Determinants of value for money in the procurement of works in public sector

Abstract

The study was conducted at the Ministry of Finance (MOF), Ministry of Transport (MOT) and Ministry of Works (MOW) Headquarters of the United Republic of Tanzania in Dar es Salaam. The study sought to assess the determinants of value for money (VfM) in the procurement of works in the public sector in Tanzania. The study-specific objectives were to find out if procurement planning promotes VfM in the procurement process at MOF, MOT and MOW, to determine if record management of all procurement proceedings promotes VfM procurement at MOF, MOT and MOW and to assess how ICT usages in procurement activities promote VfM in procurement at MOF, MOT and MOW. It was hypothesized that procurement planning, record management of all procurement proceedings and ICT usages in procurement are significantly related to VfM. The researcher used a survey design that involved a sample of selected respondents from MOF, MOT and MOW. Interviews were conducted and questionnaires were issued to get primary and secondary data obtained through documentary review. Data were analyzed both quantitatively and qualitatively and the findings were drawn. It was revealed that procurement planning promoted VfM in the procurement process at MOF, MOT and MOW, record management of all procurement proceedings did not promote VfM in the procurement process at MOF, MOT and MOW and ICT usages in procurement activities promoted VfM in procurement at MOF, MOT and MOW. Based on these findings, it was revealed that procurement planning and ICT usage were significantly related to VfM in the procurement process. The study failed to establish the association between record management and VfM in the procurement process. Therefore, it was concluded that procurement planning and ICT usage in the procurement process were the major determinants of VfM in the procurement process at MOF, MOT and MOW. It was recommended that these public entities should make sure that procurement planning is used as the tool for successfully improving VfM procurement and application of e-procurement should be encouraged through Government support in all important aspects. The researcher suggested that further research could be conducted in order to assess the contribution of public-private partnerships in achieving VfM in the procurement of construction works.