Acme:

Mechanistic Management Process. Tasks rigidly defined. Strict hierarchy of authority. Vertical communication.
Organic Management Process. Adjusted tasks through team work. Less hierarchy. Horizontal communication.

Omega:

At Acme
Efficient performance Cost efficiency High profits High volume manufacturing

At Omega
Employee satisfaction Enhanced cooperation amongst departments Research oriented

Acme:

Positive impacts

Negative impacts

Greater effectiveness due to tight ship. Lesser integration amongst departments.

Omega:

Positive impacts

Negative impacts

Did not believe in Organization charts. Better integration amongst departments. In case of very tight deadlines, the organizational structure may not produce desired results.

The firms face High-Moderate Uncertainty. The characteristics required in such a scenario are:
Organic structure Participative and Decentralized Teamwork Requires planning orientation and fast response.

Based on the above characteristics, Omega is best suited to produce a better result.

Omega was successful in prototype development and meeting deadlines. Challenges :

Rapid development of prototype Achieve Zero percentage defects

Coordination amongst various departments ensured all the departments were on the same page with their respective responsibilities. Horizontal communication and increased cooperation help in identifying an error in the design.

Because of increased cooperation amongst various departments, they were able to follow the schedule, right up to quality control. Despite having strict rules and regulations, the president of Acme bypassed the quality control tests to meet deadlines, it reflects poorly on the ethics of the company.

Omega should get the final contract due to the following reasons:

Organization structure better suited to collaboration and idea generation. More likely to produce further improvements in the design or manufacturing methods. Likely to improve upon the reliability of the product. Better quality of manufacturing due to ethical structure. Omega ideally implemented Customer Value Management by focusing on improving the value delivered to its customer.

Over the long run, the contract was awarded to Acme because of the following reasons:
Omega did the initial research and provided a better value proposition within deadlines. The product was sufficiently low tech. Once Omega provided the defect free blueprint, the next governing factor would be the cost. Acme capitalized on this opportunity to win the contract.

There could have been two reasons for this:

Acme managed to cut down its cost of manufacturing due to its well defined roles which would generate higher organizational efficiency in repetitive assembly line manufacturing. Omega having offered a better value proposition in terms of quality, grew complacent and failed to improve its offering further.