Abstract:
This study titled “The determinants of Value for Money in Procurement of works in Tanzania’s LGAs” was carried out at Ilala, Kinondoni and Kigamboni Municipal Councils in Dar es Salaam Region. A review of the literature indicated that for several times LGAs in Tanzania has failed to attain VfM when performing procurement activities. In relation to this, this study sought to establish the effect of STDs, the impact of ICT in procurement activities, relationship management/collaboration and institutional factors as the determinants of VfM in the procurement of works in Tanzania‟s LGAs.
To achieve these objectives, this study employed the explanatory method to explain the relationship between variables. The study collected both primary and secondary data. A closed-ended questionnaire was used to collect primary data while secondary data was collected from published journals, reports and books. The study constituted fifty-nine units sample which comprised members from PMU, engineering department, TB, accounts section, audit section, and ICT department. The study used a quantitative method of data collection. In the data presentation and analysis descriptive analysis with the help of statistical package for social sciences (SPSS) version, 23.0 was used.
Factor analysis and regression analysis was employed for data reduction and assessing the relationship between independent and dependent variables. The study found a significant relationship between the language used in the STDs, cost of preparing STDs, ICT competence, trust, commitment, respect, political interference and community participation on VfM. However, the study failed to establish a significant relationship between the contents of STDs and ICT knowledge on VfM.
The study, therefore, recommends that in order for the LGAs and other public institutions to attain VfM in procurement activities they should make sure that they use simple and clear language to prepare STDs, also competent personnel should be used to prepare STDs in order to minimize unnecessary cost. Also, the government should provide ICT knowledge building capacity to LGAs staff. Furthermore, first priorities should be given to the local contractors in works contract activities as the study revealed that it is easier to enter into relational governance with the local contractors rather than foreigners. Lastly, procurement activities should be conducted in accordance with the existing rules and procedures, and that the function should be free from political or other interferences.
