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TENDERING PROCESS AND SERVICE DELIVERY IN THE UGANDAN LOCAL GOVERNMENT: A CASE STUDY OF BUYENDE DISTRICT, EASTERN. NTEBAALEX BSP/38277/123/DU A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AW ARD OF BACHELOR'S DEGREE IN SUPPLIES AND PROCUREMENT MANAGEMENT OF KAMPALA INTERNATIONAL UNIVERSITY JUNE, 2015

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Page 1: TENDERING PROCESS AND SERVICE DELIVERY IN THE …

TENDERING PROCESS AND SERVICE DELIVERY IN THE UGANDAN LOCAL

GOVERNMENT: A CASE STUDY OF BUYENDE

DISTRICT, EASTERN.

NTEBAALEX

BSP/38277/123/DU

A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS AND

MANAGEMENT IN PARTIAL FULLFILMENT OF THE REQUIREMENTS

FOR THE AW ARD OF BACHELOR'S DEGREE IN SUPPLIES AND

PROCUREMENT MANAGEMENT OF

KAMP ALA INTERNATIONAL

UNIVERSITY

JUNE, 2015

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DECLARATION

I do hereby declare that "Research entitled Tendering process and service delivery m local

government: a case study of Buyende district." is entirely my own original work, except where

acknowledged, and that is has not been submitted before to any other university or institution of

higher learning for the award of a degree

... r7~J3» 1n ~ .J.: ................. . IJ.~ ... . -------~ -------------·- _Q_q_: __ Q_G. : __ ~ IS

Student sign Date

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APPROVAL

This is to certify that the research of has been under my supervision and is now ready for

submission to the college of economics and management for the award of the degree of supplies

and procm-ement management.

······~ ·-··· · ···· ···•· "'·' ··" ········· ....................... .... ·······

Ms. Kyotuhire Lyn Date

SUPERVISOR

ii

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DEDICATION

I dedicate this book to my family members most especially Father Pr. Kyagwe Peter and Mother

Robin for the effort put through my education and life. May the almighty God bless you for your

enormous contributions.

iii

.: ..

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ACKNOWLEDGMENT

I wish to extend my gratitude to all who have been influential in the completion of this study.

Am indebted to my supervisor Ms. Ms. Kyotuhire Lyn who inspired me to continue with the

subject herein and made suggestions to this work

I would also like to thank the management who have contributed generously to some of the data

herein not forgetting all the respondents.

To my brothers Mwesigwa Dan, Nteba Geofrey, Batende Fronek, Mukisa Job and sisters

Asimwe Dhefine am blessed with their moral, financial and spiritual support that has encouraged

me all through, friends Wambou Muteus Mathew and Batemye Atoh and all the people that have

supported me throughout my study at Kampala International University most especially my

brothers

Lastly to who have made everything possible.

IV

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TABLE OF CONTENTS

DECLARATION ........... ........... .. .................................................. .......... .. ......... .. ............................ .i

APPROVAL .............................. ... ............ ................ .......................................... ... .................. ........ ii

DEDICATION ...... ................................... ................ .. .............. .. .............. ................ ....... : .............. iii

ACKNOWLEDGMENT ... ....... ......... ..... .... ........... ....................... .... ........... .. ..... ................... ......... iv

CHAPTER ONE ..... .......... ............ ...... .. ............. ...... .............. .. .............. ... .............. .. .......... ... .......... 1

PROBLEM AND ITS SCOPE ............................................................................. ..... ............... .... .. . I

1.0 Introduction ........... ........................ .............. ................................. ......................................... I

1.1 Background of the study ............................................... ............ .... .. ... ..... ...... ......................... 1

1.2 State1nent of the problem .............................................. ...... ............ : ································· ·· ···3

1.3 Purpose of the study ....................... ................... .......... ........................ ....................... ........... 3

1.4 Objectives of the study ...................... .... .................................. ... ............................. ............. 3

1.5 Research Questions .. .............................. ...................... .. .......... .... ..................... ..................... 3

1.6 Scope of the study .............................. ............... ....................... .......... ....... ............... ....... ....... 4

1.6.1 Content scope ..... ................ .............. ... ................................. .. ............................ ...... ......... . 4

1.6.2 Geographical scope .. ........ ................. .. ............................ ...................... .............................. 4

1.6.3 Ti1ne scope ...... ............................................ ............ ....................... ............... .................... .. 4

1.7 Significance of the study ............................................. ...... .................................................... 4

1.8 Conceptual framework .. .............................. .... ............................ .. .............. .......................... 5

CHAPTER TWO ......... ................ ............................... ...... ............................................ .......... ......... 7

LITERATURE REVIEW ....................................................... ...................................... ................... 7

2.0 Introduction .... ............ .. ................ .............. .................. ................ .. ... : ..... ... .. ..... ........................ 7

2.2 Challenges encountered in the tendering process ................................... .. .......................... ....... 7

2.3 Mechanisms for improving tendering process for enhanced service delivery .. ........ .. ............ I 0

2.4 Contributions of tendering process on service delivery in Uganda ...... ..... .............................. 13

CHAPTER TREE ... ............................ ................. ........................ ........... ........ ............................... 15

METHODOLOGY ........... .. ......................... .... ................. ................ ...... ....................................... 15

3.0 Introduction ...... ........... .. ...................................................... .. ..... ........ : .................................... 15

3.1 Research Design ........ .. ........... ... .................................... ....... .................................. ..... ............ 15

3.2 Research Population ... ................................ ...................... ....................... ................................ 15

3.2.1 Sample Size ............... ..................... .............. ..................................... ................................... 15

3.2.2 Sa1npling Procedure ... ........... .. ............. .. ............................................................ ................... 16

3.3 Data collection Methods ......................... .. ..... ................. .. .............. ...... ................................... 16

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3.3.1 Questionnaire method .......... ........................ ..... ....... ............................. ................ .. .............. 16

3.3.2 Interview method ........................... .. ........... ................... ....... ...... ........................................ .. 17

3.4 Sources of data ..... ....... ..... ................... ... ... .. ... .... ...................................................................... 17

3.4.1 Primary Data ... .. ......... ...... .... .. ... ...... .................................................................. .................... 17

3.4.2 Secondary Data ...................... ....................................................... ... , .......... ... ......... ........ ..... . 17

3.5 Data quality control ................ ............... ................................................... ...... ..... ....... ........ .. ... 17

3.5.1 Data Validity ..................... ... ............................................................................. ....... ............. 17

3.5.2 Reliability of the instruments ................ ........... ....... ............... ... ........................ .......... ......... 18

3.6 Data Processing and Analysis .................................................................. ......... .... .... ........ ....... 18

3.7 L imitations to the study .... .. ...... ........... ..................................................... ...... ... .. ........ ....... ..... 18

3.8 Ethical Procedures ............. ............ ........... ............................. ........... ............. .... .... ................. . 18

CHAPTER FOUR ............... .. ... ....... ............... ... ............ ... ........................... ........................ ... ....... 20

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS .... ........ ................. 20

4.0 Introduction .............. ....... .. ...................................... .......................... ...... ......... ................... 20

4.1 Profile of respondents ... ............... ... ....................... .......... .... ........ ................. .... ........ ........... 20

4.1 Gender Categorization of respondents ................................................... .. ........................... 20

4 .2 Age Categories of respondents ......... ................... ................. ........ .. : ... .......................... ...... . 2 1

4.3 Academic Qual ification of Respondents ....................... .............. ...... ......... ... ... .... .............. . 2 1

4.4 Role Of Tendering Process In Service Delivery ... ................... ..... ...... .. ....... .. ..... ...... .......... 22

4.4. 2 Role of Tendering Process on Service Delivery .. ............................................................ 23

4.5 Challenges E ncountered In The Tendering Process During The Provision Of Services .... 26

4.6 Mechanisms To Control The Challenges Encountered In Tendering .... .............................. 30

CHAPTER FIVE ..... ...... ........ ......... ...... .. .......... ...... .......... ............ ........... : .. ........ .... ............... ....... . 33

5.0 Introduction ... ............... .. ....... ..................................................... ........ ......... ...... ...................... 33

5.1 Surnmary Of The Findings .. ... ............................................................ ..................................... 33

5.2 Conclusions ... ............. .............................. ... ........................ ........................... .......... ............... 34

5.3 Recommendations ........... ....... ...... .......... ..................................................... ............................ 35

5.4 Areas For Further Research ...... ...... .......................... ...... ....... .... .............................................. 36

REFER.ENC ES ........... ........... ....... ................. .......... ....... ........ .... ........... ..... .... ........... ........ ............ 37

APPENDICES ..... ...... ......... ......... ....................... ........ ..... .... ......... .... ...... ........... .. ......... ....... .... ...... 40

Questionnaire for employees of Buyende district (Procurement and procurement related) ........ .40

Appendix: i Research Budget ....... ...... ... ............ ...... ...... ..... .. ........... .. ............ .... .... .. .. ................... .44

Append ix ii: T ime Frame ................ ...... .......... .................. .... .... .. ........................ .... .......... .... .... .... 45

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CHAPTER ONE

PROBLEM AND ITS SCOPE

1.0 Introduction

This chapter looks at the background of the study, statement of the problem, purpose of the

study, specific objectives, and research questions, scope of the study and significance of the

study.

1.1 Background of the study

Historically the government of Uganda initiated reforms in the public procurement and disposal

sector in 1997, following the enactment of the 1995 constitution and the introduction. of reforms

within the structural adjustment programs. Prior to this, public procurement was governed by the

1977 Public Finance (Tender Board) Regulations under the Public Finance Act of 1964. The

system was centralized and had been in operation for over thirty years. The size of government

had grown considerably and the centralized procurement system was characterized by several

shortcomings, which included: Heavy clogging of tender requests and attendant bureaucratic

delays; Inefficiency; Corruption; and Lack of accountability and transparency.

Conceptually, tendering is the process of making an offer, bid or proposal, or expressing interest

in response to an invitation or request for tender (Wittig, 2003). Organizations will seek other

businesses to respond to a particular need, such as the supply of goods and services, and will

select an offer or tender that meets their needs and provides the best value for money. Tender

request documents; also referred to as invitations to tender, Requests _for Tender, Requests for

Proposal outline what is required, that is, what the requesting organization's needs are. These

documents also outline the particular requirements, criteria, and instructions tha:: are to be

fo llowed.

The tendering process m Uganda, involves key aspects of sources for the organizational

requirements. Comprehensively the process takes into acco unt the requirement identification,

determining procurement method, Procurement planning and strategy development, Procurement

requisition processing, Solicitation documents preparation and publication Pre-bid/proposal

meeting and site visit, bid/proposal submission and opening, bid/proposal evaluation contract

award recommendation, Contract negotiations, contract award and contract management in

organizations. Tendering process play an important role in ensuring service delivery in the

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country. With the aspects of value for money as a driver to procurement and so tendering, the

aspects well coordinated can enhance service delivery to the tax payers through infrastructural

development, such as roads, hospitals, employment and the rest. These raise the urgent need for a

research so as to ensure service delivery through tendering visa vis other factors .

Service delivery is a system or arrangement of periodical performance of supplying public needs.

Helmsing ( 1995) in his study defines service delivery as a deliberate obligatory decision by the

elected or appointed officials to serve or deliver goods and services to the recipients. Heskett

( 1987) defines service delivery as an attitudinal or dispositional sense, referring to the

internationalization of even service values and norms.

A service delivery framework is a set of principles, standards, policies and constraints used to

guide the design, development, deployment, operation and retirement of services delivered by a

service provider with a view to offering a consistent service experience to a specific user

community in a specific business context.

According to National Service Delivery Survey (2008), the government has the ooligation to

provide services to its citizens and to steer economic growth and development through the

provision of public services. The public service is the main implementing machinery for national

development programs and specifically, the delivery of public services. It is therefore very

important for the public service to monitor and evaluate the delivery of public services and to

obtain feedback from service recipients, regarding their efficiency and effectiveness. The

National Service Delivery Survey (NSDS) has been institutionalized by Government as a key

instrument to that effect. Under the Public Service Reform Program, surveys are conducted in the

sectors of education, health, road infrastructure, water and sanitation, agriculture and governance

among others.

The state of service delivery in Uganda is poor in all most all the regions that constitute the

country. The country receives and manages services through the tendering process known as the

request for quotation among other tendering methods. Service delivery in the country especially

in eastern Uganda is generally poor sometimes associated with poor mechanisms of tendering

such as corruption, unserious bidders and poor service providers that either delay or provide

2

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shoddy works to the communities. The procurement report (PPDA report 2010) fotmd out that

the services through tendering in the eastern part of Uganda are poor. The report highly explains

the poor state of health services, educational services and the general road infrastructcres.

1.2 Statement of the problem

The tendering process in Uganda is operated under the public procurement and disposal of assets

authority act (PPDA act 2003), Its objectives are to ensure the application of fairness,

competitiveness, transparency, on-discrimination and value for money and 1-.armonizing

procurement and disposal policies, the tendering system and practices of the central government

,local government and disposal system in Uganda. The aim is to ensure efficient service delivery

to citizens despite the laws governing the operation of the tendering in Uganda, Many districts in

Uganda are poorly operating in regard to the tendering, and this has hindered the ·delivery of

social services such as educational improvement, health services and road infrastructure. It is on

this basis that the researcher intends to conduct a study in Buyende district local government to

establish the status quo for improved service delivery in Uganda.

1.3 Purpose of the study

The purpose of the study was to conduct an investigation on the impact of tendering process on

service delivery in local government

1.4 Objectives of the study

1) To establish the challenges encountered in the tendering process during the provision of

services.

2) To establish the mechanisms for improving tendering process for enhanced service

delivery

3) To assess the contributions of the tendering process on service delivery.

1.5 Research Questions

I) What are the challenges encountered in the tendering process during the provision of

services.

2) Which mechanisms can be adopted for improving tendering process for enharced service

delivery

3) What is the contributions of tendering process in service delivery provisions

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1.6 Scope of the study

1.6.1 Content scope

The study was to examine the impact of tendering on service delivery. Tendering is the

independent variable and service delivery is the dependent variable. The researcher chose the

topic because it was a key avenue through which procurement provides service de! ivery to the

citizens.

1.6.2 Geographical scope

The study was carried out in Buyende district local government in eastern Uganda because of its

accessibility by the researcher and the fact that it holds substantial information on the -subject

1.6.3 Time scope

The research was carried out for a period of 4 months and the focus is from January to May

2015. The time was chosen because of less academic activity at the university and the fact that it

will enable data collection.

l. 7 Significance of the study

Some of the aspects addressed herein were important in availing answers to questions of how to

maximally exploit the opportunity of accessibility in the tendering process in order to attain

maximum yield for reinvestment especially value for money and service delivery.

These study findings was serve as reference points for future tendering and procurement process

researchers by providing some literature information (literature review) about o1her factors

affecting the service delivery.

The research provided information regarding to tendering and mechanisms for their effective

improvement in Uganda. The research explored other parameters that can enhance service

delivery in Uganda visa vie procurement.

The research resulted into the award of bachelors of supplies and procurement management of

Kampala international university. Upon its submission to the univers ity authorities

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1.8 Conceptual framework.

This is a graphical/diagrammatical representation of variables; it shows how the variables are

linked to each other and identifies the variables within their measurable units.

Figure i : Conceptual frame work showing the relationship between tendering process and

service delivery

Independent variable dependent variable

Tendering process Service delivery

I ·~ t • Request for proposals • Road network

• Sole tendering • Sufficient health services

• restricted tendering • Quality services

• competitive • Easy decision makihg

• open tendering • Improved justice

• Coo~dinated leadership

- ..

Intervening v ~riables

• Capital

• People s commitment

• Culture

• Government policy

Source: Researcher devised (2015)

The framework above present information that portrays the linkage b~tween tendering process

and service delivery in Uganda. The independent variable in this case presents information

Request for proposals, sole tendering, restricted tendering, competitive and open tendering which

depicts the prevalence of the tendering process in an organization, the prevalence Jf which is

enhances service delivery in Uganda. The contributions of the process present information that

facilitates the provision of services in an organization. Therefore sufficient and quality services

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such as road network, sufficient health services, quality services, easy decision making,

improved justice and coordinated leadership. The prevalence of the services deliver~d Q1ay also

be affected by capital, People s commitment, culture; government policy and training

professional whose contribution to the tendering process immensely affect the service delivery.

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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This section shows all the literature that was used in the study. This helped the researcher in data

compilation and making the analysis in the research report. In this literature review, several

materials for example textbooks, magazines, pamphlets news papers and the imernet were

consulted.

2.2 Challenges encountered in the tendering process

Davilla A., Gupta M. and Palmer R.J. (2002), Private sector participation in public procurement,

particularly goods and services, is very minimal. Local traders, suppliers, wnsultants,

contractors, architects and engineers have not built enough capacity to participate in tenders

advertised internationally and locally pa11icularly when the values are large. Local suppliers and

contractors often do not have the capacity to raise credit, bid bonds and securities from local

banks and insurance companies, in pat1 due to the high rates of interest charged.

Suppliers who would like to participate in public procurement find the procurement procedures

irrational and cumbersome. They are sometimes excluded when the procurement is too big and

they are apprehensive of unfamiliar procedures. They are not well informed c,f how the

procurement process functions, which renders the process, open to abuse. The private sector

does not believe the public procurement process can move without a "push". The private sector,

however, would embrace clear, easy-to-follow guidelines if this minimizes costs and facilitates

business. Cheung, C.F, W.M Wang and Victor Lo (2004),

There are indications that over and under-invoicing in imports and local procurement are

common practices. This is attributed to mainly inside dealings. However, long time lags and

delays on the part of government to pay suppliers are some of the causes for over-invoicing.

Under invoicing is due to uncertainties relating to a supplier's chances of winning a tendeJ bid ..

Financial Framework: Most banks in the country have international connections. They are able

to issue letters of credit, bid bonds and other guarantees for compliance with tenders. The credit

worthiness of the banks is guaranteed in that the Bank of Uganda supervises and ensures that

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only credit worthy and professionally managed banks are licensed to operate in the country. High

interest rates (e.g. 18% - 25%) appear to be a hindrance for national suppliers to access credit.

Similarly, some national bidders find the I 0% requirement for bid bond too high, and they end

up not participating in tenders advertised locally.

Many corporate board members in Africa, especially of state-owned companies, have limited

understanding of their roles, and are usually open to manipulation by management, chairmen, or

principal shareholders. Some are outright incompetent. Non-executive directors in Africa need to

play any meaningful role in the ensuring compliance. However many simply act as rubber

stamps for decisions taken outside the board (Charles & Oludele, 2003). In this perspective,

compliance arises from a dynamic equilibrium between the various powers of the state and

understanding what their roles are (Fisher 2004).

Public Procurement and Disposal Authority (PPDA) lacks capacity in staffing and other key

areas to carry out its functions. Some capacity issues are in terms of systems and processes

which could improve the monitoring of procurement processes within the country. Again the

lack of regional presence of Public Procurement and Disposal Authority (PPDA) makes it

difficult for service providers to make their complaints in time. (2nd Public Procurement

Integrity Survey, 2008)

Capacity building and the development of professionalism in purchasing is a long-term process

and consequently improvements in professional practice will only be gradual. The establishment

of a national professional body with effective control over the conduct of practitioners will take

some time to achieve. Meantime, the shortage of proficient practitioners and weak professional

regulation will remain. (Agaba, Shipman 2007)

Another factor is due to instutionalisation and According to Guy (2000), there are six dimensions .

though which we can judge the level of institutionalization of any structure and its ability to

adapt to change, including: autonomy, complexity, coherence, congruence and exclusivity.

Implementation of organizational activities depends on the relationships between and within

organizations. One way to explain this relationships and its effect on implementation of

organizational activities is the principal-agency theory holds that shirking is likely to Dccur when

there is some disagreement between policy makers and the bureaucracy·

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Conflict of interest is another problem that is weakening the government. Kanyanc (2005 :62)

asserts that conflict of interest arises when the private interests of a government official clash or

even coincide with public interests. Such tension raises an ethical dilemma when the private

interest is sufficient to influence or appear to influence the exercise of official duties. It is the

responsibility of all public officers to ensure the integrity and impartiality of the procurement

process. Conflict-of-interest situations may arise in cases where a public officer exercises his

authority, influences decisions and actions or gains access to valuable information, perhaps but

not necessarily restricted or confidential. Conflict of interest may also atise from participation by

consulting firms or contractors in government procurement. All parties involved in ~ rocurement

must be alert to situations which may lead to actual, potential or perceived conflict of interest

and ensure that sufficient safeguards are in place to avoid such situations from ari~ing. Public

officers involved in government procurement, including in particular the chairperson and

members of bid-specification, bid-evaluation and bid-adjudication committees, tender opening

officials and consultants must avoid conflicts arising between their official duties and their

private interests.

Cover quoting refers to the manipulation of the three-quote procurement system by a

departmental official, acting in collusion with a supplier, whereby multiple quotations are

submitted as if they were independent quotes. Cover quoting cannot happen in ignorance or be

occasioned by negligence. It is pre-meditated and intentional. The official involved in the

procurement process would contact one supplier and request that supplier to submit multiple

quotations, under the guise of different entities. When received, the officer would process or

present these as independent quotations. As this involves dishonesty by the officia l, it usually

goes hand in hand with a corrupt reward. The supplier would, on request of the i:rocurement

officer, or alternatively at his own suggestion, submit multiple quotes using names and

letterheads of actual and fictitious entities that he controls or has manufactured. This enables him

to artificially inflate prices, as he is assured that one of his three quotes is the lowest, regardless

of how expensive it may be. As the supplier controls all three quotations the competitive nature

is eliminated, including the natural checks and balances, which keep prices reasonable. As the

supplier can now achieve bigger profits, he can afford to share these proceeds with the official

Who allowed the practice.

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Fronting is one common thorn tormenting the public procurement fraternity. Thompson

(1995: 192) defines fronting as the side that is seen first or that goes first or as the outward

appearance of a person or a person that is used as a cover for some questionable activity. In this

respect fronting is a practice that takes place at many levels in our personal and social lives, and

in some respects we may even be unconscious of our demeanours. Fronting is when black people

are listed as directors of companies, but do not take part in the decision-making process or

ownership of the business. They are simply the black faces of companies that want ~o present a

facade that suggests that the business supports

The researcher observed a lot of people masquerading as contractors, who have no resources to

start projects and therefore have to cede their tenders either to big white owned ccmpanies or

material suppliers. These people then take over the execution of the projects. These "contractors"

take a lump sum and go and sit at home or buy luxury cars. In the end they have not participated

in the project execution. There was no skill transfer in the managing of a construction project and

they do not invest in their own company assets, which they will use in the next project or hire out

to other contractors. The cycle is repeated over and over again and in the end there will be no

new black contractors created through government affirmative procurerpent practices

2.3 Mechanisms for improving tendering process for enhanced service delivery

Carter Rosalyn Y.and Grimm Rick (2001 ). For the tendering arrangements to operate

successfully, the participating procuring entities must have ownership and commitment to the

process. This can best be achieved by their involvement in all contracting activities: from

production of specifications through to contract award and performance monitoring. In practice

for each contract, only one entity will be responsible for letting the contract. This will usually but

not necessarily be the largest purchaser. Whoever undertakes the process must agree on the

contracting decisions with the other participants. For the framework arrangements an estimated

quantity of requirements to be purchased during the contract period must be made known to the

renderers. Also, there should be a facility for the contract/arrangerrient to provid~ choice of

product or service if this is required by individual procuring entities. The process w:11 not work

well if standards are dictated to individual purchasers. Variable prices for different purchase

quantities, different geographical locations and different service levels may be ,~stablished.

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However, for this arrangement to work there must be a c lear commitment to use the contracts by

the participating entities.

Ensure Professional Input Into The Contracting Process, Procuring entities should train and

develop professionally qualified staff for public sector procurement. To do this, it will be

necessary to: Maximise the use of existing resources, possibly by developing a specialised multi­

disciplinary contracting team that could provide professional advice and assistance to individual

purchasing entities for major contracts. The responsibility for the contracting process, the

contract award and the contract performance would remain with the procuring ent it:1. It would

be a central function to co-ordinate this process. Employ external consultants to advise and assist

with the contracting process. The selection of consultants for this work would be undertaken by

means of competitive tenders in accordance with the procurement legislation. Help in this

process would be available from the central advisory function. Help individual procu::ing entities

undertake this process, it is recommended that the central policy unit issue guidance on best

practice in "contracting for consultants Balasubramanian P and Tewarx Ashish Kum1!,r(2005).

Promote Effective Domestic And International Competition by Qualified Suppliers, To obtain

best value, quality and service it is good procurement policy to encourage the most ::ompetitive

and able suppliers to tender for your contracts. To achieve this objective, the NPPU and

procuring entities must emphasis: Procedures which are fair, non discriminatory and transparent;

Compliance by the purchaser with their obligations under the contract including the ' 'terms of

payment"; Standard conditions of contract; Requirements w hich are clear-- using performance

and international specifications where possible; Rationalization of needs and aggregation of

demand to facilitate economic manufacture; Use of framework and call off contracts; Use of long

term contracts "two or three years" to encourage investment; Good working re lationships and

trust between purchasers and suppliers. Mode l guidelines fo r devel<?ping good relationships.

Croom S. and R. Johnstone(2004),

There is also a question mark over the likely effect of Competitive Dialogue on the length of

Preferred Bidder periods. The implication was that far more had to be agreed while the

competit ive process is ongoing, with the commercial deal largely fleshed out by Preferred Bidder

appointment. But, any temptation to regard this as a solution must be· tempered by the report's

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findings on what has caused delays in the past. For instance, the report points to examples of

contractors ignoring the contents of Preferred Bidder letters; delays ca~sed by the need to secure

planning permission; and the need to reconsider affordability. It also emphasizes the importance

of public sector experience. One particularly experienced PPP Unit of a city council took 15

months from appointment of a Preferred Bidder to close its first PFI deal, but has successfully

kept the Preferred Bidder period down to under six months for the four deals pro~ured since

then. Experience enabled a better understanding of when and how to use external. advisers, a

better understanding of how to define the project specifications, and greater commercial

awareness leading to more focused negotiations.

The report found that, partly as a result of high bid costs and lengthy tendering periods, the

private sector has become more selective in developing bids for projects. It is now common for

contractors to set an annual budget for how much they are prepared to spend on bidding fo r

projects. High bid costs reduce the number of projects for which they are prepared to bid in any

particular year. Lengthy tendering periods mean that bid teams are tied up for longer.

It will be important for the Government to monitor whether the impact of lengthier competitive

phases, and the attendant uncertainty for bidders over who wi ll win the contract , results in

greater bidder selectivity. This risk has already prompted suggestions that the p11blic sector

should narrow the field down to just two bids from very early on in the process, sc as to li mit

costs, and in the longer term there may be pressure to contribute towards the costs _incurred by

losing bidders.

These risks make it all the more important that the tendering process is improved. vlost of the

projects examined in the repo1t had reached Financial Close by the time of the publication last

year of the Treasury report 'Strengthenjng Long-Term Pa1tnerships', which re-affirmed the need

for projects to be better developed before going to the market, promised the stren~ hening of

PFUs and committed to greater scrutiny of projects in procurement. And in January this year, the

Treasury published 'Transforming Government Procurement', which proposed cha;:iges to the

Government Procurement Service, aiming to facilitate the effective rec:ycling of existing skills in

sector.

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Will these measures make a difference? The answer is that they should, but, much depends on

how they are implemented across the public sector. 'Meeting the Investment Challenge

(Treasw-y, 2003)', also dealt with many of the same issues, including the developmenl of projects

before they were brought to the market, the recycling of complex procw-ement expertise and the

sharing of Best Practice across the public sector. In part, the prevalence of these and other issues

testifies to the difficulties involved. The hope though is that the momentum generated by the

NAO report, with accompanying recommendations (see box) such as the agreement of sector

specific target tendering times, will act as a catalyst for finally getting to grips with some of these

issues and lead to a genuine reduction in tendering times.

Finally, there are the public interest groups, largely the Non-Governmental Organizations, which

perform a dual role of remote monitoring of procurement performance by Procuring Entities and

a direct advocacy role for the adoption of best practices in public procurement. An efficient and

effective system must develop institutional inter-linkages between all interested parties and

structured mechanisms for periodic exchange of information on different aspect 0f systemic

performance in order to continuously infuse the system with best practices. The PRJU is working

assiduously to put structures in place to take advantage of the synergies such cooperation will

invariably offer.

2.4 Contributions of tendering process on service delivery in Uganda

Johan (2006) further came up with some important service delivery improvement :,logans. He

said he who fails to plan for service delivery, plans to fail delivering services to the public. And

if it cannot be measured, it cannot be improved. If we only plan to comply with regulations, we

are not managers, we are robots. What we plan we must implement. What we implement, we

must monitor. We should not be afraid to ask the customer (citizens). They really do know best

what they need and what they get. It is not always the same thing.

Procurement Policy Manual (2009), tendering drives different expected results which are

different from business as usual such as: reduction in the number of overall contract awards,

understanding and managing total cost of ownership, more purchasing options (lease vs. buy) ,

data-driven decision making, improved risk mitigation prior to award, more identification of

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oppo1iunities where suppliers can add value, improved relationships with suppliers which leads

to improved service delivery

Conformance is the degree to which a service design and operating characteristics meet

established standards. Good service is therefore equated with operation within a tolerance degree

(Balunywa, 1998). The question here is that can the service achieve the core purpose for which it

is intended? If the service performs as expected and intended it will be considered good service

offered.

Timeliness. Delay in service delivery will make the services to loose the meaning r.nd hence a

service should be offered in time before it becomes irritating to the consumer (Ssemayengo,

2005). Services which are delivered in time are said to of good service and those that are not

delivered in time are said to have poor service. Tendering is what can ensure that timeliness is

followed hence improved service delivery to the citizens.

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CHAPTER TREE

METHODOLOGY

3.0 Introduction

This chapter presents the plan and tools that was used in the study, design population, sample

size, sampling strategies, research instruments, validity and reliability, data gathering procedure,

data analysis and limitation of the study.

3.1 Research Design

The researcher used a descriptive comparative research design that involved the use of both

qualitative and quantitative research designs to conduct the whole study. Qualitative research

design seeks to locate the study in scholarly debates in tendering process and service delivery.

Quantitative research design was also used to compare service delivery and tendering process

because the findings of the study are both numerical and non-numerical (respondents options and

views about the study variables) and have to be quantified for easy interpretation a:1d description

accompanied.

3.2 Research Population

According to Diamantopoulos et al., (2000), a population is the totality of an entiti~s in which

the researcher had an interest, meant it was the collection of individuals, objects c,r events in

which the researcher wants to make inferences. The target population of the study was the

selected employees of Buyende district especially those who interact with procurement. This

category included contracts committee 5, evaluation committee 4 procurement and disposal unit

3 and management 16 and user department 40 plus 32 service providers and selected citizens

with Knowledge on tendering. It was from this population of l 00 that the samp!e size was

selected and this enhanced data collection and effective representation.

3.2.1 Sample Size

From the estimated population of 100, a sample size was determined to provide information.

n= N

l+Nx(e)2

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Where

n = sample size

N = population size

e= level of significance 0.05

For this study:

n= 100

1 + I 00(0.05)2

100

1 + I 00(0.0025)

100

)+0.25

n= 80

100

1.25

3.2.2 Sampling Procedure

The research used stratified random sampling to select the respondents .This was so, because the

study population mentioned above was of different characteristics so stratifying the population

hence enhanced equal representation from the different departments, after this simple random

sampling was used to select the required sample size.

3.3 Data collection Methods

3.3.1 Questionnaire method

The researcher designed a set of questions and made a questionnaire. This was comprehensive

enough to cover the extent of the problem and all aspects of the study variable basing on the

objectives of the study chapter one (1.4). The questions contained in the questionnaire which

were both open and close ended that enabled the respondents express their v iews ar.d opinions.

Some of the questionnaires was delivered to the respondents by the researcher and others was

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personally administered by the researcher, thus self- administered and researcher administered

questionnaire respectively was used to obtain primary data.

3.3.2 Interview method

This was done through oral conversations in order to get information. To increase the response

rate the researcher used interview method to obtain primary data. The interviews 'v\ere formal/

semi structured or structured involving a pre-designed interview guide.

3.4 Sources of data

In this study two types of data was used by the researcher, primary data and secondary. In

recognition to this, the researcher collected data that was relevant to the research problem.

Primary data is that data collected afresh and for the first time, have not been processed. While

the secondary data is one which have been already collected by someone else for other purposes

and can be used to compile data or raw data.

3.4.1 Primary Data

Observation, focus group discussion, questionnaires and interview was common research tools

used to collect data. This aimed at collecting primary data from the respondents of Buyende

district local government.

3.4.2 Secondary Data

The secondary data obtained through minutes of meetings in procurement related aspects, project

plan journals. In this study the researcher used documents and other records that were already

published to access information.

3.5 Data quality control

3.5.1 Data Validity

Data validity was checked by the researcher comparing the written information in the reports

concerning supply chain information management and its correlation with perfotmance. This was

together with choosing a clear sample population that gives a representation of the entire

population.

The tool validity was checked and confirmed using re-test method, three weeks la~er between

the first and second application and using Cronbach Alpha for the internal coordination, the

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value for re-test will be a content validity index(CVJ.) judges were used to establish a validity

for each item. Where by judges were selected to judge each item. The inter judge coefficient

validity will be computed to be CVI= (number of judges declared item valid) (total r.o of judges

to arrive at an average acceptable for the study using the research instrument

3.5.2 Reliability of the instruments

To establish the reliability of the instruments, the researcher administered pilot studir.s or pretest

and use of data control tools to the various officials; computation was done by the use of

Microsoft excel. This was so for the case of questionnaire research instrument. The data was

analyzed and fed accordingly. After data collection the researcher conducted a check of the

information by subjecting secondary questionnaire guides in form of pre- examination so as to

identify the correlation in the information given.

3.6 Data Processing and Analysis

Once the researcher obtained the necessary data from the field. The researcher an3.Jyzed, and

interpret it in relation to the objectives of the study. The researcher presented the findings in

form of tables, graphs and pie charts. Analysis and presentation of the findings in this way

enhanced the understanding of the interface made thereby improving reliability and validity.

3.7 Limitations to the study

The researcher takes prediction of the following limitation

I. Financial constraints, difficult for the researcher to raise enough funds for the research

study. This was solved by the researcher acquiring money from his savings.

2. Difficulty to access respondents. This was solved by designing a questionnair:- to suit

3.8 Ethical Procedures

The researcher chose a topic and supervi sor at the University, upon approval of a research topic

by the supervisor; the researcher attained a letter of introduction from Kampala international

university college of applied economics and management Sciences. The researcher begun on

data collection process. The researcher made the questionnaires commensurate to the number of

respondents, and then personally deliver the questionnaires to Buyende district local government.

The researcher ensured honesty and confidentiality in data collection including respecting the

rights respondents , thus free will and not compulsion After all questionnaires are back, the

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researcher organized the work by summarizing all responses . Data was fed into the computer

using Microsoft excel. After computation, the researcher prepared the final reports for

submission to the department of procurement, marketing and hospitality under the College of

Economics and Management Sciences in Kampala International University.

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CHAPTER FOUR

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS

4.0 Introduction

Data presentation, interpretation and analysis has been done under the guidance of the research

objectives set in chapter one. The interpretation also seeks to answer the research questions that

were raised. Presentation and interpretation of data in this chapter has been done with the aid of

quantitative and qualitative methods for quantitative methods involved the use of tables, graphs,

percentages and personal analysis and interpretation presented in essay form.

4.1 Profile of respondents

4.1 Gender Categorization of respondents

Table 1: Showing respondents categorization

Respondents F1·equency

Male 50

Female 30

Total 80

Source: Primary data, 2015

Percentage

64

36

100

Results from Table ( 1) show that the majority of respondents are male that is 25 respondents

representing 64% of the total respondents and 15 respondents are female representing 36% of the

respondents. This implies that both genders were involved in data collection.

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4.2 Age Categories of respondents

Table 2: Showing age categorization of respondents

Age category Frequency Percentage

18 -25 14 17.5

26 - 35 30 37.5 ·

36-45 24 30

45+ 12 15

Total 80 100

Source: Primary Data, 2015

Results in table 2 present findi ngs on the age of respondents, 26 -35 was the majority age group

with 37.5% of respondents fo llowed by 36 -45 with 30%, next were 18-25 with 17.5% and

finally 45 above with 15% of the total respondents, From the above analysis, it can be construed

that the majority of the respondents are mature people and therefore they have an active memory.

It is possible that the mature nature of respondents present a mature tendering for service

delivery in Buyende district.

4.3 Academic Qualification of Respondents

Table 3: Academic qualifications of the respondents

Academic qualifications Frequency Percentage

Certificate 16 20

Diploma 14 17.5

Degree 26 32.5

Masters 16 20

Others 8 10

Total 40 100

Source: Primary data, 2015

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Results in Table (3) present that the majority of the respondents were degree holders representing

32.5% masters and certificate were next with 20% each followed by diploma with 17 .5% and

finally others with 4(10%). This implies that the respondents are well educated and therefore the

information obtained from them can be relied upon for decision making.

4.4 Role Of Tendering Process In Service Delivery

The initial objective under this study set to identify the role of tendering process on the delivery

of services in Buyende district. The responses were attained on the likert scale measure of I :5

presented and interpreted as below.

Table 4: Showing prevalence of effect of tendering on service delivery

Response Frequency Percentage

Yes 50 65.2

No 20 25.0

Not sure 10 12.5

Total 80 100

Source: primary data, 2015

Results in Table ( 4) indicate that majority 62.5 % of respondents agreed that the tendering

process affect service delivery, 25% disagreed and 12.5% were not sure, implying that perhaps

tendering is complemented by other factors in delivering services.

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4.4. 2 Role of Tendering Process on Service Delivery

Table 5: Showing the response to the effects of tendering on service delivery

Roles of tendering Strongly Agree Disagree Strongly Total

Agree Disagree

F % F % f % F % F %

Enhanced level of 40 50 10 12.5 18 22.5 t2 15 80 100

accountability

Reduction of 36 45 10 12.5 26 27.5 4 5 80 100

wastage and

appropriate allocation of

services

--

Checked service quality 32 40 12 15 22 27.5 6 7.5 80 100

Provision of quality 30 37.5 10 12.5 20 25 10 25 80 100

services

Timely delivery and 60 75 8 10 8 10 4 5 8(1 100

accessibility

Improved compliance 40 50 48 30 10 20 0 0 8C 100

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Effective resource 28 35 20 25 28 45 4 5 80 100

utilization

Source: primary Data, 2015

Results in Table (5) present findings on the responses about the role of tendering on service

delivery in Buyende district, 50% of the respondents who strongly agreed, 12.5% agreed, 22.5%

disagreed and 15% strongly disagreed with enhanced level of accountability due to tendering.

Reduction of wastage and appropriate allocation of services had 45% of the respondents who

strongly agreed, 12.5% agreed, 27.5 % disagreed and 5% strongly disagreed.

Checked service quality had 40% of the respondents who strongly agreed, 15% agreed, 27.5 %

disagreed and 7.5% strongly disagreed

35% of the respondents who strongly agreed 12.5% agreed, 25% disagreed and 25% strongly

di sagreed with Provision of quality services through tendering.

Timely delivery and accessibility had 75% of the respondents who strongly agreed, I 0% agreed,

I 0% disagreed and 5% strongly disagreed.

Improved compliance had 50% of the respondents who strongly agreed, 30% agreed, 20%

disagreed and none strongly disagreed

Effective resource utilization had 35% of the respondents who strongly agreed 25% agreed, 45%

disagreed and 5% strongly disagreed.

This implies that tendering process in Buyende district contributes to service delivery. It means

that there is need fo r improving the tendering process for the purpose of enhancing se:·vices to

the local citizens in Buyende district.

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1igure i: A chart showing the total number of respondents who strongly agreed and agreed

he role of tendering delivering services in Buyende district

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0

,ource: Primary data, 2015

'rom the figure (i), it can be seen that as regards the role of tendering in service delivery.

lCCOrding to the respondents who strongly agreed and agreed timely delivery and accessibility

ad the highest (85%), followed by improved compliance with 80% and finally enhanced level

f accountability with 63%. Others in the descending order were effective resource utilization,

:Xiuction of wastage, checked service delivery and provisions among others.

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4.5 Challenges encountered in the tendering Process during the Provision of Services

To the second objective that was intended to establish the challenges that can be encountered in

the tendering process during service provision in Buyende district.

Table 6: Responses to the prevalence of challenges to the tendering process in Uganda

Response Frequency Percentage

Yes 70 87.5

No 4 10

Not sure 2 2.5

Total 80 100

-

Source Primary data, 2015

Results tabulated in Table (6) above present a majority 87.5 responses towards the presence of

challenges in tendering and delivery of services in Buyende district. 10% and 2.5% disagreed

and were not sure respectively. This is an indication of dire need for the state of service delivery

in Buyende district.

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Table 7: Showing response the challenges encountered in the tendering process during the

provision of services in Buyende district.

Challenges Strongly Agree Disagree Strongly Total

Agree Disagree

..

F % f % F % F % F %

Poor and unskilled 32 40 24 30 28 30 4 5 80 100

suppliers

Fraud and extortion 40 50 20 25 14 17.5 6 7.5 80 100

Limited compliance 28 35 36 45 12 15 4 5 80 100

from providers

Limited funding 40 50 24 30 19 10 8 10 40 100

Collusion of bids 28 35 24 30 12 13 20 25 80 100

Corruption 26 32.5 20 25 24 30 10 12.5 80 100

Conflict of interest 20 25 34 42.5 14 17.5 12 15 80 100

Source: Primary Data, 2015

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Results in table (7) present that that the changes facing tendering and service delivery in

Buyende district include Poor and unskilled suppliers 40% of the respondents who strongly

agreed, 30% agreed, and 5% strongly disagreed, and 30% respondents disagreed.

50% of the respondents strongly agreed in respect to 'Fraud and extortion, 25% agreed, 7.5% of

the respondents strongly disagreed and 17.5% disagreed.

Limited compliance from providers 'had 35% of the respondents who strongly agreed, 45%

agreed, 15% of the respondents disagreed, and 5% strongly disagreed.

50% of the respondents strongly agreed with limited funding, 30% agreed, 10% disagreed and

10% of respondents

Collusion of bids on by 35% respondents who strongly agreed, 30% agreed, 13% respondents

disagreed and 25% strongly disagreed

Conflict of interest had 25% who strongly agreed, 42.5% agreed, 17.5% disagreed and 15%

strongly disagreed.

The challenges of tendering process in Buyende district mentioned above denote an existing

situation in terms of the constraints hindering the tendering process. The presentation implies

that there are challenges to tendering which limit service delivery.

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i'igure ii: A chart showing the total number of respondents who strongly agreed and

.greed with the challenges encountered in the tendering process during the provision of

ervices in Buyende district expressed in percentages.

,ource: Primary Data (2014)

rom figure (ii) above chart it can be concluded that the challenges encountered in the tendering

rocess during the provision of services in Buyende district were crucial with collusion of bids

nd limited suppliers having the majority of the respondents who strongly agreed and agreed by

0% on average as per those who strongly agreed and agreed.

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4.6 Mechanisms to Control the challenges encountered in tendering·

The third objective sought to establish the mechanisms to control the challenges encountered in

tendering.

Table (8): Showing the responses to the mechanisms to control the challenges encountered

in tendering in Buyende district.

Control mechanisms Strongly Agree Disagree Strongly Total

Agree Disagree

F % F % F % F % F %

Capacity building to 40 50 22 27.5 8 10 10 12.5 80 100

enhance both suppliers

and buyers

Use of laws to punish 32 40 26 32.5 20 25 2 25 80 100

the corrupt

Staffing of 30 37.5 28 35 22 27.5 0 0 80 100

procurement

department

Develop management 40 50 22 27.5 28 22.5 0 0 80 100

information system and

advertising tenders

publically

Ensure professional in 20 25 36 45 12 15 12 15 80 100

put in contracting

Ethical behavior to 36 45 16 20 16 19.7 12 15 80 100

avoid corruption

..

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strengthen operation of 40 50 IO 12.5 20 25 20 25 80 100

regulation and

procedure

Monitoring and 24 30 20 25 20 25 16 20 80 100

auditing supplier

compliance

Source: Primary Data, 2015

In reference to the table above that explicitly expresses the mechanisms to control challenges

encountered in tendering in Buyende district,50 % of the respondents strongly 2.greed with

capacity building to enhance both suppliers and buyers, 27.5% agreed, 12.5% strongly disagreed

and 1 0% of the respondents disagreed.

Use of laws to punish the corrupt had 40% of the respondents who strongly disagreed, 32.5%

agreed 25% of the respondents disagreed and 2.5% of the respondents strongly disagreed.

Staffing of procurement depa11ment had 37.5% of the respondents who strongly agreed, 35%

agreed, 27 .5% of the respondents disagreed and none strongly disagreed.

50% of the respondents strongly agreed, 27.5% Agreed, 22.5% disagreed and none of the

respondents strongly disagreed to develop management information system and advertising

tenders publically as one of the mechanism encountered in tendering in Buyende district.

Ensure professional in put in contracting had 25% of the respondents who strongly agTeed, 45%

agreed, 15% disagreed and 15% strongly disagreed.

Ethical behavior to avoid corruption had 45% who strongly agre_ed, 20% agreed;· 19.7%

disagreed and 15% strongly agreed

Strengthen operation of regulation and procedure had 50% who strongly agreed, 12.5% agreed,

25% disagreed and 25% strongly agreed

Monitoring and auditing supplier compliance had 30% who strongly agreed, 25% agreed, 25%

disagreed and 20% strongly agreed.

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The study on this objective was intended to .establish mechanisms for controlling the challenge

encountered in tendering process in Buyende district. The responses on the mechanisms imply

that applying the mechanisms will improve the tendering process for service delivery.

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CHAPTER FIVE

SUMMARY OF THE FINBDINGS, CONCLUSION, RECOMMENDATIONS

AND AREAS FOR FURTHER RESEARCH.

5.0 Introduction

This chapter looks at the summary, conclusion of the research findings, consid{:rs possible

recommendations and suggests areas for further research.

5.1 Summary of the Findings

The study was about tendering process and service delivery in Buyende local government in

eastern Uganda. The researcher set the objectives from which the questionnaire wa5 drafted to

him in collecting data. The objectives were to; to assess the contributions of the tendering

process on service delivery, establish the challenges encountered in the tendering process during

the provision of services and to establish the mechanisms for improving tendering process for

enhanced service delivery in Buyende District.

Basing on the researchers of objective which thought to assess the contributions of the tendering

process on service delivery, the researcher asked the question to wheth~r there was a role played

by tendering process to ensure service delivery and was indicated that majority 62.5 % of

respondents agreed that the tendering process affect service delivery, 25% of the total

respondents disagreed and 12.5% were not sure, implying that perhaps tendering is

complemented by other factors in delivering services.

As the per the role of tendering process on service delivery in Buyende district, the researcher

gave the respondents the chance to tick appropriately based on their level of understanding and

how each point could play a role on service delivery. On this perspective, 50% of the

respondents who strongly agreed, 12.5% agreed 7.5% were not sure, 5% disagreed and 15%

strongly disagreed with enhanced level of accountability due to tendering but majority

respondents who strongly agreed were in support that tendering process plays a majo1: role in

ensuring timely delivery and accessibility and this was strongly agreed by 75% of the total

respondents. In line with those who strongly agreed and agreed, also timely delivery and

accessibility had the highest (85%), fo llowed by improved compliance with 80% and finally

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enhanced level of accountability with 63%. Others in the descending order were effective

resource utilization, reduction of wastage, checked service delivery and provisions among others.

The second objective which was intended to establish the challenges encountered in the

tendering process during the provision of services, the researcher was in the first case interested

in knowing whether there were the challenges encountered and on this point, majority 87.5%

responses towards the presence of challenges in tendering and delivery of services in Buyende

district. 10% and 2.5% disagreed and were not sure respectively. These researche..-s' findings

indicated that the situation in Buyende district required serious attention to overcome such

challenges.

On the same objective, the researcher gave them the option to answer to best of their knowledge

where 50% of the respondents strongly agreed with limited funding, 30% agreed, 5% disagreed

and 5% of the respondents were not sure not sure and 10% of respondents. The researcher

concluded that the challenges encountered in the tendering process during the provision of

services in Buyende district were crucial with collusion of bids and limited supplier~ having the

majority of the respondents who strongly agreed and agreed by 80% on average as per those who

strongly agreed and agreed.

The researcher's objective which was intended to establish the mechanisms for improving

tendering process for enhanced service delivery in Buyende District, 50 % of the !"espondents

strongly agreed with capacity building to enhance both suppliers and buyers, 27.5% agreed 7.5%

were not sure, 12.5% strongly disagreed and 2.5% of the respondents disagreed and .use of laws

to punish the corrupt had 40% of the respondents who strongly disagreed and others responded

to staffing of procurement depaitment, develop management information system and advertising

tenders publically, ensuring professional in put in contracting, instilling ethical behaviors to

avoid corruption, strengthening operation of regulation and procedure and others were also

responded to by more than 60% of the total respondents.

5.2 Conclusions

The researcher concludes that there is a relationship between tendering process ;rnd service

delivery based on views obtained from the respondents of Buyende local government in eastern

Uganda. The researcher found that there were challenges encountered and responde.1ts% of the

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respondents strongly agreed with limited funding, and other challenges such as Poor and

unskilled suppliers, fraud and extortion, fraud and extortion, collusion of bids but these could be

solved by implementing the mechanisms as were suggested by the researcher and agreed to by

the respondents. The roles played by tendering process on service delivery were found to be

eminent. These included timely delivery and accessibility had 75% of the respondents who

strongly agreed, 10% agreed and other roles were found to be stimulated by tendering process.

Therefore, Buyende district local government just requires implementing proper strategies m

order to improve its capacity to deliver services that suite stakeholders interests.

5.3 Recommendations

Buyende district should ensure that tendering arrangements can operate successfully and the

participating procuring entities must have ownership and commitment to the process so as to

produce positive results. The procurement department of the district should be inv,Jlved in all

contracting activities from the initial stage to the point when it is accomplished.

The government should ensure that procurement officers are well trained and are professionally

qualified staff for public sector procurement. This will help to maximize the use of existing

1:esources, possibly by developing a specialized multi-disciplinary contracting teatT. that could

provide professional advice and assistance to individual purchasing entities for major contracts.

This will also help to solve the problem of fraud and extortion which had 75% of the total

respondents who strongly agreed and agreed.

Development of ma·nagement information system and advertising tenders publically which had

77.5% of the total respondents who strongly agreed and agreed were the majority and th is was

found to be necessary for better service delivery in Buyende district.

The public service commission should increase its capacity m staffing especially the

procurement department that was deemed to be a key area where corruption can easi ly be dealt

with and other key areas to carry out its functions that may help to improve service delivery.

Some capacity issues are in terms of systems and processes which could improve the mo_nitoring

of procurement processes within the district.

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5.4 Areas for Further Research

The following need to be conducted as areas of further researcher to supplement on the study

findings.

• Tendering and organizational performance

• Bid evaluation and tendering process

• Tendering and accountability of purchasing entities

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REFERENCES

Africa (2003). Public Sector Management Reforms in Africa. Addis Ababa, Ethiop:a: Author.

Agaba, E & Shipman, N. (2007). "Public Procurement Reform in Developing Countries: The

Ugandan Experience." Boca Raton, FL: Academics Press.

AShah, S. (2005). Decentralization and Service Delivery (World Bank Policy Research Paper

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APPENDICES

Questionnaire for employees of Buyende district (Procurement and procurement related)

Dear respondent,

I am a student of Kampala International University conducting a research on Tendedng process

and service delivery in Buyende district local government eastern Uganda, as part of the

requirement for the award of Bachelors degree of supplies and procurement management.

Your response to the questions below wi ll be treated with utmost confidentiality and all

information be used for only this purpose.

PART A: Respondents Bio-data

1. Gender

Male Female

2. Age

18-25 C:=J 25-35 C:=J 35-5 50 and above D

3. Level of Education

Certificate level c=J Diploma c=i Degree c=i Masters c=i Others c=i

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PART B: The role of tendering process in service delivery

4. Does tendering have an effect on service delivery in your district?

Yes D

No D

If yes, does it affects service delivery through the following ways?

( I-Strongly Agree, 2-Agree, 3-Disagree, 4-Strongly disagree)

Tick the appropriate box.

Role of tendering process in service delivery 1 2 3 4

Improved compliance

Timely delivery and accessibility

Provision of quality services

Reduction of wastage and appropriate allocation of services

Smooth or un interrupted operation

Checked service quality

Enhanced level of accountability

Effective resource utilization

If there is any other ways in which tendering process contribute service delivery in Buyende

district, please mention them.

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PART B: Challenges encountered in the tendering process during the provision of services

5. Are there challenges to the tendering process in Buyende district lo~al government

Yes D No D

If yes is the following are the challenges faced

(1-Strongly Agree, 2-Agree, 3-Disagree, 4-Strongly disagree)

Tick the appropriate box.

Challenges 1 2 3 4

Corruption '

Conflict of interest i

Collusion of bids I

!

Fraud and extortion I

I

Limited compliance from providers

Limited funding

Poor and unskilled suppliers

'

Ifthere are other challenges encountered in tendering, please mention them.

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PART C: Mechanisms for improving tendering process for enhanced service delivery

6. What are some of the mechanisms to control the challenges encountered in tendering

l. Strongly agree 2. Agree 3. Disagree 4. Strongly disagree

Control mechanisms 1 2 3 4

Capacity building to enhance both suppliers and buyers

Use of laws to punish the corrupt

Staffing of procurement department -

Develop management information system

Ensure professional in put in contracting

Ethical behavior to avoid corruption

strengthen operation of regulation and procedure

Monitoring and auditing supplier compliance

Advertise tenders publically

Use of national standards to avoid counterfeits

ifthere are any other ways to control the challenges faced in tendering, please mention them

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Appendix: i Research Budget ·-

ITEM QTY UNIT COST AMOUNT

Transport 100,000=

Questionnaires development 50,000=

·-printing and binding 600pages 200 120,000=

Motivation and refreshment 100,000=

Miscellaneous 20,000 30,000=

TOTAL 400,000 /= ·-

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Appendix ii: Time Frame

DURATION (months)

ACTIVITIES Earl MAR Mid MAR Late MAR MAR APR

2015 2015 2015 2015 2015

Pilot and Study

analysis

proposal

design

-proposal

development II

Proposal

submission for

approval

Final

Dissertation

and submission 11

ll

45