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

Microform reading equipment -library equipment, Microform Reading Equipment...

Microform Reading Equipment -LIBRARY EQUIPMENT-LIBRARY MANAGEMENT Some aspects of  microform reading room and storing equipment are already discussed above. You are going t

Negotiations , Negotiations  One of the most important activities perfo...

Negotiations  One of the most important activities performed by the supply managers is to negotiate agreements or contracts with the suppliers. Although supply management is de

Liqudation, describe the conditions for liquidation

describe the conditions for liquidation

Define personality, QUESTION (A) Define personality (B) Explain, wit...

QUESTION (A) Define personality (B) Explain, with example, the structure of personality according to the psychoanalytic theory (C) Defense mechanisms are unconscious stra

Discuss codes of ethics established by the wto, Question 1: Mention and...

Question 1: Mention and discuss three important codes of ethics established by the World Tourism Organisation regarding tourism development with respect to the facilities pr

Red herring, Red Herring Preliminary prospectus circulated through unde...

Red Herring Preliminary prospectus circulated through underwriters to gauge investor interest in a planned offering that has yet to gain final approval from the SEC.

Organizing an event is extremely challenging task, Question 1 The event...

Question 1 The event manager plays a pivotal role in event management company. Discuss his role and explain the important steps he has to take to ensure a successful event

Ordinal numbers - library classification, Ordinal Numbers: These are ...

Ordinal Numbers: These are used not for the purpose of counting but ordering and mechanising the arrangement of things. For example, participants in a conference can be liste

Assessment of project quality, A ssessment of Project Quality Quality ...

A ssessment of Project Quality Quality management can be measured by having three main components: Quality control. Quality assurance. Quality improvement.

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