Managing Subcontractor Delivery Delays in Procurement: Recommendations for Maintaining On-Time Superwidget Deliveries
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You have two topics from which you may choose. You must choose only one topic and respond to the situation making your recommendations to the scenario.
Please note that there is no single answer to this scenario, but you should keep your focus on procurement issues in your response.
Students are responsible for APA only for in-text citations and a reference list. Therefore, students will follow the instructions as stated below.
Required Formatting of Scenario Essay:
This essay should be double spaced, 12-point font, and three to four pages in length excluding the title page and reference page;
Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person;
Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment;
Title page with your name, the course name, title of paper, the date, and instructor’s name;
Include reference page;
Use APA formatting for in-text citations and reference page;
Students need to paraphrase and avoid direct quotes;
Submit the paper in the Assignment Folder.
The expectation is that you provide a robust use of the course readings. No other books besides the course eBook can be used. When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number.
NOTE: All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy, and know that it is your responsibility to learn about instructor and general academic expectations with regard to proper citation of sources as specified in the APA Publication Manual, 6th Ed. (Students are held accountable for in-text citations and an associated reference list only).
Assignment 1: Scenario Essay: Option 1
The contract you are assigned to as the contracts administrator calls for the delivery of a product called “The Superwidget”. The United States Government (USG) buys thousands of these Superwidgets a year. Several companies manufacture them and competition for Superwidgets is fierce, based on technical innovation, price, and delivery criteria. The Superwidget is manufactured from components, software, and firmware from numerous companies. The final Superwidget usually sells for between $800 and $1200 per unit, based on some special features, warranty, and service. Your contract is a multi-year contract with a base period and several option years, and you are performing in Contract Year One at the moment. Also, there are about 8 to 10 other contracts with other companies for a competing and similar Superwidget.
You are a contracts administrator and you work for the prime contractor.
Let’s say your company (the prime contractor) buys a particular subwidget for $100/unit. This subwidget is a critical component of the prime’s Superwidget. You have a multi-year subcontract with this subcontractor.
You have just been informed in a monthly status meeting that deliveries of the subwidget will be late for the next 3 to 4 months. After your company completes an analysis, you determine that you do not have sufficient stock of subwidgets to cover the required deliveries to the USG. You will need to notify the USG that deliveries of the Superwidget will also be late.
You check the prime contract: your company may be subjected to damages based on the value of the prime contract. You may also face a potential termination for default. You check the subcontract: The subcontractor’s liability is based on values in the subcontract, that is, the price of a subwidget at about a $100/unit level. You also have the right to terminate the subcontractor for default.
Management recognizes that it has the potential for a lot of problems in this situation, which it may not be able to correct for several more months (if you believe in and rely on the subcontractor).
Your boss, the VP of Contracts, asks you to develop some business scenarios, focusing on the contractual and subcontractual issues that may arise.
Required Elements to include in this Scenario Essay – Option 1:
You are required to identify all the issues the company faces in this scenario.
You are required to identify all the issues the government faces in this scenario.
Provide some ideas about resolving these issues and mitigating risks the customer (USG) may face in the near future.
Provide some ideas about resolving these issues and mitigating risks the company may face in the future.
Assignment 1: Scenario Essay: Option 2
You are the Government contracting officer’s representative (COR) of a program management support contract awarded to Easy Corp. It is the first year of a five-year contract.
You have noticed the following trends:
Management reports are typically late and incomplete.
The contractor program manager is rarely seen by Easy Corp employees or the COR.
Billing is often delayed and contains errors.
The company requiring activity is very pleased with the professionalism of Easy Corp employees who deliver quality support and up-front analysis, and who excel at ethical customer service.
Required Elements to include in this Scenario Essay – Option 2:
Looking at this issue from two different perspectives:
What potential issues does the customer (USG) face if the invoices are continually submitted late and with errors?
What potential issues does the company face if the invoices are continually submitted late and with errors?
What issues confront the employee?
How would you recommend all of these issues be addressed?
You will need to be formal in your responses and to rely on the textbook and other sources to the extent you can.
As the COR:
What do you recommend the contracting officer discuss at the next program review meeting with the Easy Corp chief executive officer (CEO) and program manager?
What suggestions for improvement will you make to the contracting officer in advance of the meeting?
One possible recommendation in this situation would be to explore the possibility of finding an alternative supplier for the subwidget. This could involve conducting a new procurement process to identify and select a new subcontractor who is able to meet the required delivery schedule. In order to minimize the impact on the Superwidget delivery schedule, it may be necessary to expedite the procurement process and prioritize the selection of a subcontractor with a proven track record of on-time delivery.
Another recommendation could be to negotiate with the current subcontractor to find a solution to the delivery delay. This could involve offering incentives for the subcontractor to expedite their production and delivery, such as a bonus for meeting the required delivery schedule or a penalty for further delays. It may also be necessary to consider whether there are any provisions in the subcontract that allow for an extension of the delivery schedule due to unforeseen circumstances.
In either case, it is important to carefully document all actions taken in response to the delivery delay, as well as any resulting impacts on the Superwidget delivery schedule and the prime contract with the USG. This documentation will be important in the event that the prime contractor faces damages or termination for default under the prime contract, as it can be used to demonstrate that the company took reasonable steps to mitigate the impact of the subcontractor’s delay.