Assessing the Effectiveness of Procurement Contract Management in Achieving Value for Money in Tanzania Public Institutions

Abstract

vi ABSTRACT The aim of the study is to assess the effectiveness of procurement contracts management in public institutions in Tanzania in achieving value for money. The research adopted the simple random sampling techniques to get a sample of 52 respondents. A case study research design was used and data were collected using questionnaires, interviews and documentary review. Data analysis used descriptive statistics which were analyzed through frequencies, percentage and tables. Based on the findings of the study, despite the challenges faced on the procured contract management it was revealed that the effectiveness of contract management plays a crucial role towards achieving the value for money at Moshi Urban Water Supply and Sanitation Authority at the excellent level and emphasize on the compliance with the PPA of 2011 and its Regulations of 2013. Its effectiveness has been impacting the high level of cost control thus prevent cost overruns, performance monitoring through regularly performance review of site progress/ KPI‟s and contractual compliance audits. Also, level of transparency and fairness, equality of participation and well managed records. But on the other side the contract management hindered by presence of conflict of interest, financial incapacity, awareness of stakeholders and lack of compliance and ethical issue among some of the staff caused the achievement of value for money not to be 100% effective. The study recommended that to diminished contract management risk there should be adequate construction budget, timely issuing of information, strong supervision of projects, finalization of design and project management skills should be focus of the parties in project procurement process so as to attain value for money project with advantageous to society as may pull economic development and welfare of the society.