Volume 15, Number 2, Summer 2015

Integrating Contract Management Practices into the Achievement of Value for
Money in Tanzania Public Procurement: Evidence from Selected Procuring
Entities in Moshi Municipality .................................................................................      129
A. Mchopa
 
Complex Products and Comprehensive Service Agreements: A Case Study of
Outsourcing in Contract Cities .................................................................................     150
S. T. Brien and L. L. Hine
 
Five Dilemmas in Public Procurement .....................................................................     177
C. P. McCue, E. Prier, and D. Swanson
 
Rethinking Contract Design: Why Incorporating Non-Legal Drivers of Contractual
Behavior in Contracts May Lead to Better Results in Complex Defense
Systems Procurement ...............................................................................................    208
P. Kamminga
 
Do Key Performance Indicators Matter on Public Procurement Rules 2008? An
Empirical Study on Local Government Engineering Department, Bangladesh ......      236
M. Rahman, A. K. Das, and Z. Islam

This study focuses on the importance of transparency and accountability of Local Government Engineering Department (LGED)’s procurement performance based on 45 predetermined Key Performance Indicators (KPIs). The main objectives of this study are to find the extent of compliance of PPR 2008 by LGED and to identify gaps in compliance and scope of improvement for implementation. For this study, a questionnaire survey method collected data from different stakeholders related to procurement activities of LGED. Key informant interviews were also conducted with senior officers of LGED and IMED. The study result shows a clear adherence to the rules of PPR 2008 by LGED in operating its procurement functions except when paying interest for delayed payment. This study was confined to compliance issues covering 11 KPIs set by the Central Procurement Technical Unit (CPTU).

This study investigates how outsourcing multiple public functions in a single contract increases the complexity of the services rendered under the agreement. We hypothesize that product complexity arises in these bundled service agreements due to several factors including diseconomies of scope, the “lock-in” problem, and communications problems between the contractor, the government and the public. We investigate these questions using a textual analysis research methodology to examine the initial contract documents that formalized an agreement between the City of Sandy Springs Georgia and the firm CH2M Hill. The results of this qualitative study identified several ways that different combinations of functions increased product complexity. It also revealed ways the contracts were designed to mitigate the risks of outsourcing multiple functions in a single contract.

Defense acquisition programs are plagued by surging delays and cost overruns. In particular, contract management of defense acquisition programs has been identified as “high risk” – and threatening to project results. This article examines how contracts, as legal mechanisms, may be disruptive and obstruct cooperation between the DoD and contractors. The main observation this article makes is that tensions between the norms set forth in contracts and other non-legal norms can become a major reason for problems in defense procurement. It explains why these tensions may undermine cooperative behavior between contractors and the DoD and can become a source of disappointing acquisition program results. A framework is provided for identifying such tensions, and contract design principles are proposed to enhance cooperation and eliminate these tensions when drafting contracts for defense acquisition and other complex programs.

Contract management is an important activity in public procurement especially on executing development projects while aiming at value for money. On the contrary, reports from the Public Procurement Regulatory Authority show that funds have been wasted due to poor contract management practices hindering value for money achievement.
Hence,
the study aimed at assessing the contribution contracts management practices towards value for money achievement. Questionnaires and Interviews were used for data collection and findings revealed that contracts contained all the necessary conditions, contracts practices of time management, quality management and costs control were effective and resulted into value for money achievement. Therefore, value for money was achieved above average scale by considering qualitative measures and it was recommended that more efforts are needed to enhance supervision and enforce defect liability clause.

Procurement systems in democratic governments across the globe face competing demands, conflated values and goals, and are being called upon to address societies “wicked” problems under the rubric of government “reform.” As a result, government purchasing professionals are being challenged to develop new flexible structures and processes that devolve purchasing responsibility, yet maintain accountability and control; limit the opportunity for fraud/mismanagement while reducing operational constraints; increase economic efficiency while satisfying political demands for minority/local/small and women owned business participation; increase open and transparent competition while achieving best value; and applying best practices while confronting legal limitations. Essentially these dilemmas have placed public procurement at the forefront of government reform efforts. The current study delineates the nature of five dilemmas that purchasing practitioners face, and the implications of these dilemmas for purchasing in the public sphere are explored. Given the complexity of these dilemmas, procurement professionals will be continually called upon to balance these inherent tensions with little guidance from policymakers or elected officials.

Go to top