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

Elaborate the different types of benchmarking, QUESTION (a) Explain, us...

QUESTION (a) Explain, using examples, the Prevention, Appraisal and Failure (PAF) model for measuring quality costs and briefly assess its potential for use in a service organi

Developing procedures to facilitate recording, Developing Procedures to Fac...

Developing Procedures to Facilitate Recording: In  order  to have adequate account-of what was observed  during observation  some procedurrecordings should be  followed, eithe

Discuss the various stages of the food production cycle, Question 1: Ex...

Question 1: Explain in detail how you would set up an effective and efficient control system for a newly opened hotel. Question 2: Discuss the various stages of the foo

How are newspapers registered? explain in detail, Question 1 How is the pu...

Question 1 How is the public relations industry organized? Question 2 How are newspapers registered? Explain in detail Question 3 Write a long note on the Structure of E

Tools and techniques used for quality assurance, T ools and techniques use...

T ools and techniques used for quality assurance All the tools used for quality planning and quality control are used for quality assurance as well. In addition to these tools

Analyze the crisis scenario, In 2000, various instances were reported in wh...

In 2000, various instances were reported in which Ford owners with Firestone tyres were experiencing tyre blowouts ultimately causing around 150 deaths and over 500 serious injuri

Observation sampling technique, Observation Sampling Technique: Since ...

Observation Sampling Technique: Since it  is usually impossible  to  observe behaviour for extended period of time because of fatigue and boredom  one must plan how and when t

Workers compensation and injury pensions, Question: Worker's compensati...

Question: Worker's compensation and injury pensions: (a) What were the problems encountered by injured workers prior to the Workmen's Compensation Act? (b) How has the

Information may replace inventory., Explain what you understand by this sta...

Explain what you understand by this statement in the context of strategic inventory management.

Important features of planning and design management, Question : (i) O...

Question : (i) One of the important features of planning and design management is the efficient management of resources. According to you, what are these resources and how sho

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