Ambo

University
Department of Accounting and Finance

Research Methodology Term Paper

“Challenges and prospects of electronic
based procurement Application in Ethiopia”

Prepared by: - Ketema Asfaw #ID: - PDE/57077/14

December, 2021
TABLE OF CONTENT

Contents
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 Table of content......................................................................................................................ii
List of Table and Character..................................................................................................v
Declaration.............................................................................................................................vi
Acknowledgement................................................................................................................vii
Abstract................................................................................................................................viii
Acronym.................................................................................................................................ix
Chapter One............................................................................................................................1
1. Introduction............................................................................................................................1
1.1 Background of the study.................................................................................................1
1.2 Review of Ethiopian Procurement System...................................................................1
1.3 Organizational Profile....................................................................................................3
1.4 Statement of the problem...............................................................................................3
1.5 Research Question...........................................................................................................4
1.6 Research Objective.........................................................................................................4
1.6.1 General objective of the Study……………..……………………………………4

1.6.2 Specific Objective of the study …………………………………………………..4

1.7 Significant of the Study........................................................................................................4

Chapter Two...........................................................................................................................6
2. Literature Review...................................................................................................................6
2.1 Introduction.....................................................................................................................6
2.2 Lack of Employee competency.......................................................................................7
2.3 Inadequate Technological Infrastructure.....................................................................7
2.4 Security of Procurement Transaction Data..................................................................7
Unit Three...............................................................................................................................9
3. Research Methodology...........................................................................................................9
3.1 Research Design..............................................................................................................9
3.2 Population, Sample size and sample techniques..........................................................9
3.3 Source of Data collection................................................................................................9
3.4 Data Analysis and Presentation.....................................................................................9
3.5 Ethical Consideration.....................................................................................................9
Chapter Four........................................................................................................................10
4. Data Analysis and Presentation..........................................................................................10
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 4.1 Introduction...................................................................................................................10
4.2 Analysis of Data.............................................................................................................10
Chapter Five.........................................................................................................................15
5. Summary, Conclusion and Recommendation....................................................................15
5.1 Summary........................................................................................................................15
5.2 Conclusion......................................................................................................................15
5.3 Recommendation...........................................................................................................15
Reference...............................................................................................................................17
Appendix...............................................................................................................................19

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 LIST OF TABLE AND CHARACTER

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Table 4.1 Demographic Characteristics of the Respondent ---------------------------------10
Table 4.2 Implementation of E procurement ---------------------------------------------------11
Table 4.3 Attendance of any Training related to e procurement------------12
Table 4.5 Sufficiency of the infrastructure supporting E procurement------------------- 12
Table 4.4 Commitment by the organization to provide e procurement competency-----13
Table 4.5 Sufficiency of the infrastructure supporting E procurement---------------------13
Table 4.6 in adequate technological infrastructure in E procurement implementation-14
Table 4.7 Security of the procurement transaction data -------------------------------------14

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 DECLARATION
I, the undersigned, declare that this is my original work and has not been presented for a degree
in any other university, and that all sources of materials used for the thesis have been duly
acknowledged.

Declared by: - Ketema Asfaw

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 ACKNOWLEDGEMENT
I also sincerely acknowledge the Federal procurement and property management agency staffs
and all other people who helped me to gather data and helped me through this period.

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 ABSTRACT
This paper sought to “Challenges and prospect of electronical based procurement Application
in Ethiopia. E-Procurement refers to the use of electronic methods in every stage of the
purchasing process from identification of requirements through payment and potentially to
contract management (Davila et al., 2003), The main objective of this study is to application of
electronic e procurement and to identify the major challenges and to provide appropriates
recommendation to the federal procurement and property management agency. The study is use
mixed descriptive design to collect both quantitative and qualitative data that described the
prospects and challenges in the implementation of e-procurement. Use both primary and
secondary data for the study and used a questionnaire for primary data collection and
Secondary data was obtained from relevant literature like journals, FPPA manual and strategic
plan, internet and books. After gathering all required qualitative and quantitative information,
the researcher has had analyzed the collected data and presented it through tables, percentages
and frequencies. From the study, it was revealed that employee competency, , inadequate
technological infrastructure and security of procurement transaction data were challenges to e-
Procurement implementation in the organizations under review. The paper recommends among
others that due to continuous turnover of employees, continuous capacity building skill training
for staff is required on e-Procurement. In addition formal recognition backed by legislation of the
electronic procurement transactions should be encouraged. Integration of the institutions system
and those of the suppliers, demonstration of the positive impact of the system, and installation of
linkages between all Governments agencies should be encouraged

Key words: - E Procurement, Federal procurement and Public Agency

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 ACRONYM
FPPMA= Federal procurement and property Management Agency

GOE= Government of Ethiopia

MOFEC= Ministry of Finance and Economic Cooperative

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 CHAPTER ONE

1. Introduction
1.1 Background of the study

Electronic procurement has been widely described, in its most basic form, as using electronic
means (the Internet, Web, e-mail) to buy products and services over the Internet (Carayannis and
Popes cu, 2005; Davila, Gupta and Palmer, 2003; Roche, 2001; Subramaniam and Shaw, 2004;
Van Weele, 1994). Within this context, electronic procurement entails electronic ordering,
bidding and rendering via portals, extranets, private platforms, marketplaces, and/or electronic
data interchange (EDI) (Dooley and Purchase, 2006).

In its most basic definition, e-procurement is the streamlining of procurement/purchasing

processes by eliminating traditional paper-based documents such as purchase orders, requisition
forms, invoices etc and replacing them with electronic based paperless processes. It is a powerful
business tool that can revolutionize the buying function of an organization by streamlining and
automating the labor intensive procurement routines which in return enable employees to gain
direct access to their suppliers’ systems, visually confirm technical specifications and view
product pictures, price points, and detailed product descriptions (Commission of the European
Communities, 2004).

Companies that use e-procurement technologies save 42% in purchasing transaction costs due to
the simplification in the purchase process and the reduction in purchasing cycle time, which in
turn, increases flexibility and provides more up-to-date information at the time of placing a
purchase order. Thus, e-procurement tends to leverage the bargaining power of companies
willing to establish contracts with their preferred suppliers and as a result, the overall maverick
buying is lower (Hawking et al, 2004).

1.2 Review of Ethiopian Procurement System

The government of Ethiopia has initiated several steps to reform public financial management to
assure good governance particularly value-for-money, transparency and accountability in public
procurement. This is now further strengthened with the Directive issued by the Ministry of
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Finance and Economic Cooperation (MOFEC) Pursuant to Article 78/2 of the Ethiopian Federal
Government Procurement and Property Administration Proclamation no 649/2009 and Article 19
of the definition of powers and duties of the Executive Organs of the Federal Government of
Ethiopia Proclamation No 471/2005/6 (as amended). The Federal Public Procurement and
Property Administration Agency (FPPA) is established and functional as a regulatory body for
procurement and property management. Regional states have established similar regulatory
bodies.
The Government of Ethiopia has realized the challenges in the public financial management and
has taken up initiations for the introduction of e-Procurement system strengthening the Public
Financial Management systems. Financial governance is the purpose of the Public Finance
Management Reform. Good governance in the public procurement sector plays a significant role
in the success of the public expenditure Management as about 65percent of the Government of
Ethiopia’s (GoE) annual budget is expended through procurement, mostly in transport, energy,
water, agriculture and education; this represents an annual expenditure of about US$3.5 billion.
Introducing e-procurement is expected to help manage the expenditure of the huge public fund
through public procurement with greater transparency, efficiency, and effectively enhancing
compliance, providing a procurement platform with equal treatment to all bidders, applying same
rule of law, maintaining integrity of the government buyers as well as private sector, and at the
same time raising awareness of the general public about the expenses of the government.
Ethiopia may save a huge amount of money with the efficiency gain through the standardization
and automation of the procurement processes through e-Procurement. There will be a $35
million saving annually even if the saving is taken conservatively at just one percent (1%) of the
annual budget (including lower administrative costs, less paper and travel time, and other). This
saving is a lot more than the planned expenditure to design and implement e-procurement
system. The cost-saving impact of e-procurement will be observed in the medium term (if not
sooner), suggesting that supporting e-procurement is well justified. Countries around the world
have the experience of saving from 5% to 20% in different procurement settings. The FPPA is
mandated to lead the e-Procurement initiative in the country, and is working in coordination and
collaboration with MOFEC and Ministry Communication and Information Technology (MCIT)
as well as other stakeholders. (E-procurment strategy of Ethiopia, 2018-2023 Manual)

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 1.2 Organizational Profile
Vision Statement of FPPPA

Good governance in the public procurement sector through the digital transformation of
procurement procedures that contributes to the Socio-Economic Development of the country

Mission Statement of FPPPA

To attain value for money, transparency, accountability, efficiency and competition in public
procurement by leveraging Information and Communications Technologies

E-Procurement E- Procurement
Steering Committee Management Unit

E- Procurement
Technical Committee

System Helpdesk and

Business Process Development
Administratio support
designing and Training
n

E- procurement System System admin, Support EP user’s 1st

development and Quality database admin, level address email,
Assurance Application Admin phone

Figer 1 Organizational Profile of EPPPA (Source Strategic Plan 2018-2023 of FPPA)

1.3 Statement of the problem

Apart from all the benefits of e-procurement, the process hasn’t been smooth. Its adoption and
implementation has been facing many challenges in both public and private sectors, particularly
at Finance and cooperative office. The benefits of e-procurement implementation in the public
sector where much of the GDP is spent will only be gained if the challenges, that will hinder the
pre-implementation and post- implementations milestones, are addressed well.

M.V. Jooste and C. de W. van Schoor (2003) put forward that countries implemented e-
procurement like South Africa has very unique problems in implementation of e-procurement,
which attributed to limited and monopolized supply base, limited bandwidth, social

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responsibilities, and e-procurement affordability. In this regard, the attempt by the Ethiopian
government to implement e-procurement solutions in a few governmental organizations is met
with various challenges such as failing to retain properly trained procurement officers, e-
procurement solutions that are chosen to best fit the procurement process in Ethiopia, less
supplier participation, limited top management supports, lack of employee and top management
commitment, poor infrastructure and suppliers. Research and policy options for proper e-procurement
implementation in public organizations at national level. Hence, the challenges do come in various forms
and categories. Accordingly, identifying the challenges and critical success factors will help the
implementation of e-procurement solutions to be successful and ultimately to reap the benefits of those
solutions at large.

1.4 Research Question

 The Employment has necessary skills to facilitate the use of e-procurement in public
sector?
 What are the challenges to implement in e-procurement in public sector?
 What is the extent and level of implementation of e-procurement at the public sector to
technological infrastructure availability?

1.5 Research Objective

1.5.1 General Objective of the Study

The main objective of this study is to application of electronic base procurement and to identify
the major challenges and to provide appropriates recommendation public center.

1.6.2 Specific Objective of the study

 To determine whether lack of employee competency is a challenge in e-procurement implementation

among Some Public sector.
 To investigate whether inadequate legal framework is a challenge in e-procurement adoption among Some
Public sector.
 To establish whether inadequate technological infrastructure is a challenge in e-procurement
implementation.

1.7 Significant of the Study

 This study intended to be of great significance in the following grounds;

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  The public sector researched will be able to identify the gaps and therefore improve
performance
 To measure the extent of e-procurement application and reveal areas to be improved for e
procurement in Ethiopia
 Academically the study will add to the existing knowledge on e-procurement.

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 CHAPTER TWO

2. Literature Review
2.1 Introduction
This study’s theoretical framework draws on Croom and Brandon-Jones (2007), which is found
useful to understand key challenges of e-procurement implementation in government sector. In
fact, tendering is one of the aspects of the procurement process where information technology is
useful. Tendering electronically can empower procurement professionals with the means to take
more control over the elements of tendering, providing improved and secure access to tender
information. E-procurement is viewed as “the value-added application of e-Commerce solutions
to facilitate, integrate and streamline the entire procurement process – all the way from initial
strategy development through contract placement to payment” (Laub 2001, Williams &
Hardy,2006). Awareness about e-tendering is an essential factor in promoting widespread
acceptance and usage of e tendering as a better alternative to the traditional paper-based process
(Oyediran & Akintola, 2011). Most developing and developed countries governments would like
to implement public e-procurement technology in such a way, as to enhance transparency and
accountability in government procurement processes. The basic principle of the government
procurement is straightforward: to acquire the right item at the right time with the right price
(Neupane et al., 2012). Procurement is an important and expensive business activity for
organizations, because organizations usually spend a large portion (even up to 70%) of their
revenue/operational budget on purchasing goods and services. A number of public sector
agencies worldwide have identified E-Procurement as a priority for e-Government agenda and
have implemented or are in the process of implementing buy-side E Procurement systems.
However, the scholarly evaluation of E- Procurement initiatives, especially in relation to the use
of Critical Success Factors in E-Procurement is very limited. Despite the numerous benefits of e-
procurement public procurement entities continue to face challenges. These challenges may exist
at the organizational level while executing public procurement. Although these challenges may
be addressed through e- procurement, however adoption of e-procurement itself may have been a
challenge.

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 2.2 Lack of Employee competency
Governments in many countries are making conscious efforts to migrate their procurement
activities towards E procurement platforms; however, there remain a shortage of knowledge of
the actual adoption of e-procurement experiences in the public sector (As-Saber & Rahim, 2011).
To derive the accompanying benefits entailed in e procurement adoption procurement staff must
be competent enough to use the applications of software that offers the organization management
skills to manage their activities for example, distribution chain and value addition in a company
(Beth et al. 2003). This technology is based on databases, which are easily reached on real time
foundation. Mbeche et al., (2014) argued that skills and knowledge of employees influence the
future adoption of a new technology. They further argued that implementing e-procurement
necessitates knowledgeable and skilled employees, therefore, the conspicuous lack of such
personnel has attributed to delay in e-procurement adoption in most public institutions. Literature
has established that there exists a direct correlation between an institution’s capacity to explore
new technology and its pool of human resources. Many companies have pushed hard on
technological and infrastructural improvements and investments. The next wave of
improvements and investment should center on the people who manage and operate the supply
chain. “As e-procurement includes new technologies and changes in traditional procurement
approaches, the need to train staff in procurement practices and the use of e-procurement tools
are critical to the success of an e-Procurement initiative (World Bank, 2003).

2.3 Inadequate Technological Infrastructure

Technological infrastructure plays a key role in adoption of e-procurement without which
integration of public procurement entities will not materialize. Government departments have
different levels of technological infrastructure, against this backdrop this study will seek to
determine the role and impact of this factor in adoption of e-procurement. Suppliers on the other
hand are at different levels of infrastructure development and this play a great role in
understanding how this multiple level of technological infrastructure is integrated to facilitate
adoption of e-procurement. Understanding of the different levels of infrastructure in public
procurement entities and suppliers would help government to quantify the amount of investment
in software and hardware to be channeled into adoption of e-procurement.

2.4 Security of Procurement Transaction Data

Saeed and Leith (2003) examined buyers’ perceptions of e-procurement risks and arrived at three

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dimensions: first transaction risks resulting from wrong products purchased due to incomplete or
misleading information; Second security risks resulting from unauthorized penetration of trading
platforms and failure to protect transaction related data while being transmitted or stored; and
Third privacy risks arising from inappropriate information collection and information
transparency. Yen and Ng (2002) found that both buyer and seller firms in their sample
considered the lack of adequate security measures to protect data as one of the prohibitive and
discouraging factors in implementation of e-procurement. The use of web technology has
brought a myriad of data security challenges in internet transactions because of cybercrimes. The
growth of internet has nevertheless brought serious challenges to business due to data hacking,
internet fraud, Cyber vandalism, and virus and malware attacks (Huber et al. 2004).

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 UNIT THREE

3. Research Methodology
3.1 Research Design
The research adopted a mixed descriptive design to collect both quantitative and qualitative data
that described the prospects and challenges in the implementation of e-procurement in Federal
Democratic Republic of Ethiopia Public procurement and property Management agency. This
research study considered gathering consistent and accurate data, as such; the study adopted the
descriptive approach. Descriptive case study aims at collecting information about people’s
attitudes, opinion, and behvaiour (Orodho, 2002).

3.2 Population, Sample size and sample techniques

The target population for this study was the Federal procurement and property management
agency. However, the study was limited to Federal Democratic Republic of Ethiopia Public
procurement and property Management agency. The sample size of this study was 10
respondents based on the work experience and use stratified sampling technique.

3.2 Source of Data collection

Both primary and secondary data was used for the study. The research study used a questionnaire
as a key instrument for primary data collection. Secondary data was obtained from relevant
literature like journals, FPPA manual and strategic plan, internet and books. The questionnaire
used was structured (close ended) and unstructured (open ended) to elicit both implicit and
explicit responses from the respondents for the analysis of the quantitative data and qualitative
data respectively.

3.3 Data Analysis and Presentation

After gathering all required qualitative and quantitative information, the researcher has had
analyzed the collected data and presented it through tables, percentages and frequencies.

3.4 Ethical Consideration

The researcher has addresses ethical considerations of confidentiality and privacy. A guarantee
has given to the respondents that their names should not be revealed in the research report.
Participation in the study was voluntary, and all participant responses are confidential and can
quiet to respond the question anytime they like.

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 CHAPTER FOUR

4. Data Analysis and Presentation

4.1 Introduction
After the relevant data collected, the analysis was made in the form of meaning full manner so,
in this section the researcher’s present finding concerning the study. The results resented in this
chapter are based on the response obtained from the primary data. The researchers have been
analysis available data in the form of statement, percentage and table the target group of the
study were currently employees and management Federal Public procurement and property
management Agency.

4.2 Analysis of Data

The following data show characteristics of the respondents that were collected to have a clear
picture about personnel involved in the study. The following table deals with these issues in
categories of gender, age, educational level, and position of the staff members in the FPPA and
each of sub categories were expressed in percentages.
Table 4.1 Demographic Characteristics of the Respondent
No. Item Alternative Frequency Percentage
Male 6 60%
Female 4 40%
1 Sex Total 10 100%
20-25 - 10%
26-30 3 30%
31-35 2 20%
2 Age >35 5 50%
Total 10 100%
Degree 6 60%
Masters 3 30%
3 Education PHD 1 10%
Total 10 100%
Management 4 40%
4 Position Non-Management 6 60%
Total 10 100%
5-10 Year 7 70%
Above 11 year 3 30%
5 Number of year experienced
Total 10 100%

According to the above table: -

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 The personal data regarding sex of the employee, 4(40%) of the respondents are females and
6(60%) of them are males. It implies that 60% of the respondents are males and 40% of the
respondents are females. This shows that a few numbers of female employees in the
organization. the employees of the organization are categorized under young age
 Concerning their age, the above table shows that the majority of employees 5(50%) are
above 35 years, 2(20%) are found between 31-35 years, and 3(30%) of them is found
between 26-30 years.
 Regarding to their educational status the majority 6(60%) are respondents are graduate of
degree, 3(30%) of them post graduate and 1(10%) are PHD completed. This implies that the
workforce is well qualified and knowledgeable in their various functions and was therefore in
a position to offer credible information necessary for this study. Respondents were competent
enough to implement e procurement systems.
 The majority 6(60%) of the respondents were engaged in the performance of non-
management functions, while 4(40%) were in managerial positions. The interpretation here is
that all the respondents were from the right target group thus understood the questions in the
questionnaire, thus provided credible responses.
 On the issue of the years of experience of the respondents it was clear from the findings that
majority 7(70%) of the respondents had worked for between 6 and 10 years in their
institutions while 3(30%) had worked for above 11years. The respondents have been in the
organization long enough and therefore were in the position to provide accurate and reliable
information for this study. In addition the experience provided a rich history about the
individual institutions.
Table 4.2 Implementation of E procurement
Response Alternative Frequency percentage
Does your Organization Implemented 8 80%
Not Implemented 2 20%
effectively implemented of E
Total 10 100%
Procurement at Federal Level?

 The results indicate 80% of these organizations had implemented e-procurement while
10% had not. This is illustrated in above table. Implying that, the level of consciousness of e-
procurement implementation amongst these institutions was very high and for that matter
they stood the chance of reaping the potential prospects of the e procurement system.

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 Response Alternative Frequency percentage
Does your organization provide Yes 6 60%
effectively facilitate E-procurement No 4 40%
Total 10 100%
related Training Programme to the
employees?
Table 4.3 Attendance of any Training related to e procurement

 From table 4.3 above, the results showed that majority (60%) of the respondents had
attended e procurement related training programmes, whilst 40% had not attended any
training. For those who had attended training, all asserted that the training had impacted on
them positively since they have been able to improve upon their skills on e-procurement.
These findings were consistent with World Bank (2003) survey which argued that since e-
Procurement includes new technologies and changes in traditional procurement approaches,
the need to train staff in procurement practices and the use of e-Procurement tools are critical
to the success of e-Procurement initiatives.
Table 4.4 Commitment by the organization to provide e procurement competency

Response Alternative Frequency percentage

Does your organization committed Committed 7 70%
Not Committed 3 30%
in the provision of e-procurement
Total 10 100%
competencies and skills to their
employees?

 The results from the table 4.4 above showed that 70% of respondents consented their
organizations were committed in the provision of e-procurement competencies and skills to
their employees while 30% said there was no commitment to e-procurement skills
development. Training should be given a high priority, alongside the need for public sector
agencies to identify the skills required by all those engaged in procurement activities.

Table 4.5 Sufficiency of the infrastructure supporting E procurement

Response Alternative Frequency percentage

Does it meet your organization the Sufficient 3 30%
Un Sufficient 7 70%
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 sufficiency of infrastructure supporting Total 10 100%
the implementation of e-procurement
requirement?

 On the test item to measure the sufficiency of infrastructure supporting the implementation of
e-procurement the findings as per table 4.5 below, showed that majority (70%) of the
respondents considered infrastructure supporting e-procurement insufficient, while 30% said
they were sufficient. For those who considered the infrastructure insufficient, majority cited
lack of fast internet speed and incompatibility issues encountered in an attempt to integrate
the electronic system with other functional departments, such as the Finance Department and
Human Resource Department. Respondents also cited non commitment from management to
embrace e-procurement. These findings were consistent with the commercial report of IDC
(2003) who demonstrated that there remained a slow uptake of e-procurement systems,
emphasizing that system infrastructure-related issues such as software integration were
inhibiting the smooth implementation of the e-procurement systems.

Response Alternative Frequency percentage

Does your organization provide inadequate Moderate extent 3 30%
the Technological Infrastructure for Great extent 7 70%
Very great extent - -
implementation of e procurement? Total 10 100%
Table 4.6 in adequate technological infrastructure in E procurement implementation
 In the above table shows the sufficiency of technological infrastructure for e-procurement
implementation, the findings indicated that majority (70%) of the respondents mentioned to

the inadequate technological infrastructure, to have hindered e-procurement implementation

to a great extent in their organizations. However, 30% said the challenge was to a moderate

extent. In a drive to shift from paper-based transaction to an e- anabled transactional platform

many of the organizations are confronted with huge technological deficiency resulting from

laxity and the unwillingness on the part of management of these organizations.

Response Alternative Frequency percentage

Does your organization is safe Security of Moderate extent 2 20%
Procurement Transaction Data? Great extent 8 80%
Very great extent - -
Total 10 100%
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Table 4.7 Security of the procurement transaction data

 From the above table results, majority (80%) of the respondents said Security of Procurement
Transaction Data was to a great extent a challenge to e-procurement implementation.
However, 20% said it was to a moderate extent.

CHAPTER FIVE

5. Summary, Conclusion and Recommendation

5.1 Summary
Federal procurement and property management agency has a great number of male than female,
The employee of the organization is categorized under young age and most of them are under
graduate holder, more employees of the organization are work experienced, the organization
(Federal procurement and property management agency is implemented e procurement at federal

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level only, although majority of organizations were committed to e-procurement skills
development, capacity building and skill training is still not at 100%, sufficiency of the
infrastructure supporting e procurement of the organization is poor, the technological
infrastructure for e-procurement implementation of the organization is insufficient technological
infrastructure since it plays a significant role in e-procurement implementation and finally
Equally security of procurement transaction data constitutes a major factor that hampered the
implementation of e-procurement.

5.2 Conclusion
 Lack of employee competency has delayed smooth implementation of e-procurement in the
public sector. Although majority of organizations were committed to e-procurement skills
development, training is still not at 100%. It is evident that employees have a great role in
adoption of e-procurement and their skills, competencies and training may influence to a
large extent e-procurement adoption and implementation in the institutions.
 Inadequate technological infrastructure has also been identified as a hindrance since it plays a
significant role in e-procurement implementation in terms of systems integration of the
public sector in Ethiopia.

5.3 Recommendation
 Sufficient training and skill about e procurement has been given to the organizational
employees should help to minimize the hindrance of e procurement. the company employees
well understanding what role they play, how to facilitate the system, have good knowledge
technically and prosperous practices.
 Conscious efforts by management of these institutions to integrate organizations’ system and
those of the suppliers, demonstrating the positive impact of the system, and installing
linkages between all Governments agencies especially at regional state.
 The study adds that due to the sensitivity of the government data and the legal nature of
orders and payments, security of data is critical in e-procurement systems. The e-
procurement system must have mechanisms for identifying and authenticating the user who
places an order so that the supplier knows it is safe to fulfill the order.

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Procurement and Property Administration Proclamation No. 649/2009.

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as a Challenge Facing the Implementations of Electronic Procurement System at Nakuru Water
& Sanitation Services Ltd, International Journal of Science and Research Volume 3 Issue 4, pp.
2319-7064. Available from http//www.ijsr.net, Accessed (20th September, 2015).
Huber, B. Sweeney, E. and Smyth, A. (2004), “Purchasing consortia and electronic markets – a
procurement direction in integrated supply chain management” Electronic Markets, Vol. 14 No.
4, pp. 284-94

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 APPENDIX

Data collection Question

1. Sex: - Male Female

2. Age:- 20-25 26-30 31-35 Above 35

3. Educational Level: - Degree Masters PHD

4. Position: - Management Non-Management

5. Number of Year Experienced: - 6–10-year 11-20 year

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6. Does your organization effectively implement of E Procurement at Federal Level?
Implemented Not implemented
7. Does your organization provide effectively facilitate E-procurement related Training Programme to
the employees? Yes NO
8. Does your organization commit in the provision of e-procurement competencies and skills to their
employees? Committed Not Committed
9. Does it meet your organization the sufficiency of infrastructure supporting the implementation of e-procurement
requirement? Sufficient un sufficient
10. Does your organization provide an adequate the Technological Infrastructure for implementation of
e procurement? Moderate Extent Great Extent Very great extent
11. does your organization is safe Security of Procurement Transaction Data? Moderate Extent
Great Extent Very great extent

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