Critical Thinking

? As a Contracting Officer, I have a procurement to acquire up-armored 10-ton medium tactical trucks for the military serves. This is a firm-fixed price, non-commercial acquisition with a projected value of $275 million for a period of five years. During the acquisition planning, I realize that requiring a affirmer to fund the entire contract would severely define competition. Any firm that would propose would probably offer a higher price to cover the cost of working capital. on that pointfore, I believe it would be wise to offer judicature finance. However, I do recognize there atomic number 18 negative aspects with government activity support such as the Government having to pay please on borrowed capital. In addition, Government financing puts the Government at great risk due to the contractor having both the cash and the harvest. In the event that the contractor defaults or bankrupts, the Government could omit both. Based on my recommendations, the acquisition squad decided to implement performance based payments (PBPs) instead of hand payments as the financing method. The acquisition team assumed this would be relatively childlike task. PBPs atomic number 18 a method of providing financing to contractors performing infra fixed-price contracts.

PBPs differ from the more traditional win payments in that they be based upon the achievement of specific events or accomplishments that are delimit and valued in advance by the parties to the contract, rather than world tied to and based upon incurred costs of performance. There are earthshaking advantages for both the Government and the c! ontractor. For the Government the advantages are: (1) enhanced technical foul and schedule focus; (2) strengthen roles of program managers and integrated product teams; and (3) broadened contractor participation. For the contractor the advantages are: (1) improved cash work; (2) reduced costs of precaution and compliance; and (3) total commission team focus on technical and schedule progress. As...If you unavoidableness to get a full essay, site it on our website: OrderCustomPaper.com

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