Risk management as it relates to government contracts can often be a complex and convoluted process. This is particularly true as government contracts often have certain stipulations and provisions that are unlike their private sector counterparts. When approaching a high-level negotiation is therefore important to have a strategy that emphasizes risk management and its implications for downside protection.
To begin, as with any negotiation, it is important to identify each party’s key interest. By identifying what each party is attempting to achieve, it is much easier to formulate a negotiating strategy. Here, I would first identify the counterparties primary constituencies and formulate a strategy centered around them. In the case of a government contract, the immediate constituency is the community at large. Depending on the contract, a key counterpart stakeholder is the supply chain itself. For example, in a bid to construct military housing on an off-base premise, key counterparty stakeholders would be the building industry supply...
As a result, to negotiate a building contract, it would not be enough to simply bid based on price. Here, an understanding of the dynamics of a military family are important. As many militaries personnel leave for extending periods of time it is important that the community have a proximity to vital shopping and convenience store outlets. As many families have children it is important to have quality amenities so a spouse can feel comfortable having their children around others. The negotiation would also need to account for the builders and contractors working on the project. Here the overall negotiation process shouldn’t simply focus on cost but how it will impact the government stakeholders and constituencies.
The same would apply to a high stakes defense contract negotiation. The negotiation plan here would focus exclusively on the how the proposal can…
(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
Government contracting can greatly facilitate the goals of various NGOs operating in developing countries, while also making up for weak political or economic institutions. However, the “inherently political process” of contracting also presents unique problems (Zaidi, Mayhew, Cleland, et al, 2012, p. 571). Government contracting can impede social justice, though, and exacerbate the repercussions of neoliberalism. As Schuller (2009) points out, NGOs strengthen neoliberal institutions, have the potential to undermine