Integrating contract management practices into the achievement of value for money in tanzania public procurement: Evidence from selected procuring entities in moshi municipality
| Pages | 129-149 |
| DOI | https://doi.org/10.1108/JOPP-15-02-2015-B001 |
| Published date | 01 March 2015 |
| Date | 01 March 2015 |
| Author | Alban Mchopa |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 15, ISSUE 2, 129-149 SUMMER 2015
INTEGRATING CONTRACT MANAGEMENT PRACTICES INTO THE
ACHIEVEMENT OF VALUE FOR MONEY IN TANZANIA PUBLIC
PROCUREMENT: EVIDENCE FROM SELECTED PROCURING ENTITIES
IN MOSHI MUNICIPALITY
Alban Mchopa*
ABSTRACT. Contract management is an important activity in public
procurement especially on executing development projects while aiming at
value for money. On the contrary, reports from the Public Procurement
Regulatory Authority show that funds have been wasted due to poor contract
management practices hindering value for money achievement. Hence, the
study aimed at assessing the contribution contracts management practices
towards value for money achievement. Questionnaires and Interviews were
used for data collection and findings revealed that contracts contained all
the necessary conditions, contracts practices of time management, quality
management and costs control were effective and resulted into value for
money achievement. Therefore, value for money was achieved above
average scale by considering qualitative measures and it was recommended
that more efforts are needed to enhance supervision and enforce defect
liability clause.
INTRODUCTION
Background
Public procurement often constitutes the largest domestic market
in developing countries. Depending on how it is managed, the public
procurement system can thus contribute to the economic
development of these countries (Migai, 2005). It is a comprehensive
process stretching from procurement planning, budget allocation,
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* Alban Mchopa, CPSP, MSc, is an Assistant Lecturer, Department of
Procurement and Supply Management, Moshi University College of Co-
operative and Business Studies. His teaching and research areas of interest
are in public procurement and contract management.
Copyright © 2015 by PrAcademics Press
130 MCHOPA
bids invitation, bids evaluation, contract award and management,
performance evaluation, auditing and reporting. Due to the cost
implication embodied at the different stages throughout the process
ranging from need identification up to contract management and
termination, public procurement must be built on the principle of
value for money (Mamiro, 2010).
Contract management is an important activity in public
procurement which covers all the activities performed by the
Procuring Entity and Bidders upon signing of the contract up to full
discharge of the obligations. It is often an extremely controversial
subject matter (Trepte, 2011) especially in developing countries
where “the ability to exercise discretion in the award of government
contracts has been a source of valued political patronage” and
procurement has been “a means for the illicit transfer of funds from
government to private hands” regardless of the laws (Patrick, 2005).
Regulation 121 of the Tanzania Public Procurement Act 2004
(PPA 2004) requires Procuring Entities (PEs) to be responsible for the
effective management of any procurement contract for goods,
services or works which is undertaking in accordance with the terms
of each contract. Despite the legal requirements the Controller and
Auditor General (CAG) report for the financial year 2010/2011
identified several weaknesses in contracts management and its
practices in public procurement. These included improper signing of
contracts, lack of important contract information, inadequate quality
assurance plans, liquidated damages were not applied for delayed
works and completed works were not tested to ascertain whether
they have attained the specifications required. Basing on the findings,
the CAG challenged PEs to exercise effective contract management
practices in order to avert the apparent loss of public funds.
Coverage of the Study
The study has covered issues of procurement contracts
formulation, procurement contracts implementation practices as per
terms and conditions of the contract and the contribution of contract
management practices on the achievement of value for money in
public procurement.
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