BUSML 5381 Chapter Notes - Chapter 5: Idiq
22 Sep 2019
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Usually based on profits, which can be one-sided and dangerous. Incorporating customer satisfaction can help fill in the gap. Standard carrier template include basic terms and structure for one simple transaction. Great for the simplicity, but not good for exchanges with taxes/surcharges and volume considerations. Individually negotiated contracts aren"t as simple, but incorporate everything. Structured to be consistent and flexible with the details needed to be outlined. Domestic contract contents: defined terms used throughout, term of the contract (how long), costs, payment method and terms, liability, documentation required, procedures for damages/claims, limits to the claims, etc. International contracts have specifics for air transport (receiving, delivery, notifications), inspections, liens, Suppliers will bid to get the product/service contract. Could also use rfq for lower valued services with existing suppliers that your familiar with. Steps: create rfp, share with industry, receive rfps by deadline, rank each rfp based on your valued.
