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

Research tools - library management, RESEARCH TOOLS: Questionnaire and...

RESEARCH TOOLS: Questionnaire and interviews are probably the most  frequently used  data collection methods  in  rlursing research. Observation  is also an  important method

How three-tier architecture can be used to implement an erp, QUESTION (...

QUESTION (a) Define the term ‘Business Process Re-engineering (BPR)' and explain the role of BPR in the context of Enterprise Resource Planning (ERP). (b) ‘Firms sometimes u

Organizational behaviour, A large unit manufacturing electrical goods which...

A large unit manufacturing electrical goods which has been known for its liberal personnel policies and fringe benefits is facing the problem of low productivity and high absenteei

What is an attitude, QUESTION 1 Personal attitudes can have a key beari...

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

Contract close-out, C ontract  close-out:   Contract  close-out  be...

C ontract  close-out:   Contract  close-out  begins  with  checking  for physical completion, i.e., whether all services have been performed and products delivered. Closeout

Stock verification - library management, STOCK VERIFICATION: Stock ver...

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

Probability sampling, Probability Sampling: Probability sampling invol...

Probability Sampling: Probability sampling involves the use  of  random selection process  to  select a sample  from members  or  elements of a population. The goal of probabi

What are the characteristics of an effective work team, You are the Managin...

You are the Managing Director of Sincerity Co. Ltd. Located in Mauritius, your company is involved in the manufacturing of technological products sold locally and some are exporte

Need for several entries - catalogue entry, Need for Several Entries   ...

Need for Several Entries   A library catalogue can just meet any one type of user's approach like author approach, title approach, etc. We can also prepare catalogues, which ca

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