Contracts

· Defense Contracting Environment

· Elements of a Contract

· Offer and acceptance

· Terms and conditions

· Consideration

· Competent Parties

· Lawful Purpose

· Certainty of Terms

· Form Required by Law

· Rules

· Legislative Branch

· Makes the rules

· Executive Branch

· Enforces the rules

· Judicial Branch

· Interprets the rules

· Rules

· Laws

· Regulations

· Policies

· Instructions

· Un-written rules

· Rules

· Agents and Authority

· An agent is the representative of another

· Contracting Officer

· Program Manager

· Contracting Officer Representative

· COTR

· Actual Authority

· Apparent Authority

· Government as a Customer

· Monopsony

· Public Money

· Cyclic Funding

· Create Technology

· Sovereignty

· Personnel

· No Profit Motive

· Government as a Customer

· Social Programs

· Many Players

· Short Term relationships

· Audits

· Defense Industry

· Ologopoly

· Cyclic

· Lack of Planning

· No industrial Planning

· High Concentration

· Dependence on Foreign Sales

· Entry & Exit Barriers

· Entry Barriers

· Unique Environment

· High Capital Investment

· Engineering/Scientific Requirements

· Large Cash Reserves

· Specialized Reporting

· Detailed Federal Regulations

· Security Clearances

· Political Considerations

· Exit Barriers

· Government R&D

· Large Overhead

· Specialized Equipment

· Low-Bid Awards

· Specialized Labor

· Specialized Marketing

· Military Specifications

· Economic Market Theory

· Homogeneous Product

· Many Buyers and Sellers

· Freedom of Entry/Exit

· Perfect Information

· Individuals Have Insignificant Influence

· No Collusion

· Maximization of Utility/Profit

· Systems Theory

· Buyer-Seller Coupling

· Loose (Market Bargaining)

· Tight (Cooperative Relationship)

· Full (Vertical Integration)

· Components

· Suppliers in Supply Pool

· Credible Commitment

· Dispute Resolution

· Communication Flow

· Transaction Cost Economics

· Objective

· Economize on

· Transaction Cost

· Production Cost

· Socioeconomics

· Small Business Preferences

· Goals

· Set-asides

· Small Business Administration

· Certificates of Competency

· 8a programs

· Equal Access to Justice

· Prevailing party

· Other Programs

· Labor Surplus

· Nondiscrimination Requirements

· Walsh-Healey Act (wages)

· Buy American Act

· Environmental Protection

· Drug-free workplace