Question

Company name is She Heals which is a nonprofit company that is trying to get off of the ground at this time. This company is really small and has about 50 employees that help people re enter into society have recently being released from prison. We only take people that have non violent offenses. We will not take sex offenders or violent offenders. We also have a community based program that goes into local communities recruiting young parents and help them get careers and not dead end jobs. We will help them acquire a trade. Our major competitors are definitely half way houses and community corrections programs that are getting funding from the state and locked in with having a relationship with the state and we are just starting up. We will be located in Birmingham, AL but we will have two other branches in Atlanta, GA and Miami, FL. We will make sure all participants are able to get trades that can help them get great careers so they do not fall back into statistics and help them so they do not re offend.

            Our main purpose to help not only help non violent offenders re offend but also help community people so they don’t feel the need to go that route of robbing and stealing to make a living. We will be showing them how to make an honest living and how they have resources and people that care about their future.

For the Project above answer the following questions:

Identify the risks associated with the planned procurement approach for this project.

Explain how procurement risks for this project will be monitored and controlled.

Explain how contract negotiations will be conducted for the project.

Answer 1

Procurement is a process of acquiring goods or services required by a particular firm in the form of purchases.Procurement risks are the risks involved in carrying out the procurement process .These may result in the failure of process thereby leading to a loss to the firm.Hence,carrying out proper procurement process and eliminating maximum possible procurement risks associated with it plays a vital role in increasing the productivity of a firm.Proper procuring process involves many factors like having narrow specification,removal of unnecessary items reducing wastage,planning the process,selecting the best item at targeted price,negotiating the cost and finally contracting.

THe above case study have many procurement risks associated with it since it is dealing with re introducing of people recently released from prison back into the society.Society has basic norms and people cannot easily accept any changes in it.The major risk that is involved in this process is that the intentions of the person released from prison cannot be predicted.Though society may accept them as a member but still deprive them of all the basic principles that a genuine society member will receive.

Though She hales is trying to provide job to them for their livelihood,chances of their fallback into the trap is maximum as society won't accept it easily.The job offered can't guarantee their livelihood and mostly may involve the person quitting it as his mind may not be framed.

All the factors associated with the procurement risks can be controlled by monitoring the process closely and continuously.Frequent counselling classes for the people may be given.Motivating employees by the means of ethics.Bringing an awareness among society and trying to motivate them for accepting then with open mind.