Contracting And Negotiation Flashcards

Question

What the general format/content of bid request should consist?

Answer 1

A complete spec of item or SOW of the service The quantity to be quoted Where and when the items are to be shipped or installed The due date for quotation The due date for the product or service

Answer 2

``` Bid bonds Performance bonds Payment bonds Deposits Letter of credit Real estate Cash ```

Answer 3

A third party that need to bear the extra cost of going into alternative source

Answer 4

A bonds that guaranteeing prompt delivery of goods that meet specifications. In construction will be according to spec and time requirements

Answer 5

To discourage financially unstable suppliers

Answer 6

A. Time extensions and amendments to solicitation B. Late bids C. Offer with errors, irregularities or omission D. Conflict of interest E. Protest F. Confidentiality/security G. Alternate proposals H. Debriefing process I. Procedure for cancellation of solicitation

Answer 7

1. The mistakes was mechanical or clerical in nature, not an error in judgement 2. The bidder was not guilty of blame de serving negligence in making the error

Answer 8

- Are unlikely to now the negotiation position - Are unlikely to anticipate what the other party likely to do or to understand what motivates the other party - Are unlikely to know what results or goals they want to achieve - Will be unable to respond realistically to the other party's proposal - Will not know whether the negotiation is reasonable

Answer 9

SWOT Trends

Answer 10

Evaluate supplier's proposal such as evaluate price, delivery specification or statement of works, terms and any deviations from your requirements

Answer 11

Set objective Is lower price, higher quality or accelerate delivery

Answer 12

A. Fair and reasonable price B. Timely performance C. Meeting the minimum essential needs of the organization D. Control over how the contract is performed E. Maximum supplier cooperation F. Sound relation with suppliers

Answer 13

1. Seller's desire for a contract 2. Seller's certainty of getting a contract 3. Amount of time for negotiation 4. Adequacy of cost/price analysis 5. BATNA 6. Seller's competitive position 7. Skill and authority level of the negotiator/negotiation team 8. Extend of planning for the negotiation 9. Seller's financial condition

Answer 14

``` A. Patented design or feature B. Closest producers C. Higher quality product D. Better engineering support E. Better production capacity Other superior customer service, low reject rates, comfortable payment term, performance track record ```

Answer 15

``` A. Subject B. Introduction summary C. Particulars D. Procurement situation E. Negotiation summary ```

Answer 16

Protection from antitrust problems Limitation of liabilities concerns Ease of entry and exit Definition of right and obligations of members Cost and membership fees Requirements to buy from participating suppliers Special needs such as storage, delivery or quality requirements Rules of behavior

Answer 17

A. Offer and acceptance B. Consideration C. Competent parties D. Legality of purpose

Answer 18

A law designed to prevent fraud and perjury by requiring that certain contracts be in writing. Contract for goods worth $500 and more, as well as any other contract that cannot fully performed in a year are not enforceable

Answer 19

It increased the statue of fraud amount into $ 5,000 from $ 500

Answer 20

1. Reserving a place "in line" for standard equipment 2. Basing volume discount on future business without giving firm order 3. Encouraging seller to stock items of interest 4. Providing supplier with evidence to secure bonding

Answer 21

Binding | non-binding

Answer 22

``` Fixed price Cost reimbursable Indefinite delivery contract Letter contracts Dealer's agreement Service agreement Master purchase agreement Construction contract ```

Answer 23

``` Firm fixed price Fixed price with escalation Fixed price with re-determination Fixed price with incentive Fixed price level of effort Fixed price with downward price protection Fixed price with remedies ```

Answer 24

Agree to pay the supplier a set of price for the specific goods or service

Answer 25

Buyer may wish to use an adjustment/escalation clause, which provide for both upward and downward changes either in material or labor cost. Usually ties to indices and used during economic uncertainties

Answer 26

Used when both future cost and amount of labor or material are uncertain. The differences is the amount of labor and material are unknown

Answer 27

A contract that provide supplier with incentive to control cost by establishing target cost, target profit, a ceiling price and final profit formula. Typically if there is a saving, both supplier and buyer will share at predetermine rate. Appropriate in high cost, long lead time project

Answer 28

Where the fixed price per unit level of effort are used when neither the work or results can be specifically defined prior to performance

Answer 29

A contract that provides maximum protection for the buying organization. It can only adjusted downward.

Answer 30

A fixed price contract with remedies provides fixed pricing with an option to obtain reimbursement for extraordinary expenses. For example when delivery date is extended

Answer 31

``` Cost plus a fixed fees Cost plus percentage cost Cost plus incentives Cost plus award fee Cost without fee Cost sharing ```

Answer 32

This form guarantee the supplier reimbursement for allowable cost plus a negotiated fixed fee

Answer 33

This is the most undesirable form for buyer as it provide no incentive to control cost

Answer 34

This is similar to fixed price with incentive contract

Answer 35

A contract provides for both buyer and supplier to share the costs and benefits

Answer 36

A contract is used when the buyer is not sure of its production or operation schedule

Answer 37

``` Indefinite delivery/quantity Task order and delivery order Time and material contract Blanket agreement Requirement contract ```

Answer 38

Generally provide payment for labor and overhead at a given rates per hour, plus sales price of parts, supplies and material. Most automobiles are repaired under time and material contract

Answer 39

The dealer is granted the right to purchase, sell, distribute or service the supplier merchandise

Answer 40

Master service agreement : tied to Maintanance of capital equipment Professional service agreement: contract for legal, accounting, auditing Maintanance agreement : contract for preventive Maintanance Performance based agreement : contract for services in which outcomes or timelines are specified in terms

Answer 41

``` Patent Copyrights Trademark Licensing Confidentiality ```

Answer 42

A monopoly created by law that gives the patent holder the sole right to make, use and sell the patented item as well as the right to prevent others from doing so for a set amount of time

Answer 43

Right to the author of literary, artistic or audiovisual work the exclusive right to publish, reproduce, display, sell, perform, transmit or prepare derivative works for the original works

Answer 44

A name, symbol or design registered with the country trademark office for exclusive use in association to a given product or service

Answer 45

A license issue that grant the licensee the right to use the protected property. Often one time fee or an on going royalty

Answer 46