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Tom’s, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Tom’s, Inc., makes two salsa products: Western Foods Salsa and Mexico City Salsa. Essentially, the two products have different blends of whole tomatoes, tomato sauce, and tomato paste. The Western Foods Salsa is a blend of 50% whole tomatoes, 30% tomato sauce, and 20% tomato paste. The Mexico City Salsa, which has a thicker and chunkier consistency, consists of 70% whole tomatoes, 10% tomato sauce, and 20% tomato paste. Each jar of salsa produced weighs 10 ounces.

For the current production period, Tom’s, Inc., can purchase up to 280 pounds of whole tomatoes, 130 pounds of tomato sauce, and 100 pounds of tomato paste; the price per pound for these ingredients is $0.96, $0.64, and $0.56, respectively. The cost of the spices and the other ingredients is approximately $0.10 per jar. Tom’s, Inc., buys empty glass jars for $0.02 each, and labeling and filling costs are estimated to be $0.03 for each jar of salsa produced. Tom’s contract with Western Foods results in sales revenue of $1.64 for each jar of Western Foods Salsa and $1.93 for each jar of Mexico City Salsa. Letting W= jars of Western Foods Salsa M=jars of Mexico City Salsa The sensitivity report is shown in figure below.

Identify the procurement approach you would advise the client to take to this project

Identify the procurement approach you would advise the client to take to this project.

Description FORMAT – Short Report The project consists of: • Construction of a new 12 storey office building on the depot site • Repair and refurbishment of 4 of the other buildings (office buildings constructed in the 1960s) once vacated with the aim of disposing of them by sale or lease. • Repair and conversion of the fifth building, a Grade II listed art deco style office building, into luxury flats for sale on the open market Procurement approach • What do we know about the project, the client and constraints? • The client is a local authority • It is looking to create a new office building with a design life of at least 60 years. • Because the office building will be a prominent feature of the town centre it is looking for a high standard of design, though not an ‘iconic’ design to avoid accusations of wasting public money. • The client is also keen that the new office building achieves at least a ‘very good’ BREEAM rating. • 4 of the buildings to be refurbished and kept as offices are 1960s era offices • The building to be turned into luxury flats is a Grade II listed art deco style office building • Work on the refurbishments cannot begin until the new office building is complete. • The client has sufficient capital funds for the construction of the new office building but is looking to replenish those funds as soon as possible from the proceeds of the sale of its redundant buildings. • The project is beyond the capacity of the local authority’s in-house design team. Other to consider: • What is the best way to buy the professional services needed? • What is the best way to buy the building works needed? • Is it desirable to share service or works providers? 

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