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GOVERNMENT CONTRACTS 2
Communication of Cost Objectives
Communication of cost objectives to both internal and external stakeholders is crucial. A cost objective is a function or organizational subdivision for which cost data is accumulated and measured (Boyd et al., 2014). Communication of direct, indirect costs, as well as overheads could be communicated to internal stakeholders such as managers of the various cost centers through organized focus group discussions. The main aim of such internal communication is to identify deviations from the project plan and suggest potential areas for cost saving (Boyd et al., 2014). As such, information that may be considered proprietary would be actual expenditure on direct materials, labor, and production overheads vis--vis the budgeted amounts so as to check whether or not there are significant deviations in the different cost objectives. On the other hand, the information...
External communication will most likely take place at the completion of the project. It is most likely to focus on comparing direct and indirect costs so as to assess how much of the costs could be traced directly to the produced product or service (direct cost), and how much of the cost is attributable to overheads (indirect costs). This would be a measure of efficiency.
On a different note, I agree with the statement that as contract managers, it is important to know all available tools that will allow us to procure goods and services at fair and reasonable prices (Nash et al., 2007). To successfully negotiate goods and services on behalf of the taxpayer, the negotiator needs to develop a should-cost review, which is used to evaluate significant elements of direct costs such as materials and labor, as well…
References
Boyd, K., Epstein, L., Holtzman, M., Kass-Shraibman, F.,…& Wellytok, G. (2014). Accounting All-in-One for Dummies. Hoboken, NJ: John Wiley & Sons.
Nash, R. C., Schooner,, S., O’Brien-DeBakey, K., & Edwards, V. (2007). Government Contracts Reference Book. Washington, DC: Washington University Press.
(Vancketta, 1999) The 'Changes' clause enables the Government "to make unilateral changes to the contract during performance, so long as those changes fall within the contract's scope." The Standard 'Changes' clause utilized in fixes price supply contracts allows the CO to make changes in writing to: 1) the drawings, designs, or specifications when the item is being specifically manufactured for the government; 2) the method of shipment or packing; or 3) the place
Solar power captures the heat and light of the sun to generate electricity. The overall climatic changes can be wisely used by Corporations and Governments to produce useful electricity, without recurring to solid wastes or other non-renewable resources. Hydroelectric power captures the energy in falling water. It is considered to a have a relatively small impact on the natural environment, and electricity can be obtained by using natural or artificial water
8). The federal government's recent decision to shift to fixed-price contracts is intended to protect the government from overcharging by contractors and from assuming the potentially enormous losses that are involved when projects, especially high-tech defense initiatives, fail. As Erwin points out, though, "The policy ignores history. This is a shortsighted move that only creates incentives for contractors to bid low and after winning, try to maximize changes in
Commercial and Government Contracting The Differences Between the Formation of Commercial and Government Contracts When a business moves from the commercial contracting marketplace to the government procurement world it must ensure a clear understanding of the specific rules and regulations to which it will be a party (Manos, 2004; Oyer, 2005). There are inherent risks in working with the government, but businesses that are careful with what they do can mitigate
Small Business Government Contracting CEO of Small Business that Provides Service Expansion by Competing for Navy Contracts at a Base Several Miles Away The objective of this study is to examine the scenario of a CEO of a small business that provides a service and business expansion through competing for Navy contracts at a base several miles away. This work will: (1) Determine how the federal government encourages small businesses and how