Procurement Plan, Research Paper Example
Words: 1709Research Paper
Developing an effective procurement plan and aligning it with the suitable bidding method is a process that requires open and competitive process. This is to ensure high integrity and avoid any irregular means that may tamper with the process (Jank, & Zhang, 2009).
In hiring technicians for installing and configuring the organization’s software the procurement manager will need to use comparative sealed bidding method because it is regarded as the most competitive and fastest method of bidding. The method is also time conscious due to o time wastage in depth discussions as well as been the fairest. Another possible bidding method that the procurement manager considered to use but it was not that better compared to sealed bidding was suicide bidding. The reason the manager not using it was due to its risk and high chances of resulting to work of poor quality since it is a bidding method of carrying out work for less than what it could cost. Sealed bidding method will integrate easily with the rest of the project due to its provision of clear as well as definitive commitment. The method has no space for any kind of trade-off factors pertaining to non-prices in the process of evaluating bidding responsiveness.
After the bidding process in hiring technicians for installing and configuring the organization’s software, I will ensure the quality of the final product is measured effectively by supervising the bidder closely and ensuring that all procurement contractual terms are met. I understand in supervising the bidder to ensure quality service is provided I may face some challenges especially on much time that will spent on area instead of concentrating on other matters. I will need to plan my work schedule properly to ensure that enough much time is allocated on the supervision and adequate time is spent on other wok related activities in order to effectively over calm the challenge on time management.
In hiring a training entity to teach the students project management mechanics of using the new tool, the procurement manager will need to also use sealed bidding method of competitive bidding. This is because fair and equitable competition is very important in hiring of the training entity considering in mind that this is the person who will provide skills on the usage of the new tool. Other method of bidding that was available for use is comparative construction bidding because it is also competitive and fair but due to it been associated with construction processes the manager decided to skip it.
The method will also be effective in integrating with the rest of work because several sealed bids will be received and award is likely to be made according to the basis of the factors relate to the price therefore giving the procurement manager enough space to be able to choose the one that is integrated with the project objectives. Due to competitiveness that goes with sealed method of bidding, I understand selection of the right bidder in the hiring of training entity, the quality service provided will be enough although challenge of time spent on submission and evaluation of the right sealed bidder may cost the cost the project a lot time. Discussions are not available and in some cases, I may not understand well some terms and clearness of the bidder therefore to avoid this I will provide well-structured requirements that need to be indicated by the applying bidders. Time will also need to be allocated in the process to avoid any interruptions and this will be helpful in overcalming that challenge.
In buying a new server and software to run the tool and house the project database, virtual bidding will applied because it is the best suitable biding method related to electrical and electronic systems. The projects’ new server and the software need to be provided through virtual bidding because broad knowledge is very crucial in understanding the regulation of independent systems and trends in the physical market of power systems. Another bidding method that will be available in the purchase of the new server and software to run the tool and house the project database is sealed bidding. This is because it is regarded as the most competitive and faster method of bidding as well as been fair and ensuring equitable competition according to research conducted byYang, Kahng, & Barabasi, in 2003. Despite this, I discovered adequate requirements needed in the process of buying a new server and software to run the tool and house the project database will not be met under the method of sealed bidding. The method will integrate with all other systems because it highly prevents physical delivery in subsequent markets and this is an indication that all other systems will be combined together. Integration is also due to creation of appropriate avenues for promoting reliability as well as avenues for arbitrage. This method of bidding will in future ensure that the organization’s project does not go into loss because implicit virtual positions are present and that price determination as well as continuous feasibility tests is in the right position. This will be helpful in reducing market inefficiencies in the market therefore ensuring that the quality required will be in high quality needed to effectively develop the project (Milgrom & Weber,1982). The method is likely to get challenges and especially on the fact that the method can result to grid operators therefore creating difficulties on how to ensure that it effectively integrates with other systems of the project (Dass & Reddy, 2008). To avoid the challenges I will ensure that I identify all virtual trades that confer physical bids with specified financial bids because this will help in preventing any speculation related to finances and as well ensure reliability of the system.
In the process of hiring tool usage experts to transfer knowledge to the project management student about the use of the tool on the job for the first 60 days after going live, the procurement manager will use suicide method of bidding although I understand I will face criticism for using the method. In this process of hiring tool, usage experts to transfer knowledge to the project management students’ suicide bidding will be suitable because it will ensure the company keeps its motive in the skilled labour the project employs despite the losses or breaking of the project ADC organization may face. The other bidding method that I was intending to use was comparative sealed method of bidding but I dismissed it on the fact that I had to ensure retention of the organization is skilled no matter what the result could be contributed by the project. This method of bidding when used in hiring tool usage experts to transfer knowledge to the project management student about the use of the tool on the job for the first 60 days after going live will be able to integrate with all other systems because of the commitment by the workforce.
Under this method, ensuring that the quality of the projects product and service is maintained will be a high challenge. This is because of the views shared that discourages the use of the method for its objective in focusing in lowest prices rather than focusing on the best value provided. Therefore, I will ensure that despite consideration of lower prices, quality and value is also evaluated to estimate the value that will be achieved and to make sure that it does not result the ADC organization to loss. I expect to face several challenges while evaluating the quality and mainly possibility of poor service, contract loopholes, contractor insolvencies etc. other challenge is possibility of resulting to financial collapse of the organization. To avoid this, I will ensure that contract negotiations are effectively carried out between the successful and I on how a better value can be gained despite the bidder been of the lowest price. Evaluation of the value to be achieved will be evaluated against the value that was to be achieved if the organization chose the bidder with highest price so that negotiations on how to effectively close that gap can be achieved. The organization is also going to ensure that the organizations’ workforce s is fully committed to providing the quality required so as to ensure that the quality measurement is not under low scores.
In Planning for the removal and disposal of scheduling tool software and hardware that are no longer be used, I will use sealed method of bidding method because it is regarded as the most competitive and fastest method of bidding. The method is also time conscious due to time wastage in depth discussions as well as been the fairest (Anwar, McMillan & Zheng, 2006). Another possible bidding method that the procurement manager considered to use but it was not that better compared to sealed bidding was virtual bidding. The method of sealed bidding will be able to incorporate with other systems of the project because it provides an environment whereby commitment is the key factor been sought after in evaluation of bidding responsiveness. I am confident that after the bidding process of planning for the removal and disposal of scheduling tool software and hardware quality of the final product will be measured effectively. This will be through supervision of the successful bidder to ensure that all procurement contractual terms are met effectively.
The possible challenges that will need to be over calmed when measuring and ensuring that quality is maintained are challenge of time spent on submission and evaluation of the best bidder. Absence of discussions may lead to lack of clarity on the clearness of the bidder. This can be avoided by providing well-structured specifications that the bidders should comply with and will therefore result to overcalming the challenge.
Anwar, S, McMillan, R, & Zheng, M (2006). Bidding behavior at competing auctions: evidence from eBay. European Economic Review
Dass, M, & Reddy, K (2008). An analysis of price dynamics, bidder networks and market Structure, Statistical Methods in Commerce Research. Wiley, New York.
Jank,W, & Zhang, S. (2009). An automated and data-driven bidding strategy for online auctions, Technical Report, RH Smith School of Business, University of Maryland.
Milgrom, P & Weber,R. (1982) A theory of auctions and competitive bidding. Journal of Econometrica
Yang, I, Kahng, B, & Barabasi, A, (2003). Emerging behavior in electronic bidding. Physical Review.
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