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

Quality planning, Q uality planning Quality planning helps to schedule...

Q uality planning Quality planning helps to schedule all the tasks required to ensure that the project meets the customer needs. Quality plan is necessary to give the customer

Content of a written review, CONTENT OF A WRITTEN REVIEW: Bibliographi...

CONTENT OF A WRITTEN REVIEW: Bibliographic material and important information from sources may  be  recorded on  note book,  to  keep a records of  reference used  for study.

Filing entries - library management, FILING   "A place for everything a...

FILING   "A place for everything and everything in its place" is an old saying. We are aware of the implications of this saying in our daily life. If everything in our house or

Areas of responsibility - library management, Areas of Responsibility - lib...

Areas of Responsibility - library management: The main areas of responsibility of the maintenance section or division are: Taking responsibilities regarding a) the  method

Reference and information access tools, REFERENCE AND INFORMATION  ACCESS ...

REFERENCE AND INFORMATION  ACCESS TOOLS: Libraries have always been engaged in providing services to their users. Maximum utilization of resources is the principle underlying

Essays, LENGTH: 1000- 1200 WORDS : ESSAY Choose one of these essay topics....

LENGTH: 1000- 1200 WORDS : ESSAY Choose one of these essay topics. (Include ABSTRACT AND PLAN for your report or your essay) If you choose to write an essay for this assignment, y

Possible challenges and dark-side of an e-pms, "The use of technology in pe...

"The use of technology in performance management has the potential to increase productivity and enhance competitiveness. We believe that appraisal satisfaction is a key concept tha

Information services - value-added information services, Information Servic...

Information Services: Some of the significant information services which have been evolved as a result of developments in communications are: electronic delivery of documents,

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

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