Conditions for adopting direct contracting , Other Management

Conditions for adopting direct contracting 

We should adopt direct contracting when: 

  • Extension of existing contracts for works or supply of goods is justifiable on economic grounds. For example, there is an existing contract (awarded through NCB) for the construction of 20 kilometres road by the Public Works Department (PWD). While the construction is in progress, PWD decides to construct a bye-pass road of length1.5 kilometres of the same specifications. Rather than inviting fresh bids for 1.5 kilometres of road (for which the mobilisation costs would be high), this length of road could be awarded at the same rates as of 20 kilometres road to the existing contractor on a direct contract basis.  
  • We standardise equipments. We can illustrate this with an example; let us consider that an organisation has 200 passenger cars of specific model of a particular manufacturer. The organisation wants an additional 10 passenger cars for new recruits. If the organisation chooses to go for procurement by open bids for these additional cars, they may end up procuring cars of a different model and different manufacturer. This will lead to maintaining different inventory and different service engineers, which is not in the best interest of the company. 
  • Proprietary equipment (those equipments which are known to be manufactured by a single manufacturer only, for example, a scientific equipment of a particular specification which is manufactured by a particular manufacturer only) and spares of that equipment are already with the purchaser (to achieve optimum operation efficiency).  
  • There is a need for early delivery to avoid costly delays (as in the case of breakdown of equipment resulting in heavy operational losses). 
  • Exceptional cases like natural disaster such as flood, earthquake, and so on occur. 
  • We purchase books, periodicals from publishers; software from the developers or producers, and works of art. 
  • We purchase  published data (such as meteorological data, satellite imageries, and so on) from a Government agency. 
  • Contracts awarded to NGOs in the interest of project sustainability, achieve certain social objectives of project, utilisation of local know-how and materials. 
Posted Date: 9/27/2012 8:40:02 AM | Location : United States







Related Discussions:- Conditions for adopting direct contracting , Assignment Help, Ask Question on Conditions for adopting direct contracting , Get Answer, Expert's Help, Conditions for adopting direct contracting Discussions

Write discussion on Conditions for adopting direct contracting
Your posts are moderated
Related Questions
what is the definition for stock exchange

QUESTION 1 Personal attitudes can have a key bearing on how individuals function within organizations. Attitudes may reflect in either positive or negative behaviours (a) Wh

Supplies  The supplier is responsible for the delivery of goods/services that are ordered/contracted to him as per the order. However, purchaser has to ensure the goods are del

Pamphlets-binding policy for libraries: Pamphlets are paper covered materials of  fewer than fifty pages. Most libraries collect pamphlets and if these materials are to be use


Managerial W riting This provides a channel for management communication. Writing is a means of communication. It has specific advantages and disadvantages.  Advantages

Develop negotiating strategy and tactics  These are two dimensions of the negotiating process. They are:  Strategy:  It has a long term focus. It is a predetermined app

Question 1 Explain any five common entrepreneurial traits Question 2 Write a sort note on SWOT analysis Question 3 Explain any five sources from which an entrepren

Question : (i) Define Hospitality and identify its characteristics. (ii) What do you understand by the term "Pineapple tradition"? (iii) Identify 5 factors that are c

STOCK VERIFICATION: Stock verification implies the physical check up of the articles on record. This is a common practice in all  organisations whether private companies or go