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EFFECTS OF PROCUREMENT METHODS ON PUBLIC PROGRAMS / PROJECTS’ PERFORMANCE

 

 

 

 

 

Table of Contents

EFFECTS OF PROCUREMENT METHODS ON PUBLIC PROGRAMS / PROJECTS PERFORMANCE. CASE STUDY OF UNBS. 1

DECLARATION.. 2

APPROVAL.. 3

DEDICATION.. 5

ACKNOWLEDGEMENTS. 6

ABSTRACT. 7

CHAPTER ONE.. 8

INTRODUCTION.. 8

1.0 Introduction. 8

1.1 Background of the study. 8

1.2 Statement of the problem: 11

1.3 Purpose of the study. 11

1.4 Objectives of the study: 11

1.5 Research Questions: 11

1.6 Scope of the study. 12

1.7 Subject scope. 12

1.6 Scope of the study. 12

1.7 Subject scope. 12

1.7.1 Geographical scope. 12

1.7.2 Time scope: 12

1.8 Significance of the study. 12

1.9 Definition of key terms. 12

1.9.1 Procurement 12

1.9.2 Procurement planning. 13

CHAPTER TWO.. 13

LITERATURE REVIEW… 13

2.0 Introduction. 13

2.1 Theoretical framework: 13

2.1.2 The Contingency Theory. 14

2.1.3 Different procurement methods. 15

Domestic competitive bidding. 15

International competitive bidding. 18

Direct Procurement 20

2.1.4 Effects of procurement methods on project performance. 23

CHAPTER THREE.. 29

METHODOLOGY.. 29

3.0 Introduction. 29

3.1 Research Design. 29

3.2 Area of the Study. 29

3.3 Target population. 29

3.4 Sample Size, Techniques and Selection. 29

3.5 Research Instrument 30

3.6 Measurement of Variables. 30

International competitive bidding. 31

Domestic competitive bidding. 31

Direct procurement 31

MODEL ESTIMATION.. 31

3.7 Validity and Reliability. 32

3.7.1 Validity. 32

3.7.2 Reliability. 33

Table 3.3: Shows Reliability of research instruments. 33

3.8 Data Collection Procedure. 34

3.9 Data Sources. 34

3.9.1 Primary Data. 34

3.9.2 Secondary Data. 34

3.10 Data Processing. 35

Analysis. 35

3.11 Limitations. 35

Non responses. 35

Cost 36

Time. 36

CHAPTER FOUR.. 37

PRESENTATION OF FINDINGS. 37

4.1.1 CORRELATION ANALYSIS OF DOMESTIC COMPETITIVE BIDDING ON.. 37

4.1.2 REGRESSION ANALYSIS OF DOMESTIC COMPETITIVE BIDDING ON QUALITY.. 38

International competitive bidding on Quality. 39

Regression analysis between International competitive bidding on quality. 39

Chi-square test for the relationship between international competitive bidding and quality purchases at UNBS  40

Domestic Restrictive Bidding. 41

Regression analysis on the effect of Domestic restrictive bidding on timely purchase. 41

International restrictive bidding on timely purchase. 42

The chi-square test for the relationship between International restrictive bidding on timely purchase  42

Direct procurement on return on return on investment 43

Correlation coefficient between direct procurement and quality purchase. 44

Correlation between Direct procurement and timely purchase. 44

Correlation coefficient between procurement methods and project performance. 45

Regression Analysis. 45

CHAPTER FIVE.. 47

DISCUSSION OF FINDINGS. 47

5.0 Introduction. 47

5.1 Discussion of findings. 47

5.1.1. To document different procurement methods.​ 47

5.1.2 Examine effects of procurement methods on project performance. 49

5.3 Conclusion of the study. 50

5.4 Recommendations of the study. 51

5.5 Areas of further study, 51

The study recommends that future scholars should also study the following areas; 51

REFERENCES. 52

 

 

 

 

ABSTRACT

This study aimed at assessing the effects of procurement methods on project /program performance. The principle question to be addressed by this study was what procurement methods were responsible for the public project performance.  The researcher focused on Uganda National Bureau of standards (UNBS) as a case study. UNBS was selected for this study because it was one of the major public institutions with a significant portfolio of public projects.

The research design used was descriptive-explanatory which allowed a detailed description and analysis of the variables under study; describing and presenting their characteristics and explaining their relationships without manipulation. Linear estimation model was used to predict the outcomes of the different procurement methods on project performance. The results revealed that domestic and international competitive bidding had a positive statistically significant impact on project performance keeping other factors constant.

 

The study recommends that UNBS should ensure that it chooses appropriate procurement methods to help in the management of a given procurement process, should ensure that there is adequate supervision during the procurement process, should consider the capacity of the suppliers before awarding contracts. This will enable the organization to enhance and achieve targets, value for money, saving costs for better performance in specific projects.

Key words: Procurement methods and project performance.

 

 

CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter covers the background of the study, statement of the problem, purpose of the study, objectives of the study, research questions, and scope of the study, significance of the study and definition of key terms.

1.1 Background of the study

The complexity and volume of procurement drastically increased globally in the recent years. Some of the causes that can be attributed to this include; globalization, outsourcing, intense competition for existing markets as well as complicated and numerous partnerships. Over the last fifty years, many of the world’s largest firms have advanced from being simple manufacturers of hard goods or providers of basic services to being sophisticated vendors using advanced business models. This means that organizations have the task of choosing the right procurement method that can enhance better performance of the organization’s projects to ensure their survival in this competitive environment, (Ahmadi, Pishvaee & Torabi, 2018).

Matthew, Patrick and Denise (2013) indicates that choosing the right procurement methods is essential in  enabling an organization to be able to survive in this highly competitive environment and choosing the right procurement is critical to the success of a project (Senzu, & Ndebugri, (2017) further indicates that new regulatory requirements, globalization, increase in the number of signed or awarded contracts and their complexity have resulted in an increasing need to put more emphasis on the importance and benefits of effective procurement methods, after an organization awards a contract, it must monitor to ensure that the service is being delivered as specified. This implies that the service has been provided as to the agreed standards and price and as a result such a practice can reduce the failure of a project.

One of the key most used public procurement methods is International procurement according to EU, (2017) in 2013 EU countries spend around 14% of the GDP of EU in international procurement while the US spend around 10% of its GDP in international procurement and more to that In Malawi, it was estimated in 2005 that public procurement constituted 40 percent of the total expenditure, while in Uganda; it was at 70 percent (Development Assistance Committee, OECD, 2005).

According to Getuno et al. (2015), the process of choosing a procurement method to use in the sourcing process of the organization begins when an agency identifies a need and decides on its procurement requirement and it’s during this process that a procurement method is chosen and therefore it’s imperative that an organization chooses a suitable procurement method to solve the challenge of acquiring substandard goods. Procurement continues through the process of risk assessment, seeking and evaluating solutions, contract award, delivery and payment for the goods, work or service, ongoing management of the contract and consideration of options related to the contract and extends to the ultimate disposal of property at the end of its useful life (Johnson, Leenders & McCue, 2017).

Currently the relevance of global trade cannot be underestimated and therefore choosing an effective procurement method that incorporates a global trade perspective is essential since trade increased from 10 trillion dollars in 2005 to 18.5 trillion in 2017, This therefore indicates that organizations are supposed to incorporate a procurement method that has an element of global trade to enable them realize value for money and be able to achieve their goals with less resources (Haselmayar, 2018).

 

Organizations ought to have better planning team before choosing a specific procurement method as this has an influence on the general success of the project as it has the strength of either causing a success or failure of the entire project and it is also imperative for an organization to invite contractors to provide recommendations about the service delivery demands of the organizations in the process of choosing a procurement method to use (Ondigi & Muturi, 2015). Poor project performance has negative financial implication to country for example solon, (2015) indicated that the UK has wasted over 100 million pound sterling on cancelled or failed IT projects.

Rendon (2016) contends that choosing the right procurement method is a key activity in in the success of any project that an organization wishes to engage in. He observes that one of practices involved would be conducting research to collect and analyze information about how a specific industry or sector process contains types of products and services and the best ways of ensuring that customer needs are delivered and met timely in order to create efficiency in service delivery system. Such information would include contract strategy, type of contract used, pricing arrangements as well as terms and conditions with a view of ensuring service delivery efficiency.

Government projects of any nation are of immense importance to the citizens and residents of that nation as it forms part of the building blocks that support national growth. The successful execution of projects serves as a visible indicator of development in a country (Hanachor, 2013). Despite this, in developing countries such as Nigeria and Uganda majority of projects embarked on by the government are classified as failed projects (Hanachor, 2013).

The rate of project failure in developing countries has been found to be higher than the rate in developed countries (Ogwueleka, 2011, Damoah, 2015). Currently in Nigeria the level of project failure is alarming and these failed projects have financial implications on them ( Akande et al., 2018) and also on the same note the failure of the contractors to deliver the road construction project in Ghana led the country to lose millions of dollars of Tax payers’ money (Damoah, 2015).

In developing countries, the ability of public procurement to choose a better procurement method is increasingly recognized as essential in project performance (Basheka & Bisangabasaija, 2010), and it accounts for a high proportion of total expenditure. For instance, public procurement accounts for 60% in Kenya (Tukamuhabwa, 2012), 58% in Angola, 40% in Malawi and 70% of Uganda’s public spending (Wittig, 1999; Gov. of Uganda, 2006) as cited in Basheka and Bisangabasaija. Moreover, in most developed countries, public procurement takes place within a framework of international obligations, such as World trade organization’s Agreement on Government Procurement Directives made under regional agreements such as the European Union or the North Free Trade Agreement and this ensures that the right procurement method is chosen during the process.

In Uganda Baseline Survey Report on Public Procurement Systems in Uganda (PPDAA, January 2015), indicated significant variances between the actual and indicative time frames in project completion. In addition, Sabiiti notes that the Government at times pays for no work done or very shoddy work and sometimes, purchases are not delivered on time which has affected the ability of the Government to deliver quality services to the general public, all this indicates that public procurement method is chosen by the stake holders (as cited in Rwothungeyo, 2013).Meanwhile, the Public Procurement and Disposal of Public Assets Authority (PPDA) Audits the reports of Uganda National Bureau of Standards, (2005 and 2016) indicate high risks with 27% and 19% in 2009 and 2013 respectively accruing from project management where there were missing procurement management records, delayed payment for received goods and services and delayed deliveries.

PPDA regulations (2014), has re-emphasized the need for procurement planning before choosing a specific procurement method by all public bodies, Although the UNBS strategic plan for 2010-2015 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 choosing a better procurement method that guarantees better performance of projects 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:

Good procurement method was instrumental to an organization in order to be in position to achieve value for money, prevent emergencies in procurement, improve on the performance and competitiveness of an organization, and above all achieve better project performance, (Fiedler (2015). UNBS PDU annual report, (2016) indicates that over 200 awarded procurement contracts in financial year 2014/2015 but the levels of project performance received/delivered on most of these procurements remain unknown, in addition to that PPDA reports that there has been a delay in both execution and completion of most of the projects that is procurement process being very slow and very cumbersome, this has led to failure by the organization to achieve value for money in most of its projects since projects delays makes the UNBS face high costs in executing its projects. The report further indicates that since the government of Uganda borrows the money from international development partners a delay in the execution of a given project costs the government a lot since the government pays interest rates on these loans.

Though other scholars have carried out research on project performance none has been specifically done on the effects of procurement methods on project performance at UNBS, thus prompting the researcher to carry out the study with specific reference to UNBS with help of the primary data.

1.3 Purpose of the study

The purpose of the study was to investigate the effects of procurement methods on the public programs / projects’ performance, with specific reference to UNBS.

1.4 Objectives of the study:

  • To document different procurement methods.
  • Examine effects of procurement methods on project performance.

1.5 Research Questions:

  • What were the different procurement methods at UNBS?
  • What were the effects of procurement methods on project performance?

1.5.1 Hypothesis

Procurement methods affect project performance

1.6 Scope of the study

This section included; subject scope, geographical scope, and time scope

1.7 Subject scope

The scope of the study included; different procurement methods at UNBS, the effects of procurement methods on project performance.

1.6 Scope of the study

This section included; subject scope, geographical scope, and time scope

1.7 Subject scope

The scope of the study included; different procurement methods at UNBS, the effects of procurement methods on project performance.

1.7.1 Geographical scope

The researcher considered, UNBS – Bweyogerere Plot 2 – 12, Bypass Link, Industrial & Business Park, Kyaliwajala road, P.O Box 6,329 Kampala, Uganda.

1.7.2 Time scope:

The study covers a period of ten years i.e. 2010-2019.

1.8 Significance of the study

The study may assist future researchers by adding to the existing body of knowledge, by giving good interventions on ways of improving project performance.

The study may also help the management of UNBS with enough knowledge on how project management effectiveness can be achieved and above all help them in implementing good procurement methods.

1.9 Definition of key terms

1.9.1 Procurement

Procurement, according​to Kenneth Lysons and Brian Farrington (2006), procurement refers to the acquisition of goods, services, or works through purchase, rent, lease, franchise, or any other legal means considering the 3 Rs like from the Right: place, time, price, quantity, and quality by use of shareholder’s money.

1.9.2 Procurement planning

Procurement planning is the process of deciding what to buy, when and from what source.

1.10 Conceptual framework

International competitive bidding

·         Effectiveness of competition

·         Nature of choice

Domestic competitive bidding

·         Accessibility of suppliers

·         Local suppliers

Direct procurement

·         Circumstances of direct procurement

·         Legal frame work

Procurement Methods         (IV)                                                     Project Performance (DV)

 

 

 

 

 

 

 

 

 

Intervening variables

 

 

 

 

Source: developed by the researcher

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter reviews available literature on the effects of procurement methods on the public programs / projects’ performance.

2.1 Theoretical framework:

The General Systems Theory modeled by Ludwig Bertalanfy in 1950 relates the functioning of

Organizations with how living organisms function. The theory states, from a biological point of view, that an organism is an integrated system of interdependent structures and functions made up of cells, and a cell contains molecules, which must work in harmony. Each molecule must know what others are doing, must be capable of receiving messages, and must be sufficiently disciplined to obey. Due to the complexity and instability of the external environment, the survival and effectiveness of an Organization will depend on how well it scans and adapts to its internal environment (Githinji, & Moronge, 2009). Von Bertalanffy was reacting to reductionism and attempted to revive the unity of science. He emphasized that real systems were open to interact with their environments and that they can acquire qualitatively new properties through emergence, resulting in continual evolution. He argued that rather than reducing an entity or organization to the properties of its parts or elements, systems theory focused on the arrangement of and the inter-relations between the parts which connect them into a whole. Such an organization determined a system that is independent of the concrete substance of the elements (for example, the various departments such as finance, accounting, human resources, research, and development). Thus, the same concepts and principles of organization underlie the different disciplines, providing a basis for their unification (Keraro, 2014).

Hanson, & Holt, (2014) observed that, the systems theory provides a leader with a tool for analyzing organizational dynamics without providing a specific theory about how an organization should be managed. He also observed that with the recognition of systems theory, all organizations consist of processing inputs and outputs with internal and external systems and subsystems helpful in providing a functional overview of any organization. The effect of the systems theory in management is that managers look at the organization from a broader perspective. Systems theory has a new perspective for managers to interpret patterns and events in the workplace. They recognize the various parts of the organization and in particular the interrelations of the parts, e.g. the coordination of central administration with its programs, supervisors and workers, among other variables. In traditional management practices, managers typically took one part and focused on it. They then moved all attention to another part. The problem was that an organization could, for example, having a wonderful central administration and wonderful set of teachers, but the departments didn’t synchronize at all (Young, Nagpal, & Adams, 2016).

2.1.2 The Contingency Theory

The contingency theory, developed by Joan Woodward in the 1950s, is a class of behavioral theory which claims that there is no best way to organize an organization, to lead a company or to make decisions. Instead, the optimal course of action is contingent upon the internal and external situations. Several contingency approaches were developed concurrently in the late 1960s. The authors of these theories argued that Marx Weber’s bureaucracy and Fredrick Taylor’s scientific management theories had failed as they neglected environmental influences and that there is not one best way to manage enterprises. These influences shape the individual behavior in a certain situation

 2.1.3 Different procurement methods

Domestic competitive bidding

Domestic competitive bidding also known as national competitive tendering (NCT) is the tendering procedure normally used for public procurement opened to only national suppliers, contractors and consultants. According to Arrowsmith and Quinot (2013) this is a procurement proceeding wherein the procurement entity or the government decides that only the domestic suppliers or contractors may participate in the tenders. The bidding process may then employ National Competitive Bidding procedure. NCT may be the preferred method of public procurement where foreign bidders are unlikely to be interested as a result of low/small contract values, nature and scope of the works or where the works are considerably scattered geographically or spread over time or where the works are labor intensive or where the contract value falls within the threshold for NCT and/or where the goods or works are available locally at prices below the international market. NCT procedures may also be used where the administrative or financial burden of the requirement outweigh the advantages of inviting tenders beyond national boundaries (Gbogr, 2017).

 

According to the World Bank NCT procedures would only be acceptable for use in the Bank’s financed procurement, if these procedures guarantee efficiency, economy, and transparency and in line with other appropriate guidelines of the Bank (in Gbogr, 2017). NCT begins with a limited advertisement to the national press and PPA official gazette and website. The tendering documents are usually in the national official language of the country and their local currency is used in the processes of tendering and payment (Kinyua, 2015).Tenders are expected from suppliers and contractors whose companies are fully owned or have majority ownership by nationals and is registered in the country (Akuffo, 2014). The national open competitive tender practices are often preferred by diverse public entities and are often advocated for by procurement entities across the world. Muraguri(2013) notes that all the public procurement must be undertaken on an open competitive basis except in few allowed circumstances.

In order to enhance change, an increased understanding of how different procurement procedures affect different aspects of project performance in different types of projects is therefore vital. In spite of procurement procedures being important for project success, earlier research on this topic is limited to a few investigations focusing on how only one or a few procurement aspects affect a few project outcomes. Examples are bid evaluation effects on cost and schedule growth (Assaf and Al- Hejji, 2006, Wardani et al., 2006), and partnering tools’ effect on partnering success (Chan et al., 2004, Eriksson, 2008). In order to achieve successful governance of construction projects a holistic and systemic approach to procurement procedures is crucial (Cox and Thompson, 1997, Eriksson, 2008). The purpose of this investigation is therefore to increase the understanding of how a broad range of procurement procedures affect various aspects of project performance.

Several researches have already been carried out on procurement methods and procurement performance. However, these studies are limited in scope because they were conducted in different national culture. According to Cobra, (2010) in the study on a comparative analysis of procurement methods used on competitive tendered office projects in UK, the study mainly compared the empirical information related to the successful tender for procurement methods used in competitive tendering of office projects in the United Kingdom (UK). It used numeric/quantitative indicators such as construction costs, construction speed, construction time and intensity of construction. This study did not look at how the procurement method selected affects the projects performance economically. Because without procurement, output is down, national income is affected thus everything will be affected.

Kakwezi and Nyeko, (2013) asserts that the proliferation of procurement methods used for construction projects has inevitably resulted in comparisons being made between the performances associated with each of them. The challenge for researchers in this field has been largely to do with how to compare procurement systems on a like-for-like basis. The procurement function has not been given the recognition it deserves in developing countries, in most public entities, regardless of the effort by the partners like the World Bank, the International trade organization, the United Nations on trade and development, the world trade organization and others. The need to have coherent methods of performance of the procurement function in the public entities, particularly in the developing countries, has never been as sound as it is now.

 

As part of the ASR, organizations were able to report on the extent to which sustainability considerations have been integrated into their procurement processes.

Sustainable procurement practices integrate requirements, specifications and criteria that are compatible and in favor of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services, and ultimately optimizing costs.

Sustainability considerations can be incorporated into different stages of the procurement process. Consistent with the methodology used in the 2016 report, organizations reported on how sustainability considerations have been integrated into their procurement processes in 2017 in three key areas: embedding sustainability criteria into the requirements definitions of tenders using total cost of ownership in the financial evaluation of tenders and including sustainability aspects in contract terms.

The general purpose of a requirements definition was to identify the precise needs of the requisition and to determine the best solution to meet those needs, in a way that will facilitate the procurement process. In the 2016 report, the term “whole life costing” was used. In 2017, this term was replaced with the term “total cost of ownership” which was considered to be more widely applied throughout the UN system. Total cost of ownership was defined as the sum of all recurring and one–time costs over of a good, service, structure, or system while in one’s possession. It included purchase price, installation cost, operating costs, maintenance and repair/ upgrade costs, and remaining residual or salvage volume at the end of ownership or the product’s useful life.

Zou, Fang, Wang, and Loose more (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. 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.

 

Musanzikwa, M. (2013) 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. Kulu,​(2017),​observed that any outsourcing 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 (Will cocks & lester 1997).

Boroughs and Edgar (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.

Ghauri, (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 the organization process of the organization.

A study by Shoquist,​et al., (1994) found that monitoring quality enabled organization ensures that they are supplied with quality products at the same time reduced the cost of acquisition of purchases. Monitoring quality by the contracting institutions helps to reduce costs in the service delivery process while ensuring active commitments to continuous improvement to attainment of quality (Cho,​ et al., 2008).

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 programs 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, Beukers,​et al., (2006). 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 bodies fail to manage these risks, accountability, and eventual service delivery is greatly endangered.

International competitive bidding

International Competitive Tender International Competitive Tendering can be used whenever open/competitive tendering is used and effective competition cannot be obtained unless foreign

Contractors are invited to tender as well as, when items to be procured are not available locally or cannot be provided on account of technical and other competencies together with financial constraint (Jacob, 2010).

International competitive bidding (ICB) is the most appropriate method of procurement in most cases. This provides an executing agency with a wide choice in selecting the best bid from competing suppliers and contractors. It gives prospective bidders from eligible source countries equal opportunity to bid on goods and works that are being procured (Ferwerda, Deleanu, & Unger, 2017).​

According to Hensher & Stanley (2008) this is one of the most appropriate methods of competitive bidding in public procurement. The process entails the procurement entity to internationally advertise their requirement of goods and services, in an internationally acceptable language. The contract is then awarded to the bidder with the best bids and contract terms. The procurement entity in such kind of arrangements enjoys a certain amount of freedom in selecting winning bids for its projects. ICB procedures are normally employed for contracts with estimated values that exceed thresholds set at the time of procurement plan preparation (Tetteh, 2014).

Procurement department should observe procedural transactions for the good of the population given the fact that expenditure incurred is the taxpayer’s money. This implies that public sector purchasers are accountable to the public whose money is spent, including those who tender and potential suppliers who may be disappointed. They must produce procedures and practices which will stand up either to scrutiny during government audits or to the challenge through the courts of any purchasing decision that has been made. The chief purpose of public accountability is to prevent abuses of taxpayer’s money. Planning scope refers to the period in which the budget will cover. The planning scope will be crucial in how the budget is drawn, that is if they are budgeting for long term project or short term. It will assist in planning for activities and ascertain how next year might change and steps to be taken to respond to the changes. Purchasing budgeting procedures involves various steps before the final budget is arrived at. The process usually starts at various departments depending on the department needs for the coming financial year. The budgeting process is then developed to a minister’s budget that is developed by the management. This process must be followed to make the employees own the purchasing budget allocation (CIPS, 2012).

Aputo, (2017) indicated that needs assessment encourages innovation through procurement. They further found that the need assessment provides transparency and clarity during the procurement process and guarantee the product quality by the third-party certification. They further pointed out in their report that most countries which included Spain, UK, Denmark, Portugal and Sweden that participated in procurement assessment have a Green/ Sustainable Public Procurement (GPP/SPP) strategy or action plan Song, Landrum and Chernew (2013) noted that ICB has several advantages in that it promotes competition between suppliers, resulting in best “value for money” for purchasers and users;

 

Offers a kind of transparency and help avoid corruption and favoritism; and gives all suppliers the opportunity to win the business that is advertised. Takano, Ishii and Muraki (2014) added that International Competitive Bidding also enables effective country and their local currency is used in the processes of tendering and payment (Kinyua, 2015).Tenders are expected from suppliers and contractors whose companies are fully owned or has majority ownership by nationals and is registered in the country (Akuffo, 2014). The national open competitive tender practices are often preferred by diverse public entities and are often advocated for by procurement entities across the world. Muraguri(2013) notes that all the public procurement must be undertaken on an open competitive basis except in few allowed circumstances.

Philly, Were and Nkirina (2017) defines purchasing performance evaluation as the quantitative or qualitative assessment over a period of time towards the achievement of corporate or operational goals and objectives relating to purchasing economies, efficiency and effectiveness. Quantitative objectives are measurable using such measures as number of orders placed, reduction in lead times, price savings and reduced administrative costs and will tend to be used when purchasing is regarded mainly as a clerical and transactional activity (Ahmadi, Pishvaee & Torabi, 2018).

An obvious performance measure of the success of any purchasing department is the amount of money saved by the company. Some common areas of measurement of operational procurement performance according to Baily et al. (2008) are; qualities which can be viewed into performance quality where supplies staffs are concerned with quality of design or specifications. They are interested in specifying the right material for the job, and communications to the supplier in clear and unambiguous manner. Conformance quality is concerned with the supplier providing materials in accordance with the specifications which are usually inspected to evaluate the procurement performance. Further, on quality one would seek to know the percentage of rejects in goods received, percentage of goods rejected in production and percentage of raw materials rejected in production (Amayi & Ngugi, 2013).

 

To evaluate procurement performance using quantity one would seek to know the quantity percentage of stock that has not moved over a specified period, number of stock outs and the number of small value orders, number of emergency orders, and comparison of stock with the target stock (Amemba et al, 2013).

Direct Procurement

Acquiring goods, services, and construction works from only one source is referred to as: sole-source procurement, single-source procurement, sole source selection, direct procurement, among others. Silwimba (2017) noted that direct or single sourcing is used where circumstances do not allow for competitive bidding. It is used for small quantities in cases where time may not allow for competitive bidding. Kiruja (2014) states that direct procurement method is only applicable on ground of urgency or emergency when life and property are threatened and other methods are not practical. According to Section (74) of the Kenyan Constitution, a procuring entity may use direct procurement if the following are satisfied; there is only one person who can supply goods, works or services or there is no reasonable alternative or substitute or there is urgency (life and property threatened) and other available procurement methods are impractical. This is clearly a non-competitive procurement method, and it should be used only under exceptional circumstances, namely: for emergency situations; when only one firm or

individual is qualified to fulfill the requirement; for the continuation of previous work, or additional work, that cannot be acquired from another firm or individual due to patent, compatibility issues, or exclusive rights; the use of this method represents a clear advantage over the use of a competitive method; the total cost is within the threshold set for this method of procurement; for the procurement of related items that are available only from one source for other situations contemplated in the procurement legal and regulatory framework (Mbae, 2014).

There are diverse reasons under which the use of the direct procurement tendering practices is allowed in Kenya. The direct procurement tendering method is applicable in Kenya when a public entity procures services or goods from a service provider without competition (Public Procurement Oversight Authority, 2016). According to Public Procurement Oversight Authority (2016) direct procurement tendering processes is applicable when the purchase is for urgently needed remedial works, provided this is restricted to the minimum requirement to meet the urgent need until procurement by other methods can be fulfilled. The other acceptable scenario for direct procurement is when the work can only be provided by one source for physical, technical or policy reasons e.g. requiring the use of proprietary techniques that are obtainable only from one source

The public procurement Act requires all stakeholders to assess the processes involved in the procurement and to know the efficiency and reliability in the procurement processes. Importantly is to recognize the flaws and challenges inherent in the system of procurement in order to correct them. These can be achieved through a formal procurement audit, among others. An official procurement inventory is carried out to inform management of whether the core procurement objectives are being realized. It brings to bare flaws and makes sure that compliance to the Public Procurement Act 663 is achieved. An official audit equally assists in execution of monitoring activities and improves in the execution of the rules and regulations and successive trial of those culpable of not complying with the Act (Public Procurement Act, 2003). Adjei (2006) indicates that professionalism in the processes of procurement is defined as people with procurement ideas who have the required educational background, the experience and are able to make informed decisions as regards the procurement of works. He contends that the part played by procurement professionals in the procurement system of the Ghanaian economy is important for the economy to develop. Against this background, the need to promote professionalism as an important element in the procurement board cannot be over emphasized .There is also the need for professional development and assistance for individuals and MDAs involved in public procurement. It behooves on The Board is to guarantee compliance to ethical standards by trained personnel in procurement processes. Selecting a proficient and dependable contractor is one of the greatest problems consumers who wish to achieve project success face (Fong and Choi, 2000; Kumaraswamy and Anvuur, 2008).

Bid assessments can encompass many diverse factors, for example, cost, technical capability, management aptitude, previous experience, the object of reference, environmental and quality management systems, financial solidity and concerted skills (Lam et al., 2001, Eriksson and Laan, 2007; Malmberg, 2007). Conventionally, in the public sector procurement, consumers elevate weight on price and reduce weight on soft parameters, particularly amongst public clients (Fong and Choi, 2000; Eriksson, 2008a).

Currently, there has been elevated attention for a shift from low price selections to multiple benchmarks selection also putting into consideration the soft parameters (Kumaraswamy and Anvuur, 2008).Whereas the prices of bid is based on to competition, the other areas may be perceived as aspects responsible for the potential for collaboration in the project (Eriksson, 2008a). For instance, appropriate proficiencies and abilities will give a basis for better amalgamation between client and contractor. It is significant to assess how well the procurement practice has been and to find out any deficits or difficulties in order to put forward actions to avert comparable problems later. 13 In Ghana, public purchasing process is mandatory by Act 663, (2003) to do a formal procurement assessment or appraisal to determine its performance. The performance of the Procurement process within the public system may be a direct or an indirect yield of the processes depending on the objectives, goals, expectation, and customer satisfaction. (Sollish and Semanik 2007).

The foremost thing for consideration during the procurement process is identifying the specific needs, how to pay for these needs and a review of the whole output. (Emmert and Crocker 2008; Baily et al 2005; Bur et al.2006). There is a direct correlation between public sector procurement procedures and the functioning of set targets to be achieved. Therefore, strict and difficult processes which are not easy to amend in order to illicit customer satisfaction as a product of responding to their requirements will not be appreciated by customers, no matter what the function achieves.

The tenets of Ghana’s Public Procurement Act 663, (2003) has laid down procedures that states that, specified amounts set planned for specific use must follow previously determined sub-processes in purchasing a product. These procedures usually provide guidance on the period, value, supply time and availability rate of the product which are crucial to the vital performance of the functions of purchasing. Public procurement according to Him and his colleagues is the process of acquiring things, works, and services by an entity for procurement through the use of state money. These state funds are collected through taxes paid by citizens and demand that it is used in a more open and responsible way. (Hiu et al, 2011) In order to ensure transparency and accountability, the procurement laws of most countries have been restructured. Unfortunately, the problems with these laws still remain due to the fact that officers in charge of procurement activities have failed to adhere effectively to these regulations. (Lisa 2010).

A greater amount of the government’s expenditure is used on public sector procurements. Mahmood (2010) found that, 18.4% of global GDP is used on procurements of the public sector. In emergent economies, between nine to thirteen percent of the GDP is used for public sector procurements (Mahmood, 2010).

It is an undeniable fact that public sector procurement is an indispensable process and deserves real attention given that, the bodies responsible for procurement in state institutions are guided by protocols, strategies, and techniques (Odhiambo and Kamau 2003). This notwithstanding, De Lange (2011) found that, enormous funds are lost every year because public procurement policies are poorly managed. In view of this, public sector workers need to be properly managed to make sure that compliance to important regulations, policies and procedures are achieved.( De Lange, 2011).

Metcalfe (2008) defines a stakeholder as any individual or group who has a vested interest in the outcome of a body of work. A stakeholder has also been defined as any person, or group, who has an interest in the project or could be potentially affected by its delivery or outputs (Stakeholder engagement toolkit, 2007). Maintaining a good relationship does not mean that concerns of non-compliance or under-performance cannot be discussed and acted upon. It means that there is a greater likelihood that such issues can be discussed and resolved in a cooperative manner (OGC: Contract management guidelines, 2002). The approach to stakeholder involvement in service delivery vary depending on the contract, but it is important that the specific responsibilities are not neglected, even though there may not be a nominated individual assigned to the role of relationship manager.

Stakeholder’s demand for transparency and accountability is fundamental for service delivery in bodies in Uganda, (Joshi, 2010). Joshi further argues that effective service delivery relies on commitment to engage and communicate openly and honestly with stakeholders. Stakeholders involve; politicians (e.g. not adopting appropriate policies); or of public officials/ end users (not delivering according to rules or entitlements, not monitoring providers for appropriate service levels); or of providers (not maintaining service levels in terms of access and quality).Stakeholders are used as a means to improve communications, obtain wider buy-in for projects, gather useful data and ideas which enhance public sector or corporate reputation, and provide for more sustainable decision-making for service delivery across agencies,( Tonkin, C. M. (2016).​

The need to identify the necessary technical skills, knowledge, and experience with the appropriate level of authority required of the members of the stakeholder team, the importance of the ability of stakeholder team members to work together effectively and the significance of the role of the contract manager should be recognized for each service delivery, (Elsey 2007).

A successful relationship must involve the delivery of services that meet requirements. The approach to managing stakeholder relationships will vary depending on the type of contract. Stakeholders vary in their impact, significance, interest, longevity, and relevance in relation to the service delivery objectives (Edler,​J., & Uyarra, E. (2013).​ For some non-strategic contracts, a more tactical approach may be suitable. For long-term strategic contracts, the emphasis on building a relationship will be much greater. In fact, the requirement for the original procurement may have been for a relationship between stakeholders and service delivery providers to be realized, rather than for a specified set of services/products to be provided. Stakeholders are diverse for each contract and may change depending on circumstances (Metcalfe’s, 2008).

In long term contracts, where interdependency between customer and provider is inevitable, it is in the interests of the organization to make the relationship work. The three key factors for success are trust, communication, and recognition of mutual aim. Establishing clear lines of

Responsibility and accountability for all decision-making is another important aspect of successful contracting and service delivery. Ensuring the necessary authorizations and delegations are in place at the beginning of the contracting cycle is an important prerequisite to ensuring that all contracting decisions and payments are valid and legally appropriate. These instruments should be periodically reviewed and kept up-to-date. It is in the contracting authority’s own interest to make the relationship work as the costs of early termination and the consequences of poor performance and unplanned changes of economic operator are highly damaging (Ambe, I. M., & Badenhorst-Weiss, J. A. (2012).​

2.1.4 Effects of procurement methods on project performance

 

In September 1983, Harvard Business Review published a ground-breaking article by Peter Kraljic on purchasing strategy that is widely cited today as the beginning of the transformation of the function from “purchasing”, to something that is viewed as highly tactical to procurement or supply management, something that is viewed as very strategic to the business. The renewed emphasis of the new function of procurement had implications for performance of organizations including construction projects. This was on the caveat that the function was performed diligently well. In 1990s, procurement started to become more integrated into the overall corporate strategy and a broad-based transformation of the business function was ignited, fueled strongly by the development of supply management software solutions which help automate the source to settle process (Smith, 2010).

Globally more governments are placing greater emphasis on the development of infrastructure projects (Orr and Kennedy, 2008:100). This is augmented by Howes and Robinson (2005:1), who state that infrastructure is central to the social-economic development of all countries and the well-being and prosperity of society. With increased globalization, the level and quality of infrastructure has become critical for all national economies than ever before (Arrows, 2010:67). Demand for global infrastructure spending has been projected to total somewhere between $40 trillion and $50 trillion over the next two decades (Visse, 2012:8). The European Union estimates that up to $2.7 trillion in new infrastructure spending will be required through 2020 to meet the current goals (Deutsche Bank AG, 2014:4).Visse (2012:6) argued that while many developed countries face the need for substantial infrastructure improvements, the United States infrastructure is crumbling.

 

Hoon, Kwak and Chih (2009:51), contends that Public Private Partnerships (PPPs) have emerged as one of the major approaches for delivering infrastructure projects in recent years. Arrows, (2010:54) on the other hand argues that the experience of the public sector with PPPs has not always been positive, many PPP projects are either held up or terminated due to: wide gaps between public and private sector expectations or lack of clear government objectives and commitment This is supported by Memon, Rahman and Azis (2012:45) who established that countries such as Malaysia, where PPPs are commonly used in the road sector, they also still face poor performance, resulting in failure to achieve effective time and cost performance.

 

In a developing country like Uganda, having an effective procurement planning system will continue to be a challenge to many public entities (Oluka, 2013:16). Planning must become a priority for public entities. However, the Public Procurement and Disposal Authority (PPDA) must play a central role in providing training, technical guidance, and ensuring compliance to all set rules (Muhwezi, 2013:45). Conceptually, this study will reveal the critical components of contract selection ranging from the process, through the expected practices, the actors to be involved, to its importance (Muhwezi, ibid). Planning is one area that needs careful attention from all stakeholders in public entities because it has a huge budget and if this budget can be managed in an accountable manner, then there will be improved service delivery and this is one way of accounting to the taxpayers.

 

In Sabiti, Basheka, and Muhumuza (2011:23)’s study conducted in Uganda on developing public procurement performance measurement systems in developing countries: the Uganda experience, the author’s note how proper planning may influence procurement performance. The key to accountability is the capacity to select the best contractors within the public sector. The internal contractor selection process of government, procurement and personnel have long received sustained attention as the centerpiece of reforms to promote accountability (World Bank, 2000:44). Accountability of public officials is critical in deterring corrupt practices and it creates 19 an enabling environment for vibrant private sector activity (Kabaj, 2003). The researcher notes that the problems of accountability arise when governments ignore or transgress social ethics and constitutional and legal provisions in conducting public affairs, administrative systems are fragmented, tasks to be performed are so many.

 

In Oluka’s study on the challenges of procurement, she posits that restricted tendering is a procurement method that limits the request for tenders to a select number of contractors (Oluka, 2013:23). According to the PPDA Regulation 2014, the restricted procurement method is a two-stage process. The first stage the employer advertises his project and invites contractors to express interest to be placed on a selected list of contractors who will be invited to bid for the project (Oluka, 2013:42). In creating a nexus between the earlier study and the proposed study, it is imperative that when contractors applying should be given a list of information, and information got about them in order to ‘pre-qualify. Stage two the shortlisted contractors who meet the selection criteria should be invited to submit a more detailed tender submission

 

Schmitz and Platts (2004:77) in their study conducted in Ghana did investigate the procurement reforms in Ghana. They assert that the main aim of contracting is to ensure that goods or services are delivered on time, at the agreed cost and at the specified requirements. It means developing effective working relationships with your suppliers, ensuring effective service delivery, maximizing value for money and providing consistent quality for stakeholders and end users (Schmitz and Platts, 2004:77). The primary goal for contractor monitoring within any company is to ensure that commitments and obligations to customers and suppliers are clearly visible to the relevant people in the organization and that they are executed upon (Schmitz and Platts, 2004:76). Contracts are used to control virtually every part of the trading relationship between buyers, sellers, and intermediaries, and have an impact on various functions within the enterprise. For example, the sell-side involves sales, marketing, finance, legal, sales operations and customer service. The earlier study pretested the results based on qualitative approaches, in 23 bridging the gap, this study will pretest the results using both quantitative and qualitative methodological approaches.

 

Agere (2009:69) in his study on the effectiveness of contract management in Austria notes that contract monitoring requires the systematic management of contract creation, execution, compliance and analysis to maximize performance and minimize risk (Agere, 2009:71). With the increase in the complexity of doing business in public entities coupled with the increase in transaction volumes and value in an ever-tightening regulatory framework has resulted in businesses taking note of the importance of proper monitoring of contractors (Bagaka & Kobia, 2010:49). The missing link on the earlier study is on the sampling techniques used. Non probability sampling techniques specifically convenient sampling was adopted to select the sample, in creating a nexus between the two studies, the proposed study will rely on both probability and non-probability sampling techniques to select the sample.

 

According to Hinton (2003:61) in his study on the “Best practices in government: Components of an effective contract monitoring system”, contracting involves collecting and analyzing information to provide assurance on the performance of the contractor on the agreed timeframes and towards providing the contract deliverables (Arrows, 2010:12). Key Performance Indicators (KPIs) should be clearly set within the contract and then measured, reported and monitored on a regular basis. Arrows (ibid), further observes that while significant contract monitoring occurs when the vendor is actually performing the service (contract period), preparation during the pre-contract period is essential to effective contract monitoring. In the proposed study, contract monitoring involves those activities performed by government officials after a contract has been awarded to determine how well the government and the contractor performed to meet the.

 

Physical distribution is a set of activities concerned with the efficient and safe movement of goods from the end of the production line to the consumers. Meeting customer needs, is the component of customer service, companies must recognize what level of customer service should be provided and at the same time, intended. A buyer always needs customer service that meets his/ her satisfaction. There are instances when the buyers demand for something that is a little too hard for the company to meet, or the company is not willing to give the service due to its high-price shipping. So, in the beginning of the dealing, the company must first know whether it can meet up that standard from a customer or not and, by the time that the company determines that it will not hit a costly delivery, then it could already proceed. Most organization ensure that they meet the demands of the market at all costs in order to ensure that there is efficiency and competitiveness of the business operation in an organization both form the setting of external environment and of the out domestic market, this will also ensure that there is limited communication barriers among companies, There is minimal collaboration among members in the demand chain downstream because of the barriers of logistical collaborations that have not been successfully tackled; those related to communication technologies and human beings, (Sandberg. 2007). From the above discussion therefore physical distribution efficiency leads to the achievement of customer satisfaction, (Sandberg. 2007)

Reduction of transportation costs, another important component of physical distribution that companies, whether big or small is transportation. This part of the process may determine the probable cost that the company needs to provide to ship the goods. More or less, the shipping is not included in the fees that most of the companies present to the customers, or sometimes, shipment is already included in the prices presented. Depending on the kind of products a company ship, it should choose among the many choices.

Air freight may be fast and it provides safety especially to products which are fragile, but it is costly. Trucks deliver goods fast, but only by land. Water carriers may be economical but they are slow. Other choices of transportation of Vertical collaboration are an effort by two or more organizations to achieve results that they cannot achieve by working in isolation, (Archer, 2007). Sandberg (2007) introduces interdependence, between by creating efficiency of transport costs in order to eliminate unnecessary expenses in the transportation of goods (Oliver et al 2002).​ From the above discussion therefore physical distribution efficiency leads to the reduction of transport costs, and the general business expenses, Chwen, et al. (2006)

Proper storage of products, warehousing or storage of goods should also be paid attention. There are products that are easily broken or run out over time; there are also products that demand a level of temperature in order for it to last long and do not end up useful. There are products that don’t need any of these kinds of treatment because they can go long-term. However, companies must consider that warehousing must always keep their products safe and still efficient for use until they meet their buyers. They should still consider whether they go for public warehousing, which makes them save more rather than going for a private warehouse and be able to meet short term and long run needs of customers. (Zeithaml et el, 2003), Efficiency in physical distribution has in the recent times been important in the proper storage of goods for future some times for the elimination of the bullwhip effect and in other time to prevent deflation in the market, (Wee, 2003). Despite the above benefit of storage in some organizations has brought about increment in costs of the organization’s expenditure due to the numerous storage expenses in warehouses, (Farrington et al, 2006). From the above discussion physical distribution helps to eliminate transportation costs, and also improve on the general competitiveness of the performance of the organizations, (Lysons, 2006).

 

 

Efficiency in Order processing, this is a way in which the business owner often does credit check, sale recording, making the appropriate accounting entries order, and keeping track of the item, shipping, and regulation of inventory records. With the innovation available in the industry today, it will be much easier for the companies to do the order processing. They can use Barcode System, Electronic Data Interchange (EDI), and other technological innovations to help them in order processing. (Parasuraman et al 2002), Integrating the demand chain through vertical collaboration to reduce costs and to improve service levels is facilitated by the adoption of developments in information communication technology (ICT), (Mason, et al. 2007). The involved parties share information, synchronize decision making and align incentives (Sridharan et al, 2005) with the help of communication technologies such as Electronic Data Interchange

(EDI), Radio Frequency Identification (RFID), Electronic Point of Sale (EPOS), Enterprise Resource Planning (ERP) to facilitate a smooth flow of information exchange necessary for improved collaborations in the demand chain , (McLaren, et al 2002). However order processing efficiency may require an organization to invest heavily in the technological development of its operations which may sound a little expensive for the new stating business this perhaps may be solved by an organization concentrating on tit score needs in a given period of time, to achieve efficiency in its operation, (Zhenx. et‟ al, 2001).

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This section presents the research methods that were used to carry out the study. It covered the research design, Area of study, target population, sample design, sample size, research instrument, and measurement of variables, Data Collection Procedure, data analysis, and anticipated problems of the study.

3.1 Research Design

The study adopted a descriptive research design because of the nature of the variables that was at hand; to produce data required for quantitative to allow simultaneous description of views, perceptions and opinions at any single point in time (White, 2000). The study also used quantitative methodology for data analysis. Quantitative method was used in examining the effects of procurement methods on the public programs / projects’ performance at Uganda National Bureau of Standards.​ Quantitative research consists of those studies in which the data concerned is analyzed in terms of numbers. Quantitative research is based more directly on its original plans and its results are more readily analyzed and interpreted (Christina Hughes, 2006).

3.2 Area of the Study

The researcher considered, UNBS – Bweyogerere Plot 2 – 12, Bypass Link, Industrial & Business Park, Kyaliwajala road, P.O Box 6329 Kampala, Uganda.

 3.3 Target population

Sekaran (2003) defines a population as the entire group of people, events, or things that a researcher wishes to investigate. The entity comprises 239 employees, 1executive director, 12 management staff, 40 division heads, 5 regional heads, and 181 staff members at UNBS whose duties influence procurement method.

3.4 Sample Size, Techniques and Selection

Mugenda and Mugenda (2003), argue that it was impossible to study the whole targeted population and therefore the researcher takes a sample of the population. A sample is a subset of the population that comprises members selected from the population. Using Krejcie and Morgan’s (1970) table for sample size determination approach, a sample size of 148 employees was selected from the total population of 239 employees.

 

Table 1: Population, Sample size and Sampling technique

CategoryPopulation

size

Sample

size

Reasons for choosing populationSampling

Technique

Accounting Officer11Authorizes paymentsPurposive
Manager1212Supervises procurement departmentPurposive
Division Heads4038Supervises   manager    and    all    the

procurement departments

Purposive
Regional Heads55Supervises the division HeadsPurposive
Staff Members18180They are in user department and tested

them to know whether they have knowledge about the procurement

methods

Simple

Random

Total239148  

Source:​ UNBS Employee List, (2013)

3.5 Research Instrument

Questionnaires were used to obtain the necessary primary data to answer the research questions and achieve the research objectives. The questionnaire was designed in a manner that motivates respondents with simple structured questions with the option of providing any additional information to the structured questionnaire as an option to obtain relevant data from them. Secondary data obtained through reading and reviewing existing records of related effects of procurement methods on the public programs / projects performance, published articles, journals, and PPDA publications. Validity and reliability tests were carried out to ensure accuracy and usability of the instrument.

 3.6 Measurement of Variables

The independent variable of procurement methods was measured using the following key dimensions;

International competitive bidding

  • Effectiveness of competition
  • Nature of choice

Domestic competitive bidding

  • Accessibility of suppliers
  • Local suppliers

Direct procurement

  • Circumstances of direct procurement
  • Legal framework

While the dependent variable was measured using the following dimensions, Project performance Quality, Lead times, Financial Expenses, Resources and Return on investment

 

Different                procurement

methods

Measurements             of performanceproject
Domestic CompetitiveOn time purchase 
International CompetitiveResources 
Direct ProcurementQuality 
 Return on investment 

 

MODEL ESTIMATION

Linear regression is being used to estimate the model because of the nature of the primary data collected, procurement methods were the independent variable represented by the letter D, and project performance was the dependent variable, Y

Y =βo​+β​  1​D +e

sY = βo​  + β1D1+β2D2+ β3D3+ e

                

Where, βo represents a constant,            

e = the error term representing other factors that affect project performance

βs​1-3 = coefficient

Y = the dependent variable (Project Performance)

D = independent variable (Procurement Methods)

D1= Domestic competitive bidding

D2 =International competitive bidding

D3= Direct procurement

3.7 Validity and Reliability

The data collection tools were pre-tested on a smaller number of respondents from each category of the population to ensure that the questions are accurate, clear and in line with each objective of the study.

3.7.1 Validity

This refers to the extent to which results can be accurately interpreted and generalized to other populations (Oso and Onen, 2008). These writers further define validity as the extent to which instruments measure what they are intended to measure.

Validity was tested using content validity index which involves judges scoring the relevancy of the questions in the instruments in relation to the study variables.

The formula for CVI is

CVI   =

Where; CVI = content validity

n= number of items indicated relevant.

N = total no. of items in the questionnaire

The researcher gave the instruments to the two experts who made assessment of whether what the researcher is trying to bring out actually does come out. The instrument was then tried out on selected individuals of the same characteristics as those that were in the study to assist in identifying deficiencies in the instruments such as insufficient space to write responses, wrong numbering, vague questions, (Muganda and Mugenda 1999).

The researcher analyzed the data collected but where need arose, the instrument was re-adjusted to improve reliability and validity.

After calculations and using SPSS the Content validity index was 0.82 (82%), and this was very good. According to Waner (2005), as cited in Barifaijo, Basheka, and Oonyu (2010), if the CVI is greater than 0.7, then the instrument is said to have a high content validity. The researcher analyzed the data collected and where need arose, the instruments were re-adjusted and re-designed to improve reliability and validity. To improve face validity a pilot study was carried out at UNBS.

3.7.2 Reliability

Cronbach’s coefficient alpha (a) as recommended by Amin, (2005, P.302) was used to test the reliability of the research instrument. The instrument is deemed reliable if reliability test score is 0.7 and above.

When the researcher got below 0.7, the questionnaire was redesigned so as to make the alpha reliability coefficient 0.7 and above.

Formula for reliability is =      ()

Where,

( ) alpha = reliability coefficient.

K=Number of items included in the questionnaire

= sum of variance of individual items

= variance of all items in the instrument.

The coefficient ranges between a=0.00 for no reliability, a =1.00 for perfect reliability. The closer alpha gets to 1.0 the better. If the study findings result to Cronbanch’s Alpha of 0.7 and above, this signified that research instrument is good enough for the study. According to Amin (2005), all the measurements in the instrument that show adequate levels of internal consistency of Cronbanch’s alpha of 0.77 and above are accepted as reliable.

Table 3.3: Shows Reliability of research instruments

 

VariablesAlphaNumber of Items
International competitive bidding

 

.87514
Domestic competitive bidding

 

.812
Direct procurement

 

         .81313
Average.82913

Source: primary SPSS data​

Overall reliability= 2.488/3 =0.829 (82.9%)​

The table 3.3 shows reliability of instruments on different variables, with an average Alpha of 0.829(82.9%), and this was good enough for the study according to Mugenda & Mugenda (1999) and Amin, (2003).

3.8 Data Collection Procedure

The researcher obtained an introductory letter from Makerere University to enable easy access to information by the researcher from UNBS; the procedure of data collection was based on the research objectives and questions. A review of related literature was also done. A questionnaire was pre-tested and review of the questions was done where necessary to ensure reliability and suitability.

3.9 Data Sources

Source of data was from both primary and secondary sources.

3.9.1 Primary Data

Primary data was obtained from well-designed questionnaires structured to obtain relevant data and to gain opinions and practices on the effects of procurement methods on the public programs / projects performance, with specific reference to UNBS.

3.9.2 Secondary Data

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). Secondary data was obtained from Procurement and Disposal Unit (PDU) reports, published articles, journals and PPDA publications relating to the effects of procurement methods on the public programs / projects performance.

3.10 Data Processing

In order to ascertain the accuracy, consistency, uniformity, proper arrangement, and completion of the data, the researcher used the computer for data entry, editing, and data coding. The computer was used because it increases the speed of computation and data processing and handles huge volumes of data, which is not possible manually. It facilitated copying, editing, saving and retrieving the data easier and validation, checking and correction of data.

Analysis

Under quantitative analysis, process included editing, classification, coding, and presentation. Data was summarized in regression, correlation, and chi-square tests. Data was analyzed with the use of statistical package for social scientists (SPSS). Quantitative data was collected through closed ended questionnaires and it was centered into a computer, tabulated, and analyzed.

Spearman’s correlation coefficient is recommended by Amin (2005, P.378) was used during data analysis in order to test the strength, degree and direction of the effects of procurement methods on the public programs / projects performance. 

The formula was used for this study because it is compatible with SPSS program in addition to being appreciated in analyzing data under which the data was arranged.

In the analysis further the researcher used several methods like , correlation, regression analysis and chi-square test to measure in order to enable the full understanding the researcher and coming out with the justifiable conclusion.

3.11 Limitations

The research was hampered by the following challenges.

Non responses

The researcher experienced a problem of non-response from respondents who were given the Questionnaires to fill.

However, the researcher assured the respondents that any information given was treated with maximum confidentiality.

Cost

The researcher experienced a problem of limited finances with respect to this study. Costs regarding this limitation included transport, printing and photocopying of relevant materials. However, the researcher borrowed some money from relatives, friends and use it sparingly so as to overcome the cost constraint.

Time

The researcher experienced time constraint in data collection, analyzing of data and in final presentation of the report. However, the researcher solved this problem by ensuring that the time element was put into consideration and that all appointments agreed upon with respondents to be fully met

 

 

CHAPTER FOUR

PRESENTATION OF FINDINGS

Y = 24.524 + 0.313*D1 + 0.142*D2+ 0.001*D3

Interpretation

 

When domestic competitive bidding, international competitive bidding, and direct procurement of the respondents are zero, then project performance is 24.524.

A unit increase in domestic competitive bidding would averagely lead to 0.313 increases in project performance keeping other factors constant. This was statistically significant since the p-value (0.000) <0.05, thus the null hypothesis was accepted implying that project performance does depend on domestic competitive bidding.

.

A unit increase in international competitive bidding would averagely lead to 0.142 increases in project performance keeping other factors constant. This was statistically significant since the p-value (0.000) <0.05, thus the null hypothesis was accepted implying that project performance does depend on international competitive bidding.

.

A unit increase in direct procurement would averagely lead to 0.001 increases in project performance keeping other factors constant. This was  statistically significant since the p-value (0.09) >0.05, thus the alternative hypothesis was accepted implying that project performance does not necessarily depend on direct procurement method.

Correlation Analysis between procurement methods and project performance

Correlations 
 Procurement methodProject performance
Procurement methodPearson Correlation1.316​*
Sig. (2-tailed) .041
N140140
Project performancePearson Correlation.316​*1
Sig. (2-tailed).041 
N140140
*. Correlation is significant at the 0.05 level (2-tailed). 

Source: Primary Data

The results in the study indicated that the correlation coefficient =0.316*.​ .Thus showing that there was a weak positive correlation coefficient between procurement methods and project performance. The results further indicated that the P-value (0.041) <0.05 indicating that the relationship between procurement method and project performance was significant and thus procurement method affects project performance.

 

Regression Analysis

 

   Model Summary 
Modelr r SquaredAdjusted r SquaredStd. Error of the Estimate
1 .316​a.100.0781.965
  1. Predictors: (Constant), Project performance

According to the table above, correlation(r) was 0.316 meaning that there was a positive relationship between the procurement methods and project performance. The correlation coefficient (r2) value was 0.100 and adjusted r2 was 0.078, implying that 10% of the variations in project performance can be explained by procurement methods keeping other factors constant.

This further indicated that though procurement methods were essential, it’s not the only factor that determines the project Performance at UNBS.

 

4.1.1 Correlation analysis of domestic competitive bidding on quality as measure of project performance

Table showing the correlation analysis between domestic competitive bidding and quality

 Domestic CompetitiveQuality
Domestic

competitive

Pearson

Correlation

1.535​**
Sig. (2-tailed) .000
N4242
QualityPearson

Correlation

.535​**1
Sig. (2-tailed).000 
N4242
**. Correlation is significant at the 0.01 level (2-tailed). 

Source: Primary Data

The results from the table above indicated that the Pearson correlation coefficient = 0.535** Indicating that there was a slightly strong and significant correlation between Domestic competitive bidding and quality purchases at UNBS. This also further supported the P-value (0.00)> 0.05 indicating that the relationship between procurement method and quality purchase as a measure of project performance at UNBS is significant.

4.1.2 Regression analysis of domestic competitive bidding on quality

 

Model Summary
ModelRr squaredAdjusted r squaredStd. Error of the Estimate
1.535a.286.268.745
a. Predictors: (Constant), QUALITY

Source: primary Data.

 According to the table above, correlation(r) was 0.535 meaning that there was a positive relationship between the domestic competitive bidding and quality as a measure of project performance. The correlation coefficient (r2) value was 0.286 and adjusted r2 was 0.268, implying that 28.6% of the variations in quality as a measure of project performance was explained by Domestic competitive bidding.

The chi-square test for the influence of domestic competitive bidding on quality of the purchase 

 

Test Statistics 
 Domestic CompetitiveQuality 
Chi-Square5.571​a 13.714​b
df2 1
Asymp. Sig..062 .000
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 14.0. 
b. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.0. 

Source: Primary Data

 

According to the table above the P-value (0.000) <0.05, then the relationship between domestic bidding and quality purchases was significant thus the null hypothesis was rejected, implying that the quality of purchase for UNBS depends on Domestic competitive bidding.  

International competitive bidding on Quality

Correlations  
 International competitive biddingQuality 
International

 

competitive bidding

Pearson Correlation1 .402​*
Sig. (2-tailed)  .011
N39 39
QualityPearson Correlation.402​* 1
Sig. (2-tailed).011  
N140 140
*. Correlation is significant at the 0.05 level (2-tailed).  

 

According to the table above the Pearson correlation coefficient (0.402*) indicated that there was a weak positive and significant correlation between international competitive bidding with quality purchase of goods and services at UNBS.

 

Regression analysis between International competitive bidding on quality

 

Model Summary 
ModelRr squaredAdjusted r squaredStd. Error of the Estimate
1.402​a.162.1391.457
a. Predictors: (Constant), QUALITY 

 

According to the table above, correlation(r) was 0.402 meaning that there was a positive relationship between the international competitive bidding and quality as a measure of project performance. The correlation coefficient (r2) value was 0.162 and adjusted r2 was 0.139. Implying 16.2% of the variations in quality as a measure of project performance was explained by international competitive bidding.   

Chi-square test for the relationship between international competitive bidding and quality purchases at UNBS

 

 Test Statistics
 QualityInternational competitive

bidding

Chi-Square13.714​a19.154​b
Df13
Asymp. Sig..000.000
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.0.
b. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 9.8.

Source: Primary Data

The results from the table above indicates that P-value (0.000) <0.05. Then the relationship between International competitive bidding and Quality purchases was significant. This result therefore indicated that international competitive bidding has a big influence on the quality of purchases at UNBS.

 

 

 

Domestic Competitive Bidding and timely purchase

 

Correlations
 Domestic competitive biddingTimely purchase
Domestic

Restrictive

Bidding

Pearson Correlation1.440​**
Sig. (2-tailed) .004
N4242
Timely PurchasePearson Correlation.440​**1
Sig. (2-tailed).004 
N140140
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Primary Data

According to the table above the Pearson Correlation coefficient =0.440​**​thus indicating that there was positive correlation between Domestic competitive bidding and timely purchase. This finding further indicated that the correlation between Domestic competitive bidding and timely purchase was significant and weak.

This result was also further in line with the response from one of the respondents who further indicated that; “When UNBS uses procurement laws sometimes the time spent on advertisement bids is long and the organization does not manage the process well this sometimes leads to the delays of the purchases and our needs are not met on time”.

 

Regression analysis on the effect of Domestic competitive bidding on timely purchase

 

Model Summary
ModelRR SquaredAdjusted r SquaredStd. Error of the Estimate
1.440​a.194.174.746
a. Predictors: (Constant), Timely purchase

Source: Primary Data

 

According to the regression table above r-squared value =0.194. The results indicated that 19.4% of the timely purchase at UNBS was explained by Domestic competitive bidding. This also further indicated that Domestic competitive bidding did not entirely lead to timely purchase.

 International competitive bidding on timely purchase

 

 Correlations
  International competitive

bidding

Timely purchase
International restrictive biddingPearson Correlation1.168
Sig. (2-tailed) .287
N140140
Timely purchasePearson Correlation.1681
Sig. (2-tailed).287 
N140140

Source: primary data

 

According to the table above the result indicates that the Pearson’s correlation coefficient was 0.168. The table further indicated there was weak correlation coefficient between International competitive bidding and timely purchase. This table further indicated that international competitive bidding did not lead to timely purchase.

 

The chi-square test for the relationship between International competitive bidding on timely purchase

 

 

Test Statistics
 International Competitive biddingTimely purchase
Chi-Square34.857​a.000​b
Df21
Asymp. Sig..0001.000
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 14.0.
b. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 21.0.

Source: Primary Data

The results from the table above indicated that P-value (0.000) <0.05. Then the relationship between International competitive bidding and timely purchases was significant. This result therefore indicated that international competitive bidding had an influence on the timely purchases at UNBS projects.

 

Direct procurement on return on return on investment

 

  Correlations 
  Direct procurementReturn on investment
Direct procurementPearson Correlation1-.135
Sig. (2-tailed) .413
N140139
Return on investmentPearson Correlation-.1351
Sig. (2-tailed).413 
N140139

Source: Primary Data

From the table above, the Pearson correlation coefficient = -0.135. This indicated that there was a negative relationship between direct procurement and return on investment. This finding further showed that the more direct procurement was used at UNBS the less return on investments UNBS receives.

 

Correlation Analysis between direct procurement and quality purchase

 

  Direct procurementQuality 
Direct procurementPearson Correlation1 .020
Sig. (2-tailed)  .903
N140 140
QualityPearson Correlation.020 1
Sig. (2-tailed).903  
N140 140

Source: Primary Data

The findings from the table above indicated that P-value (0.903)>0.05, indicating that the relationship between direct procurement and Quality was insignificant. Therefore, direct procurement does not lead to quality purchase.

 

Correlation Analysis between Direct procurement and timely purchase

 

 

  Direct ProcurementTimely Purchase
Direct procurementPearson

Correlation

1-.257
Sig. (2-tailed) .110
N140140
Timely PurchasePearson

Correlation

-.2571
 Sig. (2-tailed).110 
N140140

Source: Primary Data

 

In line to the findings from the table above the results indicated that Pearson correlation coefficient = -0.257 and thus a negative relationship. This result Indicated that the more UNBS uses direct procurement the more the supply of goods and services were delayed in the procurement process at UNBS.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER FIVE

 

DISCUSSION OF FINDINGS

5.0 Introduction

This section discusses the study findings as presented in relation to other scholars.

5.1 Discussion of findings

This section discusses the study in relation to study objectives;

5.1.1. To document different procurement methods.​

According to the findings in the study domestic competitive bidding was one of the procurement methods used at UNBS. The study further showed that there was a slightly weak and significant correlation between Domestic competitive bidding and quality purchases. These results further indicated that though domestic competitive bidding had an influence on quality purchases at UNBS. It was slightly weak and therefore there were other factors that had to be worked on by UNBS to ensure that the products and services they purchased were of quality.

 

From the findings in the study it was also further evident that domestic competitive bidding at UNBS faced many challenges and therefore the organization had to first work on these challenges and some of them according to the responses from the interview were some bidders paid money to enable them violet the procurement laws to the officials at the top management level.

The results therefore indicated that though domestic competitive bidding was essential to achieve quality purchase of both goods and services in an organization like UNBS, the organization’s officials abuse the process, however domestic competitive bidding as a process was essential in enhancing quality purchases in the organization.

This view was also shared by Arrowsmith and Quinot (2013) who indicated that this was a procurement proceeding where in the procurement entity or the government decided that only the domestic suppliers or contractors may participate in the tenders. The author further stated that the use of Domestic procurement was essential if the local suppliers had the capacity to guarantee quality and time supply.

While Gbogr, (2017) noted that World Bank NCT procedures would only be acceptable for use in the Bank’s financed procurement, if these procedures guarantee efficiency, economy, and transparency and in line with other appropriate guidelines of the Bank. NCT begins with a limited advertisement to the national press and PPA official gazette and website. The tendering documents were usually in the national official language of the country and their local currency is used in the processes of tendering and payment, Tenders were expected from suppliers and contractors whose companies that were fully owned or had majority ownership by nationals and was registered in the country , Kinyua, 2015). Further noted that Domestic competitive bidding enhances quality supply to organization’s because only the few strong and stable firms were selected in the procurement process thereby enhancing quality, timely purchase and good return on investment compared with other procurement methods were only local companies are involved.

Still on the findings from the field the results showed that R-squared value =28.6%. This indicated that 28.6% of the variations in quality purchases of the product purchased by the organization was influenced by Domestic bidding, the regression analysis further indicated that there were other factors that affect quality purchases at UNBS and not only domestic procurement.

According to the results from the study the respondents indicated that UNBS used International competitive bidding as one of its procurement methods. The study results further indicated that the R-squared value =16.2%, showing that 16.2% of the variations in quality of purchases at UNBS were explained by International competitive bidding. These finding further showed that though international competition was imperative for UNBS to achieve quality purchases there were other factors that affect the quality of purchases the organization makes.

 

This findings was also in line with Jacob, (2010) who stated that International Competitive Tender International Competitive Tendering can be used whenever open/competitive tendering was used and effective competition cannot be obtained unless foreign contractors were invited to tender as well as, when items to be procured were not available locally or could not be provided on account of technical and other competencies together with financial constraint, the author further indicated that when International competitive bidding is used the organization is able to find the best and the most experienced supplier to supply with the goods or services that the user department needs this was also further supported by the results from the chi-square tests which indicated that the P-Value (0.000) <0.05. Then the relationship between International competitive bidding and Quality purchases was significant. This result therefore indicated that international competitive bidding had a big influence on the quality of purchases at UNBS. This finding was also further in line with Ferwerda,​Deleanu, & Unger, (2017) who indicated that International competitive bidding (ICB) was the most appropriate method of procurement in most cases. This provides an executing agency with a wide choice in selecting the best bid from competing suppliers and contractors. It gave prospective bidders from eligible source countries equal opportunity to bid on goods and works that were being procured.

The results in the study also were in conformity with Hensher & Stanley (2008) who indicated that one of the most appropriate methods was international competitive bidding in public procurement. The process entails the procurement entity to internationally advertise their requirement of goods and service, in an internationally acceptable language. The contract was then awarded to the bidder with the best bids and contract terms. The procurement entity in such kind of arrangements enjoys a certain amount of freedom in selecting winning bids for its projects. ICB procedures are normally employed for contracts with estimated values that exceed thresholds set at the time of procurement plan preparation.

The study results from UNBS indicated that direct procurement was one of the procurement methods used at UNBS. The study results further indicated that the Pearson correlation coefficient is -0.135. This indicated that there was a negative correlation between direct procurement and return on investment. These finding further showed that the more direct procurement was used at UNBS the less return on investments UNBS received. This finding from the study was also in line with Silwimba (2017) who indicates that direct procurement was the acquiring goods, services and construction works from only one source was referred to as: sole-source procurement, single-source procurement, sole source selection, direct procurement, among others. Silwimba (2017) further noted that direct or single sourcing was used where circumstances did not allow for competitive bidding, however if this procurement was used on the big purchase it could make the organization not to realize value for money as the most competent and qualified may be left out therefore the organization will not achieve value for money during its procurement process.

Still on the same not Kiruja (2014) stated that direct procurement method was only applicable on ground of urgency or emergency when life and property were threatened and other methods were not practical, however if an organization attempted to use this procurement method for all its purchases it will lead to poor quality supply and the organization will fail to realize values for money in the long run.

On the same not the results from Pearson correlation coefficient = -0.257. This result Indicated that the more UNBS used direct procurement the more the supply of goods and services were delayed in the procurement process at UNBS. The use of direct procurement in UNBS in most cases did not lead to value for money as there is no timely supply of goods and services at UNBS. 

 

5.1.2 Examine effects of procurement methods on project performance.

According to study findings, the correlation coefficient =0.316* indicated that there was a weak positive correlation coefficient between procurement methods and project performance. The results further indicated that the P-value (0.041) <0.05 indicating that the relationship between procurement method and project performance was significant, Indicating that procurement method affects project performance. This finding however further showed that though procurement methods were essential for UNBS to enhance its project performance, there are other factors that affect the organization.

The study findings further showed that procurement methods were significant in the project performance process in an organization. This view also contends with Hoon, Kwak and Chih (2009:51), who contends development of many organizations, can be influenced by having appropriate procurement methods. He further cited that Public Private Partnerships (PPPs) have emerged as one of the major approaches for delivering infrastructure projects in recent years.

Arrows, (2010:54) on the other hand argues that the experience of the public sector with different procurement methods has not always been positive, many projects are either held up or terminated due to: wide gaps between public and private sector expectations or lack of clear government objectives and commitment.

To further highlight the challenges that procurement faces in delivery quality and timely projects on time (Oluka, 2013:16), elaborated that in a developing country like Uganda, having an effective procurement planning system will continue to be a challenge to many public entities. Planning must become a priority for public entities. However, the Public Procurement and Disposal Authority (PPDA) must play a central role in providing training, technical guidance and ensuring compliance to all set rules (Muhwezi, 2013:45). Conceptually, this study will reveal the critical components of contract selection ranging from the process, through the expected practices, the actors to be involved.

 

The results from regression analysis further indicated that R-squared value =10% indicated that procurement methods did not have a very big effect on project performance. This finding further indicated that though procurement methods were essential it’s not the only determinant of projects performance in UNBS, this view was also further shared by Sabiti, Basheka and Muhumuza (2011:23)’s study conducted in Uganda on developing public procurement performance measurement systems in developing countries: the Uganda experience, the authors note the procurement methods are essential in have good performance in the government projects however organization also needs to have proper planning in order to influence improved project performance.

 

The authors also further noted that accountability was also essential to institutions. The internal contractor selection process of government, procurement and personnel have long received sustained attention as the centerpiece of reforms to promote accountability (World Bank, 2000:44).

 

5.3 Conclusion of the study

The results indicated that there was a slightly weak and significant correlation between Domestic competitive bidding and quality purchases at UNBS. The results further indicated that there was a relationship between procurement method and quality purchase as a measure of project performance at UNBS was significant.

The results from the study also indicated that there was a weak positive and significant correlation between international competitive bidding with quality purchase of goods and services at UNBS; this therefore indicated that an organization could achieve quality purchase by use of international competitive bidding method.

The study results further indicated that there was a negative relationship between direct procurement and project performance. This further showed that when an organization used direct procurement it was not able to achieve value for money in its procurement strategy because this process did not give chance for the organization to get the most competent firm which can supply it with Quality products and services to enhance its performance.

 

5.4 Recommendations of the study

The study made the following recommendations;

The study recommends that UNBS should ensure that it chooses appropriate procurement methods to help in the management of a given procurement process that will enable the organization in achieving value for money.

The study recommends that UNBS should ensure that there is adequate supervision during the procurement process. This will help the organization in achieving value and improving on the performance of the organization.

The study further recommends that UNBS should consider the capacity of the suppliers before awarding contracts this will enable the organization in saving costs to enable it in achieving better performance and improving on their ability to get value for money in a specific project.

This will enable the organization to enhance better performance and achieve their target in time.

5.5 Areas of further study,

The study recommends that future scholars should also study the following areas;

  • The influence of contract monitoring on service quality.
  • Relationship between contract monitoring and improved performance of the organization.
  • Techniques of enhancing better organizational performance.

 

 

 

 

 

 

 

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