Your Contracting team has awarded a Cost-plus Fixed Fee Low Cost Technically Acceptable Level of Effort Contract to a small business for the research ...
TOPIC: Your Contracting team has awarded a Cost-plus Fixed Fee Low Cost Technically Acceptable Level of Effort Contract to a small business for the research development and build of a working prototype
screen which will be incorporated into virtual reality heads up display unit for Special Operations. The
Contract was awarded using a Low Cost Technically Acceptable evaluation method and was synopsized
as a total small business set aside in order to meet your organizations small business contracting goals
and objectives, even though your market research indicated that there we no small business capable of
developing and producing this item. The contractor is six months behind schedule and has expended
75% of the total funds but has only completed 45% of the development work. The contract is divided up
into main sections. The first is the design of the system and the second part is to build a prototype. The
program office is saying that there may not be enough funding in their budget to pay for the all the
contractors' cost overruns. This screen is critical for the next phase of the heads-up display unit and will
be incorporated into another system which is being built by another company. This delay and cost
overrun is going to hold up other phases of the program. Your SES wants to terminate this contractor for
default, but your Commanding General wants to continue with the program. The contractor claims that
the work is too complicated and that they were given technical specifications that were ambiguous as
well direction from the General that were incorrect on how to proceed with the program, which has
caused them to fall behind schedule and have a cost overrun. Now it is your job to come up with a
solution on how to resolve and or mitigate this issue. What are your Options and how would you
implement these options contractually? Also, the General and your SES want this to be a teachable
moment and they are asking your team to develop new policies, procedures, and guidelines on how to
resolve or mitigate this issue and to prevent this happening in the first place
Question: How does inadequate market research apply to this situation?
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