Determinants of Performance of Procurement Departments in Public Entities in Tanzania

Abstract

The central focus of this study was to determine factors influencing performance of the procurement function in the Tanzanian public sector. In conjunction with this general objective, specific objectives were to evaluate the effect of legal and regulatory framework; to assess the effect of procurement professionalism; to determine the effect of private sector participation; to investigate the effect of transparency and to find out the effect of integrity on the performance of procurement departments. The research design employed was a mixed (qualitative and quantitative) design. The target population was 298 entities that were audited between the 2011/2012 – 2013/2014 FY. One hundred (100) entities constituted the sample size with 300 Questionnaire Respondents and 20 Interviewees. Data were mainly collected through self-administered questionnaires and interview guide. The questionnaires were pilot tested in 10 procuring entities. In analysing the data both descriptive and inferential analyses were applied. Inferential analysis involved running two regression models using the same predictors but with different indicators of the dependent variable. The objective was to establish the indicators that best measure the performance of the procurement function - which was the dependent variable. Three theories underpinning public procurement were adopted in this study. These are Institutional Theory, Principal –Agent Theory and Legitimacy Theory. The findings indicate that performance of public procurement in Tanzania is influenced by the existing legal framework, procurement professionalism, private sector participation and the level of integrity in the procurement process. Furthermore, the study has established that performance of procurement in the public sector is best and appropriately measured in terms of achievements of the procurement objectives measured in relation to timely delivery, best quality and best price/cost of the procured goods, services and works. However, the study has revealed that late payments to suppliers, political interferences and inflated prices quoted by GPSA shortlisted bidders, are the common hindrances to the achievement of procurement objectives in most of the procuring entities. Several recommendations have been made with a view to improving performance of the procurement function in public entities in Tanzania. It is recommended that the PPRA should review the current checklist for monitoring and evaluating the procurement performance in the entities. Specifically, the checklist should focus on attainment of the procurement objectives as opposed to the current emphasis on compliance with rules and regulations. Furthermore, the procurement policy division responsible for procurement cadres in the country in collaboration with the procurement professional body should foster capacity building among procurement professionals as a way of maintaining and enhancing procurement professionalism within the country’s procurement system.