Pricing and Financial Management of Contracts

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Hugo Corporation - Maximize Price Competition 1. You are concerned about the clarity of the purchase description in light of the lack of competition on the current purchase. As a buyer, what can you do? a. You can elect to rewrite the purchase description in more detail and have it reviewed in house for feedback. b. Or if circumstances permit, invite interested offerors who reply to the initial solicitation, to an oral presentation of the offer and clarify any issues before requesting official bids or proposals. This can be a video conference or a personal meeting. 2. You are also concerned that the Government did not obtain the greatest possible discount on sales over 1,000 total units. As a buyer, what can you do? It is too late to…show more content…
What factors do you think affect this difference? a. Washington Central knew they did not meet the award criteria with 2 instructors having no masters degree and was hoping the low bid would compensate. Also engineers with bachelors command less compensation that engineers with masters. b. All their trainers were permanent employees working in DC and its possible that if they did not get this contract they may become idle resources on the payroll. 3. The proposal of Washington Independents is $39,286 less than the Government estimate. What factors do you think affect this difference? The government may have estimated significant travel and lodging expenses for the instructors. But the instructors at Washington Independents were all within 15 miles of each training location. This significantly reduced travel expense e.g rental cars, airfares, and possibly eliminated additional lodging expenses e.g hotels. 4. Los Angeles Quality has the highest proposed price. What factors do you think affect this difference? The 11 instructors that need to travel from LA to DC is a significant factor affecting the price. The main price difference was the LA estimate to provide training at the Washington DC location. Los Angeles proposed prices for all training locations were on target or very close within $2,000.00 of the government estimates; except for Washington, DC location where there was a
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