Professional Documents
Culture Documents
LOCAL GOVERNMENT
BY
MUZOORA JOSEPHINE
15/U/10447/PLE/PE
AUGUST 2018
DECLARA TION
I, MUZOORA JOSEPHINE, declare that to the best of my knowledge, the research report is
my original work and has never been submitted for any degree award in any University or for
MUZOORA JOSEPHINE 15/U/10447/PLE/PE
SIGNATURE…………………………………
DATE………………………………………….
i
APPROVAL
This is to certify that the study entitled EFFECT OF PROCUREMENT PLANNING ON
SERVICE DELIVERY IN MUKONO LOCAL GOVERNMENT has been done under my
supervision and the report is now ready for submission to the Department of procurement and
marketing with my approval.
SIGNATURE…………………………………
DATE………………………………………..
ii
DEDICATION
This research is dedicated to my parents Mr. Muzoora Joseph and Ms. Muzoora Janestar who
have been such a great influence morally, financially and spiritually towards my studies.
iii
ACKNOWLEDGEMENT
Above all, I acknowledge God Almighty for the gift of life, Love and Grace as my hopes lay
upon his hands. It is by His grace that this research report has been accomplished. Glory and
praise be to God.
I am deeply indebted to my parents Mr. Muzoora Joseph and Ms. Muzoora Janestar who have
brought me up and have been there for me in all financial, physical, social support and all the
assistances needed in my education and all day to day needs in my life, may the almighty Father
bless them accordingly.
I wish to extend my heartfelt feeling to my brother Muzoora James for his tireless financial
support, love care and moral support. I thank him for being there for me all the time I needed
him during my academics.
My special gratitude goes to kushemererwa Monica for all the support, love care and guidance
that has helped me to complete my academics. Thank you indeed for the trust and cooperation
you placed in me that enabled me to come up with this piece of work.
I acknowledge the co-operation, assistance and support of my friends Leticia, Brenda, Basam,
pius and George whose advice was of greater importance in accomplishing this task. You have
been a great force to reckon with, during my time of study.
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TABLE OF CONTENTS
DECLARA TION.............................................................................................................................i
APPROVAL....................................................................................................................................ii
DEDICATION...............................................................................................................................iii
ACKNOWLEDGEMENT..............................................................................................................iv
TABLE OF CONTENTS................................................................................................................v
LIST OF FIGURES........................................................................................................................ix
LIST OF TABLES...........................................................................................................................x
LIST OF ACRONYMS.................................................................................................................xii
ABSTRACT.................................................................................................................................xiii
CHAPTER ONE..............................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.0 Introduction................................................................................................................................1
v
1.6.3 Time Scope.............................................................................................................................5
CHAPTER TWO.............................................................................................................................7
LITERATURE REVIEW................................................................................................................7
2.0 Introduction................................................................................................................................7
2.3.6 Estimating the Value of the Works, Services or Supplies Required :..................................10
vi
CHAPTER THREE:......................................................................................................................16
METHODOLOGY........................................................................................................................16
3.0 Introduction..............................................................................................................................16
3.6.3 Interviews:............................................................................................................................19
CHAPTER FOUR.........................................................................................................................21
4.0 Introduction..............................................................................................................................21
vii
SECTION A: Roles Undertaken by the Different Stakeholders...................................................24
5.0 Introduction..............................................................................................................................36
5.2 Conclusion...............................................................................................................................37
REFERENCES..............................................................................................................................40
APPENDICES...............................................................................................................................42
APPENDIX I: QUESTIONNARE................................................................................................42
viii
LIST OF FIGURES
Figure 1: Showing the sex distribution of the respondents............................................................21
ix
LIST OF TABLES
Table 1: Showing the Number and Type of Respondents.............................................................17
Table 2: Showing preparation of a multi annual work plan based on the approved budget..........24
Table 7: Showing Citizens Assist the Town Council to decide on Services to be provided.........27
Table 8: Showing Citizens also Work With NGOs, CBOs and Political Parties to Develop
Proposals........................................................................................................................................28
Table 11: Showing the Town Council Lacks Finances to Buy the Services.................................30
Table 13: Showing Poor communication with communities in Mukono Local Government.......31
Table 14 : Showing the Town Council Faces a Challenge of Limited Skilled Personnel.............31
Table 16: Showing Procurement Planning sets in motion the Process of Acquiring Services......33
Table 17: Showing Procurement Planning Facilitates Efficient and Effective Service Delivery. 33
Table 18: Showing Procurement Planning achieves Maximum Value for Expenditures on
Services..........................................................................................................................................34
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Table 20: Showing Pearson Correlation between Procurement Planning and Service Delivery.
Correlations....................................................................................................................................35
xi
LIST OF ACRONYMS
AG Attorney General
AO Accounting Officer
xii
ABSTRACT
This research studied the effect of procurement planning on service delivery in Local
government, a case study of Mukono Local government. The findings of the study revealed that
there is a strong positive relationship between procurement planning and service delivery. Most
of the respondents strongly agreed with it. It explored to examine the roles under taken by the
different stakeholders during Procurement Planning in Mukono Local government, to establish
the factors affecting service delivery in Mukono Local government and to establish the
relationship between Procurement Planning and Service Delivery. The study will be of great
importance to the people of Mukono Local government and stakeholders that involved
themselves in the procurement planning process and service delivery of Mukono Local
government and the entire nation at large as the study unveiled procurement planning and tasks
management problems that has all along not been observed in the organization. The study
employed self-closed end questionnaires to collect data. Data was collected using self-
administered questionnaires. The study used stratified and purposive sampling techniques to
draw representative samples and 50 respondents were involved in the study. This was done using
relevant computer packages like Microsoft excel to derive at good tables and charts for easy and
quick interpretation. Also the study undertook to examine the roles of different stakeholder in
procurement planning and the following were found out; defining procurement requirements,
dividing requirements allocated to a single procurement process into separate lots, integration of
the diverse decision and activities, ensuring availability of sufficient funds to run the plans,
developing of proposals and evaluation of potential service providers. Some factors were found
to be affecting service delivery and these included the following corruption, lack of finances, the
challenge of getting the right service provider, limited skilled personnel, also poor
communication. The study also recommends the following; Corruption should be reduced by
enforcing of strict rules and giving penalties, training the recruited workers, the procurement
team should carryout research so as to find out a reliable service.
xiii
CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter includes the following; back ground to the study, statement of the problem, purpose
of the study, objective of the study, research questions, scope of the study which includes the
content scope, geographical scope and time scope and finally the significance of the study.
The world of procurement is changing fast. Organisations aim at getting the best value product or
service by encouraging openness, developing the relationships with potential suppliers, engaging
with service users and marketing opportunities widely. The purchasing profession has been
gaining recognition in developed countries faster than in the developing countries
(Matechak,2009). In public service, many developing countries Uganda inclusive have not
managed to advance the purchasing profession either because of lack of managers (supervisors)
to recognize the profession or because top management does not support and fully understand the
required competences for effective development of the purchasing and supply chain function
(Msimangira, 2003).
According to Arowsmith and Trybus (2003) the procurement officer must inspire confidence and
give the stakeholders feelings of credibility and trustworthiness. The various stakeholders must
feel that the procurement officer competently selects a supplying company that has the capacity
and competence to deliver the service requested. Yet such attributes have been highly violated
within the central government, poor services have been common as rated by the IGG at 9.1 % of
the mismanagement and misappropriation of the public resources in Uganda (Mugerwa,
2010).This calls for Self-efficacy of procurement officers in addition to required operant
competencies for exhibiting accountability and perceived service quality (Bandura, 1997).
Demonstrated accountability and transparency reduces the likelihood of unethical behavior,
reassures and instills confidence in all stakeholders concerning the integrity of decisions in the
procurement process (Queens Land Purchasing guide, 2006). However the procurement field is
1
full of complex competitive environment which give rise to accountability problems that relate to
neglect, poor personal loyalty and advanced selfinterest (Barrett, 2000). This is reflected in a
report by IGG that rated conflict of interest as 2.4% and abuse of office at 17.8% of
mismanagement and misappropriation of public funds in Uganda (Mugerwa, 2010). Making the
roles and responsibilities of the participants in the procurement process difficult and not clear.
Van Wheel (2005) defines procurement planning as the process of determining the procurement
needs and the timing of their acquisition and funding such that the entire operations are met as
required in an efficient way. He adds that it generates power that propels the engine of the
procurement process. Thus a mistake in procurement planning may culminate into diverse
implications in the organization that may deter its progress.
In Uganda, procurement planning is part and parcel of the traditional planning already familiar in
local governments: - notably, development planning and budgeting. The mandate for planning in
local governments is derived from Regulation 62 of the Local governments (PPDA, 2006): user
department prepare an annual work plan for procurement based on the approved budget, which
shall be submitted to the procurement and disposal unit to facilitate orderly execution of annual
procurement activities. It is also states that a procurement plan should be integrated into the
annual sector expenditure program to enhance financial predictability, accounting and control
over procurement budgets. The combined work plan for the procuring and disposing entity will
include details of activities of works, services or supplies to be procured, a schedule of
procurement requirements in order of priority, a statement of required resources supported by a
schedule of the projected funding.
Article 190 of the Ugandan constitution states that district councils shall prepare comprehensive
and integrated development plans incorporating the plans of lower level governments for
submission to the National Planning Authority and Article 194 of the constitution mandates the
central government to transfer funds in form of grants to local governments in order to
implement decentralized services. As part of the efforts to adopt a long term and strategic view
of their procurement needs and management, most countries have resorted to turning to their
annual procurement plans as a possible 'problem-solver.' However procurement plans are
2
hindered by corruption which diverts decision-making and the provision of services from those
who need them to those who can afford them (Langseth, Kato, Kisubi& Pope, 1997).
According to National Service Delivery Survey (2008), the government has the obligation to
provide services to its citizens and to steer economic growth and development through the
provision of public services. The public service is the main implementing machinery for national
development programmes and specifically, the delivery of public services. It is therefore very
important for the public service to monitor and evaluate the delivery of public services and to
obtain feedback from service recipients, regarding their efficiency and effectiveness. The
National Service Delivery Survey (NSDS) has been institutionalized by Government as a key
instrument to that effect. Under the Public Service Reform Programme, surveys are conducted in
the sectors of education, health, road infrastructure, water and sanitation, agriculture and
governance among others. In service delivery, the system of delivery must view tax payers as
customers, this therefore calls for placing “a high priority on delivery of personalized efficient
customer service (Mourney1991).” He further noted that attitudes exhibited by service providers
employees and managers must be aimed at developing good working relations and ensuring that
customers (tax payers/citizens) are handled well while being served.
Mukono District local government is faced with different challenges related to ineffective
procurement planning and these have resulted into poor service delivery in terms of
infrastructures like poor roads among others, all these are partly attributed to political
interference. Substantial resources have been committed towards improving service delivery in
areas such as infrastructure development and maintenance, rural development, human
development and governance, among others. In particular, it is noted that households do not only
need income but also require adequate community infrastructure such as schools, health
facilities, clean water, roads, energy, security, law and order (National Service Delivery Survey
2010).The researcher therefore seeks to examine the effect of procurement planning on service
delivery in Mukono district local government.
3
1.2 Statement of the problem
The ultimate goal of procurement planning is coordinated and integrated action to fulfill a need
for goods, services or works in a timely manner and at a reasonable cost. Early and accurate
planning is essential to avoid last minute, emergency or ill-planned procurement, which is
contrary to open, efficient and effective and consequently transparent procurement. Ntayi et
al., (2012) asserts that, most potential savings in the procurement process are achieved by
improvements in the planning stages. Procurement planning is necessary for better
procurement performance which in turn leads to better service delivery by ensuring
efficient acquisition of resources for service delivery. However, procurement planning alone
may not contribute to better service delivery. Other factors such as organizational structure,
tendering process, corruption, resource availability and bureaucracy among others greatly impact
service delivery.(Agaba and Shipman, 2013).A number of studies relating to procurement
planning and service delivery have been done and they identified several critical problems
with Uganda’s procurement system; weak oversight institutions, poor linkages between
procurements and expenditures, delays and inefficiencies and poor records management.
Despite the numerous studies on procurement planning, the aspect of service delivery in relation
to procurement planning has been largely neglected therefore this study was intended to
bridge the knowledge gap and seeks to examine the effect of procurement planning on
service delivery in Mukono Local Government.
The study aimed at establishing the effect of procurement planning on service delivery in
Mukono Local Government.
1. To examine the roles under taken by the different stakeholders during Procurement Planning
in Mukono Local Government.
4
1.5 Research questions
1. What are the roles undertaken by the different stakeholders during Procurement Planning in
Mukono Local Government?
2. What are the factors affecting Service Delivery in Mukono Local Government?
5
1.7 Significance of the study
Given the fact that procurement irregularities still exist in public procurement and yet the public
procurement reforms are intended to improve financial accountability, increase transparency,
value for money, maximize competition and detect and stop any form of procurement
irregularities. Therefore the study findings may be of value to different authorities like
procurement professionals, non professionals, the local government and all those involved in
public procurement as illustrated below.
The findings of the study will specifically help the local government of Mukono Local
Government to revisit her procurement planning if they are to improve on service delivery.
The study conclusions and recommendations envisaged at the end of the study will help local
authorities, contract committees, procurement staff and all those involved in public procurement
to improve and appreciate the public procurement function.
In addition, the study findings are hoped to identify and suggest ways to fill gaps in Public
Procurement planning Reforms to enhance value for money, efficiency, transparency,
competition and accountability in Public procurement.
The study will also help policy makers to formulate ways on how to improve the service delivery
in the economy.
The study will also act as a basis for further research to other researchers in field of Public
Service Delivery and procurement in Uganda
6
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews the related literature on effect of procurement planning on service delivery
in Mukono Local Government. The literature is got from various sources such as text books,
journals, newspapers, magazines and the internet.
According to Agaba& Shipman, (2007), procurement planning is the process used by companies
or public institutions to plan purchasing activity for a specific period of time. This is commonly
completed during the budgeting process. Each year, departments are required to budget for staff,
expenses, and purchases. This is the first step in the procurement planning process.
Economic commission of Africa (2003) defines procurement planning as the purchasing function
through which organization obtain products and services from external suppliers. A good
procurement plan will go one step further by describing the process you will go through to
appoint those suppliers contractually. Whether you are embarking on a project procurement or
organizational procurement planning exercise, the steps will be the same. First, define the items
you need to procure. Next, define the process for acquiring those items. And finally, schedule the
timeframes for delivery.
Procurement is thus one part of the commissioning process. It refers to a specific method of
purchasing services which involves tendering for a contract. Sometimes it is more appropriate for
a public body to fund a service through the provision of a grant, but then it will have less control
over the precise outcomes to be delivered.
Oboth (2001) noted that in as far as the Local Government Act, the constitution and any other
statutes that are studied, there is no definition of the phrase (service delivery) either deliberately
or ignorantly. However he said, Service is a system or arrangement that supplies public needs.
7
Whereas delivery is periodical performance of a service. Therefore service delivery is a system
or arrangement of periodical performance of supplying public needs. Helmsing (1995) in his
study defines service delivery as a deliberate obligatory decision by the elected or appointed
officials to serve or deliver goods and services to the recipients. Heskett (1987) defines service
delivery as an attitudinal or dispositional sense, referring to the internationalization of even
service values and norms.
According to Agaba& Shipman, (2007), procurement planning is the process used by companies
or public institutions to plan purchasing activity for a specific period of time. This is commonly
completed during the budgeting process. Each year, departments are required to budget for staff,
expenses, and purchases. This is the first step in the procurement planning process.
Economic commission of Africa (2003) defines procurement planning as the purchasing function
through which organization obtain products and services from external suppliers. A good
procurement plan will go one step further by describing the process you will go through to
appoint those suppliers contractually. Whether you are embarking on a project procurement or
organizational procurement planning exercise, the steps will be the same. First, define the items
you need to procure. Next, define the process for acquiring those items. And finally, schedule the
timeframes for delivery.
Procurement is thus one part of the commissioning process. It refers to a specific method of
purchasing services which involves tendering for a contract. Sometimes it is more appropriate for
a public body to fund a service through the provision of a grant, but then it will have less control
over the precise outcomes to be delivered.
8
2.3.1 Preparing a multi annual work plan: Each user department should prepare a multi-
annual rolling work plan for procurement based on the approved budget, which is submitted to
the procurement and disposal unit to facilitate orderly execution of annual procurement
activities. A procurement plan is integrated into the annual and multi-annual sector expenditure
programme to enhance financial predictability, accounting and control over procurement
budgets. A procurement and disposal unit uses the combined work plan to plan, organize,
forecast and schedule the procuring and disposing entity's procurement activities for the financial
year, section 96 of the PPDA regulations (2006).
2.3.2 Defining procurement requirements for an entity: It is the role of each entity in the local
government to define its procurement requirements, identify all of the items they need to procure
(Agaba& Shipman, 2007). Creating a sound financial justification for procuring them, listing all
the tasks involved in procuring their services, scheduling those tasks by allocating timeframes
and resources. Through a Procurement Plan template, the procuring entity can quickly and easily
define its procurement requirements, the method of procurement and the timeframes for delivery
(Basheka, 2008).
2.3.3 Aggregation of Requirements for the Procuring Entity. The aggregation of requirements
takes into account, the market structure for the items required, items which are of a similar nature
and which are likely to attract the same potential bidders, the optimum size and type of contract
to attract the greatest and most responsive competition or the best prices, items which are subject
to the same method of procurement and bidding conditions, items which shall be ready for
bidding at the same time, items which shall be subject to the same conditions of contract,
potential savings in time or transaction costs, the appropriate size of contract to facilitate the
application of any preference and reservation schemes, and the optimum: number and size of
contracts to facilitate management and administration of contracts by the procuring and
disposing entity.
9
2.3.4 Dividing Requirements Allocated to a Single Procurement Process: It is the role of the
procuring entity to divide requirements allocated to a single procurement process into separate
lots if it is anticipated that the award of several separate contracts would result in the best overall
value for the procuring and disposing entity. Where a number of lots are to be procured under the
same procurement process, the solicitation documents shall clearly state; the number of lots
included in the procurement process, the nature and size of each lot, the minimum and maximum
number of lots, if any, for which a bidder may bid, the proportion of each lot for which a bidder
may bid, or whether a bid shall be for complete lot and the method of evaluating multiple lots.
2.3.5 Integration of Diverse Decisions: (Mawhood, 1983) contends that during procurement
planning, the procuring unit brings about effective integration of the diverse decisions and
activities of members on the technical planning committee not only at a point of time but also
over a period of time. It is by reference to the framework provided by planning that members on
the technical planning committee make major decisions on local government activities, in an
internally consistent manner.
2.3.6 Estimating the Value of the Works, Services or Supplies Required : In estimating the
value of the works, services or supplies required and confirming the availability of funds, a
procuring entity shall ensure that the estimate is realistic and that- the estimate is based on up-to-
date information, technical advice is sought, where required, and the confirmation of availability
of funding takes into account the total acquisition cost in accordance with regulation 227 of the
PPDA Regulations (2006).
2.3.7 Specific Role of the Accounting Officer: During procurement planning the accounting
officer ensures that the public entity establishes a procurement unit, appoints members of the
tender committee, procurement committee and other, structures in accordance with Act and the
Regulations. Appointing members of the tender committee, appointing members of tender
evaluation committees, Ensuring procurement plans are prepared, Ensuring proper
documentation of procurement proceedings.
10
2.3.8 Ensuring availability of Sufficient Fund. Where payment to a service provider is
anticipated to last more than one financial year, it is the role of the accounting officer to ensure
that financial provision is made in the budget estimates for the appropriate year to support the
procurement during the subsequent years. The accounting officer also ensures that sufficient
funds are budgeted for framework contracts every financial year, to cover the full cumulative
cost of call off orders anticipated for each year for a framework contract.
2.4.2 Developing of proposals: Chuan&Leu (2009) noted that Residents also work with Non-
Governmental Organizations (NGOs), Community Based Organizations (CBOs) and political
parties to develop proposals for the council to consider during planning. Communities can also
request the town council to appoint a committee of community representatives to monitor
processes as well as to advise the town council on priorities for service extension and
improvement.
2.4.3 Evaluation of Potential Service Providers: Communities or their representatives can also
play some role in the evaluation of potential service providers, the involvement of communities
in service provision and monitoring of the performance of service providers is vital in planning.
This kind of involvement of citizens ensures that procurement planning and decision-making
process reflect their needs and priorities and lead to the types of decisions that will make an
effective services delivered in an open, fair and democratic local government (Livingstone &
Charlton, 2001).
11
2.5Factors affecting service delivery
Infrastructure affects greatly on service delivery. For instance, in Kenya, the provision of better
infrastructures has lagged being over years. There are poor roads and inadequate electricity
supply and hence Kenya still stands in need of better infrastructures (Proceedings of National
Investment Conference, 2003).
Public procurement, at the local government level, is believed to be one of the principle areas
where corruption in Kenya takes place ("National Public Procurement Integrity Baseline
Survey," 2006). Corruption is disastrous to the sound functioning of any government department.
Corruption has been an intractable problem in many developing countries; especially where it
has become systematic to the point where many in government have a stake. It diverts decision-
making and the provision of services from those who need them to those who can afford them
(Langseth, Kato, Kisubi& Pope, 1997).
Lawal (2000) further asserts that corruption has been rampant among the senior civil bureaucrats
to whom the public funds meant for developmental purposes are entrusted. Generally, wide-scale
embezzlement by officials of the grassroots has made the needed development of the grassroots a
tall dream and has rendered them financially incapable to discharge their constitutionally
assigned responsibilities hence compromising service delivery.
At every stage of public procurement, there are risks of integrity. During the pre-bidding period;
starting from needs assessment, common risks include lack of adequate needs assessment,
planning and budgeting of public procurement, requirements that are not adequately or
objectively defined, an inadequate or irregular choice of the procedure and a timeframe for the
preparation of the bid that is insufficient or not consistently applied across bidder s (OECD,
2007). All these concern the function of procurement planning. Should local government's
procurement system fail to manage these risks, accountability and eventual service delivery is
seriously threatened.
Despite the increase in the total amount of funds available to local government in Kenya, its
economic and financial profile is still poor as compared to the development programme it is
expected to carry out. This situation is not unconnected to the mismanagement and
embezzlement of these funds by the local councils (Bailey, 1998).
12
Ahmed (2005) further noted that many local governments in Kenya, however, are unable to
deliver services to residents. He said this might be because of lack of finances or lack of capacity
to provide a good service at an affordable price. So local governments should find other ways to
ensure that the services are improved and reach the people most in need of them.
In the provision of public services, it is a challenge to get the actual providers to be accountable
for quality and efficiency as well as to have the resources and management authority to do the
job well. The general feeling in the hotspots is that political leadership lacks responsiveness to
issues raised by communities, incompetent, prone to corruption and with high degree of
disregard for the communities which also compromises the delivery of services in local
governments.
The other contributing factor is that local ward committees are not fully operational, resulting in
poor communication with communities. Ward committees have been the focus of considerable
attention by government as well civil society, with substantial investment already made in an
attempt to ensure that these structures have the necessary capacity and resources required for
them to fulfill their envisaged roles as the voices of communities (Langseth, 1997). At the same
time, questions that are often asked are how effective are these institutions; whether they are
useful conduits for community involvement in local governance; whether, as created space for
public participation, they are inherently capable of playing the critical role expected of them
towards service delivery.
The local government Act requires all local governments to “take reasonable steps to ensure that
their resources are used effectively, efficiently and economically”. Good financial management
is the key to local delivery. It is quite disturbing to note that most local governments are
generally associated with the worst form of financial management. Corruption, financial
mismanagement and non-compliance with financial legislation are common. Consequently, this
result to poor performance thus the delivery of social services is compromised.
Parasuraman et al (1996) points that skills deficit within local governments remains a major
challenge. A significant number of local governments do not have the managerial,
administrative, financial and institutional capacity to meet the rising needs of local people. This
situation is exacerbated by the decline of municipal professional and poor linkages between local
13
government and tertiary education sector. As a result these local governments cannot meet their
required performance standards hence impacting adversely on the delivery of services.
Indiscipline is rampantly perceived and well pronounced among the workers in local government
(Hernon& Whitman, 2001). They further said that senior officers who travel to their families
away from their offices on Friday return very late the following Monday or may decide to stay
back till Tuesday; and the junior members of staff who directly or indirectly observe this more
often than not are in the habit of playing truant with their jobs. Little or no commitment to duty
has become a rule rather than an exception.
Hard-earned and limited resources accrued to and raised by local government are always
mismanaged. Priorities are misplaced; projects are done not according to or as demanded by the
people but regrettably in tune with the selfish end and aggrandizement of the political leadership
in collaboration with the senior bureaucrats at the local government level of administration
(Johan, 2006).
Johan (2006) further came up with some important service delivery improvement slogans. He
said he who fails to plan for service delivery, plans to fail delivering services to the public. And
if it cannot be measured, it cannot be improved. If we only plan to comply with regulations, we
are not managers, we are robots. What we plan we must implement. What we implement, we
must monitor. We should not be afraid to ask the customer (citizens). They really do know best
what they need and what they get. It is not always the same thing.
Basheka (2004) argues that procurement planning is one of the primary functions of procurement
with a potential to contribute to the success of local government operations and improved service
delivery. It is a function that sets in motion the entire acquisition/procurement process of acquiring
services in local governments. Increasing the effectiveness, efficiency and transparency of public
procurement systems is an on-going concern of governments in Developing Countries and the
international development community. It has been widely recognised that increasing the
effectiveness of the use of public funds, including funds provided through official development
assistance (ODA) requires the existence of a national procurement system that meets international
standards and that operates as intended (Mawhood, 1983).
14
Mullins (2003) asserts that the contribution of procurement planning in facilitating an efficient
and effective service delivery in public sector organizations is generally undisputed in both
developed and developing countries. Its contribution can be at both central and local government
levels of public sector management. His findings revealed a significant positive relationship
between procurement planning and service delivery in local government procurement systems in
Kenya. These results are compared to international research findings, and suggestions are offered
for management, policy making, and future research.
Procurement Policy Manual (2009), procurement planning drives different expected results
which are different from business as usual such as: reduction in the number of o verall contract
awards, understanding and managing total cost of ownership, more purchasing options (lease vs.
buy), data-driven decision making, improved risk mitigation prior to award, more identification
of opportunities where suppliers can add value, improved relationships with suppliers which
leads to improved service delivery
Mawhood (1983) further adds that effective procurement planning is an important route towards
securing the right service to be delivered to the public, and also maximizing the level of service
provision which can be achieved within the local Supporting People. A procurement plan helps
Procuring Entities to achieve maximum value for expenditures on services to be delivered and
enables the entities to identify and address all relevant issues pertaining to a particular
procurement before they publicize their procurement notices to potential suppliers of goods, works
and services.
15
CHAPTER THREE:
METHODOLOGY
3.0 Introduction
This chapter shows a description of research design, study population, sampling design which
included the sampling method, sampling procedure and sample size, sources of data collection,
data collection methods, data processing, analysis, and presentation, and the limitations
encountered by the researcher.
Both case cross section study and description designs were employed to collect primary and
secondary data. Data was collected using focus group discussion and observation whereas
descriptive was used to collect primary data using interviews and questionnaires. These designs
enabled the researcher to describe the topic as well as giving the description of a unit sample in
depth. Therefore qualitative description of procurement planning and services delivery were
ensured. It combined both qualitative and quantitative approaches. Qualitative approaches
included use of interviews, documentary review and observations. These provide details that
come from direct quotations from the exact words said by respondents as suggested by Kakooza
(2002). Quantitative approaches involved use of descriptive statistics generated with frequency
tables and pie charts. These approaches were adopted to enable the researcher collect and
analyze relevant information concerning peoples’ opinions about the impact of procurement
planning toward service delivery in Mukono district local government Local government
Mugenda (2003) defines population as an entire group of individuals, events, objects having a
common observable characteristic. A target population is defined as that which the researcher
wanted to generalize the results of the study. Brinker (2006) says that, a target population is a
large population from whom the sample population is selected from. The population studied
include the staff from Mukono district and residents of Mukono district who are the beneficiaries
of the services provided. A sample of 50 respondents out of the total of 100 of the study
16
population will be selected and approached by the use of simple random sampling method and
interviewed at different levels.
The sample size consisted of 50 respondents from the study area and this selected as in table1
below.
Beneficiaries (residents) 75 37 74
Total 100 50 100
Source: Primary Data 2014 (Mukono district Local government)
The study used a sample size of 50 respondents because it was large enough compared to the
study population. In addition, the study determined the sample size of the respondents by using
the following formulae.
N = Total population.
Kothari (2011) defines a sampling procedure as a definite plan for obtaining a sample from a
given population. Simple random sampling was used for this study. The study used purposive
during the process of data collection from the study respondents. The study used purposive
sampling technique since it allowed the researcher to select a sample with experience and
knowledge about the study variables.
17
3.4 Sampling Design and Procedure
The sampling procedures that were used were stratified random sampling and purposive
sampling where respondents who conform to the purpose of the study was selected from
different sections of the Mukono district local government. This was done in order to select
respondents with the required information.
The study used both Primary and Secondary Data. Primary data was collected by use of
questionnaires in the field while secondary data was collected from available published records
such as textbooks, journals, magazines, manuals, internet and Kyambogo University library
among others.
The researcher used closed ended questions. They were administered to 50 respondents. This
helped to obtain the required data. The questionnaires were answered by respondents and were
later collected by the researcher. Quite a lot of information in a relatively short period of time.
The questionnaires collected data from procurement planning and non professionals as well as
Municipality authorities working hand in hand with the procurement department and selected
staff from the Town management selected from the study population. The questionnaire was
chosen because it’s relatively cheap to administer to respondents scattered over a large area. In
addition, the method provides information with minimum errors and ensures a high level of
confidentiality.
Though the information is necessarily more limited, it can still be very useful. For example,
where certain clearly defined facts or opinions have been identified by more qualitative methods,
a questionnaire can explore how generally these apply, if that is the matter of interest.
18
3.6.2 Measurement of Variables
The study will use a 5-point linkert scale to measure the variables which are procurement
planning and service delivery to come up, with findings. This ranged from strongly agree to
strongly disagree (strongly agree, agree, not sure, disagree, and strongly disagree).
3.6.3 Interviews:
Interviews helped the researcher to obtain more information from the respondents as the
researcher was able to make interactions with the respondents by asking questions. During this
time the researcher was using an interview guide that enabled her to collect information related
to the study objectives.
In addition to interview guides, informal interviews were also used to solicit responses and these
were conducted by the researcher. These provided confidence and protection to the respondents
and will thus open up for more information. This tool further helped in the respondents who were
not able to write and read and also helped the researcher to make observations as she takes note
in his notebook. They provided guidance about what to do or say next after the interviewee has
answered the last question. A guide was necessary because the study population is very
sentimental and therefore requires appropriate approach. However interview guides are time
consuming both in terms of data collection and analysis.
This includes data collected from different sources such as the internet, newspapers, text books,
magazines and journals. This provided information helpful during the study and opened up the
researcher’s mind in understanding the study variables of Procurement planning and services
delivery in Uganda Local Government in depth and helped him to make analysis of the past
trends of various authors in relation to the topic under study.
After the approval of the research proposal by the University research supervisor, a letter of
introduction was obtained from the department of Procurement and Marketing of Kyambogo
University which was presented to the management of Mukono district Local government
19
asking for permission to carry out the research in their area. The researcher then distributed
questionnaires among the selected groups for filling. Later, interviews were given to selected
groups and answers received were used in writing the final reports. Finally, the researcher
collected the filled questionnaires; which were statistically analyzed and interpreted to make a
valid conclusion in the final analysis.
After collecting the data, it was recorded manually. This involved editing, coding, classifying
and tabulating the data to a representative level for analysis. Editing was done by selecting the
valid and useful information from the study respondents’ responses that were in relation to the
study objectives. Coding was done for proper analysis, noting the relationship among the data
given by the respondents. The researcher classified the data categorically to ensure that every
respondent was able to bring out their essential pattern.
The data collected was processed and analyzed using Statistical Package for Social Sciences
(SPSS) in order to come up with frequencies and percentages and the relationship between the
variables was established and tested using Pearson correlation. Micro soft word and excel was
used in drawing tables so as to clearly present the findings.
20
CHAPTER FOUR
4.0 Introduction
This chapter presents analyses and discusses the study results obtained from the field regarding
the impact of procurement planning on service delivery in Mukono Local Government. It was
based on the study objectives which were to examine the roles under taken by the different
stakeholders during Procurement Planning in Mukono Local Government, to establish the factors
affecting service delivery in Mukono Local Government and to establish the relationship
between Procurement Planning and Service Delivery. The study was localized Mukono Local
Government.
The background characteristics of the respondents were composed of age bracket, marital status,
education level and marital status of the respondents. Background characteristics like Gender,
marital status, age and education level were very important parameters that can have a bearing on
any phenomenon in any society. It can indicate how informed the society is including having
implications on the study. These were looked at in relation to the procurement planning and
service delivery in Mukono Local Government.
21
4.1.1 Gender of the respondents
Figure 1: Showing the sex distribution of the respondents
62
38
Male Female
From the figure 1 above, study findings revealed that the number of respondents in the study area
by gender. Demographic data on the general respondent’s revealed unequal distribution as the
majority of the respondents were males with 62% as opposed to the females with 38%. The study
findings indicate that males had a bigger share of participation than females in the study.
Although the proportions of women is more than that of men in terms of population of the
communities, in the world of work there are generally fewer females compared to males because
males are considered to be more powerful and strong compared to female and that is why they
more males in the work world..
22
4.1.2 Age distribution of the respondents
Figure 2: Showing the Age distribution of the respondents
64
20
16
Figure 2 above shows that 64% of the respondents were between 30-40 years, 20% were between
15-30years and 16% were 41years and above. This indicates that the respondents in all
categories sampled that is to say (staff in the tender board, public and tenderers from the Mukono
Local Government were mature respondents with a diverse of data about issues that concern the
world of work and have responsibility in the Town Council local government tender board,
(contract awarding and management) has knowledge of the procurement planning and service
delivery in the Municipality.
23
4.1.3 Marital status of the respondents
Figure 3: Showing Marital status of the respondents
14
6
0
Figure 3 above shows that 6% of the respondents were single, 80% were married, 14% were
widowed. These findings show that a big percentage of the respondents sampled were married.
These were of mature age with experience in the world of work and the Municipality service
commission gives responsibilities because they are considered responsible and understand the
impact of procurement planning and service delivery in the Municipality.
18 18
10
4
24
Source Field data 2018
From the table above, the highest percentage that is 50% of the respondents had not attained any
level of education and these were found among the beneficiaries of the services provided, these
were followed by 18% who had attained diplomas and degrees, 10% with certificates and lastly
4% with masters these were mostly the workers in the town council. This implies that the
workers had acquired some skills to work in local government.
Agree 33 66.0
Disagree 0 0.0
Total 50 100.0
25
Table 3: Showing Each Entity in the LG Defines its Procurement Requirements
Agree 24 48.0
Disagree 1 2.0
Total 50 100.0
Agree 27 54.0
26
Disagree 1 2.0
Total 50 100.0
Agree 24 48.0
Disagree 0 0.0
Total 50 100.0
27
Mawhood (1983) said that the integration of diverse decision helps to come up with an
acceptable decision for implementation.
Agree 28 56.0
Disagree 1 2.0
Total 50 100.0
Table 7: Showing Citizens Assist the Town Council to decide on Services to be provided.
Agree 23 46.0
28
Not sure 2 4.0
Disagree 2 4.0
Total 50 100.0
29
Table 8: Showing Citizens also Work With NGOs, CBOs and Political Parties to Develop
Proposals.
Agree 27 54.0
Disagree 0 0.0
Total 50 100.0
Agree 21 42.0
30
Disagree 0 0.0
Total 50 100.0
Agree 26 52.0
Disagree 0 0.0
Total 50 100.0
31
incapable to discharge its constitutionally assigned responsibilities hence compromising service
delivery. Lengseth et al, (1997) also found out that corruption affects the delivery of services
since money meant for them is embezzled.
32
Table 11: Showing the Town Council Lacks Finances to Buy the Services.
Agree 24 48.0
Disagree 2 4.0
Total 50 100.0
Agree 25 50.0
33
Disagree 1 2.0
Total 50 100.0
Table 13: Showing Poor communication with communities in Mukono Local Government
Agree 25 50.0
Disagree 13 26.0
Total 50 100.0
34
not sure whether poor communication is a factor hampering the delivery of services. This
therefore implies that in some departments communication is still a problem.
Table 14 : Showing the Town Council Faces a Challenge of Limited Skilled Personnel
Agree 18 36.0
Disagree 5 10.0
Total 50 100.0
35
Agree 5 10.0
Disagree 27 54.0
Total 50 100.0
Source Field data 2018
Table 15 above shows that 54% and 12 % of the respondents disagreed and strongly disagreed
respectively with the view that projects are done according to or as demanded by the people.
16% of the respondents were not sure, 10% and 8% of the respondents agreed and strongly
agreed respectively that projects are done according to or as demanded by the people. Basing on
the highest percentage (54%), the study concludes that some projects are not done according to
peoples demand.
36
SECTION C: Relationship between procurement planning and service delivery
Table 16: Showing Procurement Planning sets in motion the Process of Acquiring Services.
Agree 31 62.0
Disagree 0 0.0
Total 50 100.0
Agree 26 52.0
37
Disagree 0 0.0
Total 50 100.0
Agree 26 52.0
Disagree 0 0.0
Total 50 100.0
Agree 19 38.0
Disagree 0 0.0
Total 50 100.0
39
N 60 60
N 60 60
Table 20 indicates that there is a very strong positive relationship between procurement planning
and service delivery at r= 0.715 and at level of significance 0.05, this implies that the good
procurement planning improves on service delivery in the society. Therefore in order to improve
on service delivery, there is need to develop a procurement plan. Mullins (2003) also found out
that there is strong positive relationship between procurement planning and service delivery.
CHAPTER FIVE
5.0 Introduction.
This chapter summarizes all findings reported in chapter four according to questions of the study,
draws conclusions, suggests recommendations and also proposes some areas for further study.
40
5.1.0 Summary of Findings
The study was comprised of 50 respondents of whom 62% were male and 38% were female.
Their level of education included 50% of the respondents had not attained any level of education
and these were found among the beneficiaries of the services provided, these were followed by
18% who had attained diplomas and degrees, 10% with certificates and lastly 4% with masters
these were mostly the workers in the town council. The services delivered included Garbage
collection, Security lights, Road rehabilitation and maintenance, Water provision, electrification,
new roads.
The study found out that the following roles; each user department prepares a multi annual work
plan based on the approved budget, each entity in the LG defines its procurement requirements,
the procuring entity is responsible for dividing requirements allocated to a single procurement
process into separate lots, the procuring unit brings about integration of the diverse decision and
activities during procurement planning, the accounting officer ensures availability of sufficient
funds to run the plans and that it is budgeted for, the citizens assist the town council to accurately
decide on which services to expand and provide, the citizens also work with NGOs, CBOs and
political parties to develop proposals for the council to consider during planning and also Citizen
representatives play a great role in the evaluation of potential service providers.
A number of factors were found to be affecting service delivery in Mukono Local Government
and these included the following among other factors; corruption, lack of finances to buy the
services, the challenge of getting the right service provider with the equipments to do the job
well. The town council also faces a challenge of limited skilled personnel to meet the rising
needs of local people, Projects are done not according to or as demanded by the people, and also
poor communication with communities in Mukono Local Government has also hampered the
delivery of services in the area.
41
5.1.4 Relationship between Procurement Planning and Service Delivery.
In addition to Mullins (2003) findings that procurement planning affects service delivery, this
study also found out that there is a strong positive relationship between procurement planning
and service delivery at r= 0.715 and at level of significance 0.05. Furthermore the study found
out that Procurement planning sets in motion the entire procurement process of acquiring
services in local government (Table 19), it also facilitates efficient and effective service delivery
in public sector organization (Table 4.20). Also findings revealed that procurement planning and
service delivery of products procured is highly related and that unethical practices of staff is a
contributing factor to poor quality products being procured and that bidders practices in
procurement should also be checked.
5.2 Conclusion
In conclusion, regarding the roles undertaken by the different stakeholders, the preparation of a
multi annual work plan based on the approved budget was identified as the major role,
corruption hampers the provision of services was identified as the major factor affecting service
delivery and relationship between procurement planning and service delivery it was pointed out
that there is a strong positive relationship between procurement planning and service delivery at
r=0.715 at level significance 0.05, this implies that a better procurement plan leads to better
delivery of services while poor planning hampers the delivery of services. Therefore
procurement planning is one of the primary functions of procurement with a potential to
contribute to the success of local government operations and improved service delivery.
Government should increase funding for the maintenance of community and feeder roads.
Corruption should be reduced by enforcing of strict rules, giving penalties on those involved and
also increasing of salaries of the civil servant can also reduce on corruption.
Concerning limited skilled personnel, the local government should train the recruited workers so
as to equip them with the necessary skills, and also encourage them to go for further studies.
42
They should first provide projects which are highly demanded by the local people, this will not
only help them to know that their views are considered but also will help to improve on public
confidence in the local government. The procurement team should carryout research so as to find
out which service providers are able and have the equipment to perform the required work in the
given time possible. Therefore, organizations with established performance measures for their
procedures, processes, and plans experience lower customer dissatisfaction and employee
turnover than those which do not have. The issue is to ensure that measures are being
implemented and measure what they were intended to measure. Implementing purchasing
measures is not as easy as it may sound. It requires preparation, coordination, team work,
constant communication and feedback.
Findings also showed that self-efficacy relates to accountability and as well predicts perceive
service quality. Based on this, the PPDA should train procurement officers in acquisition of self-
efficacy: it’s necessary for officer to possess skills in self-mastery, role-modelling and even
verbal persuasion to be considered as self efficiency. This in turn will lead to perceived service
quality
43
It is important to offer ethics education to employees of the organization in order to ensure they
serve in ultimate objectivity, accountability, and non discrimination. The organization code of
ethics should be well put in place and adhered to; in order to guide the daily operations of
employees and to provide them with guiding principles.
The organization should train suppliers / bidders on the proper procurement procedures and
practices so as to create consistency and to reduce cost. The government should look into
improving payment and working conditions of its employees so as to deter them from potential
malpractices.
The study particularly focused on Mukono Local Government and therefore further research
should be carried out on other local governments. Further research should also be carried out on
the quality of services delivered for the public. There is also need to consider procurement
perceived service quality by considering attributes of value for money, effectiveness and
efficiency that are characterized by procurement officers as perceived by user departments within
the PDE’s in central government. There is also a need to investigate and ascertain why key
personal competences are significantly related to accountability and perceived service quality yet
operant competences are not significantly related to accountability and perceived service quality.
44
REFERENCES
Agaba, E & Shipman, N. (2007). "Public Procurement Reform in Developing Countries: The
Ugandan Experience." Boca Raton, FL: Academics Press.
Ahmed, J., Devarajan, S., Khemani, S., & Shah, S. (2005). Decentralization and Service
Delivery (World Bank Policy Research Paper 3603). Washington, DC: World Bank.
Assistance Committee (2005). Harmonizing Donor Practices for Effective Aid Delivery. Vol. 3.
Strengthening Procurement Capacities in Developing Countries. Paris, France:
Bailey, P; Farmer, D; Jessop, D; & Jones, D. (2012). Purchasing Principles and Management,
eight edition. Prentice Hall. Financial Times: Great Britain
Government of Uganda (2003). The Public Procurement and Disposal of Public Assets Act, 1,
2003. [Online]. Available at www.ppda.go.ug.
Hernon, P. & Whitman, J. R. (2001). Delivering Satisfaction and Service Quality: a Customer-
based Approach for Libraries. Chicago: American Library Association.
45
IDASA (2010), the State of Local Government and Service Delivery In South Africa: Issues,
Challenges And Solutions Local Governance Unit (LGU)
Johan, N. (2006). Planning for Service Delivery Improvement. S D R Vol. l 5 No. 2 pages
106- 109.
Kabaj, O. (2003). The Challenge of African Development. Oxford, UK: Oxford University
Press.
Langseth, P.; Kato,D. ; Kisubi, D. ; & Pope, J.(2014). Good Governance in Africa. A Case study
from Uganda. EDI Working Papers, Economic Development Institute of the World Bank.
Ministry of Finance, Planning and Economic Development (2006). Uganda Poverty Status
Report2005, Kampala.
OECD Economic Commission of Africa (2003). Public Sector Management Reforms in Africa.
Addis Ababa, Ethiopia: Author.
Parasuraman, A., Berry, L. Leonard, & Zeithaml ,A. Valarie. (2015). The behavioral
Consequences of service quality. Financial Times.
Procurement Policy Manual (2009). IT Procurement Planning and Strategic Sourcing. Vaginia
Information Technologies Agency.
Sasser, W.E., Olsen, R.P. and Wyckoff, D.D. (2016) Management of Service Operations Text,
case, and Reading. Boston, NY: Allyn and Bacon, Inc.,
The Public Procurement and Disposal of Public Assets Act, (2003). Uganda Bureau of
Statistics (2005).
46
APPENDICES
APPENDIX I: QUESTIONNARE
Dear respondents,
I am MUZOORA JOSEPHINE a bachelor of Procurement and Logistics student of Kyambogo
University of science and technology carrying out a study on the Procurement Planning and
service delivery in Mukono local government. I humbly request you to spare some few minutes
of your time and answer these questions below. The study is strictly for academic purposes and
will be treated with utmost confidentiality. Your cooperation is highly appreciated.
4. Marital status
Single
Married
Widowed
Separated
5.Educational level
Certificate
diploma
Degree
Post graduate
Other................................................................................
47
SECTION B: ROLES UNDER TAKEN BY THE BY DIFFERENT STAKE HOLDERS.
48
How do you rate the service delivery in your organisation?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Which people in your organisation are responsible for ensuring service delivery in your
organisation?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
The following abbreviations will be used:
Strongly agree (SA), Agree (A), Not Sure (NS), Disagree (D), and Strongly Disagree (SDA)
The following factors affect the delivery of services in Mukono local government;
Statements SA A NS D SDA
A
Corruption hampers the provision of services since funds meant for
these services are embezzled.
In Town, the provision of better infrastructures such as roads and
electricity has lagged being over years.
49
SECTION D: RELATIONSHIP BETWEEN PROCUREMENT PLANNING AND
SERVICE DELIVERY
In your own view, is there a relationship between procurement planning and service delivery
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Apart from procurement planning, what other factors affect service delivery in organisation?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
The following abbreviations will be used: Strongly agree (SA), Agree (A), Not Sure (NS),
Disagree (D), and Strongly Disagree (SDA)
Statements SA A N D SDA
S A
Procurement planning sets in motion the entire procurement
process of acquiring services in local government.
Procurement planning facilitates efficient and effective service
delivery in public sector organization.
Procurement planning helps to achieve the maximum value for
expenditures on services to be delivered.
There is a relationship between procurement planning and service
delivery.
50
APPENDIX II: TIME FRAME WORK 2017/2018
OCT NOV DEC JAN FEB MAR APR May JUN JULY AUG
Proposal
writing
Data
collection
Data
analysis
First draft
submission
Handing in
51
the last
collected
draft.
Stationary
Transport 20,000
52
APPENDIX IV: LETTER OF INTRODUCTION
53