Showing papers on "Fixed price published in 1989"
01 Sep 1989
TL;DR: In this paper, the authors analyzed the 100th Congress' requirements on the use of fixed-price type development contracts and concluded that further implementation should be limited to defining two key terms in the statutes.
Abstract: : This study analyzed the statutory requirements from the 100th Congress on the use of fixed-price type development contracts. The goal was to determine how the military departments should further implement these requirements. The study found a definite trend from more restrictive language to more flexible language in the legislative history of all four statutes. The purpose of the legislation was to enable Congress to choose the composition of military goods and services based on relative program and military merit within the budget limitations, rather than be restricted to an existing composition because of existing fixed-price contractual commitments. Congress wanted the Department of Defense acquisition community to use a development contract structure which provided for the range of cost outcomes from the unfolding of a dynamic task. The study concluded that further implementation should be limited to defining two key terms in the statutes. Realistic pricing is the analysis that determines the financial outcomes of future events and generates a distribution of these outcomes with the probability of each occurrence. An equitable and sensible allocation of risk assumes a narrow distribution of outcomes and puts the maximum government financial liability on this distribution to exceed a high percentage of the possible outcomes.
10 citations
TL;DR: In this article, the authors examined two key issues relating to the use of fixed-price conservational contracts of the type embodied in the new Environmentally Sensitive Area policy in the UK.
Abstract: The paper examines two key issues relating to the use of fixed-price conservational contracts of the type embodied in the new Environmentally Sensitive Area policy in the UK. It uses data for the Broads Grazing Marshes Conservation Scheme (BGMCS). The budgetary costs of the fixed-price contract are compared to those of (i) public purchase of land with leaseback for grazing, and (ii) of individual management agreements. Using a net present value criterion, public purchase emerges as the cheapest option, and management agreements as a superior option in defined circumstances. The paper also explores equity and efficiency issues arising from fixed price contracts. It is concluded that for many farmers and landlords in the BGMCS the fixed payment exceeded what was necessary to achieve the conservational objectives, while at the same time it was less than the profit foregone by farmers who might possibly have switched to arable farming.
9 citations
TL;DR: In this paper, the authors present a setting in which cost allocations are part of the optimal contract between the government and a firm supplying goods to the government, under conditions of assymetric information and divergence of preferences.
8 citations
TL;DR: In this paper, the problem is modelled as an open-loop Stackelberg differential game such that the manager is the leader; the shareholders are followers, playing a Nash game.
6 citations
03 Jan 1989
TL;DR: TRW has defined an incremental test approach that satisfies TRW and Government objectives for informal development/integration testing and for formal requirements verification and conforms to DOD-STD-2167A standards.
Abstract: One of the key challenges for large Ada software projects is to define and execute an efficient, cost effective, bounded test program that results in a quality product that meets all customer software requirements. This is particularly challenging in the current climate of Government fixed price contracts. The Command Center Processing and Display System Replacement (CCPDS-R) project is being developed entirely in Ada by TRW for the U.S. Air Force on a fixed price basis. To mitigate downstream test risks, TRW has defined an incremental test approach that satisfies TRW and Government objectives for informal development/integration testing and for formal requirements verification. Features of Ada are employed to create a software architecture that supports an incremental test philosophy and contributes to reduced integration effort and risk. The resulting test approach conforms to DOD-STD-2167A standards.
5 citations
Book•
23 Oct 1989
TL;DR: In this article, the authors present a list of types of projects and types of contracts, including the bar chart, histograms, and histograms of the network critical path of a project.
Abstract: Types of projects - project mangement the planning effort - the bar chart - histograms planning projects summary - networks - the network critical path - the precedence diagram - estimating activity durations computer applications project cost estimating date and information for estimating and tendering cost-estimating terms and practices cost control - strategic considerations time-lag in information cost-control terms and practices quality and quality assurance performance and project management organization - team management procurement contract administration - type of contract - fixed price - variable price - contracts for personal/professional services - contract documents - discharge of contracts - discharge by performance - discharge by agreement - discharge by frustration.
3 citations
01 Jun 1989
2 citations
Journal Article•
TL;DR: In this article, the impact of fixed price incentive fee contracts on program execution of a major weapon system was examined. And the predominant conclusion brought out by this research was that based on the political, historical, and economic circumstances of the period, the fixed-price incentive fee contract was the best contractual instrument for the government to use, and the major recommendations are: in future contracts, ensure an appropriate spread between ceiling and target price in order to adequately incentivize the contractor; in teaming arrangements, employ incentives to guarantee the appropriate transfer of technical information; and incentivize comprehensive production
Abstract: : The purpose of this study was to look at the impact of a fixed price type contract on program execution of a major weapon system. The full scale development phase of the V-22 Osprey program was used as a case study. The focus of this thesis was to determine the affects of this contract type and identify the actions program management took to address it's influences. The predominant conclusion brought out by this research was that based on the political, historical, and economic circumstances of the period, the fixed price incentive fee contract was the best contractual instrument for the government to use. The major recommendations are: in future contracts, ensure an appropriate spread between ceiling and target price in order to adequately incentivize the contractor; in teaming arrangements, employ incentives to guarantee the appropriate transfer of technical information; and incentivize comprehensive production plans and Production Readiness Reviews. Keywords: V-22 Osprey program, Fixed price contracts, Program execution.
1 citations