Procurement Report: Bid and Contract Management Analysis

This report provides a comprehensive analysis of a procurement project for the Ministry of Defence of the Kingdom of the Netherlands (MODNL), focusing on the procurement of towels and overalls containing a minimum of 10% recycled post-consumer textile fibers. It begins with an examination of the bid proposal, detailing the technical, management, commercial, and ethical requirements for bidders, including specifications for equipment, CO2 emissions, and ethical compliance. The report then explores contract management techniques, including cost control, contract schedules, performance factors, contract changes, claims, and close-out procedures. It emphasizes cost management strategies to control contract costs, the importance of meeting the contract schedule, and the assessment of performance based on recycled content percentages. The document concludes with a list of cited references, offering a detailed overview of the procurement process and its associated management strategies.

Project Procurement

Table of Contents
TASK...............................................................................................................................................1
1. Bid proposal............................................................................................................................1
2. Contract management technique.............................................................................................3
REFERENCES................................................................................................................................5

TASK
1. Bid proposal
Ministry of Defence of the Kingdom of the Netherlands
BID NO. 2018-188
ANNUAL CONTRACT FOR SEEKING TOWELS AND OVERALLS CONSIST
MINIMUM 10% RECYCLED POST-CONSUMER TEXTILE FIBRES
BIDS DUE JANUARY 17, 2019
2:00 P.M.
The Ministry of Defence of the Kingdom of the Netherlands is requesting bids for towels
consisting minimum of 10% recycled post-consumer textile fibers. All the bidders needs to
attach price forms with submissions. The provision of cost and contract is provisional under
clauses of MODNL.
The following terms and conditions requires to be kept by organizations while submitting the
bids -
Technical – In order to proceed with recycling activities effectively, organization must require
to implement advance equipment and machinery which ensure massive reduction in fabric
waste. Therefore, it is required for firms to demonstrate the quality remaining fabric and the
possible amount that considered in recycled fibers through microscopic testing. For
manufacturing services, it is required to implement advance feature equipment that assist in
reducing wastage as well as costs Muthu, S. S. (2014). Through this manufacturing industry can
make possible changes in recycling fabrics. Requirement of technology should have to be under
the consumption of -
CO2: 68,880kg
Energy: 23,530 MJ
Water use: 233,478,000 liters
Management – In order to work under the contract of MODNL, worker of the organization
requires to have proper knowledge regarding recycling practices of textiles. Therefore,
management requires to distribute roles and responsibilities properly after analyzing staff
1

members abilities. Strategic planning regarding these practices requires coordination between
staff members and management for the accomplishment of target objectives Luiken, A., &
Bouwhuis, G. (2015).
Commercial – These are the required commodities that assist in attaining recycling goals. For
the biding, organizations must have legal licensing and approx. 10 years working practices in
similar industry. Having an appropriate area of warehouse on which used towels can be stored.
Equipment should have to be advanced that reduces wastage and utilize maximum fabric by
spinning, warping, weaving and bleaching Laitala, K., Austgulen, M. H., & Klepp, I. G. (2014).
The commodities must have to be friendly that reduce chemical impacts of re - bleaching
practices.
Ethical requirement – The organizations who wants to submit bid form requires to comply
with state and local laws includes Ministry regulations as Procedure for the provision of
information by ACM, Policy rules and leniency, 2013 decision on the organization, mandate,
authority and authorization of ACM. For the further ethical policies, it is required to
demonstrate Parliamentary agenda item [05-06-2013] - Raw materials and waste (requested by
Mulder/CDA), Parliamentary agenda item [29-05-2013] - Waste and raw materials.
Following are the further information regarding bid -
 Ministry of Defense of the Kingdom of the Netherlands reserves the rights to accept
and reject tenders without assigning any reason.
 The firm should have to be legal body/agency/supplier and needs to be working under
requisite practices.
 Authorization letter of firm should have to be enclosed with the bid.
 Incomplete ratings and over cutting would results in the rejection of tender.
Copy to :
 NIC for the publication on website of MODNL
 On the Portal of Ministry of Netherlands
2

2. Contract management technique
Recycling is a most important aspect that assist to reuse waste material by converting
them in new products Manda, B. K., Worrell, E., & Patel, M. K. (2015). This procedure helps to
reduce the pollution that caused by wastage. Major objectives of this procedure is to restrict
those items that can impact adversely on the environment of a country Cramer, J. (2018). This
Ministry of Defence of the Kingdom of the Netherlands to Procuring towels and overalls
containing at least 10% recycled post-consumer textile fibers. There is a contract selection
criteria of the ministry has determine below which is based on contract management techniques
as -
Contract management techniques to control contract cost
The ministry of Defence of the Kingdom of the Netherlands has managing pricing of
their recycling project by managing a link between overall cost and intrinsic values to providing
affordable services by waste material Yan, L., Chouw, N., & Jayaraman, K. (2014). Therefore,
ministry provides responsibility to cost manager for trimming the prices to make them on
standard level. Therefore, the contract organizations requires to ensure about massive reduction
in fabric waste. The services of cost manager's includes cash-flow forecast and management in
order to receiving quality benefits by recycling services Pal, R. (2017). In order to the reduction
additional cost for contract there are some responsibilities of cost manager's includes-
 Monitoring the quality of recycled products.
 Cost effective products that accomplished the purpose
 Create affordability of overall budget that should be consider € 1.5 billion.
Contract schedule
The successful bidder will be awarded a 12 month contract that would be effective from
the date of award as well as the notice period. The contract will be renewed for additional 12
months with renewal options as -
 In additional conditions while MODNL and vendor agreed for same contract.
 Vendor update new documents during initial solicitation within the date of renewal
policies Palm, D & et. al., (2015).
Performance factors
The points of percentage of recycled content will be calculated as -
 ≥50 % – 20 points
3

 30 % – 10 points
 10 % – 0 points
Reward criteria per month
Contract x 12 months x 100%
First extension x 3 months x 30%
Second extension x 3 months x 15%
Third extension x 3 months x 5%
Contract changes
The contract of bid are not requisite of changes but in some exigency cases (as per the
norms of MODNL) cancellation notifications should have to be represented by vendor in
writing within 30 days notice period Gardetti, M. A., & Torres, A. L. (2017).
Contract claims
MODNL can claim on vendor if the provided information has not been authorized by
licensing clause. Any Criminal background checks will not be acceptable and if vendor will be
detected in such cases than they will be claimed for penalty charges Mahapatra, N. N. (2016).
Therefore, it is required to provide overall background information with bid submission.
Contract close out
The contract will be close out after 12 months of notice. But it only some case or on the
basis of vendor performance, it can be renewed for additional time period.
4

REFERENCES
Books & Journal
Muthu, S. S. (2014). Assessing the environmental impact of textiles and the clothing supply
chain. Elsevier.
Luiken, A., & Bouwhuis, G. (2015). Recovery and recycling of denim waste. In Denim (pp. 527-
540).
Laitala, K., Austgulen, M. H., & Klepp, I. G. (2014). Responsibility without means. In Roadmap
to Sustainable Textiles and Clothing (pp. 125-151). Springer, Singapore.
Manda, B. K., Worrell, E., & Patel, M. K. (2015). Prospective life cycle assessment of an
antibacterial T-shirt and supporting business decisions to create value. Resources,
Conservation and Recycling. 103. 47-57.
Yan, L., Chouw, N., & Jayaraman, K. (2014). Flax fibre and its composites–A
review.Composites Part B: Engineering. 56. 296-317.
Palm, D & et. al., (2015). A Nordic textile strategy: Part II: A proposal for increased collection,
sorting, reuse and recycling of textiles. Nordic Council of Ministers.
Gardetti, M. A., & Torres, A. L. (2017). Sustainability in fashion and textiles: values, design,
production and consumption. Routledge.
Mahapatra, N. N. (2016). Textiles and Environment. WPI Publishing.
Cramer, J. (2018). Key Drivers for High-Grade Recycling under Constrained Conditions.
Recycling. 3(2). 16.
Pal, R. (2017). Sustainable Design and Business Models in Textile and Fashion Industry. In
Sustainability in the Textile Industry (pp. 109-138). Springer, Singapore.
5