What kind of contract has been used for given project

Assignment Help Project Management
Reference no: EM131278917

PROCUREMENT AND CONTRACTS MANAGEMENT

Read the Case-Study and answer the questions which follow:

British Broadcasting Corporation - UK
Project type : Digital archive
Project name : The Digital Media Initiative

Synopsis :
Having started operations in 1922, the British Broadcasting Corporation (BBC) is one of the world's oldest and most respected media production and broadcasting organizations. Covering both entertainment and news, the BBC's radio and television productions captured the 20th century as it unfolded. The BBC's archive of broadcast materials is unparalleled and as production continues to this day, the corporation has one of the largest archives of media materials in the world. Delivering content through television, radio, the Internet and via the BBC iPlayer app, the BBC is a brand name that is known around the world.

To improve efficiency when creating new materials, and to allow for better management and integration of archive materials, the BBC initiated the "Digital Media Initiative" (DMI) in 2008. DMI was intended to provide a single tool that would enable video and radio production from raw materials through to final edit. Accessible from staff desktops the system was to standardize the tool used for new production while allowing for improved integration of the vast archive of media materials built up over the organization's 90 plus years.
Without going through a formal tender process, the contract to develop DMI was awarded to the BBC's existing technology provider (Siemens) in 2008. The fixed price contract established a plan that would see the project completed in 18 months at a cost £82M.

In theory a fixed priced contract protects the buyer from cost overruns, in practice this is not always the case as lack of clarity in requirements, changing needs and other real world complications often leave the door open to continual changes that can impact delivery dates and costs. Such was the case for DMI and ongoing challenges creating the system resulted in a Jul 2009 "no-fault" termination of the contract. Bringing the project back in house the BBC revised the timeline and set about completing the project using their own internal technical team. An independent audit report by the National Audit Office at the time made note of the failure to conduct a competitive tender process and made a number of recommendations to help ensure the system could be delivered by the internal team.

As work proceeded still further problems were encountered. Internally there was growing concern at the lower levels of project that senior levels were not being given a true picture of what was happening in the project. Bypassing the hierarchy, one senior technologist eventually wrote a letter to the BBC Trust (the committee with governance and oversight responsibility for the BBC) telling them that they were not being given an accurate picture of the project's true status. According to reports the letter stated that the BBC Trust, the government and other senior parties involved "may have been misled about the true performance of the DMI since it was taken in house".

Sadly the warnings turned out to have merit as the failure to deliver a working system resulted in the project being abandoned in May 2013. Following investigation, Mrs Hodge (the then MP chairing the Public Accounts Committee) described the project as "a terrible shock and clearly completely shambolic" ... "We were told that there were bits of this system that were working, that you were using them. That wasn't true. That just wasn't true." The BBC's Chief Technology Officer was suspended pending an enquiry and £100M was written off.

Contributing factors as reported in the press:
Underestimation of complexity. Ineffective governance structure. Hierarchical organization structure in which accurate flows of information were actively blocked. Failure to conduct an effective tendering process when selecting the original supplier. Lack of contractor oversight. Overstating the benefits of the project. The use of a fixed price contract acted as a barrier that discouraged the BBC from getting too deeply involved in the design stages for fear of triggering change requests thereby nullifying the fixed price.

QUESTIONS
Q.1 What kind of contract has been used for this project? Using the knowledge gained through "Procurement and Contracts Management Unit" explain in detail why was this contract unsuited for the project?

Q.2. What type of contract would you suggest for this project? Justify your reasons explaining the type of contract, its benefits and why it would have suited the Digital Media Initiative Project better?

Q.3. Company ABC is a small community restaurant. As a part of their sustainable initiative they procure organic vegetables from XYZ Farms, which is the country's most popular, high in demand, organic vegetables supplier .

Plot the Supplier Relationship Matrix on behalf of Company ABC as a buyer. Which quadrant would they place XYZ Farms. How should they plan their procurements from XYZ farms?

Format for referencing from print media like books:
FAMILY/SURNAME, Initials. (Publication year in brackets) Book title - italicised or underlined. Series title and volume if applicable. Edition - if not the first. Place of publication: publisher.

Example:
NEVILLE, C. (2010) The Complete Guide to Referencing and Avoiding Plagiarism. 2nd Ed. Maidenhead: Open University Press.

Format for referencing from electronic sources:

Author of website FAMILY/SURNAME, Initials or WEBSITE name if no author is available. (Year - in brackets) Title of website in italics or underlined. Any numbers if necessary or available if website is part of a series. [Online in square brackets] Available from: URL. [Accessed: followed by date in square brackets].

Example:
BBC NEWS. (2008) Factory gloom worst since 1980. [Online] Available from: http://news.bbc.co.uk/1/hi/business/7681569.st m. [Accessed: 19th June 2012].

Reference no: EM131278917

Distinguish cluster sampling from simple random sampling

In what ways is a systematic sample more efficient than a simple random sample? In what way is systematic sampling less representative of the population than simple random

How many words per minute should be able to handle

How long, to the nearest week, should it take the student to achieve 90 words per minute? How many words per minute should the student be able to handle by the end of the co

Which strategies you will implement to meet your goals

Identify which methodologies and strategies you will implement to meet your goals. Provide rationalefor why you did not select some of the other methodologies and strategies

Asset management strategic planning

You are an asset manager for a medium sized company, the primary purpose of which is to provide services or products to industrial and/or domestic consumers. Some examples o

Which of the following is the correct value

The cycle time of the line is 600 seconds and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting lin

What is the corresponding value of pn

Let pn represent the probability that a binary symbol is in error after transmission through the complete system.- If p1 is very small and n is not too large, what is the corr

List the pros and cons of the contract clause

Perform research on the internet, your textbook, a contract at work, or a home contract for a product. In addition, list the pros and cons of the contract clause, why you be

Is the project worth doing

Is the project worth doing? In my job we are often reviewing whether or not we should do something and i think it's important that a project absolutely makes sense to do fro

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd