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Dehavilland Casr Report

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Executive Summary


To: Source Selection Board
      De Havilland Inc.

From: Kim Tomar
Financial Analyst, Material

Subject: Marton Enterprises Inc. as a Supplier for Flap Shrouds and Equipment     Bay Doors.

Our company has three mandates to get up to 25% discount on all parts that are on the bill of materials, to reduce our vendor base so as to gain from economies of scale and to sign five year, long term contracts with vendors. In light of this we had tried to get a price reduction from our current supplier of flap shrouds and bay doors, Dollard Plastics of Montreal, to no avail.

Following an RFQ we received bids from 9 different suppliers with just as many varied prices of the final product. Out of all, Marton Enterprises Inc. has the most reasonable price, but did not include its financial statement in the bid, though they have indicated that the information is available on their site. Upon consulting Dun and Bradstreet’s publications it was discovered that Marton’s parent company is UK’s Devon Holdings, which has an international presence. Examination of financial statement of Devon revealed a financially healthy company that has had a history of presence in the aviation industry. However, Marton’s individual financial health still remains a mystery.

Marton has provided a highly detailed and all encompassing product cost break down.

Everything considered and based on the normalized bid, I would recommend that we sign a 5-year contract with Marton for the flap shrouds and bay doors. In addition I would also recommend that De Havilland revisit their procurement process, as under the current scenario bidding seems to be so varied that it compounds the conundrum in procurement of an appropriate product or service.

Kim Tomar,
Financial Analyst, Material
De Havilland Inc.

Table of Contents Page Numbers

I. Process Elements
Executive Summary 1
Table of Contents 3

II. List of Issues with Impact...

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