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7 - NATIONAL UNDERWRITERS TECHNICAL

National Underwriters Technical (NUT) provides architectural design and purchasing services for large buildings and factories. NUT's procurement services past performance have performed well on recently completed projects. It appears that NUT does not have a very effective cost and scheduling control processes. Tony Antone, the CEO of NUT, reacts to this data by deciding to hire a management consultant to develop a sophisticated cost and scheduling control program that will impress his clients and the Board of Directors. Since the Board has heard that consultants of this type are expensive, they request that a fixed price contract be used for the contracted work. Stan Fink is the project Manager for NUT in charge of preparing the RFP and managing the contract for the management consultants.

Stan's internal team completes the technical and management requirements for the RFP and gives them to Bert Parks, the Manager of Procurement of NUT who has the responsibility for obtaining bid proposals for the work.The requirements for the cost and schedule control program are vague since Stan's team does not know how long an effort of this type should take. Bert reviews the information that he receives from Stan and concludes that it is not sufficient to support a fixed price type contract with a management consultant company.

Stan schedules a meeting with Bert to resolve what should be included in the RFP to support a fixed price contracting approach.

Develop your approach using the case analysis form: Major Facts, Major Problems, Possible Solutions, Choice and Rational.