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

Retirement planning case, We have completed the review of the elements in t...

We have completed the review of the elements in the retirement planning process. We will conclude Part I with a case assignment, which require students to apply what they have lear

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

Assessment of project quality, A ssessment of Project Quality Quality ...

A ssessment of Project Quality Quality management can be measured by having three main components: Quality control. Quality assurance. Quality improvement.

Market testing and commercialization, Question: A company faces a decis...

Question: A company faces a decision with respect to a product (code named M997) developed by one of its research laboratories. It has to decide whether to proceed to test mark

What do you understand by contract management, QUESTION When a company ...

QUESTION When a company is forming long-term outsourcing relationship with another company, the foundation of the success of the venture is a good contract management (a) Wh

Discuss the use of the technique of value chain analysis, QUESTION 1 Po...

QUESTION 1 Porter's five forces model of competition identifies the main sources of competitive forces and assesses the strength of the forces to help the organization craft be

Describe the concept of corporate social responsibility, Problem 1 (a) ...

Problem 1 (a) Describe the concept of Corporate Social Responsibility (CSR) and explain the forms and purpose of CSR as practiced by most organizations. (b) Illustrate with

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

Suggest five smart objectives for the commission, QUESTION a) Mintzberg...

QUESTION a) Mintzberg argues that the word "strategy" has been used implicitly in different ways and provides five definitions. Elaborate on these definitions of strategy b)

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