Gov. Contracting Discussions and responses (2 each)

Learning Goal: I’m working on a business discussion question and need an explanation and answer to help me learn.

Question 1

You likely realize that it is important to recognize there are unique aspects of contracting with the Government as compared to contracting with the firms or individuals in the private sector. In developing pricing skills, Government Contracting Professionals must recognize these differences, and learn as much as possible about both Government and commercial practices through market research. What are a few of the unique systemic and cultural differences of contracting with the Government compared to the commercial sector? Why do these differences exist? What are some cost “drivers” that increase the prices paid by the Government for similar items that can be purchased by other buyers? What are a few similarities and differences in products sold to the Government as compared to the commercial market?

Question 2

This discussion question is about the Consumer Price Index (CPI). You will need to find a table of the CPI for this assignment. It really doesn’t matter which one you use (base years are reference points), so long as you use the same base year for your comparison. For the “current year,” you can use 2017 or 2018.

Please post the following:

  1. Pick an item that was available when you were born and is still available today. Tell us something about the item (e.g., its use).
  2. Look up and post the price of the item during the year you were born.
  3. Look up and post the price of the item today.
  4. Calculate the “real price of the item today and the year you were born. (This means express each price in its value in the base year.)
  5. Calculate the “price today” that would be equivalent to the amount of purchasing power the item’s price represented in the year you were born. (If the item cost $1.00 in 1980, what is the equivalent in “today’s dollars?” It will be something greater than $1.00 since a $1.00 today is worth less than a $1.00 was in 1980).
  6. Explain whether or not the item is relatively more or less expensive today than it was in the year you were born. Are there any quality changes or other reasons that the price may be different today (in real terms) than it was during the year you were born? Use your imagination and try to make this fun.
  1. Question 3 How do contract type selection and contract financing matters affect risk to both parties? Why might one party accept more risk than the other?

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