Abstract:
Various reports have disclosed public procurement as the most challenges to inefficiency in
operations in the government sectors, although public procurement incurs up to 20 percent of
country GDP it still considered as significant function to country’s development, many of the
government and public sector present days adopting strategic procurement as a solution to
organization cost reduction. Thus, this study intended to assess the influence of strategic
procurement to Urban water Supply and Sanitation Authorities in Tanzania, a case study at Arusha
Urban Water Supply and Sanitation Authority (AUWSA). The study had three specific objectives
namely; to determine the influence of strategic procurement execution planning to performance of
AUWSA, to determine the influence of strategic supplier relationship base to performance of
AUWSA and to examine the influence of strategic supplier selection to performance of AUWSA.
The study adopted descriptive research design whereby data was collected through surveyed
questionnaire. Data was tested by using Cronbach’s Alpha and analyzed through correlation and
regression techniques. The study revealed that, the strategic procurement has positive relation with
the performance of Arusha Urban Water Supply and Sanitation Authority. Likewise, the study
exposed capacity analysis, market analysis, adherence of Public Procurement Laws, adequacy
communication with supplier, selection supplier with experience and financial capability are factors
contributing to implementation of strategic procurement. Indeed, the study recommend to
government facilitate public procurement entities to prepare organization strategic objectives,
procuring entities to conduct market analysis quarterly, annual procurement plan to be prepared by
involving all departments and aligned with organization strategic objectives and procurement
professional to be measured by their contribution to achievement of organization objectives/
Key words: public procurement, strategic procurement and organization performance
