Assignment 4 Bus 505

Strayer University

Assignment 4

Legal 505

Professor: Jamie Davis Smith

December 15, 2010

The success of the contract performance phase is measured by how the product performs in the hands of the user while meeting the cost objective as well as delivering the production on a timely basis. This calls for the team to exercise personal initiative and to be able to accommodate changes while at the same time maintaining the discipline imposed by the contract. The contractor is interested in the product’s performance and follow-on business as well as profit. Realization of these objectives also requires discipline, on the part of both the buyer and seller, to maintain the productivity balance that is present at the time of contract award.

The contract administrator is the government representative responsible for ensuring government and contractor compliance with terms and conditions of the contract. It is not a one-way street. It is important to point out that the government representatives is responsible for administering contracts are also charged to set up systems to mitigate the risk to both the government and the contractor when problems surface. The scope of the contract administration task is not one dimensional. The contracting officer understands with each contract certain risk is involved and he/she must be prepared to detect risk before they evolve into problems. Let’s examine the following potential problems:

Cost overruns

Contract Surveillance (FAR 42.103, 42.104, and 42.1105) says the contractor is responsible for timely cost-effective contract performance, the Government is responsible for maintaining contract surveillance to the extent necessary to protect the government’s interests. Appropriate procedures for identification and analysis of cost and schedule variances should be part of every surveillance plan. In general, the more consideration should be given to the complexity of the contract. The basic surveillance plan should contain...