Unbundling of Contract

Job creation and poverty alleviation, as previously outlined in this article, is linked to technology and the development and promotion of small scale enterprises.
Small enterprises usually regard market constraints and the inability to sell their products and services as one of the most serious obstacles to the starting of business and growth beyond mere subsistence level. Small scale enterprises can participate in procurement process in one of two ways. They can either contract directly with a body or participate as a subcontractor (supplier or service provider to a prime contractor in the delivery chain).
Unbundling of bigger contract by the companies can make participation of small scale enterprises and also help large compaies to procure works in the smallest practicable quantities, The smaller compaies also participate by forming joint venture formation with large businesses and /or small scale enterprises and by providing third party management support to enterprises which are not capable of operating as prime contractors
Thus targeting strategies by large companies require them to “unpack” their contracts into smaller contracts and to procure the services of small scale enterprises to perform such contracts and to administer them. This can be done by one or more of the following ways for the companies that are targeted enterprises: (a) subcontract portion of the contract; (b) obtain manufactured articles from manufacturers; (c) obtain supplies and materials from suppliers; or (d)engage professional, technical or managerial experts.

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Inclusivity Measurement
Present Scenario
Supply Chain

Realigning Supply Chain through :

Direct Procurement from Producers/Primary Suppliers
Use of Information & Technology
Vendor Development
Open Tendering
Ancillary Development
Targeted Procurement
Unbundling of Contract




Digvijay Singh, Dy. Manager (Materials Management)
Research & Development Center for Iron & Steel (RDCIS)
Steel Authority of India Ltd. (Ranchi)


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