Disadvantages Of Evaluating Government Contracts
Evaluating Contracts
Michael A. Clinton
Professor Canuto Campos
Contract Administration and Management – BUS 330
Sep 4, 2012
The federal government contracts for an enormous amount of its goods and services, whether big or small, with the intent of fulfilling the request with a fair and reasonable price. This cannot always be accomplished due to the various types of contracts and the numerous characteristics that go along with each contract type; there are both pros and cons associated each contract type for requestor and the contractor attempting to fulfill these contracts. There are five categories of types of contracts used by the government; the two major types of contracts are Fixed-Price (FP) and Cost-Reimbursement (CR) Contracts, and the three additional contract types which …show more content…
There are possibilities of other advantages that the government can take away from this type of contract. On the other hand, there are several disadvantages associated with using this particular type of contract as well; for example, client needs to set aside management hours for controlling and tracking vendor resources including the approval and clearance of time-sheets; it is often difficult to provide accurate budget estimates since there would not be any limits on the hours of utilization; vendor managers will not take responsibility of deliverables and management of stakeholder expectations. These are just a few pros and cons that federal government and its agencies will have to be concerned with, while dealing with time and management
Michael A. Clinton
Professor Canuto Campos
Contract Administration and Management – BUS 330
Sep 4, 2012
The federal government contracts for an enormous amount of its goods and services, whether big or small, with the intent of fulfilling the request with a fair and reasonable price. This cannot always be accomplished due to the various types of contracts and the numerous characteristics that go along with each contract type; there are both pros and cons associated each contract type for requestor and the contractor attempting to fulfill these contracts. There are five categories of types of contracts used by the government; the two major types of contracts are Fixed-Price (FP) and Cost-Reimbursement (CR) Contracts, and the three additional contract types which …show more content…
There are possibilities of other advantages that the government can take away from this type of contract. On the other hand, there are several disadvantages associated with using this particular type of contract as well; for example, client needs to set aside management hours for controlling and tracking vendor resources including the approval and clearance of time-sheets; it is often difficult to provide accurate budget estimates since there would not be any limits on the hours of utilization; vendor managers will not take responsibility of deliverables and management of stakeholder expectations. These are just a few pros and cons that federal government and its agencies will have to be concerned with, while dealing with time and management