The identification of early warning signals prior to contractor default
Switlik, Roch A.
Lamm, David V.
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The purpose of this thesis was to investigate the contract administration process, during contract performance, prior to the point at which a Termination for Default (T for D) decision is made. The objective of this thesis was to determine if there are systemic indicators that may provide early warning signals to contract administrators, during performance of the contract, that the contractor may fail in complying with the contractual obligations, thus being Terminated for Default. This research was limited to Fixed-price Supply-type contracts. The data for this research were obtained through literature research, telephone interviews and survey questionnaires conducted with various Defense Logistics Agency organizations. This thesis concluded by providing a "Performance Indicator Management Model," developed by the researcher, based upon the data obtained from this research. This model focuses on the major areas of contract performance, monitored by contract administrators and provides the most effective indicators, which provide advance warning of contractor difficulty that may lead to default.
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