Ruhling Manufacturing Company Essay

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

This paper will explore how Sealed Bidding and Competitive proposals compare against each other. In order to compare them one must understand how, when and why each topic is used. The primary source of federal procurement information and guidance is the Federal Acquisition Regulation, which consists of Parts 1-53 of Title 48 of the Code of Federal Regulations (CFR). FAR parts 14 and 15 explains in full detail Sealed Bidding and Competitive Proposals. This paper like the federal government will rely heavily on the FAR as a source document to help explain the details of this topic.

The second stage is market/commodity this needs to be taken place after the buyer has got the buyer needs to a high specification to ensure that at this stage the right product is chosen. At this stage the procurement department need to research all options available within the market. By getting an estimate of what is on the current market, it enables the buyer to pick out potential suppliers also familiarising the buyer with the competition in the market. This is also the stage where the procurement department would be able to look into conducting an analysis on how they are going to achieve the product i.e. make or purchase it/ utilize the service. By conducting market research it gives stakeholders a clear picture of the market.

Once I have a clear Statement of work and the previous vendors are interested in bidding; I will compete this procurement to the best practices of government procurement are achieves.

However, there are other important factors that the federal government insists that contracting officers evaluate in the selection process. The contracting officer must decide if the cost/non-cost criteria is either significantly more important that cost or price; approximately equal in importance of cost or price or significantly less important than cost or price (Compton. 2010, p.113). Vendors are informed of the results after the contract has been awarded. There are circumstances in which the

This guide acts as a replacement to the earlier Air Force Material Command FAR Supplement with the intention of making it better than its predecessor. The scope of this document is to provide information on the necessities of developing prices and then devising of mechanisms to determine the fairness of the prices. It is with this precedent that the document goes back all the way from the historical behavior of factors that affect the prices up to the final price. The Price Negotiation Memorandum is the legal document that is used officially to determine any price, which cannot be set based on competition. In any contract, this document becomes the legal, binding document for all parties. These properties of the PNM also apply to the

Contracting Officers within the Federal Government are tasked with negotiating contracts for goods and services with the contractor that is best able to satisfy that particular requirement in terms of quality, timeliness and cost. Best value analysis strives to apply good business judgement to making source selection decisions. It seeks to isolate technical differences between proposals to determine which offer represents the best value to the customer. The Federal Government is steadily moving away from awarding contracts purely on the basis of low price and opting to employ evaluation factors such as past performance, management capabilities and technical superiority. Confidence

The process of choosing a contractor in a competitive acquisition process can be regarded as an issue of information processing where the decision-maker gathers information from competing firms, evaluates each alternative based on established criteria, and determines the best firm or alternative based on the results of the evaluation. While there are various processes that are used in contracting such as sealed bidding and negotiation, the process of choosing the best contractor is relatively the same in these methods. The acquisition or contracting process is usually based on competition since competition is widely recognized as the foundation of every free market system.

4.. Consider a firm facing a make-or-buy decision, Provide 2 potential benefits and 2 risks that the firm may face from outsourcing. Similarly, provide 2 potential advantages and 2 disadvantages of in-house production.

Observing the descriptive statistics of evaluation criteria shows that there is a huge range within the cost, technical proposal, and safety. Technical proposal has a dominant role in BV procurement in DBB projects. Cost comes up with the third rank same as interview with the maximum of 40%. The reason is that all of the collected projects procured with BV. Technical proposal and PPI gain the first (48%) and second rank (45%), respectively despite the fact that collected projects were delivered with DBB. In order to give statistical responses to the research questions as well as test the hypotheses, the descriptive analysis and inferential tests were demonstrated with the IBM SPSS 24.0 software package. Pearson’s correlation test was used to examine the relationship among the bid cost and other evaluation criteria with satisfaction of assumptions that data were normally distributed.

An important goal of any procurement process is to increase competition which is correlated to value for money. By increasing competition, goods and services are likely to be obtained at the best price. A plurality of independent parties participating in the process thus makes it possible to arrive at an economically prudent cost since purely market forces determine price (More efficiency). Corruption and Collusion as a social canker and illegality reduces competition and thereby value for money. Hence, all major procurement players frown on any appearance of corruption and collusion in the procurement process.

The vendor bid analysis suits the need whenever all the material or resources are deployed from third party vendors and project is managed by internal team. This is one of strategic approach to enable better efficiency.

It is reported that tendering and post tender negotiation are primary components of management of purchasing and supply. According to CIPS conduction of the post, tender negotiation process should be the responsibility of the purchasing professional and as such, those individuals should participate in the necessary training programs to effectively do so. Post-tender negotiation when it is ethical and professional is held as an appropriate method of securing value for the money spent. It is recommended by CIPS that bid clarification "detailed discussion about the offer should usually comprise the final stage after receipt of tenders and before contract award; it will normally lead to improved value being obtained." (CIPS, 2013)

Suppliers products can be differentiated to the point of bringing brand loyalty amongst customers, thus making it hard to switch suppliers for the customer.

This write up is aimed at discussing the functions of procurement in organisations, its strategies and focus, the reasons for procurement growth in organisations and the need for its strategic alignment with the corporate strategies while also focusing