The contracting professional is a business advisor and technical expert in contr

Question

The contracting professional is a business advisor and technical expert in contracting policy and the acquisition process. The importance of the business advisor cannot be overstated, because many times, the customer needs nothing more than advice and guidance.

Requirement

You have just been identified as a team member to conduct strategic research in an effort to provide mission support to this customer. The customer has been experiencing problems with the air conditioning in three buildings. Your discussions with the customer reveal that the air-conditioning systems are approximately six years old and have required repair six times in the past year, with average costs of $3,500 per repair. You know that, on a previous buy, the unit price for a similar air conditioner was $4,700.

Task

As a group, formulate the acquisition strategy for this requirement. Remember, you are a business advisor for the team, and you should consider all options, along with the pros and cons of each option.

1.      What is your acquisition strategy for this requirement?

2.      What information will you need to obtain before you proceed?

3.      What experts will you need to consult for information?

4.      What suggestions will you make to the acquisition team?

Explanation / Answer

1.
As per the given scenario, my focus will be on three alternatives. First, buy a new air-conditioning systems that are creating problems or need maintenance. Second, I would like to explore the annual maintenance plans for the air-conditioning system that can effectively reduce the maintenance cost. Third, I would like to explore leasing options where air-conditioning system can be brought on lease agreement. For each option, I will conduct a cost and benefit analysis and suggest accordingly.

2.
I need following information:
a.   Cost of maintenance being done by the customer and useful life of the system
b.   Cost of new system available in the market
c.   System capacity that can fulfill the requirement of the customer
d.   Any company who provides air-conditioning system on lease and the cost of leasing
e.   Any specific reason that the air-conditioning system is going to the frequent maintenance

3.
I will consult a technical expert who deals with air conditioners in offices. This expert will tell us the exact requirement, maintenance requirements and the quality of hardware to sustain for longer time without maintenance. Accordingly, the expert can also suggest the best option to go for the acquisition of air conditioners.

4.
I will suggest them to buy a new air-conditioning system with superior compressors with extended warranty. I will give my customer a protection against maintenance cost and savings will take place. I would also like to suggest to go for 5 star air-conditioners that can save electricity. Thus, it will be an efficient option also. Leasing option cannot be taken as it is very costly and it provides old systems that consume lots of electricity.

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