HUB AEROSPACE

QUESTIONS:
1. Evaluate each of Hub's contentions. Do you agree or disagree? Why?
2. What should Mr. Brosky do now?

DELAY CLAIMS

QUESTIONS:
1. How would you handle such a claim? Discuss each of the claimed delays and claim for additional compensation.

SELECTION OF CONTRACT TYPES

Case 1

QUESTIONS:
1. Do you agree or disagree with Mr. James in this case?
2. What type of contract would you attempt to negotiate for the proposed procurement?

Case 2

QUESTIONS:
1. What type of contract should Mr. Hiller attempt to negotiate? With whom? QUESTIONS:

Case 3

QUESTIONS:

1. Do you agree or disagree with Mr. Smith's suggestion? Why?

Case 4

QUESTIONS:
1. What fee would you attempt to negotiate for this contract?
2. Would your answer change if your research indicated the other sources for similar work have usually been awarded CPFF contracts carrying fees of approximately six percent?

Case 5

QUESTIONS:
1. If you were Mr. Sanders, what type of contract would you attempt to negotiate for the proposed procurement?
2. What type of contract would you attempt to negotiate for the proposed equipment, assuming you were unable to effect any reductions in Electrosonics' quotation?
3. What type of contract would you attempt to negotiate for the proposed procurement?

CHANGE ORDER PRICING

QUESTIONS:
1. Is the contractor's argument a reasonable one?
2. What should the buyer do?
3. Do you agree with Mr. Foster's approach, viz.; using the labor rate used in the original proposal to price out the work associated with the change ($27.50 versus $30.00)?
4. Would you advocate using the same approach if the work required by the change was to be performed by a lower paid class of workers than originally estimated ($27.50 versus $22.50)?
5. If a composite labor rate, developed on the basis of the overall mix of work on the entire contract, was used in the original estimate, should the same composite rate be used in pricing the work associated with the change?
6. Is the contractor entitled to charge the 3 days unused downtime to the cost of the change?
7. Assume that he paid the workers affected $30.00 per hour and used them on work for which he normally paid only $20.00 per hour. Could he charge the difference to the cost of the change?
8. Should a learning curve be applied to work affected by the change?
9. Is the contractor entitled to claim the costs associated with the affect of the change on the rate of improvement for the changed work for the units on which none of the changed work has been performed?
10. Is the contractor entitled to recover costs associated with the affect of the change on the rate of improvement of the work not directly affected by the change?

11. Is the contractor's approach a reasonable one?
12. Assuming the buyer accepts the contractor's contention, should he require that the contractor furnish an improvement curve to substantiate his claim?
13. Do you agree wills this approach of the cost analyst?
14. Assume that the situation was reversed, viz.; that the contractor had used a rate of 180% in his original proposal and his rate for the period of performance of the change was 110%, would you approach the matter any differently?
15. Do you agree with this approach?
16. If the situation was reversed, viz.; the contractor had used a G&A rate of 15% in his original proposal, and his anticipated G&A rate during the period of performance of the changed work was 6%, would you approach the matter any differently?
17. Do you think a contractor should receive the same rate of profit on costs associated with a change as on the original proposal?
18. Under what circumstances might he get less?
19. Under what circumstances might he get more?

BOTTOME LINE NEGOTIATING

QUESTIONS:
1. Evaluate and discuss Mr. Forbes' counteroffer to Mr. Jones.

2. What should Mr. Jones do? Why?

Attachment:- Cases.rar