Contract Administration Practice: The Case of Pharmaceutical Supply Agency of the Federal Democratic Republic of Ethiopia
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Date
2019-06
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Addis Ababa University
Abstract
A tangible contract management function assists in managing obligations in an effective manner; this saves the two parties significant time and effort and provides benefits in terms of business strategies and procedures. Studying contract administration and management and its performance can help in ensuring the organization/institution to get the best contracts as much as possible and to improve their implementation as well. This research was conducted with the aim to assess the contract administration practice of EPSA and its performance. Both quantitative and qualitative methods were used with a descriptive type of research design. Data were collected through structured self-administered close-ended and open ended questionnaire and formal interview as well. Purposive type of sampling technique was applied to get valid information from professionals who were practicing contract administration. The total sample size was 57 from out of this 54 were available during the survey and the response rate was 94.34%. Accordingly, our result revealed that the agency is better performing “Contract Closeout” activities with an average level of agreement value of 3.36 which is above “sometimes” but below “most of the time”. On the other hand, “Risk Management of Contract Administration” activity was the least performed with an average level of agreement value of 2.74%. CM-PAM model survey results further confirmed that the agency is performing its “Contract Administration” under the average for developing enabling environment, risk management, Contract change management, Information System, Human Capital, and capacity building, and Assurance Systems and Control. However, the agency is relatively better, in performing activities related to Performance monitoring, evaluation and reporting, payment management, dispute management, and resolution and contract closeout and lessons learned. The obtained value of the Cronbach’s alpha was found to be 0.942 which is greater than 0.70, indicating the reliability of our result. In conclusion, the agency is practicing contract administration under the average for most of the activities in every ten categories of activities and hence need to invest further effort to better manage its contract administration
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Keywords
Contract Administration, Contract Management Process Assessment Model (CM-PAM), Ethiopian Pharmaceuticals Supply Agency