Factors Affecting Framework Agreement Procurement Efficiency: The Case Of Public Procurement And Property Disposal Service (Pppds)

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Date

2020-06

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Addis Ababa University

Abstract

Framework agreement type of procurement has become very important in developed as well as developing countries. Few researches have been conducted to review factors affecting framework agreement procurement efficiency in public procurement and property disposal service of Ethiopia. Therefore, this research aims to examine factors affecting framework agreement procurement efficiency: the case of public procurement and property disposal service of Ethiopia. The researcher identified three factors that affect framework agreement procurement efficiency. These includes: criteria for supplier selection, Terms and conditions of framework agreement, and external factors. The hypothesis of the study was factors of framework agreement (independent variables) and their impact on framework agreement efficiency (dependent variable) of PPPDS. The research design used was based on both descriptive and explanatory research approaches. The researcher distributed 86 questionnaires and 81were filled and returned. Both primary and secondary data were used throughout this research. For primary data, both structured and semi structured type questionnaires were prepared. The results of this study indicate that the independent variables (criteria for supplier selection, Terms and conditions of framework agreement) positively affect the dependent variable (framework agreement efficiency) but challenges in FA implementation negatively affect FA efficiency to a significant extent. These factors contribute 74.7% of FA efficiency, while the rest 25.3% is explained by other factors, which are not subject of this study. Therefore, with this study finding, PPPDS is advised to emphasize more on challenges that hinder FA efficiency and should be able to create efficient and responsive procurement system. It is critical to know the common items that need to be included in to the FA and particularly consider price fluctuations while going through the tender process to attract suppliers for FA. Key words:

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Keywords

Framework Agreement, criteria for supplier selection, Terms and Condition of Framework Agreement, Challenges of implementation of Framework Agreement.

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