Facts as per the case
Dynamic Aircraft Company after being awarded a contract for the building of a high power aircraft intends to use new materials for the construction. The company has to evaluate and determine which supplier suits the best to attain the required specification.
As the sales manager, I’m not satisfied that advanced wires are the most suitable for the supplying; furthermore, I would like to prepare a report to decide what company is cost effective and determine the quality of mainly using products by means of scientific reports conducted by an independent laboratory.
- It is ceramic coated
- Withstand high temperatures
- It meets all military specifications
- Have previous reputation
- Total price estimation of $45,354.00
- Do not submit samples voluntarily
- Heavy in weight
- Poor conductor
- Less durable
- Did not include in the military specifications it was ceramic coated
- Total price estimation of $25,008.00
- Superior in meeting military specifications
- Withstands high temperatures
- It is lighter in weight
- More durable
- Better conductor
- Submitted sample
- Has no previous reputation
Where Dynamic Aircraft fails to ascertain the proper supplier, it is an obstacle to the company to achieve its objectives of awarding the tender to an effective but lowest bidder.
To begin with, there are facts relevant to the analysis of this case that must be assumed:
- The evaluation and determination of the previous proposals were effectively done, following predetermined criteria.
- Out of all, companies invited to submit their proposals, any foreign manufacturers were dismissed on the basis of limited production run and previous dealings that were insufficient.
- Due to the nature of the items, there can be no shared supplier contracts.
- Such limitation of suppliers’ source is insufficient but is beyond the scope of this analysis to address.
Identifying the objective
Selection of the two firms provides the right material in quality and cost effectively, and materials that are within the government military requirements and that of Dynamic Aircraft.
After scrutinizing the companies that intended to supply, only two options stand out to be aligned to the objective. Both companies have distinct advantages and disadvantages that need further exploration.
- Award the contract to Advanced Wire
- Award the contract to Easternhouse
Analyzing the options
When considering the merits and demerits of each option, a predetermined set of criteria will be considered. The criterion concerns the following specific areas that were reviewed in the pre-award.
Option 1- Award the contract to Advanced Wires
Quality of product
+ Product meets the government military specifications;
+ Advanced Wire came up and uses ceramic coat technology.
- Material is, however, an inferior quality in conductivity;
- The product fails in the abrasive test as it comes out, though it meets the minimum requirements, it is not durable;
- Product is heavy and it is supposed to be light as it will be to make aircraft.
+ It is also known for quality productivity record as per previous undertakings.
- The project is using new technology that has not been used.
Option2-Award contract to Easternhouse
Quality of product
+ Meets the required military standards;
+ Product can withstand high temperatures;
+ It is lighter.
- Technology used is not disclosed.
+ No project of this kind has been done.
- No record of past performance using such material.
Evaluating the options
In considering the suitable company, the quality of the product is crucial and prices competitive. Both companies have passed the government test and can withhold high heat levels. However, the Advanced Wire product is not durable, and the price is higher.
With Eastern house having an added scientifically proven advantage over the Advance Wire; it gets to supply the materials. Therefore, as a sales manager and in light with this, I would like to revoke the tender awarded to Advanced Wires as it is even against the company policy to a single source and, thereby, the process of selection was flawed.