...Enterprises. Their bid was 18% lower than their nearest competitor, and when I compared prices of the needed components to the prices supplied by current providers they were between 54% and 74% less expensive. However, beyond parts cost reduction we are also interested in establishing long-term co-operative contracts with the vendor. So, apart from determining who had the best price offer, I need to determine whether Morton is sufficiently stable to be relied upon in the long run. So my strategic intention here is to negotiate an agreement with Morton that will be of the greatest value possible to De Havilland keeping in mind our goal of longer-term agreements and reducing the amount of vendors we deal with. A good decision from SSB and the negotiations team will allow De Havilland to achieve this objective. Part 2: Issue Identification De Havilland has been a leading and successful Canadian aircraft manufacturing company. Plans for new airline design were based on the Dash 8...
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...Sealed Bids vs. Competitive Proposals Strayer University Cost and Price Analysis – BUS 315 Sealed Bids vs. Competitive Proposals When the government has recognized a necessity for supply and services, they immediately conduct a market research, and find probable sources of supply. This information is then sent to the contracting officer for procurement. The contracting officer is solely responsible in determining if the procurement may be accomplished through sealed bidding or negotiation. Sealed bidding is the government method to make known of a need by a solicitation named Invitation for Bid (IFB). Negotiation as used in the acquisition process, means contracting through the use of competitive proposals and discussions, between the contracting officer and the contractor. These government solicitations for negotiation are called Request for Proposal (RFP). The solicitation process originates similar for sealed bids and competitive proposals. The contracting officer announces an IFB for sealed bids, and/or a RFP for a competitive proposal, in FedBizOpps. Most solicitations are accessible, and can be copied directly from the Internet. The contractor upon awareness of these solicitations replies by submitting a bid for the sealed bidding, and/or a proposal for the competitive proposal solicitation. Most contractors contemplate sealed bidding as the less pricey, fastest economical procurement method since no time is lost in negotiations. Bids are assessed with...
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...Sealed Bidding vs. Competitive Proposals Compare and Contrast Charles E. Andrews Professor Stephen Bartorillo BUS315 April 28th, 2013 Sealed Bidding vs. Competitive Proposals C. Andrews Sealed bidding is a “process by which government needs are made known by a solicitation called an Invitation for Bids (IFB)”; whereas, competitive proposals is a “process by which the government needs are made known by a solicitation called a Request for Quotation (RFQ) or a Request for Proposals (RFP)” (Murphy, p17, 2009). With sealed bidding there is no negotiation for contractors, therefore the best proposal for the lowest possible price should be offered. Not only does the contractor have to propose the lowest possible offer, but the contractor must be considered responsive and responsible by the contracting officer. Responsive is noted to “have not taken exception to any material aspect of the specification, work statement, or other terms of the proposed contract”; while, responsible is noted to be deemed “capable of performing and meeting the terms stated in the IFB” (Murphy, p17, 2009). Since there is no negotiation with sealed bidding, and the contract is awarded to the lowest bidder who is deemed responsive and responsible, the contractor must be mindful of all of their expenses associated with completing the work to the government’s specifications, as there are no adjustments once the contract has been awarded. By the contractor fine tuning his skill of estimating his...
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...PM598 – Contract and Procurement Management RUHLING MANUFACTURING COMPANY Cyrus Ruhling founded the Ruhling Manufacturing Company in 1901. Until 1915, the firm made electric motors. In 1915, Mr. Ruhling was persuaded by the War Department to take on several defense contracts. Ruhling expanded rapidly. After World War I, Ruhling found itself the possessor of much excess capacity. Cyrus decided to cater to the small but growing home appliance industry. Today, Ruhling is one of the nation's largest appliance manufacturers. Although appliances account for all the firm's sales, a small electric motor capacity has been retained, partly for historic purposes and partly to protect against unforeseen contingencies. Whenever feasible, Ruhling follows a dual sourcing policy. In some cases, three sources may be under contract. Last month, purchasing issued an invitation for bids for 11/32 horsepower motors for a six-month period. Ruhling's estimated price for the motors was $29.00. The quantity estimated was 48,000 motors over the six-month period. Orders were to be placed daily through the firm's automated material requirements planning system, with deliveries to be within one week of release of an order. Three days ago, the bids were opened. They were as follows: Able Electric $30.00 Beta Products $28.00 Gamma Manufacturing $32.00 Delta Electric $29.25 Epsilon Products $30.00 Today, prior to the award of a purchase order, Epsilon Products contacted...
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...Sealed Contracting The method of obtaining government contracts has changed considerably. Sealed bidding is less frequently used now than in the past. However, there are certain situations when sealed bidding is mandatory. According to the Federal Acquisition Regulation when preparing sealed bidding invitations must describe the requirements of the Government clearly, accurately, and completely. Unnecessarily restrictive specifications or requirements that might unduly limit the number of bidders are prohibited. The invitation includes all documents (whether attached or incorporated by reference) furnished prospective bidders for the purpose of bidding. As a result government contract practitioners still must familiarize themselves with processes that call for sealed bidding. In the mid-1990s, Congress made several changes to statutes related to processing acquisition of government contracts. Before these congressional amendments sealed bidding was the standard. In most cases sealed bidding is the preferred method for construction , so if the Seahawk helicopters and Cobra aircrafts are being purchased for that type of business it would be a better option. Negotiated Contracting These amendments gave federal contracting officers more opportunities to award contracts through the newer process competitive negotiation. The process begins when the CO issues a Request for Proposals. The RFP must, include the agency’s need, the terms and conditions of the contract and any other...
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...Three Case Study Questions Trina G. Stevens trinagstevens@bellsouth.net Part III of the Course Project for PM598 Nov10 Contract and Project Management Presented to Instructor Robert Davy of DeVry University December 5, 2010 RUHLING MANUFACTURING COMPANY QUESTIONS Question # 1: Why might negotiation be favored over competitive bidding in certain procurement situations? A buyer or a procurement section of an organization, or business might choose negotiation over competitive bidding when a project is small, not planned, or an emergency. There are some situations in which a buyer would favor negotiation rather than competitive bidding. For example, when the buyer is contracting for part of the seller’s services rather than a product. Also when there are ambiguities involved with the project. Another reason to use negotiation is when cost and risk cannot be correctly identified early within the project. Negotiation is used a lot when there are new, or unexpected ideas introduced to solve a problem within the project. Negotiation is usually cheaper and quicker than competitive bidding. Question # 2a: Considerations of Epsilon's alternative proposal: a. What is the applicability of a requirements contract from Ruhling’s point of view? - Assume that Epsilon will still make a profit resulting from economics of long runs and learning curves The applicability of a requirement contract from Ruhling’s point of view is that they would agree...
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...From the perspective of NGOs: The Basic Documentation required for NGOs to comply with the letter and spirit of law- 1. First get a PAN. After registration of NGO with State Charity Commissioner or Collector or Society Registrar, first thing is to apply for PAN of NGO. Yes, it is mandatory. 2. Registration under section 12A of the Income Tax Act Commonly known as 12A certificate, this registration is NOT mandatory. Purpose of getting this registration u/s. 12A is to get exemption from Income Tax on the Income of the trust, if all the conditions laid down in this section are fulfilled. 3. Registration under section 80G of the Income Tax Act Again, this is NOT a mandatory one. However to give benefit of 50% or 100% exemption on donation to our donors, it is per-requisition to get the registration u/s. 80G of Income Tax Act. It is indirectly benefited to NGOs to raise funds. 4. Registration under FCRA Act (Foreign Contribution Registration Act) If there are possibilities to receive Foreign Funds for projects of NGO, a registration with FCRA department, Ministry of Home Affairs is compulsory. Without FCRA registration, NGO cannot receive any foreign donation or grants. 5. Getting a TAN during the working of NGO at any point of time, if NGO become liable to deduct tax from source, it has to first apply for TAN. Like PAN, TAN application can be made online thought 6. Getting a Service Tax Registration Only when NGO is providing services like consultancy work or research...
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...procedures are governed by internal policies of the entity 2. Procedures are bureaucratic and lengthy in public sector while in private sector lead times are short 3. Competitive bidding distinctively practiced in public sector, in private sector any other sourcing method other than competitive bidding can be applied 4. Public funds are used to meet public sector activities in private sector funds from shareholders are used 5. In public sector unfairly treated bidders are assisted by an appeals board, in private sector aggrieved bidders have no recourse 6. Public procurement is geared towards provision of quality and efficient services, in private sector procurement is geared towards increasing rate of return 7. In public sector supply chain management is more theoretical than practical, in private sector it is practiced 8. In public sector the procurement systems are more manual, unlike in private sector where in most case systems are automated 9.In public sector there are various committees created for the purpose of ensuring transparency and accountability in the process, while in private sector one or very few committees exist. 10. Professional qualifications and membership is highly emphasized while in private less emphasized 11. Negotiation in public sector is limited to 2 committees; in private sector negotiation is intense 12. In public sector distinct procurement methods or procedures are defined in private sector not elaborate 13.In public sector procurement attempts...
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...Manual 2.2 Public Procurement in Pakistan 2.3 No Application in the Provinces 3. USE OF STANDARD PROCUREMENT FORMS 4. STANDARD BIDDING DOCUMENTS 5. COMMUNICATION AND RECORDS MANAGEMENT 5.1 Authority for Correspondence and Communications 5.2 Documentary Records 5.3 Responsibility and Accountability 6. PROCUREMENT POLICY GUIDELINES 7. CODE OF ETHICS SECTION TWO 1-49 STANDARD OPERATING PROCEDURES (See List in Section Two) SECTION THREE 1-17 STANDARD PROCUREMENT FORMS (See List in Section Three) SECTION FOUR ADDITIONAL NOTES TO THE STANDARD OPERATING PROCEDURES (See List in Section Four) ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank AG Auditor General AGPR Accountant General Pakistan Revenue BOC Bid Opening Committee EOI Expression of Interest EPI Expanded Programme of Immunization FPC Federal Procurement Cell GFR General Financial Rules, 1951 GoP Government of Pakistan ICB International Competitive Bidding IFI International Financial Institution ITB Instruction to Bidders LC Letter of Credit LCS Least Cost Selection M&E Materials and Equipment Directorate at MoPW MCP Malaria Control Programme MoF Ministry of Finance MoH Ministry of Health, Islamabad MoPW Ministry of Population Welfare NACP National Aids Control Programme NCB National Competitive Bidding NCP Nutrition Control Programme NHF National Health and Population Welfare Facility NIH National Institute of Health NTBP...
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...Supplier Selection by Damian Beil Stephen M. Ross School of Business July 2009 Abstract: Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm’s financial resources. In return, firms expect significant benefits from contracting with suppliers offering high value. This article describes the typical steps of supplier selection processes: identifying suppliers, soliciting information from suppliers, setting contract terms, negotiating with suppliers, and evaluating suppliers. It highlights why each step is important, how the steps are interrelated, and how the resulting complexity provides fertile ground for ORMS research. Today the average U.S. manufacturer spends roughly half its revenue to purchase goods and services [1]. This makes a company’s success dependent on their interactions with suppliers. The role of procurement managers (buyers) within companies has become extremely important, often involving staggering dollar values: A recent cross-industry survey of companies — in areas ranging from aerospace to semiconductors — placed companies’ average total spend per procurement employee at $115 million [2]. With so much of a company’s money on the line, and increasing reliance on outsourcing of many complex services and products, the job of a buyer is not only important but also challenging. Buyers must define and measure what “best value” means for the buying organization...
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...(“A Power Play For Howard”) Every year, hundreds of millions of U.S. dollars are verbally tossed back and forth during negotiation talks between teams and players. The contract of a player expires and the player may be traded for another player, or essentially bought by another team. The value of a player greatly depends on (a) his playing power and (b) his fan base. In the case of Juwan Howard, a player for the Washington Bullets/Wizards, both his playing power and fan base made him a wanted player by many teams when his contract with Washington expired in 1996. Negotiations became heated, particularly between Miami and Washington, until a miscalculation in the negotiation terms resulted in Howard signing with Washington for another term. Case Summary Juwan Howard was a professional basketball player in the National Basketball Association (NBA) and was looking to renegotiate his contract with his then-current team, the Washington Bullets. This would give Washington the first chance to make an offer. He had the option to renegotiate after 2 years and decided to do so. Washington's new general manager, Wes Unseld, made an original offer of 78.4 million dollars. This was not satisfactory as the open market had determined his worth much higher and many teams joined in on the bidding. The Miami Heat and Washington Bullets (among other teams) started bidding. Miami eventually outbid the others, making an offer worth over 100 million dollars. Howard accepted the contract and...
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...Supplier Selection by Damian Beil Stephen M. Ross School of Business July 2009 Abstract: Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm’s financial resources. In return, firms expect significant benefits from contracting with suppliers offering high value. This article describes the typical steps of supplier selection processes: identifying suppliers, soliciting information from suppliers, setting contract terms, negotiating with suppliers, and evaluating suppliers. It highlights why each step is important, how the steps are interrelated, and how the resulting complexity provides fertile ground for ORMS research. Today the average U.S. manufacturer spends roughly half its revenue to purchase goods and services [1]. This makes a company’s success dependent on their interactions with suppliers. The role of procurement managers (buyers) within companies has become extremely important, often involving staggering dollar values: A recent cross-industry survey of companies — in areas ranging from aerospace to semiconductors — placed companies’ average total spend per procurement employee at $115 million [2]. With so much of a company’s money on the line, and increasing reliance on outsourcing of many complex services and products, the job of a buyer is not only important but also challenging. Buyers must define and measure what “best value” means for the buying organization...
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...1. The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________. Outsourcing The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is outsourcing. Outsourcing is the term used to describe the decision to move any aspect of a firm's operation to an outside vendor. This is frequently done by businesses that want to focus on areas of the business directly tied to their central operation and competitive advantage. Any task that falls outside of central operations can be outsourced. Make-or-buy decisions are focused on helping a business understand whether it is more advantageous to buy a particular part or product from an outside vendor or to produce the part themselves. Keiretsu is a type of supply-chain strategy that focuses on integrating the two strategies of building relationships with a few suppliers and vertical integration. As with traditional make-or-buy decisions, Keiretsu does include purchasing goods from suppliers. However, make-or-buy decisions and Keiretsu would not typically be considered a type of outsourcing. 2. Keeping a product generic as long as possible before customizing is known as __________. postponement Keeping a product generic as long as possible before customizing is known as postponement. This process is very useful when making somewhat generic products (like computers, printers, televisions, etc.). While the external features of...
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...materials are delivered in time to meet production schedules and that they are at the best price to maximize profit margins. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. E-Procurement.gov. helps the government and the citizens realize the vision of growth via profitable B2B e-commerce. The proven platform used by the largest companies in India and the world, it enables trade between companies of different sizes, platforms and locations.To this end,eProcurement.gov.in will provide services like eProcurement, eTendering, eSelling and eAuctions. E-procurement Auction Services offers government departments easy-to-use, web-based solutions for conducting dynamic exchanges in an on-line environment. It provides real-time bidding solutions for buyers and sellers as control, and simplicity to corporate procurement and liquidation processes. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. A general standard solicitation processes would include; requisitioning, public solicitation, receipt of responses, evaluation and contract award. | | E...
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...MA Special Module 2012 ExamREADINESS 170 Intensive Review Questions Ed. The Number One Source of Exam and OntheJob Information STUDY INFORM ATION FOR EX AM CANDIDATES Special Module ExamREADINESS 170 Review Questions Covering Federal Contract Administration ã ExamREVIEW PRO & ExamREVIEW PRESS 2012 All rights reserved. No part of the contents of this book may be reproduced or transmitted in any form or by any means without the written permission of the publisher. Important – Please Read Due to the variety of fonts installed on the users' systems, Acrobat may prompt you to download an additional language component (which is FREE from Adobe anyway). If you receive a message saying that a Traditional Chinese language pack has to be downloaded in order to load this eBook, please click YES to have Acrobat download the update. The size of the update is about 7M. Don’t worry, this download is safe. Table of Contents PRACTICE TEST MODULE 1................................................................................................4 PRACTICE TEST MODULE 2..............................................................................................45 PRACTICE TEST MODULE 3............................................................................................106 PRACTICE TEST MODULE 4............................................................................................167 PRACTICE TEST MODULE 5..........................
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