Masters Theses

Abstract

"The traditional government contract type has played an important role in the economy of the United States. In its most used type, that of fixed price, it represents a stabilizing factor in the cycles of the business world. However, recently this type of contract has been affected by the nation's most recent plague, double-digit inflation.

Inflation attacks almost all phases of stability in the economy and in contract negotiations and bidding techniques. It erodes the monetary unit of the economy, distorts forecasting models, and creates potential ruin for contractors due to uncertainty in costs.

Research pertaining to government funded contracts and inflation indicates that the firm fixed price contract, returning less than 10%, negotiated for a 1 - 2-year duration and viewed as a minimum risk is the most often used type. Present day bidding techniques depend primarily on solicitations for bids and proposals, therefore, costs must be effectively estimated to remain competitive. Further findings reveal the opinion that inflation will continue at or above its present rate. This indicates a need to find a means, whereby, inflation can be considered in bidding government contracts.

This inflationary condition has prompted business concerns to attempt "hedges" in contracting by utilizing a various number of clauses and indexing methods. No "hedge" employed presents a remedy to the problem, however, the contract can become the stable entity it once was if feasible means of predicting inflation are instituted or inflation is halted,

The means, whereby inflation can be remedied, lie in the aggregrate of monetary controls, accelerated production output, and restraining measures to relieve excess demand, If properly instituted through the political means, the contract will once again retain its traditional form and be a stabilizing factor of the business cycle"-- Abstract, pp. ii-iii

Advisor(s)

Swift, Fredrick W.

Committee Member(s)

Brooks, William
Wixson, Bobby G.

Department(s)

Engineering Management and Systems Engineering

Degree Name

M.S. in Engineering Management

Publisher

University of Missouri--Rolla

Publication Date

1974

Pagination

viii, 125 pages

Note about bibliography

Includes bibliographical references (pages 92-94)

Rights

© 1974 David Thurman Hearst, All rights reserved.

Document Type

Thesis - Open Access

File Type

text

Language

English

Thesis Number

T 4000

Print OCLC #

5981643

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