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Based on the case study given, write a short summary on what was the main problem with the company’s Procurement exercise.

Based on the case study given, write a short summary on what was the main problem with the company’s Procurement exercise.

Computer Networking: A Top-Down Approach (7th Edition)
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Based on the case study given, write a short summary on what was the main problem with the company’s Procurement exercise.

Marie McBride could not believe how much money her company was paying for out- side consultants to help finish an important system conversion project. The consulting company's proposal said it would provide experienced professionals who had completed similar conversions, and that the job would be finished in six months or less with four consultants working full time. Nine months later her company was still paying high con- sulting fees, and half of the original consultants on the project had been replaced with new people. One new consultant had graduated from college only two months before and had extremely poor communications skills. Marie's internal staff complained that they were wasting time training some of these "experienced professionals." Marie talked to her company's purchasing manager about the contract, fees, and special clauses that might be relevant to the problems they were having. Marie was dismayed at how difficult it was to interpret the contract. It was very long and obviously written by someone with a legal background. When she asked what her com- pany could do because the consulting firm was not following its proposal, the purchasing manager stated that the proposal was not part of the official contract. Marie's company was paying for time and materials, not specific deliverables. There was no clause stating the min- imum experience level required for the consultants, nor were there penalty clauses for not completing the work on time. There was a termination clause, however, meaning that the company could terminate the contract. Marie wondered why her company had signed such a poor contract. Was there a better way to procure services from outside the company?
Transcribed Image Text:Marie McBride could not believe how much money her company was paying for out- side consultants to help finish an important system conversion project. The consulting company's proposal said it would provide experienced professionals who had completed similar conversions, and that the job would be finished in six months or less with four consultants working full time. Nine months later her company was still paying high con- sulting fees, and half of the original consultants on the project had been replaced with new people. One new consultant had graduated from college only two months before and had extremely poor communications skills. Marie's internal staff complained that they were wasting time training some of these "experienced professionals." Marie talked to her company's purchasing manager about the contract, fees, and special clauses that might be relevant to the problems they were having. Marie was dismayed at how difficult it was to interpret the contract. It was very long and obviously written by someone with a legal background. When she asked what her com- pany could do because the consulting firm was not following its proposal, the purchasing manager stated that the proposal was not part of the official contract. Marie's company was paying for time and materials, not specific deliverables. There was no clause stating the min- imum experience level required for the consultants, nor were there penalty clauses for not completing the work on time. There was a termination clause, however, meaning that the company could terminate the contract. Marie wondered why her company had signed such a poor contract. Was there a better way to procure services from outside the company?
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