1. Answer the following questions based upon the Kloppenborg text and Exhibits presented in the chapter. The length of the paper should be enough pages to properly and fully answer all the exercise questions. As this is an exercise no other sources (except the source describing the project) need to be utilized. The assignment is due by Sunday evening at 11:59 p.m. EST.

   Find a story in your local newspaper or other media/web outlet about a project that is about to start. For that project, answer each of the following questions and justify your answers:

   1. Briefly provide an overview of the project (answer the basics who, what, where, when and why). Also, provide the source for the information discovered.

   2. Using the ideas in Exhibit 13.2, speculate on what activities, supplies, or services could be contracted out.

   3. Create a request for information (RFI) for one portion of the project work that could be contracted out.

   4. Using ideas from Exhibits 13.4 and 13.5, determine criteria you would use to select sellers for the portion of contract work under consideration.

EXHIBIT 13.2 REASONS TO MAKE OR BUY REASONS TO MAKE REASONS TO BUY 1. Lower production cost 2. More control over quality and time 3. Lack of suitable suppliers 4. Obtain a customized item 5. Utilize project team's expertise and time 6. Protect proprietary design or knowledge 1. Frees project team to deal with other important activities 2. Ability to utilize specialized suppliers 3. Flexibility in procurement 4. Inadequate managerial or technical resources 5. Inadequate capacity 6. Small volume requirements EXHIBIT 13.4 FACTORS TO CONSIDER WHEN SELECTING A DESIGN-BUILD CONTRACTOR Component A: Process-related design-build contractor selection factors: PRIORITY FACTOR DEFINITION I Shorten Duration To reduce the overall project delivery time as compared to other project delivery methods II Reduce Cost To reduce the overall project delivery cost as compared to other project delivery methods III Reduce Claims To eliminate claims raised by contractors due to design errors or shortcomings IV Establish Cost To fix project budget early on, long before completing detailed designs and specifications V Establish Schedule To fix schedule of project benefits long before completing detailed designs and specifications VI Innovation To benefit from the innovation opportunity created by designers and builders' interaction Reduce Coordination To reduce client risk and effort of coordinating between contractors and designers Component B: Organization-related design-build contractor selection factors: VII TECHNICAL MANAGERIAL FINANCIAL EXPERIENTIAL Know-how Brand Culture Expertise Plant/equipment Specialism Design capacity Financial strength Marketability Stability Audit reports Turnover Design-build similar projects Diversity Resources Trust/integrity Methodology Organization Reputation Source: Adapted from Dr. Sherif Hashem, The Power of Design-Build: A Guide to Effective Design-Build Project Deliv- ery Using the SAFEDB-Methodology (Business Expert Press: USA, August 2014). EXHIBIT 13.5 FACTORS USED IN ASSESSING POTENTIAL SUPPLIERS Replenishment lead time: This is the lead time between placing an order and receiving the order, which can be translated into the required responsiveness for purchasing. On-time performance: This affects the variability of the lead time. Supply flexibility: It is the amount of variation in order quantity that a supplier can tolerate without letting other performance factors deteriorate. Delivery frequency and minimum lot size, which affect the size of each replenishment lot ordered by a firm. Supply quality: A worsening of supply quality increases the variability of the supply of compo- nents available to the firm. Inbound transportation cost: The total cost of using a supplier includes the inbound transpor- tation cost of bringing materials in from the supplier. Information coordination capability affects the ability of a firm to match supply and demand. Design collaboration capability. Exchange rates, taxes, and duties can be quite significant for a firm with a global manufacturing and supply base. Supplier viability is the likelihood that the supplier will be around to fulfill the promises it makes. This consideration can be especially important if the supplier is providing mission- critical products for which it would be difficult to find a replacement. If a supplier has two key people who can each perform the necessary work, the second worker is sometimes consid- ered to be truck insurance in case the first worker gets run over by a truck