PMB 440 case study #4 Badger Power Company (BPC)
After establishing the guidelines for the preparing the technical and management requirements for the major contracts for their project, Janet White wants to assure that the most qualifies bidders receive the Request For Proposal (RFP) for the major contract. The proposed bidders for the engineering contract contained three bidders. Two of the engineering firms have preformed work for the BPC on previous contracts. The third engineering firm is recommended by one of their own managers in the BPC engineering group. The manager previously was employed by that engineering firm he is recommending to be added to the bidders list.
The list of proposed bidders for the supplying the gas turbine-generators contains only two companies. There are only two companies in the United States that manufacture gas turbine-generators large enough for the new BPC plant. There are manufactures in Europe and Asia that have the capacity to manufacture the gas turbine-generators for the required size. BPC has no prior experience with foreign manufactures of the required gas turbine-generators.
The proposed list of bidders for the civil construction contract contains three bidders. One of the companies that have not worked for the BPCwas recommended by an electric utility in Minnesota that has used the contractor on its projects. The other company on the list of proposed bidders has made two sales presentations to Ed Gordon, the Program Manager of the Power Company.
Janet white reviews these list of proposed bidders for the major contracts and schedules a meeting with the managers of the procurement, engineering, licensing, and construction groups to finalize the lists.
Answer the following questions as if you are Janet White:
1. What is the minimum number of bidders that you want to have for these major contracts and why?
2. Since you only have two proposed bidders for the gas Turbine generator contract, will you add any foreign manufactures to the bid list and why?
3. What are the advantages and disadvantages to procuring major equipment from foreign companies?
4. What sources will be used to locate qualified manufactures of the gas Turbine-generators?
5. Are you willing to accept the engineering contractor recommended by a former employee of that contractor as a bidders for the engineering contract and if so what further evaluation should be conducted?
6. Should the fact that certain companies worked on previous BPC project automatically qualify them for inclusion upon the list of bidders for the new project and if so what analysis should be accomplished?
7. Are you going to visit the owner that recommended one of the companies on the list of bidders for the civil construction contract? If you do, what type of information will you request concerning the contractor’ performance?
8. What are the advantages of meeting with the potential bidders (Pre-bid conference) for the major contract prior to placing the company on a bidders list, and why?
9. What subjects will you cover in meetings with potential bidders?
10.Which project group should attend these meetings and why?
11.Why is it important for the procurement group to perform financial evaluations of all of the potential bidders for major contracts?
12.What ethical guidelines will you establish for relations between BPC personnel and personnel employed by the bidders?
Management of Project Procurement, C. L. Huston, The McGraw-Hill Companies, Inc. CS 13-1
(CASE NAME)
I. Major Facts
(State here the major facts in bullet format, as you understand them. Make your statements clear and concise for your own understanding as well as for the understanding of the other students and the instructor.)
II. Major Problems
(State here the major problems, as you understand it. Emphasize the present major problem. You may wish to phrase your statement in the form of a question. In a few cases, there may be more than one problem. A good problem statement will be concise, usually only one sentence.)
III. Possible Solutions
(List the possible solutions to the major problem. Let your imagination come up with alternative ways to solve the problem. Do not limit yourself to only one or two possible solutions. Briefly note the advantages and disadvantages of each possible solution. Try to think outside the box.)
IV. Choice and Rationale
(State your choice from among your possible solutions and the detailed reasons for your choice. You may also wish to state why you did not choose the alternatives.)
