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100-629: The largest single part of the FAR is Part 52, which contains standard solicitation provisions and contract clauses. Solicitation provisions are certification requirements, notices, and instructions directed at firms that might be interested in competing for a specific contract. These provisions and clauses are of six types: (i) required solicitation provisions; (ii) required-when-applicable solicitation provisions; (iii) optional solicitation provisions; (iv) required contract clauses; (v) required-when-applicable contract clauses; and (vi) optional contract clauses." If

200-408: A Draft Best Practices Guide on Contractor Performance . The term "personal services contract" means a contract with express terms or administration which makes the contractor personnel appear effectively to be Government employees. Such contracts are prohibited by the FAR (Subpart 37.104) excepting where specifically authorized by statute. "Nonpersonal services contract" means a contract under which

300-445: A trust game context, and in shareholder -management relations. Since the mid-1990s, organizational research has followed two distinct but nonexclusive paradigms of trust research: Together, these paradigms predict how different dimensions of trust form in organizations by demonstrating various trustworthiness attributes. In systems , a trusted component has a set of properties that another component can rely on. If A trusts B,

400-580: A Government employee or to an organisation owned or substantially owned by one or more Government employees. Similar wording was previously included in the Federal Procurement Regulations prior to 1984, with several GAO decisions confirming that an agency does not violate this subpart if neither the Contracting Officer not the selection officer has knowledge of such ownership or business connection. A ratification

500-505: A US certificated aircraft or pilot can fly in Iraq under Special Federal Aviation Regulation (SFAR) 77; if there are very few, or only one, vendor who can participate in this requirement, there are no vendors out there for meaningful competition which is the bedrock assumption of FAR Parts 12 and 13. In view of the above, the airborne recon contract is NOT a commercial service – therefore the use of FAR Part 12 commercial items contracting processes

600-418: A bet on one of many contingent futures, specifically, the one that appears to deliver the greatest benefits. Once the bet is decided (i.e. trust is granted), the trustor suspends his or her disbelief, and the possibility of a negative course of action is not considered at all. Hence trust acts as a reducing agent of social complexity , allowing for cooperation . Sociology tends to focus on two distinct views:

700-434: A collective perception of trustworthiness; this has generated interest in various models of reputation. In management and organization science, trust is studied as a factor which organizational actors can manage and influence. Scholars have researched how trust develops across individual and organizational levels of analysis. They suggest a reciprocal process in which organizational structures influence people's trust and, at

800-657: A decrease in transactional costs can be used as an indicator of the economic value of trust. Economic "trust games" empirically quantify trust in relationships under laboratory conditions. Several games and game-like scenarios related to trust have been tried, with certain preferences to those that allow the estimation of confidence in monetary terms. In games of trust the Nash equilibrium differs from Pareto optimum so that no player alone can maximize their own utility by altering their selfish strategy without cooperation. Cooperating partners can also benefit. The classical version of

900-573: A determination and finding (D&F) (per FAR Subpart 1.7 and DFARS Subpart 237.104) for this DFARS 237.170-2 forbids non-performance-based contracts unless exception done under DFARS 237.170-2 If an agency is hiring experts, read over 5 USC 3109, Employment of Experts and Consultants, Temporary or Intermittent to see if it applies to FAR 37.104(f). Office of Personnel Management (OPM) has established requirements that apply in acquiring personal services for experts or consultants in this manner (for example, benefits, taxes, conflicts of interest), "therefore,

1000-503: A difference between trust and reliance by saying that trust can be betrayed, whereas reliance can only be disappointed. Carolyn McLeod explains Baier's argument with the following examples: we can rely on our clock to give the time, but we do not feel betrayed when it breaks, thus, we cannot say that we trusted it; we are not trusting when we are suspicious of another person, because this is in fact an expression of distrust. The violation of trust warrants this sense of betrayal. Thus, trust

1100-451: A fair and reasonable price obtained for non-commercial services or goods obtained using FAR Parts 12 and FAR 13 under these circumstances. FAR Part 14 details the requirements for conducting a "sealed bid" tender, where federal requirements can be stated "clearly, accurately, and completely" and price is the only determinant of contract awardee. Under this part, Unnecessarily restrictive specifications or requirements that might unduly limit

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1200-568: A fair and reasonable price. In other words, FAR Part 12 was intended to increase the number of competitors available to the US Government by jettisoning all of the unique requirements, including cost accounting systems, which are forced upon Federal contractors by acquisition processes such as FAR Parts 14, 15, 36 etc.; instead, the Federal Government could act more like a normal buyer in a fully functioning commercial market where

1300-424: A friend to arrive to dinner late because she has habitually arrived late for the last fifteen years is a confident expectation (whether or not we find her late arrivals to be annoying). The trust is not about what we wish for, but rather it is in the consistency of the data. As a result, there is no risk or sense of betrayal because the data exists as collective knowledge. Faulkner contrasts such "predictive trust" with

1400-441: A function of the "machine heuristic"—a mental shortcut with which people assume that machines are less biased, more accurate, and more reliable than people —such that people may sometimes trust a robot more than a person. People are disposed to trust and to judge the trustworthiness of other people or groups—for instance, in developing relationships with potential mentors . One example would be as part of interprofessional work in

1500-583: A function so intimately related to the public interest as to require performance by Federal Government employees. These involve the exercise of discretion in applying Federal Government authority or making a value judgement in decisions for the Federal Government, such as monetary transactions and entitlements, determination of agency policy or program priorities, and hiring or direction of Federal employees. See also 10 USC 2331 Procurement of services: contracts for professional and technical services and AFARS 5137.104—Personal Services Contracts. Title 48 of

1600-513: A great extent, therefore deviating in many particulars from the mandatory clause language. See also FAR 12.211, Technical Data; FAR 12.212, Computer Software; FAR 12.213, Other Commercial Practices for additional authority to deviate or "tailor" FAR clauses and provisions in the context of commercial items/services. Part 3 addresses various improper business practices and personal conflicts of interest . Within this section, subpart 3.6 generally prevents government contracts being knowingly awarded to

1700-483: A portion or none of their money to another. Any amount given would be tripled and the receiver would then decide whether they would return the favor by giving money back to the sender. This was meant to test trusting behavior on the sender's part and the receiver's eventual trustworthiness. Empirical research demonstrates that when group membership is salient to both parties, trust is granted more readily to in-group members than out-group members. This occurs even when

1800-420: A process will explain (and allow to model) the emergence of trust. Sociology acknowledges that the contingency of the future creates a dependency between social actors and, specifically, that the trustor becomes dependent on the trustee. Trust is seen as one of the possible methods to resolve such a dependency, being an attractive alternative to control. Trust is valuable if the trustee is much more powerful than

1900-671: A propensity to trust a member of the in-group more than a member of the out-group. It is only advantageous for one to form such expectations of an in-group stranger if the stranger also knows one's own group membership. The social identity approach has been empirically investigated. Researchers have employed allocator studies to understand group-based trust in strangers. They may be operationalized as unilateral or bilateral relationships of exchange. General social categories such as university affiliation, course majors, and even ad-hoc groups have been used to distinguish between in-group and out-group members. In unilateral studies of trust,

2000-733: A proposal. Part 16 identifies the types of contracts available for use in government contracting and the rules governing the selection or negotiation of contract types. Special rules apply to service contracts. They must be performance-based to the extent practicable, with measurable outcomes. FAR 37.102 and FAR Part 37.6 describe performance-based methods. FAR 37.601 has specific requirements for performance work statements (PWS) for service contracts requiring performance-based standards. Agency supplements also require performance-based acquisitions. (See, e.g., DFARS 237.170 Approval of contracts and task orders for services; DFARS 237.170-2 Approval requirements.) Performance Based Service Acquisition (PBSA)

2100-519: A specific service performed or specific outcomes to be achieved. For purposes of these services –7affan (ii) market prices mean current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors. Note the emphasis in the FAR 2.101 definition for for commercial items on established market prices. The reason why Simplified Acquisition Procedures are permitted for items above

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2200-455: A subject of ongoing research. In sociology and psychology , the degree to which one party trusts another is a measure of belief in the honesty, fairness, or benevolence of another party. The term "confidence" is more appropriate for a belief in the competence of the other party. A failure in trust may be forgiven more easily if it is interpreted as a failure of competence rather than a lack of benevolence or honesty. In economics , trust

2300-402: A violation in B's properties might compromise A's correct operation. Observe that those properties of B trusted by A might not correspond quantitatively or qualitatively to B's actual properties. This occurs when the designer of the overall system does not consider the relation. Consequently, trust should be placed to the extent of the component's trustworthiness. The trustworthiness of a component

2400-560: Is DFARS Subpart 231, Section 205, Subsection 22 (cited as "DFARS 231.205-22"). Part 1 refers to a "vision" and certain "guiding principles" for the Federal Acquisition System . The vision foresees "delivery on a timely basis [of] the best value product or service ... while maintaining the public's trust and fulfilling public policy objectives". Compliance with the Regulation , along with the use of initiative in

2500-423: Is a good resource expertise in this particular area. Use of FAR Parts 12 and 13 without rationing of demand through a single commodity control council or finding other solutions is likely to create more problems than it solves. Non-commercial contracting methodology and clauses should be used for any acquisition where Government demand overwhelms civilian supply. It is highly unlikely there will be any cost controls or

2600-636: Is a process and way of defining requirements that yields well written work statements that are outcome oriented and measurable thus enforceable. Deming / Six Sigma style quality assessments and process analysis can help define performance work statements. A Performance Work Statement (PWS) has: The DOD PBSA guide has a "performance requirements summary" matrix which can serve as an outline for work statement provisions. Army Federal Acquisition Regulation (FAR) Supplement (AFARS) has an outline for performance-based service contracts. Additional Resources for PBSA: The Office of Federal Procurement Policy (OFPP) has

2700-601: Is clearly not appropriate in view of the basic reasons commercial item acquisition authority was created by Congress. FAR 2.101, which is concerned with definitions, provides that a commercial item means – (6) services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. This does not include services that are sold based on hourly rates without an established catalog or market price for

2800-600: Is closely governed by the FAR. Nearly every major cabinet-level department (and many agencies below them) has issued such regulations, which often place further restrictions or requirements on contractors and contracting officers. One of the best-known examples of an agency supplement is the Defense Federal Acquisition Regulation Supplement (DFARS), used by the Department of Defense , which constitutes Chapter 2. Chapter 3

2900-466: Is concerned with the position and role of trust in social systems. Interest in trust has grown significantly since the early 1980s, from the early works of Luhmann, Barber, and Giddens (see Sztompka for a more detailed overview). This growth of interest in trust has been stimulated by ongoing changes in society, known as late modernity and post-modernity . Sviatoslav contended that society needs trust because it increasingly finds itself operating at

3000-748: Is contained within Chapter 1 of Title 48 of the Code of Federal Regulations (CFR). Chapter 1 is divided into Subchapters A-H, which encompass Parts 1-53. Chapter 1 appears in two volumes, with Subchapters A-G appearing in Volume 1 while Subchapter H occupies all of Volume 2. The volumes are not formal subdivisions of Title 48, but refer instead to the fact that the FAR is printed by the Government Printing Office in two volumes for convenience. The single most heavily regulated aspect of acquisition

3100-514: Is contract pricing, which is addressed throughout the FAR, but especially in Subpart 15.4, Parts 30 and 31, and Subparts 42.7, 42.8, and 42.17. A large part of the FAR, Subchapter D, describes various socio-economic programs, such as the various small business programs, purchases from foreign sources, and laws written to protect laborers and professionals working under government contracts. The final three chapters of Title 48 (61, 63 and 99) establish

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3200-410: Is different from reliance in the sense that a trustor accepts the risk of being betrayed. Karen Jones proposed an emotional aspect to trust— optimism that the trustee will do the right thing by the trustor, which is also described as "affective trust". People sometimes trust others even without this optimistic expectation, instead hoping that by extending trust this will prompt trustworthy behavior in

3300-469: Is facial resemblance. Experimenters who digitally manipulated facial resemblance in a two-person sequential trust game found evidence that people have more trust in a partner who has similar facial features . Facial resemblance also decreased sexual desire for a partner. In a series of tests, digitally manipulated faces were presented to subjects who evaluated them for attractiveness within a long-term or short-term relationship. The results showed that within

3400-640: Is limited to trust in the father. People may trust non-human agents. For instance, people may trust animals, the scientific process, and social machines . Trust helps create a social contract that allows humans and domestic animals to live together. Trust in the scientific process is associated with increased trust in innovations such as biotechnology. When it comes to trust in social machines, people are more willing to trust intelligent machines with humanoid morphologies and female cues, when they are focused on tasks (versus socialization), and when they behave morally well. More generally, they may be trusted as

3500-455: Is lost by violation of one of these three determinants, it is very hard to regain. There is asymmetry in the building versus destruction of trust. Research has been conducted into the social implications of trust, for instance: Despite the centrality of trust to the positive functioning of people and relationships, very little is known about how and why trust evolves, is maintained, and is destroyed. One factor that enhances trust among people

3600-516: Is not prohibited by law, the ratification is in accordance with agency procedures, etc.; (4) The contracting officer determines that the price paid was fair and reasonable and recommends payment, and legal counsel concurs. There are dollar limits to the authority to ratify unauthorized commitments. A Chief of Contracting Office can approve up to $ 10,000. A Principal Assistant Responsible for Contracting can approve up to $ 100,000. A Head of Contracting Authority can approve higher amounts. Ratifications in

3700-429: Is often conceptualized as reliability in transactions. In all cases, trust is a heuristic decision rule, allowing a person to deal with complexities that would require unrealistic effort in rational reasoning. Types of trust identified in academic literature include contractual trust, competence trust and goodwill trust. American lawyer Charles Fried speaks of "contractual trust" as a "humdrum" experience based on

3800-478: Is one of the most damaging elements in an economic system to investment, capital markets and economic activity. In this case, the effect of driving massive cost inflation directly impacts civilians and non-Government consumers who are also competing for the same goods and services against the US Government acquisition commands; ultimately the deep pockets of the Government win out against the lesser buying power of

3900-443: Is the Department of Health and Human Services Acquisition Regulation (HHSAR); Chapter 4 is the Department of Agriculture's Acquisition Regulation (AGAR); etc. The Department of Veterans Affairs' Acquisition Regulation (VAAR) implements and supplements the FAR. The required format for agency FAR supplements is to follow the basic FAR format. To continue the example above, the supplemental DFARS section on legislative lobbying costs

4000-472: Is the foundation on which these forms can be modeled. For an act to be an expression of trust, it must not betray the expectations of the trustee. Some philosophers, such as Lagerspetz, argue that trust is a kind of reliance, though not merely reliance. Gambetta argued that trust is the inherent belief that others generally have good intentions, which is the foundation for our reliance on them. Philosophers such as Annette Baier challenged this view, asserting

4100-411: Is the proper authorization by a contracting officer of an earlier procurement by a Government employee who was not authorized to do it. A ratification package has a legal memo that says an unauthorized commitment was made, that the commitment could properly have been done by contracting officers, and that funds were and are available for it. Other regulations and agency rules apply too, such as those from

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4200-426: Is to identify markets unaffected by the Government demand and seek to acquire goods and services through that other market. When the situation of overwhelming government demand occurs in a faltering or damaged economy, Government demand that is in excess of what the local vendors can supply to both Government and non-Government consumers should be met by vendors who operate out of the market in question, including through

4300-651: Is truly concerned about them or the relationship. People in low trust relationships tend to make distress-maintaining attributions whereby they place their greatest focus on the consequences of their partner's negative behavior, and any impacts of positive actions are minimized. This feeds into the overarching notion that the person's partner is uninterested in the relationship, and any positive acts on their part are met with skepticism , leading to further negative outcomes. Distrusting people may miss opportunities for trusting relationships. Someone subject to an abusive childhood may have been deprived of any evidence that trust

4400-542: Is warranted in future relationships. An important key to treating sexual victimization of a child is the rebuilding of trust between parent and child. Failure by adults to validate that sexual abuse occurred contributes to the child's difficulty in trusting self and others. A child's trust can also be affected by the erosion of the marriage of their parents. Children of divorce do not exhibit less trust in mothers, partners, spouses, friends, and associates than their peers of intact families. The impact of parental divorce

4500-428: Is wholly inappropriate and not permissible under the applicable laws governing Federal acquisition. Taking another example, what happens when significant research and development is needed to adopt a commercial item for Government use? Should FAR Parts 12 and 13 be used here? Absolutely not. There are no market pricing mechanisms for the non-standard variant – the Government is the only buyer of this particular variant of

4600-629: The Civilian Board of Contract Appeals , the Department of Transportation Board of Contract Appeals, and the Cost Accounting Standards Board, respectively. The Armed Services Board of Contract Appeals has been established by charter within the Department of Defense. The proper way to cite a regulation within the FAR is by part, subpart, section, subsection, without respect to chapter or subchapter. For instance,

4700-549: The neurobiological structure and activity of a human brain. Some studies indicate that trust can be altered by the application of oxytocin . The social identity approach explains a person's trust in strangers as a function of their group-based stereotypes or in-group favoring behaviors which they base on salient group memberships . With regard to ingroup favoritism, people generally think well of strangers but expect better treatment from in-group members in comparison to out-group members. This greater expectation translates into

4800-449: The $ 250,000 simplified acquisition threshold for commercial items is there is an efficient market pricing mechanism which pressures market participants to provide goods and services at a fair and reasonable price which represents very efficient / non-wasteful pricing mechanisms. Generally, the more efficient and well-developed markets have a large number of participating vendors and information is freely available to consumers in that market on

4900-457: The Army discussed below. Ratifications are governed by FAR 1.602-3 (Ratification of Unauthorized Commitments), originally added to the FAR in 1988, which defines a ratification as the act of approving an unauthorized commitment by an official who has the authority to do so. Unauthorized commitment means an agreement that is not binding solely because the Government representative who made it lacked

5000-827: The Code of Federal Regulations Title 48 of the Code of Federal Regulations contains regulations concerning government procurement in the United States . The Federal Acquisition Regulations (FAR) in chapter 1 are those government-wide acquisition regulations jointly issued by the General Services Administration , the Department of Defense , and the National Aeronautics and Space Administration . Chapters 2-99 are acquisition regulations issued by individual government agencies: parts 1-69 are reserved for agency regulations implementing

5100-411: The FAR in chapter 1 and are numerically keyed to them, and parts 70-99 contain agency regulations supplementing the FAR. Trust (social science) Trust is the belief that another person will do what is expected. It brings with it a willingness for one party (the trustor ) to become vulnerable to another party (the trustee ), on the presumption that the trustee will act in ways that benefit

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5200-520: The FAR requires that a clause be included in a government contract, but that clause is omitted, case law may provide that the missing clause is deemed to be included. This is known as the Christian Doctrine , which is based on the underlying principle that certain government regulations have the force and effect of law, and government personnel may not deviate from the law without proper authorization. Prospective contractors are presumed to know

5300-421: The FAR rule on legislative lobbying costs is found at FAR Part 31, Section 205, Subsection 22 (cited as "FAR 31.205-22"). The table of contents, as of the edition published October 1, 2012, is available. As the original purpose of the FAR was to consolidate the numerous individual agency regulations into one comprehensive set of standards which would apply government-wide, the issuance of supplemental regulations

5400-433: The FAR. FAR Subpart 1.4, Deviations from the FAR, provides the steps needed to document deviations from the mandatory FAR or agency FAR supplement. Deviation documentation is needed if there is a precise FAR clause or provision for the issue. The Department of Defense has published many class deviations to enable faster contract actions in war environments. FAR 12.401 allows contracts for commercial items to be tailored to

5500-615: The GSA Schedule system if the damaged market is outside of the United States. Resources and expertise are in the Federal Government that are designed to assist in cases where Federal demand overwhelms civilian supply, one example being the Industrial College of the Armed Forces (ICAF). The ICAF's charter is to maintain the ability to nationalize an economy to achieve strategic objectives or a wartime mobilization, this

5600-410: The Government was but one of a large number of consumers seeking the same or highly similar products or services. However, FAR Part 12 was never intended to apply where the US Government was the only or one of a very few buyers for an item or service not in demand by the commercial market place. What happens when there are very few market participants and the goods or services are not widely available to

5700-417: The Government's remedies in these cases. Specific clauses should be in the contract to deal with Government Furnished Equipment (GFE) situations and bring your own device (BYOD) situations. The authority under FAR Part 12, Commercial Items (and services), must be used thoughtfully and carefully. It is very tempting for a contracting officer to use FAR Part 12 and hence FAR Part 13 in situations where such use

5800-485: The U.S. Army call for a signed statement describing the unauthorized commitment, the value of the procurement, and other documentation. Then a contracting officer is to study the case and recommend action. If the procurement is not ratified, the matter may be handled under FAR Part 50 and DFARS Part 250 ( Public Law 85-804 ) as a GAO claim or some other way. FAR Part 45 provides rules on the Contractor's obligations and

5900-404: The aforementioned affective trust, proposing that predictive trust may only warrant disappointment as a consequence of an inaccurate prediction, not a sense of betrayal. Trust in economics explains the difference between actual human behavior and behavior that could be explained by people's desire to maximize utility. In economic terms, trust can explain a difference between Nash equilibrium and

6000-411: The authority to enter into that agreement on behalf of the Government. A ratifying official may ratify only when: (1) The Government has received the goods or services; (2) The ratifying official has authority to obligate the United States, and had that authority at the time of the unauthorized commitment; (3) The resulting contract would otherwise be proper, i.e., adequate funds are available, the contract

6100-426: The benevolence and integrity of [a] counterpart". Four types of social trust are recognized: Sociology claims trust is one of several social constructs ; an element of the social reality . Other constructs frequently discussed together with trust include control, confidence, risk, meaning and power. Trust is attributable to relationships between social actors, both individuals and groups (social systems). Sociology

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6200-408: The best interests of the other person or the relationship while rejecting a conflicting option which is merely in their self-interest . Trust-diagnostic situations occur throughout everyday life, though they can also be deliberately engineered by people who want to test the current level of trust in a relationship. A low-trust relationship is one in which a person has little confidence their partner

6300-409: The commercially available item. What about situations where Government demand overwhelms the commercial markets supply? In this case, the Government is actually competing against itself because it has swallowed the market whole and usually has multiple requiring activities competing against each other for the same goods and services. This is exemplified in cases where numerous contracting offices demand

6400-474: The context of a short-term relationship dependent on sexual desire, similar facial features caused a decrease in desire. Within the context of a long-term relationship, which is dependent on trust, similar facial features increased a person's attractiveness. This suggests that facial resemblance and trust have great effects on relationships. Interpersonal trust literature investigates "trust-diagnostic situations": situations that test partners' abilities to act in

6500-436: The contract awardee did not comply with the requirements of the solicitation. A successful protest can result in reconsideration of the decision to award the contract or award of the contract to the protester in lieu of the original awardee. Even though a successful protester may not ultimately be awarded the contract, the government agency may have to pay the protester's bid and proposal costs. The Federal Acquisition Regulation

6600-439: The contracting officer shall effect necessary coordination with the cognizant civilian personnel office". Note that personal service contracts are potentially subject to salary caps. "Inherently Governmental Functions" may not be performed by contractors other than a specific Personal Services Contract under the authority of P.L. 86-36 or 5 USC 3109. Inherently Governmental Functions are defined by P.L. 105-270 (FAIR Act of 1998) as

6700-438: The digital economy and the desire to understand buyers' and sellers' decisions to trust one another. For example, interpersonal relationships between buyers and sellers have been disintermediated by the technology, and consequentially they required improvement. Websites can influence the buyer to trust the seller, regardless of the seller's actual trustworthiness. Reputation-based systems can improve trust assessment by capturing

6800-550: The distribution of gains can be used to manipulate the perceptions of both players. The game can be played by several players on the closed market, with or without information about reputation. Other interesting games include binary-choice trust games and the gift-exchange game. Games based on the Prisoner's Dilemma link trust with economic utility and demonstrate the rationality behind reciprocity. The popularization of e-commerce led to new challenges related to trust within

6900-408: The edge between confidence in what is known from everyday experience and contingency of new possibilities. Without trust, one should always consider all contingent possibilities, leading to paralysis by analysis . Trust acts as a decisional heuristic, allowing the decision-maker to overcome bounded rationality and process what would otherwise be an excessively complex situation. Trust can be seen as

7000-428: The first two years of life. Success results in feelings of security and optimism, while failure leads towards an orientation of insecurity and mistrust possibly resulting in attachment disorders . A person's dispositional tendency to trust others can be considered a personality trait and as such is one of the strongest predictors of subjective well-being. Trust increases subjective well-being because it enhances

7100-468: The flow of money, its volume, and its character is attributable entirely to the existence of trust. Such a game can be played as a once-off, or repeatedly with the same or different sets of players to distinguish between a general propensity to trust and trust within particular relationships. Several variants of this game exist. Reversing rules leads to the game of distrust, pre-declarations can be used to establish intentions of players, while alterations to

7200-401: The game of trust has been described as an abstract investment game, using the scenario of an investor and a broker. The investor can invest some fraction of his money, and the broker can return to the investor some fraction of the investor's gains. If both players follow their naive economic best interest, the investor should never invest, and the broker will never be able to repay anything. Thus

7300-448: The in-group's stereotype was comparatively less positive than the out-group's (e.g. psychology versus nursing majors) , in the absence of personal identity cues , and when participants had the option of a sure sum of money (i.e. in essence opting out of the need to trust a stranger to gain some monetary reward). When only the recipient was made aware of group membership, trust becomes reliant upon group stereotypes. The group with

7400-592: The interests of the Government in areas not specifically addressed in the FAR or prohibited by law, are required and expected of all members of the Acquisition Team . The Acquisition Team consists of all those who participate in Government acquisition: The role and operation of those involved as a 'team' in government procurement is defined in FAR 1.102-3 and RAR 1.102-4. The FAR system is intended to promote "teamwork, unity of purpose and open communication". FAR Part 2 defines words and terms used frequently in

7500-410: The law, including the limits of the authority of government personnel. Thus, a mandatory clause that expresses a significant or deeply ingrained strand of public procurement policy will be incorporated into a Government contract by operation of law, even if the parties intentionally omitted it. A contract award can be challenged and set aside if a protester can prove that either the contracting agency or

7600-602: The macro view of social systems, and a micro view of individual social actors (where it borders with social psychology ). Views on trust follow this dichotomy. On one side, the systemic role of trust can be discussed with a certain disregard to the psychological complexity underpinning individual trust. The behavioral approach to trust is usually assumed while actions of social actors are measurable, allowing for statistical modelling of trust. This systemic approach can be contrasted with studies on social actors and their decision-making process, in anticipation that understanding of such

7700-532: The more positive stereotype was trusted (e.g. one's university affiliation over another's) even over that of the in-group (e.g. nursing over psychology majors). Another explanation for in-group-favoring behaviors could be the need to maintain in-group positive distinctiveness , particularly in the presence of social identity threat . Trust in out-group strangers increased when personal cues to identity were revealed . Many philosophers have written about different forms of trust. Most agree that interpersonal trust

7800-425: The non-governmental market participants. In such cases, as the US Government did during World War II, commodity control councils must be established to identify all available sources of supply and ration supply to the various consumers, including US Government consumers, sometimes with price controls (although this is very dangerous because it frequently leads to black markets run by criminals). One solution in this case

7900-447: The number of bidders are prohibited. Subpart 15.6 covers unsolicited proposals, i.e. business proposals offering new and innovative ideas outside the context of innovative proposals invited and offered within a government-initiated procurement procedure. The regulations suggest the executive agencies make provision for acceptance of unsolicited proposals and for prior contact with individuals or organisations contemplating submission of such

8000-409: The observed equilibrium. Such an approach can be applied to individual people as well as to societies. Trust is important to economists for many reasons. Taking the " Market for Lemons " transaction popularized by George Akerlof as an example, if a potential buyer of a car does not trust the seller not to sell a lemon, the transaction will not take place. The buyer will not buy without trust, even if

8100-478: The optimum level of trust that a rational economic agent should exhibit in transactions is equal to the trustworthiness of the other party. Such a level of trust leads to an efficient market. Trusting less leads to losing economic opportunities, while trusting more leads to unnecessary vulnerabilities and potential exploitation. Economics is also interested in quantifying trust, usually in monetary terms. The level of correlation between an increase in profit margin and

8200-449: The original concept of "high trust" and "low trust" societies may not necessarily hold, social trust benefits the economy and a low level of trust inhibits economic growth . The absence of trust restricts growth in employment, wages, and profits, thus reducing the overall welfare of society. The World Economic Forums of 2022 and 2024 both adopted the rebuilding of trust as their themes. Theoretical economical modelling demonstrates that

8300-553: The participant is asked to choose between envelopes containing money that an in-group or out-group member previously allocated. Participants have no prior or future opportunities for interaction, thereby testing Brewer's notion that group membership is sufficient to bring about group-based trust and hence cooperation. Participants could expect an amount ranging from nothing to the maximum value an allocator could give out. Bilateral studies of trust have employed an investment game devised by Berg and colleagues in which people choose to give

8400-820: The personnel rendering the services are not subject, either by the contract's terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the Government and its employees. Advisory and assistance services (A&AS) are permissible (See FAR Subpart 37.2) Personal services are not permissible (See FAR 37.104 and Classification Act) without specific authority to obtain such services (meaning statutory authority) Permissible to acquire expert and consultant services (5 USC 3109 or 10 USC 129b – expert services) or 10 USC 1091 – health services), as well as health services, intelligence, counter intelligence or special operations command operations requirements under DFARS 237.104, Personal Services Contracts and 10 USC 129b – Contracting must do

8500-502: The product would be of great value to the buyer. Trust can act as an economic lubricant, reducing the cost of transactions between parties, enabling new forms of cooperation, and generally furthering business activities, employment, and prosperity. This observation prompted interest in trust as a form of social capital and research into the process of creation and distribution of such capital. A higher level of social trust may be positively correlated with economic development : Even though

8600-416: The public? Let's take surveillance systems in a military overseas contingency environment as an example. Battlefield full motion video is not something that is found in the commercial sector – Wal-Marts don't sell this; moreover, frequently there are special restrictions which impact on commercial firms ability to engage in work of this nature. For example, special FAA Administrator permission is required before

8700-592: The quality of one's interpersonal relationships; happy people are skilled at fostering good relationships. Trust is integral to the idea of social influence : it is easier to influence or persuade someone who is trusting. The notion of trust is increasingly adopted to predict acceptance of behaviors by others, institutions (e.g. government agencies ), and objects such as machines. Yet once again, perceptions of honesty, competence and value similarity (slightly similar to benevolence) are essential. There are three forms of trust commonly studied in psychology: Once trust

8800-446: The rather modest size of the [overall negative relationship] implies that apocalyptic claims regarding the severe threat of ethnic diversity for social trust in contemporary societies are exaggerated." In psychology, trust is believing that the trusted person will do what is expected . According to the psychoanalyst Erik Erikson , development of basic trust is the first state of psychosocial development occurring, or failing, during

8900-507: The referral pathway from an emergency department to a hospital ward. Another would be building knowledge on whether new practices, people, and things introduced into our lives are indeed accountable or worthy of investing confidence and trust in. This process is captured by the empirically grounded construct of "Relational Integration" within Normalization Process Theory . This can be traced in neuroscience terms to

9000-526: The relative merits of each vendor's products and pricing which permits easy comparison of each vendor's products to each other. FAR Part 12 commercial items acquisition authority was intended to take advantage of the WalMart's (R) and Microsoft's (R) of the world where there is no need to go through the extensive, formalistic and resource/ time-consuming process of a fully negotiated procurement, which requires vendors provide cost and pricing information, to verify

9100-511: The same goods and services, unknowingly driving prices up against each other. Frequently in these case, contracting commands accept take-it or leave-it prices from relatively few vendors (compared to demand) who know that these contracting offices are not coordinating amongst each other or establishing commodity control councils to ration demand against the civilian sources of supply. As the US Federal Reserve will attest to, inflation

9200-440: The same time, people's trust manifests in organizational structures. Trust is also one of the conditions of an organizational culture that supports knowledge sharing . An organizational culture that supports knowledge sharing allows employees to feel secure and comfortable to share their knowledge, their work, and their expertise. Structure often creates trust in a person, and this encourages them to feel comfortable and excel in

9300-507: The second employs system-like constructs, such as usefulness, reliability, and functionality. The discussion surrounding the relationship between information technologies and trust is still in progress as research remains in its infant stages. Several dozen studies have examined the impact of ethnic diversity on social trust. Research published in the Annual Review of Political Science concluded that there were three key debates on

9400-420: The subject: The review's meta-analysis of 87 studies showed a consistent, though modest, negative relationship between ethnic diversity and social trust. Ethnic diversity has the strongest negative impact on neighbor trust, in-group trust, and generalized trust. It did not appear to have a significant impact on out-group trust. The authors present a warning about the modest size of the effect, stating, "However,

9500-399: The trustee's actions, the trustor can only develop and evaluate expectations. Such expectations are formed with a view to the motivations of the trustee, dependent on their characteristics, the situation, and their interaction. The uncertainty stems from the risk of failure or harm to the trustor if the trustee does not behave as desired. In the social sciences, the subtleties of trust are

9600-402: The trustee. This is known as "therapeutic trust" and gives both the trustee a reason to be trustworthy, and the trustor a reason to believe they are trustworthy. The definition of trust as a belief in something or a confident expectation about something eliminates the notion of risk because it does not include whether the expectation or belief is favorable or unfavorable. For example, to expect

9700-452: The trustor, yet the trustor is under social obligation to support the trustee. Modern information technologies have not only facilitated the transition to a post-modern society but have also challenged traditional views on trust. Information systems research has identified that people have come to trust in technology via two primary constructs: The first consists of human-like constructs, including benevolence, honesty, and competence, whilst

9800-408: The trustor. In addition, the trustor does not have control over the actions of the trustee. Scholars distinguish between generalized trust (also known as social trust), which is the extension of trust to a relatively large circle of unfamiliar others, and particularized trust, which is contingent on a specific situation or a specific relationship. As the trustor is uncertain about the outcome of

9900-407: The voluntary acceptance of contractual obligations: for example, people keep appointments and undertake commercial transactions . "Competence trust" can be defined as "a belief in the other's ability to do the job or complete a task"; this term is applied, for example, in relation to cultural competence in healthcare . In working relationships, "goodwill trust" has been described as "trust regarding

10000-458: The workplace; it makes an otherwise stressful environment manageable. Management and organization science scholars have also studied how trust is influenced by contracts and how trust interacts with formal mechanisms. Scholars in management and related disciplines have also made a case for the importance of distrust as a related but distinct construct. Similarly scholars have assessed the relationship between monitoring and trust, for example in

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