In the case study, a Navy contracting officer, Lieutenant June Early experiences difficulties in a sole source negotiation. This is with Trustworthy Equipment Company. The Company is the only supplier of a machine that the Navy needs. Lieutenant Early meets overhead rates that the company provides as a cost breakdown. This is as an explanation of its fixed price quotation. The quotation was considered as being too high by the Navy.
Lieutenant Early should question costs that seem to be the result of inefficient management. According to the Federal Acquisition Regulation performance standards, the customer should be satisfied in terms of cost. It is vital to have the customer satisfied on quality, cost, and timeliness of the product of service delivered. "(Naval operating base, Arkadelphia).
Lieutenant Early's questioning of the costs caused by inefficient management will be making sure that the Navy gets a machine that is well priced. This will demonstrate that she is capable of using public resources wisely. According to the Federal Acquisition Regulation performance standards, business should be conducted with integrity, fairness and openness. The system should maintain the trust of the public at all times. (FAR).
[...] According to the Federal Acquisition Regulation, contract cannot proceed until the contracting officer ensures that all requirements of law, executive orders, regulations and all other applicable procedures including clearances and approvals have been (FAR). Lieutenant Early can also decide to seek advice from specialists on what to do. According to the Federal Acquisition Regulation, contracting officers can “Request for and consider advice from specialists in law engineering, audit, information security, transportation, and other fields, as appropriate” (FAR). Seeking advice would enable her to make a well informed decision. [...]
[...] The system should maintain the trust of the public at all times. (FAR). Her questioning of the costs will earn her trust and confidence from the people. According to the Federal Acquisition Regulation performance standards, “Accordingly, each member of the team should take responsibility for good use of public funds. They should also conduct business in ways that maintain public trust.” (FAR). With respect to the contingency of 3.3 percent, subpart 3.4 of the FAR subpart policies and procedures which restrict the arrangement of contingency fees as a way of obtaining or soliciting Government contracts to those allowed by 10 U.S.C. [...]
[...] Single source supply chain management case study In the case study, a Navy contracting officer, Lieutenant June Early experiences difficulties in a sole source negotiation. This is with Trustworthy Equipment Company. The Company is the only supplier of a machine that the Navy needs. Lieutenant Early meets overhead rates that the company provides as a cost breakdown. This is as an explanation of its fixed price quotation. The quotation was considered as being too high by the Navy. Lieutenant Early should question costs that seem to be the result of inefficient management. [...]
[...] Lieutenant Early can also decide to proceed with the negotiations and propose a fixed- price contract to the company. This is a contract that allows for the inclusion of a price which cannot be adjusted. She can then give reasons as to why she entered into such a contract and what the Navy will gain from the contract in the long term. References Federal Acquisition Regulation (FAR) Home Page. (n.d.). Acquisition Central. Retrieved April from http://www.acquisition.gov/far/ General Services Administration, Department of Defense, National aeronomics and Space Administration (2005). Federal Acquisition Regulation. Naval operating base, arkladelphia. [...]
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