DoD equipment repair/upgrade contract agents did not identify & track correct spare parts unit prices, used inaccurate supplier authorisation procedures, did not utilise quote specialists for making cost-effective purchases b/c did not obtain best prices in sole-source contract scenarios, making assumption in contract terms that spare parts costs were trending up when calculating negotiation baselines for successful missions.

DoD equipment repair/upgrade contract agents did not comply with rules for undefinitised contract actions, did not utilise quote specialists to assess availability of spare parts, identify unallocable costs or justify escalation rates for multi-year contracts, were not concerned with competition or substitute spare part suppliers in sole-source contracting scenarios where contract terms require more attention to realise mission success.

DoD equipment repair/upgrade contract agents did not negotiate accurate spare part deals for successful missions, had problems with different units of issue while contractor switches items from buy to make at higher prices w/o justification for follow-on contracts with suppliers & also did not utilise quote specialists to evaluate or implement procedures assessing contract terms to effectively use sole-source contractor evaluation to break out & compete spare parts buys.

DoD equipment repair/upgrade contract agents did not employ appropriate buy techniques & ended up agreeing to purchase excess levels of spare parts at higher prices from suppliers at the expense of mission success, incorrectly applying commercial item definitions & higher price offsets to fit sourcing contract scenario b/c did not document contract terms & did not utilise quote specialists to escalate negotiations with under-performing sole-source contractors or obtain best available spare part prices & procure economic order quantities.

DoD equipment repair/upgrade contract agents did not utilise quote specialists to identify scenarios where contractor inappropriately charged unpriced spare parts to contract at increased unit price resulting from inadequate supplier oversight of sole-source billings, used invalid exceptions & incomplete contract terms assessments as basis for not obtaining certified cost/pricing information for spare parts critical to successful missions.

 


Comments

06/07/2016 3:48am

Thanks for great info I was searching for this details

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07/13/2016 5:55pm

I see the problem here. But was the problem with the DoD Contract agent resolved? I hope it was. Basing from this article, this problem caused quite a lot of trouble. Hopefully it doesn't happen again in the future.

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08/09/2016 9:23am

Well, thanks for telling that. I appreciate this informative article very much.

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