Tool Kit Case Study

IX. After Mr. Famel arrives at the project headquarters, he meets privately with Mr. Luci to discuss the forthcoming project.  Mr. Luci details a very aggressive plan to bring on a number of consultants to develop the implementation strategy for the subsequent hard engineering work that will be required to filter the contaminated water.  Mr. Luci explains to Mr. Famel that he is very excited about the upcoming project’s chances for success.  Mr. Luci treats Mr. Famel to a tour of the area in Mr. Luci’s Land Rover and specifically points out areas that may serve as prime locations for the engineering work.

X. The first consultant that Mr. Luci proposes to hire is Ms. Susan Chung.  Susan’s contract is sole-sourced because its total value is $US 96,700, which is less than the $100,000 threshold as per the Credit Agreement.  Upon approval from Mr. Luci and a no-objection from Mr. Famel, Susan signs the contract and faxes it back to the PIU.  She is then paid 20% of the contract price to her bank account no. 512-192-62 at 1st National Blueland Bank.

XI. The second consultant that Mr. Luci proposes is Mr. Donald Hardwire, an engineering consultant who had previously performed work under World Bank-financed projects in Villageville.  Upon approval of Mr. Luci and a no-objection from Mr. Famel, Donald is hired.  He is an experienced environmental engineer with in-depth experience, specifically in Blueland environmental problems.  Mr. Hardwire received a $98,000 contract.  His contract permits his company, Hardwire and Associates, 221 Pinot Ave, Villageville, Blueland, tel 022-334-2234, to continue to do business.

XII. Two months after the signing of Donald’s contract, Mr. Luci rents a car from Hire Agency on behalf of the project to visit some potential project sites.  Subsequent to renting the car, Mr. Luci proceeds to submit an expense report to Mr. Jones.  Mr. Jones prepares a Bank draft for Hire Agency in the amount of $350 for the ten days that Mr. Luci rented the car.  Hire Agency deposits the check into account number 512-192-62 at 1st National Blueland Bank.  Mr. Luci also arranges for cars through the same agency for all official visitors to the PIU.

XIII. One year in the project, things are not going well.  The project has yet to find a suitable site for the project, notwithstanding numerous reports and surveys conducted by Mr. Hardwire and Ms. Chung.  In addition, Ms. Chung and Mr. Hardwire have spent a considerable amount of time traveling on project related business to various conferences that discuss environmental technologies.  Moreover, the PIU expenses have been far more than anticipated.  Two of the expensive $10,000 laptop computers had to be replaced after Mr. Luci and Mr. Jones indicated that the computers were not working properly.  Mr. Jones disposed of both computers.  Moreover, orders of disposable supplies (e.g., paper etc.) have tripled due to enormous amounts of work by Mr. Luci and Mr. Jones.

Activity Case study