Contract administration involves those activities performed by government officals after a contract has been awarded to determine how well the government and the contractor performed to meet the requirements of the contract. Review the GAO Testimony: "Contract and Project Management Concerns at the National Nuclear Security Administration and Office of Environmental Management" GAO-09-406T, March 4, 2009
1. How would one explicate and evaluate the importance of roles and responsibilities of contracting officers and administrator?
2. How would one explicate and evaluate the importance of improving methods of creating contract schedules.?
3. Utilizing the information in the situation to develop a policy that explains the role that the contract officer should have played in the dealings between the government and the contractor from the time the contract was awarded through completion of the work?
4. Compare the contract administration and project management of the National Nuclear Security Administration and the Office Of Environmental Management and recommend how each agency could have improved its effectiveness in the areas of contract administration and project management.© BrainMass Inc. brainmass.com October 17, 2018, 4:43 am ad1c9bdddf
1. In reference to explicating the importance that contract administrators and officers have in the process, look no further than the GAO's declaration within the report of nearly 14 billion in added expenses for the projects as well as 45 additional years for the time schedules initially posited by the contract officers to the administrators. Without competent effective contract administration and officers in control of all the sub-contractors that are affiliated with the project, the wasting of taxpayer funds and time is inevitable. Therefore, extracting from this report the importance of these two players within the grand scheme is not to be underestimated as malfeasance on their behalf has resulted thus far in billions of dollars in wasted money or money that initially was not given for the bid (GAO, 2009).
2. When dealing with the explication of creating a credible and enforceable schedule the GAO has deemed this to be of vital and critical importance ...
The solution discusses contract administration and change issues.
Problem #1: Loanable Funds Market
Consider the initial condition is one where the government is running a deficit of $100. Now consider what would happen in the market for loanable funds if the government decides to raise net taxes by $150 to eliminate the deficit - and start running a surplus. Draw the market for loanable funds and show graphically how investment and savings will change in response to the change in taxes. Explain about "crowding" out...is it occurring now? Why or why not?
Problem #2: Unexpected Inflation
Suppose that Nick lends Suzanne $1000 for a year. They both expect the inflation rate to be 3%, and therefore decide on a nominal interest rate of 7%. The inflation rate is actually only 1%.
a. At the end of the year, how much money does Suzanne owe Nick?
b. Who does the unexpectedly low inflation benefit?
c. Explain how wealth has been redistributed due to the unexpected inflation.
Problem #3: Fiscal Policy
The government proposes a tax cut to stimulate the economy. They are not going to reduce spending to compensate for the tax cut.
a. Consider the tax cut is $200 billion and assume the MPC = .8. What would all the effects be under the classical model.
b. Now consider how this tax cut (of $200 billion) would affect GDP (MPC = .8). What is the increase in GDP? What assumptions must be made?
c. Evaluate - is the tax cut good in the short run? When would it be good and when would it be bad. Evaluate based on different possible initial conditions for the economy and include what happens to GDP and inflation.
Problem #4: Fiscal vs. Monetary Policy
The FED wants to keep inflation low and therefore will attempt to follow that goal. If there is a recession and the government attempts to stimulate the economy through fiscal policy, but the FED is following a policy of keeping inflation at a low level...what will be the result. Be specific and include graphs as needed.
Problem #5: Inflation Again.
You own a hammer store and make a contract to supply a box of hammers every year for 5 years to a construction company at $100 each year (i.e. you make hammers and give the hammers to Joe's construction company in exchange for a $100 bill). However, the actual rate of inflation is less than you anticipated. Is this contract really good or really bad for you? Why?
Problem #6: Loanable Funds Market
Consider the market for loanable funds. The government starts off running a deficit of $500 billion. A change in government takes place and the new administration decides that it is best for the people to reduce the government spending. Thus the administration reduces the government purchases by $400 billion. (Assume the net taxes are unchanged.)
Draw the market for loanable funds. Clearly label the demand and supply. Label the initial equilibrium - including what the initial level of investment and the initial level of savings are (note: these will not be numbers - rather label them I0 and S0). Then explain what shifts and why. Label the new equilibrium. What is the new level of Investment and Savings? What has happened to the interest rate?