The external pricing factors and final bid pricing decision in public procurement: A case of Uganda Revenue Authority

Abstract

The purpose of the study was to examine the Relationship between External Pricing Factors and Pricing Decision in Public Procurement at Uganda Revenue Authority. The research objectives included the following; to examine the relationship between bidder response assessment and pricing decision in public procurement at Uganda Revenue Authority, to evaluate relationship between competition assessment and pricing decision in public procurement at Uganda Revenue Authority and to assess the relationship between bid requirements assessment and pricing decision in public procurement at Uganda Revenue Authority. A cross sectional study design and a mixed method were entail both the used of quantitative design as this will enable in triangulation of data collected. Cross sectional study enables us examine multiple factors and multiple outcomes in a single study. A sample size of 66 respondents was selected from a population of 80 Contractors and Providers from the Uganda Revenue Authority. A simple random sampling technique was used to sample the population. Findings showed that both the independent and dependent variable interact in a single model, regression analysis was conducted. According to Table 12, bidder response does not contribute to the overall model of pricing decision which is in line with the correlation results. Both competition and bidding requirements had a positive significant contribution towards price decision. The overall pricing decision can be explained using Equation 4.1. y=1.116+0.393(CA)+0.199(BR), y is the pricing decision, CA is competition assessment, while BR is bidding requirements. From the equation model, keeping the bidding requirement constant and increase the competition variable by a unit will increase the bid price by 39.3% with a standard deviation of 0.118. However, an increase in the bidding requirements can escalate the bid price by almost 20 points with a standard deviation of 0.092.