AWARENESS AND PRACTICES OF PUBLIC PROCUREMENT OF HARARI REGION

MBA THESIS PROPOSAL

BY: ILIYAS SUFIYAN ABDELLA

RIFT VALLEY UNIVERSITY HARAR CAMPUS

DEPARTMENT OF MBA

APRIL 2023
HARAR, ETHIOPIA
AWARENESS AND PRACTICE OF PUBLIC PROCUREMENT OF
HARARI REGION

MBA THESIS PROPOSAL

BY: ILIYAS SUFIYAN ABDELLA

RIFT VALLEY UNIVERSITY HARAR CAMPUS

DEPARTMENT OF MBA

MAJOR ADVISOR: DEBELE T ( PhD)

CO-ADVISOR: MERGA HIRKO MBA& MSc
 ACRONYMS AND ABBREVIATION

HPPPDS Harari Public Procurement and Property Disposal Service office

PPPAA Public Procurement and Property Administration Agency
PE Procuring Entity
CSA Central statistics Agency
MoFED Ministry of Finance and Economic Development
FDRE Federal Democratic Republic of Ethiopia
FA Framework agreement(s)
SMEs Small and medium sized enterprises
IBRD International Bank for Reconstruction and Development
IDA International Development Association
UNCITRAL United Nations Commission on International Trade Law
OECD Organization for Economic Co-operation and Development
OGC Office of Government Commerce
SPPN Scottish Procurement Policy Note
CONIPS Central Procuring Agency of Italy
SKI Central Purchasing body of Denmark
PWGSC Public Works and Government Services Canada
CPB Central Procuring Bodies
WB World Bank
 TABLE of CONTENTS
Title Pages
 LIST OF
Acknowledgements...........................................................................................................i
Table of Contents..............................................................................................................ii
List of Tables.....................................................................................................................v
List of Figures....................................................................................................................v
List of Appendices............................................................................................................vi
Abbreviations and Acronyms..........................................................................................vii
Abstract...........................................................................................................................viii
CHAPTER ONE
INTRODUCTION................................................................................................................1
1.1. Background of the Study.....................................................................................2
1.2. Statement of the Problem.............................................................................................4
1.3. Research Questions........................................................................................................5
1.4. Objectives of the Study.................................................................................................5
Significance oCHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.1. Introduction................................................................................................................8
2.2. Definition of framework agreement...........................................................................8
2.3. The Concept of framework agreements....................................................................10
2.4. Advantage and disadvantage of using FAs...............................................................13
2.4.1. Advantage of FA...............................................................................................13
2.4.2. Disadvantage of FA..........................................................................................13
2.5. Management of framework agreements.....................................................................14
2.6. Legal and regulatory Frameworks............................................................................15
2.7. Centralized and Decentralized procurement..............................................................16
2.8. Common user items....................................................................................................22
2.9. Contract management.................................................................................................23
2.10. Experience of other countries on performing FA....................................................30
CHAPTER THREE:
RESEARCH DESIGN AND METHODOLOGY
3.1. Research Design....................................................................................................34
3.2. Population and Sampling Techniques..................................................................34
3.3. Types of Data and Tools/Instruments of Data Collection.....................................35
3.4. Procedures of Data Collection..............................................................................35
3.5. Methods of Data Analysis....................................................................................35
 LIST
CHAPTER OF
FOUR:
RESULTS and DISCUSSION
4.1. Introduction.......................................................................................................36
4.2. Duration of contracts awarded under FAs and price adjustment.......................36
4.3. Favor to large suppliers….................................................................................37
4.4. Late supply of goods and delivery out of specification......................................40
4.5. Work Force.........................................................................................................42
4.6. Value for money from the bulk purchase..........................................................43
4.7. Procurement threshold.......................................................................................44
4.8. Part one Respondents view Analysis.................................................................45
4.9. Part II Respondents view Analysis.....................................................................48
CHAPTER FIVE: CONCLUSIONS RECOMMENDATIONS
5.1. Summary of major Findings..............................................................................51
5.2. Conclusions......................................................................................................53
5.3. Limitations of the study....................................................................................54
5.4 Recommendations..............................................................................54f the Study 5
LIST OF
 INTRODUCTION

The procurement process is a vital part of the success of any government agency. The procurement
strategy should be developed with an understanding of the government department's mission, vision
and values to ensure alignment with key objectives. Failure to consider these objectives can result
in wasted time, money and resources.

In many developing countries, huge amounts of domestic and foreign resources spend on public
procurement. However, public procurement systems are weak and affect effectiveness of
governance; it is also the center of strong challenges in public sector (Thai, 2009). Moreover, in
developing countries, many procurement activities still suffer from neglect, lack of proper direction,
poor coordination, slow with a number of bureaucracy, lack of open competition and transparency,
lack of accessibility, differing levels of corruption and not having a sufficient trained and qualified
procurement officer, who are capable of conduct and manage the procurement process in a
professional, timely and cost effective manner (Wanyonyi, 2015).

Getahun (2015), conducted a study on Assessment of Procurement Planning and Implementation

Effectiveness in Ethiopia. One of the major finding of the study is that, the procurement plan format
which was not coherent. The study further points out that the plan and reporting format, which was
sent from PPA, does not show the detail lead-time. It only shows the time limit set up for the process.
The performance reporting format does not adhere with the plan format.

Considering above views and the points of various researches, the Harari regional sate public
procurement office is not of exception, thus, according to the annual report of HPPPDSO (2014/2015
and 2015/2016) identified the major factors affecting awareness and practices of Harari region public
procurement. these include: end users not raised their need on time, lack of complete draft
specification, lack of officer’s updating their knowledge and skills and lack of monitoring and
evaluation of procurement function, inadequate technique of proper contract administration such as
after delivery inspection, although there are a broad range of reasons for failures, not having the
fundamentals in place is often a major factor for poor performance. According to this study the lack
of having the basic functional units in place is the major gap identified in Harari regional public
procurement and property disposal office.
 1.1. Background of the Study

The procurement process is a vital part of the success of any government agency. The procurement
strategy should be developed with an understanding of the government department's mission, vision
and values to ensure alignment with key objectives. Failure to consider these objectives can result
in wasted time, money and resources. It is important to know that procurement is not just about
buying goods and services. It is a strategic activity that can affect the bottom line of the government
office. It is therefore critical to align procurement objectives with the overall government office
strategy. This alignment ensures that procurement decisions support the goals and objectives of the
government, (Thai, 2009).

If procurement planning is not given the attention it deserves, the consequences can be dire. Poor
quality services or goods that do not meet the objectives of the government office are some of the
issues that may arise. Procurement planning is a critical process that involves determining the
resources necessary to achieve the organization's goals. Without proper planning, the procurement
process can lead to chaos and costly mistakes. To avoid these pitfalls, it is important to have a
procurement plan that outlines the government department's objectives, timelines, and budget. This
plan should work with all stakeholders, including suppliers, to get everyone on the same page. By
doing this, the government can ensure that it buys the right goods and services at the right time and at
the right prices.

Inadequate transparency in government procurement is an important issue to be addressed.

Transparency is essential to ensure that the selection of suppliers is free from any malpractices and is
conducted in a fair manner. Failure to maintain transparency can result in loss of public trust, legal
disputes, and financial loss. Therefore, in order to maintain the integrity of the system and protect
the public interest, it is imperative that transparency be respected in all government procurement
processes, Getahun (2015).

Market research is crucial in the procurement process. It allows you to identify potential suppliers,
understand market trends and gain insight into the quality of goods and services offered. Inadequate
market research can lead to the purchase of low quality products and (Thai, 2009).
The reason procurement processes are so important is to ensure fairness, transparency and efficiency.
The relevance of ignoring these processes and

1.2. Statement of the Problem

“Procurement is the nerve center of performance in every institution, whether public or private, and
thus, needs a serious attention and tight system to be adopted and followed.” (Thai, 2009).

In many developing countries, huge amounts of domestic and foreign resources spend on public
procurement. However, public procurement systems are weak and affect effectiveness of
governance; it is also the center of strong challenges in public sector (Thai, 2009). Moreover, in
developing countries, many procurement activities still suffer from neglect, lack of proper direction,
poor coordination, slow with a number of bureaucracy, lack of open competition and transparency,
lack of accessibility, differing levels of corruption and not having a sufficient trained and qualified
procurement officer, who are capable of conduct and manage the procurement process in a
professional, timely and cost effective manner (Wanyonyi, 2015).

Memoir (2010), describe one of the major setbacks in public procurement is poor procurement
planning and management of the procurement process which include lack of expressing needs that
are not well identified and estimated, poor drafting specification which means, over and under
specification, unrealistic budgets and inadequacy of skilled procurement staff.

In Ethiopia, more project works are being affected due to the lack of effective procurement process,
which is the main cause of insufficient service delivery in all public sectors (Getahun, 2015).

The key arguments that are usually put forward in support of centralized procurement are: significant
reductions in prices of goods and services; better services at lower cost; increased purchasing power
for the centralized agency; need for technical standardization and the setting and inclusion of
environmental standards for government procurement; lower costs of training staff because they are
fewer in number and centrally located; easier performance management of staff; and encouragement
of good transparency provisions such as efficient recording and reporting of procurement contracts
and transactions, effective management controls (OECD, 2010).

Getahun (2015), conducted a study on Assessment of Procurement Planning and Implementation

Effectiveness in Ethiopia. One of the major finding of the study is that, the procurement plan format
which was not coherent. The study further points out that the plan and reporting format, which was
sent from Procurement Planning Assessment, does not show the detail lead-time. It only shows the
time limit set up for the process. The performance reporting format does not adhere with the plan
format. It only shows the type and the amount of the procurement which does not allow to keep
tracking the performance level.

Based on the annual report of Harari Regional State Public Procurement and Property Disposal
Service Office (2014/2015 and 2015/2016) identified the major factors affecting awareness and
practices of Harari region public procurement. those include: end users not raised their need on time,
lack of complete draft specification, lack of officer’s updating their knowledge and skills and lack of
monitoring and evaluation of procurement function, inadequate technique of proper contract
administration such as after delivery inspection, although there are a broad range of reasons for
failures, not having the fundamentals in place is often a major factor for poor performance. Common
causes of poor performance associated with inadequate fundamentals include: in appropriate
planning prior o the transition from award of contract to the contract execution phase, poor
communication, insufficient source , inadequate governance and confusion of responsibilities, poor decision
making vulnerability to fraud and corruption last but not the least in effective risk identification and
mitigation.

According to public Procurement Manual of The Federal Democratic Republic of Ethiopia ministry
of finance and economic development public procurement and property administration agency

‘Effective management of contracts is essential to ensure that the objectives of the procurement
process are achieved and that all contractual obligations and activities are completed efficiently by
both parties to the contract. The Procurement Unit must ensure that routine monitoring of all current
contracts is maintained so that swift remedial measures can be taken when problems arise, or
preventative action taken when problems are foreseen Getahun (2015.

Public procurement practice in Harari region is essential if practiced well to keep the value for money.
However, the researcher of this study identified a gap that hindered the procurement process and brought
about a failure to get the expected out come. This gap which caused the poor performance in the regional
procurement office is one of the functional units which is not in place but vital to the office if the
acknowledged. This functional unit that is missing in Harari regional p
rocurement office is the office of the department unit of contract agreement management. Contract
management is the process of actively managing contract implementation to ensure the efficient aandffective
delivery of the contracted out puts and outcomes. Nonetheless, in the HPPPDSO this essential office is non-
existent, thus the procurement procedural process i.e. from need recognition – record keeping steps are
interrupted. This research statement of the problem focuses on the public procurement awareness and practice
of the basic functional units of the public procurement of the HPPPDSO and the drawbacks in the absence of
one of the basic functional units. The research study focuses on the Harari Regional State Public Procurement
and Property Disposal Service Office; on the importance and the gap of in the lack of the main functional
units of public procurement. In HPPPDSO the researcher thinks there is a lack of genuine or officially in
placed Directorate of Contract Agreements Administration unit or department. Instead, there are nominally in-
placed experts, whose functions are mainly dominated and executed by the procurement directorate director.
The researcher thinks that the experts working in the department unit of the contract agreement administration
have little or no power to carry out their routines of the contract agreement management functions mainly due
to the interference of the top procurement (the officers of HPPDSO 2023). Therefore, this research study
acknowledges the gap and the interruption that come about as a result of the lack of a main public
procurement unit like a contract agreement administration department unit.

The key objectives of contract management are to ensure that the contract is delivered on time, at the right
place and in the right quantity. Completed to the required specifications, standards and quality; Completed
within the agreed price. Contract management continues throughout the life of the contract. This means that
the Borrower needs to plan for, and undertake: Effective and efficient management of performance, delivery
and payment, Methodical and measured change control, Active risk mitigation and management, agile
resolution of issues and disputes.

`This research will therefore discuss the Public procurement practices of public procurement
practices, benefits and gaps in Harari Region Public Procurement. This research aimed to trigger
support as well as investigate the public procurement preferred awareness and practices in order to
gain Values for Money.

Although Public procurements have significant impacts on the regional budget, there
are not such studies that can identify the present status of public procurement
implementation in Harari regional state.

The information thus produce will bring insights for the people involved in policy making. In this
research, the researcher would like to hypothesize that Harari public procurement has this obligations
to follow the Public procurement

The Procedures but the actual procedures that is practiced by the officials are not up to the mark. Hence, the
researcher would argue that Public procurement implementation gaps underlie the lack of proper enforcement
of the standards set by the Federal public procurement. the researcher would contend that the officials who
are involved in the procurement process needs to be trained enough to realize the benefits of the Public
procurement. My thesis proposal would follow a literature review section. The researcher would detail my
method applied and in the following sections, the researcher will analyze the data which will follow the
concluding section.

Harari public procurement and property disposal services office is not realizing the benefits and
importance of Public procurement in process, principles and other elements that ensure best practice
in region. To implements this practice the office must keep a good understanding with the federal
public procurement and property disposal services agency and motivate them that training ensures
the function of Harari public procurement awareness and practices.

Accordingly, due to the above mentioned facts, the current Awareness and practices of public
procurement should be investigated empirically in the context of Harari regional state. Therefore,
since there is no study has been undertaken regarding the Awareness and Practices of public
procurement in HPPPDSO. It is essential to find the fact through scientific research and to suggest
appropriate remedies for the identified problems and fill this research gap.

1.3. Basic Questions

The research questions of this study are:

Based on the identified problems and literature reviewed, the following questions will be developed
that need to be answered in the context of Harari Regional State Public Procurement and Property
Disposal Service Office.

1. What is the level of Awareness and Practices of Public Procurement in HPPPDSO?

2. How public procurement units are organized in HPPPDSO?

3. How functional units of public procurement are performing in HPPPDSO?

4. What is the Communication of Strategy and Performance Management System in

HPPPDSO?

Objective the s of the Study

The objective of the study is to explore the awareness and practices of public procurement in
HPPPDSO.

1.3.1. General Objective

The main objective of this thesis proposal will be addressing the Awareness and Practices of Public
Procurement at the (HPPPDSO).
 1.3.2 Specific Objectives

Based on the above general objective of the study, the following specific objectives will be addressed
in the thesis proposal will be to:

1. Find out the awareness and practices of contract agreement administration unit in
HPPPDSO.

2. Assess the effects of public procurements units in HPPPDSO.

3. Identify the partiality of contract agreement administration in HPPPDSO.

1.4. Significance of the Study

The study findings will be expected to shed light on the opportunity and challenges of
implementation of public procurement and monitoring, and evaluation of procurement function. This
could be immense. For the managers to make corrective action, for policymakers to revise the policy
and for researchers to serve as a springboard for further detailed investigation, and particularly if the
management admits the problem and takes corrective measures, the study will contribute a lot to
enhance the institutional performance of the HPPPDSO by achieving value for money.

1.5. Limitation of the Study

The researcher of this pointed out the following limitation as major factors affecting the research not
to get the at most expected outcomes.

There is lack of up to date reference materials. Like books on this field of study, magazines or
journals etc…

Attitude or organizational culture that most respondents were unwilling to respond as freely in the
fear of threats or dismissal from their job.
1.6 operational Definitions of Key Terms
Procuring entity means the Public Body or Third Party Beneficiary placing the Purchase Order and entering
into call-off contract with the Supplier under the Framework Agreement;

Public body mean any public body, which is partly or wholly financed by the Federal Government budget,
higher education institutions and public institutions of like nature; (The Ethiopian Federal Government
Procurement and Property Administration, Proclamation No. 649/2009).

Public Procurement means the measures taken by a contracting authority with the aim of awarding a
contract or concluding a framework agreement regarding products, services or public.

Suppliers bidder with who will concluded framework agreement or public procurement contract;
(noviZakon, 2013).

.Evaluation is a useful tool for managers to use to carry out deep assessments of the design,
efficiency, effectiveness, implementation or impact of programmers, and for identifying
improvements

Monitoring an intermittent (regular or irregular) series of observations in time, carried out to show
the extent of compliance with a formulated standard or degree of deviation from an expected norm

Procurement planning is the future needs to procure goods and services for the organization to
meet its strategic goals.

Public procurement is the process of the acquisition, usually by means of contractual arrangements
after the public competition, of goods, services, works and other supplies by the public entity.

Public procurement cycle refers to the sequence of related activities, from needs assessment,
through competition and award, to payment and contract management, as well as any subsequent
monitoring or auditing;

Procurement procedures are operating instructions detailing functional duties or tasks.

1.7 Organization of the Study

This study will be organized in five chapters. The first chapter will be deals with introduction
which overview about the background of the study, statement of the problem, objective of the
study, significance of the study, delimitation of the study, and operational of definition of terms.
The second chapter deals with the review of related literature. The third chapter of this study will
be deals with all about the methodology of the study. This section will be containing description
of study area, paradigm of the study, design of the study, research methods, population of the
study, the sampling method, sample size as well as data gathering instruments methods of data
analysis, and ethical considerations of the study. The fourth chapter will be deals with time plan
of the study. Finally, the study will be ends with the fifth chapter which is concerned with budget
breakdown of the study.
CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

In the literature review the main areas considered are frame work agreement definitions and
concepts, Centralized and Decentralized procurement, management of FAs, Contract management
and experience of other countries on performing frame work agreements. This theoretical review will
help for making analysis on the actual practice of FAs in public procurement and property disposal
service office.

2.2. Definition of Framework agreement

In the introductory part the researcher has tried to explain briefly the meaning of Framework
agreements. However, as an important procurement method, further clarification of the term will
help users of this paper to clearly understand about the subject matter.

According to the Ethiopian Federal Government Procurement and Property Administration /PPPAA/
Proclamation No. 649/2009, Framework Contract mean “a general agreement of procurement
establishing unit price and other terms and conditions of contract which serves as a basis for supplies
to be delivered under future specific contract;”.

Further to the above proclamation, the definition of framework agreement is more elaborated in the
PPPAA manual of framework agreement issued on May 2011, as follows:

FA means “a basic agreement with supplier which sets out terms and conditions that allow public
bodies to order goods or services throughout the term of the agreement under the terms and
conditions specified in that framework agreement (i.e. it provides a mechanism for calling off
purchase orders from a catalogue of goods or services as and when public body needs to buy
something within the scope established for the Framework Agreement)”.

As cited by the OECD (2000), a framework agreement is an agreement where the prices for each
good/service to be supplied are set but the quantities to be purchased are not specified. Indeed, there
may well be no obligation whatsoever to buy anything whatsoever from the

seller. A FA is a way of locking in prices on items when quantities cannot be set at the time of
signing. Framework agreements are in common use both for the purchase of goods and for the use of
services. Where, for example, a project needs further specification as to exactly how many
consultants will be used and over what time period, a framework contract may be ideal.
On the Guidelines procurement of goods, works, and non-consultancy service under IBRD loans and
IDA Credits and grants World Bank borrowers January 2011, a framework agreement is defined as
“a long term agreement with suppliers, contractors and providers of non-consulting services which
sets out terms and conditions under which specific procurements (call-offs) can be made throughout
the term of the agreement. FAs are generally based on prices that are either pre-agreed, or
determined at the call-off stage through competition or a process allowing their revision without
further competition. FAs may be permitted as an alternative to the Shopping and NCB methods for:
(a) goods that can be procured off-the-shelf, or are of common use with standard specifications; (b)
non-consulting services that are of a simple and non-complex nature and may be required from time
to time by the same agency (or multiple agencies) of the Borrower; or (c) small value contracts for
works under emergency operations. The Borrower shall submit to the Bank for its no objection the
circumstances and justification for the use of an FA, the particular approach and model adopted, the
procedures for selection and award, and the terms and conditions of the contracts. FAs shall not
restrict foreign competition, and should be limited to a maximum duration of 3 years.

From the above definitions it easy to understand that FAs are long term agreements made with one or
more suppliers which determines important terms of public procurement contract such as price,
quantity, deadline, etc.,
2.3. The concept of Frame Work Agreement
There is a long tradition of using framework arrangements in a number of EU member states
including the Nordic countries, France and the UK. This method of purchasing has generally
involved a contracting authority (or authorities) advertising an opportunity and then entering into a
contract or other arrangement with one or more economic operators for the provision of works,
supplies or services over a fixed period (SIGMA Brief 19, 2011 p.1).
According to the Public Procurement and Disposal of Public Assets Guidelines (2011), framework
contract provides an efficient, cost effective and flexible way of procuring supplies or services that
are needed continuously or repeatedly over a period of time by reducing procurement costs and time.
Typical examples include common user items such as office stationery, tonner, tyres, spare parts for
routine vehicle repairs, medical supplies, foodstuffs, road materials, bitumen, aggregates, cement,
courier services etc.
Generally a FA is composed of two stages: the first stage is the process of advertising biddings and
selecting potential suppliers by the central procurement or contracting authority. This enables the
winners to sell their products within the time horizon of the FA at the prices determined during the
award notification and based on the price adjustment agreements stated in the contract agreement.
Each FA winner can be awarded to provide one or more of the products/services in the FA. In the
second stage, the different government offices can buy their products from the FA winners as per the
formal bidding results sent to them from the central procurement entity.
When organizations decide to conduct procurement using a FA, it will be important to consider
whether a FA, is the right approach for the particular goods, works or services to be purchased. This
will be a value for money judgment for the contracting authority or authorities’ concerned taking
account of the kinds of purchases involved and the ability to specify such purchases with sufficient
precision upfront (SPPN 5/2010).

The other important point which requires clarification is how contracts are awarded under a
framework agreement? Different literatures explained that FAs can be concluded with a single
provider or with several providers, for the same goods, works or services. The decision on whether to
award a single or multi supplier framework needs to be considered early on in the process, before the
Invitation to Tender (ITT) is issued and the answer will very much depend on the goods or services
being bought.
According to the Wales (2012), it is explained in the following way:
A single supplier framework could mean a framework agreement awarded to one supplier for the
whole requirement: or a framework agreement consisting of various lots where there is one supplier
per lot. Single supplier frameworks tend to suit straightforward, generic goods such as stationery,
paper and computer consumables, where there is an element of standardization and it is relatively
simple to establish exact pricing and terms up front.
A multi supplier framework is a framework agreement that is awarded to more than one supplier for
the supply of certain goods, works or services. These can be useful for more complicated service
contracts such as consultancy, training, social care or construction, where it is more difficult to
establish exact pricing and user requirements will vary.
In PPPDS a single supplier framework agreement is conducted if the second and third bidders are not
willing to accept the order or award. On the other hand if the second and third winners are agreed to
supply goods based on the first winner price, each of them shared 20% of the total contract amount.
In the SPPN (5/2010), it is elaborated that a contracting authority may find that more than one
framework agreement could meet its needs. For example, it may be looking to award a new contract
for IT services and find there is a choice of three established framework agreements that it could use.
In this situation, it should consider the suitability of each of the framework agreements as part of
developing its procurement strategy. It should take care, when communicating with the marketplace,
to ensure that it engages with suppliers in a fair and transparent way and ensures that the
confidentiality provisions of each framework agreement are properly respected. Having chosen a
framework agreement, a contracting authority cannot ask suppliers to bid against prices offered
under one of the other frameworks. In other words, competitions cannot be held which involve more
than one framework agreement.
When procuring a framework the contracting authority must make clear that it intends to conclude
the procurement process with a FA. This must be highlighted in the contract notice.
Where the contracting authority concludes a FA, the minimum number of suppliers must be one or
three or more; providing that there were enough suppliers to satisfy the selection criteria and there
was a minimum of three admissible tenders which met the award criteria.
2.4. Management of Framework Agreements
One of the crucial tasks under procurement is the management of contractual agreements. The bases
for this task are the articles stated on the contract document and related international and national
laws. Currently, PPPDS is procuring the common user items for more than 175 public bodies
including custom authority branches. This indicates that, how much complex is the task of
administering framework procurements. Management of framework procurement includes
preparation of bidding documents, evaluating bids, endorsing bids and administering contracts to
ensure FAs meets their objectives. To minimize any risk related to framework procurements
institutions like PPPDS required dedicated and skilled procurement staff members. However, due to
various reasons, the concern given to manage or administer the overall activities of procurement in
PPPDS is found unsatisfactory. For instance, complains raised by the end users related to timely
supplying of goods and specification can be taken as an evidence of the weak practice in FAs
contract management. Actually this is not the only reason for such gaps; lack of commitment in the
management area and higher authorities less concern to the subject matter can be mentioned also as a
weakness.
In PPPDS, contract administration is structured as one of the core processes. But for the last three
years until half of December, 2013, no head process owner was assigned to the position.
2.5. Legal and regulatory Frameworks
As clearly stated on the Federal Democratic Republic of Ethiopia (FDRE) FAs manual, the
procurement of common user items will be performed in accordance with the following relevant laws
& guidelines: i. The Ethiopian Federal Government Procurement and Property Administration No.
649/2009 from September 9, 2010; ii. Public Procurement Directive, entered into force on June 8,
2010 by the Minister of Finance and Economic Development Decision; iii.Public Procurement and
Property Disposal Service Establishment Councils of Ministers Regulation No. 148/2010. iv.
Standard Bidding Documents for FAs dated May 2011. v. Manual on the use of Framework
Agreements dated May 2011;

The above list is not exhaustive, but specifies the most relevant legal documents applicable to
activities of the body administrating framework procurements.
The management of FAs is following the same principle as that applying to a normal contract, except
that, with a framework agreement, there will be an interval between the awarding of the framework
itself and the calling-off of the supplies or services under it. There can be no substantive change to
the specification or the terms and conditions agreed at the time that the framework is awarded.
2.6. Contract Management
The idea of this topic is similar to that of the FA management. But as we understand from the
procurement guidelines, FA is one of the special methods of procurements. That means the points
that I tried to elaborate are insufficient to clearly understand the concepts and existing problems
related to contract management.
The term “contract management” and “contract administration” are often used synonymously.
However, “Contract management” is commonly understood as a broader and more strategic concept
that covers the whole procurement cycle including planning, formations, execution, administration
and close out of a contract and goes beyond the day to day “administrative” activities in the
procurement cycles (UN, 2006).
According to Walton (2009), contract management is the process that enables both parties to a
contract to meet their obligations in order to deliver the objectives required from the contract. It also
involves building a good working relationship between customer and the service provider. It
continues throughout the life of a contract and involves managing proactively to anticipate future
needs as well as reacting to situations that arise.
One of the key aims of contract management is to obtain the services as agreed in the contract and
achieve value for money. This means optimizing the efficiency, effectiveness and economy of the
service or relationship described by the contract, balancing costs against risks and actively managing
the customer and service provider relationship. Contract management may also involve aiming for
continuous improvement in performance over the life of the contract.
Contract administration (management) is the process of turning the intentions stated in the contract
document into reality. Obviously, if the contract is not implemented as per the written agreement, the
procuring (buyer) will not get the required “products” or will suffer a
financial loss. However, the implications of weak contract administration are greater than this (UN
Capital Development Fund, 2013).
The FDRE has a five years growth and transformation plan (GTP) which helps in alleviating poverty
on the coming 10 up to 15 years. Under the GTP a lot of projects are implemented by different
concerned public bodies. Some of the materials required for these projects are procured by PPPDS.
For instance, reinforcement bar is used for different construction activities which have a strategic
significance procured centrally. In addition to that the source of fund for procurements is not only
from the government side.
PPPDS is procuring common user items through a FA for more than 175 public bodies. Therefore
anybody can assume how much the budget could be huge. As studies indicate more than 60% of the
government budget is allocated for procurement purpose. Accordingly the emphasis given to
procurement by the government is growing from time to time.
In principle, the contract management system of any organization is similar; but due to the nature of
organizations and projects it can be slightly differ. For example international organization those
provide funds to the developed and developing countries like the WB, UNDP, European Investment
Bank and ADB may have a strict policy in its implementation.
Contract Management involves monitoring the implementation of a contract after it is placed to
ensure timely completion of all the supplies and related services shown in the contract as per terms &
conditions incorporated therein (Dr. Adarsh Kishore, 2006).
As explained in the A guide book on Public-private partnership in infrastructure (2011p72), Contract
management is an important activity in Public-private partnership (PPP)
programme/project administration. The management process needs to be in place from the outset to
ensure timely completion and satisfactory operation of a project. A separate process may also be
considered to monitor the PPP programmed performance of a sector or for the country as a whole.
The contract management process not only helps to fix responsibilities, but also allows timely
response to any deviation in project implementation or operation from the provisions in the contract
agreements and thus helps to avoid disputes between the parties at later stages.
Organizations in both the public and private sectors are facing increasing pressure to reduce costs
and improve financial and operational performance. New regulatory requirements, globalization,
increase in contract volumes and complexity have resulted in an increase recognition of the
importance and benefits of effective contract management.
Once a contract has been awarded and signed, contract management is the process, which ensures
that all parties to the legally binding agreement fully meet their respective obligations as efficiently
and effectively as possible. The contract management process allows a Business Unit to track and
manage the clauses, terms, conditions, commitments and milestones throughout the life of its
contracts to maximize business benefits and minimize associated risks.
The main challenges in PEs in contract administration, is to properly appreciate the importance of it.
Often procuring entities give full attention to the contract selection process, but then walk away from
the procurement once the contractor is in place. It is imperative that the PE devote adequate staff and
resources to the phase of contract administration. Unless this happens the PE risks a failed
procurement and the additional time and money to go through the process again (RPPA, 2012).
In addition to the above explained points contract management includes monitoring performance
(i.e., quality standards, delivery), effecting acceptance and payment, initiating amendments and
orderly resolution of any disputes that may arise in the overall process. Further, contract management
ensures that all residual obligations, such as warranties, guarantees and after sales services and
support are clearly defined in terms of responsibility, liability, procedures and timeframes.
Contract management is similar to project management. Each contract is a mini-project. It has a
unique goal, consumes resources, has a beginning and end date, and requires coordination and
planning of relevant activities, as well as documentation in a contract file throughout the process.
According to OGC (2002 p11), Good contract management goes much further than ensuring that the
agreed terms of the contract are being met – this is a vital step, but only the first of many. No matter
what the scope of the contract, there will always be some tensions between the different perspectives
of customer and provider. Contract management is about resolving or easing such tensions to build a
relationship with the provider based on mutual understanding, trust, open communications and
benefits to both customer and provider – a ‘win/win’ relationship.
Contract management is a wide and complex task that requires cooperation with all concerned parties
for its effective implementation. Starting from the request of foreign currency for opening letter of
credit until the acceptance of goods to the nominated destination place, local and foreign banks,
suppliers, custom clearance authorities, insurance organizations, airlines, shipping lines etc. are
involved. Therefore, the responsible body to administer contracts must be knowledgeable in the area
of the field and smart in communication skills.
According to Walton (2009), if contracts are not well managed from the customer side, any or all of
the following may happen: the service provider is obliged to take control, resulting in unbalanced
decisions that do not serve the customer’s interests; decisions are not taken at the right time – or not
taken at all; new business processes do not integrate with existing processes, and therefore fail;
people (in both organizations) fail to understand their obligations and responsibilities; there are
misunderstandings, disagreements and underestimations; too many issues are escalated
inappropriately; progress is slow or there seems to be an inability to move forward; the intended
benefits are not realized; and opportunities to improve value for money and performance are missed.
All the above indicated points clarify that how much contract management is a crucial task of
procurement.
On October 3, 2013 at MoFED assembly hall, PPPDS was held a meeting on the topic “Framework
agreement, suppliers’ participation and faced challenges” with Ethiopian chamber of commerce,
federal budgetary institution, regional state and city administration procurement bureaus’ delegates.
During the occasion, the PPPDS Deputy Director Ato Tesfaye Birhanu presents a paper. In the
presentation, he tried to figure out the actions of the service in 2011/12 and 2012/13 fiscal years.
According to his presentation, in 2011/12 fiscal year the service accomplishes 7.1 billion Birr
strategic procurement and 32.4 billion birr framework procurements. Similarly, in 2012/13 fiscal
year the service achieved 7.4 billion Birr and 32.4 billion Birr strategic and framework procurements
respectively.
In addition to that, Ato Tesfaye has explained the internal and external factors which affect the
performance of PPPDS. According to him, the external problems arise from suppliers and public
bodies. Likewise the internal challenges emanate from manpower and capacity to perform
(http://www.pppds.gov.et.).
From the above figure we can easily understand that how much the budget allocated for procurement
is too high in terms of our country’s economical growth. Therefore, such huge amount of money has
to be well managed by establishing very strong contract management department.
The PPDS initiation on preparing consultative meetings with all concerned parties will help to see
the gaps on contract administration and related issues. This kind of meeting by itself can be taken as
a positive reaction. But this alone is meaningless unless the service (PPPDS) management and staff
members are committed for the achievement of their organizational objectives.
The supporting idea for the involvement of concerned parties in the contract management is
elaborated on the “Victorian Civil Construction Industry - Best Practical Guide for Tendering and
Contract management May 2008”, as follows:
Parties involved in executing contracts should: ensure that a recognized quality assurance process is
used for all aspects of contract management; cooperate with other parties in the administration of
contracts to enable them to fulfill their contractual obligations; employ quality management
principles without excessive use of audits and with a focus on avoiding waste, rework and
duplication;
protect ‘commercial-in-confidence’ information;
appoint employees or staff with an appropriate level of competence and authority to administer
contracts; respond promptly to reasonable requests for advice and information; submit accurate and
fair progress claims; deal with contractual claims strictly in accordance with the terms of the
contract; process and pay contractual entitlements in a timely manner and strictly in accordance with
the timelines set out in the contract; cooperate to minimize problems, claims or disputes; and adopt a
cooperative approach to dispute resolution so that adversarial action is minimized and legal
proceedings initiated only as a last resort; execute the contract in a timely manner in accordance with
the specified timelines; and provide full and open detail costing of any variations to the contract.
According to Walton (2009), after a contract has been signed there are a number of matters that
should be addressed to provide the foundation for successful contract management. An early step is
to ensure that sufficient resources and senior management support are available to manage the
contract. It is equally important to understand both the contract provisions and contractual
relationships at the outset. In the case where the contract manager has been involved in earlier
procurement phases, we expect that the contact manager will already have knowledge of issues
relevant to implementation.

Meaning of Procurement Public procurement is a government function to purchase the goods and
services needed to run the government and provide government services. Because all local, state and
federal governments must obtain goods and services, procurement is an important function of
government. A governmental entity can approach procurement and provision of service in two ways.
It can buy the materials it needs from a vendor and then use its own personnel to provide the service;
or can enter into a contract with a second party provider for the needed service. The second party
might be another unit of government, a nonprofit organization, or for profit firm that will provide
both the materials and the service (Zegeye,2015).
Public procurement systems are at the center of the way public money is spent since budgets get
translated into services largely through the government‘s purchase of goods, works and services. In
reality, public procurement masks the ability of government to transform taxes and other revenues
into consumption by government institutions at federal, state and local levels, apparently for the
public good.
As stated earlier, the purpose of this study is to assess the challenges of public procurement
implementation within a theoretical framework of institutional and policy challenges. Hence, the
following theoretical review of public procurement concepts and discussions is provided to serve as a
conceptual framework within which the problem is analyzed. In addition, this chapter outlines the
criteria or indicators that will be used to assess the challenges of the public procurement policy in
southern nation nationalities regional state.
In this connection, it is essential to provide both conceptual and operational definitions and features
of public procurement. The indicators used to assess the challenges and features of public
procurement can only be established after defining the concepts of efficient public procurement. This
chapter, therefore, seeks to explain as much as possible, what public procurement, transparent and
accountable public procurement, and ethical standards in public procurement mean(zegey,2015).
Public Procurement Defined Procurement scholars try to define public procurement from two
different perspectives. These two broader perspectives are positive definitions: public procurement as
a practice in organizations and normative approaches: from what public procurement should (or
should not) be. According to Lloyd and McCue (2004), positive definitions relays on the following
conceptual renderings.  Public procurement is rule bound  It is process- and transaction-based 
It is strategic According to the new Public Procurement Proclamation (146/2011), procurement
means "obtaining goods, works, consultancy or other services through purchasing, hiring or
obtaining by any other contractual means.‖
Khi (2009), quoting the United Nations definition defined public procurement as an ―over all
process of acquiring goods, civil works and services which includes all functions from the
identification of needs, selection and solicitation of sources, preparation and award of contract, and
all phases of contract administration through the end of a services‘ contract or the useful life of an
asset.
The term ―government‖ on the other hand, implies the organizational structure and leadership
within a country. In this framework, therefore, public procurement is one of many government
functions, and the procurement system can have determined through procurement laws and
regulations and through policy and budget decisions by legislators and the executive branch. It is
important that the public procurement system is mainstreamed and well-integrated into the public
sector governance system.

Some people confuse purchasing and procurement. Others, on the other hand, use terms like
acquisition, public contract and supply management equivalently to public procurement. According
to Dobler and Burt, ―purchasing comprises the essential activities associated with the acquisition of
the materials, services and equipment used in the operation of an organization.‖ Public procurement
on the other hand, ―comprises a wider range of supply activities than those included in the
purchasing function. It typically includes a broadened view of the traditional buying role, with more
buyer participation in related material services‖.
Public Procurement: A Historic Genesis According to Dobler and Burt (1998), public purchasing
possesses a strong historical base in the United States from 1792 when the federal government
authorized the Departments of War and Treasury to contract on behalf of the nation. While the intent
of Congress was likely to prevent corruption in the letting of government contracts, the authorization
also served as an acknowledgement of the profession. Public sector purchasing, which progressed
over the years, was viewed largely as a clerical function by many and a controlling gatekeeper by
others.
According to Dobler and Burt, it was not until the 1990sthat the field took significant steps toward
becoming a respectable profession. Much of this progress was due to the electronic technology
boom, which prompted such efforts as e-procurement, e-business, and ecommerce.
Principles of Public Procurement According to Thai (2009), the principal hallmarks of proficient
public procurement are: Economy: Procurement is a purchasing activity whose purpose is to give the
purchaser best value for money. For complex purchases, value may imply more than just price, for
example, since quality issues also need to be addressed. Moreover, lowest initial price may not
equate to lowest cost over the operating life of the item procured. But the basic point is
the same: the ultimate purpose of sound procurement is to obtain maximum value for money. i.
Efficiency: The best public procurement is simple and swift, producing positive results without
protracted delays. In addition, efficiency implies practicality, especially in terms of compatibility
with the administrative resources and professional capabilities of the purchasing entity and its
procurement personnel.
ii. Fairness: Good procurement is impartial, consistent, and therefore reliable. It offers all interested
contractors, suppliers and consultants a level playing field on which to compete and thereby, directly
expands the purchaser‘s options and opportunities.
iii. Transparency: Good procurement establishes and then maintains rules and procedures that are
accessible and unambiguous. It is not only fair, but it is seen to be fair.
iv. Accountability and Ethical Standards: Good procurement holds its practitioners responsible for
enforcing and obeying the rules. It makes them subject to challenge and to sanction, if appropriate,
for neglecting or bending those rules. Accountability is at once a key inducement to individual and
institutional probity, a key deterrent to collusion and corruption, and a key prerequisite for
procurement credibility.
2.1.5 The Public Procurement System According to Thai (2009), the public procurement system is
built on four pillars: procurement laws and regulations, procurement workforce, procurement process
and methods, and procurement organizational structure.
i. Laws and Regulations A sound public procurement system needs to have good procurement laws
and regulations. In practice and theory, public procurement laws and regulations have been
considered as one of the most important pillars of a sound procurement system. According to Thai,
procurement laws and regulations lead to procurement efficiency or inefficiency. There are debates
about procurement legal framework hinders or helps procurement discretion.
Ideally, procurement laws and regulations should be clear, consistent, comprehensive, and flexible.
a. Clarity, which requires the primary sources be carefully drafted to ensure that basic principles are
clear but do not prevent the use of more efficient procedures or new technology. All procedural
details should be included in implementing regulations consistent with the primary sources.
Delegation of regulatory responsibilities at the central government, political subdivision, or agency
levels should be clearly defined, as appropriate. b. Consistency, which can be achieved when
procurement provisions contained in different sources are well coordinated (i.e., there is no overlap
or conflict, the hierarchy of the sources is clear, new provisions are promptly incorporated, and
outdated provisions are repealed).
c. Comprehensiveness, which entails that all relevant aspects of the procurement process are
addressed (there are no gaps in the regulatory framework which allow ―personal‖ or distorting‖
interpretation of aspects of the process). d. Flexibility, which requires that primary sources set forth
only principles, basic features of the system, an outline of the procurement methods, and conditions
for the use. Depending on local conditions, there may be several layers of regulatory authority,
including agency issued codes or rules regulating aspects which are particular to the agency. Lower
level sources should provide practical guidance to practitioners in carrying out their work and should
be easily updated. Public procurement laws and regulations clearly cover the whole scope of public
procurement, all stages of the procurement processes, methods and procurement, ethics, and
transparency. In addition, procurement laws and regulations have to be easy to be accessed by the
public (yirga tesfahun,2011).
ii. Public Procurement Organization An essential element of the role of the public procurement
department in a government entity is the placement of procurement authority. This is not to be
confused with the location of procurement personnel.
According to Dobler and Burt, centralization occurs when all of the rights, powers, duties, and
authority relating to public procurement are vested in a central procurement officer. Central authority
often delegates some of these powers to others, but the point remains that they stay with that central
figure. Such delegations are normally carried out within a regulatory or policy framework by means
of specific letters or memoranda to those receiving the delegated powers; they very precisely
delineate the delegated contract approval authority in terms of dollar amounts and commodities as
well as whether or not the assigned authority may be further delegated.
According to Dobler and Burt, decentralization on the other hand occurs when procurement
personnel from other functional areas can decide unilaterally on sources of supply or negotiate with
suppliers directly. Rarely is an agency fully centralized or fully decentralized; it is usually
somewhere in between, often with very specific exceptions on a commodity basis such as contracting
for specialized professional services (e.g., architectural and engineering, legal, medical services)
arranged directly by the using departments According to Dobler and Burt, when functioning
properly, procurement centralization yields the following benefits:Minimizing duplication of
procurements by central coordination, Avoiding haphazard procurement practices and maximizing
efficiency because procurement officials with professional training and expertise are more efficient
than less skilled user departments‘ managers or operational managers whose procurement
responsibility is secondary, Saving operational managers‘ time so that they can focus on their core
responsibilities, Lowering overall transaction costs due to consolidation of orders , Achieving
volume discounts through the consolidation of procurements, Reducing shipping and handling
charges through the consolidation of shipments, Receiving better prices and better services offered
by suppliers because their sales, shipping, and invoicing expenses are reduced, Facilitating
procurement control and accountability
On the other hand, some potential disadvantages of centralized purchasing stem from any suboptimal
relationships that may develop between the central procurement office and the clients it serves.
Disadvantages might include: Lack of sensitivity to the unique priorities and operational realities of
different user department Insufficient engagement of the central procurement office in the
operational planning process, Overall increased processing time of requisitions , Possible difficult
procurement and project schedule coordination as the central procurement office has its own
priorities and the project manager has his or her tight project completion time table
iii. Public Procurement Workforce According to an Organization for Economic Co-operation and
Development (2006) report, a sound procurement system has to have a competent professional
workforce equipped with defined skills and knowledge for specified procurement jobs. The
procurement workforce permeates virtually every effort within an organization, including
successfully acquiring goods and services and executing and monitoring contracts. Unfortunately,
public procurement has been a neglected area of education. Thus, public procurement personnel are
mostly on-the-job training or from law schools. Thus, it is a challenging task for organizations to
choose the right staff in the right numbers applying skills where needed to accomplish the mission
effectively. Creating a procurement workforce with the right skills and capabilities can be a
challenge, given changes to procurement processes, the introduction or expansion of alternative
contracting approaches, and increased reliance on services provided by the private sector.
Thus, governmental entities need to have a comprehensive training program, a comprehensive
strategic workforce plan to profile the current staff, and projects staffing needs for the future, to hire,
develop, and retain talent.
2.6. The concept of awareness and practice of Public Procurement in Ethiopia
Under civil Service Reform Program, the Expenditure Control and Management was launched in
1996 by the government of Ethiopia with the aim of improving the overall public financial
management in Ethiopia. Public procurement was one component of the expenditure control and
management. In2012, the government of Southern Nation Nationalities People Region state enacted
Procurement and Property Administration Proclamation No 146/2012and it has established the
Public Procurement and Property Administration Agency (PPA) accountable to the bureau of
Finance and Economic Development to manage the public procurement activities.
In the Harari regional procurement property disposal service organization was established under
three board organizational board members, namely, the finance bureau, agricultural bureau and
health bureau as part of the expenditure control and management. Harari regional procurement
property disposal service organization re-established as an a finance agency in 2005 E.C. when the
regional government authorized the agency to contract on behalf of the region. While the intent of
the regional government was likely to prevent corruption in the letting of government contracts.
By nature,, procurement laws and regulations should be clear, consistent, comprehensive, and
flexible.
Clarity, which requires the primary sources be carefully drafted to ensure that basic principles are
clear but do not prevent the use of more efficient procedures or new technology. All procedural
details should be included in implementing regulations consistent with the primary sources.
Delegation of regulatory responsibilities at the central government, political subdivision, or agency
levels should be clearly defined, as appropriate. b. Consistency, which can be achieved when
procurement provisions contained in different sources are well coordinated (i.e., there is no overlap
or conflict, the hierarchy of the sources is clear, new provisions are promptly incorporated, and
outdated provisions are repealed).
Comprehensiveness, which entails that all relevant aspects of the procurement process are addressed
(there are no gaps in the regulatory framework which allow ―personal‖ or distorting‖ interpretation
of aspects of the process). d. Flexibility, which requires that primary sources set forth only
principles, basic features of the system, an outline of the procurement methods, and conditions for
the use. Depending on local conditions, there may be several layers of regulatory authority, including
agency issued codes or rules regulating aspects which are particular to the agency. Lower level
sources should provide practical guidance to practitioners in carrying out their work and should be
easily updated. Public procurement laws and regulations clearly cover the whole scope of public
procurement, all stages of the procurement processes, methods and procurement, ethics, and
transparency. The researcher of this study understood the procurement practice in Harari regional
procurement property disposal service organization is somewhat lagging behind due to the lack of
basic functional units in place.

3. CHAPTER THREE

This chapter presents the methodology of the thesis proposal. It describes the methods and
procedures that will be used in order to collect data that answers the research questions. The chapter
will be classified under the following sections namely, proposal design, population, sample size,
sampling procedures, data collection instruments and data analysis procedures.

3.1. Description of the Study Area

The study is undertaken in Harari city. Harar city is located at a distance of 526 km from the Capital
Addis Ababa. Its topography is Location: Harari, Ethiopia (9.15184 41.96844 9.47184 42.28844)
(https://www.google.com/maps/search/Harar%2C%20Ethiopia)Average elevation: 1,837m
Minimum elevation: 1,263m Maximum elevation: 2,739m. Harari is the capital of the East Hararghe
Zone and the capital of the Harari Region of Ethiopia. The city is located on a hilltop in the eastern
extension of Oromia, about five hundred kilometres from the seat of the Federal Government and
Oromia's capital Addis Ababa at an elevation of 1,885 Meters (6,184 ft). Based on figures from the
Central Statistical Agency in 2005, Harari had an estimated total population of 122,000, of whom
60,000 were male and 62,000 were female. According to the census of 1994, on which this estimate
is based, the city had a population of 76,378.PhilosophicalAssumptions

3.2 Research design

Cooper and Schindler (2003), define a design as a blueprint for fulfilling objectives and answers to
questions. The proposal design expresses both the structure of the research problem and the plan for
investigation used to obtain empirical evidence on the relation of the proposed problem. Therefore,
this research will adopt a descriptive proposal design. The proposal will be conducted at the Harari
PPPDSO. The quantitative and qualitative design will be considered appropriate as it will enable the
researcher to reach many subjects within a limited time (Kothari, 2004). It will be aimed to give an
intense and detailed description of existing phenomena with the intent of employing data to justify
and make plans that are more effective. The aim of using a descriptive type of research will help to
examine and describe the situation in a more accurate and precise way by ensuring the existence of
opportunity and challenge of public procurement implementation in HPPPDSO.

3.3 Research Method

Methodology is a system of explicit rules and procedures in which research is

based and against which claims of knowledge are evaluated. This chapter
explains the research methodologies that includes, research design, Population
and sampling technique, types of data and tools, procedures of data collection
and method of data analysis

3.4 Sources of Data

There are two sources of data, namely primary and secondary sources of data. in the case of this
thesis, the researcher would use primary source of data.

Primary Sources Data

For this thesis proposal, primary data will be collected through standardized questionnaires and interviews
semi-structured interviews.
 Secondary Sources of Data

Secondary data will be collected from manuals, directives, proclamations, reform documents
such as Citizen Charter, annual reports and articles related to the procurement process and
research methods. This data will serve as a reference and guide the focus of clarifying
research questions.

3.5 Population, Sample Size, and Sampling Techniques

Population of the Study

According to Mugenda and Mugenda (2003), the population refers to an entire group of
individuals, events or objects having a common observable characteristic. The population
would be chosen to delimit the research and gather sufficient data within the time available
and cost. The target of the study will be PPPDSO (Executive directive 1, higher management
team and endorsing committee 12 and 19 procurement officers and contact officers), the total
population is 54. The target will choose because they are the in workers of the HPPPDSO.

Sample Size and Sampling Techniques

Determining sample size is very complex as it depends on other factors such as margins
for errors, degree of certainty and statistical technique (Corbetta, 2003). As a general
rule, one can say that the sample must be of an optimum size i.e., it should neither be
excessively large nor too small (Kothari, 2004). The data will be collected from
HPPPDSO. Therefore, the researcher will select appropriate sample sizes to
implementation the task of this research of public procurement.

Kothari (2004), emphasized that when the universe is a small one, it is no use resorting to
a sample survey. When all items are covered, no element of chance is left, and the
highest accuracy is obtained. In order to select a sample from the target population the
researcher preferred to use the stratified sampling technique due to its convenience in
taking a sample from each heterogeneous sector, it ensures each sub group within the
population receives proper representation within the sample and also observes the
relationship(s) between sectors. Thus, the researcher divided it into seven strata and uses
a stratified random sampling method to select the samples from the total population.This
includes allhigher,middle and first-linelevel leaders in corporations who are directly and
indirectly influenced by the opportunity and challenges of implementation of public
procurement.
3.6 Data Collection Instruments

The thesis proposal conductor may prefer using methods that provide high accuracy,
generalability and explanatory power, with low cost, rapid speed and maximum management
demands and administrative convenience (Warwick and Lininger, 1975). Based on this fact,
this thesis proposal will be conducted primarily through questionnaires, document analysis
and interviews.

3.7 Questionnaire

The questionnaire made it possible to obtain a wide variety of responses and to draw more
reliable conclusions from the responses. Questionnaires facilitate the easy and quick
derivation of information within a short time (Borg and Gall, 1983). The structured
questionnaire will be used to collect primary data from the respondents. Both open-ended and
closed-ended items would be used. Questionnaires would be administered through a liker
scale to the employees without administrative responsibilities

3.8 Interview guide (details?)

3.9 Document Analysis

Documents that are related to public procurement will be collected and analyzed to
support the data collected through the three instruments. These documents may include
policies, guidelines, directives, signposts, report documents, minutes, and letters. These
documents will be collected from HPPPDSO.

3.10 Validity, Reliability, and Credibility

To assure the validity of the opportunities and challenges in the public procurement
implementation questionnaire. Accordingly, the researcher will evaluate the comments and
incorporate them into the finalization. Furthermore, to check there liability of the
questionnaire, a pilot study of the small sample that will consist of staff members and
academic research advisors will be selected from RVU. Software used for this will be
required to fill in the validated version of the questionnaire. Then, the responses will be
entered in to the SPSS.

The thesis proposal conductor may prefer using methods that provide high accuracy,
generalize ability and explanatory power, with low cost, rapid speed and maximum
management demands and administrative convenience (Warwick and Lininger, 1975). Based
on this fact, this thesis proposal will be conducted primarily through questionnaires,
document analysis and interviews

Methods of Data Analysis

3.11 Methods of Quantitative Data Analysis

First of all, the collected data will be checked through data cleaning of the filled
questionnaire to identify valid responses and remove the lid ones. Any missing data will
be coded according to the missing data entry procedure and all the missing data will be
given a random number as a code (e.g. 99 or 999 or 9999). After doing so, the data will be
entered into the Statistical Package for Social Sciences (SPSS) IBM version 22. Then, the
two data sets to be collected from the three groups will be merged together.

3.12 Methods of Qualitative Data Analysis

Qualitative Data Analysis is the process of “transforming data into findings” (Patton, 2002, p.432;
cited in Williams, 2007, p. 43). However, qualitative data analysis is the toughest job inany qualitative
research. In line with this, Hatch (2002) clearly states that “data analysis
inqualitativeresearchisportrayedasmessy,cumbersome,inductive,creative,challenging,subjective,nonlin
ear,labourintensive,exhilarating,andtime-consuming;butanalysisprocesses are seldom spelt out with
sufficient clarity in most of the literature”(p. 147).In the case of this study, the analysis will start
immediately after the first interview and HPPPDSO is conducted and all the recorded data will be
transcribed verbally. Not to expose the identities of the participants, pseudo names will be attached to
the individual participant. The pseudo names are simply nominal and they would not show any other
indication. This will ensure confidentiality and anonymity.

It can be argued that thematic analysis is the dominant strategy in the overall qualitative
data analysis. Braun and Clarke (2006, p. 77) citing (Boyatzis,1998; Rolleston, 2001)
argue that “the matic analysis is a poorly demarcated, rarely acknowledged, yet widely
used qualitative analytical method ;it offers an accessible and theoretically-flexible
approach to analyzing qualitative data”

.
After the emerging themes are refined, the final interpretation will be done with regard to the
meanings that the participants attach to their experiences about change leadership and staff
commitment. As the investigator will declare his view through bracketing, it is the participants’
view that will be taken into account during this analysis. Finally, the findings will be validated
through member checking with the participants. In this last activity, the researcher wills end the
document to all the participants via email for member checking
andconstructivecomments.Then,allthecommentswillbeincorporatedintothe final thesis of the
findings.

Finally, the results from the two data sets will be converged, discussed, interpreted, anda
conclusion and recommendation will be drawn from the findings of the study based on the
procedures of mixed method design during data analysis.
3.13. Ethical Considerations

Ethical concerns and rights behaviors are of paramount importance when planning,
conducting, evaluating research, and (Blumberg,Cooper&Schindler,2005).Research ethics
is important in all research endeavors and it requires that researchers should protect the
self-respect and self-esteem of their respondents, participants, they should also publish
well the information that is researched (Fouka&Mantzorou,2011).In this proposed
study ,the investigator will try to consider the relevant ethical considerations like
explaining the objectives and significance of the study in order to obtain consent from
selected respondents, encouraging them to participate voluntarily, and ensuring
confidentiality that any information they provide will mainly be used only for the purpose
of the study and categorization and reporting will be made anonymously. A consent form
will also be attached to each questionnaire so that respondents will sign to show their
consent during questionnaire filling. In addition, questionnaire papers will be registered by
numbers rather than names. The sample universities will also be requested to allow this
researcher to conduct his study in their universities. All the data will be kept confidential
and anonymous so that the identity of the respondents and participants would be protected.
The publication(s) of this study will also follow the utmost ethical values of academic and
scholarly principles. Ina nutshell hell, the conduct of this research would strictly follow the
highest possible ethical considerations available during design, data collection, analysis,
interpretation, and publication.

3.1 4. Expected outcome

This study will result in the following expected outcomes; I think failing to abide by ethical standards can lead
to immoral and illegal practices such as bribery, favoritism and illegal sourcing. This in turn will lead to
several repercussions including lack of faith from customers, potential PR disaster and bribery, nepotism and
theft , conflict of interests, misuse of insider knowledge, use and abuse of confidential information for
personal purposes, public responsibility and accountability , corruption , the influence of interest and
pressure groups and so on. Inflated contract sum, bribery and corruption, shoddy construction and collusion
tendering will be ranked as the effects of unethical practices
.
 CHAPTER FOUR

4.1 WORK PLAN

February March April May

No. Activity Description W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3
1 Conducting a litera
review and preparing and
presenting a research proposal

2 Preparingdatacollectioninstrum
entsandgettingapprovalfromad
visors

3 Contacting and getting

permission from sample
universities by sending letters
of request for participation

4 Obtaining the sampling frame

from all the sample universities
and conducting pilot testing on
the instruments

5 Collecting both the qualitative

and quantitative data

6 Analyzing the collected data

7 Final write-up

8 Submitting the final thesis

9 Defense

The following table shows the timeline to be followed to complete this proposed
study.Table1: Work Plan.
 CHAPTER FIVE

5.1.Plan Budget

Table 2: Budget Breakdown

No. Item Per dime No of No. of Total Cost in Rema

ETB Days Persons ETB rk

200.00 80 1 16,000.00
1. Researcher’s Per-diem
100.00 4 37 14,000.00
2. Assistant Data
Collectors Including
Training
10,000.00 - 3 10,000.00
3. Supervision Fee

Sub-total 40,000.00

5.1. Transport Costs

No. Mode of No of Departure Destination Unit Total

Transportation Days/Rounds price Cost

1 Vehicles/ - - - - 4,000.00
CarRent/
Transport

Sub-total 4,000.00

5.2. Budget Summary

No. Categories Sub-total/in Birr

1. Personnel Expenses 40,000.00

2. Transport Costs 4,000.00

Grand totals 44,000.00

Budget Source: Self

 REFERENCES

Admasu Mamo. (2001). Public procurement Strategic Plan, Adis Ababa

Alberto H,. (2007.Procurement and Public Management: The Fear of Discretion and Quality
of Government Performance. Washington, DC: AEI Press accordingly
EU, October, 2012, A user’s Guide to EU Procurement Rules
Framework Agreements: Practice and Pitfalls www.fenwickelliott.co.uk
Guidelines Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans
and IDA Credits & Grants by World Bank Borrowers
Georgi Batoev and Christian Schlosser (31-05-2013), The advantages and disadvantages of
the various procurement procedures
Innovation in Procurement through Digitalization (2003) Public Procurement Service the
Republic of Korea
Khi V. Thai (2009) “Challenges in Public Procurement”, in Khi V. Thai International
Handbook of Public Procurement, Taylor & Francis Group, LLC
MILLS & REEVE (December 2009)A Guidance on the Use of Framework Agreements
National Open University of Nigeria HCM 343 Procurement and Supply Management
OGC contract management: service delivery 2002
OGC September 2008 Guidance on Framework Agreements in the Procurement Regulations
OECD (2000),“Centralized and Decentralized Public Procurement”, Sigma Papers, No. 29,
OECD Publishing.
OGC/OECD (2007), Integrity in Public Procurement GOOD PRACTICE FROM A TO Z
OGC (December,2008), Good practice contract management framework
The Ethiopian Federal Government (Proclamation No. 649/2009), Procurement and
Property Administration
The Federal Republic June/2010, Procurement Directive Ministry of Finance and Economic
Development
Trade Mark East Africa (2013) Invitation to Participate in Framework Agreement Trade
Procurement Lawyers Association (March 2012) the Use of Framework Agreements in
Public Procurement
Practical Guide to contract procedures for European Union external actions Applicable from
14/03/2013
Procurement for Local Development A Guide to Best Practice in Local Government
Procurement in
 APPENDIX

RIFT VALLEY UNIVERSITY

POSTGRADUATE PROGRAM
College of Management

Questionnaires to be filled in by employees of Harari Public Procurement And Property

Disposal Services Office.

Dear Respondents.

This questionnaire is intended to obtain information in line with Public Procurement Staffs on
“Awareness and Practices of Public Procurement ". The execution of this study greatly
depends on your honest responses to each item. Hence, the researcher kindly requests you to
give your genuine responses. The information and data you provide will be used only for
academic purpose and will be kept confidential. It may take only a few minutes to complete
this questionnaire. No need of writing your name. While filling the questionnaire if you have
any questions, comments. and suggestions, please do not hesitate to call me
0911403077/0912465357 Iliyas Sufiyan (MBA) candidate, 0911403077/0912465357,
iliyassufiyan@gmail.com

Thank your in advance for your willingness and cooperation!

 General Instructions

No need to write your name,

For further information, please contact the student researcher by the above addresses.

In all cases where answer options are available please tick (√) mark in the appropriate box.

Part I. General Background of Respondents (Demographic Information)

Gender;

A) Male B) Female

Age;

A) 21-29 B) 30-39 C) 40-49 D) 50 and above

Educational status; A) Diploma B) Degree C) Masters D) PhD

Years of service in HPPPDSO;

Less than 2 years B) 2 to 5 years C) 5 to 10 years D) More than 10 years

To which category does your position falls? A) Managerial B) Professionals C)

Other support staff

In which department/division of the office you are currently working? --------------------------

Part II. Awareness and Practices of Public Procurement,

Rate each statement on the like point scale of 1-5 where 1=Strongly Disagree (SD),
2=Disagree (D), 3= Moderately Agree (MA), 4= Agree (A) and 5=Strongly Agree (SA).

1. What is the level of Awareness and Practices of Public Procurement in HPPPDSO?

No Item Levels of Agreement

SD D MA A SA

HPPPDSO has assigned all other procurement offices in

1 place? 1 2 3 4 5

2 HPPPDSO assigns manpower to the Procurement 1 2 3 4 5

department based on professional qualification

3 HPPPDSO organizes training for in sustainable public 1 2 3 4 5

procurement ad option to improve staff performance in
your institution.
4 The system of your organization to avoid overlapping of 1 2 3 4 5
procurement practice is clear and well organized.

5 Absence of some basic functional unit in HPPPDSO 1 2 3 4 5

creates obstacle in sustainability issues in public
procurement.
6 Lack of awareness of staff towards sustainable options and 1 2 3 4 5
products

7 There is lack of resistance of top management interference

in procurement practice. 1 2 3 4 5
2. How public procurement units are organized in HPPPDSO?.

No Item Levels of Agreement

SD D MA A SA

1 There is Lack of awareness among procurement practitioners.

1 2 3 4 5

2 There is lack of time pressure of Procurement professionals.

1 2 3 4 5

3 There is lack of sustainable Public procurement policy,

directive, order and in HPPDSO 1 2 3 4 5

4 The sustainable procurement activities adopted by your 1 2 3 4 5

organization are insufficient to bring positive impact on the
organizational performance.
5 The support of top management on sustainable public 1 2 3 4 5
procurement activities adopted by your is due to the absence
of some of functional units of procurement department.
6 The office of contract administrator performance in your 1 2 3 4 5
organization programs effectively in accordance with
procurement practice.
7 The performance of your organization to respond to the 1 2 3 4 5
relevant actual and current procurement procedure lacks
appropriate organization Coherence and Steps.
3. How functional units of public procurement are performing in HPPPDSO?

Level of Agreement
No Item
SD D MA A SA

In de order to achieve a long term result your organization has 1 2 3 4 5

1 to ensure the absence of corruption, impartiality, and wastage
of time and government resource.
The performance of your Organization to carry out 1 2 3 4 5
2 procurement programs is accompanied by accountability,
impartiality and relevant to its beneficiaries.
Appropriate efforts are exerted in the training and development 1 2 3 4 5
3 of employees to ensure effective performance.

Supervisor(s) communicate expectation clearly, provided 1 2 3 4 5

4 feedback and suggestion for performance management.

Leaders recognize and reward performance appropriately in 1 2 3 4 5

5 order to motivate employees.

HPPDSO invests resources to ensure that employees and 1 2 3 4 5

6 managers own the performance management system.

The resources of the organization are committed thoroughly to 1 2 3 4 5

enhancing performance and its management.

7
4. What are the Communication of Strategy and Performance Management System in HPPPDSO?

Levels of Agreement
No Statement
SD D MA A SA

1 Managers/supervisors communicate how the results of the

employee’s work contribute to the unit/organizations goals. 1 2 3 4 5

2 Managers/supervisors provide ongoing performance 1 2 3 4 5

feedback to prevent problem from arising.

3 Managers/supervisors provide ongoing performance

feedback to employees to recognize excellent performance. 1 2 3 4 5

Managers/supervisors work with the employees to remove

4 barriers to success and identify strategies to minimize 1 2 3 4 5
barriers.

Managers/supervisors gather feedback information from

5 other sources – customer input, workplace survey, peer 1 2 3 4 5
feedback, etc.

The manager/supervisor communicates with the employees

6 during the work period about job tasks, to prevent problem 1 2 3 4 5
and keep current.