Hybrid Contracts for Small Business

In this paper I will discuss the various aspects of a Federal Contract Specialist position and what makes it different from many other government jobs. Some people think contracting is just shopping for a living, however, it requires great skill and attention to detail. Contract Specialists must be able to communicate effectively with their customers, vendors and other contracting personnel and they must be able to accurately interpret regulations and apply them appropriately. This position is a little bit customer service representative, a little bit personal shopper and a whole lot of legal assistant.

Mary Linn of Ocean Carriers is evaluating the purchase of a new capesize carrier for a 3-year lease proposed by a motivated customer. The leasing contract offers very attractive terms, but no ship in Ocean Carrier’s current fleet meets the customer’s needs. In addition, the proposed contract with the customer is only for three years. Therefore, after three years, the

Fixed-price contracts use a fixed total price for the defined product, service, or result to be provided. The seller has the most risk in this contract type because they are obligated to complete the contracts and they will have to pay financial damages if they do not complete it. In the cost-reimbursable contracts, cost reimbursements are involved with additional fee that represents seller profit. This contract type is flexible especially when the project scope changes. Buyers have the most risk in this contract because it is possible that sellers increase prices and fees in the process. The time and material contracts is a hybrid of the fixed-price contracts and cost-reimbursable contracts. Buyers have the most risk in this contract type because the contracts can be open-ended allowing the sellers to increase the price of materials or services.

The use of simplified Acquisition procedure has become an easy and apt tool of responding to the needs of the client. The widely adhered to simplified acquisition threshold (SAT) is $300,000, however there are a few exemptions and our case here fits into the exemption. Apparently any such purchases that exceed the SAT but not exceeding $500,000 can be approved but must go at least one rung above the contracting officer to the supply chain contracting official (Defense Logistics Agency, 2012). There are basically four ways or approaches towards the simplified acquisition methods; the government officials concerned can pay for a simplified acquisition through cash basis, or through the government-wide purchase card, using the purchase order or blanket purchase agreement. This method involves the companies simply furnishing the contracting officials with quotation which in this case is not binding on the firm till such a time that the company will accept the government's order.

Firm Fixed Price Contracts (FFP), it is appropriate for most commercial transactions, example: Software package that can be bought for $1,500 regardless of the seller’s cost.

A Fixed Price contract provides for a price which normally is not subject to any adjustment unless certain provisions are included in the agreement, such as contract change, economic pricing, or defective pricing. These contracts are negotiated usually where reasonably definite specifications are available, and costs can be estimated with reasonable accuracy. A

This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks

(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).

evaluation for the pre-solicitation phase of the follow-on base operation and security and support contract valued at

On the business field, a contract is usually between someone who provide a service to a hirer for money. You are promising to do a job for the hirer and the hirer is promising to pay you for it. (government) There is different type of contracts with two major groups: fixed-price and cost-plus contract.

There are two main approaches to contracting: competitive methods, such as purchase cards, impress funds, auctioning, net marketplaces, vertical exchanges, horizontal exchanges, web portals, sealed bidding, private exchanges, two-step sealed bidding, and competitive negotiations, and noncompetitive methods, such as purchase agreements and sole-source or single-source negotiations.

This Performance Work Statement (PWS) provides high-level task information to establish Blanket Purchase Agreements (BPA), against the General Services Administration’s (GSA) Multiple Award Schedule contracts. The multiple task orders issued under this BPA will be enterprise-wide and highly visible across the Internal Revenue Service (IRS). The IRS may place orders against this BPA as individual projects/workstreams that are identified for contractor support. However, it is emphasized that there are no intended or implied guarantees regarding the usage of this vehicle. Some orders may be conducted simultaneously or separately.

This is in reference to the ‘Contractual Agreement’ between Department of Veterans Affairs and The Vault IIV/The Mitchell Group Inc. dated 02/07/2014, the term of which is about to end on 03/11/2016. With the current contract coming to an end we will need to establish a new contract or an extension of the expiring contract. A month to month storage only option may be available at a fee of $5,500.00/mo. Please contact Albert Mitchell, President to discuss this matter.

Ocean Carriers Inc. was approached in January of 2001 with a contract proposal for the leasing of one of their ships for a term of 3 years beginning in 2003. Ocean Carriers currently has no ship to accommodate the customer. To commission the construction of a new vessel would take 2 years from start to completion. The average rate in the spot market is $22,000 per day. Ocean Carriers deployed a younger fleet than average carriers and generally earned a 15% premium over the average daily rate placing them in position to capitalize in strong economies. However, the industry is volatile and suseptable to extremes both low and high. Many ship owners sought to sign contracts with time charters in order to shield themselves from the swings

Negotiating is a practice that allows for two sides to reach common ground and agree upon a specific settlement or transaction. During this at times complicated process, the bargaining sides develop a measure together to move forward in their business process. As a lead negotiator of a small firm, the research and analysis of the sought after contract has to be thoroughly conveyed to the U.S. Government. The small business’s negotiating team should be very familiar with the federal negotiating team and all that the federal government is expecting from the product they desire. As there are hundreds of competitors out there, it is safe to assume that there are multiple products out there. However, the negotiating firm of the small business must use different negotiating gambits and pay particular attention to the body language and examine the language used during the entire process.