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

What is the role of communication in culture, QUESTION 1 Explain the me...

QUESTION 1 Explain the meaning of organizational and cultural diversity Why is it important for us to be sensitive to and aware of cultural diversity within your workplace?

What are sbus and how effective are they, QUESTION 1 Discuss the strate...

QUESTION 1 Discuss the strategic decision making process. Support your answer with examples from an industry of your choice QUESTION 2 a) What are SBUs and how effectiv

Organisation - library management, Organisation: In an open access lib...

Organisation: In an open access library which allows users to browse, choose and select books of their interest, shelf organisation and arrangement of books are of primary imp

Model of project management capability, M odel of Project Management Capab...

M odel of Project Management Capability Quality control may be defined as monitoring project results to determine if they conform to the related quality standards. Quality con

Conditions for adopting direct contracting , Conditions for adopting direct...

Conditions for adopting direct contracting  We should adopt direct contracting when:  Extension of existing contracts for works or supply of goods is justifiable on econo

Define creativity, Question 1 What are special events? Give example. Wh...

Question 1 What are special events? Give example. What is meant by vision statement? What are the components of a good vision statement? Question 2 Every bidding doc

Pro-quest international powerpages, Pro-Quest International Powerpages: ...

Pro-Quest International Powerpages: Pro-Quest International Powerpages is another full-text journal database on CD-ROM, offered commercially by the publisher UMI. The UMI(form

Ala rules 2nd definitive edition, ALA Rules (2nd definitive edition): ...

ALA Rules (2nd definitive edition): American Library Association. ALA cataloging rules for author and title entries. - 2nd ed. / Clara Beetle, editor. - Chicago: American Libr

Organisation of information services, ORGANISATION OF INFORMATION SERVICES:...

ORGANISATION OF INFORMATION SERVICES: Documentation and information services are activities that grew out of information needs of user communities engaged in research, industr

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