REG NASA-LLIS-1343-2003 Lessons Learned Acquisition Management Grants vs Contracts.pdf

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1、Lessons Learned Entry: 1343Lesson Info:a71 Lesson Number: 1343a71 Lesson Date: 2003-01-01a71 Submitting Organization: ARCa71 Submitted by: Donald R. MendozaSubject: Acquisition Management: Grants vs. Contracts Description of Driving Event: The Project was required to develop and deliver a major scie

2、ntific instrument for a project and had used both research grants and contracts to acquire services/products from their vendors. The vendor funded through a grant, which was closely aligned with a University, was paid up front and did not have any other risk or incentive to meet the Projects require

3、ments. The vendors priorities changed and the Project had no recourse or control over them. As a result the hardware being funded through the grant was delivered years late. On the other hand, the Project also had a formal contract with a different vendor, not associated with a research institution

4、or University, to deliver another piece of hardware. This procurement gave the Project options to deal with vendor non-performance. In addition, the vendor was a relatively small business with lots of motivation to establish credibility with its customers. As a result of this, the products delivered

5、 by this vendor were on time, on budget, and within all technical requirements.Lesson(s) Learned: 1. A grant is not the proper funding mechanism to acquire critical hardware or services since there is no way to account for Contractor/Partner non-performance.2. The more a Contractor has at risk, whet

6、her its their reputation, resources, or compensation, the more likely it is that they will meet their requirements.3. Recommendation(s): 1. Ensure that all procurements go through an approval process that includes representation from all project management elements. The amount of oversight and contr

7、ol the Government has over the Contractor (as reflected by the type of procurement mechanisms used) should be commensurate with the criticality of the items/services being procured.Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-2. To maintain the Co

8、ntractors interests and commitment in meeting their contractual requirements, contracts should include Government controlled mechanisms such as incentives and penalties. In addition, payments to the contractor must be based on their performance (against agreed to requirements) as assessed by the Gov

9、ernment3. Evidence of Recurrence Control Effectiveness: N/ADocuments Related to Lesson: N/AMission Directorate(s): a71 Exploration Systemsa71 Sciencea71 Space Operationsa71 Aeronautics ResearchAdditional Key Phrase(s): a71 Administration/Organizationa71 Procurement Small Business & Industrial RelationsAdditional Info: Approval Info: a71 Approval Date: 2003-07-28a71 Approval Name: Andrew Hockera71 Approval Organization: ARCa71 Approval Phone Number: 650-604-4120Provided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-