You work for a telecommunications company and you have been appointed to a high priority project which will extend the mobile coverage in Northern Territory. One of the key deliverables of the project is to install 50 highly customized antennas, which are special order and must be produced as per the unique design provided by your Design department. After consulting the Procurement department, you found out that you may procure antennas from only one supplier that won the bid of any special orders of your company for the next 5 years.

The contract with the seller for producing the antennas had been negotiated for $4,750,000 and 14 months. At the end of month 8^th, the seller reports 60% completion. Your accounting shows that you have paid the supplier $3,250,000 so far. Also, you check your baseline and you notice that the budgeted value corresponding to this point in time is $2,950,000. What is your opinion about your supplier's performance?