Kim Smith Inc Case Study Solution

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Kim Smith Inc. (KSI) functions under HUB Zone program and has won the Navy contract for flooring services and is ready to bid on a contract, within the bidding process a type of payment must be selected. KSI would benefit most from a performance based contract since the company is new to government contracting, and there is a lot of work to be completed. According to the FAR performance-based payments (PBPs) are a customary method of contract financing that may be available under fixed-price contracts, except for contracts awarded using Sealed Bidding procedures. PBPs differ from the more traditional progress payments based on costs because these contract financing payments are made on the basis of the contractor’s achievement of objective, …show more content…
By offering a discounted price in order to use provided materials KSI may be able to give the Navy both a better end project and better pricing. By negotiating with the Navy KSI could possibly come up with an agreement that benefits both parties. Suggestions of key terms could include; leasing, renting or even a reduced price contract for the use of the equipment. By convincing the Navy that the time and money will be saved by allowing use of the needed equipment KSI will be more likely to gain use of the items. It is important that if use is granted there is a written agreement that states how, when and where the use of the equipment will take place. While the Navy may be hesitant to allow use of its equipment initially KSI should be sure to mention that their equipment could be used in conjunction with the provided equipment to provide quicker and better results when possible. Any maintenance and upkeep needed while using the equipment should fall to KSI, but be provided by an approved vendor to ensure no …show more content…
An untrained inspector, who does not follow a good procedure or who makes poor decision calls, might make big mistakes. The total of detail to be included in the quality control and inspection procedures are essential and should be adapted according to the complexity, size and duration of the project. Clear statements are necessary to ensure that ambiguity and assumptions are minimized so that everyone understands what controls are in place for the smooth progression of the project. KSI has the responsibility to define and document its policy and objectives for, and commitment to, quality. KSI is responsible for ensuring that its policy is understood, implemented, and maintained at all levels of the organization.
There are several phases that KSI must adhere to within quality control and inspection procedures. The preparatory phase includes; reviewing all contract requirements, ensuring compliance of component material to the contract requirements, coordinating all submittals including certifications, ensuring capability of equipment and personnel to comply with the contract requirements. The Startup phase includes reviewing the contract requirements with personnel who will perform the work, inspecting startup of work, establishing standards of workmanship and providing training as

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