Detailed Report on Procurement, Legal, and Ethical Considerations

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This report provides a comprehensive overview of legal, ethical, and contractual considerations in procurement and contract management. It explores legal issues involved in releasing items for bid, including the establishment of contracts A and B, and the importance of fairness. The report also details how to manage changes to contracts and procurement documents, emphasizing the role of payment schedules and milestones. The relationship between purchasing and the Work Breakdown Structure (WBS) is analyzed, highlighting how a clear understanding of the project's components supports effective procurement. Ethical considerations, such as adherence to codes of ethics and fair treatment of suppliers, are discussed. Furthermore, the report addresses how changes should be reflected in procurement contracts and RFPs, emphasizing the importance of bid manager appointments and consortium approaches in complex projects.
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Contents
Legal issues considerations while releasing items for bid.........................................................3
Kind of changes to contract and procurement document and how should they be managed?...3
Relationship between purchasing and the work breakdown structure (WBS)...........................4
Ethical consideration that are involved in contracting and procurement...................................5
How changes should be reflected in any procurement contracts or RFPs that are in place?.....6
Reference....................................................................................................................................8
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REPORT 3
Legal issues considerations while releasing items for bid
Any process of tendering can create two kind of contracts that can bind the bidder as well as
the owner. As per the invitation to tender, it is also expected that the owner will be awarded
with the contract based on the finished tender based documentation alone and will not take
efforts in negotiating with the bidders. The test or evaluation criteria should be set in detailed
process since the tender document should be adhered strictly. With this kind of frame of
mind, the process is governed by the contract A as well as Contract B set by the authorities.
The concept of contract A is based on the name given to contract that exist between the
bidder and the owner while submitting the complaint bid in the tender based call. On the
other hand, contract B is based on goods and service based contract itself which exist by
accepting by the owner of the low complaint bid formulated by the contractor (Kroemer et al,
2016). Another important principle says that to appreciate the fact that bids consists of
complaints to take impact. The court established also claims that contract A only exist into
impact at the time when the complaint tender is properly submitted. The third principle asks
to make a mental note of the duty based on fairness. It must be ensured that all the bidders in
a call for tender should be treated in fair and equal manner unless or otherwise expressed or
agreed upon as per the terms of the call for the tender or otherwise (Bayern, 2014).
Kind of changes to contract and procurement document and how should they be
managed?
It is important to understand that legal agreement usually create the risk for the main
company and the purchasing function is usually guided by number of policies and the process
for the company. After proper project management team also develops a clarity of what part
of the project based work can be outsources and further defined the kind of association that
are required to support the project based execution plan and the procurement team also
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REPORT 4
initiates to grow the contracting plan (Hughes et al, 2015). In smaller perspective, less
complicated projects, the development of contract and implementation is managed typically
via parent organization or by a part time person assigned to the project. On large as well as
complicated project, the purchase team can consist of a team based on work within the
purchase activity with special kind of expertise in case of contracting. The plan of contract
also defines the association that exist between the project as well as the vendor or supplier. It
also defines the procedure for bringing the changes in the agreement to help or bring the
changes that will exist on the project.
The change and its management process is quite similar to the current change management
process utilised with the agreement of project with number of project customers. The vendors
as well as suppliers normally need the payment during the life of the contract. On the other
hand, in last so many time, the contracture happens to put money in cost and will expect
project to pay for the cost that too during early stage. Instead of waiting to end the contract, a
scheduled based payment is developed as crucial part of the contract as well as connected to
the finished and defined amount of work or project based milestones (Hackett, 2016). Such
kind of payment made before there is an end to the project and it is also based on the
development of work and known as progress payments. For instance, the contract might help
in developing the payment which is scheduled to pay for the growth of the curriculum and the
payment is when the curriculum along with payment is made when it is finished as well as
accepted. There is a set amount of work achieved within a time frame for achieving that work
with quality standard of the work that must accomplish before the contractor is paid for the
work.
Relationship between purchasing and the work breakdown structure (WBS)
Purchase professional can further support the project well when they have clarity on the work
it consists. It can be recognised on what needs to be procured and when and how every
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process of procurement will be able to connect to the project goals of time, product and cost.
The understanding further allows people to plan the project based purchase functions in the
most effective manner. On the other hand, the wise manager will also make sure that
purchasing staff completely understand the work and that they are completely engaged in the
work of every stage (Jia et al, 2014).
It is important to understand that the WBS is product based grouping of projects components
that can be organized and further defined the complete scope of project and every level of
WBS shows that there is any increasing level of detailed discussion. The overall
decomposition of the work further continues until every stage project elements can be defined
in packages of work right for the assigned achievements. The precaution in the case cannot be
decomposed for the work that goes too far and every package of the work should be planned
in individual manner, implemented as well reported and this further ensures that the heavy
administrator burdens when they are taken to extremes sides (Vreeburg, 2014).
The relationship of the project will have been made clear and associated with the context of
the work that is expected to be performed. The discussion and relationship further provide or
work like a basis for growth of cost based estimated and schedules projects. In real, the level
at which data is developed along with procurement terms will be governed the fact that how
effectively any project procurement process can be planned (Vreeburg, 2014). It is also
important for the project procurement workforce to get involved in the developing stage of
the WBS and completely conversant with the current procurement implications.
Ethical consideration that are involved in contracting and procurement
The process of procurement and contract is based on the division of business as well as
financial services also called as BFS that fosters as well as promote the ethical and fair
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business operations while working in the best interest of the organization. It consist
adherence of strict code of ethics: -
If organization is involved in any part of purchasing goods as well as services for UCSD, it is
expected to adhere to code of ethics of purchasing: -
1. First provide consideration to UCSD mission and principle based on community.
2. Getting maximum level of value for every dollar spent.
3. Declining any kind of personal favour in the form of gifts or gratitude.
4. Granting all kind of competitive level supplies which is fair and equal consideration
(Monczka et al, 2015).
5. It is important to conduct the work with the prospective and present suppliers in a
culture based on good faith.
6. It is important that one can demand in honest manner with sales representation
7. Accomplish consent of originator for usage of proprietary concepts as well as designs.
8. It is important to make effort to get equitable settlement for any kind of controversy
with the suppliers (Rendon et al, 2016).
How changes should be reflected in any procurement contracts or RFPs that are in
place?
The complicated nature of procuring the authority in PPP based project need the consortium
so that they can adopt to the project management approach to make sure that all the important
skills are managed that too effectively and in timely manner. While signing the LOI also
called as letter of intent, or MoU and receipt of the RFP, the consortium make sure that the
bid manager is appointed on time (Koval, 2014). In typical manner, the first stage of
responding to the RFP, the top management from one of the sponsor will assume that bid
function of the manager on a limited period base the work on it until permanent appointment
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REPORT 7
is places. In addition, on sponsors can also provide personnel from its company to function as
a part of bidding team while prepping the RFP.
For many big as well as complicated PPP based projects that are recognised through the
sponsors with due diligence and which are also happens to be strategic goals for people, it is
more likely that a bid based manager will put in place before the project has been launched
officially (Hale & Officer, 2017).
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Reference
Bayern, S. (2014). Dynamic common law and technological change: the classification of
Bitcoin. Wash. & Lee L. Rev. Online, 71, 22.
Hackett, M. (2016). The aqua group guide to procurement, tendering and contract
administration. John Wiley & Sons.
Hale, R. D., & Officer, C. O. (2017). REQUEST FOR PROPOSAL RFP 12 (2017-07)
WAYFINDING–CONSULTING SERVICES.
Hughes, W., Champion, R., & Murdoch, J. (2015). Construction contracts: law and
management. Routledge.
Jia, P., Gao, Q., Ji, X., & Xu, T. (2014). Task Decomposition Method of R&D Project Based
on Product Structure Tree. JSW, 9(7), 1894-1902.
Koval, M. R. (2014). With this letter I am transmitting KPMG LLP’s EQ2013-006-P3--
Atlantic Highlands--Att 2 IM Quarterly Report (January 1–March 31, 2014). The data
included in this report was obtained from the Borough of Atlantic Highlands on or
before March 31, 2014. We have no obligation to update our report or to revise the
information contained therein to reflect events and transactions occurring subsequent
to March 31, 2014.
Kroemer, C., Bichler, M., & Goetzendorff, A. (2016). (Un) expected Bidder Behavior in
Spectrum Auctions: About Inconsistent Bidding and Its Impact on Efficiency in the
Combinatorial Clock Auction. Group Decision and Negotiation, 25(1), 31-63.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing
and supply chain management. Cengage Learning.
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REPORT 9
Rendon, J. M., Rendon, J. M., Rendon, R. G., & Rendon, R. G. (2016). Procurement fraud in
the US Department of Defense: Implications for contracting processes and internal
controls. Managerial Auditing Journal, 31(6/7), 748-767.
Vreeburg, J. J. M. (2014). U.S. Patent Application No. 15/105,093.
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