Competitive Tendering and Performance of Procurement in Government Institutions

Abstract

Procurement functions in both public and private entities aim at achieving value for money through the use of best procurement practices and methods that improve performance and ensure Organisation efficiency. Whichever procurement method is used, it must identify the most economically advantageous tenders and authorities must still comply with general principles of equal treatment, transparency, nondiscrimination and competition. It is against this background that this study sought to assess the impact of competitive tendering on performance of procurement using a case of Moyo District Local Government. It specifically sought to examine the effect tender advertisement, bid evaluation, transparency, and fair tendering procedures had on performance of procurement. Case study design was adopted with a base sample of 80 respondents drawn using simple random and purposive sampling techniques. Selfadministered questionnaires and documentary review were used for collecting data related to the specific objectives. Multiple regression analysis was used to test the relationship between the variables. The study found that in effect of tender advertisement on performance of procurement, access to several suppliers in a short time was significant at β=0.680, p<0.05). In effect of bid evaluation on performance of procurement, approved criteria (β=0.249, p<0.05) and document compliance (β=0.293, p<0.05) were significant. In influence of transparency on performance of procurement, publication of procurement plans (β=0.258, p<0.05), access to key procurement information (β=0.193, p<0.05) and open communication (β=0.169, p<0.05) were significant. In role of fair tendering procedure on performance, equal opportunity (β=0.395, p<0.05) and bidder inclusiveness (β=0.565, p<0.05) were significant. The study concluded that competitive tendering influences performance of procurement and thus gave a number of recommendations to MDLG including embracing electronic advertisement through government procurement portals to reduce costs and access several suppliers, conducting ethics and integrity trainings to members involved in the procurement process, provision of whistleblowing procedures and measures for protecting whistleblowers, and provision of timely and sufficient procurement information through publications. The study also recommended further studies on other procurement methods to determine their influence on performance of procurement.