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

Assignment, Mention the characteristics of Statistics. Explain any two appl...

Mention the characteristics of Statistics. Explain any two applications of Statistics.

E-banking and e-trading, a) In order for customers to use online banking se...

a) In order for customers to use online banking services, they will require to have for example a personal computer and an Internet connection. Their personal computer becomes thei

Card catalogue cabinet -library furniture-library management, Card Catalogu...

Card Catalogue Cabinet -library furniture-library management This is perhaps the most important piece of equipment in a library used frequently by both the library staff and t

Housing start, Housing Star t This is the beginning of the cons...

Housing Star t This is the beginning of the construction of a new housing unit. Housing starts are used as an indicator of economic development, since if there is raisi

Library organisational structure -library management, LIBRARY ORGANISATION...

LIBRARY ORGANISATIONAL  STRUCTURE   OBJECTIVES  We have learnt in Unit 1 that an organisation has to be structured in order to achieve its goals and objectives. In this

Short-turm financing, What are the three approach to the short-term financi...

What are the three approach to the short-term financing problem and provide relevant examples for each ?

Fixed interest bearing instrument, QUESTION When an investment is made ...

QUESTION When an investment is made in a fixed interest-bearing instrument, the risk is that the secondary market rate at which these instruments trade will increase, with a re

Audio-visual materials, Audio-Visual Materials: Audio-Visual Materials...

Audio-Visual Materials: Audio-Visual Materials No comprehensive bibliography exists at present for identifying and selecting useful audio-visual materials. One series  of inde

Operation management, types of manufactring systems in operation management...

types of manufactring systems in operation management

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