Decision Analysis for Contract with Integrated Systems Design (ISD).You are a Project Manager for a small private but growing company that specializes in the manufacturing of military electronics named Integrated Systems Design (ISD).
QUESTION
write minimum 900 words
Scenario Summary
INTRODUCTION
You are a Project Manager for a small private but growing company that specializes in the manufacturing of military electronics named Integrated Systems Design (ISD). You have been tasked with putting together a contract for a recent award for the government for your company’s newest technology. Your company’s technology, called Independent Operation (IO) offers limited artificial intelligence capabilities to allow drones to operate independently. The new computer brain that your company has developed will allow drones (or other equipment) to operate without the need to remain in contact to avoid being disrupted in the field. The company, Integrated Systems Design, realizes that their technology is new, but it will likely be copied by others who are attempting to accomplish the same.
COMPANY DETAILS
The company is called Integrated Systems Design (ISD) and they have been producing military grade electronics and guidance systems for about 6 years and have grown to have 5 million dollars in sales this year. They specialize in high end, highly reliable and cutting edge type items. They have been primarily doing business with the US Military and Department of Defense.
The company is based in Los Angeles. The Los Angeles office handles sales, distribution as well as customer service. The Los Angeles facility houses manufacturing, research and development, marketing, supply chain, distribution, and reverse logistics. All manufacturing is done in the US, but some components are purchased overseas. The total number of employees is 20.
Since the company understands that others will try to copy their technology, the company has been firm about making sure that all people involved have signed nondisclosure documents and that all material supplied is always marked confidential.
CURRENT SITUATION
ISD has just been awarded the largest contract ever for the company as the government seeks to corner the market by contracting for the exclusive use of the Independent Operation (IO) technology. The government wants exclusive use of the technology and in turn the government will agree to protect the technology and treat it as a national security secret to avoid having information disclosed about the project. Although the contract will be for 30 million dollars over the next five years, there are those that are concerned that this might limit the company’s growth potential.
YOUR TASK
The President of the company has asked you to discuss with the key players to find out their position about moving forward with the contract, to put together a pros and cons list, and to put together details about the essential elements of the contract that need to be included.
Your Role
As the project manager, you have been tasked with gathering feedback
from different parties and to put together a go forward plan. Below is a
summary of some of the important comments from your individual meetings
with these individuals.
Assignment
Deliverable: Turn in a three- to five-page paper outlining your complete responses to the above questions.
- Write one page about if the company should or should not move forward with the contract. Base this upon the facts, the comments from the key players and other supporting research (Note: Review Chapter 9 of the Procurement Project Management Success: Achieving a Higher Level of Effectiveness book). Justify your decision and explain your position.
- Put together a pros and cons listing and score each pro and con (You can just list them in order of importance). Remember to define and explain each pro and con in detail.
- Identify the required elements that should be included in this important contract. Justify each required element.
- As part of the award, the government has requested that your company attend a debrief meeting. What will you disclose and what will you not disclose at this meeting?
ANSWER
Decision Analysis for Contract with Integrated Systems Design (ISD)
Introduction
Integrated Systems Design (ISD) has been awarded a significant contract for the exclusive use of their Independent Operation (IO) technology by the government. As the Project Manager, my task is to gather feedback from key players and make an informed decision on whether ISD should move forward with the contract. This paper presents an analysis of the situation, a pros and cons listing, identification of required contract elements, and considerations for the debrief meeting with the government.
Decision on Moving Forward with the Contract
Based on the facts, key player comments, and supporting research, ISD should move forward with the contract. Justification and position:
Market Advantage: The contract offers a unique opportunity for ISD to establish themselves as leaders in the military electronics industry. The exclusive use of the IO technology provides a competitive edge and potential long-term growth.
Financial Stability: The contract’s value of $30 million over five years provides substantial financial stability, enabling ISD to invest in research and development, expand operations, and enhance their capabilities.
National Security Protection: The government’s commitment to treat the technology as a national security secret ensures confidentiality, minimizing the risk of information disclosure and potential replication by competitors.
Pros and Cons Listing
Pros
Market leadership and competitive advantage
Financial stability and growth opportunities
National security protection and confidentiality
Increased brand reputation and credibility
Potential for further government contracts
Cons
Potential limitations on growth potential due to exclusive contract
Dependence on government funding and contracts
Risk of increased competition if technology is replicated
Additional pressure to maintain high-quality standards
Need for continuous innovation and improvement
Required Elements for the Contract
Exclusive Use Clause: To secure the government’s commitment to use only ISD’s IO technology.
Confidentiality and Non-Disclosure Agreement: To protect the technology from disclosure and prevent unauthorized use.
Intellectual Property Rights: Clearly define ownership and usage rights to safeguard ISD’s proprietary technology.
Performance Metrics: Establish measurable performance criteria to ensure the technology meets agreed-upon standards.
Termination Clause: Specify conditions for termination, including breaches of contract or failure to meet performance expectations.
Debrief Meeting with the Government
At the debrief meeting, ISD should disclose:
General project progress and adherence to agreed-upon timelines.
High-level overview of the technology’s capabilities and its potential benefits.
Assurance of maintaining strict confidentiality and commitment to national security.
ISD should not disclose
Detailed technical specifications or proprietary information.
Specific manufacturing processes or trade secrets.
Any information that could compromise the confidentiality or security of the IO technology.
Conclusion
Moving forward with the contract provides ISD with a unique opportunity to establish market leadership, achieve financial stability, and ensure national security protection. Despite potential limitations and challenges, the benefits outweigh the cons. By implementing the required contract elements and maintaining a strategic approach, ISD can maximize the advantages offered by this significant contract award.
