Casturn Systems

First, the top solution is not to enter into a single source procurement situation in the first place. It is very important for the public procurement there is no charge of corruption can be levied at either party, government or organization should rigorously review their purchasing strategies to ensure that this does not happen.

Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a

The United States government is the largest single purchaser of goods and services in the world. Even during times of economic hardship, the US continues to dump billions into the private sector. The federal procurement spending rate of growth has surpassed the rate of U.S. inflation every year, since 2000. With annual federal procurement budgets of more than $400 billion, it is no surprise that the competition for government contracts has increased tremendously. Consequently, more and more companies are trying to get a piece of the action. When these companies adhere to all of the required regulations and statutes, they expect their proposals to be evaluated and the contract awarded in

The Truth in Negotiations Act was passed on December 1, 1962 requiring government contractors to submit cost or pricing data if the procurement met specific requirements in order to establish that the offer is fair and reasonable. The history of The Truth in Negotiations Act will set the stage for its significance in the twenty-first century. Prior to World War II, the United States government conducted its bidding process for procurement in an open bid environment. What was required for a bid was a complete description of the requirement, two or more suppliers capable and willing to complete the requirement, a selection based on price competition and sufficient time to prepare a complete statement of the government’s needs and terms.

Due to a human mistake, Ron Engineering’s submitted tender was $750,058 lower than the next lower tender.

There was no formal bidding process. In addition, it appeared that not all bidders were treated equally. This can be seen when the bidding process was opened back up after the contractors were narrowed down to

Sealed bidding is a procurement method used when the best value is expected to result from the selection of the lowest evaluated offer. Generally competitive sealed bidding are used to procure supplies and services except when price is not the determinative element in the

*the City's requirements that a percentage of the project be done by local and minority talent hamstrung BAE to deliver. They were forced to hire subcontractors resulting in longer times and higher costs.

Global business environment has become more unstable, supplier negotiations have taken important new role on helping improve corporate competitiveness. The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to find new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community and a good relationship.

Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making

b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.

Question You are a project management consultant assigned to a small manufacturing firm that has been experiencing a myriad of problems. After conducting interviews and fact-finding with key managers, you have observed the following:

In ascending and sealed bid auctions, there is the risk of the “winners curse” which may weaken biddings in auctions. Winners curse occurs when the winner of the good bids significantly higher than the true value of the good, which in turn causes them to be worse off. It’s understood that the smaller/weaker firms to the industry have to be epically cautious, as they are only likely to win when they have overestimated the value by even more than usual. The advantage bidder can be less cautious, since beating very cautious opponents does not imply they have overestimated the value. Hence, the advantaged bidder most likely wins generally paying a low price(Klemperer,1998).

(Lewicki, 2010, p. 585) Fontaine and Gaudin did not prepared to negotiate the full contract. They did not anticipate nor prepare to resolve additional issues. Due to their inexperience, Fontaine and Gaudin were not the correct pairing to conduct the renegotiation, as well, they did not have decision making authority. They had to contact senior level management in order to reach a final agreement. This delay extended the negotiation timeline. Adding to the already stressful situation, the prospect of losing Reliant as a consistent client prosed a potential major issue, especially relating to supply as it would be difficult to identify another client to fill the former demand level. Also, Pacific senior leaders delayed their decision to expand into PVC products, over a year. This delay created uncertainty with the forecast for VCM and derivate products, which had a negative marketing impact for one of the top essential products. Also, contributing to the list of weaknesses, Fontaine’s definition of a successful negotiation differed from the corporate office, in that, he linked a successful negotiation outcome to keeping Reliant as a client by extending the current terms of the contract, solely. However, just as important, Fontaine neglected to take into account all the other potential issues or points of

of a low bidder to do a project, even though most procurement rules state that