Review this case carefully and answer the questions at the end of the case in detail.
Case Study - HUB AEROSPACE
QUESTIONS:
1. Evaluate each of Hub's contentions. Do you agree or disagree? Why?
2. What should Mr. Brosky do now?
Case Study - DELAY CLAIMS
QUESTIONS:
1. How would you handle such a claim? Discuss each of the claimed delays and claim for additional compensation.
Case Study - ELECTRON CORPORATION
QUESTIONS:
1. What action would you take in these circumstances? Why?
2. What responsibilities has the government assumed in this procurement?
3. Would your answer be different if the contract had been awarded through a sealed bid procurement process? Why or why not?
Case Study - NEGOTIATION PLANNING
QUESTIONS:
I. Prepare separate written analysis of the procurement situation for both parties.
2. Prepare separate written negotiation plans for each party to include cost element objectives.
3. Are there any major misconceptions in the way the parties perceive each other's positions? Elaborate.
Case Study - PRICING PROBLEM
Required:
Your job is to develop a prenegotiation position for all cost elements with explanations. Available information includes program information, a cost proposal, DCAS and DCAA reports, and an ASD Cost Research Report.
There is no one right answer. You should strive for a Fair and Reasonable objective. Grades will be based both on what you considered and how and why you considered it.
Case Study - SELECTION OF CONTRACT TYPES
Case 1
QUESTIONS:
1. Do you agree or disagree with Mr. James in this case?
2. What type of contract would you attempt to negotiate for the proposed procurement?
Case 2
QUESTIONS:
1. What type of contract should Mr. Hiller attempt to negotiate? With whom?
Case 3
QUESTIONS:
1. Do you agree or disagree with Mr. Smith's suggestion? Why?
Case 4
QUESTIONS:
1. What fee would you attempt to negotiate for this contract?
2. Would your answer change if your research indicated the other sources for similar work have usually been awarded CPFF contracts carrying fees of approximately six percent?
Case 5
QUESTIONS:
1. If you were Mr. Sanders, what type of contract would you attempt to negotiate for the proposed procurement?
2. What type of contract would you attempt to negotiate for the proposed equipment, assuming you were unable to effect any reductions in Electrosonics' quotation?
3. What type of contract would you attempt to negotiate for the proposed procurement?
Case Study - ACME MANUFACTURING
QUESTIONS:
1. What course of action would you undertake in these circumstances - issue the proposed change? - insist that Acme perform the contract? - terminate the contract and reprocure the pedestal? Explain and justify your position.
2. If you decide to issue the change, what equitable adjustment would you make?
Case Study - WESTERN AIRFRAME CORPORATION
QUESTIONS:
1. Comment on this procurement. Did Mr. Wilson have the authority to make the decision he did?
2. Is the contractor entitled to an equitable adjustment? Why or why not?
Case Study - CHANGE ORDER PRICING
QUESTIONS:
1. Is the contractor's argument a reasonable one?
2. What should the buyer do?
3. Do you agree with Mr. Foster's approach, viz.; using the labor rate used in the original proposal to price out the work associated with the change ($27.50 versus $30.00)?
4. Would you advocate using the same approach if the work required by the change was to be performed by a lower paid class of workers than originally estimated ($27.50 versus $22.50)?
5. If a composite labor rate, developed on the basis of the overall mix of work on the entire contract, was used in the original estimate, should the same composite rate be used in pricing the work associated with the change?
6. Is the contractor entitled to charge the 3 days unused downtime to the cost of the change?
7. Assume that he paid the workers affected $30.00 per hour and used them on work for which he normally paid only $20.00 per hour. Could he charge the difference to the cost of the change?
8. Should a learning curve be applied to work affected by the change?
9. Is the contractor entitled to claim the costs associated with the affect of the change on the rate of improvement for the changed work for the units on which none of the changed work has been performed?
10. Is the contractor entitled to recover costs associated with the affect of the change on the rate of improvement of the work not directly affected by the change?
11. Is the contractor's approach a reasonable one?
12. Assuming the buyer accepts the contractor's contention, should he require that the contractor furnish an improvement curve to substantiate his claim?
13. Do you agree with this approach of the cost analyst?
14. Assume that the situation was reversed, viz.; that the contractor had used a rate of 180% in his original proposal and his rate for the period of performance of the change was 110%, would you approach the matter any differently?
15. Do you agree with this approach?
16. If the situation was reversed, viz.; the contractor had used a G&A rate of 15% in his original proposal, and his anticipated G&A rate during the period of performance of the changed work was 6%, would you approach the matter any differently?
17. Do you think a contractor should receive the same rate of profit on costs associated with a change as on the original proposal?
18. Under what circumstances might he get less?
19. Under what circumstances might he get more?
Case Study - BOTTOM LINE NEGOTIATION
1. Evaluate and discuss Mr. Forbes' counteroffer to Mr. Jones.
2. What should Mr. Jones do? Why?
Case Study - WAGE RATE ANALYSIS
Exercise 1
1. Contractor requests the Government accept $9.80/hr. Do you agree?
2. With respect to the wage rates, what specific information would you like the wage rate to be broken down into?
Exercise 2
1. Is the use of a weighted average rate appropriate in this case?
Exercise 3
1. Is $24/hr. acceptable to you?
2. Is $24/hr. acceptable to you now?
3. Is there a pricing impact for accepting $24/hr.?
Case Study - INTERPRETATION OF REQUIREMENTS
1. Assuming that the increased costs will be incurred as alleged, do you feel that there is any contractual merit to Lenox's claim?
2. If NASA refuses to consider the claim, has Lenox a further course of action?
3. What actions, if any, might Mr. Covington have taken in this case to forestall a claim by the contractor?
Case Study - MARKET RESEARCH FOR PRICE ANALYSIS
QUESTIONS:
1. Based on the above information, what is your best estimate of a reasonable price for the roller bearings?
2. What additional information would be useful in your analysis and where might you go to obtain it?
Case Study - PRICE ANALYSIS - ACCOUNTING FOR DIFFERENCES
QUESTIONS:
1. If you were to award without negotiations, given the award criteria and the information provided, which offeror would you select for award? Why?
2. The Government estimate was developed assuming that the work would be performed by a contractor located in the Washington, D.C. area, with instructors traveling from Washington to the offering sites. Washington Central proposes to operate in that manner yet the firm's proposed price is $41,275 less than the Government estimate. What factors do you think affect this difference?
3. The proposal of Washington Independents is $39,286 less than the Government estimate. What factors do you think affect this difference?
4. Los Angeles Quality has the highest proposed price. What factors do you think affect this difference?
Case Study - PATENTS
QUESTION:
1. Is Boeing's response valid?
Case Study - SEALED BIDDING
QUESTION:
1. Do you feel that Smith's bid should be considered?
Case Study - PAST PERFORMANCE PROBLEM
QUESTION:
1. Discuss R-D's recourse.
Attachment:- Case studies.pdf