by location: Census division, state, and metro area (where there are sufficient responses). Of the 29 metro areas reported, seven boast a median salary of $100,000 or more.

Conclusion
This brief recap of findings has only skimmed the surface of data generated by this comprehensive survey. For those interested, the tables that follow present explorations of compensation by a variety of univariate and bivariate factors, of benefits offered by position and employer, and of practitioner characteristics as they vary by position. NCMA updates this survey annually and actively seeks suggestions for its improvement. With the help and participation of contract management professionals, future surveys can become even more of an asset to the profession.

Top Metro Areas for Media Salary

Median Salary Washington, DC San Francisco Phoenix Los Angeles Denver Houston Boston $115,000 $113,000 $109,000 $102,600 $102,000 $100,600 $100,000

Base: 2,194 reporting full-time U.S. respondents.

Job Seeking
Considering Change 15% Actively Searching Will Begin Searching in a Year or Two 28% 9% 6% Might Take the Right Offer

42% Not Looking

Base: 2,194 reporting full-time U.S. respondents.

19 n Executive Summary