Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics
Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2015. In conjunction with the Leaders for Global Operations Program at MIT.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2015
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| Online Access: | http://hdl.handle.net/1721.1/98981 |
| _version_ | 1811079579013480448 |
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| author | Hahs, David Allen |
| author2 | Deborah Nightingale and Roy Welsch. |
| author_facet | Deborah Nightingale and Roy Welsch. Hahs, David Allen |
| author_sort | Hahs, David Allen |
| collection | MIT |
| description | Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2015. In conjunction with the Leaders for Global Operations Program at MIT. |
| first_indexed | 2024-09-23T11:17:15Z |
| format | Thesis |
| id | mit-1721.1/98981 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T11:17:15Z |
| publishDate | 2015 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/989812022-01-27T21:36:25Z Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics Hahs, David Allen Deborah Nightingale and Roy Welsch. Leaders for Global Operations Program. Leaders for Global Operations Program at MIT Massachusetts Institute of Technology. Department of Aeronautics and Astronautics Sloan School of Management Sloan School of Management. Aeronautics and Astronautics. Leaders for Global Operations Program. Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2015. In conjunction with the Leaders for Global Operations Program at MIT. Thesis: S.M., Massachusetts Institute of Technology, Department of Aeronautics and Astronautics, 2015. In conjunction with the Leaders for Global Operations Program at MIT. Cataloged from PDF version of thesis. Includes bibliographical references (pages 51-52). Aerospace Company X (ACX) is a designer and manufacturer of advanced aerospace systems and its primary customer is the United States Government (USG). In order to reduce cost and minimize risk, both parties have embraced a multi-year contracting model in which productions agreements are signed for up to five-year periods. This allows for significant cost savings over single-year contracts while allowing for predictable production levels for ACX and its suppliers. At the time of this research, the company was soliciting bids from suppliers for the next five-year multi-year contract. Since this is a sole-source situation, ACX must substantiate all costs to justify that the pricing is fair and reasonable. Costs of purchased hardware are substantiated through three primary means: competition, commerciality, and cost-price analysis. Competition is preferred because the pricing can be justified by free-market forces. However, due to intellectual property rights or unique capabilities, suppliers are often contracted as sole-source. The supplier then can claim commerciality (i.e. the part is for sale commercially) or submit for a complete cost review of material, labor, and overhead rates. In some cases the supplier will not release this data to ACX and a government agency performs the review. The success of the cost substantiation phase hinges on getting complete and accurate data from suppliers in a timely manner. This thesis explores the challenges of obtaining cost data from suppliers and proposes recommendations that can be applied to general supplier management situations. First, a metric of proposal adequacy is developed and used to score the adequacy of each received bid. These scores are then analyzed to determine if there is any correlation with the existing enterprise ACX supplier rating system. Finally, recommendations for process improvements are made which focused on communication, IT systems, and standard work. by David Allen Hahs. M.B.A. S.M. 2015-09-29T18:56:38Z 2015-09-29T18:56:38Z 2015 2015 Thesis http://hdl.handle.net/1721.1/98981 921155889 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 52 pages application/pdf Massachusetts Institute of Technology |
| spellingShingle | Sloan School of Management. Aeronautics and Astronautics. Leaders for Global Operations Program. Hahs, David Allen Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title | Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title_full | Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title_fullStr | Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title_full_unstemmed | Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title_short | Predicting adequacy of supplier responses for multi-year government contracts based on supplier performance metrics |
| title_sort | predicting adequacy of supplier responses for multi year government contracts based on supplier performance metrics |
| topic | Sloan School of Management. Aeronautics and Astronautics. Leaders for Global Operations Program. |
| url | http://hdl.handle.net/1721.1/98981 |
| work_keys_str_mv | AT hahsdavidallen predictingadequacyofsupplierresponsesformultiyeargovernmentcontractsbasedonsupplierperformancemetrics |