The business opportunity
Our company is looking for a new provider for cleaning services. The top-management decided to outsource the cleaning service, in hope for a better quality and a better cost control on this non core business activity. Our Acquisition department already elaborated a Statement of Work that describes the types of cleaning services required. In essence, XXX new supplier XXXX have XX XXXXXXX three specific tasks:
Clean the work desks XXX the XXXX stations. XXX XXXX XXXX be XXXXXXXXX in a satisfactorily mode XX the work XXXXX XXX XXXX stations are clean before the XXXXXXX XXXXX XXXXXX. “Clean” XXXXX that XXX XXXXX XXX stations will XXX XXXX any traces of dust, XXXX or XXXXXX. Empty XXX XXXXX bins and XXXXXXXXXX XXXXXXXX XXXXXXXX XXX XXXX the company XXXXXXX XXX XXXXXXXXXXX protection target XX sorting the XXXXX before disposing it. The XXXX will XX completed in a satisfactorily XXXX XX a XXXX trash bin XXX container will XX XXXXXXX in XXXXXXX one XXXX XXXX XXXX. XXX environment XXXXXXXXXX XXXXXX is XXXXXXXXXX XXXXXXXX if XXX company does not have to pay XXXXX XXXXXXX sorting fees XX the waste XXXXXXXXXX XXX disposal XXXXXXXX.XXXXX the XXXXXX and XXXX XXX XXXXX XXX the windows XX least XXXX per XXXX. The XXXX XXXX XX XXXXXXXXX in a XXXXXXXXXXXXXX XXXX XX the floors, doors and windows XXXX not XXXX XXX traces XX dust, dirt or XXXXXX when XXX morning XXXXX XXXXXX.
Types of XXXXXXXXX
XXX contract XXXX XXXX XXXX both sides in XXXXXXX XXXXX mutual expectations. The XXXXXXXX XXXX will influence the XXXXXXX commitment of the XXXXXXXX XXX XXX financial effort of the contracting XXXXXXX. XXX the upcoming deal, the XXXXXXXXXXX company XXXXX go XXX a firm-fixed-price (FFP), cost-plus-fixed-XXX (CPFF) or XXXX-plus-incentive-fee (XXXX) contract. XXX XXXX-fixed-price XXXXXXXX will XXXX XXXX XX the risk XX XXX XXXXXXXX. XXXX XXXXX XXXX establish a XXXX rate or value XXX the contract XXX the supplier XXXX XXXX to XXXX XXX XXXXXXXXXXXX XXX in the XXXXXXXX in order XX XXXXXXX full payment. Even XX it XXXXX the XXXXXXXX way, XXXX XXXX XX contract will encourage XXXX sides XX focus XX XXX financial XXXX of the XXXX XXX XXX on the XXXXXXXXX XXX (Kendall, 2013). XX other XXXXX, XXX supplier may be tempted to XXXXXX XXX costs for XXXXXXXXXX its profitability. XXXXXXXXX, lower XXXXX mean a XXXXX XXXXXXX. Meanwhile, XXX contracting company XXXX be XXXXXXX XX XXXXXXXX XXX contractor XXX any (XXXXX) quality or XXXXXXXXX issue, in order to save costs. This XXXX of contract works at its XXXX XXX punctual, short-term XXXXX.The CPFF contract will increase the XXXXXXXXXXX XX XXX XXXX. XXXX sides XXXX XXXXXXXX XXX supply/XXXXXXXXXXX costs and XXXXX a profit XXXXXX for the deal. This XXXX XX contract will work XXX XXXX if the parts expect XXXX the amount of XXXX or cost XXXXXXXXX XXXX change XXXXXX XXX execution.The XXXX contract will XXXX the XXXX XXX complex deals. XXX XXXXXXXX will be XXXX according XX XXX XXXX, quality and XXXXXXXX XXXXXXXXXX XXXXXXXX. This XXXXXXXX XXX the XXXXXX level of XXXXXXXXXXX XXX the lowest level of predictability.
XXXXXXXXXXX Contract XXXX
In this scenario, the XXXXXXX XXXXXX XXXXXXXXX a XXXX contract. This XXXX of contract will XXXX XXX company keep XXX XXXXX XXXXX XXXXXXX XXX periodically evaluate XXX decide XXX XXXXXX XX work ordered to XXX XXXXXXXX. XXXX, this is a XXXX XXXXXXXXXXX contract, XXXXX XXXX sides will be able to evaluate XXX XXXXXX XXX the XXXXXXXXXXXXX that come with this deal. XXXXX all, XXX required XXXXX XXX XXXXXX XXXXXX XXX XXXX a contract XXX XXX XXXXXX XX XXXX is volatile XXXXXX XXX to XXXXXXX for a XXX contract.
XXXXXXXXX
XXXXXXX, X. (2013). Use of Fixed-Price XXXXXXXXX XXXX (XXXX) XXXXXXXXX in XXXXXXXXXXX XXX XXXXXXXXXX. Defense AT&X, 42(X), X-4.
">