Contract Management
Contracting out is where an organization uses a private firm to provide services under strict conditions. Many organizations are increasingly adopting this method because of many advantages. One advantage is that it allows experts to handle projects. Contracting out can be done between the government and a private entity, or a private entity and another private entity. This paper will focus on the former.
As a contract oversight manager in the health sector, I have experienced the whole contracting process. Contracting is a highly regulated activity in the government (Bel & Gradus, 2017). Before the contract was awarded, we were required to make it public. We then allowed bidding to promote transparency (Peeters, 2013). After that, we awarded the contract to the winner based on several factors. Least price was one factor, the ability to finish in the least time, and the bid’s capability to exclude the extremes. As per Sepa (2019) on the insights of an oversight manager’s roles, my part was to ensure that the private firm provided the right quality and quantity of medicine within the time specified.
We faced several problems during contracting, ranging from awarding the contract to the right firm and overall contract management. According to Weele (2014), a lack of trained personnel in contract management is the source of failed projects. There was also government interference during the bidding process. Additionally, parts of the contract required interpretation by lawyers for proper understanding.
My opinion on contracting out is that it is an excellent strategic move. It should proceed, but accountability should be of significant importance. According to Wocial (2015), Good ethical behaviors should also be promoted throughout the process. As an oversight manager, we ensured this through open public bidding; we also used whistleblowers. Precise requirements in the contract and encouraging independent oversight was also used.
Reference
Bel, G., & Gradus, R. (2018). Privatisation, contracting-out and inter-municipal cooperation: new developments in local public service delivery. Local Government Studies, 44(1), 11-21.
Peeters, R. (2013). The impact of timing on bidding behavior in procurement auctions of contracts with private costs. Review of Industrial Organization, 42(3), 321-343.
Serpa, J. C. (2019). Oversight and efficiency in public projects: A regression discontinuity analysis. Management Science, 65(12), 5651-5675.
Wocial, L. D. (2015). A code of ethics for health care contract management: journey to the present and implications for the field. The American Journal of Bioethics, 15(5), 38-51.
Van Weele, A. (2014). International contracting: Contract management in complex health projects. World Scientific.