The Influencing Factors Of Framework Agreement Effectiveness In Public Procurement And Property Disposal Service, Ethiopia

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Date

2017-06

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Addis Ababa University

Abstract

Framework agreement type of Procurement has increasingly become very important in both developed and developing countries like Ethiopian Despite its importance, limited research has been undertaken to assess framework agreement effectiveness in public procurement in Ethiopia. Inefficient procurement process, and inefficient contract administration, late submission of procurement plan, shortage of foreign currency, and low financial capacity of suppliers’, late delivery and late payment are the manifestation of framework agreement in PPPDS. This study aimed to ascertain the determinants of framework agreement in public procurement a case of Public Procurement and Property Disposal Service. Specifically the study sought to establish the impact of factors that affects framework agreement effectiveness; ascertain the influence of suppliers’ performance execution, suppliers’ capacity, public bodies’ procurement plan and information communication technology affects framework agreement effectiveness. The study was conducted through both descriptive and inferential research design. The study employed purposive and simple random sampling to select the sample and sample elements. This resulted to a sample size of 118 respondents. A structured questionnaire and interview as a data collection instrument was used. The data analysis was conducted through descriptive, correlation and multiple regression statistical technique using SPSS version 23. Data which is collected through interview was analyzed by thematic analyses. Findings indicate that suppliers’ performance execution, suppliers’ capacity, public bodies’ procurement plan & ICT utilization have significant impact on framework agreement effectiveness. From the study conclusions are made. First the model depicts that supplier’s performance execution accounts for 23.9% of variations in framework agreement, second suppliers’ capacity accounts for 28.3%, third, public bodies’ procurement plan accounts for 26.9 % and lastly ICT utilization accounts for 18.2% of variations in framework agreement effectiveness. Based on the findings, the study recommends PPPDS should adopt information communication technology, monitor and evaluate suppliers’ capacity and performance execution in framework agreement; public bodies particularly heads of public bodies should give attention for procurement plan and procurement expert empowerment and suppliers also should bounce consideration on their performance execution and capacity to play their role for the effectiveness of framework agreement

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Keywords

Framework Agreement, Common user items, PPPDS

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