Factors Affecting Effectiveness of Centralized Public Procurement System in Federal Budgetary Government Organizations
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Date
2019-06
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Addis Ababa University
Abstract
The main objective of this research is the assessment of factors affecting effectiveness of centralized public procurement system in the federal budgetary organizations. In this study the researcher tries to see the correlation between the independent variable (procurement plan implementation, competency of staff, ICT adoption and operational procedures) and dependent variable (effectiveness of centralized public procurement system which is on time delivery, the right quality, right quantity, right source, right price and the level of customer satisfaction). In order to get the required data primary data source was used. The data gathering tool was questionnaire from 114 respondents of federal governmental budgetary organizations procurement staffs using self-administered questionnaire and the final response rate was 86.8%. The research design were descriptive (frequency, percentage, mean and standard deviation) and explanatory design (spearman’s correlation coefficient and multiple linear regressions) analysis with the help of SPSS 20.0 software packages. The correlation result (0.874) shows there is strong correlation between outcome variable and predictor variable. The regression result (r2 =0.763) also shows predictor variables explain effectiveness of centralized public procurement system and all predictor variables are significant and have high impact on effectiveness and the remaining factors which account 0.237 which were unexplored variable affect effectiveness of centralized public procurement system. The result of the finding shows in federal budgetary government organizations there were problems in procurement plan implementation, competence of staff, ICT adoption and operational procedures. Based on the findings the study concluded that effectiveness of centralized public procurement system strongly affected by procurement plan implementation, competence of staff, ICT adoption and operational procedures which lead to ineffectiveness of the centralized public procurement system and finally source of dissatisfaction for end user organizations. From the findings the following recommendations of the research were made: PDDDS should provide continuous training to procurement staffs to improve the skill and competence of staffs so as to make quality of procurement need plan and complex procurement, establish well organized and integrated ICT infrastructure, improve operational management of the system and make regular assessment about the effectiveness of the procurement system.
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Keywords
Centralized Purchasing system, public procurement, Staff competency, Effectiveness