Paper Example on Contract Cost and Documentation for the Navy

The company must conduct proper analysis of the prices for any products and services offered to the clients. Moreover, it must adequately analyze factors such as possible markets fluctuations and risks. Notably, the firm must cover all the potential costs in its pricing strategies such as quality of raw materials, staff salaries, and calculated market risks. After winning the contract for US Navy of offering flooring services, the entity must embark on an adequate cost strategy that would ensure timely delivery of all the items meant for repair services. Notably, the Navy selected the company because of the fair price and patent quality in delivering flooring service. Also, our main challenger bore out of the competition citing companys patent in production of inclusive floor equipment. Furthermore, the company quoted current flooring materials compared to outdate ones that were owned by the Navy. As a result, the organization performed better during the negotiation stage and was awarded the contract to offer floor furnishing services.

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First, the business must consider the terms and conditions of payment. Markedly, the three main types of payments include progress payment, performance-based payment and partial payment (Rendon, 2015). Because the contract deals with the production of unique items, it has a high level of competitive advantage; thus, requires maximum quality control approaches. Moreover, the firm can use performance-based payments in which it can be compensated for work performed (Duncan & Hartl, 2015). Also, the venture can use Progress Payments Based on Costs through which the Navy will compensate for the cost incurred. Notably, the company applies fixed price contract, hence, only performance based payment is the most suitable mode of compensation (Duncan & Hartl, 2015). Furthermore, the business can define the appropriate mechanism of reimbursing subcontractor under performance-based payment.

Second, the entity must consider key terms of contract management to use in acquiring the Navys equipment. For instance, the company should evaluate patent infringement objection, quality control mechanism, and the appropriate definition of the contract cost (Duncan & Hartl, 2015). What is more, the firm must provide all the necessary documentation for the contract as the evidence for the transaction, thus, creating cooperation which satisfies all the sides of the contract. The venture should give an assurance that it will deliver quality and tested flooring services. The floor furnishing equipments must possess some of the basic elements such as water resistance, adhesive properties, and bumpiness.

The contract documentation plays crucial roles in cost determination. Notably, the company must possess the necessary documentation which outlines the scope of the work, the existing floor plans, existing cross sections, and the construction details (Rendon, 2015). To elaborate, the firm must identify the expected damaged locations of the walls that need to be replaced and locate the places where the demolished materials will be stored. Furthermore, the elevations must define the existing cladding within the expected area of damage and highlight the changes in appearance and location of the construction details.

Quality assurance plan is a requirement by US law for all the government contracts. The quality plan sets the procedures and guidelines that must be followed to ensure that the company attains the required standard of performance and appropriate service delivery. The entity should develop and submit the quality control plan to the relevant authority. The plan should define the systematic methods that are employed to monitor performance of the flooring company (Rendon, 2015). Moreover, the quality assurance plan must provide the means of evaluating whether the company is achieving the quality level stated in Performance Work Statement. In other words, the plan must develop appropriate communication channels and frequencies, and perform risk identification, analysis and response.

Notably, the government requires the contractors to certify the work upon completion before they present it for acceptance (Rendon, 2015). The agent must carry out inspection of the flooring furnishings at different stages of the construction to get the Navys approval and acceptance. For instance, the business can conduct punch out inspection which occurs near the completion of various parts of the work. Secondly, the company must conduct pre-final inspection to verify if the flooring furnishes is complete and ready for use. The inspection team must include members from the public works sector who will represent the government during the inspection period. Lastly, the firm must conduct final acceptance inspection and the committee should consist of patent specialists, the primary contractor personnel, representatives of the sub Contractor Company and top management officials from the Navy (Rendon, 2015). Based on the results of the pre-final inspection, officials from the Navy must set the schedule for the acceptance inspection. The Contractor must comply with all the requirements of the inspection as set by the Navy.

The companys patent in specialty coating guarantees the maximum assurance for survival of the floor. The organization plans to use dated devices which provide sufficient and lasting solutions to outdated equipment used by the Navy. For instance, our company plans to use Antimicrobial parylene coatings and methods for their vapor-phase deposition. This would improve the durability of the floor with regards to sustainability and quality assurance (Rendon, 2016). Furthermore, the company can use conformal courting apparatus which provides the basis for depositing materials on the floor. The company as well can use Fluorinated paracyclophane compounds. Notably, the compound is usually used as a precursor dimmer which produces flexible polymeric coatings. Lastly, the company possesses spray coatings devices which consist of a gantry coupled to the frame (Rendon, 2016). The Navy is unlikely to have the patent infringement objection for the use of the companys coating. First, the new apparatus used by the company in coatings are dated and unlikely to cause any harm to the floor. Second, the inspection of the equipments can give assurance to the Navy about the durability of the coatings.

According to Federal Acquisition Regulation (FAR), the contract closeout occurs when the contract has met all the administrative actions, made of the payments, and settled the disputes. After the completion of fixing the coatings for the Navy, the company must request for payment and call for the contract closeout (Rendon, 2015). Notably, the company must ensure that the deposition of used materials is completed; they receive patent report clearance, settle all disallowed or interim costs, settle all the subcontracts, and submit all the subcontracting plan report. The timely and quick closeout of the contract will save the contractor and the Navy administrative cost. Therefore, the parties can agree to facilitate fast closeout, thereafter, carryout follow up activities on the contractor past performance evaluation.

In brief, contract cost and documentation for the flooring services of the Navy must follow certain rules and regulations. For instance, the company must identify the payment methods which include progress payment, performance-based payment and partial payment. Second, the company must understand the terms of operation such as patent infringement objection, quality control mechanism and the appropriate definition of the contract cost. Moreover, the company must use appropriate documentation and define the appropriate patent specialty to the Navy. Lastly, the parties of the contract must explain the content for the closeout.

References

Duncan, M. E., & Hartl, R. (2015). Multiple Award, Multiple Order Contracts-The Future of Navy Surface Maintenance Procurement. Naval Postgraduate School Monterey United States.

Rendon, R. G. (2015). Benchmarking contract management process maturity: a case study of the US Navy. Benchmarking: An International Journal, 22(7), 1481-1508.

Rendon, R. G. (2016). Assessment of Navy contract management processes.