I justy need the questions at the bottom answered.
PMB 440 case study #6 Badger Power Company (BPC)
The bid proposal evaluations for the engineering andthe gas turbine-generator contracts have been completed by the responsibleproject group for the Badger Power Company (BPC). The Carter Engineering Company (CEC) is theclear choice for the engineering contract. CEC was rated the highest among the bidders in terms of technical capabilityand proposed technical approach. CECintends to use a recently completed design from a different power plant as areference design for BPC plant. Themanagement team proposed by CEC is well known to BPC personnel having worked onprevious projects for the Company. Although the wage rates proposed by CEC in itsinitial bud proposal were higher than those of the other bidders, subsequentnegotiations with CEC resulted in a reduction of the wage rates to a level thatis similar to the proposed wage rates of the other bidders. Cost Plus type contracts.
Technical evaluation of the bid proposals for thegas turbine-generator contract recommended the Universal Electric Company(UEC). UEC provided the Gas turbine- generatorsfor the existing power plant for BPC. Although the technical evaluation team was impressed by the technicalfeatures proposed by International Power Company (IPC), the European bidder forthe contract, they were not familiar with certain aspects of the design of theequipment. The evacuation of the fixedprice bids for the contract indicated that the bid from IPC is one milliondollars (five percent of the total price) lower than the bid from UEC. The utility in Minnesota that contracted withIPC for the gas turbine-generators for the recently completed power plant iswell satisfied with the performance of the gas turbine-generator although theyhad some communications problems with the foreign supplier. Janet White was impressed with the capabilitiesof the proposed management with IPC.
1. If the contract award decision isbased upon the primary factors and weights for these factors that were selectedfor the evaluation for the gas turbine-generator contract, will you select theUniversal Electric Company or the International Power Company? Explain your evaluation.
2. What general principles will youand Ed Gordon, the Vice President of Badger Power Company, consider in awardingthe gas turbine-generator contract?
4. Universal Electric andInternational Power submitted their proposed commercial terms with their bidproposals. Will you use their proposedterms or the commercial terms that were included in the Request for proposalfor the work? Explain you answer.
5. Assuming a decision is made toaward the gas turbine-generator contract to the International Power Company, whatare the primary sources of information that will be used to prepare the contractfor work? If this information is not allincluded in the written contract, can you at a later date require that thesupplier provide services or equipment that were not discussed or written inthe contract during the bid period? Explaina yes or no answer?
6. If it appears that thefinalization of the terms for either the engineering contract or the gas turbine-generatorcontract will require extended period of time to obtain the agreement of both partiesto the contracts, will you authorize the start of work on these contracts usinga letter of intent? What are theadvantages and disadvantages to the Badger Power Company in this approach?
8. How can BPC ensure that theinterviewed project management and technical staff from the vendors are usedthroughout the contractual efforts?
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