Procurement contract award letter
P. O. BOX. 678906-00567
14-estate New York Road
Telephone 0921 4423031
RE: NOTICE OF CONTRACT AWARD (FILE SERIAL NUMBER 5670, CONTRACT BID FROM BLUE LINKS MERCHANTS)
On behalf of Maryland industry in New York, I am happy to inform you that a consensus has been reached about your tender, which sailed through successfully. The published evaluation criterion was used to evaluate the tenders that the company received. Your bid emerged as the most significant, economically. You will find three copies of the agreement, enclosed for signatory purposes. Please return them to the company before the end of the standstill period through the address that has been provided. Failure to comply with the standstill period will result in the recession of the tender. After the execution of the agreement, a copy will be sent to you for record keeping. As stated by sec 31(2) of public contracts, evaluation results should be dispatched to the right people in the organization only (Dymond, 2002). The standstill period will end on 8/8/2016. I confirm that this letter is from our company but does not act as permission to start the operations. Maryland Industry Ltd. will not be held liable for any activities that you may choose to take, based on the information outlined in this letter. Any actions taken before the expiry of the standstill period will be at your financial and other risks.
Tony Bruce
Maryland Industry Ltd CEO
Procurement risks
All procurement projects have some risks that need to be mitigated to obtain the best results. The delay in delivery by suppliers is the primary danger in this project. It puts the company at a risk of dependence on them. Suppliers can leverage buyers by an increase in prices, restraining new technology, offering low-quality products. Poor quality work, due to the lack of proper training to employees by development teams, which increases errors and bugs, is another risk.
In this project, delay risks have the highest probability of occurrence, among other risks and have a potential impact of delaying the implementation of new processes. The risks, errors and bugs could have a low probability of occurrence if continuous testing is done. If no measures are taken, they have potential impacts of reducing the quality of products, which will result in a low market and reduced product prices. The estimated cost for the mitigation of this risk is $6200.
Procurement management process
An update of the schedule to include additional tasks about the outsourced deliverables
An update of the contingency budget
The contingency budget caters for the risk analysis expenses and other indirect expenses.
An overall communication plan
A project needs a communication plan, which defines the activities to involve the stakeholders, type of information they should have, and the method of communication as shown below.
Contract administration process
Internal communication will be established to discuss all contract activities. Throughout the project, communication will be in written form forms, such as emails and reports. Verbal communication, in the form of meetings and focused group discussion conferences, will also be used. Meetings will be held as follows; weekly contract review meetings, mid-year contract meetings, and steering committee meetings after every two months. From the meetings, reports such as customer satisfaction reports, monthly management reports, and weekly reports based on internal status will be submitted annually. The project progress, budget briefing, contract agreements and issues, customer satisfaction, and arising matters will be disused in these meetings.
The project manager will ensure that all activities are completed on their respective set dates. The project manager will assign and plan work, manage project issues and risks, and monitor deadlines. The project manager needs to assume the quality assurance role by asking the right questions on participants. On the other hand, the vendor will ensure that a working project plan is highlighted during the project progress, to allow smooth running of project activities. The vendor will initiate a plan for a formal checkpoint process as well. In case of any problems, decision-making will involve all the stakeholders involved in the procurement project. The manager will call urgent meetings to discuss the problems, with the stakeholders, who will suggest the best strategies that should be implemented to solve them. The management team will then choose the best strategy to put into practice.
References
Dymond, F. (2002). DOD Contractor Collaborations: Proposed Procedures for Integrating Antitrust Law, Procurement Law, and Purchasing Decisions. Mil. L. Rev., 172, 96.
