Initiating the Project-Problem Set #13

TYPES OF CONTRACT EXERCISE

Instructions: Within the context of your Week 2 Business Case project you will address and identify the different types of contracts that are available for supply chain management.

You will copy and paste the Business Case.

For each of the six (6) contract types below you will provide a description of each contract type (based on the weekly readings and material from the textbook) and then identify where each of the contracts could be utilized within your project. These need to be specific examples and explain why the specific contract type would be ideal for these supplies (goods or services). There is no word minimum but each should cover the required material and provide a logical analysis of the specific information sought.

Business Case:

News source (APA reference): HUll, D. (2018, February 15). Tesla Model 3 production lags as Gigafactory hits delays. Retrieved from https://www.industryweek.com/supply-chain/article/22024472/tesla-model-3-production-lags-as-gigafactory-hits-delays

Web address: Web address: www.tesla.com

City: Fremont, California 

Tesla company took a step higher to come up with electric vehicles. They wanted to bring something different to the industry and ensure that people experience something new in their lives. The company started this project in 2008 in Fremont, California. The cost of manufacturing the car is $28000 whereby the size of the of the project will have a front rear output of 615Kw. The battery of the car will have a capacity of 100kWh of lithium ion. One of the key things with the project is that it will cost one, at least one hour to supercharge the car.

Fixed-Price Contracts

Firm-Fixed-Price (FFP) Contract:

Fixed-Price-Incentive-Fee (FPIF) Contract:

Fixed-Price-Economic-Price-Adjustment (FP-EPA) Contract:

Cost-Reimbursable Contracts

Cost-Plus-Fixed Fee (CPFF) Contract:

Cost-Plus-Award-Fee (CPAF) Contract:

Cost-Plus-Incentive Fee (CPIF) Contract: