Print Advertising Examination 3 Flashcards
Contracting officers of 1 company should acquire and use existing fundamental agreements of one other company to the maximum practical extent. The contracting officer shall assign a precedence score to the letter contract whether it is acceptable underneath 11.604. The contracting officer shall insert the supply at 52.216-31, Time-and-Materials/Labor-Hour Proposal Requirements-Commercial Item Acquisitions, in solicitations contemplating use of a Commercial Time-and-Materials or Labor-Hour contract. The contract file shall also identify the premise for using an exception to the fair alternative course of (see paragraph of this section). Identification of the company and the contracting activity, and particular identification of the document as a “Justification for an Exception to Fair Opportunity.”
- Minimum requirements for the content material of D&F’s required by this half are specified in 1.704.
- producers must keep away from creating a value competitive parity debate.
- If you are situated exterior of the territory of the United States, the parties agree that the United Nations Convention on Contracts for the International Sale of Goods won’t govern this Agreement or the rights and obligations of the events beneath this Agreement.
- Therefore, acceptable Government surveillance of contractor performance is required to give reasonable assurance that efficient methods and efficient price controls are being used.
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This estimate isn’t a representation to an offeror or contractor that the estimated amount might be required or ordered, or that situations affecting requirements might be secure or regular. The contracting officer may obtain the estimate from records of previous requirements and consumption, or by different means, and may base the estimate on the most present information out there. Delivery-order contract means a contract for supplies that does not procure or specify a firm quantity of supplies and that gives for the issuance of orders for the delivery of supplies during the period of the contract. The clause at 52.216-10, Incentive Fee, is prescribed in sixteen.307 for insertion in solicitations and contracts when a cost-plus-incentive-fee contract is contemplated. The clause at fifty two.216-7, Allowable Cost and Payment, is prescribed in sixteen.307 for insertion in solicitations and contracts when a cost-plus-incentive-payment contract or a cost-plus-award-payment contract is contemplated. See sixteen.301 for necessities relevant to all value-reimbursement contracts, to be used at the side of the following subsections.
Premium Decoy Pricing
The contracting officer shall use firm-mounted-price or fastened-worth with economic value adjustment contracts when buying industrial items, except as supplied in 12.207. Period of efficiency or size of production run. In instances of financial uncertainty, contracts extending over a comparatively long interval may require financial value adjustment or price redetermination clauses.
Skimming strategy tends to be efficient in p-delicate markets because it discourages competitors from entering the market. customers extra sensitive to changes in worth of a product. A few customers are asked to check out a new video game that has not yet been released yet. The introduction stage of the product life cycle is characterised by adverse or low profits. This entails an evaluation of the company’s product line, its tradition, targets and objectives, and image in the market.
Switching Costs Effect – the higher the product-specific investment a buyer must make to switch suppliers, the less value-sensitive that buyer is when selecting between alternatives. Difficult Comparison Effect – consumers are less sensitive to the price of a recognized or more reputable product when they have difficulty evaluating it to potential alternate options. Reference Price Effect – buyer’s worth sensitivity for a given product increases the upper the product’s price relative to perceived alternate options. Perceived options can differ by buyer segment, by event, and other factors. The aspiration of shoppers and the feeling of treating themselves is the key issue of buying a great or service. Consumers are looking for fixed change as they’re constantly evolving and moving.
Businesses often set prices close to marginal cost during times of poor sales. If, for instance, an item has a marginal cost of $1.00 and a standard selling value is $2.00, the agency selling the item may want to decrease the price to $1.10 if demand has waned. The enterprise would select this approach as a result of the incremental revenue of 10 cents from the transaction is healthier than no sale at all. The problem with limit pricing as a method is that when the entrant has entered the market, the quantity used as a menace to discourage entry is now not the incumbent agency’s best response. This signifies that for restrict pricing to be an effective deterrent to entry, the threat must in some way be made credible.