Table Of ContentNPS ARCHIVE
1997
MULLIN, D.
NAVAL POSTGRADUATE SCHOOL
MONTEREY, CALIFORNIA
THESIS
A DICTIONARY OF
ACQUISITION AND CONTRACTING TERMS
by
Drew K. Mullin
June 1997
ThesisAdvisor: David V. Lamm
Thesis
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1. AGENCYUSEONLY 2. REPORTDATE REPORTTYPEANDDATESCOVERED
June 1997 Master's Thesis
4. TITLEANDSUBTITLE FUNDINGNUMBERS
:
A DICTIONARY OF ACQUISITION AND
CONTRACTING TERMS
6. author(S) Mullin, Drew K.
7. PERFORMINGORGANIZATIONNAME(S)ANDADDRESS(ES) PERFORMINGORGANIZATION
Naval Postgraduate School REPORTNUMBER
Monterey CA 93943-5000
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AGENCYREPORTNUMBER
11. SUPPLEMENTARYNOTES: Theviews expressedinthisthesis arethoseofthe authoranddonot
reflectthe officialpolicyorposition ofthe DepartmentofDefense orthe U.S. Government.
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Approved forpublic release; distribution is unlimited.
13. ABSTRACT (maximum200words)
This thesis effort is a continuance ofresearchto determine, through a consensus ofopinion among
contracting professionals, a definitionforcurrentcontracting terminology. This researchwas first initiated
by Lieutenant Commander Daniel L. Ryan, SupplyCorps, United States Navyand was later accomplished
byothers at both the Naval Postgraduate School, Monterey, California, and attheAir Force Instituteof
Technology, Wright-PattersonAir Force Base, Ohio. Aswith the previous efforts, thisthesis examined
literarysources forthecurrentdefinitions and usageofthe chosen terms. Adefinition for each oftwenty-
fivetermswas synthesized, incorporated inan open ended survey, and sentto contracting professionals
affiliated withthe National Contract ManagementAssociation. Respondentcomments wereanalyzed,
and, when appropriate, incorporated inthefinal, proposed definitions.
14. SUBJECTTERMS: DictionaryofContractingTerms 15. NUMBEROFPAGES 192
16. PRICECODE
17. SECURITYCLASSIFICA- 18. SECURITYCLASSIFI- 19. SECURITY 20. LIMITATIONOFABSTRACT
TIONOFREPORT CATIONOFSTHISPAGE CLASSIFICATION UL
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NSN7540-01-280-5500 StandardForm298(Rev. 2-89)
PrescribedbyANSIStd.239-18298-102
Approved for public release; distribution is unlimited.
A DICTIONARY OF ACQUISITION AND CONTRACTING TERMS
Drew K. Mullin
(/
Lieutenant Commander, Supply Corps, United States Navy
B.S., Arizona State University, 1979
M.A., Webster University, 1986
Submitted in partial fulfillment
ofthe requirements for the degree of
MASTER OF SCIENCE IN MANAGEMENT
from the
NAVAL POSTGRADUATE SCHOOL
June 1997
OXLIBRARY
POSTGRADUATESCHOOL
CA ^043^101
ABSTRACT
This thesis effort is a continuance of research to determine, through a consensus of
opinion among contracting professionals, a definition for current contracting
terminology. This research was first initiated by Lieutenant Commander Daniel L.
Ryan, Supply Corps, United States Navy and was later accomplished by others at
both the Naval Postgraduate School, Monterey, California, and at the Air Force
Institute ofTechnology, Wright-Patterson Air Force Base, Ohio. As with the
previous efforts, this thesis examined literary sources for the current definitions and
usage ofthe chosen terms. A definition for each oftwenty-five terms was
synthesized, incorporated in an open ended survey, and sent to contracting
professionals affiliated with the National Contract ManagementAssociation.
Respondent comments were analyzed, and, when appropriate, incorporated in the
final, proposed definitions.
VI
.
TABLE OF CONTENTS
INTRODUCTION
I. 1
BACKGROUND
A. 1
B. SCOPE, ASSUMPTIONS, AND LIMITATIONS 3
1. Scope 3
2. Assumptions 3
3. Limitations 3
C. RESEARCH QUESTIONS AND BENEFITS 4
Research Questions 4
1.
2. Benefits 4
D. ORGANIZATION OF STUDY 5
METHODOLOGY
E. 5
1. Generation ofaList ofCandidate Terms and Term Selection 6
2. Performance ofaLiteratureReview ofEach Selected Term 7
.
3. Synthesis ofInitial DefinitionsBasedUpon theLiterature
Review
4. Survey of Procurement Professionals 8
5. Analysis and Incorporation ofRespondent Comments into a
Final Definition 9
SUMMARY
F. 10
H. DEVELOPMENT OF INITIAL PROPOSED DEFINITIONS 11
. .
A. INTRODUCTION 11
TERMS
B. 11
1. Alternative Dispute Resolution (ADR) 11
2. Arm'sLength Relationship 13
3. Auctioning 14
4. Bidder 15
5. Boilerplate 16
6. Buy-In 17
7. Buyer-SellerRelationship 19
vu
8. Commercial Item 20
9. Contracting Officer's Technical Representative (COTR) 22
.
10. Delinquency 24
11. Equitable Adjustment 25
12. Fact Finding 27
13. Fee 28
14. Improvement Curve 30
15. Market Research 32
16. Mediation 34
17. Memorandum ofAgreement (MoA) 35
18. Negotiation 36
19. PerformanceBased Contracting 38
20. Privity ofContract 40
21. Procurement Lead Time (PLT) 41
22. Reasonableness 42
23. Single Process Initiative 44
24. Source Selection 45
25. Unallowable Cost 46
SUMMARY
C. 47
m. ANALYSIS OF SURVEY RESPONSES 49
A. INTRODUCTION 49
B. TERMS 50
1. Alternative Dispute Resolution (ADR) 50
2. Arm's Length Relationship 53
3. Auctioning 56
4. Bidder 59
5. Boilerplate 63
6. Buy-In 65
7. Buyer-SellerRelationship 69
8. Commercial Item 73
9. Contracting Officer's Technical Representative (COTR) 77
.
10. Delinquency 81
11. Equitable Adjustment 84
12. Fact Finding 89
13. Fee 93
14. Improvement Curve 97
15. Market Research 100
16. Mediation 103
17. Memorandum ofAgreement (MoA) 107
18. Negotiation 110
VUl
