Contract Type Case 1. Do you agree or disagree with Mr. James in this case? Answer: Agree. Cost-reimbursement contracts are best to apply for research and development contracts, where uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed price contract (Contract Types 1), such as the situation given.
2. What type of contract would you attempt to negotiate for the proposed procurement?
Answer: For this type of situation, the time and materials contract is suitable to use so that materials are priced at cost as well as direct labor hours at detailed hourly rates.
1. What type of contract should Mr. Hiller attempt to negotiate? With whom?
Answer: Mr. Hiller should attempt to negotiate a fixed price contract with NASA since the materials to be used, the duration of the study and labor needed are already specified, in which the contractor takes on full responsibility for the project.
1. Do you agree with Mr. Smith’s suggestion? Why?
Answer: Yes, using a letter contract to authorize the contractor to begin the project immediately while still negotiating with other clauses is suitable for this scenario. This is appropriate for government projects like the case specifies, where almost every detail of the contract has been agreed upon except for minor clauses.
1. What fee would you attempt to negotiate for this contract?
Answer: I would attempt to negotiate CPFF or Cost Plus Fixed Fee 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?
Answer: No. CPFF still applies for the said situation.
1. If you were Mr. Saunders, what type of contract would you attempt to negotiate for the proposed procurement?
Answer: I would suggest a Cost Reimbursement Contract for this situation as the costs of the project cannot be estimated with sufficient accuracy (Contract Types 2).
2. What type of contract would you attempt to negotiate for the proposed equipment, assuming you were unable to effect any reductions in Electronics’ quotation?
Answer: CPFF is more appropriate to utilize in this circumstance.
3. What type of contract would you attempt to negotiate for the proposed procurement?
Answer: Cost Reimbursement Contract is appropriate to use in this scenario since estimate costs for the new equipment has not been developed yet.
Contract Types. Procurement Assistance Center. University of Ohio. n.d. Web. 24 Sep.