Infinite Tech has been established as a leading technology company in the North and Southern American region. Its traditional mode of business is based on the production of leading technology that is not only revolutionary to various governments, but also has an impact on the economy. Based on the company’s decision to diversify its establishment, Infinite tech is now headquartered in Washington D.C. Infinite's revenue is estimated to be over $300,000 monthly depending on the nature of contracts they are handling for various security and government institutions. The company’s purpose is to be a leader in the technology industry by providing quality services that change the way ordinary lives are lived. Its vision is to deliver quality services exceeding the expectations of the general public in technology as well as other sectors. More importantly, its mission statement is to build a long-term relationship with various government agencies by providing exceptional services through innovation and advanced technologies. Also, the company’s goals include the regional expansion in the field of innovation and technology, and develop a strong base of its key customers such as the government agencies as well as building a good reputation that gets international recognition in all continents in the world.
Vector Cal is a global engineering, technical and environmental consultancy business with a value chain, which includes the niche of manufacture and assembly of high-performance products; Its ambitions is to be the world’s leading brand in the developing and offering solutions to meet the challenges in the transport, energy and military sectors. Vector Cal is responsible for the management and development of military-related products such as the unmanned drones that are used for surveillance purposes as well as the surface to air missiles that have been used in fighting America’s global wars in both the Vietnamese and Iraqi wars. The combatant environment is demanding new strategies for defense and security at a personal level; thus, leading to an increased demand for their military technology in various continents. Vector Cal’s proven methodologies and products are a reason they have won major government contracts in the U.S. Their extensive research experience working with, both government agencies in developing and engineering of military software makes them a renowned leader in the industry. Also, private companies also seek their services due to their great achievements as seen by the products they create for the government.
The war in the Middle East has provided an excellent business opportunity for Infinite Tech. The government issued the company a contract estimated at around $ 1,000,000. It is believed that the company faced stiff competition from other players in the industry but, fortunately, landed the deal of providing housing, meals, and water and bathroom services to the soldiers in the battlefields. Infinite Tech was able to combine its innovative ideas and provide the best quality services that the soldiers needed in the war. In addition to this, they were able to do this and so much more as developing software’s equipped with the soldier’s communications gadgets that can detect their energy levels, thus giving them a reminder of when it was necessary to get rest, go for check up and get a refreshing shower. A delight that every soldier desires, the general public showered praise to infinite tech for their innovative approach to trying to make a difference in the lives of the soldiers. Human rights activist also commented on a good job by stating despite the ongoing war efforts in the Middle East. The soldiers deserved, at least, some incentive; that would keep them going and focus on the task at hand, and that is what infinite tech provided for the battle hardened loyal soldiers. Also, consequently, the tech company offered more software that were used to enhance the security detail of the army base by detecting looming missile threats; thus, warning the command centers and suggesting reasonable countermeasures that would have the least causalities impacts on the soldiers, if the base defense is penetrated.
Vector Cal, on the other hand, has received contracts that concern itself with the design and construction of a new building in various quarters at major naval bases all over the country. The primary challenge that was placed on them was the structures of buildings, which can survive a terrorist attack. The building designs are meant to avoid a repeat of 9/11 attack where the twin towers felled. The contract also contained three major unexercised options as well as planned modifications, which would cumulatively increase the contract value all factors considered. The work to be performed in various military buildings, as well as major establishments in major towns, will prove pivotal in providing a temporary solution to the war on terrorism. Furthermore, it used this opportunity to showcase its prowess in the fight against terrorism by coming up with building plans that could stand any possible attacks other than a nuclear threat. The fortified buildings have also incorporated a defense system, which upon an alert responds to viable threats in the vicinity by launching surface to ground missiles to quell the imminent threats. Although the contracts cost stood at an estimate of $2,500,000, Vector Cal was able to meet all the stipulated deadlines regarding the contracts and finish the jobs on time. As of now, various military base and monumental structure in the U.S are safe from potential terrorist attacks.
Infinite Tech was awarded the above contracts in the war-torn the Middle East due to their capability to come up with innovative ideas that were able to make a difference in the war. In a war zone, soldiers tend to be disillusioned, and they even forget to take care of their basic vital needs. Besides just providing housing, the company was able to come up with software that made a difference in the warfare. The fact that the soldiers were able to get enough rest, and various medical attention as per the recommendation of the software developed to monitor the soldier’s wellbeing. The wars in the hostile regions were won due to such innovation. The company was awarded the contract due to their ingenuity that they had demonstrated with other projects that had different outcomes due to their involvement. Vector Cal won their coveted contract as a result of their long-standing history of spearheading campaigns against terrorist attacks by coming up with solutions that either reduced the casualties numbers or led to the apprehension of the terrorist even before the terror attacks were executed. A factor based on their ability to survey the behavior of the general populace by their programs that have impacted the war against terrorism. Equally important, their ability to deliver projects on stringent time frames was a contributing factor that facilitated the company being awarded the contract mentioned above amidst stiff completion from other players in the market.
Drones operate best by being able to see its immediate environment (Maden, 2013). As a result, both companies have to choose a contract type that best ensures that they deliver the required results. A fixed price contract requires contractors to perform the contract and offer the conforming supplies or services at a price agreed at upfront. The pricing in the contract does not change whatsoever the circumstances in question. Fixed price types of contracts, places pressure on the contractors, to come up with innovative ways of delivering their services on time. Employing limited resources in either production or supply to realize more profit at the end of the deal. If it costs them less, they stand to make more, if the costs are more than they can bear it is possible for them to realize limited returns on their investments. It would be ideal for both infinite tech and vendor Cal to choose this type of contract. A drone navigation technology mainly concerns itself with the development of software that help in the navigation of the drone. Studies suggest that such services require a certain kind of contract as the risks involved predictable, and the input on the side of the company is minimum, considering a company that has vast experience in both software and hardware development as is the case with both infinite tech and vendor Cal. A cost reimbursement contract allows for the payment of all incurred costs within a predetermined ceiling as per the terms of the contract. As a result, the contractor faces least cost and performance risks, but if faced with harsh reality of meeting a fixed deadline. Drone development technology needs to be extended timelines to be able to meet the projects objectivity. As a result, it would be risky to settle for a cost reimbursement contract when dealing with this kind of government contract. It is, therefore, wise that both companies incline their thinking towards the fixed price contracts that allows them freedom in terms of time as well as enabling them to reap more profits based on their abilities to manage their operating costs well.
In developing the navigation system, both companies incur direct and indirect costs. My company incurs cost relating to materials, fuel, labor and expenses related to the production of the drone navigation system. Infinite Tech has to source for the material required for the project, depending on the availability and proximity my company incurs a lot of material. Being situated in a high-end market like Washington D.C, the inflation that is associated with materials is quite high and seeking an alternative option is highly recommended. Cost of labor is equally high as the living standards around the city requires that the workforce is paid well to be able to meet their daily needs as they lead their normal lives. The cost of hiring premises s also high in a prime area like Washington, renting space costs so much and if one doesn’t get subsidized rates, rent as an expense dents a hole in the companies budget. More importantly hiring skilled labor is an issue that if not carefully looked into results in completing the project but having small returns that may not meet the company’s annual targets set in a fiscal accounting period. Infinite Tech has indirect costs that relate to administrative duties as well as regulatory costs which mandate the payment of taxes, insurances as well as maintenance on the projects at hand. Tax is an indirect cost Infinite Tech pays and in Washington, the cost of tax is relatively high compared to other regions in the country. Also, insurance is another indirect cost that has to be catered for by the company. As a policy, government contracts are strict on insurance payment, and it is impossible to be awarded contracts if the business in question cannot be able to meet this requirement (Solloway, 2013). Maintenance of the facilities is another indirect cost that infinite tech incurs. The facility has to be cleaned and regularly guarded. To this, money needs to be spent on buying the necessary materials such as cleaning detergents and paying off private companies to offer security; also costs related to communication have to be catered for by the company to ensure smooth running of the development of the drone navigation system.
Vector Cal has its shares of costs that it has to meet; these are either direct or indirect. Manpower is an important aspect when it comes handling projects efficiently, developing a drone navigation system requires engineers, technical assistants, support staff and even accountants. For a company headquartered in a town associated with reduced costs of living, it will not coast the company a lot to be able to pay its personnel. More importantly, getting raw material will not be difficult to get as well; due to fact mentioned earlier; in addition to this paying for the rent where the project is to be done will not cost the company a lot; considering where it is situated, the living standards associated with the place. However cost related to communication, insurance, tax may be the same as those incurred by infinite tech. Vector Cal will just have to meet these costs and find ways to reduce some of its direct cost to increase their projected revenue after the completion of drone navigation system.
Based on the facts as mentioned earlier, companies seek contracts to be able to generate profit. Both companies are eligible for getting the deal, but one qualifies more to getting the project done on time. Vector Cal as a corporation is positioned to hire more labor force due to the availability of manpower in the area they are headquartered. Second, it is manpower that facilitates most projects to be completed in record time in various sectors all over the world. Uhlig (2012) established that in Washington D.C, hiring such labor costs more for infinite tech, and it would go against their stakeholders’ interest to invest in a project that would have little returns to them as a company.
The fact at hand suggests that Vector Cal is better placed to win this government contract due to several reasons. First, their past track record shows that they do deliver their projects on time and before the stipulated deadlines. Besides, they have been handling major government contracts within the country compared to Infinite tech that has most of its contracts outside the borders of the United States of America. A close analysis suggests that it is better to deal with a company, which handles business within the country, compared to another that offers oversee services. The environments are very different from all the companies, while Infinite tech is well advanced in navigational development projects; they perform optimally in war-torn zones, compared to its competitors who thrive well in a civilian population, such as in the United States of America as compared to either Iraq or Afghanistan. Third, having handled such other contracts that cost more than what is offered and in record time, it is impossible for them to fail to meet the necessary requirements needed in securing such a lucrative deal. Another factor to consider is that the can easily source for human labor. Vector Cal can easily afford both skilled and unskilled labor, due to the low living standards of the area in which they base their operations. Coupled with the facts that they can also afford raw material very quickly makes them the right candidates to be awarded this contract compared to infinite tech. Last, America has been a target for terrorist for a while now. Having handled a deal that aimed constructing building which would stand terror attacks gives them the edge over other companies. To be able to stop, prevent or avert a terror attack, it needs the highest level, if intelligence one can amass. In handling this drone navigation system, Vector Cal will just be helping the country in developing a system that can be at the forefront of surveying the general population and as a result contribute significantly in the war against terrorism.
References
Maden, M. (2013). Drone.
Solloway, C. D. (2013). Managing federal government contracts: The answer book. Tysons Corner, Va: Management Concepts Press.
Uhlig, S. (2012). Federal construction contracting made easy. Tysons Corner, Va: Management Concepts
