Research proposal writers

IMPACT OF PROCUREMNET STRUCTURES ON PROCUREMENT PERFORMANCE

1.1 Background to the study

Procurement is the process of acquiring goods, works and services. Public Procurement (PP) as a function of government includes decisions about the services that will be delivered to local authorities and the communities they serve (Hughes, 2005). It is utilized not only to secure goods and services required by public sector organizations for their missions and to support services provided to taxpayers, but it is also used to implement national policies and to achieve social and other objectives (Thai, 2005). Many national and international instruments have been concerned with building an effective procurement system. In this context, particular procurement issues, such as the implementation of secondary policies, the review mechanism to address complaints, provisions on electronic procurement or rules governing privately financed projects, have received an in-depth examination (De Castro, 2006). In the past decades, the public procurement system in Uganda has undergone significant developments. From being a system with no regulations in the 1960s, and a system regulated by Treasury Circulars in the 1970s, 1980s and 1990s, the introduction of the Public Procurement and Disposal Act (PPDA) of 2003 and the Procurement Regulations of 2003 has introduced new standards for public procurement in Uganda.

The gist of public procurement audits is to ensure that public funds are expended for their intended purpose, and with a view to maximizing value received by the public purchaser, ensuring that proper and accountable systems are in place and adhered to, and identifying any weaknesses in procurement (TISA, 2009) and as such public procurement audits ought to be adequately sensitive to procurement related issues (PPOA, 2007). The elaborate process of public procurement audit includes a bid process audit, contract audit, award audit, contract award audit, performance audit and disposal audit (RoK, 2003).

A public procurement process can be said to be well effective if it achieves the objectives of Transparency, competition, economy and efficiency fairness and accountability World Bank (2004). Procurement simply means acquisition by purchase, rental, lease, hire purchase, license, tenure, franchise, or any other, contractual means, of any type of works, service, or supplies or any combination PPDA ACT 2003. According to Country procurement Assessment Review (CPAR 2004) procurement effectiveness of public goods and services is imperative for good economic management and addressing leakages of government funds.

Procurement is usually one of the largest expense items in a company’s cost structure and can have a significant influence on company’s overall performance. Croom and Johnston (2003) recognize that procurement activity is an important activity in all organizations whether public, private or governmental. Procurement managers are constantly looking for solutions to lower the high procurement costs (processes, risks, reliability) by automating the supply chain (Attaran & Attaran 2002; Trkman & McCormack 2010).

In Uganda, the procurement law is governed by the PPDA Act 2003 which was enacted and implemented to address the inadequacies of the former Central Tender Board.  The law spells out the acceptable and prohibited procurement practice, recognizing that prohibited conduct constitutes malpractices and indeed an offense. The procurement law lays down the roles, expectations and limits of procurement officers engaged in procurement. However, whereas the law is clear in these aspects, there are officers who have flouted the law by engaging in procurement practices prohibited by the law. For example, according to the Auditor General reports (2008-2010), most district local governments in Uganda have engaged in violations against the provisions of the PPDA Act (2003).

Procurement involves many processes and stages during the purchasing process, this is because the key stages of need identification by the user is critical for the procurement process to start, while  specification, budget approval , and monitorinbg and evaluation oif the procurement process are key to the success of any procurement activity to ensure proper organizational performance. Mukono district local government is faced with numerous procurement challenges , mainly due to failure by the district to follow stipulated procurement laws ,  This study intends to investigate into the impact of procurement structures on procurement performance with specific reference to Mukono District Local Government.

1.2 STATEMENT OF THE PROBLEM

Regardless of the effort by the governments of developing countries, to improve performance of the procurement function, public procurement is still marred by shoddy works, poor quality goods and services,  Failure to implement or delayed implementation of recommended performance standards still exists this has  resulted  into  unnecessarily  high  operation  costs, uncoordinated business activities, and failure to attract and retain experienced and skilled personnel in the procurement positions.

It was reported in 2006 that the procurement functions of most public entities were not complying to set procurement process and performance procedures, leading to irregular and subjective decisions (PPDA, 2006), it’s not clear whether the above are attributes to existing procurement procedures , The study is seeking to establish impact of procurement structures on procurement performance basing on Mukono District Local Government.

1.3.0 Purpose of the study

1.3.1 General Objective

The purpose of the study is to assess the impact of procurement structures on procurement performance in Mukono District Local Government.

1.3.2 Specific objectives

1. To establish key procurement structures relevant to procurement performance in Mukono District Local Government.
2. To evaluate the relationship between procurement structures and procurement performance Mukono District Local Government.
3. To identify other factors affecting procurement performance in Mukono District Local Government.

1.4 RESEARCH QUESTIONS

1. What are the key procurement structures relevant to procurement performance in Mukono District Local Government?
2. What is the relationship between procurement structures and procurement performance at Mukono District Local Government?
3. What other factors affect procurement performance in Mukono District Local Government.

1.5 SCOPE OF THE STUDY

The scope of the study will include

1.5.1 Geographical scope

The study will be carried out in Mukono District Local Government. This is because of the convenience to the researcher in terms of cost and accessibility.

1.5.2 Time scope

The study time period will cover between 2010 and 2014 to allow adequate realization of the expected data from the respondents.

1.5.3 Content scope

The study will be centered on the effect of procurement structures on procurement performance. It will focus specifically on content such as the role of procurement structures, relationship between procurement structures and performance and other factors affecting procurement performance.

1.5 SIGNIFICANCE OF THE STUDY

The study findings may be significant in many aspects as follows:

The study finding may help to highlight more on the role of procurement structures in local governments.

The study findings may also help policymakers in local governments by availing them with information that they may use to procurement structures for better resource use.

The findings may be of great use to the academia, especially those who may wish to carry out further research on the relationship between procurement structures and procurement performance. More so, it will contribute to the body of knowledge that may be used by other researchers.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter discusses what various scholars have written about, the role of procurement structures on procurement performance ,  relationship between procurement structures and procurement performance and other factors affecting procurement performance.

2.2 Role of procurement structures on procurement performance

Need identification

According to the PPDA act, (2003), the user department has the responsibility of indentifying its needs before any procurement is made, this is also the first step in the procurement processthis stage involves the user department in an organization simply identifying what it needs before any procurement is done. in the private sector In the top-down approach, decision makers who are responsible for the permanent analysis of economic and social developments under their authority, will identify situations that need improvement, and/or try to find opportunities for a more prosperous development. Then they request the executive public administration bodies to develop a project idea for example to improve the public infrastructure, or public services in health and education, (Lysons, 2006).

Analyzing of organizational priorities

This involves a number of activities including; Conduct market analysis to gain awareness of the products/services that are available for procurement, Perform a make vs. buy analysis,  Estimate investment costs of the Procurement Plan, Set clear and reasonable timelines for delivery or implementation, Based on the Procurement Plan, obtain authorization to proceed from appropriate levels of approval authority, (basheka, 2005),.

Determination of budget

The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget.

If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an ‘out of control’ signal, and the share price could suffer. Campaign planners incur two types of cost in any campaign: the first is the cost of human resource necessary to plan and execute the campaign. the second type of expense that campaign planners incur is the hard cost of the campaign itself.

Specification development

According to Bailey et al (1996) argues that there are two approaches to specifications; performance and conformance and both determine the quality of products which will result into procurement effectiveness, bailey further says that when specification is made by end users, purchasing function becomes efficient in provision of goods and services.

2.3 Relationship between procurement structures and procurement performance

Reduction of emergency procurement, According to procurement news (2005) it was reported that were procurement planning is inadequate; it has resulted in short comings of poor procurements made. Sakire & Unit (2006) in their analysis of the public procurement procedures in Turkey singled out more specifically that the first step as an important activity of procurement planning or procurement law is determination of needs. Therefore procurement planning has to be done after knowing needs of end-user.

Law is determination of needs. And that procurement carried out under appropriate conditions and timely manner leads to efficiently use of resources. LGDP reports and guidelines (2001 to 2005) also support the above view.

Never the less procurement planning does not only involve needs determination or what to procure.

According to the PPDA ACT 2003 end user   initiate procurement and disposal requirement and forward them to the procurement and disposal unit.

According to Drury, (2000), coordination of various future activities of an organization is by preparation of plans actions for future periods this minimizes risks and increases the degree of organizational success. Drury also further says that procurement plans made by the district should be to help in organization control and facilitate communication to ensure success in achievement of the required objectives.

Cole (1997) also argues that planning can lead to improved efficiency and effectiveness in delivery of goods and services he further says that planning is a deliberate attempt to design a future course of action with view to optimize the use of resources. He goes ahead to certain that an organization without a plan has planned to fail because it had not had particular route to follow.

.

According to UN (2006), Good procurement planning is essential to optimize the contribution of the procurement function towards achieving the overall goals of the organization. UN (2006) asserts that good procurement planning supports: transparency, Development of Key Performance Indicators (KPIs) according to milestones and accountabilities set in the procurement plan, and use of the same to monitor performance, Effective and timely solicitation of offers, award of contracts and delivery of the goods, services and works required,  Early requisition to reduce any delays in procurement and timely delivery to project sites,  Early identification of right commodities and quantities to meet programme needs, Sourcing the right suppliers on time to avoid cutting corners under rush procurement to meet deadlines or budget expenditure, Effective supply strategy and timely programme and project implementation.

Proper coordination between end user with procurement staff

Procurement staffs decide on the contracts to take on, the tenders to award preparation of bids, advertisement of bids and also proposing appropriate procurement methods (PPDA ACT and regulations 2003).

Procurement staff also is completely aware of the market situation so they were always advice end user on the better alternatives available.

Public procurement contracts provide the mechanisms by which the national development goals of states can be attained. According to Arrow (1997), public procurement contracts are means of achieving national development objectives.

According to New vision (2011) Public procurement is often plagued with corruption, unfair practices and price collusion in view of the huge amounts of money involved and there should coordination between different departments to encourage effectiveness in the system.

According to the PPDA ACT (2003) section 34 (a) it states that end user liaise with and assists procurement and disposal unit thought the procurement or disposal process to the point of contract placement.

Basheka B.C (2009) observed that in the last five years, corruption has been placed high on the international agenda. Corruption has taken an alarming dimension in recent years at the same time spreading in geographical and growing in intensity. Illicit payments now account for approximately ten to twenty percent of international transactions.

Enables Developing proper procurement policies.

If policies are ineffective, employees lack comprehension and it is difficult to explain to end users the why of the policies. Policies are only good if everyone understands them and can explain and defend them. Planning is deciding in advance what to do, how to do it, who will do it and when it will be done. If your employees don’t know why your business does what it does, where the business is going and how you will measure success, then it’s difficult to communicate your business value to your end users therefore good procurement policies need to be adopted and developed in order to achieve procurement effectiveness Erridge (2001).

Maintaining an effective communication with the supplier.

In order to supplier what is needed According, to Nicol w (2003), all correspondence and communications with the vendor regarding problems, proposed changes, or the implementation of the procurement decision should be effective , According to McIvor (2005), in managing outsourcing relationships, communication with the vendor is of utmost importance during the life of the contract. Knowledgeable internal staff must be available to identify problems and work with the vendor to resolve them. Vendor selection should have provided a vendor whose business/functional culture aligns with that of the organization, so that communication is fostered and developed to support the effort should be documented and kept in order to resolve disputes or identify areas of strengths and weaknesses

Public entities involved in procurement should practice and encourage competition

and accountability.

Erridge et al (2001) point out that competition should deliberately enable bidders to compete with one another under the same terms and conditions using a relevant procurement method with a view to maximizing value for money. They point out that such competition should be non-restrictive, give sufficient time for bidding, and use standard bidding document and make bid evaluation using the same criteria. The authors describe accountability to include promotion of information sharing among all the players indicating reasons/ bases for certain actions / decisions and providing written or spoken description of what has happened under ones trust.

Improved value for money, when there is value for money it means that even corruption is greatly reduced According to Basheka (2004),Procurement in local government in Uganda has not been corruption-free. Public procurement, at the local government level, is believed to be one of the principle areas where corruption in Uganda takes place (National Public Procurement Integrity Baseline Survey, (2006). Corruption is disastrous to the well functioning of any government department. Corruption has been an intractable problem in many developing countries; especially where it has become systematic to the point where many in government have a stake. This leads to ineffectiveness in the procurement system and value for money cannot be achieved if there is corruption.

end user participation also  is critical to developing effective procurement strategies and hence the best value for money outcomes. end user  provide relevant Information which is critical for provision of goods and service which suite their taste and preferences and hence Analyzing supply markets which provides information that can be used to explore opportunities to advance organization priorities by identifying; competitive local suppliers and suppliers who can offer products with improved sustainability performance, provide valuable information about suppliers’ strengths and weaknesses for post-offer negotiations where the outcome may improve value for money, identify comparable substitute goods and services that offer better value for money and identify opportunities to plan and schedule procurement to provide benefits for bothsuppliers and buyers.

Bring about effective competition, ensured that the organizations obtains a ‘healthy and competitive’ response to its requirements, thereby contributing to the achievement of high quality products, services and works resulting to effective procurement activities.

Identification and management of supply-related risks, end user participation assist in the development or redefinition of specifications to encourage competitive offers, identifying any standards to which goods or services must comply, it provides information which can assist in negotiations, where this may lead to reduction in the ‘degree of business risk’ and ensure that all procurement activities are done in line with the governing laws Nicol, W. (2003).

Reduction in costs of purchased components and materials, procurement effectiveness is essential to reduce on avoidable costs in procurement these costs are like purchase of unwanted goods, thought can be used to look for sources of greater value within the supply chain. The increasing development of the procurement function into strategic elements such as the management of the supply chain, world class status, lean supply cost of ownership, and so forth requires end user participation in the procurement process market intelligence to achieve best results Lysons ( 2007) says that reduction in the cost of procurement is the key procurement aim.

Dave Chaffey ,(2007) also ague that when the cost of purchased products is reduced in terms of lower acquisition costs,  shorter time of acquisition of goods and also reduced cost in transportation is a sign of purchasing effectiveness.

Customer service quality means understanding the customer’s needs and wants and identifying ways to meet or excel them. Customers are satisfied when they receive the total product they desire at a price they can afford and accept (Noor and Radford, 1995). The level of customer satisfaction is the result of a customer’s comparison of expected customer service quality with perceived service quality (Ossel, 1998). A customer will be satisfied if the perceived overall service level meets his or her expectations. If an organization fails to do, this, and customers have other means of satisfying their needs, the customers will migrate and the firm will fail. Customer service will also lead to Customer satisfaction leads to customer loyalty, which is crucial for long term profitably (Noor and Radford, 1995). Loyal customers spend more, refer new clients and are less costly to do business with. On the other hand, customers are likely to switch suppliers because of poor service quality rather than poor product quality. Baines (1992), further adds that the effects of poor service are not only confined to customers perceptions of quality, nut all the checking clarifying instructions making corrections dealing with customer complaints, rectification etc, also add up to  a major cost penalty, generally known as the cost quality, which can represent up to 40% of sales. Wood and Pitts (1992) argue that attracting new customers is about six times as expensive as retaining an old.

2. 4 FACTORS AFFECTING PROCUREMENT PERFORMANCE

Value for money, when there is value for money it means that even corruption is greatly reduced According to Basheka (2004),Procurement in local government in Uganda has not been corruption-free. Public procurement, at the local government level, is believed to be one of the principle areas where corruption in Uganda takes place (National Public Procurement Integrity Baseline Survey, (2006). Corruption is disastrous to the well functioning of any government department. Corruption has been an intractable problem in many developing countries; especially where it has become systematic to the point where many in government have a stake. This leads to ineffectiveness in the procurement system and value for money cannot be achieved if there is corruption. end user participation also  is critical to developing effective procurement strategies and hence the best value for money outcomes. end user  provide relevant Information which is critical for provision of goods and service which suite their taste and preferences and hence Analyzing supply markets which provides information that can be used to explore opportunities to advance organization priorities by identifying; competitive local suppliers and suppliers who can offer products with improved sustainability performance, provide valuable information about suppliers’ strengths and weaknesses for post-offer negotiations where the outcome may improve value for money, identify comparable substitute goods and services that offer better value for money and identify opportunities to plan and schedule procurement to provide benefits for bothsuppliers and buyers. Bring about effective competition, ensured that the organizations obtains a ‘healthy and competitive’ response to its requirements, thereby contributing to the achievement of high quality products, services and works resulting to effective procurement activities.

Zou, et al, (2007) observed that the Chinese Government requires project clients (owners to enhance on site supervision). On site project supervision process is essentially the responsibility of the supervisory company which is usually appointed by the competitive selection process.Milican and Monicious (2005) note that as organizations mature the nature of on-site supervision reduces but in the initial stages site supervision is necessary to ensure that service delivery is efficient.

Char et al, (2005) asserts that professionals and researchers recognize the need for proper training and widening experience in providing proper services to the customers in a competitive business environment. A successful contract quality assumption system needs an adequate supply of conscientious workers. Barthelemyet al, (2004), observed than any out sourcing contract should include clause confining, dispute procedures; who has responsibility for write and the lines of reporting. When entering a contract there is need to ensure the parties interpret the contract in the same way to achieve the desired quality levels (lester et al, 1997).

Boroughs et al, (2008) argue that service delivery is more than simply meeting specification and that the customer’s point of view is very important because the quality is what the customer says it is and it’s the customer who set the quality and value of service but not company. The author further says that customers consider reliability and ability and service effectiveness as indicators of service delivery.

Cooper et al, (2004) contented that if service delivery is to be achieved, every employee should get involved in the decision making that makes them feel they are part and own the company, Other than leaving the responsibility to one department with management taking the lead. They add that participatory work style and the change in the thinking that makes every employee responsible for service delivery is critical in sustaining organization process of the organization.

A study by young, (2008) found that, monitoring quality enabled organization ensure they are supplied with quality products at the same time reduced the cost of acquisition of purchases. Monitoring quality by the contracting institutions help storeduce costs in the service delivery process while ensuring active commitments to continuous improvement to attainment of quality (Uronet al, 2005).

Whereas there is an increase in the total amount of funds available to government bodies in Uganda, their economic and financial profile is still poor as compared to the development programmes expected to be carried out. Ahmed, (2005) noted that many government bodies in Uganda, however, are unable to deliver services to residents. He said this might be because of lack of finances or lack of capacity to provide a good service at an affordable price. So government entities should find other ways to ensure that the services are improved and reach the people most in need of them.

Johan, (2006) argues that hard-earned and limited resources allocated to government entities are always misused. Priorities are misdirected; projects are done without due consideration of the demands of their stakeholders but based on selfish motives and exaggeration of the political leadership in collaboration with the senior administrators at the government entities’ level of administration. This situation is similar to the mismanagement and embezzlement of these funds by the councils (Bailey, 1998).Lawal (2000) further asserts that corruption has been rampant among the senior government bureaucrats to whom public funds meant for developmental purposes are entrusted.

At every stage in public procurement, there are risks of integrity right from procurement planning through to contract management (OECD, 2007). All these affect service delivery at the end of the day. If government parastatal bodies fail to manage these risks, accountability and eventual service delivery is greatly endangered.

According to Nadiope, (2005) there is need for trained procurement personnel in order to ensure service delivery improvement in government parastatal, the author further observes that the government lacks trained procurement personnel as most of the procurement officers either lack professional competence or the academic qualification. In Uganda the need for training procurement personnel particularly to contract management can only be established after what is known about the same has been established. Public Procurement Authorities must continuously formulate and implement strategies to address the existing capacity gaps within PDEs especially in the area of contract award and management so that service delivery efficiency is meant and realized by the government parastatal bodies. This is evidenced by the PPDA Capacity Building Report (2010) which noted that some PDEs had serious constraints in execution and monitoring of contracts.

In an effort to attain these demands, organizations constantly look for employees who have skills necessary to deal with the wide variety of tasks (Monczka et al., 1998; Sauber et al., 2008). Notwithstanding the above, Lan, Riley and Cayer, (2005) suggest that finding, hiring and retaining dedicated, energetic, and ethical employees with special skills is always hard. The supervisors (contract managers) should be knowledgeable in contract management. Organizations must, therefore, assign experienced staff to supervise the consultant and contractors for effective service delivery. This should be accompanied by proper record keeping in order hence eliminating errors in the contract management process in order for the service delivery effectiveness realization.

The public procurement regulatory framework dictates that contracts must be drawn carefully involving all stakeholders for completeness to avoid as unnecessary deviations in order for the achievement of service delivery effectiveness to the population, Minahan, (2007) notes that it is possible to design contracts that are robust enough to profitably continue operations in the face of expected deviations and unexpected disruptions and quickly recover from disasters. The foundation is a strong, stable supply network forged from good supply base management, strong supplier links, and continuous improvement and a corporate culture that embraces change and flexibility. But one may ask whether multi-stakeholder collaborations are important and how sustainable are they? While attending the Common Market for Eastern and Southern African (COMESA) Trainers of Trainers Workshop held in Addis Ababa, Ethiopia from 25th July-5th August 2010, participants identified key issues that can influence contract management to assure service delivery to the public as follows; apportioning of resources; clear reporting lines, defining of roles and responsibilities, ensuring timely payments and managing of risks.

According to, Thai (2005) and Bolton (2006),  contract management challenges in both public and private organisations are endemic in any contractual relationship due to lack of transparency and poor record keeping the authors further recommend for an increased level of transparency in contact management for the attainment of efficiency in service delivery in public organizations.

Successful contract management and completion is often defined, as procurement of the right item, in the right quantity, for the right price, at the right time, with the right quality, from the right source (Thai, 2004), The author further contends that effective management of the contract enhance transparency in contract management so that service delivery effectiveness in public institution is achieved. However Prager (1994), contends that proper and effective management and monitoring of contracts helps improve the quality of goods and services and reduces procurement cost thus achieving three broad goals: quality products and services, timely delivery of products and services, and cost effectiveness (within budget).

In the process of ensuring that contract management successfully takes the right course, all the parties involved must keenly pay attention to all provisions in the given or existing contract as such will help the organization in achieving of service delivery effectiveness, (Sanders, Locke, Moore, & Autry, 2007; Laratta (2009) and Saunders, 2000). Successful and efficient contract management practices are those that meet the needs of the company’s stakeholders, achieve optimum conditions and value in regard to the allocation of scarce tax payers resources (best value for money), ensure rational and efficient of funds available, stimulate valuable competition and manage the risk and potential liabilities to the buyer thus improving service delivery.

McCrudden (2004) highlights factors such as delayed funding from the government, bureaucracy in the procurement system and poor capacity of local contractors contributing poor contract implementation, hence hurting service delivery, the author further states that if the government is to realize service delivery effectiveness funding must be availed to the different government institutions in time to enable them plan earlier so not compromised. In Uganda, funds are only released only when an entity has met the basic accountability requirements and when there is money in the treasury. All this makes it almost impossible for the service providers to do their work effectively and in the shortest time possible and hence making it hard for them to meet the scheduled deadlines. This is supported by Martin and Miller (2006) who argue that standards set are usually weak and are often not adhered to and as a result quality is compromised. Abi-Karam (2002) suggests six types of constraints: proposal writing, surety and liability schedule, contractual, performance that service delivery is and price constraints. Davison and Wright (2004) further expound on the definition of these challenges to include their relationship to the procurement process and the criteria for successful contracting. They further break down the challenges as such: Acceptance of wrong Products either as a result of poor specifications or laxity of the suppliers causing unnecessary delays in service delivery

Elimination of corruption is imperative in  enhancing service delivery effectiveness in a public institution, (Charles &Oludele, 2003), A World Bank survey of government and civil representatives in the sixty developing countries confirmed that corruption is one of the greatest obstacles to successful contract management and service delivery effectiveness. The procurement function of an enterprise is for example one area that is targeted second most by fraudsters, (Plavsic, 2004). Helsby and Kaizer (2003) contends that enterprises should do more to prevent fraud by actively evaluating and estimating the obstacles that maybe encountered in the process of execution and that these measures should be closely supported by ongoing monitoring. Corruption in Africa is significant, unabated and country specific, driven by conditions ripe for unaccountable and less than transparent behavior. Of the 34 African countries ranked in the Corruption Perception Index (CPI) produced by Transparency International in 2004, only six African countries were ranked in the top 50 per cent of the 146 country index.

This assertion could probably explain Uganda’s poor Corruption Perception Index (CPI Reports, 2009; 2010 and 2011) as being as low as 2.5. A research study done by Kramer (2003) and Cooper, Farank and Kemp (2000) indicates that the most significant fraud schemes occur in, or as part of, the procurement process partly because of the huge public procurement expenditure this therefore makes countries loose billions of tax payers money in such corrupted ways hence hampering service delivery in public sector, the authors further contend that eliminating corruption is crucial towards attaining service delivery effectiveness in a government parastatal.

For service delivery effectiveness to be achieved in a public institution control of inflation is instrumental since inflation can make the contract management system in any business organization fail to carry out or rather implement its policies successfully and smoothly this normally happens when the prices for the products to be supplied keep on changing. If the price of the commodity to be supplied increases greatly compared to the one that was set at the time the contract is signed, the supplier is more likely not to supply such commodities on time hence sabotaging the smooth running of the business organization and hurting service delivery, Levy and Ferazani 2006).

Stake holder involvement is necessary if service delivery effectiveness is to be achieved , In the process of ensuring that contract management successfully takes the right course, all the parties involved must keenly pay attention to all provisions in the given or existing contract (Sanders, Locke, Moore, & Autry, 2007; Laratta (2009) and Saunders, 2000). Successful and efficient contract management practices are those that meet the needs of the company’s stakeholders, achieve optimum conditions and value in regard to the allocation of scarce tax payers resources (best value for money), ensure rational and efficient of funds available, stimulate valuable competition and manage the risk and potential liabilities to the buyer thus improving service delivery.

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter elaborates the entire design of the study and how it will be carried out. It explains how the study will be conducted, the area of the study, sample size and sampling technique and indicates how the data will be collected and analyzed as well as the limitations that may be encountered during the study.

3.1 Research Design

This will be a case study adopting cross-sectional survey design in gathering of data on the impact of procurement structures on procurement performance. A cross-sectional survey will be used because it’s relatively inexpensive and takes up little time to conduct. Both qualitative and quantitative data will be collected and analyzed. The combined analysis will be helpful in that qualitative approach generates rich details and valid data which will contribute to the depth understanding of the research problem. Quantitative approach will generate reliable information based on gathering data using numerical figures. Both approaches will complement each other and help reconcile the findings. Case study design will be adopted in order to get personal opinions from respondents.

3.2 Study Population

The study will target District Officials, the procurement staffs of Mukono District Local Government, Finance officers and politicians. of the district and pre-qualified service providers.

3.4 Sample size and Selection

Using Krejcie & Morgan, (1970), a sample size of 30 will be selected among all categories of respondents using purposive, and simple random sampling. This will improve on the reliability of data to be collected in this study.

Table showing sample size of respondents

Source: Mukono District Local Government

3.3 Sampling Techniques

Mugenda and Mugenda (2003) argue that it is impossible to study the whole targeted population therefore the researcher will take a sample of the target population. A sample is a subset of the population that comprises members selected from the population. Cluster sampling, simple random sampling and Purposive sampling method will be employed in investigating respondents.

3.3.1 Purposive sampling

According to Jupp, (2006) Purposive sampling (also known as judgment, selective or subjective sampling) is a sampling technique in which researcher relies on his or her own judgment when choosing members of population to participate in the study, this will be used because it is cheap and the population is also small.

3.3.2 Simple random sampling

Simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen, this will be chosen because it prevents bias.

3.5 Data Sources

The study will be conducted basing on both primary and secondary source of data.

3.5.1    Secondary data Collection

According to Roston, (2001) defines secondary data as that kind of data that is available, already reported by some other scholars. Secondary data will include policy documents and abstracts of the various scholars relating to the topic of discussion in question. Secondary data for this study will be got from sources like libraries, archived records of compliance practice and related organizations. This is because it might be readily available and easier to comprehend, as it comprises of extensively researched work.

3.5.2 Primary Data collection

According to Roston, (2001), primary data is that kind of data that has been gathered for the first time, it has never been reported anywhere. Short comings of secondary data sources such as out datedness and inadequacy in terms of coverage, necessitated the use of primary sources for first hand data. Self-administered questionnaire will be used and this may enable the researcher to cover a large population quickly and at a reasonable cost.

3.6 Data Collection Instrument

3.6.1 Structured Questionnaire

The questionnaire will be used on the basis that the variables under study cannot be observed for instance the views, opinions, perceptions and feelings of the respondents. The questionnaire will be open and closed ended with a likert scale on five anchors. The researcher will choose the questionnaire as an instrument because the study will be virtually descriptive and the tool is an easy method of data collection. Respondents respond honestly because of anonymity. It’s also time saving and cost effective.

3.7 Reliability and Validity of data

Data analysis in this study will focus on data validity and reliability. To establish the validity of the questions, pre-testing will be done amongst the selected categories of respondents. Their comments will be incorporated in the final instruments to suit the data requirement of the study. The final amended research instruments were reviewed jointly by the researcher and the supervisor. Reliability will be checked using the test –retest practice advocated for by Amin (2005). In other words, the questions will be put to course mates and their comments noted, they will then be presented to the respondents and their views will be compared with those of the course mates. On receipt of the questionnaires, manual editing will be done, followed by coding. Frequency count of different variables will be done and this will give the number of occurrences and percentages out of total occurrences.

3.8 Data collection Procedure

The researcher after designing and pre-testing data collection tools will obtain a letter from Kyambogo University introducing her to the district authorities. She will then approach the district authorities for permission to collect data from the district after explaining the purpose of the study.  Upon being allowed she will contact some respondents to build rapport with them and make appointment. Then she will get back on an appointed date and administered questionnaires. Then questionnaires that will be filled that day will be collected, while those that are not completed will be collected later as agreed with respondents. During the time of administering questionnaires, the researcher also will contact key informants, and make appointment with them for an interview. Then she will go back again on the agreed dates and conduct interviews, using the interview guide.

3.9 Research Variables and their Measurements

The variable of the study will be measured on a five point Likert scales ranging from 1- strongly disagree to 4-Strongly agree. The choice of this measurement is that each point on the scale will carry a numerical score which will be used to measure the opinions of respondents.

3.10 Data Processing and Analysis

After receiving the filled questionnaires from the field, a data entry capture template will be designed in Statistical Package for Social Scientists (SPSS), which will be used for data entry and cleaning. For exploratory factor analysis, frequency distributions, percentages and cross tabulations will be run to summarize the respondent’s views on the questions under study.

3.11 Anticipated Limitations

Some respondents may be too busy with work related activities hence responding may require persuading respondents to spare some time to answer questionnaires.

Most respondents may be suspicious of spies. But the researcher will try much to explain the academic purposes of the research.

Some respondents may give false information to protect their images. However, the researcher will assure them of the purpose of information to be collected.

Financial constraints may present another challenge to the researcher but the researcher will try her best to make sure she minimizes costs by taking on this research in a relatively short period.

REFERENCES

1. Amin M (2005) Social Science Research Concepts, methodology and Analysis Makerere University Kampala.

2. BaiIey and David Farmer ‘managing materials in industry, 1998, Grower press ISBN. 0716101130’

3. Basheka, B. C.(2009) Public procurement corruption and its implications on effective Service delivery in Uganda: An empirical study , International Journal of Procurement Management, vol.2 Number 2, pp 415-440

4. Dave Chaffey ,2007 ‘e-business and e-commerce management 3^rd edition prentice hall ISBN 0-273-70752-3’

5. Drury, C. (2000), Cost and Management Accounting, Thompson, Learning.

6. Erridge Andrew, Fee Ruth and Mellroy Joy (Eds) (2001). Best Practice procurement: Public and Private Sector Perspective, Gower.

7. Everett, C. (2000), Production and information Management concepts, models and behavior, Prentice Hall, London.

8. Kenneth Lysons and MichealGillingham, 2003 ‘purchasing and supply chain management 6^th edition prentice hall ISBN 027365764X’

9. National Baseline Integrity Survey Report (2006) National Baseline Integrity Survey Report (2008)

10. Nicol, W. (2003). “Mainstreaming the Procurement Function into the Public Expenditure Policy and Effectiveness Dialogue.” Paper presented at the World Bank Roundtable, Paris, France, January 22-23. [On-line]. Available at oecd.org.

11. Pegnato, J.A. (2003). “Assessing Federal Procurement Reform: Has the Procurement Pendulum Stopped Swinging?” Journal of Public Procurement, 3 (2): 145-175.

12. PPDA ACT 2003

13. Sakire and unit 2006 public procurement procedures

14. Thai K.V (2004), Developing and managing Request for proposals in the public sector, 1^st NIGP, Florida USA.

15. World wide commission on environment 1998.

16. New vision

17. Daily monitor

18. Procurement news 2011

APPENDIX I: QUESTIONNAIRE

TOPIC: IMPACT OF PROCUREMNET STRUCTURES ON PROCUREMENT PERFORMANCE

A CASE STUDY: MUKONO DISTRICT LOCAL GOVERNMENT

Dear respondent

I am a student of Kyambogo University, am carrying out a study on the above stated topic. You are one of the respondents randomly selected to participate in the study. The information given shall be treated with at most confidentiality and shall only be used strictly for academic purpose.

SECTION A:             GENERAL DATA

1. Which department do you belong to in this organization?

PDU                     administration                            finance

politicians

• Sex: Male                    female

• Age a) 18 -29 b) 30 – 39 c)  40 and above

• Educational level

Certificate                               Diploma                      Degree                     Others

5. For how long have you been working with Mukono district local governments?

Less than one year                                     2-3 years

1–2 years                                                  above 3 years

Please tick one appropriate.

SECTION B:  Role of procurement structures on procurement performance

Key:SA=Strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

Please tick one appropriate.

SECTION C: Relationship between procurement structures and procurement performance.

Key:SA=strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

Please tick one appropriate.

SECTION D: 4.7. FACTORS AFFECTING PROCUREMENT PERFORMANCE.

Key:SA=Strongly agree,A=agree,N=neutral,D=disagree,SD=strongly disagree

THANKS FOR YOUR COOPERATION