What potential issues does the company face if the invoices are continually submitted late and with errors?.
Assignment 1: Scenario Essay (20%)
You have two topics from which you may choose. You must choose only one topic and respond to the situation making your recommendations to the scenario.
Please note that there is no single answer to this scenario, but you should keep your focus on procurement issues in your response.
APA Standards
Students are responsible for APA only for in-text citations and a reference list. Therefore, students will follow the instructions as stated below.
Required Formatting of Scenario Essay:
This essay should be double spaced, 12-point font, and three to four pages in length excluding the title page and reference page;
Write in the third person;
Use headings;
Title page with your name, the course name, title of paper, the date, and instructor’s name;
Include reference page;
Use APA formatting for in-text citations and reference page;
Students need to paraphrase and avoid direct quotes;
Submit the paper in the Assignment Folder. The assignment submitted to the Assignment Folder will be considered a student’s final product and therefore ready for grading by the instructor. It is incumbent upon the student to verify the assignment is the correct submission. No exceptions will be considered by the instructor.
Assignment 1: Scenario Essay: Option 1
Background:
The contract you are assigned to as the contracts administrator calls for the delivery of a product called “The Superwidget”. The United States Government (USG) buys thousands of these Superwidgets a year. Several companies manufacture them and competition for Superwidgets is fierce, based on technical innovation, price, and delivery criteria. The Superwidget is manufactured from components, software, and firmware from numerous companies. The final Superwidget usually sells for between $800 and $1200 per unit, based on some special features, warranty, and service. Your contract is a multi-year contract with a base period and several option years, and you are performing in Contract Year One at the moment. Also, there are about 8 to 10 other contracts with other companies for a competing and similar Superwidget.
The Situation:
You are a contracts administrator and you work for the prime contractor.
Let’s say your company (the prime contractor) buys a particular subwidget for $100/unit. This subwidget is a critical component of the prime’s Superwidget. You have a multi-year subcontract with this subcontractor.
You have just been informed in a monthly status meeting that deliveries of the subwidget will be late for the next 3 to 4 months. After your company completes an analysis, you determine that you do not have sufficient stock of subwidgets to cover the required deliveries to the USG. You will need to notify the USG that deliveries of the Superwidget will also be late.
You check the prime contract: your company may be subjected to damages based on the value of the prime contract. You may also face a potential termination for default. You check the subcontract: The subcontractor’s liability is based on values in the subcontract, that is, the price of a subwidget at about a $100/unit level. You also have the right to terminate the subcontractor for default.
Management recognizes that it has the potential for a lot of problems in this situation, which it may not be able to correct for several more months (if you believe in and rely on the subcontractor).
Your boss, the VP of Contracts, asks you to develop some business scenarios, focusing on the contractual and subcontractual issues that may arise.
Required Elements to include in this Scenario Essay – Option 1:
You are required to identify all the issues the company faces in this scenario.
You are required to identify all the issues the government faces in this scenario.
Provide some ideas about resolving these issues and mitigating risks the customer (USG) may face in the near future.
Provide some ideas about resolving these issues and mitigating risks the company may face in the future.
Assignment 1: Scenario Essay: Option 2
You are the Government contracting officer’s representative (COR) of a program management support contract awarded to Easy Corp. It is the first year of a five-year contract.
You have noticed the following trends:
Management reports are typically late and incomplete.
The contractor program manager is rarely seen by Easy Corp employees or the COR.
Billing is often delayed and contains errors.
The company requiring activity is very pleased with the professionalism of Easy Corp employees who deliver quality support and up-front analysis, and who excel at ethical customer service.
Required Elements to include in this Scenario Essay – Option 2:
Looking at this issue from two different perspectives:
What potential issues does the customer (USG) face if the invoices are continually submitted late and with errors?
What potential issues does the company face if the invoices are continually submitted late and with errors?
What issues confront the employee?
How would you recommend all of these issues be addressed?
You will need to be formal in your responses and to rely on the textbook and other sources to the extent you can.
As the COR:
What do you recommend the contracting officer discuss at the next program review meeting with the Easy Corp chief executive officer (CEO) and program manager?
What suggestions for improvement will you make to the contracting officer in advance of the meeting?
