Your supervisor came into the office in the late afternoon very upset.  He informs you and the negotiation team that he attended a meeting that morning with the contracting officer for the contract that you and your team prepared. Your supervisor learned that the government agency wants a third revision on the cost associated with the proposal. The proposal is in the preaward final round, and the cost adjustment is due to an economic price adjustment clause in the contract; therefore, a modification is required to remain in the running for the bid. The supervisor does not want to lower the costs at all; however, knowing that if you turn down the opportunity, it may black ball you from future upcoming possible RFPs. The supervisor asks you and the negotiation team to conduct an analysis of whether this contract would be feasible or not.

• In your opinion, can you justify the contractor officer’s request for a modification? Why or why not? Explain in detail.

• What do you think would be the reasons for the supervisor to continue with the bidding process for the contract? Explain.

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