What kind of contract has been used for given project
Course:- Project Management
Reference No.:- EM131278917

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Project 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.

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.

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].

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].

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Project Management) Materials
In the current chapter we are in my cultural anthropology class, we explored Balinese cockfighting and Spanish bullfighting as examples of deep play. However, even in these so
Identify five common project risk strategies employed to address threats that your project may face. Give an example of each. Projects are often completed late. Describe the t
The Maximum Amount is a company that specializes in making fashionable clothes in large sizes for plussize people.-  What is the correct interpretation of these findings?
Speculate on at least two time management strategies you can implement to maximize the amount of time you have at your disposal everyday. Explain how these strategies might b
Would your strategy to win business and maintain positive costumer relations involve submitting as many proposals as possible with the goal of eventually winning as much bus
Conduct and finalize their surveys before the date of their Group-work - Seven-Step Process in the Hypothetic-Deductive Method - After reviewing and correcting the questionnai
For the ESR and plasma protein data fit a logistic model that includes quadratic effects for both fibrinogen and g-globulin.- Does the model fit better than the model selected
When Schlosser unilaterally revoked her ‘‘offer,'' Flynn sued for breach of contract. Schlosser claims the approval provision was a condition precedent to the existence of a