A study of contract types used by the Armament Corporation of South Africa (ARMSCOR)
Lebelo, Kopano Peter.
Cuskey, Jeffrey R.
Lamm, David V.
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Defense acquisition in the Republic of South Africa is performed by the defense procurement agency called the Armament Corporation of South Africa (Armscor). The agency is faced with the challenge to acquire products and services effectively and efficiently and within a limited budget. One of the elements that contribute to increased efficiency in procurement is the reduction of contract risk. The agency's regulations presently allow the use of fixed- price contracts that limits its capability to mitigate risks especially in the procurement of specialized and complex military products. The study is organized in the following manner. Firstly, it presents structures; policies and regulations that govern contract types. Secondly, it reviews contract types used by the U.S. Federal agencies and other countries. Thirdly, it analyses Armscor's contracting procedures related to contract types. Lastly, the study recommends contract types that are suitable for the South African defense agency and changes that should be adopted before they can be incorporated. The research recommends a contract type model for Armscor.
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