Case 121 Carson Manor In late November, Ms. Elaine Taylor, director of supply for the city of Winston, was reviewing proposals for the Carson Manor study. Three consulting groups had responded to a request for proposal (RFP) to study the operation of the city-owned nursing home. Ms. Taylor knew that her recommendations for selection of a consultant would have to be completed by mid-December. page 360 CARSON MANOR Carson Manor was opened about 30 years ago for persons requiring nursing care. Carson had a bed capacity of 470. Staff totaled 235 with nonmanagement personnel unionized under the District Service Workers Union Local 325. Day-to-day operations of the Carson Manor were the responsibility of the Carson Manor administrator, who reported to Mr. Henry Davis, the citys director of social services. Policy and budget plans were developed by Mr. Davis and his staff in conjunction with Carson administrative staff and the Carson Manor Committee of Management (CMCM). The CMCM consisted of five aldermen who were appointed or volunteered to fill these positions. The CMCM reported to another aldermanic committee, with broader community service concerns, called the Committee for Community Services. This committee reviewed major expenditures and decisions impacting community service policy. All major expenditures were then reviewed by the Board of Control, consisting of the mayor and four elected controllers, prior to being sent to city council for final approval. As director of social services, Mr. Davis reported to the city administrator, Mr. J. Peterson, who in turn reported to the mayor. The combined elected and appointed reporting structure is shown in Exhibit 1. PURCHASING AND SUPPLY DIVISION (PSD) The PSD had purchasing and disposal authority for the citys engineering, fire, landfill/sanitation departments, and social services division, and for city hall building support. The city operated separate purchasing departments in the public utilities commission, the libraries, and the police department. Purchasing authority was granted to the PSD director and her buyers by municipal bylaw. This bylaw outlined the limits of purchasing authority and formed the basis of the PSDs Policy Manual for Purchasing, Tendering, and Disposal. The main objective of the PSD was to respond to the needs of other departments and divisions for goods and services at minimum cost, consistent with desired quality, delivery timing, and reliability. The PSD had expertise in the purchasing and tendering of goods and certain services, such as equipment rental, maintenance contracts, and engineering/architectural consulting. However, it had not dealt extensively with management consulting service procurement at that time. Elaine Taylor became director of PSD two years ago at the age of 35. Prior to this, she was chief buyer and assistant director of purchasing for the city of Forestview, similar in size to Winston. Elaine reported to the city treasurer, Mr. R. Holbright, and .