AN ASSESSMENT OF THE EFFECTS OF PUBLIC PROCUREMENT POLICY ON THEEFFICIENCY OF PROCUREMENT IN PUBLIC INSTITUTIONS, A CASE STUDY OFKISII POLYTECHNIC

LEWIS KEMONDE

A RESEARCH PROJECT SUBMITTED TO THE BOARD OF UNDERGRADUATESTUDIES IN PARTIAL FULFILLMENMT FOR THE REQUIREMENT OF THEAWARD OF A DIPLOMA IN PURCHASING AND SUPPLIES MANAGEMENTSCHOOL OF BUSINESS AND ECONOMICS ,KISII UNIVERSITY

NOVEMBER, 2017

DECLARATION AND RECOMMENDATIONDECLARATION

I deciare that this Research Project is a presentation of my originai work and it has never

been presented in any other university or college for any academie purposes.

Signature…………………………………….Date ………………………………

LEWIS KEMONDE

CB05/10648/15

RECOMMENDATION

This Research Project has been submitted for examination with our approval as the candidatesupervisor.

Signature…………………………………….Date ………………………………

Mr. Justine Onyoni

Assistant Lecturer

Kisii University

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DEDICATIONThis Research Project is dedicated to my family members Mr Andrew Maina and Mrs Margret

Maina for their support and encouragement throughout: my friends and colleagues, I appreciate

them for their guidance and support: To God almighty, thank you.

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ACKNOWLEDGEMENTI thank God for his Messing and protecrion throughout this project. I wish to acknowledge my

lectures at Kisii Universrty and especially my supervisor Mr. Justin Onyoni for his effective

guidance and support throughout the Research Project. I also wish to thank my friends Alex

Moseti and Bernard Mekenye for their support during the collection of data.

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ABSTRACTThe purpose of this Research Project was to assess the effect procurement policy on the

efficiency of procurement in public mstitations the study was guided by the following objectives

: to determine the effect of procuring units in providing procurement policy, to assess

theaccountability in proper management and monitoring and to establish theinfluence of

economy on promoting competition. The study was of great significant to managers as decision

makers to improve on public procurement procedures as well as on the entire current weakness

in supply chain by indentifying the major reasons as to why the public procurement should know

move to attain more efficiency like the private sector. The study was in Kisii national polytechnic

western part of Kenya, Kisii Counry. The researcher assumed that the questionnaire was

comptehended by the respondents and they gave relevant data, This research proposal adopted

descriptive research design and the target population was 300 comprising and the sample size

was 30% which added up 90 respondents. The study adopted stratified random sampling and the

researcher subjected the project for scrutiny by the university supervisors and other experts for

validation purposes the researcher checked and conformed the reüabüity of the research

questions through piloting study data was analysed by the use of graphs and charts. Undertake

market survey and maintenance of a periodically updated price database, ensuring adherence to

all extant Public Sector Procurement procedures and regulations, Actively soliciting competitive

solicitations and quotes from minority business enterprises in accordance with Department

policy are the procuring units that affect in providing guidelines on procurement policy.

Available information shows that, in most developing countries, implementation capabilities do

not match up the demands of a modern competition system. Concern about the mismatch

between institutional capabilities and the demands of an effective competition policy are part of a

wider challenge that developing countries face in introducing economic and legal reforms.

These include the protection of property rights, setting up a system of enforcing contracts,

creating legal frameworks for the establishment and dissolution of business entities and

enhancing financial systems in Public Institutions.

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ACRONYMSPPOA -Public Procurement Oversight Authority

JK IA- Jomo Kenyatta International Airport

SMEV’s - Small and Medium Enterprises

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Table of ContentsDECLARATION AND RECOMMENDATION.............................................................................ii

DEDICATION................................................................................................................................iii

ACKNOWLEDGEMENT..............................................................................................................iv

ABSTRACT....................................................................................................................................v

ACRONYMS..................................................................................................................................vi

LIST OF TABLES...........................................................................................................................x

LIST OF FIGURES.......................................................................................................................xi

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

INTRODUCTION...........................................................................................................................1

1.1 Background of the Study...........................................................................................................1

1.2 Statement of the Problem...........................................................................................................3

1.3 Objectives of the Study.........................................................................................................4

1.3.1 General Objective..........................................................................................................4

1.3.2 Specific Objectives.............................................................................................................4

1.4 Research Questions....................................................................................................................4

1.5 Significance of the study...........................................................................................................5

1.6 Scope and justification of the study...........................................................................................5

1.7 Assumptiou of the study.......................................................................................................5

1.8 Limitatïon of the study..........................................................................................................5

1.9 Operatiottaf Definitions of Terms..............................................................................................6

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

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

2.1 Introduction................................................................................................................................7

2.2 Theoretical Literature................................................................................................................7

2.2.1 Legitimacy Theory..............................................................................................................7

2.2.2 Principal-Agency Theory....................................................................................................8

2.2.3 The Institutional Theory....................................................................................................9

2.3 Empirical Literature Review..................................................................................................11

2.3.1 Procuring units in providing guidelines on procurement policy......................................11

2.3.2 Accountability in proper management and monitoring of procurement Policy............14

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2.3.3 Economy in promoting competition in procurement Policy............................................15

2.4 Procurement efficiency............................................................................................................17

2.5 Conceptual Framework...........................................................................................................19

CHAPTER THREE.......................................................................................................................21

RESEARCH METHODOLOGY..................................................................................................21

3.1 Research Design......................................................................................................................21

3.2 Study Area...............................................................................................................................21

3.3 Study Population......................................................................................................................21

3.4 Sample Size and procedure.....................................................................................................21

3.5 Data Collection Methods.........................................................................................................22

3.6 Instrumentation........................................................................................................................22

3.6.1 Validity of the Research Instrument..................................................................................22

3.6.2 Reliability of the Research Instrument.............................................................................22

3.7 Data Analysis Methods and Presentation...............................................................................22

CHAPTER FOUR.........................................................................................................................23

DATA ANALYSIS AND DISCUSSION.......................................................................................23

4.1 Response Rate..........................................................................................................................23

4.2 General Information.................................................................................................................23

4.2.1 Gender analysis................................................................................................................23

4.2.2 Age Distribution................................................................................................................24

4.2.3 Working experience..........................................................................................................24

4.2.4 Educational Level.............................................................................................................25

4.3 Procuring units in providing guidelines on procurement policy..........................................26

4.4 Accountability in proper management and monitoring on procurement policy....................27

4.4 Influence of economy on promoting competition on government.....................................28

4.6 Discussions..............................................................................................................................28

4.6.1 Influence of economy on promoting competition on government policy on procurement efficiency...................................................................................................................................28

4.6.2 Effect of procuring units in providing guidelines on procurement policy.....................29

4.6.3 Accountability in proper management and monitoring on procurement policy............29

CHAPTER FIVE...........................................................................................................................30

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SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION.............................30

5.1 Summary of Findings.............................................................................................................30

5.2 Conclusions..............................................................................................................................31

5.3 Recommendations....................................................................................................................32

5.4 Suggestions for Further Research............................................................................................32

References......................................................................................................................................33

APPENDICES...............................................................................................................................37

Appendix i: Questionnaire............................................................................................................37

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LIST OF TABLESTable 4.1 Response Rate …………………………………………………………………… 23

Table 4.2 Gender Distribution ……………………………………………………………… 23

Table 4.3: Age Categorization of Respondents …………………………………………… 24

Table 4.4 Distribution of working experience …………………………………………….. 24

Table 4.5 : Level of Education ……………………………………………………………. 25

Table 4.6 Procuring units in providing guidelines on procurement policy ……………… 26

Table 4.7 Accountability in proper management and monitoring on procurement policy …27

Table 4.8 Influence of economy on promoting competition on government ……………… 28

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LIST OF FIGURES

Figure 2.1 : Conceptual Framework …………………………………………………. 20

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CHAPTER ONE

INTRODUCTION

1.1 Background of the StudyIn today's world, the economie environment is very turbulent. The need for organizations to be

competitive in the global marketpface cannot be overststed, Firms are onder intense pressure

from consumers for goods and services that meet high service level requirements. The giobal

marketpïace is charactenzed by intense competition and the constant search for new and

innovative ways to reduce costs and improve performance, hi this search, finns' supply chains are

examined on a continual basis for opportunities to create me competitive edge required to make

businesses successful. One area that has been greatly emphasized in this regard is the function of

procurement The Oxford Dictionary describes procurement as proce&s of acquisition of the

initial raw materials, finislied products, works in progress and services and functions within and

outside a company to enhance the vaiue chain to make products and provide services to the

customers (Cox et al, 2010). Quinn (2010) defines procurement as 'all of those activities

associated with acquisition of goods, from raw materiaüs stage throuj^ï to the end products, Thïs

ineJudes sourcing and porchasing, order processing, inventory management, transportation,

warehousing, and customer service'. According to Thai (2010), public procurement refers to the

acquisition of goods and services by govenanent or public sector orgamzations and is one of the

key economie activities of govemment. The earliest public procurement otder was found in Syria

written on a red clay tablet dates from between 2400 and 2800 B.C, The purchase order was for

"50 jars of fragrant smooth oil for 600 smali weights in grain" (Coe, 2010). In addition to the

history of procurement was the emergence of me alk tede between China and a Greek colony in

800 B.C (Coe, 2010).

The rise of procurement to a key function in the private and manufacturing industry in the long

term goal of considerable attention since the 1990s, (Gadde and Hakansson, 2004), unöke in the

public sector procurement and supply chain management While the Public Contract Law Journal

dates back to 1981 and Public Procurement Law Review to 2004, both had anchorage in the legal

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and regulatory disciplines. It was noted that there was differentiation between public

procurement and private sector procurement in the last decade (Thai aai Grimm, 2001).

Accordïng to Makori (2011), public procurement systems are inherently complex and dynamic

due to the muitipiicity of objeciives they have to achieve. For instance, the main motive of public

procurement is to serve the public through a political purpose and the general well-being of the

society unlike privately fimded projects whose raison d être is the profit motive. Public service

agencies aim at making the best ase of ‘value for money’ for the members of the public this

involves client satisfaction, public interest, fair play, honesty, justice and equtty (Korosec and

Bartle, 2003). Recent studies have also pointed out the significance of moral and ethical behavior

in addiüon to techmcal and professional competencies (Schlosser, 2003). The public procurement

system in Kenya has reformed to an orderly and legally regulated system governed by the PPDA,

2005. Prior to this, in Central Government it was governed by Treasury Circulars from 1969,

then the Supplies Manual of 1978, before the promulgation of the Exchequer and Audit (Public

Procurement) Regulations, 2001, (Juma ,2009). All aforesaid reform inttiatives were geared

towards improving the public procurement system by enhancing accountability and transparency

wfth the aim of achieving value for money, and attracting investments by creating a sound

business ciimate. These reforms have ensured fairness and competition among suppliers of

goods, works and services, thereby restoring the confidenee of Kenyans in the public

procurement process while at the same time ensuring that the Government gets the best value for

its money. The PPDA, effective as of Ist January 2007, applies to all procurement of goods,

works and services, as well as me disposal of assets by public entities. Public entities are those

that procure goods, services or works utilizing public funds. As such, public entities include the

central and local governments, courts, commissions, state corporations, cooperatives, and

educational institutions such as colleges, schools and universities This Act does not directly seek

to regulate the private sector, though it does regulate its interaction with public entities, (GoK,

2011). The PPDA does not directly seek to regutele the private sector, though it regulates its

interaction with public entities.

It ensures the following issues maximize economy and efficiency, promote competition and

ensure that competitors are treated fairly, promote the integrity and feirness of procurement

procedures, increase transparency and accountability in those procedures, increase public

confidenee in the procedures, enhance the promotion of local industry and economic

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development, (Odhiambo, A,N, 2005). The PPDA sets-up the Public Procurement oversight

Authority (PPOA), whose primary role is to ensure that procurement procedures established

under the Act are adhered to. In doing this, the PPOA has to guide, set-up standards, and train

procurement entities and persons, as well as advise government on policy issues.

1.2 Statement of the ProblemThe Public procurement processes is a complex issue because of the multiple interests and

objectives it strives to achieve simultaneously coupled by the multiple regulatory policies and

bodies it has to adhere to. The major objectives public procurement include ensuring the tax

payers enjoy value for money, achievmg efficiency and effectiveness, ensuring fair competition

amongst the suppliers, ensuring accountabüity and transpareney, ethics etc (Commonwealth

Procurement Guidelines, 2005). This is a stark contrast ftom the private sector whose raison de

etre is the profit motive. In most countries in the world over, public procurement is guided by the

public procurement laws and guidelines. In Kenya, public procurement has important economic

and political) implications. Ensuring that the process is economical and efficient is crucial. This

requires in part that the whole process is well understood by all the stakeholders including the

government, the procuring entities, the business comrminity/suppliers, professional associations,

academic entities and the general public. Unfortunately, for most developing countries, this is not

the case. Although several developing countries have taken steps to reform their public

procurement systems, the process is still grounded m secrecy, inefficiency, and corruption and

undercutting of costs leading to wastage of huge amounts resources. Some of the major scandals

include the sale of the Laico Regency hotel, the Triton saga, the irregular sale of KCC and Kenya

Seed Company, the JKIA airport expansion project, Anglo leasing just but to mention a few.

According to Odbiambo and Kamau (2005) the bulk of corrupt practices in Kenya have occurred

in public procurement. The explanation for this state of affairs is to be found in the political

dynamics of the state and its role in the economy. Corruption in public procurement in Kenya has

been fecilitated by opaque and unaccountable regulations.

Common corrupt practices in public procurement thus included public officers often under the

influenee of powerful politicians and businessmen only inviting prefered firms, favoring certain

firms at the short-listing stage, designing tender documents to favor particular firms and

releasing confidential information, From the above studies it is evident that there has not been a

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study tbat links the effeets of (PPDA) on procurement in public schools in Kenya, this shows that

little research has been done on this area. This leaves a knowledge gap that has necessitated this

study since the Act was estabtished to counter some of the above mentioned problems but to date

procurement within the public sector still faces some challenges. To achieve the intended

objectives, the study will seek to answer the followmg questions: How does the Public

Procurement affect the procurement Process in schools? What are the current challenges of the

Procurement Act?

1.3 Objectives of the Study

1.3.1 General Objective The general objective of this study will be to asses at the effeets of Public procurement policy on

the efficiency of procurement in public institutions. A survey of public institution in Kisii

County.

1.3.2 Specific Objectivesi. To establish the influence of economy in promoting competition in procurement policy

in Kisii Polytechnic .

ii. To determine the effect of procuring units in providing guidelines in procurement policy

in Kisii Polytechnic .

iii. To assess the accountability in proper management and monitoring of procurement

policy in Kisii Polytechnic.

1.4 Research Questions i. What influence of economy promotes competition in procurement in Kisii

Polytechnic ?

ii. What are the effects of procuring units in providing guidelines on procurement

policy on government in Kisii Polytechnic?

iii. What is the accountability of proper management and monitoring of procurement

policy in Kisii Polytechnic?

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1.5 Significance of the studyStudy findings are to enable orgamzaüons to focus on higher level and long term strategy issues.

The findings of this study will also add new knowledge about public procurement in Kenya that

will serve as a base for further research. The results of this study will be of great significance to

the public organizations of Kenya. The govemment operates essential businesses through its

public organization, as a result of this change will be evident hence the study is of great

signficance as they will support the appropriate policies to support the firms. The results will also

directly point to the development and management of organizational procurement departments

and strategies issues in management of purchasing authority. This study will also help managers

as the decision makers to improve on public procurement procedures as well as on the current

weakness in supply chains by identifying the major reasons as to why the public procurement

should now move to attain more efficiency like the private sector.

1.6 Scope and justification of the studyFor the purposes of this study, the population of interest will in kisii polytechnic western part of

Kenya Kisii county.

1.7 Assumptiou of the studyThe organization culture remains unchanged, the operations of the schools too as usual and the

employees to be on duty of the company policies to remain the same.

1.8 Limitatïon of the studySince a questionnaire will be used in the study, the result will not be generalized to what happens

in other institutions. There is likelihood of redundancy in response because the respondents may

think that they are under investigation. This may cause some employees to retain the

questionnaire.

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1.9 Operatiottaf Definitions of TermsProcurement : is the process finding terms, agreeing terms and acquiring goods

and or works from an extemal source, often via tendering or

competitive bidding process.

Policy : It’s a statement of intent, and is implemented as a procedure or

protocol.

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CHAPTER TWO

LITERATURE REVIEW

2.1 IntroductionIn order to carry out a literature review, one would initially need to search for the relevant

literature, the aim of which is to identify as many items of relevant secondary data as possible

such as books, journal articles, conference papers, reports, archives and published statistics

(Collis & Hussey, 2003). This chapter presents a review of the literature related to the purpose of

the study and organized according to the specific objectives of the study. The review will be

undertaken in order to eliminate duplication of what has been done and provide a clear

understanding of existing knowledge base in the problem area. The literature review will be

based on authoritative, recent and original sources such as journals, books and dissertations.

2.2 Theoretical Literature

2.2.1 Legitimacy Theory The Legitimacy Theory states that the organization has the mandate to state its activities to the

stakeholders, more specifically to the public and state the benefits the society will get from it

Wilmshurst & Frost, (2000). A state that is there when an organization’s value system is in line

with the value system of the society that the organization exists Lindblom, (2011). Legitimacy is

a perception that the acts of the organization are acceptable in the constructed system of

behaviour in the society that it exists in Suchman, (2010). Legitimacy Theory therefore brings in

good understanding in the government procurement systems. The concept of legitimacy strongly

suggests that the social contract which is between the government and the public can be

eliminated. In government procurement context, there are issues (such as cronyism and

corruption) that could endanger the legitimacy practice. In accordance to the Legitimacy Theory,

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government officers’ choices of legitimizing implementation strategies are focused on the

interpretation of the local authority or department involved, and different government officers

will likely have different ideas of what is expected of them from the public and whether the

department or agency or local authority is viewed by the society as complying with the

expectations that is expected from them Deegan et al.,(2002). The legitimacy theory argues that

officers make the disclosure practice as a way of building a good reputation among the

stakeholders and the society at large Magnes, (2006).

2.2.2 Principal-Agency Theory The Principal-Agency Theory,is the underpinning theory used to establish the framework for this

study. The Principal-Agent Theory is an agency model developed by economists that deals with

situations in which the principal is in position to induce the agent, to perform some task in the

principal’s interest, but not necessarily the agent’s (Health & Norman, 2004). Several studies

(Eisenhardt 2010; Bergen et al., (2005); and Rokkan & Buvik (2003) have contributed to the

literature on principal agent theory. All these contributions have one main theme which is the

relationship between a principal and an agent. The Theory concerns with the arrangement that

exists when one person or entity acts on behalf of another. The principals contract with the agent

to perform some services on the principal’s behalf. These contracts require the agent to exert

effort and make decisions, shareholders of a company elect management to act on their behalf,

and investors choose fund managers to manage their assets. That is the management make

operational decisions on behalf of the company shareholders for instance maximization of

revenues and minimization of costs among other decisions. With this relationship, the principal

engages the agent who acts and makes decisions on behalf of the principal Bergen et al., (2005).

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This relationship works well when the agent is an expert at making the necessary decisions, but

does not work well when the interests of the principal and agent differ substantially.

In general, a contract is used to specify the terms of a principal – agent relationship. According to

Eisenhardt (2010), relationship in which one party delegates work or tasks to another party who

performs that work. Agency theory describes this type of relationship using the metaphor of a

contract Jensen & Meckling, (2005).Agency relationships are enacted in a broader social context

for the adoption of policies about aligning incentives in order to discourage self-interested

behaviour by managers and reducing agency costs. A number of studies have shown that

procurement contributes about 60%-70% of an organization’s expenditures. Following the

operational nature of procurement expenditures, decisions must be taken by the organization’s

management on behalf of the company owners under the power entrusted to them through their

employment contracts. The theory also answers two specific problems that is, the goals of the

principal and agents are not in conflict and that the principal and agent reconcile different

tolerances for risk. The principals and agents seek to maximize their utility from the same

organizations.

According to Zuzana (2012) , the shareholders seek to maximize their wealth in form of profits

or dividends made by the company, management too seeks to maximize their utility by way of

earnings. Also, because of the different roles of these two parties in the organization, the risk

tolerance levels differ. As the shareholders’ risk appetite levels are normally low because of the

need to protect the value of their wealth, management normally tolerate higher risk; these are

normally reconciled in order for the company to operate well.

2.2.3 The Institutional Theory Institutional theory describes the effects of external institutional pressures on organizations and

defines institutions as regulatory structures, government agencies, laws, courts, and professions,

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as well as interest groups and public opinion Lowell, (2007). The rules and norms set out by the

institutions in an environment are endorsed by various actors. When speaking of actors and

institutional environment in this research project, reference is made to the norms represented by

the actors in the environment and the pressure that these norms exert on other actors in the

environment. A strength attributed to institutional theory is its ability to explain non-choice

behaviour of organizations how they conform to norms without questioning them and

undertaking public function Lowell, (2009).

According to Scott(2003),institutions are composed of cultural-cognitive and regulative elements

that together with associated activities and resources give meaning to life. The author explains

the three pillars of institutions as regulatory normative and cultural cognitive. The regulatory

pillar emphasizes the use of rules, laws and sanctions as enforcement mechanism with emphasis

on compliance. The normative pillar refers to norms-how things should be done and the values

preferred desired. The cultural pillar rests on shared understanding like common beliefs,

symbols, shared understanding.

The PPDA (2005) requires that proper maintenance and keeping of records be implemented in all

public procuring entities hence need to have policies, norms and rules to the effect, public

procuring entities are guided by rules and regulations like the policies to be used in

implementing the act as well as the regulations hence policies on records management.

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2.3 Empirical Literature Review

2.3.1 Procuring units in providing guidelines on procurement policyNzai, and Chitere, (2006 states that the public procurement process has been known to engage a

large amount of public funds which are sourced from different sources including taxes, grants

from partners and world bank loans meant for certain government projects. Accountability and

transparency are therefore very necessary in this part. Governments around the world may

define capital in different ways. Capital spending is generally about physical assets with a useful

life of more than one year. Capital improvements or the rehabilitation of physical assets that

enhance the useful life of the asset. According to Orodho,2003) the public procurement process

has been known to engage a large amount of public funds which are sourced from different

sources including taxes grants from partners and world bank loans meant for certain government

projects. Accountability and transparency are therefore very necessary in this part. Project

bankability,viability and access to funding are the most common challenges facing public

procurement department. In the Kenyan context various development projects proposed by the

different ministries undergo major review and scrutiny to determine their viability and

importance due to the limited capital availability. Sectors with the highest budget allocations

mostly are transport, energy and health while the other ministries have to cope with limited

capital funds allocated to their procurement departments which have a negative effect to their

performance Jodie,( 2004).

According to Patricia, Dale, and Michael,(2012). In order to address this issue, African countries

must overcome the obstacles of inadequate funding by engaging in Public Private Partnership

(PPP) to benefit from private funding. However, weak project planning in the developing

countries, characterized by limited capacity to identify technically feasible and economically

viable programmers and projects, remains among the greatest challenges to securing private

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funding. Many countries lack capacity and skills to prepare project feasibilities and take projects

through to procurement. Polychronakis,(2011) states that Lack of transparency and sound

governance practices, coupled with protracted procurement processes, reduce investor appetite.

Few African countries have a viable structured PPP programme that supports both a structured

process and a well-regulated system. This is necessary to provide more certainty and reduce risks

for long-term investors. Funding models are gradually changing in Africa, in Kenya the

government is engaging in strategic partnerships with private investors to facilitate developments

in the transport and education sectors which has increased procurement performance in this

ministry.

According to Turban and Vie, (2010), carrying out procurement efficiently under bank financed

projects such as the central bank of Kenya is critical to good project implementation, to the

attainment of the projects and to their sustainability, project teams are required as an integral part

of project preparation and appraisal, to make an assessment of the capacity of the project

implementation agency or project implementation unit to administer procurement , Prier, Mcue

and Bevis, (2008).

According to Taylor,(1995) the capacity review includes an assessment of the capacity of the

agency to carry out the different phases of procurement. According to Venkatesh (2000), a key

aspect of procurement, the analysis of risks in the procurement process should include the risks

in all areas covered by the assessment and is closely related to the transparency and predictability

of the agency’s implementation of the procurement process. Raymond,(2008) argues that the

review should look at the record of the ministries in handling procurement in general and bank

financed procurement in particular. A key input in this review is the opinion and perception of

private sectors parties, especially consultants, supplies and contractors working for the agency,

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both national and foreign. Key actors in the private sector business community dealing with the

institution should culminate with a rating of the procurement risks as high, average, or low and is

a key in the determination of the supervision approach to be recommended.

Murray,(2009) states that Moreover, different ministries may present weaknesses in the same

areas but with varying degrees of severity. Only those showing good or better ratings in all areas

should be rated as low risk. According to McKechnie,(2011) the estimations of ministries

procurement in most countries in Africa, where Kenya is now an exception, provide a number of

conceptual as well as technical problems. However, it is extended in some countries to include

government owned enterprises servicing the public.Technically, problems arise due to lack of

data and sometimes the manner in which it is kept and recorded.

Matthews,(2005) argues that the authority in charge of ministries procurement does not keep

ministry procurement data in Kenya. This calls for decentralization system of data processing

and storage but with accountability systems. In the absence of procurement information,

ministries procurement can be estimated using public expenditures figures. In principle,

government expenditure need to be netted out of these figures as they are not contestable and

therefore do not qualify as public procurement. These included expenditure on social security

pension transfers interests on public debt, salaries of public sector employees, purchase of

military materials and subsidies. In the recent past ministries performance had been characterized

with laxity, corrupt practices. Lack of transparency, lack of efficiency and un effective in services

delivery to the public, private sector, political class and development partners had lost confidence

in the performance of the public sector.

Rendon, and Snider, (2010) says that this led to an outcry among all these parties for serious and

comprehensive reforms in the public sector. One of the areas in which reforms was constantly

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agitated was ministry procurement process. Some of the factors which triggered public

procurement reforms are public outcry on the procurement of public materials and services,

increase in corruption practices or unethical practices in public procurement, delay by buying

department to provided items and services on time, increase in cost of procurement caused by

obsolescence of the purchasing items and exaggerated costs of purchased costs of purchased

items. This public outcry led the government to enact the public procurement and disposal act

and regulations.The purpose of the legislation of the act is to promote transparency,

accountability, efficiency, effectiveness and cost effective measures of public sector performance

thereby ensuring that quality and value for money service delivery is made to the public.The

World Bank has its own set of procurement guidelines governing the procurement of goods and

works under contracts financed by the bank in its member countries.

The four considerations that guide the bank procurement guidelines are the need for economy

and efficiency, giving eligible bidders an equal opportunity to compete for banks financed

contracts. The underlying theme common to procurement laws in general is the need to promote

economy and efficiency as well as appropriate standards of transparency and accountability,

while curbing abuse Lewa,(2006)

2.3.2 Accountability in proper management and monitoring of procurement Policy According to Van Weele(2006), purchasing performance is considered to be the result of the

elements effectiveness and purchasing efficiencies. Performance provides the basis for an

organisation to assess how well it is progressing towards its predetermined objectives, identifies

areas of strengths and weaknesses and decides on future initiatives with the goal of how

performance improvements.

According to Batenburg & Versendaal, (2006), the cost of the procurement process goes directly

to the bottom line besides missing out on substantial savings from better supplier agreements, a

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sub-optimum Strategic Procurement process wastes human resources throughout the

organization, from the Procurement team to Accounts Payable to operating departments. Time

spent maintaining redundant data, running sourcing events the hard way, answering supplier

inquiries, and chasing all types of information. The cost of this wasted resource directly reduces

profitability. In addition, organisations have concentrated on costs or savings as the sole

indicator or measure of performance. It is as if the purchasing function is established to focus on

minimizing costs while maximizing efficiency. Financial measures ignore market dynamics and

increased complexity in acquisition of goods and services for public entities Lardenoije,(2005).

With recent developments in purchasing, it is significant that what is measured is not only

important to the organisation but should also cover all core areas and activities of procurement

Department of Public Works, Queensland Government, (2006).

2.3.3 Economy in promoting competition in procurement Policy The government of Kenya has introduced regulations governing the public procurement policy.

The policies are relevant for all public institution and were introduced as part of reforms to

enhance the procurement process in the government as well as reduce inefficiencies and losses of

public funds. This is in line with one of the key promises of the Jubilee government to give the

youth, persons with disability and women at least 30 percent of all supply contracts to the

government. Jodie, (2004)

Lewa, (2010) argues that the significance of these regulations is that the National Treasury and

all the Treasuries in the 47 county governments shall be required to register and maintain a

database for all Small or Micro-Enterprises (SME) or disadvantaged groups that wish to

participate in public procurement. The regulations also seek to favor local businesses by granting

exclusive preference to local contractors who supply motor vehicles, electrical goods, furniture

and other items which are fully assembled or manufactured in Kenya. Road works and electrical

15

installations of below Sh1 billion, other public works of below Kshs500 million and supply of

goods and services of below Kshs100 million and Kshs50 million respectively are now

exclusively reserved for Kenyans. The government has reformed to ensure that the individual

involved in the procurement process are adequately trained and that procurement structures are

in place so that the process is competitive, effective and efficient. Public procurement

departments face the challenge of achieving efficiency while containing their own function's

operating costs. A common approach to achieve these goals is to revisit the procurement

organization structure. By restructuring staffing models, reporting relationships, productivity

measures, and even the scope of the function, procurement heads aim to coax higher levels of

performance from their function without increasing resource commitment, Lysons, (2000).

Procurement structures can be divided into centralized, decentralized and hybrid structures. The

ministry departments in Kenya have centralized or hybrid structure which combines key features

of both centralized and decentralized structures. According to Akech (2005),despite their

growing prevalence, center-led procurement departments are being out-performed by their

centralized and decentralized counterparts in the county government departments, suggesting a

false compromise in the center-led structure. Center-led procurement structure slag behind

centralized and decentralized models across a range of procurement performance indicators-cost

savings, functional costs, and spend coverage and compliance. In theory, hybrid structures

capture the benefits of both pure form models, balancing top-down strategy development with

increased business alignment and more effective execution. In practice, however, the greater

complexity of hybrid structures often results in poorly defined roles and responsibilities, unclear

decision rights and coordination difficulties. To avoid these pitfalls, procurement executives in

center-led model must carefully define how decisions will be made and conflicts resolved,

16

striving to enfranchise all stakeholders in the process. Ideally, decisions should be grounded in

economic and financial principles, to eliminate as much of the organizational "politics" as

possible Jodie, (2004)

2.4 Procurement efficiency

According to Snider, (2003) the life of a procurement professional is a busy one. After all, you

are the one working with several departments on multiple projects at one time. You are also the

one to ensure that all company purchases are not only made on time, but also with the best

possible terms and price. In order to do that, you have to focus on quality, quantity, price,

availability, vendors, service options, and delivery methods. In other words, your company

couldn’t run without you. Suchman,(2010) argues that it’s wise to improve your efficiency so

you can become a super star. Muge,(2009) states that there are efficiency practices that can

easily be applied to your procurement tasks to make them more efficient.

Muge,(2009) further argues, for decades procurement performance has been attracting great

attention from practitioners, academicians and researchers due to poor performance resulting

from non adherence to proper processes and procedures. This paper aims at identifying financial

and non financial measures that can contribute to improved performance of the procurement

function. Literature suggests that procurement efficiency and procurement effectiveness of the

purchasing function are measures of procurement performance. A survey instrument was

developed and administered to a public entity in Uganda with a view to establish the importance

of financial and non financial measures in the performance of the procurement function.

17

According to Vogel,(2009), while it may be tempting to do the job on your own terms, it’s not the

most efficient way to handle things. Instead, if you invite stakeholders from various departments

to give you input about their needs and the vendors they want to use, it will go a long way in

helping you efficiently accomplish your goals and complete your projects. For example, if you

insist on using a supplier, but the department head doesn’t like that supplier’s quality of product,

the strength of your project will be weakened.

Rokah,(2003) states that If you are in procurement, it’s a safe bet that you’ve got some killer

analytical skills. After all if you are responsible for planning and executing projects, vetting

multiple vendors, analyzing bids and negotiating the best possible deals, you’ve got a good head

on your shoulders.. For instance, you’ll need to have a thorough understanding of all types of

quantitative data in order to make the best financial decisions for your company.

Zuzana,(2012) says that, in many lines of business a good negotiator is one who drives a hard

bargain and shows little mercy for the opponent, but procurement professionals don’t have that

option because they have to develop good relationships with their opponents in order to build a

reputation so other vendors will want to work with them. That means you must walk a fine line.

You obviously want to make the best deal for your company, but at the same time, you don’t

want to alienate suppliers during the negotiation process, In today’s world of procurement,

professionals have to look beyond their borders in order to secure the best deal for their business.

Most likely, your need for products are more complex than they were few years ago, and you

have to look to global supply chains in order to fill the needs. That means you’ll need to think

globally by developing flexible options and logistic arrangements. This is another area where

your analytical skills will come into play. Take the time to sit down at the end of each week to

18

see how well you did in each area, and then determine what should be your next goal to

becoming a procurement super star, West (2012).

2.5 Conceptual Framework A conceptual framework is a structure of concepts and or theories which are put together as a

map for the study and it shows the relationship of research variables Mugenda & Mugenda,

(2008). The conceptual framework is used to explain the relationship between the independent

variables and the dependent variable. The aspects of government policy ,capital procurement and

procurement process are the independent variables while government procurement efficiency is

the dependent variable.

19

Independent Variable

Independent Variable

Effect of Procurement Policy

Dependent Variable

Intervening variable

Figure 2.1 : Conceptual Framework

The independent variables include influence of economy in promoting competition on

procurement policy, the effect of procuring units in providing guidelines on procurement policy

and accountability in proper management and monitoring of procurement policy, the

dependent Variable is procurement Efficiency which is measured by value for money and

accountability.

20

Effect of procuring units in providing guidelines

- Regulations

- Guidelines

Procurement Efficiency

- Value for money

- Accountability

-

Accountability in proper management and monitoring

- Delivery - Receiving process

Government

Economy in promoting competition on procurement policy

- Best Prices

- Quality

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design Mugenda and Mugenda (1999) noted that a descriptive research attempts to collect data from

members of a population and describes existing phenomena by asking individuals about their

perception, attitudes, behaviour or values. Surveys enable collection of data from a sizeable

population in a highly economical way. The data obtained is standardized, to allow easy

comparison. Moreover, it explored the existing status of two or more variables at a given point in

time.

3.2 Study Area The case study of this research was based in Kisii Polytechnic Western part of Kenya Kisii

County. This was because the area was convenient for the researcher and the required

information for the study.

3.3 Study Population According to Ngechu, (2004), population is the total collection of elements with common

observable characteristics about which some inferences can be made. A large set of observations

is referred to as a population while the smaller set is called the sample. The target population

comprised 300 employees in Kisii Polytechnic .The targeted respondents was of certain

characteristics since purposive random sampling method was used during data collection.

3.4 Sample Size and procedureThe study adopted proportionate stratified sampling design ; this is any sampling method

where each element of the population has an equal chance of being selected. Mugenda and

21

Mugenda( 2008) contend that a sample size was at least 30% of the target population which was

90 employees.

3.5 Data Collection Methods This research was collected primary data using questionnaires. The questionnaires comprised of

both open and closed ended questions in line with the objectives of the study. A five point Likert

scale was used for closed ended questions. The questionnaire contained two sections each. The

first section sought to establish the respondents’ demographic data while the second section

sought to establish the respondents’ opinions on the three variables considered in this study.

3.6 Instrumentation

3.6.1 Validity of the Research Instrument Validity indicates the degree to which the instrument measures what is supposed to measure and

the ability to be used for the collection of data and obtain the required data from the field

(Omollo, 2009). The validity of the instrument will be censured by the supervisor’s expert

opinion.

3.6.2 Reliability of the Research InstrumentReliability is the degree to which research instrument yield consistent results or data after

repeated trials (Mugenda & Mugenda 1999). The reliability of the instrument will be tested using

test re-test method.

3.7 Data Analysis Methods and Presentation

Before processing the responses, data preparation was done on the completed questionnaires by

editing, coding, entering and cleaning the data. Data collected was analyzed using descriptive

statistics tabulations and bar graphs was used in the analysis. The descriptive statistical tools

helped in describing the data and determining the respondents’ degree of agreement with the

various statements under each factor. Data analysis was done using descriptive statistics and

regression analysis was analyzed and tabulated.

22

CHAPTER FOUR

DATA ANALYSIS AND DISCUSSION

4.1 Response Rate Out of the 90 questionnaires ,80 were returned to the researcher. This represents a response rate

of 89 %. Cooper and Schindler (2003) indicated that a response rate of between 30% to 80% of

the total sample size is sufficient to represent the opinion of the entire population. The 11% who

never returned the questionnaires cited busy schedules as the main reason for lacking time to fill

them.

Table 4.1 Response Rate

Respondents Frequency Percentage Responded 80 89

Not responded 10 11

Total 90 100

Source : Field Data 2017

4.2 General Information

4.2.1 Gender analysis Table 4.2Gender Distribution

Gender Frequency Percentages%Male 55 69Female 25 31Total 80 100Source: Field Data (2017)

From the above study in the table 4.1, 69% of the respondents were male and 31% of the

respondents were female. This is an indication that both genders were fairly involved in this

research .

4.2.2 Age Distribution Table 4.3: Age Categorization of Respondents

23

Age Frequency Percentages%18-25 2 226-35 60 7536-50 15 19Above 51 years 3 4Total 80 100

Source: Field Data (2017)

From table 4.2 above the age categorization of respondents were such that 18-25 years

respondents represented by (2%) in the category , 60 respondents were (75%) with the age

between 26 – 35 years were representing the category, 15 respondents (19%) were age between

36 – 50 years and 3 respondents (4 %) were age of above 51 years old and above. This means

that most of the workers working in Kisii Polytechnic were aged between 26-35 years old hence

it reveals that respondents were well distributed in terms of their age thus the study involved

respondents whose ages were well distributed across the country.

4.2.3 Working experience

Table 4.4 Distribution of working experience

Years Frequency Percentages%1-5 60 756-10 10 1411-15 6 815 yrs and above 4 5Total 80 100

Source: Field Data (2017)

The study requested the respondents to indicate their working experience. From the study

findings most of the respondents as shown by 75% indicated their working experience of 1-5

years ,14 % had an experience from 6-10 years , 8% had an experience of 11-15 years and 5 %

had an experience of 15 years and above .This is an indication that most of the respondents had

an experience of not more than five years .

24

4.2.4 Educational LevelTable 4.5 : Level of Education

Educational Level Frequency Percentages%Form four level 4 5Certificate level 6 8Diploma 50 62Degree and above 20 25Total 80 100Source: Field Data, 2017

The study also sought to establish the education level of the respondents. The findings as shown

in table 4.5 above indicate that 5 % had attained secondary school level, 8% had attained

certificate level ,62% had attained diploma and degree and above had attained 25 %. This

implies that most of the respondents were educated.

25

4.3 Procuring units in providing guidelines on procurement policy Table 4.6 Procuring units in providing guidelines on procurement policy

Effects SA

5A4

N 3

D 2

SD1

∑fi ∑fiwi ∑fiwi ∑f)

Undertake market survey and maintenance of a periodically updatedprice database

40 10 10 15 5 80 305 3.8

Procurement of goods and service in the Commission

20 40 8 2 10 80 298 3.7

Public Sector Procurement procedures and regulations

Actively soliciting competitive and quotes from minority business.

30

10

32

20

8

20

6

10

4

20

80

80

318

230

3.9

2.8

Source : Field data,( 2017)

The study established that Public sector procurement procedures and regulations had a great

mean of 3.9 and was given more weight, Undertake market survey and maintainance of

periodically updated price database had a mean of 3.8 , Procurement of goods and service in

the Commission with a mean of 3.7 and actively soliciting competitive and quotes from

minority business with a mean of 2.8 . This implies that Public sector procurement procedures

and regulations affects procurement policies on the efficiency of procurement in public

institutions .

26

4.4 Accountability in proper management and monitoring on procurement policy

Table 4.7 Accountability in proper management and monitoring on procurement policy

Effects SA5

A4

N 3

D 2

SD1

∑fi ∑fiwi ∑fiwi ∑f)

Equal opportunity 30 5 15 20 10 80 265 3.3

Procurement requirements to an enhanced supply chain performance

20 8 12 20 20 80 228 2.8

Procurement process in my organization

Transparency and accountability.

Vetting is clearlydocumented and communicated

40

60

70

10

4

2

2

6

3

8

7

2

20

3

3

80

80

80

282

351

374

3.5

4.3

4.6

Source : Field Data,( 2017)

The study determined that vetting is clearly documented and communicated had a great mean

of 4.7 and was given more weight, transparency and accountability a mean of 4.3, Procurement

process in my organization with a mean of 3.5 , Equal Opportunity with a mean of 3.3 and

Procurement requirements to an enhanced supply chain performance with a mean of 2.8. This

implies that vetting is clearly documented and communicated therefore leading to accountability

of proper management and monitoring on procurement policy in public institutions.

27

4.4 Influence of economy on promoting competition on government Table 4.8 Influence of economy on promoting competition on government

Effects SA5

A4

N 3

D 2

SD1

∑fi ∑fiwi ∑fiwi ∑f)

Competition 30 20 10 5 15 80 285 3.5

Decisions 40 10 20 5 5 80 315 3.9

Concern about the mismatch betweeninstitutional capabilities and the demands.

Functioning markets play a critical role for economic development and efficiency.

50

20

10

20

10

10

6

15

4

15

80

80

340

255

4.2

3.1

Source : Field Data, ( 2017) From the data shown on table 4.6 it showed that Concern about the mismatch between

institution capabilities and the demands with a mean of 4.2 was given more weight, decisions

with a mean of 3.9, competition with mean of 3.5 and functioning markets play a critical role

for economic development and efficiency at a rate of 3.1.This shows that functioning markets

play a critical role for economic development and efficiency in economy on promoting

competition on government policy .

4.6 Discussions

4.6.1 Influence of economy on promoting competition on government policy on procurement efficiency The study attempted to answer the question on “to what extent do economy promote competition

on government policy? In an attempt to answer the question, the researcher found out that

functioning markets play a critical role for economic development and efficiency in competition

of government policy. According to Moreno,(2005), the positive impact of competition on

economic growth can be furthered by empowered consumers, with clear synergies here between

competition and consumer policy. When consumers trust firms and markets and when consumers

actively choose and buy what is best for them, then firms will compete fairly to deliver what

consumers want, in order to gain business from each other. Results obtained in this sector tend to

28

indicate that functioning markets play a critical role of economic development in competition

on government policy.

4.6.2 Effect of procuring units in providing guidelines on procurement policyThe study attempted to answer the question on “To what effects of procuring units in providing

guidelines on procurement policy” In an attempt of answering this question , the researcher

found out that the rate of 4.0 was ensuring due process in the Procurement of goods and service

in the Commission. According to Orodho,2003) the public procurement process has been known

to engage a large amount of public funds which are sourced from different sources including

taxes grants from partners and world bank loans meant for certain government projects, by this

ensuring due process in the procurement of goods and services in the commission has affected

procuring units in providing guidelines on procurement policy.

4.6.3 Accountability in proper management and monitoring on procurement policyThe study attempted to answer the question on level of adherence to procurement policies and

procedures within the organization., in an attempt to answer the question , the researcher found

out that the key documents required for suppler selection/vetting is clearly documented and

communicated therefore leading to supplier credibility and authentication. Baily et al (2005) who

also argued that public procurement policies tend to be characterized by high levels of

bureaucracy independent of order value; poor communications and focusing on unit price rather

than long-term relations.

29

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings

The study further revealed that, ensuring due process in the Procurement of goods and service in

the Commission, undertake market survey and maintenance of a periodically updated price

database, ensuring adherence to all extant Public Sector Procurement procedures and regulations,

Actively soliciting competitive solicitations and quotes from minority business enterprises in

accordance with Department policy are the procuring units that affect in providing guidelines

on procurement policy

On Extent of adherence to procurement policies, the findings revealed that the extent of

adherence to procurement policies was positively related to procurement efficiency the primary

objectives of procurement requirements are considered in the procurement process and cycle in

the organization resulting to an enhanced supply chain performance Fairness and equal

opportunity which was upheld in the procurement process or cycle resulting to supplier

confidence. A prequalification criterion is made well known to all stakeholders thus enhancing

transparency and accountability. Key documents required for suppler selection/vetting is clearly

documented and communicated therefore leading to supplier credibility and authentication in proper

management and monitoring on procurement policy

From the findings, it was revealed that the to be effective, competition system design requires

careful pre-reform assessment of existing conditions in the country and attention to how the

country will implement the competition policy.A careful assessment of initial conditions not only

will influence decisions about the substantive content of the competition law, but also will

identify weaknesses in supporting institutions and offer plans to enhance their capability.

Decisions about the appropriate design of competition policy in developing countries must

therefore acknowledge the distinctive features of their economic, social and cultural

environment. Available information shows that, in most developing countries, implementation

capabilities do not match up the demands of a modern competition system. Concern about the

30

mismatch between institutional capabilities and the demands of an effective competition policy

are part of a wider challenge that developing countries face in introducing economic and legal

reforms. These include the protection of property rights, setting up a system of enforcing

contracts, creating legal frameworks for the establishment and dissolution of business entities

and enhancing financial systems in Public Institutions.

5.2 Conclusions

The study revealed that procuring units by ensuring due process in the Procurement of goods

and service in the Commission affect providing guidelines on procurement policy. Actively

soliciting competitive solicitations and quotes from minority business enterprises in accordance

with Department policy Undertake market survey and maintenance of a periodically updated

price database and Ensuring adherance to all extant Public Sector Procurement procedures and

regulations

Based on the study findings it can be concluded that the key documents required for supplier

selection or vetting is clearly documented and communicated therefore leading to supplier

credibility and authentication and proper management and monitoring on procurement policy .

This is supported by the results from a regression analysis conducted that indicated that there is a

relationship between procurement policies and procurement efficiency

The study established that functioning markets play a critical role for economic development and

efficiency, Concern about the mismatch between institutional capabilities and the demands of an

effective competition policy are part of a wider challenge that developing countries face in

introducing economy , Decisions about the appropriate design of competition policy in

developing countries must therefore acknowledge the distinctive features of their economy,

Competition system design requires careful pre-reform assessment of existing conditions in the

country and attention to how the country will implement the competition policy.

31

5.3 RecommendationsThe study has revealed that Public procurement policies on efficiency of procurement in

public institutions are applied to varying the institutions in Kenya in enhancing its supply chain

performance. It will be important /advisable to urge institutions in Kenya and other organization

to adopt laid down procurement policies on the efficiency of procurement in order to enhance

performance. It will also recommend that in order to boost the performance in institutions , there

is need to invest in various strategies. This therefore calls upon the management of various

institutions to come up with a procurement which outlines the strategies and guidelines in detail

and ways of operationalization. This should be done in a consultative approach so as to smoothen

the process. The findings of this study and application therefore are limited to public institutions

in Kenya. They may not be applicable directly to other organizations operating outside the

Kenyan public institutions . It is therefore important to note that they can only be used for

comparative purposes and not any direct application in another countries .Most of the

respondents agreed to participate on condition that the information will not be divulged to any

other party other than for academic purposes

only.

5.4 Suggestions for Further ResearchThe researcher recommends further research on the same topic be conducted in Public

institutions using more predictor to establish if procurement policies has an impact on the

efficiency of procurement in public institutions. Also further research on the same topic but in

other organizations other than public institutions , both locally and internationally. This will help

to establish whether the same effects will be found. This will thus assist in providing concrete

facts upon which reliable conclusions can be made.

32

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36

APPENDICES

Appendix i: Questionnaire SECTION A: BIO-DATA

Kindly answer all the questions by ticking the box that corresponds to your answer in the

question.

1. What is your Gender? Male [ ] Female [ ]

2. What is your age group?

20-29 [ ] 30-39 [ ] 40-49 [ ] 50-59 [ ] 60 and above [ ]

3. How many years have you served in this position?

Less than 1 year [ ] 1-2 years [ ] 3-years [ ] 5 years and above [ ]

4. What is your level of education?

Secondary [ ] College [ ] University [

SECTION B:

1. Effect of procuring units in providing guidelines on procurement policy

i. To what extent do you agree with the following

5- Strongly Agree 4. Agree 3. Neutral 2. Disagere 1. Strongly Disagree No Effects 5 4 3 2 11 Ensuring due process in the Procurement of goods and

service in the Commission

2Undertake market survey and maintenance of a

periodically updated price database3 Ensuring adherance to all extant Public Sector

Procurement procedures and regulations

4 Ensuring adherance to all extant Public Sector Procurement procedures and regulations

37

5 Ensuring adherance to all extant Public Sector Procurement procedures and regulations

6 Actively soliciting competitive solicitations and quotes from minority business enterprises in accordance with Department policy.

ii. Is procurement guidelines governing the procurement of goods and works under contracts

financed by the bank in its member countries?

Yes No

2. Accountability in proper management and monitoring on procurement policy

i. Please indicate the extent to which you agree with the following statements concerning the level of adherence to procurement policies and procedures within yourorganization.

Use the scale of:1= does not occur 2= small extent 3= medium extent 4= large extent 5= very large extent

No Statement 1 2 3 4 51 There is adherence to the procurement process in my

organization leading to enhanced supply chain performance.2 The primary objectives of procurement requirements are

considered in the procurement process/cycle in my organizationresulting to an enhanced supply chain performance

3 Fairness and equal opportunity is upheld in the procurementprocess/cycle resulting to supplier confidence.

4 A prequalification criterion is made well known to allstakeholders thus enhancing transparency and accountability.

5 Key documents required for suppler selection/vetting is clearlydocumented and communicated therefore leading to suppliercredibility and authentication.

6 Penalties are clearly spelt out for non-adherence toprocurement policies and procedures leading to reducedprocurement malpractices.

i. Do measuring the performance of the purchasing functional yields benefits to

organizations?

Yes No

ii. Is performance a key driver to improve quality of services?

38

Yes No

2. Influence of economy on promoting competition on government policy on

procurement efficiency

i. To what extent do you agree with the following

5- Strongly Agree 4. Agree 3. Neutral 2. Disagree 1. Strongly Disagree No Effects 5 4 3 2 11 Competition system design requires careful pre-reform

assessment of existing conditions in the country andattention to how the country will implement thecompetition policy

2 Decisions about the appropriate design of competition policy in developing countries must therefore acknowledge the distinctive features of their economy

3 Concern about the mismatch between institutional capabilities and the demands of an effective competitionpolicy are part of a wider challenge that developing countries face in introducing economy

4 Functioning markets play a critical role for economic development and efficiency

ii. Is government Policy important participant in the construction roads

Yes No

iii. Does the government policies and regulations hinder adoption of alternative

procurement methods.

Yes No

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