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

Participative management, Participative Management Umbrella term encomp...

Participative Management Umbrella term encompassing management methods where employees share a significant degree of decision-making power with managers. These include MBO, con

Managerial Economics, Explain the discounting principle. using the discount...

Explain the discounting principle. using the discounting principal calculate the present value of an annuity of five years at rs.500 payments made at the end of each of the next fi

Architecture of library building -library management, Architecture of libra...

Architecture of library building in library management Library activity is a specialised activity and it should be designed so as to carry out this activity  efficiently in a

Human resource management, is it a good process if the human resource manag...

is it a good process if the human resource management adapt the long selection process to recruit the employer

Requirements of resource sharing library network, REQUIREMENTS FOR THE ORGA...

REQUIREMENTS FOR THE ORGANISATION OF RESOURCE SHARING LIBRARY NETWORKS One of the significant aspects that needs attention is that in a resource sharing network, each particip

Procedures and routines - technical processing, PROCEDURES AND ROUTINES: ...

PROCEDURES AND ROUTINES: The procedures and routines in the preparation of documents for use arise out of various activities and operations. These can be listed as follows:

Nature of terms - library management, Nature of Terms: In an analysis ...

Nature of Terms: In an analysis of classification terminology, Prasad (1986) had identified three types of terms - normative, fundamental and associative. Normative terms are

Bibliographic data formats, Bibliographic data formats Bibliographic d...

Bibliographic data formats Bibliographic data formats adopted for exchange of data consist of three basic components:  A defined physical structure: Rules for the arra

Output of quality planning process, O utput of quality planning process ...

O utput of quality planning process Quality management plan is one of the major outputs of quality planning. It describes how the project management team will implement  the q

Medium of communication, Problem 1 (a) Radio as a medium of communicati...

Problem 1 (a) Radio as a medium of communication has advantages over Television and Print media. Explain three advantages of Radio and highlight two situations, with examples,

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