LOG311e: The Tenders, Worth S$500,000, were for the Manufacture of Decorative: Procurement Ethics and Corporate Social Responsibility Assignment, SUSS, Singapore

Question 1

CASE: Auditor-General Report 2017- Lapses in Procurement for Street Light-Ups.

The tenders, worth S$500,000, were for the manufacture of decorative items for street light-ups for the Mid-Autumn Festival 2016 and Chinese New Year 2017. The two tenders for both street light-ups were awarded to the same overseas manufacturer, who had been awarded the contracts every year since 2014.

In its proposal for the Mid-Autumn Festival 2016 light-up, the company had listed additional costs including accommodation for its workers during their stay in Singapore, transportation charges for materials, and the provision of a site for assembling lanterns. However, the grassroots organisation did not consider these additional costs on top of the tender price in its evaluation when comparing the price for the proposals.

(a) Appraise the roles of stakeholders and their competencies in all steps of the procurement process involved in the above case scenario.

(b) Debate how the three principles of procurement can be applied to maintain ethical responsibilities in procurement decisions and avoid the lapses in the above case scenario.

(c) Criticise the organisation’s culture and management efforts in the above case scenario for performing procurement activities with minimum ethical risks.