Discussions & Course Project
DQ 1: Risk Factors in Contracts
Using alternatives specified in Chapter 8 (Garrett, pages 124-127), discuss what kind of contract pricing might be best for the following procurement situations. Arrange to select a topic "round robin style" so that you select the next topic that has not already been discussed. Which of these topics are better served using one of these contract vehicles: Firm Fixed, Cost Reimbursable, or Time & Material contracts? Be sure to define each of these contracts before aligning a topic.
1. Adding a room to your home
2. Landscaping your company's grounds
3. Developing a new software module
4. Purchasing new desktop computers
5. Conducting a survey of employee attitudes
6. Purchasing a new home
7. Purchasing an older home
8. Purchasing a new car
9. Purchasing a used car
10. Leasing a new car
11. Leasing an apartment
12. Contracting for office supplies
13. The purchase of an office building
14. The contracting for company healthcare services
15. Contracting for a fleet of company owned cars
16. Contracting for a service agreement for a new car
17. Contracting for insurance for a new appliance
18. Contracting for a new roof for a home
19. Outsourcing of a customer service division
20. Purchasing of a new cell phone and a service plan
21. Contracting for new windows for a home
22. Contracting for new car insurance
23. Purchasing life insurance
24. Purchasing a new air conditioner/heater (HVAC system) for a home or business
25. Purchasing a new boat
26. Purchasing membership in an exclusive club/resort/timeshare
DQ 2: Risk Factors in Contracts
Class: Read the "Peach Computer Company" Case found in the Case Study Area of Doc Sharing, and discuss the following:
What are the main issues in the case, and how would you begin to resolve them using some of the concepts we have discussed in class?
- What alternatives are available to resolve the issues?
- What type of contract incentive (s) could you adopt to make this case more successful and why?
- Provide an analysis of the four bidders. What are the benefits and disadvantages of each supplier? Which bidder would you select and why?
- What factors should be considered or addressed in the implementation? How would you implement your recommendation?
- Do you feel that company politics would have an impact on the selection of the supplier?