Situation Analysis:
Carson Manor, founded in city of Winston 30 years ago, is a non-profit organization that provides nursing care service. It has a bed capacity of 470 and a total of 235 employees. Carson Manor has a history of problems related to budgeting and cost control. Also, City Council believed that the cost per bed for Carson Manor was significantly higher than privately run institutions. Therefore, the council asked the city administrator. Mr. Peterson, and the director of social services, Mr. Davis to prepare an internal report.
The requested internal report revealed that cost per bed for Carson Manor is approximately 14 percent higher than the state average. The report also highlighted that due to the absence of a patient classification …show more content…
One of the main objectives of the PSD is to respond to the needs of other departments and divisions for goods and services at a minimum cost, consistent with desired quality, delivery timing, and reliability.
However, PSD faces some issues to respond to the Social Services division’s needs for management consulting service for Carson Manor. Although the PSD has expertise in the purchasing of goods and certain services, buyers of PSD have no experience in procuring management consulting service. Because of PSD’s lack of expertise in specifying consulting services, Elaine drafted a request for proposal to find out which consulting companies can deliver the best value.
Five qualified consulting organizations were invited to submit proposals and three of the five companies submitted proposals by closing on November 17. The three participants are Patientcare Ltd., Clarke-Hamilton Ltd., and Standardcare Ltd. The bid prices are $35,000 47,000, and 77,000 respectively. PSD could choose Patientcare because it offers the lowest bid price. However, PSD must consider the total cost of services because the price is only a part of the total cost. Also, to choose the right service provider, non-financial aspects should be considered in evaluation process. Given the conditions, Elaine wonders what evaluation criteria and weightings …show more content…
for the in-depth operational review. This recommendation is based on evaluation of proposals by criteria and weightings {See Appendix A}. One of the reasons Clarke-Hamilton would be an optimal consultant for Carson Manor is it has high anticipated savings. The benefit to cost ratio varied from 3 to 1 to as much as 30 to 1 or higher. Also, it has experiences in implementing work standard/ patient classification system. Clarke-Hamilton also has received good customer feedbacks for its performance.
To make a contract with Clarke-Hamilton for consulting service, this recommendation and justifications should be forwarded to the city administrator by December 19, prior to seeking approval of the CMCM, the Committee of Community Services, the Board of Control, and City Council. The approval is needed because procuring management consulting service is not a budgeted expense. After being approved by the various committees of elected officials, the next step is to develop and negotiate a contract with Clarke-Hamilton to ensure the expectations will be realized.
Monitor and
Carson Manor, founded in city of Winston 30 years ago, is a non-profit organization that provides nursing care service. It has a bed capacity of 470 and a total of 235 employees. Carson Manor has a history of problems related to budgeting and cost control. Also, City Council believed that the cost per bed for Carson Manor was significantly higher than privately run institutions. Therefore, the council asked the city administrator. Mr. Peterson, and the director of social services, Mr. Davis to prepare an internal report.
The requested internal report revealed that cost per bed for Carson Manor is approximately 14 percent higher than the state average. The report also highlighted that due to the absence of a patient classification …show more content…
One of the main objectives of the PSD is to respond to the needs of other departments and divisions for goods and services at a minimum cost, consistent with desired quality, delivery timing, and reliability.
However, PSD faces some issues to respond to the Social Services division’s needs for management consulting service for Carson Manor. Although the PSD has expertise in the purchasing of goods and certain services, buyers of PSD have no experience in procuring management consulting service. Because of PSD’s lack of expertise in specifying consulting services, Elaine drafted a request for proposal to find out which consulting companies can deliver the best value.
Five qualified consulting organizations were invited to submit proposals and three of the five companies submitted proposals by closing on November 17. The three participants are Patientcare Ltd., Clarke-Hamilton Ltd., and Standardcare Ltd. The bid prices are $35,000 47,000, and 77,000 respectively. PSD could choose Patientcare because it offers the lowest bid price. However, PSD must consider the total cost of services because the price is only a part of the total cost. Also, to choose the right service provider, non-financial aspects should be considered in evaluation process. Given the conditions, Elaine wonders what evaluation criteria and weightings …show more content…
for the in-depth operational review. This recommendation is based on evaluation of proposals by criteria and weightings {See Appendix A}. One of the reasons Clarke-Hamilton would be an optimal consultant for Carson Manor is it has high anticipated savings. The benefit to cost ratio varied from 3 to 1 to as much as 30 to 1 or higher. Also, it has experiences in implementing work standard/ patient classification system. Clarke-Hamilton also has received good customer feedbacks for its performance.
To make a contract with Clarke-Hamilton for consulting service, this recommendation and justifications should be forwarded to the city administrator by December 19, prior to seeking approval of the CMCM, the Committee of Community Services, the Board of Control, and City Council. The approval is needed because procuring management consulting service is not a budgeted expense. After being approved by the various committees of elected officials, the next step is to develop and negotiate a contract with Clarke-Hamilton to ensure the expectations will be realized.
Monitor and