LEG 505

Discussion 1

"Cost-Reimbursement Contracts" Please respond to the following:

• Under FAR Subpart 16.3, Cost Reimbursement Contracts are defined as a type of contract that permits payment of allowable incurred costs, to the extent prescribed in the contract. From the e-Activity, defend or refute the reasonableness in the use of this type of contract by government agencies. Based on your position, recommend a revision that would make use of the contract more reasonable.

• Take a position on whether cost reimbursement contracts are necessary in government contracting to the extent they provide a means not available in other contract forms. Discuss under what circumstances you would consider the use of cost reimbursement contracts. Include an example to support your position.

e-Activity

• Review the GAO report titled, “Extent of Federal Spending under Cost-Reimbursement Contracts Unclear and Key Controls Not Always Used,” GAO-09-921, Sept. 30, 2009, located at http://www.gao.gov/new.items/d09921.pdf, and evaluate the reasonableness in the use of this type of contract by government agencies. Be prepared to discuss.

Discussion 2

"Letter Contracts" Please respond to the following:

• Give your opinion on whether or not letter contracts should be considered valid in government contracting. Support your position.
• Assess what types of contracts are acceptable in government contracting. Compare and contrast the various types and provide three examples that demonstrate their necessity and use.

Discussion 3

"Price Analysis versus Cost Analysis" Please respond to the following:

• Compare and contrast price analysis versus cost analysis, explain how they differ, and describe when it is appropriate to use price analysis versus cost analysis. Select one of the two methods and determine under what condition(s) it would not be appropriate for use. If you believe that the methods apply to any circumstance, justify your response.
• Explain the importance of these two types of analysis in the context of government contracts. Provide an example of how each is clearly used.

e-Activity

• Review the GAO testimony, “Federal Contracting: Application of OMB Guidance Can Improve Use of Award Fee Contracts,” GAO-09-839T, August 3, 2009, located at http://www.gao.gov/new.items/d09839t.pdf. Be prepared to discuss the uses of the “award fee” contract.

Discussion 4

"Award Fee Contracts" Please respond to the following:

• From the e-Activity, discuss whether or not the agencies mentioned took any actions that reflected the suggestions provided by the Office of Management and Budget. If you think actions were taken, state what actions were taken and explain why those actions were taken. If you think no actions were taken, analyze why no action was taken and whether action should have been taken under the circumstances. Justify your response.
• Discuss whether contractors provide better work with an award fee. Include in your discussion on whether or not they are incentivized by the better profit potential of an award-fee contract. Support your position with an example.

BUS 505

Discussion 1

"Analyzing Customer Requirements" Please respond to the following:

• Based on the e-Activity, describe how you could leverage the ambiguous language you found in the RFP. Provide specific examples to support your response.
• Analyze each of the key proposal preparation documents discussed in Osborne’s “Developing a Proposal Preparation Plan” and recommend at least one additional document that would help you analyze customer requirements.

Discussion 2

"Preparing the Winning Cost Volume" Please respond to the following:

• Evaluate the list of common cost proposal mistakes described in Chapter 14 of the textbook. Select three from the list and determine the most likely cause of each mistake. Suggest a recommended action that either the federal government or the offerer could take to avoid the mistake in the future.
• Determine which of the following would be more difficult to execute correctly across the greatest number of projects: preparing cost estimates or preparing the cost volume. Explain your rationale.

ECO 550

Discussion 1

Sequential-Move Game Strategy

• In the text, we considered a sequential-move game in which an entrant was considering entering an industry in competition with an incumbent firm (Figure 15-1). Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player). What is the equilibrium of this game? Discuss if the entrant is better off with or without the ability to withdraw.

Discussion 2

Type I and II Decision Error Cost

The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not is to be made.

• What are the Type I and II decision error costs?
• Which decision error is more likely to be discovered by the CEO?
• How does this affect the HR manager's hiring decisions?