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

Private documentation/information centres, Private documentation/informatio...

Private documentation/information centres: They belong mainly to private business enterprises, commercial firms, etc., and serve primarily the interests of their own instituti

Explain the factors determining the customer satisfaction, Question A List...

Question A List the different approaches to Quality. Describe Juran's views on Quality Question D a. Explain the factors determining the customer satisfaction.

Case studies in Public sector Management, Writing a case report analysis on...

Writing a case report analysis on public sector management

Physical form of library catalogues, PHYSICAL FORM OF LIBRARY CATALOGUES: ...

PHYSICAL FORM OF LIBRARY CATALOGUES: Over a period of time, library experts have tried to develop different physical forms of library catalogue, such as, bound register form,

Closed loop, . Write a note on tracing a closed loop. What are the ch...

. Write a note on tracing a closed loop. What are the characteristic features of a closed loop?..

Quality improvement, Q uality improvement Quality improvement can be d...

Q uality improvement Quality improvement can be defined as the organised creation of the beneficial change along with the attainment of unprecedented levels of the performance

User needs and use and user studies, User Needs and Use and User Studies: ...

User Needs and Use and User Studies: Libraries, information centres and databanks are now known as information facilities which exist for the benefit of users. The management

What are corals and coral reefs, Question 1: (i) What are corals and c...

Question 1: (i) What are corals and coral reefs? (ii) Illustrate with the help of a diagram the schematic representation of a coral polyp. (iii) Marine tourism is growi

What do you mean by pre-shipment finance, Question 1 When you establish an...

Question 1 When you establish an export firm there are numerous regulations which have to be followed. List the steps in establishment of an export import firm. Describe the proce

Explain any five necklines along with illustration, Question 1 Explain the...

Question 1 Explain the steps in drawing the head and the face of male figure with illustration Question 2 Explain basics of drawing legs and feet of a child with illustration

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