A defense department assigned its highest priority to develop an advanced aircraft using materials not previously used and untested technologies. A fırm fixed-price contract was awarded to a qualified vendor. Controls were in place at all levels, and progress reports- noting challenges-were sent to top officials. Top officials reported that progress was excellent, but the project failed due to enormous expenditures with no aircraft developed. Which risks were not adequately considered? I. Because the requirements were not specific, the use of a firm fixed-price contract made the project risky. II. The personnel at many levels sent false reports forward on cost incurred and progress made. III. The contractor lacked adequate technical skills to deal with technology that was still evolving. IV. Top procurement officials did not act on "red flags" due to a "can do" mentality on a high priority of the program.
A defense department assigned its highest priority to develop an advanced aircraft using materials not previously used and untested technologies. A fırm fixed-price contract was awarded to a qualified vendor. Controls were in place at all levels, and progress reports- noting challenges-were sent to top officials. Top officials reported that progress was excellent, but the project failed due to enormous expenditures with no aircraft developed. Which risks were not adequately considered? I. Because the requirements were not specific, the use of a firm fixed-price contract made the project risky. II. The personnel at many levels sent false reports forward on cost incurred and progress made. III. The contractor lacked adequate technical skills to deal with technology that was still evolving. IV. Top procurement officials did not act on "red flags" due to a "can do" mentality on a high priority of the program.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A defense department assigned its highest priority to develop an advanced aircraft using
materials not previously used and untested technologies. A firm fixed-price contract was
awarded to a qualified vendor. Controls were in place at all levels, and progress reports-
noting challenges-were sent to top officials. Top officials reported that progress was
excellent, but the project failed due to enormous expenditures with no aircraft developed.
Which risks were not adequately considered?
I. Because the requirements were not specific, the use of a firm fixed-price contract made
the project risky.
II. The personnel at many levels sent false reports forward on cost incurred and progress
made.
III. The contractor lacked adequate technical skills to deal with technology that was stll
evolving.
IV. Top procurement officials did not act on "red flags" due to a "can do" mentality on a
high priority of the program.
O l only
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