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RESEARCH PROPOSAL ON:


AN APPRAISAL OF IMPACT OF COMPETITIVE BIDDING IN THE PROCUREMENT
SYSTEM OF IBADAN ELECTRICITY DISTRIBUTION COMPANY, RINGROAD, IBADAN

BY
KAYODE OLADIPUPO OLAYEMI
PROJECT ANALYST IN IBADAN
08058573347, 07063796484





September, 2014




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1.1 INTRODUCTION
A competitive bid process is mostly used in the procurement of goods and
services. The process entails submitting a sealed envelope detailing the price and terms of
an offer. The recipient of the offer then selects the competitive bidder that has delivered
the lowest price or best terms. While not practiced regularly, a competitive bid process
can be done with a company sale whereby the investment company would skip the
traditional process, and immediately solicit letters of intent (LOI) be delivered
confidentially from all potential buyers by a certain date.
Companies undertaking a competitive bid process usually command valuation
premiums over their peers. They typically operate in an industry where they have
developed a significant competitive advantage and operate as a price leader. Buyers
seldom like to get involved in a competitive bid process, unless the target company
clearly provides post-transaction advantages that can be readily quantified and pose little
risk to be realized.

1.2 STATEMENT OF THE PROBLEM
The mischief in the law and practice led to the enactment of the public
procurement Act 2007 was the lack of value for money-economy, as efficient and
effectiveness of public procurements were poor. Government enterprise is seen as the
easiest source of wealth through inordinate contracting, embezzlement, and government
was not accountable to Nigerians.
The following are seen as the problems that necessitated this study.
i. That the financial outlay on public procurement is higher than the value of the
electricity distribution or supplied in Nigeria
ii. That there is transparent corruption in public procurement process of government
enterprises, most especially in Electricity Distribution Company of Nigeria.
iii. The acts of corruption have negative effects on the entire government enterprises.
Based on this aforementioned, the researcher deems-it-fit to carry out an appraisal
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of the impact of competitive bidding in the procurement system of Ibadan Electricity
Distribution Company (IEDC).

1.3 PURPOSE OF THE STUDY
The aim of the study is to carry out an appraisal of the impact of competitive
bidding in the procurement system. Specific objectives of the study are to:
Examine the forms of corruption in Nigerian Procurement system
investigate on the impact of competitive bidding on the procurement
system of Nigeria
examine anti- competitive practice :bid rigging
examine ways curbing corruption on Nigerian procurement system
examine ways of preventing bid ridding in Nigeria procurement system

1.4 SCOPE AND LIMITATIONS
The study will focus on the Inventory management as a determinant of customer
service, using Ibadan Electricity Distribution Company, Ibadan as a case study. Also, only
those that can read and write will be considered, other minority that cannot read will not
be concerned.
The researcher will encounter problems while conducting the research work. Some
of it is that, he may be faced with hostility from the respondents. The respondents might
refuse to grant the researcher all the require attention needed to gather enough data for
the study due to security reasons. Other forms of limitations are:
- Time constraint is one of the factors that might hinder the completion of this research
work. The time given for the completion of the project may be very short, so the
researcher will have to make use of the available data.
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- Lastly, lack of adequate finance is another issue that may limits how widespread the
data can be collected, as more data would have been necessary to have a better
assessment of respondents.
1.5 SIGNIFICANCE OF THE STUDY
An appraisal of the impact of competitive bidding in the procurement system is a
very important to government enterprises because it ensures that materials and
equipments are available at the right time and place, for the work to be done very
profitably.
It will enable the purchasing and supply students to have a vast knowledge on the
significant impact of proper management of the inventory in an organization.
Create more awareness of the importance of competitive bidding on Nigerian
Procurement system and economic development.
Encourage more attention to be paid to the use of competitive bidding for
procurement system and legislations in Nigeria
Establish also the need for practicing professionals to improve on and bring their
services closer to the people
Educate the masses on the ills of corruption to the Nations growth.
(5) Furnish the policy makers the suggested practical ways of curbing Corruption in
the procurement process.

1.6 RESEARCH QUESTIONS
1. Does competitive bidding has negative impact on procurement system?
2. What are the barriers to effective competitive bidding o procurement system?
3. What are the ways of curbing corruption in procurement system?
CHAPTER TWO
LITERATURE REVIEW
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The Concept of Competitive bidding
Advantages and disadvantages of competitive biding
The forms of corruption in Nigerian Procurement system
The impact of competitive bidding on the procurement system of Nigeria
Anti- competitive practice :bid rigging
Ways curbing corruption on Nigerian procurement system
Ways of preventing bid ridding in Nigeria procurement system

CHAPTER THREE
3.0 RESEARCH METHODOLOGY
This chapter contains explicit step by step procedures on what will be done by the
researcher and how it will be carried out. It is the blue print for the study. This chapter states
the source of the data, methods of data and types of data collection instruments and analysis,
sampling procedure and design as well as the basic approach applied in this work.
3.1 RESEARCH DESIGN
The survey research design will be used in this study. It involves a self-designed
questionnaire in collecting data from the respondents. This is chosen in order to make
reference to phenomena as they exist in real life and it is relatively economical in terms of
time and resources.

3.2 AREA OF STUDY
The study will focus only on the aspect of the impact of competitive bidding in the
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procurement system, the barriers to effective competitive bidding, strategies for proper
implementation of supply chain management so on.
3.3 SAMPLE FRAME
The sample frame of this study will be the entire staff members i.e total population of
the Ibadan Electricity Distribution Company, Ibadan, Oyo State, Nigeria and this is about
150 staffs.
3.4 SAMPLE SIZE
The sample size that will be used from the population of the study is 60 staff; this will
represent the total population of the study i.e. 40% of the total population which can be
express as 150x40 = 60 staffs
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3.5 INSTRUMENTS FOR DATA COLLECTION
Primary and secondary sources of data will be used for this research work.
3.5.1 Primary Data:
Primary source of data will be through the use of questionnaire and they will be
closed- ended questions. The questionnaire will be in two parts. Part A will deals with the
Bio-data of the respondents, while part B will deals with data concerning the research
hypotheses.
3.5.2 Secondary Data
Secondary source of data will be various textbooks, journals and internet materials
which will enable the researcher to get acquainted with the some empirically verified views
of some authorities on the research problem.
3.6 METHOD OF DATA COLLECTION
The main instrument to be used for this study will be structured assessment
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questionnaire with closed ended questions. The questionnaire will be designed carefully in
line with the relevant issue or problem to be raised in the research. Thereafter, it will be
given to my supervisor for better modification before the distribution among the staff
members of Ibadan Electricity Distribution Company, Ibadan, Oyo State, and this will take
me two week because of the delay one might encounter from some of staffs of the institution
and the time to administer the questionnaires filled. Sixty questionnaires will be served and
hopefully expected to be fully recovered and then administer.
3.7 METHOD OF DATA ANALYSIS
This research study will make use of descriptive research survey to generate primary
data for the research topic. The data collected will be analyzed through the use of simple
percentage, tables, and descriptive analysis.
CHAPTER FOUR
This chapter deals with the presentation and analysis of data collected during the
research work conducted. The effort here is to present the data collected from the different
respondents in a more meaningful ways to the readers. Hence, each response is presented in
percentage in relation to the general or overall responses received in each particular case.
CHAPTER FIVE
The concluding part of the research work will be chapter five where in a null shell the
summary, the conclusion and the recommendations will be discussed.