Effectiveness of the Centralized Procurement by the Federal Government through Public Procurement and Property Disposal Service (PPPDS)
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Date
2019-02
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Addis Ababa University
Abstract
This research was made with the general objective of assessing effectiveness of the centralized
public procurement at PPPDS’ through exploratory research and descriptive analysis and
interpretation. In light of establishment objectives and relevant perspectives reflected in
literatures, there is a need for assessing economic efficiency, timely delivery of goods and
services and other expected outcomes. A threefold methodology was used that reviewed cost
savings from federal and regional (A.A.) PPPDS along with CSA data for comparison,
questionnaire responses to 10 user public bodies, and interview and questionnaire to 20 PPPDS
staffs. Purchases of common user goods have generally witnessed economic efficiency with
different rates of cost savings. Inadequacy of staffing, untimely procurement need submission,
lack of enforcement of internal control procedures, non-existence of legal framework has been
learned from the survey as mainly impeding effectiveness of the entity. In addition to that,
PPPDS is short of the required technology and consultancy service on procurement. To boost
effectiveness, PPPDS needs to improve cost saving on items that yielded low cost saving,
upgrade its staffing in quantity and quality, initiate setup of legal framework and enforce
internal control procedures to preempt corruptive moves. Apart from that, the entity needs to
make necessary arrangements to deliver consultancy and generate income, scaleup technology
use for greater effectiveness and ought to regularly assess its performance against regional and
Eastern African counterparts.
Description
Thesis Submitted to Department of Accounting and Finance, College of Business and
Economics, in Partial Fulfillment of the Requirements for Master of Science in Accounting and
Finance
Keywords
Efficiency, Effectiveness, Public procurement