Federal Contracting Activities and Contract Types

The Department of Defense plans to issue a $1,000,000 government contract to a company that specializes in the manufacturing of drone navigation systems. As a result, a government auditor has been contacted to examine the operational data VectorCal and your company in order to decide which company should win the government contract.

Note: You may create and/or make all necessary assumptions needed for the completion of this assignment.

• In order to complete this assignment, refer to Assignment 1 where you discussed VectorCal and your company.
• You may use the Government Policies Regarding Profit and Preferred Measure and Processing of Equitable Adjustments Case Analysis [DOCX] to assist you with formatting and completing the paper.

Assignment Instructions

Write a 6–8 page paper in which you:

1. Create a 1-page overview of the history of VectorCal and Universal Drones Inc., the companies competing for the government contract.
2. The government is deciding on which contact type it will offer. Discuss firm fixed-price and cost reimbursement contracts and what the preferred preference would be for each company when the government decides on a type. Justify the response.
3. The government decided that it will offer a firm-fixed price contract for this project. Discuss the expenses in detail for each company. The following should be included in these costs:
   • Direct Costs.
     
     • Labor.
     • Operating.
   • Indirect Costs.
     
     • Labor.
     • Operating.
4. Suggest which company should be awarded this government contract based on the data that was presented for each company. Next, provide three to five reasons to support your stance.
5. Use at least three quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources.
6. The Strayer University Library is a good source for quality resources.

Your assignment must follow these formatting requirements:

• This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

• Recommend a company for a government contract award based on history and cost considerations related to production.