President - Enviro-Logistics Inc. Contracting for Hardware and Software During the Life Cycle Management Process Katherine Pratt President - Enviro-Logistics Inc. envirolog@earthlink.net Enviro-Logistics, Inc.

Product Lifecycle Model Stage 1 Introduction Stage 2 Growth Stage 3 Maturity Stage 4 Saturation Stage 5 Decline Stage 6 Phase Out Sales Slow increase Increasing Rapidly Stable Leveling Out Decreasing Lifetime Buys Offered Price Highest Declining Rising High Usage Low Increasing Part Modification Frequent Major Periodic Changes Few Few or none None Competitors Stable number Decline begins Manufacturer Profit Reasonable for survivors Reasonable for survivors (aftermarket) Enviro-Logistics, Inc.

Classification of Solution Options TYPICAL CLASSIFICATION SOLUTION OPTION SHORT-TERM SOLUTION LONG-TERM SOLUTION Buy from stock √ Reclamation Repair or Overhaul Manufacture to TDP F3I Substitute Reverse Engineering Redesign Enviro-Logistics, Inc.

Interesting Links http://www.rohs.gov.uk/Default.aspx http://www.dmsms.org/ http://www.gidep.org/ Enviro-Logistics, Inc.

Types of Contracts Contracts Contractor Risk Government Risk Notes Firm-Fixed-Price √ Max contractor incentive to control cost and perfrom Cost-Plus-Fixed-Fee Minimum Contractor incentive to control costs Fixed-Price-Incentive Formula based on % total cost + profit Enviro-Logistics, Inc.

A Binding Contract Enviro-Logistics, Inc.