A VA medical center requires services for resurfacing the primary access road. They have stated the materials for the repair are petroleum-based and are concerned since oil prices are now at $4 a gallon with the possibility of reaching $5 a gallon within the next six months, thus resulting in significantly increased prices for petroleum-based materials. The period of performance for the contract is one year with options for repair of two additional shorter roads. $5 million has been allocated for the project. It is possible the contractor could complete the primary access road in less than a year, thus saving money on labor.

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ANSWER Given the concerns about rising oil prices and the possibility of increased costs for petroleumbased materials there are several strategies the ... View the full answer