The Department of Defense plans to issue a $400,000 government contract to a company that specializes in drone navigation technologies. As a result, a government auditor has been contacted to examine the operational data VectorCal and one competitor (previously identified as NavoTech) in order to decide which company should win the government contract.
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Note: You may create and /or make all necessary assumptions needed for the completion of this assignment.
Write a six to eight (6-8) page paper in which you:
- Create a one-page overview of the history and background of each company vying for the government contract.
- Specify at least one (1) of the recent major contracts that was awarded to both companies. Explain the fundamental reasons why both companies were awarded the contract(s) that you specified.
- Determine the type(s) of contract for which both companies might be eligible (e.g., fixed-price, cost reimbursement, etc.). Justify your response.
- Discuss at least three (3) direct costs and three (3) indirect costs that each company incurred during the production of its navigation system. Explain the manner in which this data would factor into your decision as to which company would be more eligible to receive the contract.
- Suggest which company should be awarded this government contract based on the data that was presented for each company. Next, provide three to five (3-5) reasons to support your stance.
- Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.
The specific course learning outcomes associated with this assignment are:
- Specify the government policies regarding profit and pricing adjustments for contracts.
- Evaluate the role played by contract auditors.
- Use technology and information resources to research issues in cost and price analysis.
- Write clearly and concisely about cost and price analysis using proper writing mechanics.