Tendering Process and Service Delivery in Public Sector Organizations: A Case Study of Mukono District Local Government

TABLE OF CONTENTS

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

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

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

TABLE OF CONTENTS ................................................................................................................ v

LIST OF FIGURES ....................................................................................................................... ix

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

LIST OF ACRONYMS ................................................................................................................. xi

ABSTRACT ................................................................................................................................. xii

CHAPTER ONE .............................................................................................................................. I

INTRODUCTION ........................................................................................................................... !

1.0 Overview .................................................................................................................................... !

1.1 Background to the study ............................................................................................................ 1

Procurement Policy Objectives ........................................................................................................ 3

1.2 Statement of the Problem .......................................................................................................... .4

1.3 Purpose of the study ................................................................................................................... 6

1.4 Objectives of the study .............................................................................................................. 6

1.5 Research questions ..................................................................................................................... 6

1.6 Scope of the study ...................................................................................................................... 7

I. 7 Significance of the study ........................................................................................................... 7

CHAPTER TW0 ............................................................................................................................. 9

LITERATURE REVIEW ................................................................................................................ 9

2.0 Introduction ................................................................................................................................ 9

2.1 Literature survey ........................................................................................................................ 9

2.2 Literature review ...................................................................................................................... 1 0

2.7 Receipt and Opening ofbids .................................................................................................... l8

2.8 Evaluation of bids .................................................................................................................... 18

2.9 Review of Evaluation report .................................................................................................... 19

v

2.11 Signing the contract ............................................................................................................... 20

2.12 Contract Management.. .......................................................................................................... 20

2.13 Contract Performance Evaluation .......................................................................................... 20

Services delivery ........................................................................................................................... .21

Quality of services delivery ........................................................................................................... 22

2.17.1 Indicators of Quality Service Delivery ............................................................................... 23

CHAPTER THREE ...................................................................................................................... .32

METHODOLOGY ....................................................................................................................... .32

3.0 Introduction ............................................................................................................................. .32

3 .I Research design ....................................................................................................................... 32

3.2 Study population ...................................................................................................................... 32

3.3 Sampling Techniques ............................................................................................................... 32

3.4 Sample Size ............................................................................................................................ .33

3.5 Data sources ............................................................................................................................. 34

3.6 Data collection methods ......................................................................................................... .35

3. 7 Data processing ....................................................................................................................... .35

l.8 Data analysis and compilation ................................................................................................. 35

1.9 Limitations to the study ........................................................................................................... 36

:HAPTER FOUR ......................................................................................................................... 37

'RESENTATION, DISCUSSION AND ANALYSIS OF FINDINGS ........................................ 37

·.0 Introduction ............................................................................................................................. .37

.I Response rate ........................................................................................................................... 3 7

.2 Background information ......................................................................................................... .38

.2.2 Age ofrespondents ......................................................................................................... .38

.2.3 Level of education attained ............................................................................................. 39

ource: Primary data ...................................................................................................................... 3 9

.2.4 Departments of the respondents ............................................................................................ 40

.4 Tendering process used ........................................................................................................... .41

.4.1 PDU designs tender documents ............................................................................................ 42

vi

4.4.2 Approval of tender documents and tendering method ......................................................... .43

4.4.3 Advertising of tender opportunities ..................................................................................... .43

4.4.4 Issue of tender documents ................................................................................................... .43

4.4.5 Nomination of evaluation committee (EC) .......................................................................... .43

4.4.6 Approval of evaluation committee (EC) .............................................................................. .44

4.4.7 Receipt of bids ..................................................................................................................... .44

4.4.8 Bid opening ........................................................................................................................... 44

4.4.9 Bid evaluation ...................................................................................................................... .44

4.4.1 0 Review of evaluation repOJi ............................................................................................... .45

4.4.11 Contract award ................................................................................................................... .45

4.4.12 Contract signing .................................................................................................................. 45

4.5.1 Organizational culture ......................................................................................................... .46

4.5.2 Inadequate resources ............................................................................................................ .46

4.5.3 Corruption ............................................................................................................................. 47

4.5.4 Level oftransparency ........................................................................................................... .47

4.5.5 Degree of competition ......................................................................................................... .48

4.5.6 Public support ...................................................................................................................... .48

4.5.7 Supplier performance evaluation ......................................................................................... .48

4.5.8 Independence of the procurement department ..................................................................... .48

4.5.9 Proper contract management ............................................................................................... .49

Bids are opened exactly on the day of opening ............................................................................. 50

Late bids are rejected ..................................................................................................................... 51

CHAPTER FIVE ........................................................................................................................... 54

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ........................ 54

5.0 Introduction .............................................................................................................................. 54

5.1.2 Tendering procedures and quality of service delivery .......................................................... 54

5.1.3 Factors affecting service delivery ......................................................................................... 54

5.2 Conclusion ............................................................................................................................... 55

5.3 Recommendations .................................................................................................................... 55

5.4 Suggested areas for further Research ....................................................................................... 57

ABSTRACT The study examined the role of tendering process m services delivery in public sector organizations. The study sought to achieve objectives such as; finding out the tendering procedures used and their effects in ensuring quality services delivery in Mukono; examining the factors affecting services delivery in Mukono district and finally examining how Mukono district ensures the application of fair, competitive, transparent, and nondiscriminatory and value for money procurement and disposal standards and practices. The study gathered both primary and secondary data. This involved use of various methods and instruments of data collection. The primary data was collected using self-administered questionnaires and interview guide. Secondary data was gathered using written documents such as procurement files of the entity, newsletters and many others. The study revealed that Mukono district being a public sector entity uses such tendering procedures as recommended by the PPDA Authority in the PPDA Act (2003). This include ; designing of tender documents, approval of tender document and method, advertising of tender opportunities, issue of tender document, nomination and approval of evaluation committee members, receipt and opening of bids, bids evaluation, review of evaluation report, award and signing of contract. The study recommends that the district service commission fully staff the procurement and disposal unit to the level required by the law and that that the government of Uganda increase funding for public sector organizations. Also the study recommends that Public Procurement and Disposal of Public Assets Authority (PPDA) should use its full authority, mandate and powers to xosecute and penalize the offenders who promote ineffective services delivery by not properly 'allowing the procurement procedures set in the public procurement process. Conclusively; the ;tudy indicated that proper following the tendering procedures as enshrined in the PPDA Act 2003), proper implementation of the set standards for the public procurement and disposal ystems such as practices of contract perfonnance, use of open bidding to invite bidders, ensuring imely delivery of supplies, and monitoring along with departments enhance services delivery in l!ukono district and it also indicates that trained and professional staff, involvement of stake .olders and favorable govenunent policies as well promote effective and efficient services delivery 1 the district.