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

Servqual technique for measuring quality, QUESTION (a) The ISO 9000 ser...

QUESTION (a) The ISO 9000 series of quality management system standard is fast becoming a de facto requirement for doing business in many industries, despite the fact that it i

Steps for shopping (works/goods) , Steps for shopping (works/goods)  No...

Steps for shopping (works/goods)  Now that we are aware of the requirements for shopping, let us understand the steps involved in shopping:  1.  Issue requests for quotation

Choice of bindery- factors to be considered , Choice of Bindery: Factors to...

Choice of Bindery: Factors to be Considered  Outside binders are normally selected through competitive bidding or through free selection. Whatever the case, the librarians sho

Nature of documents - library classification, Nature of Documents: The...

Nature of Documents: The problem of collection, storage and retrieval of documents has been complicated by the following factors: The steady growth in the output of various

Comparative and evaluative survey, Comparative and Evaluative Survey: ...

Comparative and Evaluative Survey: Comparative Survey: Let us  suppose, you wish  to compare the "perceived needs of  rural  and urban women  in order to  find similarities

Catalogue entry, Catalogue Entry   In the case of a library catalogue y...

Catalogue Entry   In the case of a library catalogue you are providing information about a document that exists in the library. This means you are preparing an entry for the do

Rules of thumb for a competitive negotiation, Rules of thumb for a competit...

Rules of thumb for a competitive negotiation:    Stick to your planned target and walk away points.    You are likely to get a better overall deal if you make a larger nu

Explain the term public relations, (a) Explain the term Public Relations (P...

(a) Explain the term Public Relations (PR) as per the British Institute of PR and illustrate the relevance and interdependence of i. PR and marketing and ii. PR and adverti

Assignment Operation Management, Prepare a lean Manufacturing plan or proje...

Prepare a lean Manufacturing plan or project in your work place. how this project going to benefited you and the company. you should perform real case that is ongoing or planning t

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