Contract and procurement management - Case Study Example

The budget of Ruralshire County is short and it is expecting high quality of services. Traditionally, only a small number of local contractors have the high capacity (100 seater) vehicles for these routes and because the routes are long they are challenging in terms of the ability of vehicles to keep to time, especially in adverse traffic and weather conditions. In keeping with wider practice, bus and coach operators deploy older vehicles to school transport and pupils can expect to travel in vehicles more than 10 years old.

 The client is unhappy at the high cost and unreliability of a cluster (8) of long-distance routes transporting around 700 secondary age pupils from the city of Maynard Kaines (located outside the county) to Amplewealth (the county town) some 22 miles away where these children attend four local grammar schools. The combined cost of these contracts is 1.1M per annum. This report intends at identifying the important of this project. This report also intends at identifying the important of reverse e-auctions for the upcoming project.

Moreover, this report ends at presenting a business case that identifies the benefits, costs, risks and gaps of the upcoming project (Worksafe.vic.gov.au, 2015). Effective procurement is a key to provide best services to businesses and customers. Selection process of suppliers is a way to identify a best person or company for a service. There are a lot if procurement approaches to select vendors to get service and goods. There are a lot of possible re-procurement approaches to achieve the business objectives mentioned in our case study of home-school transportation.

In our case it is important to reduce the costs associated with the transportation of children from homes to schools. The award of new contract is strongly associated with the cost effectiveness of the transportation coupled with less travel time (Imagination.lancs.ac.uk, 2015).