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 HarariPublic Procurement and Property Disposal Service office

PPPAA Public Procurement and Property Administration Agency
PE Procuring Entity
CSA Central statistics Agency
Mo FED 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
RVU Rift Valley University
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 gapidentified 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.

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 ofHarari 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 therearea broad rangeof reasons for failures, not having
thefundamentalsinplaceisoftenamajorfactorforpoorperformance.
Commoncausesofpoorperformanceassociatedwithinadequate fundamentalsinclude: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 outcome. 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 procurement office
is the office of the department unit of contract agreement management. Contract management
istheprocessofactivelymanagingcontract implementation to ensure the efficient and effective
delivery ofthecontracted outputs 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.

Thekeyobjectivesofcontract managementaretoensurethat thecontract is

deliveredontime,attherightplaceandintheright quantity.Completedtotherequiredspecifications,
standards and quality;Completedwithintheagreedprice.Contractmanagementcontinues throughout
thelifeofthecontract.ThismeansthattheBorrowerneedstoplanfor,
andundertake:Effectiveandefficientmanagementofperformance,deliveryandpayment,
Methodicalandmeasuredchangecontrol, Activeriskmitigationandmanagement,
agileresolutionofissuesanddisputes.
`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 researcherwould 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 researcherwould 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. Theresearcherwould detail my method applied and in the following sections, the
researcherwill 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 thelevel of Awareness and Practices of Public Procurement in HPPPDSO?

2. How public procurement units areorganized in HPPPDSO?

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

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

HPPPDSO?

1.4. Objective the S of the Study

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

1.4.1. General Objective

The main objective of this thesis proposal will be addressing the Awareness and Practices of
Public Procurement at the (HPPPDSO).
 1.4.2. 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:

❖ Find outthe level of Awareness and Practices of Public Procurement.

❖ Assess how public procurement units are organized.

❖ Identify how functional units of public procurement are performing .

❖ Assess the Communication of Strategy and Performance Management System

1.5. 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.

1.6. 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.

1.7. Operational Definitions of Key Terms

Procuring entitymeans 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 bodymean 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 willconcluded framework agreement or public procurement contract;
(noviZakon, 2013).

.Evaluationis 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.

1.8. 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
publicprocurement 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 AtoTesfayeBirhanu 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, AtoTesfaye 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 economic 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 userdepartment 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.
2.7. 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 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.

CHAPTER THREE

3. Research Methodology and Design

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. DescriptionoftheStudyArea
The study is undertaken in Harari city. Harar cityis located ata 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 HarargheZone 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 kilometers 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. ResearchMethod

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 methodology that includes, research
design, Population and sampling technique, types of data and tools,
procedures of data collection and method of data analysis.
3.4. SourcesofData
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.

3.4.1. Primary Sources Data

For this thesis proposal, primary data will be collected through standardizedquestionnaires and
interviews semi-structured interviews.
 3.4.2. 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, SampleSize, andSampling Techniques

3.5.1. 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.

3.5.2. 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 intakinga sample
from each heterogeneous sector, it ensures each subgroupwithin 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 all higher, 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, general
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.

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 througha liker
scale to the employees without administrative responsibilities

3.8. Interview guide

Interviews are primarily done in qualitative research and occur when researchers ask one or
more participants general, open-ended questions and record their answers. Often audiotapes
are utilized to allow for more consistent transcription (Creswell, 2012). The researcher often
transcribes and types the data into a computer file, in order to analyze it after interviewing.
Interviews are particularly useful for uncovering the story behind a participant’s experiences
and pursuing in-depth information around a topic. Interviews may be useful to follow-up with
individual respondents after questionnaires, e.g., to further investigate their responses.
(McNamara, 1999). In qualitative research specifically, interviews are used to pursue the
meanings of central themes in the world of their subjects. The main task in interviewing is to
understand the meaning of what the interviewees say (McNamara, 2009). Usually open-
ended questions are asked during interviews in hopes of obtaining impartial answers, while
closed ended questions may force participants to answer in a particular way (Creswell, 2012;
McNamara, 1999). An open-ended question gives participants more options for responding.
For example an open-ended question may be, “How do you balance participation in athletics
with your schoolwork (Creswell, 2012)”. A closed-ended question provides a preset response.
For example, “Do you exercise?” where the answers are limited to yes or no (Cresswell,
2012).
Collecting data in a questionnaire involves mailing the questions to the respondents in written
format or asking them to fill out forms offline at some events. On the contrary, interviews are
face-to-face interactions or telephonic or online interactions with the candidates.

Types of questionnaire questions here are some common types of questionnaire questions
researcher might ask respondents:

Closed questions: Closed questions provide answers from which the respondents choose one.
For instance, ‘How many years of experience do you have?'

Open questions: Open questions empower the respondents to answer questions in their own
words. For example, ‘How would you define your experience as a manager?'

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 willevaluate the comments and
incorporate them into the finalization. Furthermore, to check thereliability of the
questionnaire, a pilotstudyofthe small samplethatwillconsistofstaff 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 responseswillbeenteredintotheSPSS.
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 proposalwill be conducted primarily through questionnaires, document
analysis and interviews

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
in any qualitative research. In line with this, Hatch (2002) clearly states that “data analysis
inqualitativeresearchisportrayedasmessy,cumbersome,inductive,creative,challenging,subjecti
ve,nonlinear,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
ensureconfidentialityand 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)
arguethat“thematicanalysisisapoorlydemarcated,rarelyacknowledged,yetwidelyusedqualitativ
eanalytical method;itoffersanaccessibleandtheoretically-flexibleapproachtoanalyzing
qualitative data”
After the emerging themes are refined, the final interpretation will be done with regard to
themeanings that the participants attach to their experiences about change leadership and
staffcommitment.Astheinvestigatorwilldeclarehisviewthroughbracketing, it is theparticipants’ view
thatwill be taken into account during this analysis.Finally, the findingswill be validated through
member checking with the participants. In this last activity,
theresearcherwillsendthedocumenttoalltheparticipantsviaemailformember checking
andconstructivecomments. Then, all thecommentswillbeincorporatedintothe final thesisof 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 theprocedures of mixed
method design during data analysis.
 3.13. Ethical Considerations
Ethical concerns and rights behaviors are of paramount importance when planning,
conducting,evaluatingresearch,and(Blumberg,Cooper&Schindler,2005).Research ethics is important
in all research endeavors and it requires that researchers shouldprotect the self-respect and self-esteem
of their respondents

participants,theyshouldalsopublishwelltheinformationthatisresearched(Fouka&Mantzorou,2011).Inthi
sproposedstudy,theinvestigatorwilltrytoconsidertherelevantethicalconsiderations 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 attachedto 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 followthe utmost ethical values of academic and scholarly
principles. Ina nutshell hell, the conduct of this research would strictly follow the highest possible
ethical considerations availableduringdesign, data collection, analysis, interpretation,andpublication.

3.14. 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. WORK PLAN
Table 4.1Research progress
S. No List of Activities APR MAY JUNE JULY

1 Proposal writing and submission

2 Data collection and Analysis

3 Final drafting, writing, and submission

CHAPTER FIVE
5. RESEARCH BUDGET BREAKDOWN
Budget required researching the awareness and practices of public procurement in Harari
Region
Table, 5.1 Perdiem and personal expenses
S.No. Title Purpose Number Number Daily Total payment
of days payment (Birr)
1 Researcher For project 1 10 724.00 7240.00
work
2 Labor force Assisting during 3 10 297.67 8930.00
data collection
3 Major Advising 1 4.5 724 3258.00
advisor
4 Co-Advisor Advising 1 3 724 2172.00
Sub-total 21,600

Table 5.2 Supervision fee

S.No. Item Total Price (Birr)
1 Supervision fee 3000.00
Sub-total 3000.00

Table ,5.3. Stationary cost

S.No
Purpose Unit Quantity Unit Cost (ETB) Total cost

1 Paper binding Pcs 6 66.66 400.00

Sub-total 400.00
Table 5.4 Budget summary
S.No. Description Total Birr
1 Perdiem and personal expenses 21,600.00
2 Supervision fee 3000.00
3 Stationary cost 400.00
Total 25,000.00
Budget source: Self Sponsor

.
REFERENCES
AdmasuMamo. (2001). Public procurement Strategic Plan, AddisAbaba
Alberto H,. (2007.Procurement and Public Management: The Fear of Discretion and Quality
of Government Performance. Washington, DC: AEI Pressaccordingly
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
GeorgiBatoev 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
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 IliyasSufiyan (MBA) candidate, 0911403077/0912465357,
[email protected]

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 place?
1 1 2 3 4 5

2 HPPPDSO assigns manpower to the 1 2 3 4 5

Procurement department based on
professional qualification

3 HPPPDSO organizes training for in 1 2 3 4 5

sustainable public procurement ad option to
improve staff performance in your
institution.

4 The system of your organization to avoid 1 2 3 4 5

overlapping of procurement practice is clear
and well organized.

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

HPPPDSO creates obstacle in sustainability
issues in public procurement.

6 Lack of awareness of staff towards 1 2 3 4 5

sustainable options and products

7 There is lack of resistance of top

management interference in procurement 1 2 3 4 5
practice.

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 1 2 3 4 5
HPPDSO

4 The sustainable procurement activities adopted 1 2 3 4 5

by your organization are insufficient to bring
positive impact on the organizational
performance.

5 The support of top management on sustainable 1 2 3 4 5

public procurement activities adopted by your
is due to the absence of some of functional
units of procurement department.

6 The office of contract administrator 1 2 3 4 5

performance in your organization programs
effectively in accordance with procurement
practice.

7 The performance of your organization to 1 2 3 4 5

respond to the 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 M A SA
A

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

organization has to ensure the absence of
1
corruption, impartiality, and wastage of time and
government resource.

The performance of your Organization to carry 1 2 3 4 5

out procurement programs is accompanied by
2
accountability, impartiality and relevant to its
beneficiaries.

Appropriate efforts are exerted in the training 1 2 3 4 5

and development of employees to ensure
3
effective performance.

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

provided feedback and suggestion for
4
performance management.

Leaders recognize and reward performance 1 2 3 4 5

appropriately in order to motivate employees.
5

HPPDSO invests resources to ensure that 1 2 3 4 5

employees and managers own the performance
6
management system.

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

thoroughly to 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 1 2 3 4 5
contribute to the unit/organizations goals.

2 Managers/supervisors provide ongoing 1 2 3 4 5

performance feedback to prevent problem
from arising.

3 Managers/supervisors provide ongoing

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

Managers/supervisors work with the

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

Managers/supervisors gather feedback

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

The manager/supervisor communicates

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