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

Meaning of classification - library classification, Meaning of Classificati...

Meaning of Classification: Systematic grouping of entities (both abstract and concrete) to meet one's requirement is known as classification. Classification lies at the root o

Success in a global knowledge economy, A key to success in a global knowled...

A key to success in a global knowledge economy Knowledge is the key to success. Organisations have to appreciate the competitive advantage of knowledge. Knowledge acquired has

Field sources - source of data, Field Sources: Include living persons ...

Field Sources: Include living persons who have the knowledge about or have been  in  intimate contact with  social conditions and changes over a considerable time. These Peopl

Evaluate cabinet government under the mauritian system, QUESTION 1 Desc...

QUESTION 1 Describe and evaluate Cabinet Government under the mauritian system QUESTION 2 Explain and assess the Prime Minister's prerogative over the dissolution of Pa

Newspapers - library management, Newspapers: Newspapers Of all the lib...

Newspapers: Newspapers Of all the library materials, the newspaper is probably the most comprehensive, the easiest, to collect and the most vanishing type of a source. The new

Describe the various exchange rate systems, Problem: 1. Describe the va...

Problem: 1. Describe the various exchange rate systems. 2. Illustrate the BPO approach and its criticism in detail. 3. Describe the International Techniques of Managing Foreig

Compare and contrast the fundamental and technical analysis, Question 1 ...

Question 1 Explain the characteristics of investment. Differentiate between investment and speculation. Question 2 What do you understand risk and measurement of ris

Rung process, RUNG PROCESS   In a library we classify and catalogue a b...

RUNG PROCESS   In a library we classify and catalogue a book after it is acquired and entered in the Accession Register. After cataloguing the book, the entries will be filed i

Telecommunication technologies, Telecommunication Technologies: Teleco...

Telecommunication Technologies: Telecommunication today involves microprocessors, digitization of information (audio, video and text) and its transmission across communication

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