Effect Of Contract Management On Procurement Performance Of Relief Operation: The Case Of Sos Children's Village Ethiopia.
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Date
2020-07
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Addis Ababa University
Abstract
Logistics and supply chain operations are the major areas of concern to humanitarian organizations
since they account to 70% of their expense, procurement is one of, if not the, essential part of logistics
and supply chain operation of humanitarian organizations since they procure a range of goods and
services to deliver relief to beneficiaries. Contract management is one factor in improving procurement
performance and to get goods and services in the right amount, in the right time, to the right place. The
general objective of this research is to assess the effect of contract management on procurement
performance of humanitarian organizations with special focus in the case of SOS Children’s Village
Ethiopia. This research conceptualized and developed three dimensions of contract management (pre
award contract management, contract administration, and post contract close-out contract
management practices) and test relationship and effect with & on procurement performance. The study
utilized a cross sectional, descriptive and explanatory research design using a self-administered close
ended questionnaire and interview to collect primary data and review of documents to gather secondary
data. The data of the study was collected from 34 employees of SOS Children’s Village Ethiopia.
Interview was conducted with one manager. The relationships proposed in the frame work were tested
using parson correlation, and causal relations were analyzed using regression analysis. From the
output of the analysis, there is a moderate contract management practice with a mean value of 3.32.
And it is concluded that there is a significant and positive relationship between contract management
and procurement performance constructs of right quality, rights price and right quantity with Pearson
correlation coefficient of 0.538 for contract administration, 0.538 for pre award contract management
both at P=0.001 significance level and 0.341 for post contract close-out contract management practice
at P=0.05 significance level. In addition, contract management has an influence on procurement
performance constructs of right quality, right price and right quantity in which 55.2% of variation in
this procurement performance constructs is explained by contract management. There was positive
significant influence by contract administration and pre award contract management (p=.001) on
procurement performance constructs of right quality, right price, and right quantity of SOS Children’s
Village Ethiopia. Therefore, in order to achieve delivery in the right quantity, the right quality, from the
right source, in the right time and with the right price to enhance procurement performance. SOS
Children’s Village Ethiopia is advised to give due significant emphasis to the constructs of contract
management practice such as performing risk assessment on contracts before award, developing
contract management strategy and plan, performing performance management on open contracts,
developing a contract close out check list and performing post contract closeout reviews.
Key words:
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Keywords
Humanitarian Organizations, Contract Management, Pre Award Contract Management, Contract Administration, Post Contract Close-Out Contract Management,, Procurement Performance