Print Advertising Exam Three Flashcards

Print Advertising Exam Three Flashcards

The established ceiling price could also be adjusted only if required by the operation of contract clauses providing for equitable adjustment or different revision of the contract worth under stated circumstances. The contracting officer shall, when contracting by negotiation, insert the clause at fifty two.216-5, Price Redetermination-Prospective, in solicitations and contracts when a hard and fast-worth contract is contemplated and the situations specified in sixteen.205-2 and sixteen.205-three via apply. Adjustments based on cost indexes of labor or material.

  • , appendix VIII, the contracting officer shall use the clause at 52.216-7 with its Alternate IV.
  • When a cost-reimbursement contract is being thought-about and all current or past experience with the contractor has been on a fixed-price foundation.
  • Many years ago Honda’s Accord and Ford’s Taurus have been the top two promoting automobiles within the United States.
  • It is essential that the Government and contractor agree explicitly on the impact that contract modifications (e.g., pursuant to the Changes clause) will have on performance incentives.

The contracting officer should exercise care, in establishing efficiency standards, to recognize that the contractor shouldn’t be rewarded or penalized for attainments of Government-furnished components. Performance tests and/or assessments of labor performance are usually essential in order to decide the degree of attainment of efficiency targets. Therefore, the contract must be as particular as attainable in establishing take a look at standards and performance standards .

Example Of The 5 Ps Of Selling

This value might be paid for satisfactory contract efficiency. Award fee earned will be paid in addition to that mounted price. When the contractor assumes a substantial or major share of the cost accountability underneath the adjustment formula, the target profit ought to reflect this responsibility. In mounted-worth incentive contracts, billing prices are established as an interim foundation for cost. These billing prices may be adjusted, within the ceiling limits, upon request of either get together to the contract, when it turns into apparent that last negotiated value shall be substantially completely different from the goal value.

No incentive contract may present for other incentives with out additionally offering a cost incentive . The two basic categories of incentive contracts are fastened-price incentive contracts (see 16.403 and sixteen.404) and value-reimbursement incentive contracts (see 16.405). Since it is often to the Government’s advantage for the contractor to imagine substantial value duty and an applicable share of the cost danger, mounted-price incentive contracts are most well-liked when contract costs and performance necessities are fairly sure. Cost-reimbursement incentive contracts are subject to the general limitations in sixteen.301 that apply to all value-reimbursement contracts. A fastened-worth incentive contract is a set-price contract that gives for adjusting profit and establishing the final contract price by a formula based mostly on the relationship of ultimate negotiated total price to total target price. Fixed-value incentive contracts are coated in subpart sixteen.4, Incentive Contracts.

A natural monopoly is a market the place a single seller can provide the output due to its dimension. A pure monopolist can produce the whole output for the market at a cost lower than what it might be if there were a number of companies operating out there. A pure monopoly happens when a agency enjoys extensive economies of scale in its manufacturing course of.

207 Agency

The contract shall specify separate fastened hourly rates that embody wages, overhead, basic and administrative expenses, and revenue for each class of labor (see sixteen.601). Actual price for materials (besides as provided for in 31. and ). Transferred between divisions, subsidiaries, or affiliates of the contractor under a typical management.

Therefore, GSA rules and the coverage for the Federal Supply Schedule program in subpart 8.four and half 38 take priority over this subpart. This subpart prescribes insurance policies and procedures for making awards of indefinite-supply contracts and establishes a choice for making multiple awards of indefinite-amount contracts. No value-plus-incentive-charge contract shall be awarded except all limitations in sixteen.301-three are complied with. Incentive arrangements on supply should specify the application of the reward-penalty construction in the occasion of Government-triggered delays or different delays past the management, and without the fault or negligence, of the contractor or subcontractor. Technical performance incentives may involve quite a lot of particular characteristics that contribute to the overall performance of the end merchandise.

the five cs of pricing include all of the following except

See subpart 19.5 for procedures to set aside part or elements of multiple-award contracts for small companies; to order one or more awards for small enterprise on multiple-award contracts; and to put aside orders for small companies under multiple-award contracts. Delivery incentives must be considered when enchancment from a required supply schedule is a major Government objective. It is essential to determine the Government’s main goals in a given contract (e.g., earliest possible delivery or earliest quantity manufacturing).

Differential Pricing

An observation made of oligopolistic enterprise behavior by which one firm, often the dominant competitor amongst a number of, leads the way in determining prices, the others quickly following. The context is a state of limited competition, during which a market is shared by a small variety of producers or sellers. There are three different types of worth discrimination which revolve around the identical technique and similar goal – maximize profit by segmenting the market, and extracting further client surplus. Premium pricing is the apply of keeping the worth of a services or products artificially high in order to encourage favorable perceptions amongst patrons, primarily based solely on the value. The practice is meant to exploit the tendency for patrons to assume that costly objects take pleasure in an distinctive popularity, are extra reliable or desirable, or represent exceptional high quality and distinction.

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Robin Montgomery

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