Determinants of Value for Money Achievement in Public Procurement in Selected Local Government Authorities in Kilimanjaro Region

Abstract

Local Government Authorities' effectiveness of achievement has been called into question. The main goal of the study was to evaluate how well Tanzanian LGAs in Kilimanjaro Region delivered value for money. Specifically the study aimed at evaluating institutional factors; procurement procedures; staff competence; and detecting if Public Procurement legal frameworks had contributions on achievement of value for money in public procuring entities. Data from the Procurement Management Unit staff, Tender Board, User Department, Negotiation Committee, and valuation committee members that work for Local Government Authorities that really are responsible for procurement decisions were collected applying a cross-sectional research design. Yamane (1967), was used to determine sample size of 111 from the target population of 245 members, and 107 use respondent participated, amounting to 96% of the overall sample size. Purposive sampling was used to choose the questionnaires respondents and interviews with senior management staff were used for data collection. There was considerable impact from each independent variable, according to the results of an analysis utilizing the Multiple Linear Regression Mmodel; institutional factors 67.6%, procurement procedures 67.2%, staff competence 67.9% and Public Procurement legal frameworks at 66.7% towards the dependent variable. Additionally, the R Square was 0.584, indicating that the independent variables contributed 58.4% to achievement of value for money in public procurement. The level of significance p was discovered to be 0.000, indicating support (p < 0.05) for each independent variable's contribution to achieving of value for money. The model achieved goodness of fit at F = 35.771, indicating that it acquired statistical significance and each independent variables have significant impact on value for money achievement in Tanzanian LGAs. It was concluded that; institutional factors, procurement procedures and staff competence level revealed their significance contribution moderated by Public Procurement legal frameworks towards achievement of value for money. The study recommends; the Public Procurement Act,2011 and the public procurement regulation,2013 should be more improved, awareness should be sensitized more to decision makers by the authority.