Commercial and Commercial-Type Products According to the Federal Acquisition Regulations (FAR) “Commercial item” means any item, other than real property, customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been sold, leased, or licensed to the general public, or has been offered for sale, lease, or license to the general public. A “commercially available off-the-shelf” (COTS) item is any item or supply (including construction material) that is a commercial item sold in substantial quantities in the commercial marketplace, and offered to the Government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial …show more content…
24). The contractor is paid for all of its allowed expenses to a set limit, plus additional payment to allow for a profit. The FAR prohibits the use of cost-reimbursement contracts to acquire commercial items. The cost reimbursement contract is considered high risk for the government because of the potential for cost escalation and because the government pays a contractor’s costs of performance regardless of whether the work is completed. The two major reasons for the inability to estimate costs accurately are the lack of knowledge of the work needed to meet the requirements of the contract (for example, research contracts which involve substantial uncertainties), and the lack of cost experience in performing work (for example, the development of a weapons system where manufacturing techniques and specifications are not stable enough to warrant a fixed-price …show more content…
This type of contract is used when uncertainties in contract performance are so large that the cost of performance cannot be estimated to permit use of a fixed price contract. Rather than guaranteeing to perform under a contract at a specified price, the contractor agrees to deliver its “best efforts” to perform the requirements in return for costs incurred and a reasonable fee. This type of contract requires negotiation of estimated costs and the payment of a fixed dollar fee to the contractor. The fee cannot be changed unless the government changes the scope of work in the contract. Cost-reimbursement contracts involve much more government oversight than fixed-price contracts. This means the government incurs additional administrative costs on top of what it is paying the contractor.
Sole Source and Competitive Acquisition Processes A sole source contract means there is only one entity that can provide the contractual services needed. These types of contracts are rarely issued because of the need for open and fair competition. An example would be Boeing receiving a sole source contract to provide spare parts for the Apache helicopter, since they are the only manufacturer of this particular
Overall, incomplete documentation and delinquent medical records cause inaccurate reimbursement and results in inaccurate gross revenue to the hospital. It can have a negative impact on the hospital budgeting and financial planning process for the hospital. It is for this purpose that every healthcare institution should be purposeful on reviewing the accuracy and completeness in clinical documentation, no matter the cost. Even though, for most physicians, most of their time is focused on the actual care of the patient and there is little to no time to devote to extensive documentation, it is imperative to understand patient care includes both the one-to-one attention and the documentation of said treatment.
Reimbursement Methods What are the definitions of and the similarities and differences of the following reimbursement methods; capitation, discount, per diem, case rate, DRG’s/MS-DRG’s? Starting with capitation. Capitation is prepayment for services, per member per month. A physician or facility is paid the same amount of money every month for each member or patient regardless if that patient is actually seen or receives services and regardless of how extensive of services that member/patient have received. The capitation amount is calculated and set at the fixed amount usually for one year.
There was not enough information to calculate capital expenditures that associated with the implement of new
The Uniform Commercial Code (UCC) is an arrangement of regulations that are used to regulate sales and exchanges in the U.S. The UCC is not law, but rather statutes that can differ from one state to the next. Article 2 of the UCC is a model statute that has been accepted by each state, aside from Louisiana, and is utilized to settle issues with respect to the sale of merchandise. Products secured by the UCC are characterized as anything that is recognizable and transportable. Products that are secured by Article 2 may incorporate livestock, produce, hardware, or cars.
The two factors that demonstrate that the traditional system may produce estimates that are different than that of the unit cost are high overheads and indirect cost
Nowadays, more employers require new workers to sign “Non-Compete Agreements”, in order to prevent insiders from taking consumers’ data, business secrets or newly researched technologies to competing firms when the workers leave. A non-compete agreement is a contract between an employee and employer that confines the ability of workers to involve in business which competes with their current employer. The agreement is most often signed at the beginning of employment. It puts a limit on the employee to not work for a competitor company immediately after leaving their employment with the current company.
With that in mind, The Home Depot has two generic brand products within the store one is HDX that could be found in almost every department of the store, this product usually doesn’t carry a warranty and for the most part it is built for residential use due to it lower prices and quality point. Whereas, Husky is the other company’s house brand, in which this product carries a warranty and a bit more expensive but with great quality. Meaning the stages of products, whether new or old go through or their growth in the market place that is influenced by Market Demand. For instance, Managers in Leadership need to know what stage a product is in due to the benefit of a devise marketing program for product sales due to, a product goes beyond itself if its presented to the store proper, the way it is packed and the service as well customer service and warranties that is offered for the product from within the company. (Ehmke, Fulton, Lusk, 2005).
This type of contract is preferred when there is uncertainty in the scope of work, or when the types of the materials, labor, and equipments are being similarly uncertain in nature. 4- Incentive contracts Incentive contracts feature compensation which depends on the contracting/engineering performance in accord with an agreed target, schedule, quality, and/or budget. 5- Percentage of construction contract
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
Business products are types goods and services which make cost-effective purchasing decisions. Installations are major capital investments in the business to business market. For example, items in Publix have to constantly stay restock and fresh for consumers to purchase whenever they chose so. Publix has purchased 18 wheeler trucks to ship, carry, and deliver items to the store. A company truck is a capital investment and a major component of how the business operates.
Compensation Philosophy of Maersk A compensation policy is a statement of a company’s stand when it comes to employees’ compensation. It explains why employees are given a certain amount of pay or any other form of compensation. These statements are normally developed by the human resources department with assistance from the executive team. When the statement is well-designed it will support the company’s strategic plan, goals, and competitive outlook, and compensation and reward strategies.
Under direct contracting, providers must go beyond their traditional roles as suppliers of care to owners of integrated financing and delivery systems. This transition can be difficult for employers to compile and manage actuarial and legal mandates. A physician group can be presented as a threat to health plans, as it does business by obtaining an insurance license. This is because the subcontractor is a competitor. Providers must become active managed care partners with employers, instead of being reactive adversaries of managed care organizations on a contractual basis.
Medicare is a government program that was formed in 1965. It was created to help provide health coverage for people 65 years old or older, people under 65 years old with certain disabilities, and people with End-Stage Renal disease. Medicare is currently the largest payer for health services in the United States. Medicare paid for 20% of the total national health spending in 2012. Since 1969, Medicare spending per enrollee has continued to rise.
Categories of products currently include major appliances, furniture, electronics, luxury items, special events,
Once an organization does not have the technical capability to serve the market of a certain technology, then this production process needs to be outsourced. AGRO International GmbH & co. KG - German producer of innerspring systems - supplies LFK, Bonnel and Pocket springs to mattress manufacturers such as SpringAir Indonesia. The uniqueness of the spring systems gives a supplier such AGRO the power to bargain. Therefore, the bargaining power of suppliers in the mattress industry depends on the business model. If the organization has the technical capability to manufacture the mattress themselves, then the supplier power is low.