Factors Affecting Effectiveness Of Centralized Procurement Contract Management In The Case Of Public Procurement And Property Disposal Service

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The concept that covers “contract management” is the whole procurement cycle including planning, formation, execution, administration and close out of a contract and goes beyond the day to day “administrative” activities in the procurement cycle. The purpose of contract management is to ensure that all parties to the contract fully meet their respective obligations as efficiently and effectively as possible, delivering the business and operational outputs required from the contract and providing value for money. This study aimed to assessing factors affecting effectiveness of centralized procurement contract management in the case of public procurement and property disposal service. Due to several reasons the system of the contractual management of PPPDS seems inefficient. Among those reasons the procuring entities did not sent timely their procurement plan, lack of the disclosure of the procuring entities actual budget, high termination of employer, lack of technical evaluator and lack of adequate capacity building strategy are the major one. Judgmental sampling is used in this study to obtain the sample. It involves the selection of individuals who were the most appropriate for the study. In studying the questionnaire was administered to all the three departments which are Procurement directorate, Contract management directorate and Market price study and data directorate employees who make the sampling 100 percent of the population. The data analysis was conducted through descriptive, correlation and multiple regression statistical technique using SPSS version 20. Data which is collected through Questionnaire was analyzed by thematic analyses. The study concluded that all the staff competency, Technology Adoption, Evaluation process and Legal framework have statistically significant influence on the effectiveness of centralized procurement contract management in PPPDS. The study found that the variables considered; staff competency, Technology Adoption, Evaluation process and Legal framework 75.7% variability in contract management effectiveness; implying that the 24.3% could be due to other factors beyond the scope of this study. Based on the findings, the study observed that there was a contract termination, delay, shortage of effective and efficient management of performance, delivery and payment while procurement contracts are not well administered. So that PPPDS should have prepared strategies for to overcome the above problems.


Thesis proposal submitted to AAU FBE in partial fulfillment of the requirements for the Degree of Master of Business Administration


Centralized procurement, Contract management, Evaluation process, Legal framework, Staff competency