research consultancy

research consultancy

CONTRACT MANAGEMENT AND SERVICE DELIVERY IN UGANDA PARASTATAL BODIES

CASE STUDY: UGANDA NATIONAL BUREAU OF STANDARDS

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Service delivery is a contemporary issue for most governments and researchers alike. Most scholars are in agreement that public service delivery is critical to ensuring the national welfare and stimulation of economic development. This is because oftengovernments undertake a number of activities to provide citizens with services and at the same time guarantee that these services are provided in accordance with the service delivery requirements within the rule of law(Mampe, 2012; Bola, 2011; Nandain, 2006; Kaunda 2005 and Shan 2005).

Government parastatal bodies are realizing that efficient service delivery improves value for money (Dugganetal, 2008). Accordingly, parastatal bodies must find ways of improving efficiency and effectiveness of service delivery.In public procurement, service delivery management is concerned with meeting fully the deliverables that were agreed upon in the contract, (Shah, 2005).This however requires supplier’s close monitoring by way of implementing contract management in line with the agreed upon deliverables set out in the contract. While the Clackmannanshire Council (2013) emphasizes the need for service delivery to be managed throughout the lifetime of the contract to ensure that goods/services are delivered in line with the performance or service level expectations as identified in the original contract.

Contract Management in public procurement has significant implications for service delivery (Oluka etal, 2014).He further believes that contract management offers an important framework for ensuring the success of any procurement undertaking for which service delivery is one of them. Aberdeen group (2006) found outthat inefficient management of supplier contracts and unclear policies and procedure can have significant impact on the enterprises and hurt service delivery of which some of these effects include cost over runs and exposure to risks for both parties in the contract.While Joshua et al, (2004) in a study comparing similarities and differences of key contracting components for city, state and federal governments of the united states of America, Found that for all government in the federal systems, the public management functions of contracting are remarkably similar, and the contract management and the achievement of accountability are weak links in the contracting process.Walton, 2009; Elsey, 2007, refer to Contract management as an aid to parties to a contract to meet their obligations in order to deliver the objectives required of the contract. Contract management, except the capacity toamend or terminate, shall pass from a procuring and disposal unit to a user department on award of contract (PPDA Act, 2003; PPDA Amendment Act, 2011) for management of service delivery.

Lynch, (2013) believes that Contract management in public procurement has been a neglected area. In Australia, the Australian Government Audit office report (2007) estimated about 30% of the audited contract management process, had irregularities and indicates that the deliverables specified in the statement of works had not been received, either in whole or in part. In Uganda Baseline Survey Report on Public Procurement Systems in Uganda (PPDAA, January 2010), there were significant variances between the actual and indicative time frames in contract completion. In addition, Sabiiti notes that the Government at times pays for no work done or very shoddy work and sometimes, contracts are not delivered on time which has affected the ability of the Government to deliver quality services to the general public (as cited in Rwothungeyo, 2013).Meanwhile the Public Procurement and Disposal of Public Assets Authority (PPDA) Audit reports of UNBS, (2009 and 2013) indicate high riskswith 27% and 19% in 2009 and 2013 respectively accruing from service delivery management where there were missing contract management records, delayed payment for received goods and services and delayed deliveries.

Although the UNBS strategic plan for 2010-2015 has put in place mechanisms for tracking and reporting procurement departmental work-plan activities whose key outputs are as a result of good service delivery through good contract management processes, service delivery is still not up to the UNBS stakeholder expectations and this is evident in the complaints of poor quality of products/services received, high cancellation of contracts, high priced goods/services, lack of delivery or partial delivery, delayed completion of contracts, missing contract management documents among others (Mubangizi, 2013).

1.2 Statement of the problem:

UNBS PDU annual report, (2012) indicates over 200 awarded procurement contracts in financial year 2011/2012 but the levels of service received/delivered on most of these procurements remain unknown. Mubangizi (2013) reported high complaints of poor quality products/services delivered with30% contracts cancelled, 5% of contracts either not delivered at all or received in part, 10% deliveries made over the stipulated delivery period and 60% of the contracts performed paid after 30days stipulated payment period, high priced goods/services and missing contract management documents among other issues. The persistent high complaints in service delivery in UNBS warrant examining the influence contract management on service delivery.

1.3 Purpose of the study

The purpose of the study is to examine the influence of Contract management on Service delivery in UNBS

1.4 Objectives of the study:

1. To establish a relationship between contract management and service delivery.
2. To establish other factors that may influence service delivery in parastatal bodies.

• To suggest recommendations for service delivery improvements in UNBS.

1.5 Research Questions:

1. What is the relationship between contract management and service delivery?
2. What are the other factors that may influence service delivery in parastatal bodies?

• Are there recommendations for service delivery improvements in UNBS?

1.6 SCOPE OF THE STUDY

1.7 Subject scope

The scope of the study will cover Contract Management and its influence on service delivery.

1.7.1 Geographical scope

The researcher will consider UNBS regional offices; UNBS headquarters in Nakawa and UNBS offices in Kanjokya.

1.7.2 Time scope:

The researcher will study the period from 2010 to 2017 because that is when UNBS intensified its efforts to improve service delivery. The research shall be carried out for a period of three (3) months i.e. May to August, 2017.

1.8 Significance of the study

The study will recommend service delivery improvements to UNBS management.

The study will inform policy makers the influence Contract management in service delivery

The study will add on to the existing body of knowledge on contract management and service delivery for future researchers.

1.9 Conceptual frame work

Figure 1: Diagrammatic expression of the relationship between contract management and service delivery of the parastatal bodies in Uganda.

Contract management

Source: Developed by the researcher from Kyte (2003), Krappe and Kallayil (2003), Art et al (2008), and Drallo and Thuiller (2004).

This conceptual frame work shows the relationship between contract management and service delivery.

It is conceptualized that the dependent variables of contract monitoring stakeholder involvementand records management have a direct influence on service delivery and the intervening variables in the form of influence, police enforcement and media publicity have a negative effect on the relationship between the independent and dependent variables.

Contract monitoring can affect service delivery for instance through on ground inspection. If UNBS continuously inspects the project activities on the ground, they would be in position to identify fake productsand equipment, poor services in the deliveries made before acceptance can be granted.

Stakeholder involvement; this also has an effect on service deliveryfor examplehow the internal and external stakeholders their interest activities affect service delivery.