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

Halo effect, Halo Ef fect Halo effects refer to drawing a gener...

Halo Ef fect Halo effects refer to drawing a general impression of an individual based on a single characteristic. For example, if a person is well-dressed, you might s

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

Relationship between values and organisation culture, Question: A stron...

Question: A strong and positive culture helps develop the consensus needed for organisations to cope well with changing environments. (a) Describe what is meant by organisat

Case let r2 of Org. Behaviou, If you were one of the other foreman, what co...

If you were one of the other foreman, what could you do to make Rajinder''''s transition easier.

What is standard deviation and how is it measured?, Question 1 What are th...

Question 1 What are the advantages and disadvantages of case studies? Question 2 In a research paper, what is meant by the Method Section? Explain Question 3 What is sam

Acquisition motives, A c quisition Motives In the previous unit you l...

A c quisition Motives In the previous unit you learnt about the history of M and A. All the companies do not always have acquisition strategies, and not all companies that ha

Size of sample, SIZE OF SAMPLE: Large  samples are more  representativ...

SIZE OF SAMPLE: Large  samples are more  representative  of the population of interest than the sinall  samples. There  are no specific  rdes for determining the desired sampl

Information analysis, Information Analysis: Information analysis is do...

Information Analysis: Information analysis is done for improving the authenticity and usability of information. This is done by specialists in the concerned subject areas keep

Define experimental method, QUESTION 1 Write short notes on the followi...

QUESTION 1 Write short notes on the following (a) Observation method (b) Pavlov's classical conditioning (c) Experimental method (d) Reinforcement QUESTION 2

Components of hrd-hrd process, HRD Process HRD is a continuous proces...

HRD Process HRD is a continuous process and not merely a set of planning, and setting of mechanisms, instruments, techniques, etc. The mechanism and techniques such as perfor

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