Conditions for adopting direct contracting , Other Management

Assignment Help:

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. 

Related Discussions:- Conditions for adopting direct contracting

What are supply bills, Question 1 Corporate Banking represents the wide ra...

Question 1 Corporate Banking represents the wide range of banking and financial services provided to domestic and international operations of large local corporates and local oper

What is the maximum usable frequency for the path, Question: (a) A HF ...

Question: (a) A HF digital radio data link operates over a distance of 1000 km. Depending on transmission frequency, reflection can occur from the F2 region of the ionospher

BEGE - 101, State the distinguishing features of literature as a mode of la...

State the distinguishing features of literature as a mode of language use by citing examples?

Describe the communication difficulties that may exist, Question 1 You ...

Question 1 You have been requested by your Superior to deliver a speech to a hundred parents on the importance of a balanced diet for their children. Describe the communication

Acquisition sources and allocating funds, Acquisition Sources: As ment...

Acquisition Sources: As mentioned earlier, supply is another basic factor. Supply means availability of periodicals / serials for acquisition. Information regarding supply can

Selection and packaging - value-added information services, Selection and P...

Selection and Packaging: Added value is often claimed for information services on the grounds that they bring together, in a convenient form, items of information which would

HRM in HEALTH CARE MANAGEMENT, EXPLAIN THE IMPORTANCE OF HRM IN HEALTH CARE...

EXPLAIN THE IMPORTANCE OF HRM IN HEALTH CARE MANGEMNT

Reference service and literature search, Reference Service and Literature S...

Reference Service and Literature Search  A reference service, according to the A.l.A. Glossary of Library Terms, is "that phase of library work which is directly concerned wit

Writing a contract , Writing a contract  Most commonly used contracts a...

Writing a contract  Most commonly used contracts are developed from earlier contracts that are subsequently modified to fit the situation in hand. Organisations  usually have a

Information and other related concepts, INFORMATION AND OTHER RELATED CONCE...

INFORMATION AND OTHER RELATED CONCEPTS: You may often hear or read in newspapers and other popular magazines about "exponential growth of information" or "explosion of informa

Write Your Message!

Captcha
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