Negotiations with the Aerospace Division of Aircraft Corp. were not going well.

Question

Negotiations with the Aerospace Division of Aircraft Corp. were not going well. Aerospace and the NASA negotiator had agreed on estimated cost and most of the other conditions of the prospective $5 million contract for development of a new weather satellite; the controversy revolved around the Rights in Inventions and Basic Data causes, and the fee that Aerospace desired.

Aerospace was adamant in refusing to give up rights to inventions and data considered proprietary that might arise out o fits research effort. The company maintained that it would supply NASA with a workable satellite, according to the work statement and specifications, but no inventions and no data. The negotiator insisted that NASA must have the inventions and data in the Government's best interests, and that no final contract could be written without the required clauses.

In addition, NASA was interested in a CPIF contract with a fee range of 3% to 12%, based on multiple incentives of performance, delivery, and cost. Aerospace refused to consider this type of arrangement because of the complexities and unknowns involved in developing the spacecraft. They felt that they were entitled to a 10% fee on a CPFF basis because of the high risk factor inherent in the job.

Mr. Smith, the cognizant engineer, who was sitting in on the negotiation, became more disturbed by a minute. Finally, said: “Lets write a letter contract to include all the things we've agreed on, and continue this discussion later? This project must get started.”

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

Explanation / Answer

1.contract with Aerospace

2.Invention's and data in government's interest

Contract with Aerospace:

Cost - $ 5 million

Cons.- no inventions and data.

If think about free, there should be rights in inventions and data.

As NASA is going to develop a contract on developing a weather setallite, it is very necessary for inventions.No final contract could be written without the required clauses.

NASA can perform all the required work for inventions and data, hence it should have inventions and data in Government's best interest.

I am disagree with smith. Its my thought , and would depend on your thought.

Thanks

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.