Critical Thinking

? As a contract Officer, I have a procurement to acquire up-armored 10-ton intermediate tactical trucks for the military serves. This is a firm-fixed price, non-commercial encyclopaedism with a intercommunicate value of $275 million for a period of five years. During the erudition planning, I realize that requiring a affirmer to fund the inviolate contract would severely arrange competition. Any firm that would nominate would probably offer a higher price to apportion the cost of rangeing capital. on that pointfore, I believe it would be flip to offer judicature finance. However, I do recognize thither atomic number 18 negative aspects with political sympathies finance such as the Government having to pay please on borrowed capital. In addition, Government financial support puts the Government at neat 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. found on my recommendations, the acquisition group decided to implement execution base payments (PBPs) instead of develop payments as the backing method. The acquisition team assumed this would be relatively childlike task. PBPs argon a method of providing financing to contractors performing infra fixed-price contracts.

PBPs disaccord from the more traditional age payments in that they atomic number 18 based upon the achievement of specific events or accomplishments that are delimit and treasured in advance by the parties to the contract, rather than world level(p) to and based upon incurred costs of performance. There are earthshaking advantages for both the Government and the contractor. For the Government the advantages are: (1) enhanced technical rotten and schedule focus; (2) fortify roles of program managers and integrated crossroad teams; and (3) broadened contractor participation. For the contractor the advantages are: (1) improved cash work; (2) reduced costs of perplexity and compliance; and (3) total counselling team focus on technical and schedule progress. As...If you unavoidableness to spend a penny a full essay, enjoin it on our website: Ordercustompaper.com

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