Performance of Framework Contracts in Selected Local Government Authorities in Manyara Region, Tanzania

Abstract

Generally, the study aimed at assessing the effectiveness of framework contract and its performance in public procurement. Specifically, the study intended to assess the application of framework contracts for common use items and services in achieving value for money; examined the implementation of effective framework contract toward shorten delivery time of common use items and services and examine the complied legal procedure applied in administration of framework contract in public procurement. Furthermore, the study assessed the challenges in the implementation of a framework contract towards achieving costeffectiveness. A cross-sectional research design was used whereby qualitative and quantitative approaches such as interview, questionnaire and documentary review were applied in gathering both primary and secondary data. Purposive and random sampling techniques were used to select the sample size of 69 respondents. The data collected were analysed both qualitatively and quantitatively. The findings revealed that the framework contract performance and effectiveness on the procurement of common use items and services were higher which enabled the procuring entities to obtain value for money. However, the respondents had opinion that the price proposed during formulation of the contract was not realistic compared to the market price value. The proposed price Of GPSA was always much higher than the market price. The study concluded that, to enhance the performance of the framework contract there should be a mechanism for selecting suppliers who financially and technically have the capacity to supply the common use items and services before awarded the contract. The study recommended procuring entities to have the responsibility of monitoring their performance and that of the suppliers to ensure efficiency and cost effectiveness of the contract.