Selected company:
Mechanical and Electrical Construction and Service Solutions (MCC Group) has been recommended as the most suitable sub-contractor for procurement purposes. This recommendation has been done based on the history of the company. In the past, the company has been responsible for reliable delivery of quality projects and high service capabilities. The company has experience in the delivery of infrastructure projects. This falls within the provisions of the company, which requires that the successful procurement company contracted to have had experience in the relevant industry.
Pros and cons of contracting with the source chosen:
Pros:
The pros for the company include its adoption of technology to develop a lean process. This allows the company to deliver at a reasonable cost because many overhead costs have been eliminated because of adopting lean business processes. The company has a history with working in federal projects. Another major advantage for hiring MCC group as a subcontractor is its financial ability. The company total assets mean that it is able to put up over 3200 business eligible actions, which is, double the minimum required by the small business administration criteria (MCC Group, 2016)
The company also has stock valued at over a billion dollars, which is also sufficient to cover the minimum of US$ 133,157,069 required by the small business administration criteria. This allows the company to be able to handle large projects for extended periods. The industry experience the company possesses means that over time it has acquired equipment, technology and the necessary human resources to enable it to handle the project effectively. The experience gained in the industry has resulted in the company adopting the most efficient processes (MCC Group, 2016). This lean approach means that the company is able to offer costs savings of up to 30% of the total project cost.
Cons:
The major disadvantage for hiring the company is that its services might be in demand from other contractors. This is because there is a high demand for infrastructure and technological installations. As a result, the company is always handling large procurement details from various contractors. As more, projects requiring their services arise, it might result in longer waiting times for its clients, which might lead to delays in project delivery. It is generally considered unethical if members of the company attempt to pursue a contract opportunity offered by the company. This is due to a number of reasons mainly non-compliance with competition laws. Members of the company capture team will have inside information on the qualities the company expects from the contractor. This will result in them having undue advantage over other contractors competing for the contract. The members of the capture team also have influence in the awarding of contracts. This means that they will most likely favor contract proposals from companies in which they have interests.
Ethical guidelines to prevent unethical contracting practices and ensure compliance with federal guidelines:
A company bidding for a contract in a federal government project is also expected to comply with all the requirements of the federal government. This includes tax compliance as well as compliance with procurement and labor laws (Cook, 2014). Engaging the services of a company that has not met the minimum requirements might result in a case where legal issues arise. The company capture team must be very thorough in its review of contract proposals from the prospective contractors. The red team must ensure that the proposal is properly edited and clear. In conforming to this, the red team review will look at the following aspects of the contract proposal. The proposal must be coherent. Every section required in the proposal must be clearly written. The proposal must try to be as clear as possible. Although technical terms can be used in the proposal, they should be used appropriately and when necessary. This is because many people, some of whom might not be very proficient with the technical terms involved in the particular project, will review the proposal (Cook, 2014).
The proposal must also comply with the relevant guidelines provided. All information requested by the company must be provided. Proper language must be used in the contract including legal language to protect proprietary information. The contract proposal must also be complete including all the information necessary. The contract proposal should also be consistent. For example, consistent formatting across all the sections is an indication that it has been thoroughly done. Finally, the contract must be correct in terms of grammar. Small issues like incorrect spelling and incorrect grammar should not be present. This is because contracts are legally binding documents and one party to a contract cannot leave unless with mutual consent. Grammar can alter the meaning of a statement and the company will have to go along with the contract if it agrees to it. The red team review therefore plays a very important role in the contracting process as they ensure that the contract proposal presented is correct in all ways (Cook, 2014).
As a guide, members of the company capture team should have no affiliation with any of the companies bidding for contracts from the company. It is also against the law for this type of insider contracting and it creates a conflict of interest (Cook, 2014). A member of the contracting team with an interest in getting the contract will have interests in both parties. This might result in a situation where the individual is compromised and will likely favor the party with most personal benefits. The tendering process must also be transparent. Transparency is very important especially in cases dealing with high value contracts. Transparency ensures that all participants are aware of the process in every stage. This is important in preventing legal hurdles as the process progresses. All the participants will be aware of what was considered and why their bids were probably not successful. Any legal issues arising can be addressed quickly, which prevents a delay of the whole process (Macey, 2011).
Prevention of ethical issues arising:
In order to prevent ethical issues from arising, the company capture team will be required to conduct a background check on the companies bidding for the contract. The contract pre-qualification documents must also clearly state that any breach of the conditions will lead to automatic disqualification for the affected company from the whole process. Checks into the management of the company, and whether the company is any violation of any federal or local laws are included in the background checks. Due diligence will also be carried out on the financial background of the company. A clear framework will also be described through which any complaints concerning the process will be handled. The framework will describe the basis on which protests can be made and the timeframe in which the protests can be made. The framework will also describe how communication with the company will take place. Any company wishing to participate in the process must agree to these conditions before they are shortlisted for pre-qualification (Cook, 2014).
References
Cook, C. W. (2014). Successful Contract Administration: For Constructors and Design Professionals. New York: Routledge.
Macey, J. R. (2011). Corporate governance: Promises kept, promises broken. Princeton, N.J: Princeton University Press.
MCC Group (2016) Mechanical & Electrical Construction & Service Solutions Retrieved 3/1/2016 from: http://www.mccgroup.com/
