Love
PROJ598 – Contract and Procurement Management
PEACH COMPUTER COMPANY Case Analysis
At the meeting, the decision was made to utilize detailed design and engineering specifications so as to obtain competitive bids on the project. The executive committee required completion of the building within twelve months since the new facility would allow for production necessary to meet a new government contract. The contract was of vital importance to Peach since it would yield additional net income of $4,000,000 annually. Within 2 months after the meeting, Don issued a request for proposal using the recommended specification method with a specific construction time of 9 months. Four proposals were received. Don reviewed them quickly since he had 3 weeks to award the project and execute a contract.
Winstrom Construction was a local Ohio firm that had completed much of the construction at Wright-Patterson Air Force Base. They submitted a bid of $5,960,000 with a required deposit of $1,000,000. Winstrom had worked previously on a similar project for Peach and had finished it on-time. Don was concerned with the deposit given that Peach would have to supply these funds from capital reserves which were invested at 8% annually, but he rated their quality an A since he heard they had a partnership attitude in dealing with the inevitable problems on the AFB projects.
Frazier Construction was a firm from Florida who had completed several projects around the country for competitors of Peach. Known for speed and flexibility, they had a reputation of finishing projects in 95% of the required time. Don had invited them to bid since he noticed the Peach competitors tended to give Frazier repeat business. Their bid was $6,100,000.
Foreman Builders was following Peach from Minnesota where they had completed three projects for Don. A small, minority-owned firm, Foreman was not well-capitalized but Don liked the fact that he dealt directly with the owner, Chuck, and his son, Jay.
PEACH COMPUTER COMPANY Case Analysis
At the meeting, the decision was made to utilize detailed design and engineering specifications so as to obtain competitive bids on the project. The executive committee required completion of the building within twelve months since the new facility would allow for production necessary to meet a new government contract. The contract was of vital importance to Peach since it would yield additional net income of $4,000,000 annually. Within 2 months after the meeting, Don issued a request for proposal using the recommended specification method with a specific construction time of 9 months. Four proposals were received. Don reviewed them quickly since he had 3 weeks to award the project and execute a contract.
Winstrom Construction was a local Ohio firm that had completed much of the construction at Wright-Patterson Air Force Base. They submitted a bid of $5,960,000 with a required deposit of $1,000,000. Winstrom had worked previously on a similar project for Peach and had finished it on-time. Don was concerned with the deposit given that Peach would have to supply these funds from capital reserves which were invested at 8% annually, but he rated their quality an A since he heard they had a partnership attitude in dealing with the inevitable problems on the AFB projects.
Frazier Construction was a firm from Florida who had completed several projects around the country for competitors of Peach. Known for speed and flexibility, they had a reputation of finishing projects in 95% of the required time. Don had invited them to bid since he noticed the Peach competitors tended to give Frazier repeat business. Their bid was $6,100,000.
Foreman Builders was following Peach from Minnesota where they had completed three projects for Don. A small, minority-owned firm, Foreman was not well-capitalized but Don liked the fact that he dealt directly with the owner, Chuck, and his son, Jay.