PROCUREMENT PROCESS AND WORKS CONTRACTS PERFORMANCE IN BUSIA MUNICIPAL LOCAL GOVERNMENT IN UGANDA

BENARD OBONYO
14/MPP3/004

A DISSERTATION SUBMITTED TO THE SCHOOL OF MANAGEMENT SCIENCE IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A MASTERS DEGREE IN PUBLIC PROCUREMENT OF
UGANDA MANAGEMENT INSTITUTE

MARCH, 2019

DECLARATION

I, Benard Obonyo, hereby declare that this dissertation entitled “Procurement Process and Works Contracts Performance in Busia Municipal Local Government in Uganda” is my original work that has not been submitted for award of a degree or certificate at any University or Institution.

Signed;  … ………………………………………

Date  : ……………………………………………..

APPROVAL
We, the undersigned, certify that the dissertation titled “Procurement Process and Works Contracts Performance in Busia Municipal Local Government in Uganda” has been submitted with our approval in partial fulfilment of the requirements for the award of the degree of Masters in Public Procurement of Uganda Management Institute

Signed:……………………………………………
Ms. Oluka Pross Nagitta
UMI Supervisor
Date …………………………….

Signed…………………………………………
Dr. Stella Kyohairwe
UMI Supervisor
Date………………………………………………..

DEDICATION

This work is dedicated to my wife and children whose love and encouragement enabled me to push until the end. 

ACKNOWLEDGEMENT

I would like to express my sincere thanks to a number of people whose assistance and contribution made this study possible.

Iam most grateful to my supervisors Ms. Pross Oluka Nagitta and Dr. Stella Kyohairwe who tirelessly encouraged and guided me throughout the study. I am also very much indebted to my lecturers for the knowledge they imparted in me. I am more informed than I joined the institute.
I am greatly appreciative to my colleagues with whom I shared ideas on the subject.   I would also like to appreciate the cooperation from the respondents who participated in the study and without whose responses this study would not have been possible.

Special thanks go to my family members, for the assistance rendered to me during the time of the study both materially, financially, morally and otherwise.  
Finally, I am grateful to respondents at Busia Municipal Local Government for the sacrifice of time, comments, insight, input and suggestions from all interviewees whose contribution resulted into this dissertation.

TABLE OF CONTENTS
DECLARATION
APPROVAL
LIST OF TABLES
ABSTRACT
CHAPTER ONE
INTRODUCTION
1.1 Introduction
1.2 Background of the study
1.2.1 Historical background
1.2.2 Theoretical background
1.2.3 Conceptual background
1.2.4 Contextual Perspective
1.3 Problem Statement
1.4 Purpose of the study
1.5 Objectives of the study
1.6 Research Questions
1.7 Hypotheses
1.8 Conceptual framework
1.9. Significance of the study
1.10 Justification of the study
1.11 Scope of the study
1.11.1   Geographical scope
1.11.2 Time scope
1.12 Operational Definitions of terms and Concepts
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Theoretical Review
2.3 Procurement planning and Contracts performance
2.4 Supplier selection and contract performance
2.5 Administrative Review and contracts performance
2.6 summary of Literature Review
CHAPTER THREE
METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Study Population
3.4 Sampling Size and selection
3.5 sample Techniques and procedure
3.6   Data Collection methods
3.6.1 Questionnaire survey
3.6.2 Face to face interview.
3.7 Data collection Instruments
3.7.1 Questionnaire survey
3.7.2 Interview Guide
3.8 Validity and Reliability of Data Collection Instruments
3.8.1Validity...
3.8.2 Reliability
3.9 Procedure of Data Collection
3.10 Data Analysis
3.10.1 Quantitative Data Analysis
3.10.2 Analysis of Qualitative Data
3.11 Measurement of Variables
3.12 Ethical Considerations
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Introduction
4.1 Response Rate
4.2. Background Demographic Characteristics
4.2.1 Gender characteristics of the Respondents
4.2.2 Age of the Respondents
4.2.3 Respondents by Highest Level of Education
4.3. Empirical Results on the relationship between procurement process and contracts performance in BUMC
4.3.1 Objective One: the relationship between procurement planning and works contracts performance in BUMC
4.3.2 the relationship between procurement planning and works contracts performance in BMC
4.3.3 Objective Two: Supplier selection and contract performance
4.3.4 the relationship between supplier selection and works contracts performance in BMC
4.3.5 Objective Three: The relationship between Administrative review and Contract Performance
4.3.6 the relationship between administrative and works contracts performance in BUMC
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
5.2. Summary of Major Findings
5.2.1: Procurement planning and Contract Performance
5.2.2: Supplier selection and Contract Performance
5.2.3:  Administrative reviews and Contract Performance
5.3. Discussion of Findings
5.3.1: Procurement Planning and Contract Performance
5.3.2: Supplier Selection and Contract Performance
5.3.3 Administrative reviews and Contract Performance
5.4 Conclusions
5.4.1 Procurement Planning and Contract Performance
5.4.2: Supplier Selection and Contract Performance
5.4.3: Administrative reviews and Contract Performance
5.5.1 Procurement planning and contract Performance
5.5.2 Supplier selection and contract Performance
5.5.3: Administrative reviews and Contract Performance
5.6 Limitation of the Study
REFERENCES
APPENDICES
Appendix1: Questionnaire for BUMC Staff
Appendix 2: Interview Guide for BUMC management
Appendix 3: Krejcie and Morgan Table for Determining Sample Size from a Given
Population
Appendix 4: Introductory Letter
Appendix 5: Anti-Plagiarism Report

LIST OF TABLES
Table 1. 1: Status of Procurement Activities
Table 3. 1:population, sample and sampling techniques.
Table 3. 2: CVI Results for the respective sections of the questionnaire
Table 3. 3: Reliability indices for the respective sections of the questionnaire
Table 4.1: Response Rate
Table 4. 2: Summary statistics on the gender of the Respondents
Table 4. 3: Age of the Respondents
Table 4. 4: Distribution of Respondents by Highest Level of Education the Respondents
Table 4. 5: Summary Statistics on procurement planning
Table 4. 6: Correlation Matrix for procurement planning and contract performance
Table 4. 7: Summary Statistics on Supplier selection and contract performance
Table 4. 8: Correlation Matrix for supplier selection and contract performance
Table 4. 9: Summary Statistics on Administrative review and Contract Performance
Table 4. 10: Frequencies, Percentages and Means on Contract Performance
Table 4. 11: Correlation Matrix for Administrative review and contract performance
Table 4. 12: Multiple Regression Analysis for Procurement Process and Contracts Performance

LIST OF FIGURES
Figure 1. 1: Conceptual Framework
Figure 4. 1:Average Procurement Process Compliance Level for Local Governments in Uganda

LIST OF ACRONYMS

BUMC             :              Busia Urban Municipal Council
CAO		:	 Chief Administrative Officer 
CM		:	 Chairman
HC		: 	Health Centre 
HUMCs	: 	Health Unit Management Committees 
ISPI		: 	International Society for Performance Improvement 
LC		:	 Local Government
MOH		:	 Ministry of Health 
RDC		:	 Resident District Commissioner 
SPSS		: 	Statistical Package for Social Scientists  
Std		: 	Standard Deviation 
UGX		: 	Uganda Shillings 
UK		: 	United Kingdom
UMI		:	Uganda Management Institute 
USA		: 	United States of America 
ABSTRACT
The study examined the relationship between procurement process and contracts performance in BMC. Specifically the study investigated the relationship between procurement planning supplier selection and administrative reviews and contract performance in BMC. The study adopted a descriptive cross sectional research design where both quantitative and qualitative approaches were used.  The data was collected using questionnaires and interviews and analysis was done using regression analysis and correlations. Qualitative analysis was done using content analysis. In this study 64 questionnaires were distributed and 61 returned making a response rate of 95.3%.  Findings revealed that there is a positive significant relationship between procurement planning and contract performance in BUMC (r=.452**, p value=0.04<0.05), secondly, there is a positive significant relationship between supplier selection and contract performance in BUMC (r=.639**, p value=0.00<0.05) and thirdly there is a positive significant relationship between administrative reviews and contract performance in BUMC (r=.358*, p value=0.032<0.05).
Conclusion: there is a well-defined procurement processes and a clear procurement plan in BUMC, with a focus on outputs and a ‘whole life’ approach to performance. Interventions in the procurement process mainly through administrative reviews and investigations are not common in BUMC. It was observed that the few administrative reviews were on failure by the entities to properly interpret what is a minor omission or material deviations in the bids during evaluation. It was recommended that: there is need to introduce best value planning. The bid evaluation process should be purely executed on merit if it is to yield fruits. There is need to ensure proper bid evaluation so as to eliminate bidders who bid claiming to poses experience, equipment and qualifications which they donot actually possess. 

CHAPTER ONE
INTRODUCTION
1.1	Introduction
The aim of public procurement is to avail goods, services to the public (Errigde & Mellroy, 2010). This requires good contract performance; however, existing literature depicts many gaps with public contract performance. Indeed Zachary and Nyaboke, Marendi-Getuno (2014) explain that contract performance in public sector is still problematic area. This study therefore examined the relationship between procurement process and contract performance in Busia Municipal Council (BMC). The chapter presents the background to the study and identifies the existing problems in relation to poor contract performance in Busia Municipal Council. In this study the, independent variable is the procurement process while contract performance is the dependent variable. The chapter goes ahead to look at the objectives of the study, purpose of the study, research hypothesis, and conceptual framework among others. 
1.2 Background of the study
The background presents historical perspectives which highlight both the independent and dependent variables in the research study context. It further explains the theoretical perspective which identifies the theory onto which the study was based whereas the conceptual perspective concentrates on defining the independent and dependent variables of the study. Contextual background assessed the current situation on the legal framework and contracts performance. 
1.2.1	Historical background 
 Contract performance is gaining greater importance from across the globe in that it ensures that contractual obligations by both the sourcing supplier and client are met (Masterman, 2010). By 800 BC; there was  a significant, development in  public procurement  in  China and Greek colonies  involving  many procurements transactions being planned, coordinated  and controlled by the two ancients states  with  the objective of improving contract performance, and by the 16th Century the Dutch settlers in South Africa were also practicing  public procurement. During the Second World War (1939-1945) Conventional methods of procurement were used by war strategists while, during the post-world war 11 new methods were tried due to frustrations in contract performance by firms (Masterman, 2010).
From a global perspective, the general agreement on tariffs and trade negotiations of 1947, rejected subjecting governments to GATT procedures simply because of ” nationalistic “policies in the context that our money” should be consumed on “our goods” to manage jobs at home” (Evenett & Hoekman, 2004). In mid-1980s public purchasing was viewed as discriminatory thereby presenting a stumbling block  to the conclusion of a particular European market (Martin, Hartley & Cox, 1997). The existence of these unfair procurement codes as a protectionist engine led to the establishment of the world Trade organization to secure backup for multilateral trade understandings with the view to exclude preferential analysis against governmental suppliers in procurement compromises (Garcia-Alonso & Levine, 2004). In Uganda, before the execution of the Public procurement and Disposal of Public Asset Act 2003 (PPDA), procurement function was evaluated as a transactional case of the organization and it was the case elsewhere in Africa. It was treated as a process associated with” back office” support duty usually actualized by un-skilled people. Gradually there has been need to use funds more effectively and economically to deliver best value for money and thus enhance contract performance (Arrow & Trybus, 2009).
Kabaj (2003) on the other hand urges that any efficient procurement system or arrangement is critical to the development of African economies. Similarly,  Kakwezi  and  Nyeko  (2010)   argue  that    the  procuring  bodies  in  Uganda  are  encountered with  the  dilemma  of  not  having ample  knowledge about  the procurement processes.  In a bid to curb the above, the government of Uganda came up with measures such as stream lining the procurement system which is the centre of focus in this study. 
 1.2.2 Theoretical background
The study was underpinned by the Principal Agency theory. Adam Smith (1937) is perhaps the first author to suspect the presence of agency problem and since then it has been a motivating factor for the economists to cultivate the aspects of agency theory. Smith forecasted in his work 
The principal or the owners, who invest their capital and take the risk to acquire the economic benefits, whereas the agents, who manage the firm are risk averse and concerned in maximising their private benefits. Both the principal and agent are having opposite risk preferences and their problem in risk-sharing creates the agency conflict, which is broadly covered under the agency theory. Ross (1973) and Mitnick (1975) have shaped the theory of agency and came up with two different approaches in their respective works. This theory helps in implementing the various governance mechanisms to control the agents’ action in the jointly held corporations. The theory assumes a contractual agreement between the principal and agent for a limited or unlimited future period, where the future is uncertain. The theory assumes that contracting can eliminate the agency problem, but practically it faces many hindrances like information asymmetry, rationality, fraud and transaction cost. Shareholders’ interest in the firm is only to maximise their return, but their role is limited in the firm. The roles of directors are only limited to monitor the managers and their further role is not clearly defined. The theory considers the managers as opportunistic and ignores the competence of the managers. 
According to Thai (2012), contract performance is about getting value for money from contracted activities. It involves placing considerations on three key elements of contracts which include: timelines, cost efficiency and right quality. It has been realized that in today’s business world firms operate in highly competitive and unpredictable business environment. Therefore organizations need to operate within the set rules. 
1.2.3 Conceptual background
According to Ocharo (2013), procurement is the acquisition of goods, services or works from an external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. According to Dunn (2010) the procurement process generally involves making buying decisions under conditions of scarcity. If good data is available, it is good practice to make use of laws, economic analysis methods such as cost benefit analysis or cost utility analysis. 
 Agaba and Shipman (2007), add that procurement planning is the growth adopted by organizations systematically programs their procurement activity for a given course of time, usually concluded during the budgeting process. Users are required to budget for their procurement related activities. This reflects the beginning point in the procurement planning process. 
Economic commission of Africa (2003) designates procurement planning as the behavior through which organization plan to pick up products and services from exterior providers. An exceptional procurement plan will go one step further by characterizing the process will go over to engage those suppliers contractually or legitimately (Lewis and Roehrich, 2009), which would guarantee contract performance.
Administrative reviews are legal mechanisms available to all providers to seek relief through challenging procurement decisions, where it is inevitably proved that procurement rules were not adhered to (Annika 2014).
Contract performance is the degree of achievement of contract effort or undertaking by an organization (Chitkara, 2005). It is linked to the prescribed contract goals or objectives, which model the organization frameworks. From an organization management view, it is about meeting contract objectives. According to Thai (2012) contract performance is about getting value for money from contracted activities. It involves placing considerations on three key elements of contracts which include: Timelines, cost efficiency and quality. It has been realized that in today’s business world firms operate in highly competitive and unpredictable business environment. Therefore organizations want efficiency, effectiveness, and reliability of suppliers to enable timely delivery of goods and services, certainty of contract performance in regard to cost, quality, time and value for money. 
Quality is the competence of a product or service to appropriate customer/user needs (Heizer & Render, 2010). Quality can also mean, meeting customer obligation, quality as value, customer approach and adoption to forecast. Hansen (2001) noted that the notion of quality appears disintegrated and ambiguous in literature as in practice. The concept notion of quality management has differing meaning within different business zones. It is contemplated to have four main ingredients: quality planning, quality control, quality assurance and quality enhancement. Therefore organization’s need to monitor contract performance if they are to achieve value 
1.2.4 Contextual Perspective
This study focused on best practices that Busia Municipal Local Government takes to ensure that it procures its works of the right quality, from the right source, and delivered at the right sites to enhance contract performance. Busia Municipal local Government is public entity mandated to follow the PPDA Act 1 of 2003. The procurement law provides for best practices that include; procurement planning, supplier selection mechanisms administrative review mechanisms, timelines, and ethical code of conduct of business for both providers and public officials. Besides the above , there are regulations, guild lines, and standard bidding document all engineered by the Regulatory Authority(PPDA) which helps Busia Municipal Local Government to carry out  the procurement functions.   
A number of legal provisions have been laid down in the PPDA Act and PPDA regulations for all the PDEs in Uganda to deal with and monitor contract performance. At least every quarter in each financial year, PDEs in the country are required to report to PPDA Authority on the performance and progress of their contracts as a statutory requirement. However, not many public sector organizations do comply with the provisions of the law and regulation when it comes to monitoring contract performance and as a result, many contracts have been performed beyond their completion time, cost overruns poor quality works. Busia Municipal Council has been a victim of such inefficiencies. In the financial year 2014/2015, the council planned to implement procurement budget of shillings 2,034,000,000 billion. However, by the end of the financial year, the PPDA Audit report for the same year revealed that only 1,207,000,000 had been implement, further still out of this implemented procurements, only 52% were completed the rest had stalled a proxy indicator of poor contract performance. This is evidenced in the Table below:
Table 1. 1: Status of Procurement Activities
FY	Planned procurement activities	Implemented activities	Variance	
2013/14				2,034,000,000	1,207,000,000	827,000,000	
2014/15				1,850,000,000	1,430,000,000	4,200,000,000	
    Source: PPDA procurement audit report 2014/15
1.3 Problem Statement    
In a bid to stream line Busia Municipal Local government procurement system, the district embraced strict adherence to the best practices such effective procurement planning, supplier selection and made it mandatory to assign a contract supervisor for each procurement and disposal contract(BMC Report, 2017). 
Despite the existence of the above systems in place, contract performances are manifested with: delay in contract  implementation (contracts are implemented beyond their time scope), cost overrun, and poor quality of work as established by  various agencies of government. For example, the  Procurement  Audit report for Busia Municipal council, 2016/17 affirmed that, only 52% of contracted  projects were completed in the financial year 2014/15, 42% stalled or  experienced delays, cost overrun and a number of these projects may be linked to irregularities in procurement planning, poor selection of suppliers and lengthy administrative reviews(BMC Report, 2017). The Auditor General’s report of 2016/17 indicated that the contractor for construction of office block has abandoned site and this affected the implementation of the contract. The assertion was also cited by Agaba and Shipman (2004) who contended at the time that despite the existing procurement legal system, contract performance still remains a challenge. Further still, the legal system and procedures that support successful contract performance of a works contracts during implementation were not adhered to, thereby affecting and influencing contract performance (PPDA Annual Procurement report, 2014/15). This study endeavors to find out whether public procurement process contributes to inadequate contract implementation and performance of projects in Busia Municipal Council.
1.4 Purpose of the study
The purpose of the study was to examine the relationship between procurement process and contracts performance in BMC
1.5 Objectives of the study
(i)	To investigate the relationship between procurement planning and works contracts performance in BMC
(ii)	 To evaluate the relationship between supplier selection and  works contracts performance in BMC   
(iii)	To assess the relationship between administrative reviews and contract performance in BMC
1.6 Research Questions
(i)	What is the relationship between procurement planning and contract performance in BMC?
(ii)	What is the relationship between supplier selection and contract performance in BMC? 
(iii)	What is the relationship between administrative reviews and contract performance in BMC?

1.7 Hypotheses 
The following hypotheses was tested
1.	There is a significant relationship between procurement planning and contract performance in Local Governments in Uganda
2.	There is a significant relationship between supplier selection and contract performance in Local Governments in Uganda
3.	There is a significant relationship between administrative and contract performance in Local Governments in Uganda 

1.8 Conceptual framework
In this conceptual framework, the influence of procurement system on contract performance is conceptualized.  The procurement system is viewed as independent variable and contract performance as the dependent variable as shown in Fig 1 below
Dependent variable                                                                             Independent variables                                      
PROCUREMENT PROCESS                                                                     CONTRACTS PERFORMANCE

Supplier selection
•	Specification
•	Evaluation Criteria

Administrative reviews   
•	Complaints by bidder.
•	Appointment of review committee

•	Quality 

•	Cost

•	Time

Procurement planning
•	Needs assessment.

• Needs Identification

                                                                        

Source:   Adapted from the institutional theory which was propounded by Scott in 1995 modified by the researcher 
Figure 1. 1: Conceptual Framework
Fig. 1 Conceptual Framework indicating influence of procurement system on contract Performance.
Figure 1 suggests that the independent variable, the procurement system is conceptualised in three categories and these are: procurement planning, supplier selection and administrative reviews whereas the dependent variable entails: contracts performance which is conceptualised as: quality, cost  and time  The independent variable affects the dependent variable which is contacts performance in BMC. For example poor procurement planning and wrong supplier selection caused by public officials contributes to untimely completion of contracts, cost overruns and poor quality works( Kakwezi and Nyeko, 2010).
1.9. Significance of the study
The study may be of great importance to the researchers in the field of, public procurement and contracts performance. It is anticipated that proposed study will be of help in the following ways: It will help BMC deal with the existing problems of delayed contract completion and poor contract management to improve contract performance hence better service delivery. BMC may also identify weakness in the procurement system and ask for amendment of the PPDA Act 2003, which are hindering better contract performance. 
The study may further act as light to the policy makers especially members of parliament, and other public entities by providing additional data on the already available body of information hence leading to effectiveness in averting public procurement delays in contract implementation through effective policy formulation and implementation procedures to improve contract performance.
The academicians may also use this study results as a reference when undertaking different research studies related to procurements and also for enriching their Knowledge.
The recommendations of this study will caution public officers about the lengthy procurement lead times and corrective measures to improve contract performance.
 1.10 Justification of the study
This study is justified because; poor contract performance in BMC may result into   no attainment of value for money in procurements. BMC has been questioned by the Auditor general many times majorly on delayed completion of contracts (Auditor General Report, 2015). The procurement system at BMCs procurement system is inconsistent with the existing procurement system. The many administrative reviews are a manifestation of the inconsistencies. There is no evidence to show that a related study had ever been done at BMC to look into the existing problem. This study therefore sought to examine the influence of procurement process on contract performance whose outcome may be used to solve problems that were identified during the study as to improve contract performance.
1.11 Scope of the study
 1.11.1 Content scope 
The study focused on investigating the relationship between procurement process and contract performance. The variables of interest were procurement process with emphasis on procurement planning, supplier selection and administrative review, and contract performance variables in terms of quality, cost and time. 
The justification is that no strong evidence to show that a study has been undertaken to examine the effect of procurement system on contract performance with the intention of getting solution to the existing problems. 
1.11.2   Geographical scope 
The study was carried  out in Eastern Uganda in East Africa region at BMC because PPDA Audit and Auditor General reports for financial years, 2013/2014 and 2014/2015, 2015/2016 indicate that entity is among underperforming entities in the region in terms of contract performance, therefore study sought to fill the missing knowledge gap to enhance future contract performance.
1.11.3 Time scope
The study focused on the period 2012 to 2018. It is during that period when the entity started to operate as a fully-fledged unit following the procurement system procedures.
1.12 Operational Definitions of terms and Concepts 
Procurement: refers to the entire process by which BMC acquires goods, services, and works to enable service delivery to the public.
Procurement process refers to the process of planning, supplier selection and making administrative reviews after contract award. 
 Contract performance refers to the attainment of the procurement objectives through contract effectiveness, cost efficiency and reliability of service providers in BMC
  Administrative review refers to a mechanism of addressing bidder complaints by seeking to challenge a procurement decision in BMC. The review seek for any omission or breach of the Act, any regulations, the guidelines, the provisions of bid documents or best practice in BMC
Supplier selection refers to mechanism of choosing the best potential supplier among the many who will ensure delivery of goods, services and or works

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction 
The main aim of this literature review is to analyse the study done before in the context of its contribution to better understanding the research problem of this study and also reveal any gaps that exist in the literature. The chapter presents the literature review of related literature that is presented under following sub headings; theoretical review, procurement planning, supplier selection and administrative review, and contract performance which show different variables that are in the study. Various studies show how procurement planning, supplier selection and administrative review influence contract performance. Contract performance as the dependent variable includes time cost and quality. The criteria of reviewing this literature are based on the objectives of the study so as to gain a clear understanding of influence of procurement system on contract performance.
2.2	Theoretical Review
The study was underpinned by the Principal Agency Theory. Adam Smith is perhaps the first author to suspect the presence of agency problem and since then it has been a motivating factor for the economists to cultivate the aspects of agency theory. Smith forecasted in his work the Wealth of Nations that if an organisation is managed by a person or group of persons who are not the real owners, then there is a chance that they may not work for the owners’ benefit. They argued that the agents might use the property of the firm for their own end, which will create the conflict between the principals and agents. The principal or the owners, who invest their capital and take the risk to acquire the economic benefits, whereas the agents, who manage the firm are risk averse and concerned in maximising their private benefits. Both the principal and agent are having opposite risk preferences and their problem in risk-sharing creates the agency conflict, which is broadly covered under the agency theory. Ross (1973) and Mitnick (1975) have shaped the theory of agency and came up with two different approaches in their respective works. Ross regarded the agency problem as the problem of incentives, while Mitnick considered the problem occurs due to the institutional structure, but the central idea behind their theories is similar. Ross identified the principal–agent problem as the consequence of the compensation decision and opined that the problem does not confine only in the firm, rather it prevails in the society as well. Agency relationship is also a kind of contract between the principal and agent, where both the party work for their self-interest that leads to the agency conflict. In this context, principals exercise various monitoring activities to curb the actions of the agents to control the agency cost. In the principal–agent contract, the incentive structure, labour market and information asymmetry plays a crucial role and these elements helped in building the theory of ownership structure. Perrow (1986) criticised that positivist agency researchers have only concentrated on the agent side of the ‘principal and agent problem’, and opined that the problem may also happen from the principal side. He observed that this theory is unconcerned about the principals, who deceive, shirk and exploit the agents. Furthermore, he added that the agents are unknowingly dragged into work with the perilous working environment and without any scope for encroachment, where principals act as opportunistic. He believed in another way that humans are noble and work ethically for the betterment of the firm. This argument persisted in the finance literature and has become a prominent theory known as stewardship theory. Agency theory discusses the problems that surface in the firms due to the separation of owners and managers and emphasises on the reduction of this problem. This theory helps in implementing the various governance mechanisms to control the agents’ action in the jointly held corporations. The theory assumes a contractual agreement between the principal and agent for a limited or unlimited future period, where the future is uncertain. In relation to the study, the theory assumes that contracting can eliminate the agency problem, but practically it faces many hindrances like information asymmetry, rationality, fraud and transaction cost. Shareholders’ interest in the firm is only to maximize their return, but their role is limited in the firm. The roles of directors are only limited to monitor the managers and their further role is not clearly defined. The theory considers the managers as opportunistic and ignores the competence of the managers.
2.3 Procurement planning and Contracts performance
 Agaba and Shipman, (2007), present procurement planning as the successive stages that organization adopts to plan its activities for a stated time frame. This is usually undertaken at the time the budget process is being handled. Every financial year, users have obligation to budget for staff expenses, and procurement related activities. This takes the beginning point in the procurement planning process. 
According to Economic commission of Africa (2003)  procurement planning is an act that enables institutions obtain their requirements from external suppliers and it usually goes through a series of steps;  (Lewis and Roehrich, 2011). It begins with clear needs assessment, definition of requirements to consolidation and integration of those needs into the whole procurement plan.
 Caldwell, Roehrich, and Davies, (2014) contend that a mistake in the procurement planning has a wide effect on the outcome of the procurement process and therefore may have effect on contract performance. Section 34(2) of the public procurement and Disposal of public Assets Act, 2003 recognises that Procurement planning is a legal requirement for all public entities in Uganda public entities in Uganda. Proper procurement planning at the contract initiation stage, evaluation processes and effective contract management can be critical to facilitating successful contract delivery. Managing the procurement process is an aspect that has a significant impact in ensuring good contract performance since all government institutions that are involved in providing works contracts, go through this process. therefore strengthening procurement systems should be given key attention if contract performance is to improve in African economies (Kabaj, 2003).The underutilization of funds is associated with problems linked to the procurement processes ranging from defining procurement needs, identification of needs, creation of the bidding documents, assessment award of contracts, to contract supervision (Harmonizing Donor Practices for Effective Aid Delivery, 1999). However, the after effects of poor procurement planning can be severe since the success of the preceding processes are reliant on how planning is done. This study attempted to find out whether there is any impact procurement planning has on contract performance in BMC.
2.4 Supplier selection and contract performance
The study looked at the effect of supplier selection in the context of specification and source selection and contract performance in terms of, costs, timely completion and with good quality deliverables. Supplier selection plays an important role in contract performance (Beil, financial resources 2009). Supplier selection process requires significant resources of the organization in terms of finances and time financial resources. As a result, organizations expect significant cost benefits from dealing with suppliers of high value which in turn increases contract performance.  Supplier selection processes include; supplier identification, soliciting for supplier information, evaluating suppliers, setting negotiating and setting contract terms for these suppliers. How each of all this is handled, has an effect on contract performance.
A number of factors make new suppliers important (De Boer, Labro & Morlacchi, 2011). There may be a new supplier who is superior to the old suppliers. The new supplier may have come up with a new production development which supports significant reduction of costs. Alternatively this supplier could have a exceptional cost advantage over the old suppliers, further still the old supplier may go out of business or their costs may result into poor contract performance. According to Hedderic, Gieseke and Ohmsen (2006), identifying a potential supplier is becoming challenging as a result of the need to confirm the supplier’s capability in terms of meeting the buyer’s requirements. The most important job for purchaser’s today is supplier selection. Buyers who do not thoroughly investigate their suppliers have only themselves to blame for any future problems. 

In the contemporary business world, it is becoming challenging to access low cost with high quality products without committed and reliable providers. Therefore the most critical procurement decision today is selection and sustaining competent group of suppliers. In fact this was confirmed by Weber, Current & Benton, 2011. 

The cardinal principle of procurement system is to obtain value for money. In this context, obtaining Value for money means choosing the best offer which represents a combination of overall life cycle costs and benefits which meet BUMC needs. The principle of Best value for money can be applied in all stages of supplier selection where social, environmental and economic factors are considered during the evaluation exercise.    
Muhwezi(2013) in his article on Public procurement reform in Africa, a tool for effective 	 governance of the public sector and poverty reduction notes that open tendering is a competitive public procurement method used for acquiring goods, services and infrastructure works. This method is most favoured by construction clients as observed (Muhwezi, 2013). In the studies conducted by Lubega (20100 titled Decision Criteria for supplier selection in Uganda asserts that competitive tendering was seen as the best way to select a bidder with the lowest price. It was argued in the above studies that using lowest price as yardstick for selecting contractors ensures that the client gets value for money through free and fair competition.  However, this argument was challenged by Muhwezi (2013), who argued that the lowest contemporaneous price is not a guarantee for yielding the overall lowest project cost after execution and on this note the researcher buys the idea. It is on the basis of this idea that the researcher based his argument.
2.5 Administrative Review and contracts performance
According to Annika (2014), Administrative reviews are legal mechanisms available to all providers to seek remedial action and or, benefit from relief where it can be shown that procurement breaches were made. The scholar adds that these reviews are considered an important compliance mechanism. The preventive effect of review procedures are linked to the awareness of all procuring entities to recognize that contracts can be monitored through Audits by bodies such as PPDA. Therefore technical officers ought to behave lawfully.
Similarly, Akech, (2006) contends that integrity in the procurement processes are supervised through different mechanisms: The regulatory bodies such as PPDA tend to provide checklist to entities, leaving these institutions to assess their performance in order to equip them with Audits. These audits are a good step towards assessing the individual performance of the procuring entities against a set of compliance indicators. In cases where audit out comes point towards breach of a procurement rules, more investigations can be inquired into.
The current amendment of the procurement Act came into force in February 14th 2014; the amendments provide for Administrative reviews. According to sections 90 and 96 of the PPDA Act, provides for preliminary mechanisms of the review process, it is clear that continued reviews delays the procurement process and could affect contract performance.  However, issues of deviating from normal procurement channel can be resolved faster by parties affected instead of going for review with a regulatory authority which may be burdened by quiet a number of administrative review issues. Western and Laurence, (2012) and Annika (2014) contended that some characteristics of the legal frameworks limit review systems, these include; the cost to be paid for application of administrative review fees, the mode of communication in which the solicitation documents are prepared, the location between the complaining bidder and the review body and the level of professional capacity in public procurement. On a different view if the review requirements are not limiting and of low threshold, many contractors will be involved in reviews and thereby hindering performance. The legal provisions stipulate whether or not access to review is granted, irrespective of the individual intention of bidder (complainant).  Baquero (2005), in a different argument, points out that traditional government contracts across the world are focused on inputs rather than outputs. The author further urges that efforts should be on what projects can deliver rather than how much the project costs ;which calls for high level of performance management in the entire process .This study investigated whether administrative review systems has effect on procurement system and the general contract performance.

2.6 summary of Literature Review
 This chapter reviewed literature related to the objectives of the study. Various authors were cited to explain how Administrative review, ethical code of conduct of business, and Bureaucratic tendencies affect contract performance. Further to the above research studies provided evidence to the explanations of the effect of Administrative review, Ethical code of conduct of business and Bureaucratic tendencies on contract performance. There have been contradictions among scholars for example Ntayi (2009) and Beck and maker (1986) on bureaucracy. Similarly other scholars also have considered different dimensions of the independent variable and dependent variable from those of this study.  However, all the literature reviewed was not in the context in BUMC which prompts the need to conduct the study tailored to BUMC. Therefore the research bridged the knowledge gap.

CHAPTER THREE
METHODOLOGY
3.1	Introduction
In this chapter, the methodology to be applied was presented in the following sub-headings; research design, study population, sampling techniques and procedures, data collection instruments.
3.2	Research Design
A case study design was adopted because only one organisation (BUMC) is being studied. A case study involves an in depth contextual analysis of related situations in similar organisations, where the nature of the problem seems to be the same as in the current situation (Amin, 2005). In this case, a case study involved an in depth examination of BUMCs procurement system and its influence on works contract performance as well as how it will relate in real life context. Yin (2004) suggested that the case study design is good for contemporary events because the relevant behaviour as related to procurement systems and contract performance in this study cannot be manipulated but this study used a variety of evidence from different sources such as documents, interviews, and questionnaire survey to solicit for information. This design has been selected for this study because it enable the researcher to have adequate time to obtain in depth information about the influence of procurement systems on contract performance given that only Busia participated in the study. This is consistent with Amin (2005) who defines a case study research as that which analyses only a few subjects. Quantitative and qualitative approaches were co-opted in this study in order to provide a more comprehensive picture of the issue under study. Using both approaches can help enrich the comprehensive analysis of findings of the study. Mugenda and Mugenda  (1999).  
3.3 Study Population
 Sekaran (2005) describes population as a group of individuals, objects or items out of which samples can be removed from, for purposes of measuring elements that have at least some characteristics in common.  A population is the aggregate or totality of objects or individuals having similar characteristics that can be of interest to this study and where references can be made. The study involved 72 BUMC employees and contractors as shown in Table 3.1. The following participants were chosen that is; procurement unit staff, contractors, accounts staff, town clerk, engineering staff and the political wing because they are involved in influencing procurement systems and contract performance at BUMC.
3.4 Sampling Size and selection
 A sample is a collection of subset of elements in a given population. According to Mugenda and Mugenda, (2003), sampling is the statistical practice which deals with singling out of individual observations which are aimed at yielding output about a given area of study, particularly for purposes of statistical references. The authors also guide that the investigator had to utilise at least 30% of the targeted sample size. The sample size for this study consisted of the following categories of the subjects as shown in the Table 3 the sample size has been determined using Krejcie & Morgan (1970) sample table.
Table 3. 1:population, sample and sampling techniques.
Sub group	Population	sample	Sample technique	Data 
collection instruments	
Procurement and Disposal unit staff	 2	2	Simple random sampling	Questionnaires	
Accounts staff	4	4	Purposive sampling	Interview	
Works and Engineering staff	6	6	Purposive sampling	Interview	
Political wing	6	6	Purposive sampling	Interview	
Service providers	46	43	Convenience sampling	Questionnaires	
Total	64	61			

     Source: Administration BUMC (2018)
Table 3; the first column represents the different categories of people the study targeted. The second one presents the total population of the various people that were targeted. The third column represents sample of people that were selected from the targeted category of people. The fourth column shows the sample techniques that were used. While the fifth column shows the data collection instruments that were used. As indicated in Table 3, the chosen sample size covered five categories of respondents. Out of a population of 64, sample of 61 respondents was selected.
3.5 sample Techniques and procedure
BUMC procurement unit staff, Accounts staff, and Engineering staff from, participated in the study as key informants. In this case purposive sampling was used to choose the key informants. The reason why purpose sampling was used for this category of respondents is because of their active role and knowledge in the procurement activity and therefore expected to provide detailed and technical information on the effect of procurement systems on contract performance in BUMC. For the procurement and disposal unit officers, simple random sample was used since they are many in number and using it eased their selection. Convenience sampling was used for selection of providers because they are not stationed at BUMC Headquarters. Thus creating a need to approach any provider who were found at the offices and requested to participate in this study.
3.6   Data Collection methods
Three categories of data collection instruments were applied and they included; use of questionnaire surveys, face to face interviews and documentary review, which are briefly explained below. These helped the researcher to get descriptive and statistical information about the procurement systems and contracts performance in BUMC.
3.6.1 Questionnaire survey
This refers to a data collection method which was used for collecting information from procurement and disposal unit staff and providers using a standard questionnaires (Mugenda &  Mugenda, 1999). This method involved collecting information from a sample of 10 PDU in a systematic way as indicated by Creswell (2009).
Amin (2005) recommends questionnaire survey because of its level of capability in representing a bigger population. Since many respondents are involved in answering the survey, the data that is being collected provides a better understanding of what is being studied. The high representativeness brought by the questionnaire survey makes easier for the researcher to find the statistical significant results than other data gathering methods (sekaran, 2009). The questionnaire survey was used for these categories of respondents because they are many in number and also to save on time to interview as recommended by Amin (2005). 
3.6.2 Face to face interview.  
This is a data collection method where the interviewer communicates directly with the respondent based on the prepared questionnaire (DiCicco-Bloom& Crabtree, 2006). Face to face interviews were used for collection of data from procurement officers, Accountants, and Engineers from works Department. It is assumed that the said officers have vital information on BUMC.
Basing on the ideas of Mugenda and Mugenda (1999), semi structured- interviews were designed for purposes of gathering information relating to the research. Open ended questions are going to be used such that useful questions that might crop up between the interviewer and the interviewee are discussed and concluded there and then.
Semi structured interviews are commonly used interview formats for quality research (DiCicco-Bloom & Crabtree, 2006).  In this research the interrogating interviewing technique were applied in order to get in depth information and explanation from the respondents as recommended by (DiCicco-Bloom& Crabtree, 2006). This is because respondents usually need stimuli to clarify their own answers and paraphrase the ideas to better understanding more easily on the outcomes of the study.
3.7 Data collection Instruments
Under here, there were three categories of data collection instruments which were used and these included; use of questionnaire surveys, face to face interviews and documentary reviews checklist which are briefly explained below.
3.7.1 Questionnaire survey
Under this arrangement, self-administered questionnaires (SAQs) were applied to gather quantitative data from PDU staff and providers. It was used for this group of respondents because their number is big and also to save time for interviewing. According to Amin (2005) and Mugenda and Mugenda (1999), the SAQs are inform of closed ended or structured questions. The standard questionnaire contained a list of possible alternatives from which respondents chose the answer that best suits the situation (Mugenda & Mugenda, 1999). The questionnaire helped in collection of numerical data on procurement systems and contract performance (Likert scale) to generalise the findings of the sample population. The closed ended questionnaires were helpful in coding data during analysis.
3.7.2   Interview Guide
The interview guide was applied to process qualitative data from the respondents who had to give technical information during the face to face interview. Creswell (2009) and Kothari (2004) confirm that interview guide consists of a set of questions that the researcher asked face to face during the interview.
An   interview had structured questions (Mugenda& Mugenda,, 1999; Kothari 2004). Structured interviews required specific responses and predetermined answers. The study presented questions to project supervisors and end users so that their views were captured by the researcher. The data got supplemented the one obtained through the questionnaire.
3.8 Validity and Reliability of Data Collection Instruments
Validity and reliability are pillars of the scientific method (Kent, 2001). For assessment to be reliable, it had to be free of any bias. Reliability and validity are concepts which define and measure bias and distortion. The explanation of   how validity and reliability was determined in the study as indicated in the subheadings below.
3.8.1	Validity
The validity of instruments for the research was established by use of two experts, one was the 1st supervisor and other supervisor all of which at Uganda Management Institute. These experts helped in establishing the relevancy of content in the instruments, whether it covers all aspects the study intended to investigate. They also helped to determine the phrasing of the questions in order to avoid ambiguity. 
The Content Validity Index (CVI) was computed after the experts’ rating of the items in the questionnaire to test the validity of the research instruments. The researcher used the following formula: Content validity index (CVI) = (Relevant items by  judges as suitable      x100
                                                                            Total Number of items judged
If it happens that content validity index equals to or is greater than the recommended minimum value of 0.70 (Kent, 2001), it meant that the questionnaire is valid for data collection. Validity results are given below

Table 3. 2: CVI Results for the respective sections of the questionnaire
Variable 	Description 	No. of Items 	Cronbach alpha 	
Independent 	Procurement Planning  	8	0.903	
	Supplier selection 	8	0.855	
	Administrative reviews 	                  11	0.799	
Dependent 	Contracts Performance 	7	0.735	
      Source: SPSS output file (2019)
From Table 3.2, the CVI for the questionnaire as computed was 70%. According to Amin (2005), a CVI of 0.7 means the instrument will collect valid data. Therefore; the CVI of 0.70 (70%) was good enough to indicate that the questionnaire used was valid.
3.8.2 Reliability
The data from the field was analysed and entered into the computer for both descriptive and inferential statistics. The questionnaire was pre-tested to 10 respondents from a sample population and the reliability results were calculated using Statistical Package for the Social Sciences (SPSS). 
As long as the coefficient equals to or is above the recommended 0.70 (Amin, 2005), it implies that the questionnaire is suitable for data collection. The reliability results are given below in Table 3.2

Table 3. 3: Reliability indices for the respective sections of the questionnaire
Variable 	Description 	No. of Items 	Cronbach alpha 	
Independent 	Procurement Planning  	8	0.788	
	Supplier selection 	8	0.834	
	Administrative reviews 	11	0.712	
Dependent 	Contracts Performance 	7	0.802	
       Source: SPSS output file (2019)
According to Cronbach’s Alpha Reliability Coefficient for Likert-Type Scales (Cronbach, 1971), the questionnaire was considered reliable since all the coefficients in Table 3.3 were above 0.7 which is the least recommended CVI in survey studies (Amin, 2005; Gay, 1996 ).
3.9 Procedure of Data Collection
After all the necessary approval of the  proposal by the relevant authorities at Uganda Management Institute, the researcher was given  introductory letter to BUMC seeking for  permission  to carry out the  study in this entity.  After approval by the authorities at BUMC the researcher then presented a consent letter to the respondents, after which, questionnaires was distributed. The respondents were given reasonable time within which they should answer and return the fully filled questionnaires.  There after the questionnaire, the researcher collected, sorted, and coded them. Dates were also set for the interviews with the key respondent (technical staff) and then documentary review followed.

3.10 Data Analysis
This refers to a process where data is transformed into usable information, usually presented in the form of a published analytical article, which can be value addition to the statistical output (Amin, 2005). There were two types of analysis which were conducted and these included quantitative and qualitative analyses. The subsections below offers further explanation in detail.
3.10.1 Quantitative Data Analysis 
The analysis of quantitative data was done using frequencies and percentages also referred to as descriptive statistics together with inferential statistics (Pearson correlation coefficient and regression). This was for considering the respondent’s take on procurement systems and contract performance. Pearson correlation and coefficient determined helped test the degree of relationship between the dependent and independent variables. It is recommended that with an ordinal scale, Pearson correlation coefficient is ideal for determining relationships because it does not involve means and standard deviations, which are meaningless with ordinal data (Amin, 2005). The coefficient of determination was applied determining the influence of procurement systems on contracts performance given that the correlation coefficient simply determines relationship. The sign of the correlation coefficient (+ or -) was applied in determining the nature of relationship. The significance of the correlation coefficient (p) was used for determining the confidence in the findings. The regression coefficient (R) determined the linear relationship between variables. This was then squared and adjusted to determine how much variance in the dependent variable is caused by the dimensions of the independent variables as per hypothesis.

3.10.2 Analysis of Qualitative Data
This analysis involved the contents of qualitative data that were edited and reorganised into meaningful phrases. This require analysis of data using qualitative analysis; where the themes, categories, and patterns are known, the recurrent themes, which resulted into a relation to each guiding question from the interviews, were presented in the findings, with selected direct quotations from respondents presented as illustrations.
3.11 Measurement of Variables
There was an ordinal measurement for the questionnaire, which grouped and ranked the variables. 
In this case, opinion data relating to the  study variables were collected using a Likert scale on the basis of the five scales: 5 = strongly agree; 4: agree; 3: not sure; 2 = disagree; 1 = strongly disagree.
3.12 Ethical Considerations
The underlying ethical norms in research include; promoting original research and avoid fabricating data which can misrepresent research data and avoid any errors. It usually requires a great deal of team work from the different stake holders while recognising the need for mutual respect, cooperation and trust (Kaggwa, 2004).

 In this study, ethical considerations are important in safeguarding discipline to enable the researcher to acquire rightful data (Sekaran, 2003).The identity of respondents  was obtained and kept in confidentiality and   they  were also consulted when they are free and available to attend to the researcher. Safeguarding the integrity and rights of all respondents in this study was key until the research work was concluded and the findings ready for everyone to read. Questionnaires were distributed only during working hours at the respondent's workplace.  All the necessary feedback on this study regarding the advantages and disadvantages was availed to the respondents, with a chance to ask vital questions regarding the research. Similarly any citation pointed out was clearly acknowledged by way of references to avoid plagiarism (Amin, 2005).

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0 Introduction
This Chapter presents the findings, analysis and interpretations to the findings. The findings are presented according to the following objectives: to investigate the relationship between procurement planning and works contracts performance in BMC, to evaluate the relationship between supplier selection and  works contracts performance in BMC   and to assess the relationship between administrative reviews and contract performance in BMC. The task was preceded by a discussion of the response rate and the background characteristics of the respondents. The information on the sample characteristics of the study respondents emerged from the background section of the survey questionnaires. The results are presented using descriptive statistics in form of percentages and frequencies. For each of the study objectives, before the bivariate and multivariate results are presented, the descriptive results in terms of means, frequencies and percentages are first presented
4.1 Response Rate

Presentation of tabulated data according to respondents’ response rate
Table 4.1: Response Rate
Instrument 	Target 	Actual Response	Response rate	
Questionnaire 	64	61	95.3%	
Source: Primary Data (2017)
Table 4.1 above presents the response rate from the study. The number of questionnaires distributed were 64 and 61 were returned making a response rate of 95.3%.  Face to face interviews were carried out with the respondents; in total 07 respondents were interviewed. Creswell (2003) noted that a response rate above 50% of the target number is adequate.
4.2. Background Demographic Characteristics 
This section presents findings on demographics of the respondents, namely; gender, age, education, working experience, and position of the respondent, below. 
4.2.1 Gender characteristics of the Respondents
The gender characteristics of respondents were investigated for this study, and findings are presented in Table 4.2. 
Table 4. 2: Summary statistics on the gender of the Respondents
	Frequency	Percentage	
Valid	Male	28	45.9	
	Female	33	54.1	
	Total	61	100.0	
Source: Primary Data (2017)                                                              N=61
Table 4.2 shows that the majority of the respondents were female (54.1%) and male were (45.9%). Although the gender findings indicated a discrepancy in favour of females, the study was representative of all sexes since both males and females were included in the study sample. This implies that BUMC is an equal opportunity employer that does not discriminate on grounds of sex.
4.2.2 Age of the Respondents
The study looked at age distribution of the respondents by age using frequency distribution. The results obtained on the item are presented in Table 4.3 below

Table 4. 3: Age of the Respondents
	Frequency	Percent	
Valid	20-29	11	18.0	
	30-39	20	32.8	
	40-49	29	47.5	
	50 Above	1	1.6	
	Total	61	100.0	

Source: Primary Data (2019)                                                          N=61
From the above table, the majority of respondents who took part in the study were between 40-49 years implying 47.5%%, 32.8% were between the age of 30 -39, those between 20-29 years were 18% and those that were above 50 years were 1.6%. This indicated that all categories of respondents in reference to different age groups were represented in this study. 
4.2.3 Respondents by Highest Level of Education 
The Table 4.4 presents the summary statistics on level of education of the respondents. 
Table 4. 4: Distribution of Respondents by Highest Level of Education the Respondents

	Frequency	Percent	
Valid	Masters	10	16.4	
	Bachelors	31	49.2	
	Diploma	13	21.3	
	Certificate	6	9.8	
	Others	1	1.6	
Total	61	100.0	

Source: Primary Data (2019)                                                              N=61
The majority of the respondents were Bachelor’s degree holders making a total percentage of 49.2%, the respondents with Masters were 16.4% and the respondents with Diplomas were 21.3% and the certificate holders were 9.8%. These results indicate that the respondents had good qualifications and the right skills and knowledge to deliver. Besides, the respondents were able to understand, read, interpret the questionnaire and gave relevant responses.
4.3 Empirical Results on the relationship between procurement process and contracts performance in BUMC
In this section, the empirical results for each of the specific research objectives is presented, analysed and interpreted with an overall goal of demonstrating how procurement process influences contracts performance in BUMC
4.3.1 Objective One: the relationship between procurement planning and works contracts performance in BUMC
The items were structured basing on the objectives of the study. Items were measured on a five-point Likert scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Undecided, 4 = Agree and 5 = Strongly Agree and  analyzed basing on 8 items which are statistically tabulated and presented in the table below with the frequencies and percentages according to the responses collected.
     Table 4. 5: Summary Statistics on procurement planning
Items	Disagree	Neutral	Agree	Mean	
The procurement needs  are well defined 	13 (21.4%)	15 (24.6%)	30 (49.1%)	3.24	
Procurement needs are consolidated as per departmental needs	11 (16%)	8 (13.1%)	41 (67.2%)	3.63	
Procurement needs are well aligned with BUMCs procurement plan 	11 (4.9%)	5 (8.2%)	50 (81.9%)	4.15	
Users are usually involved in procurement needs assessment	12 (19.7%)	7 (11.5%)	37(60.7%)	3.80	
5.	Procurement needs are properly integrated into the procurement plan	11(18.1%)	10 (16.4%)	38 (62.3%)	3.79	
6.	Procurement plans are linked to procurement activities	9 (14.8%)	6 (9.8%)	40 (65.6%)	3.85	
The process of determining procurement needs is satisfactory	10 (16.4%)	8 (13.1%)	39(63.9%)	3.80	
The funding of procurement needs is satisfactory	5 (8.2%)	8 (13.1%)	45 (73.8%)	4.03	
Source: Primary Data (2019)                                 N=61
As to whether the procurement needs are well defined, interview findings indicated that cumulatively, the larger percentage (49.1%) of the respondents agreed, 24.6% were neutral and 21.4% disagreed.  The mean = 3.2 was above the median score, three, which on the five-point Likert scale used to measure the items indicated that the respondents agreed that the procurement needs  are well defined. Procurement needs are consolidated as per departmental needs (16%) disagreed, (13.1%) were neutral while (67.2%) agreed. The mean = 3.63 above the median score, three, that indicated procurement needs are consolidated as per departmental needs. 
With regard to whether procurement needs are well aligned with BUMCs procurement plan, cumulatively the larger percentage (81.9%) agreed, (8.2%) were neutral with (4.9%) disagreeing. The mean = 4.15 which corresponded to agreed indicated that procurement needs are well aligned with BUMCs procurement plan. Users are usually involved in procurement needs assessment, cumulatively the larger percentage (60.7%) agreed, (11.5%) were neutral with (19.7%) disagreeing. The mean = 3.80 meant that the respondents agreed that users are usually involved in procurement needs assessment.
With respect to whether procurement needs are properly integrated into the procurement plan, cumulatively the larger percentage (62.3%) agreed, (16.4%) were neutral while (18.1%) disagreed. The mean = 3.79 which corresponded to agreed indicated the majority of the respondents agreed that procurement needs are properly integrated into the procurement plan. Procurement plans are linked to procurement activities (65.6%) agreed, (9.8%) were neutral while (14.8%) disagreed. The mean = 3.85 above the median score, three indicated that procurement plans are linked to procurement activities. The process of determining procurement needs is satisfactory, it was found that cumulatively, the larger percentage (63.9%) of the respondents agreed, (13.1%) were neutral and (16.4%) disagreed.  The mean = 3.80 was above the median score, three, which on the five-point Likert scale used to measure the items indicated that the process of determining procurement needs is satisfactory. 
With regard as to whether the funding of procurement needs is satisfactory (8.2%) disagreed, (13.1%) were neutral while (73.8%) agreed. The mean = 4.03 above the median score, three, that indicated that the funding of procurement needs is satisfactory.
Another staff said “ there is always a procurement plan in place. As procurement personnel, we are always kin not to fault though in a few instances it happens. We are trained to ethically demonstrate skills as we are well trained in the job that we do”
A procurement staff noted “the district management undertakes the planning for what to procure. In the process it also documents who will be responsible and when. There is a lot in terms of efficiency in the procurement process whenever the district local government abides with the available procurement regulations as set by PPDU “ 
It was established from the respondents that the majority of the respondents 29% disagreed with the item that stated that the process of planning gives avenues for loopholes during procurement process. The statistical tabulation revealed a mean of 2.001 which indicated that the process of planning does not give avenues for loopholes during the procurement process. Similarly the procurement officials noted planning is always tricky, the process of planning may give avenues for loopholes. A review of the PPDA records revealed that BUMC had submitted its procurement plans for the year under study.
4.3.2 The relationship between procurement planning and works contracts performance in BMC
Hypothesis one stated that there is a significant relationship between procurement planning and contract performance in Local Governments in Uganda. The hypothesis was tested using the Pearson correlation coefficient and the regression analysis, results of the hypothesis are given below.

Table 4. 6: Correlation Matrix for procurement planning and contract performance
Correlations	
	Procurement planning	Contract performance	
Procurement planning	Pearson Correlation	1	.399**	
	Sig. (2-tailed)		.004	
	N	61	61	
Contract performance	Pearson Correlation	.399**	1	
	Sig. (2-tailed)	.004		
	N	61	61	
**. Correlation is significant at the 0.01 level (2-tailed).	
Source: Primary Data (2019)                                                N = 61

The results in Table 4.6 showed that the coefficient was .399** and p value=0.000<0.05. Therefore according to the results there is a significant positive relationship between procurement planning and contract performance in BMC. The relationship between procurement planning and contract performance in BMC is statistically significant. An improvement on procurement planning will lead to an improvement on contract performance.  This implies, the alternative hypothesis that was earlier stated in chapter one is upheld. The correlation coefficient is a numerical way to quantify the relationship between two variables, i.e the independent and dependent and it is indicated by the symbol R. The correlation coefficient is always between -1 and 1, thus -1 < R < 1. The hypothesis is rejected if the earlier hypothesis was alternate meaning the finally tested hypothesis is null and the vice versa. 
A regression analysis was further done to determine the strength of the relationship between procurement planning and contract performance. Results are presented in the table 4.7 below.
4.3.3 Objective Two: Supplier selection and contract performance
The items were structured basing on the objectives of the study. Items were measured on a five-point Likert scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Undecided, 4 = Agree and 5 = Strongly Agree and  analysed basing items which are statistically tabulated and presented in the Table 4.7 below with the frequencies and percentages according to the responses collected.
      Table 4. 7: Summary Statistics on Supplier selection and contract performance
Items	Disagree	N	Agree	Mean	
BUMC's specifications , bill of quantises  and terms of reference for its procurement describe the best requirements	13 (21.3%)	10 (16.4%)	33 (54.1%)	4.26	
At BUMC, procurement staff, adheres to all specifications for its procurement.	12 (29.5%)	11 (18%)	40 (47.6%)	3.18	
BUMC 's specifications for its procurement identify quality operational characteristics	16 (26.3%)	17 (27.9%)	30 (36.5%)	3.89	
BUMC  Project supervisors always inspect  and verify that works conform to statement of requirements  for  a given procurement	14 (23%)	11 (18%)	31 (50.8%)	3.89	
BUMC sets evaluation criteria and makes it known to providers	17 (27.9%)	9 (14.8%)	30 (49.2%)	3.17	
BUMC strictly adheres to the evaluation criteria	13 (21.3%)	13 (21.3%)	33 (52.5%)	3.44	
BUMC undertakes due diligence for its providers.	17 (28.2%)	8 (13.1%)	24 (38.8%)	3.36	
           Source: Primary Data (2019)                                 N=61 

With respect to whether BUMC's specifications, bill of quantises  and terms of reference for its procurement describe the best requirements, cumulatively the larger percentage (54.1%) agreed, (16.4%) were neutral with (21.3%) disagreeing. The mean = 4.26 which corresponded to agreed indicated the majority of the respondents agreed that BUMC's specifications , bill of quantises  and terms of reference for its procurement describe the best requirements. 
Opinions were further sought as to whether at BUMC, procurement staff, adheres to all specifications for its procurement. (47.6%) agreed, (18%) were neutral while (29.5%) disagreed. The mean = 3.18 above the median score, three, that indicated that at BUMC, procurement staff, adheres to all specifications for its procurement. As to whether BUMC 's specifications for its procurement identify quality operational characteristics (36.5%) of the respondents agreed, (27.9%) were neutral and (26.3%) disagreed.  The mean = 3.89 indicated that BUMC 's specifications for its procurement identify quality operational characteristics.
Responses to whether BUMC project supervisors always inspect and verify that works conform to statement of requirements  for  a given procurement (50.8%) agreed, neutral were (18%) while (23%) disagreed. The mean = 3.89 indicated that BUMC  Project supervisors always inspect  and verify that works conform to statement of requirements  for  a given procurement.
With respect to whether BUMC sets evaluation criteria and makes it known to providers (49.2%) agreed, (14.8%) were neutral, with (27.9%) disagreeing. The mean = 3.17 which corresponded to agreed indicated the majority of the respondents agreed that BUMC sets evaluation criteria and makes it known to providers. BUMC strictly adheres to the evaluation criteria (21.3%) disagreed, (21.3%) were neutral while (52.5%) agreed. The mean = 3.44 meant that BUMC strictly adheres to the evaluation criteria.
With respect to whether BUMC undertakes due diligence for its providers (38.9%) agreed, (13.1%) were neutral with (27.9%) disagreeing. The mean = 3.36 which corresponded to agreed indicated the majority of the respondents agreed that BUMC undertakes due diligence for its providers. 
A staff noted that “procurement is done in a professional and transparent manner. Bids are kept in lockable cabin and accessed when needed. Selection is based on competitive bidding (best evaluated bidder).
It was established from the respondents that the majority of the respondents 90.3% agreed with the item that stated that the current bid evaluation methodologies eliminates competent contractors/suppliers on minor eligibility requirements. 
Another staff said “to me the way the procurement process is handled is fairly efficient but with some few delays here and there. These delays come from some heads of department who don’t respond in time”
The respondents were asked during interviews how pre-qualified contractors are ranked and so study findings revealed that: Prequalified Contractors are ranked based on recent performance scores. Ranking may be used to differentiate the higher performing contractors from those with lesser performance or those with no recent performance history.  Ranked lists are used in the selective tendering process to guide tenderer selection committees when making decisions in the selection of contractors to be offered opportunities to tender on future work. 
4.3.4 the relationship between supplier selection and works contracts performance in BMC
Hypothesis Two stated that there is a significant relationship between supplier selection and contract performance in Local Governments in Uganda. The hypothesis was tested using the Pearson correlation coefficient and the regression analysis and results of the hypothesis are given in Table 4.8 below.
Table 4. 8: Correlation Matrix for supplier selection and contract performance

Correlations	
	Supplier selection	Contract performance	
Supplier selection	Pearson Correlation	1	.705**	
	Sig. (2-tailed)		.000	
	N	61	61	
Contract performance	Pearson Correlation	.705**	1	
	Sig. (2-tailed)	.000		
	N	61	61	
**. Correlation is significant at the 0.01 level (2-tailed).	

Source: Primary Data (2019)       N = 61

The results in Table 4.8 showed that the coefficient was .705** and p value=0.000<0.05. Therefore according to the results there is a significant positive relationship between supplier selection and contract performance in BMC. The relationship between supplier selection and contract performance in BMC is statistically significant. An improvement on supplier selection will lead to an improvement on contract performance.  This implies, the alternative hypothesis that was earlier stated in chapter one is upheld. The correlation coefficient is a numerical way to quantify the relationship between two variables, i.e the independent and dependent and it is indicated by the symbol R. The correlation coefficient is always between -1 and 1, thus -1 < R < 1. The hypothesis is rejected if the earlier hypothesis was alternate meaning the finally tested hypothesis is null and the vice versa. 
A regression analysis was further done to determine the strength of the relationship between supplier selection and contract performance at BUMC. Results are presented in the table 4.10 below.
4.3.5 Objective Three: The relationship between Administrative review and Contract Performance
The items were structured basing on the objectives of the study. Items were measured on a five-point Likert scale where code 1 = Strongly Disagree, 2 = Disagree, 3 = Undecided, 4 = Agree and 5 = Strongly Agree and  analysed basing on 11 questions which are statistically tabulated and presented in the table below with the frequencies and percentages according to the responses collected.
Table 4. 9: Summary Statistics on Administrative review and Contract Performance
Items	Disagree	N	Agree	Mean	
The administrative review is part of the procurement system in Public procurement. 	11(17.2%)	6 (9.9%)	36 (59%)	4.48	
Administrative reviews are always handled by the Accounting officers immediately on receipt of complaint.	14 (22.9%)	5 (8.2%)	36 (59%)	3.58	
Administrative  review  mechanism are well understood by bidders	9 (14.8%)	11 (18%)	31 (50.6%)	4.13	
Administrative reviews help unsuccessful bidder get the right procurement decision.	18 (29.5%)	10 (16.4%)	29 (47.5%)	3.22	
PPDA recommendations on administrative review process are  properly implemented	13 (21.3%)	11 (18%)	31 (50.7%)	4.14	
Feedback system   on the administrative review outcome is satisfactory 	13 (21.3%)	12 (19.7%)	28 (37.9%)	3.39	
Administrative review mechanism brings Accountability and Transparency to minimise procurement graft is satisfactory.	15 (24.6%)	10 (16.4%)	31 (50.8%)	3.41	
Bidders are aware of the procedures of challenging the outcome of procurement process.	20 (32.8%)	4 (6.6%)	34 (55.8%)	3.29	
Administrative reviews are costly both to the entity and the complainant (bidder)	18 (29.5%)	7 (11.5%)	32 (52.5%)	3.38	
At BUMC firms that challenge the procurement decisions are blacklisted.	12 (19.7%)	7 (11.5%)	38 (62.3%)	4.48	
Source Primary Data (2019)                                 N=61

With respect to whether the administrative review is part of the procurement system in Public procurement.  (59%) agreed, (9.9%) were neutral with (17.2%) disagreeing. The mean = 4.48 which corresponded to agreed indicated the majority of the respondents agreed that the administrative review is part of the procurement system in Public procurement. 
Responses to the question as to whether administrative reviews are always handled by the Accounting officers immediately on receipt of complaint (59%) agreed, (8.2%) were neutral while (22.9%) disagreed. The mean = 3.58 indicated that administrative reviews are always handled by the Accounting officers immediately on receipt of complaint. 
Administrative review mechanisms are well understood by bidders (60.6%) of the respondents agreed and 14.8% disagreed.  The mean = 4.13 indicated that the respondents agreed that administrative review  mechanism are well understood by bidders.
On the other hand, responses as to whether Administrative reviews help unsuccessful bidder get the right procurement decision (47.5%) agreed, 16.4% while 29.5% disagreed. The mean = 3.22 indicated that administrative reviews help unsuccessful bidder get the right procurement decision. PPDA recommendations on administrative review process are properly implemented (50.7%) agreed, (18%) were neutral, with 21.3% disagreeing. The mean = 4.14 which corresponded to agreed indicated that PPDA recommendations on administrative review process are properly implemented. 
Feedback system   on the administrative review outcome is satisfactory (37.9%) agreed, (19.7%) were neutral while (21.3%) disagreed. The mean = 3.39 meant that the respondents agreed that Feedback system   on the administrative review outcome is satisfactory.
With respect to whether administrative review mechanism brings accountability and transparency to minimise procurement graft is satisfactory (50.8%) agreed, (16.4%) were neutral while (24.6%) disagreed. The mean = 3.41 which corresponded to agreed indicated that administrative review mechanism brings Accountability and Transparency to minimise procurement graft is satisfactory. 
Bidders are aware of the procedures of challenging the outcome of procurement process. (55.8%) agreed, (6.6%) were neutral with (32.8%) disagreeing. The mean = 3.29 meant that the respondents agreed that bidders are aware of the procedures of challenging the outcome of procurement process.
As to whether administrative reviews are costly both to the entity and the complainant (bidder) (52.5%) of the respondents agreed, (11.5%) were neutral and (29.5%) disagreed.  The mean = 3.38 indicated that administrative reviews are costly both to the entity and the complainant (bidder).
At BUMC firms that challenge the procurement decisions are blacklisted (62.3%) agreed, (11.5%) were neutral while (19.7%) disagreed. The mean = 4.48 indicated that at BUMC firms that challenge the procurement decisions are blacklisted.
A respondent noted that “.Administrative reviews are always handled according to the PPDA regulations. Administrative reviews are handled as soon as complaints are received and feed back is given to the complainant.”
Another BUMC Staff said “ there is no lot of information linkage to bidders by the staff “
Table 4. 10: Frequencies, Percentages and Means on Contract Performance
Items	Disagree	N	Agree	Mean	
There is value for money in BUMC 's procurement activities	11 (18.1%)	5 (8.2%)	40 (65.6%)	3.57	
The prices that BUMC has been paying for procurement items are within acceptable market rates	11 (18%)	5 (8.2%)	39 (63.9%)	3.76	
BUMC gets quality works in its procurement	10 (16.4%)	9 (14.8%)	39 (62.1%)	3.71	
 Most of the time, there is cost saving in BUMC 's procurements	9 (14.8%)	11.5%(7)	63.9%(39)	3.83	
BUMC  pays supplier on the agreed dates after delivery	15 (18.1%)	5 (8.2%)	41 (67.2%)	3.75	
BUMC implements its contracts within the planned  contract period	13 (19.7%)	5 (8.2%)	39 (64%)	3.71	
BUMC  always procures  works at the required time	17 (27.9%)	6 (9.8%)	32 (52.5%)	3.34	
       Source: Primary Data (2019)                                 N=61

With respect to whether there is value for money in BUMC’s procurement activities (65.6%) agreed, (8.2%) were neutral with (18.1%) disagreeing. The mean = 3.57 which corresponded to agreed indicated the majority of the respondents agreed that there is value for money in BUMC’s procurement activities.
The prices that BUMC has been paying for procurement items are within acceptable market rates (63.9%) agreed (8.2%) were neutral while (18%) disagreed. The mean = 3.76 that indicated that the prices that BUMC has been paying for procurement items are within acceptable market rates.
As to whether BUMC gets quality works in its procurement (62.1%) of the respondents agreed, (14.8%) were neutral and (16.4%) disagreed.  The mean = 3.71 indicated that BUMC gets quality works in its procurement. Most of the time, there is cost saving in BUMC’s procurements (63.9%) agreed (11.5%) were neutral while (14.8%) disagreed. The mean = 3.83 indicated that most of the time, there is cost saving in BUMC 's procurements. 
As to whether BUMC pays supplier on the agreed dates after delivery (18.1%) disagreed, (8.2%) were neutral with (67.2%) agreeing. The mean = 3.75 which corresponded to agreed indicated the majority of the respondents agreed that BUMC pays supplier on the agreed dates after delivery. 
BUMC implements its contracts within the planned contract period (19.7%) disagreed, (8.2%) were neutral while (64%) agreed. The mean = 3.71 meant that BUMC implements its contracts within the planned contract period. 
With respect to whether BUMC always procures works at the required time (59%) agreed, (8.2%) were neutral with (22.6%) disagreeing. The mean = 4.17 which corresponded to agreed indicated the majority of the respondents BUMC always procures works at the required time.
In relation to contract performance, a respondent noted that “ there is improved contract performance, there is no delayed feedback and there isn’t a lot of conflict of interest both political and technical.”

Figure 4. 1: Average Procurement Process Compliance Level for Local Governments in Uganda

Source: PPDA Annual compliance Report (2017)
As per the figure above, it is evident that there were low compliance levels in local governments in 2017. A low compliance with the law/ procurement process has direct impact on planning, and supplier selection and administrative review increase. 
4.3.6 The relationship between administrative and works contracts performance in BUMC
Hypothesis Three stated there is a significant relationship between administrative review and contract performance in Local Governments in Uganda. The hypothesis was tested using the Pearson correlation coefficient and the regression analysis and results of the hypothesis are given below.
Table 4. 11: Correlation Matrix for Administrative review and contract performance
Correlations	
	Administrative review	Contract performance	
Administrative review	Pearson Correlation	1	.262*	
	Sig. (2-tailed)		.000	
	N	61	61	
Contract performance	Pearson Correlation	.262*	1	
	Sig. (2-tailed)	.000		
	N	61	61	
*. Correlation is significant at the 0.05 level (2-tailed).	
Source: Primary Data (2019)                                                                 N =61
The result in Table 4.11 showed that the correlation coefficient is .262* and p value=0.000<0.05. Therefore according to the results there is a significant positive relationship between administrative review and contract performance in BMC. The relationship between administrative review and contract performance in BMC is statistically significant. An improvement on administrative review will lead to an improvement on contract performance.  This implies, the alternative hypothesis that was earlier stated in chapter one is upheld. The correlation coefficient is a numerical way to quantify the relationship between two variables, i.e the independent and dependent and it is indicated by the symbol R. The correlation coefficient is always between -1 and 1, thus -1 < R < 1. The hypothesis is rejected if the earlier hypothesis was alternate meaning the finally tested hypothesis is null and the vice versa. 
Table 4. 12: Multiple Regression Analysis for Procurement Process and Contracts Performance
	Summary Out put						
	Regression Statistics						
	R	.648					
	R Square	.419					
	Adjusted R Square	.409					
	Standard Error	.48939					
	ANOVA						
		Sum of square	Df	Mean Square	F	Sig	
1	Regression	3789.36	1	3789.36	41.455	0.007	
	Residual	7055.55	59	91.366			
	Total	10821.922	60				
Step	Variable	B	SE	Beta	T	Sig	
1	Constant	59.783	.342		11.048	0.00	
	Procurement process	.681	.093	.648	4.511	0.007	
    Source: Primary Data (2019)
Table 4.19 indicates the R value of .648 henceforth R denotes the correlation between predicted and observed contracts performance. Since this is a high correlation, our model predicts contracts performance in Uganda rather precisely. The coefficient of determination (R square of .419) indicates the proportion of variance in contracts performance in Uganda that can be “explained” by procurement process. The R square value of .419 indicates how much of the dependent variable, contracts performance can be explained by the independent variable procurement process. Therefore the r square value of .419 implied that procurement process predicts/explains the variance in contracts performance by 41.9%. The influence of procurement process on contracts performance is statistically significant. The moderate adjusted R square of 0.419 tells us that the model does a fair job in predicting the contracts performance in BMC
Analysis of Variance for Procurement process and contracts performance

The Error degree of freedom is the DF total minus the DF model, 60 - 1 =59. Mean Square are the Mean Squares, the Sum of Squares divided by their respective DF.  The value for this table had a total degrees of freedom of 119 because four observation had missing data and were not included in the analysis.  The F-statistic is the Mean Square (Regression) divided by the Mean Square (Residual) 3786.369/ 91.336=41.455.  The full model is statistically significant (F = 41.455, df = 119, 1, sig.= .007). F-Statistics is 41.455, given the strength of the correlation, the model is statistically significant (p < .05)
Coefficient for Procurement process and contracts performance
As per the SPSS generated in Table above 4.29, the equation (Y = β0 + β1X1 + β2X2 + β3X3 + β4X4+ ε) becomes: Y= 59.783 + .681. Overall, procurement process affect contracts performance (beta=.648).  The average class size (procurement process, b= .648 is significant, but only just so, and the coefficient is positive which would indicate that larger class sizes is related to contracts performance.  As a rule of thumb, we say that a b coefficient is statistically significant if its p-value is smaller than 0.05.  The b coefficients tell us how many units of contracts performance increases for a single unit increase in each predictor (procurement process). The beta coefficients allow us to compare the relative strengths of our predictors. The regression equation above has established that taking all factors into account (adoption of procurement process) constant at zero effective contracts performance will be 59.783. The findings presented also show that taking all other independent variables at zero, a unit increase in the scores of procurement process would lead to 0.681 increase. The effect of procurement process (beta=.648, p=0.007) is statistically significant and its coefficient is positive indicating that the greater the procurement process, the higher the contracts performance. The magnitudes of the respective betas suggest that the relationship between procurement process and contracts performance is statistically significant.  The t-test for procurement process equals 4.510 is statistically significant. 
Conclusion: This Chapter focused on presenting the findings, analysis and interpretation, the next chapter focuses on the summary of findings, discussion of the findings, conclusions, recommendations and areas for further research. The researcher now turns to chapter five to present the summary of findings, discussion of the findings, conclusions and recommendations.  

 
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

 5.1 Introduction
This chapter presents summary of findings, discussion, conclusions, recommendations and areas for further study based on the study objectives. 
5.2. Summary of Major Findings
The summary of the major findings is presented based on the study objectives as laid in chapter one of this report.
5.2.1: Procurement planning and Contract Performance
The results showed that the Pearson correlation coefficient was .399** at p value of 0.00<0.05. Therefore according to the results there is a significant positive relationship between procurement planning and contract performance in BMC. The relationship between procurement planning and contract performance in BMC is statistically significant. An improvement on procurement planning will lead to an improvement on contract performance.  This implies, the alternative hypothesis that was earlier stated in chapter one is upheld. 
5.2.2: Supplier selection and Contract Performance
Findings showed that the coefficient was .705** at p value of 0.000<0.05. Therefore according to the results there is a significant positive relationship between supplier selection and contract performance in BMC. The relationship between supplier selection and contract performance in BMC is statistically significant. An improvement on supplier selection will lead to an improvement on contract performance.  This implies, the alternative hypothesis that was earlier stated in chapter one is upheld. 
5.2.3:  Administrative reviews and Contract Performance
The result showed that the correlation coefficient is .262* at p value of 0.00<0.000. Therefore according to the results there is a significant positive relationship between administrative review and contract performance in BMC. The relationship between administrative review and contract performance in BMC is statistically significant. An improvement on administrative review will lead to an improvement on contract performance. This implies, the alternative hypothesis that was earlier stated in chapter one is upheld
5.3. Discussion of Findings
The findings are discussed on the basis of the study objectives as laid down in chapter one
5.3.1: Procurement Planning and Contract Performance
Findings revealed that there is a positive significant relationship between procurement planning and contract performance in BUMC. It was observed that the operating units in local governments in Uganda submit their budget proposals and performance plans that supports department and administration goals in May of each year. From May through August, department level staff review and evaluate requests and plans, then they provide decision makers with information required to make the budget and planning decisions. This period includes briefings to the board of Governors followed by the board’s decision. The findings are in line with Bailey (2005) who states that budgeting is a tool for ensuring proper procurement management and so should efficiently be done. It was also revealed that the procurement process is constrained by unavailability of adequate resources. The results are in agreement with the earlier found by (Errigde & Mcllroy, 2002) that public procurement professionals have to strive to achieve three competing demands of meeting commercial, regulatory and the social interests with their key terms respectively. Results are also comparable with the earlier found by Rotich (2011) that procurement plans serve as road maps and their main goal should be to enable efficient use of available resources.  Findings are also in agreement with the earlier findings by Mbalangu (2013) who indicate that plan should be part and parcel of the procurement process. Hinton (2003) makes it clear when he asserts that it is essential to develop a procurement plan to ensure that the contract is well managed and  monitored. He argued that a plan that depends on the complexity of the contract helps to guide both the client and contractor on their respective obligations. He noted that among the items to be included on the plan are identification of deliverables, milestones, due dates, a list of all contract modifications issued, summary of all invoices submitted and paid, and renewal dates. It should also detail the methods that the entity will use to monitor the contractor and the individuals or offices that will be responsible for the monitoring. Ochary (2016) concurs that in order to achieve laid down goals one has to draw a guiding work plan.
Procuring items which are not on the plan leads to emergency procurements and creates domestic arrears. PPDA instructed that the Procurement and Disposal Unit to ensure that all items are aggregated into the annual procurement plan of the entity in accordance with Regulation 62 Regulation 62 of the LG (PPDA) Regulations 2006. There were no cases where the entity used a procurement method without adequate justification contrary to Regulation 40 (3) of the LG (PPDA) Regulations 2006.
It was noted that one of the major setbacks in public procurement is poor procurement planning and management of the procurement process which include needs that are not well identified and estimated, unrealistic budgets and inadequacy of skills of procurement staff responsible for procurement. Failure to establish performance of the procurement function can lead to irregular and biased decisions that have costly consequences to any public procuring entity. This is in line with Hargie (2004) planning should be an on-going process through the contract life-cycle and, as such, it is important to identify all possible risks early and assess the likelihood of the risk occurring as well as the consequences that may follow.
5.3.2: Supplier Selection and Contract Performance
Findings revealed that there is a positive significant relationship between procurement planning and contract performance in BUMC. Supplier selection in BUMC is based on procedure, for example; the firms that are eventually awarded contracts by the contracts committee are in regard with the evaluation committee recommendations.  Section 29 (C) of the PPDA Act, 2003 gives the powers to award contracts in accordance with applicable procurement or disposal procedures, as the case may be to the Contracts Committee. Selecting a supplier is one of major decisions which influences the progress and success of any construction project (Banaitienė and Banaitis, 2006). Cheng and Li (2004) posits that existing literature on supplier selection mainly deals with how to identify and assess the criteria to make the most appropriate decisions.
Decisions of bid/no bid are a crucial issue in bid evaluation during selection. This is the process of deciding whether an organization should go for bidding or not to bid. It is quite obvious that each and every tender floated may not fit the organizations’ competency. Hence, before starting the actual work, it is necessary to know whether the tender is to be responded to or not. Supplier selection selection has become a priority for local governments. In a developing country like Uganda, having an effective contractor selection system is still a major challenge to many public entities. Supplier selection is one area that needs careful attention from all stakeholders in public entities because it has a huge influence on service delivery, and this is one way of accounting to the tax payers (Muhwezi, ibid). Muhwezi, 2013) contends that the Public Procurement and Disposal Authority (PPDA) noted that some contractors selected lack the appropriate experience and this is clearly seen from the works accomplished. 
 It was observed that at the procurement stage, some companies have also often been quoting lower bids; however after winning the contracts, the costs tend to rise.  A company can be suspended for delayed works or poor works. The nature and extent of supplier selection will vary between organizations (Muhwezi, 2012). It can be influenced by the nature and the type of relationship the agency has with the contractor both in the short and the long term. Contract selection resolves around selecting the right contractor (Muhwezi, ibid). The PPDA Act of 2003 recommends different procurement methods namely open competitive bidding method, restricted bidding method and direct award. The default method for procurement is open competitive bidding method. It is not clear as to how this and other methods would affect the performance.
Sabiti, Basheka and Muhumuza (2011) noted that proper supplier selection influences procurement performance. The nature and extent of selection will vary between organisations (Muhwezi, 2012:34). It can be influenced by the nature and the type of relationship the agency has with the contractor both in the short and the long term.  Muhwezi, (2012) noted that selection revolves around selecting the right supplier using appropriate procedures.  In line with this, the PPDA Act of 2003 specifies different procurement methods, namely; open competitive bidding, restricted bidding and direct award. The default method for procurement is open competitive bidding. 
It is important to note that the criteria which spells out how evaluation of bids is to be conducted is also a critical stage in the process of selecting a supplier from a number of bidding supplier that have submitted bids for a specified project (Nguyen, 2015). Procurement and bid evaluation methods are critical steps in supplier selection, which involves the use of different procurement and evaluation methods (Singh & Tiong, 2005). In the PPDA Act of 2003, the applicable bid evaluation methods for works are technical compliance selection and quality-cost based selection method. Evaluation of bids is done through a verification process that begins with categorizing of whether the candidates are suitable or not. After that, the contracting authorities can exclude bidders from the tender competition if they meet the exclusion criteria (Muhwezi, 2013). Measuring the suitability of the candidates is based on the financial situation of the bidder as well as their technical performance and professional qualifications. The contracting authorities must select the offer that presents the most economically advantageous solution or the selection can be made based on the lowest price (Oluka, 2013). Hatush and Skitmore (1998:2), ‘revealed that the choice of contractor should be made on a value for money basis rather than automatically accepting the lowest bid because the main objective is to identify the best tender not lowest bidder
5.3.3 Administrative reviews and Contract Performance 
It was noted that there are very few cases calling for administrative reviews in BUMC since guidelines are properly followed. In other related studies carried out in Uganda, Oluka and Basheka (2014) examined the determinants and constraints of effective contract management and its implications on service delivery. The study was motivated by persistently low compliance levels reported by the procurement authority as far as contract management is concerned. Whenever there is limited compliance with the law, cases of administrative reviews arise. In another study, Oluka (2013) made a theoretical examination of the challenges of procurement contract management and their implications on the delivery of public services. The review concludes that contract management success is strongly influenced by what happens at tendering and award phase. She noted that contract management should be a continuum planned from the start of the procurement process.
On the issue of administrative reviews, interventions by PPDA, it was observed that, although some of the procurements are halted by PPDA during investigations, some of the projects loose the funding due to delays since most happen towards the closer of the government financial year. As an oversight agency (PPDA) has been critical in ensuring PDEs award projects fairly. This is also confirmed by Rotich (2011) that projects sometimes are not awarded at the right cost which causes irregularities with the procurement process.
5.4 Conclusions
This study was designed to answer three research questions and this section will summarize the key findings of the study in relation to each research objective in order to formulate the recommendations of the study. Study conclusions were drawn basing on the different research objectives as shown below.
5.4.1 Procurement Planning and Contract Performance 
Procurement planning plays a key support role in the operations of BUMC. There is a well-defined processes and a clear procurement plan in BUMC, with a focus on outputs and a ‘whole life’ approach to performance.  It was established that BUMC faces minor challenges in procurement planning. The process must be well thought through action plans which are not static. With proper planning, BUMC is assured of efficient and effective service delivery. 
5.4.2: Supplier Selection and Contract Performance
From the foregoing findings however, evaluation process takes too long because evaluators concentrate on technical issues which ideally would be handles at negotiation with the selected contractor. The evaluation criteria should be adjusted such as site organization, method statement, mobilization schedule, construction schedule, quality assurance system, equipment, personnel, environmental and social management plans are handled at post qualification because these a bound to change at implementation.
5.4.3: Administrative reviews and Contract Performance 
Interventions in the procurement process mainly through administrative reviews and investigations are not common in BUMC. It was observed that the few administrative reviews were on failure by the entities to properly interpret what is a minor omission or material deviations in the bids during evaluation.
5.5 Recommendations
The researcher recommended that; 
5.5.1 Procurement planning and contract Performance
There is need to introduce best value planning, best value planning is a method of awarding construction contracts in which bidders compete on the basis of technical and managerial merit, past safety and performance records, qualification of craftsmen, technical innovation, financial health, or other factors, in addition to price .
5.5.2 Supplier selection and contract Performance
The bid evaluation process should be purely executed on merit if it is to yield fruits. There is need to ensure proper bid evaluation so as to eliminate bidders who bid claiming to poses experience, equipment and qualifications which they don’t actually possess. The costs of the services delivered and contract management costs should be mapped against budgets and allocated appropriately. The contract manager should take action where necessary to avoid the organization being ‘locked in’ to onerous commercial terms throughout the contract period, such as price escalation or ‘compulsory’ maintenance payments. 
5.5.3: Administrative reviews and Contract Performance
Management of the procurement process should be administered by qualified, competent and experienced procurement professionals. This will help to choose the best bidders henceforth avoiding administrative reviews. This will not only help maintain good procurement standards but also will help achieve high levels of efficiency and effectiveness. In addition, to avoid delays in supply and provision of services, timelines have to be respected. Payment processes should be well defined and efficient; appropriate checks and authorization processes should be put in place for paying invoices. 
5.6 Limitation of the Study
Some Limitation might be related to collecting and interpreting our results. The study used a small sample and so it was not easy to generalize results. Adopting a mixed methodological approach required a lot of skills and reading about the two approaches which was not easy. A second limitation might be the omission of certain variables in the study on procurement process. Another potential limitation in the study was common method bias and the time frame in which data was collected. The data constituted a snapshot of one point on the implementation continuum. The participants’ responses were based only on the questions that the researcher asked but there could have been more information through observation hence sometimes misleading information could have been given during interviews. 
The study used a small sample and so it was not easy to generalize results. Adopting a mixed methodological approach required a lot of skills and reading about the two approaches which was not easy. For the key informants, given their busy schedules, some interviews were rescheduled to fit their timetables, but these also sometimes failed. The research took slightly long to conduct particular interviews which delayed the study. There was also a problem of absenteeism by some of the respondents at the designated place of carrying out the interviews. Therefore collecting data from them through interviews proved to be a big challenge. The researcher used one single questionnaire to measure all constructs included, so perhaps, the strength of the relationships could have been altered since the findings point to the important contribution of values which relate to individuals and groups. The confidence in the results could be strengthened with access to behavioral findings. The use of findings from the questionnaire which was close ended also could have missed important information which could have been obtained through interviews and other qualitative methodologies. These recognised limitations could inspire researchers to define their future research agendas. The researcher employed feedback mechanism to prevent personal bias and affirmed such ideas from the respondents. 
The researcher managed these problems by making use of the supportive team leader who in one instance was willing to introduce the researcher in person to the respondents through sensitization of respondents on the importance and significance of the study. The Uganda Management Institute letter helped to allay any fears and doubts among some respondents. Efforts were made to maintain confidentiality of the responses. The absenteeism of some officials was tackled by frequent visits to the offices of respondents and this was easy since the respondent is part of BUMC, and above all he established good rapport. 
5.7 Areas for further research
The research was carried out in a public entity, there is need to carry out a similar research in a private entity. There is need to investigate the factors that affect procurement performance in other local governments in Uganda. Equally, further research should be carried out in other entities to ascertain whether these findings are universal and research on procurement performance measurement should be carried out as this was not the objective of this study.. 

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APPENDICES
Appendix1: Questionnaire for BUMC Staff
Dear Respondent,
Please kindly spare some few minutes to respond to the following questions. Information received from you is for academic purposes and will be kept confidential. You will not be victimized for whatever answer you have given and to ensure this, you are not required to identify yourself anywhere on the questionnaire.

Section A: Background Characteristics
Section A: Background
1. Gender:     Male         Female (Please tick)
2. Education level (indicate highest)       Certificate      Diploma      Bachelors     Masters
        Other (specify) 
3. Length time you have been a service provider with BUMC:    (Less than 1 year)
   (l -2 years)       (3 -5 years)      (5 -10 years)       (Above l0 years)
4. Age    (20-29)     (30 -39)    (40 -49)       (50 Above)

5. Which position do you hold in BUMC?
Post held	Tick appropriately.	
Deputy Town clerk		
Procurement officer		
Engineer		
Senior Accountant		
Human resource officer		
Secretary for finance		
Secretary for works		

Section B: Procurement Planning at BUMC
Using the following scale to tick your appropriate response in respect to the questionnaire
1 = Strongly Disagree 	2 =Disagree 	3 =Not sure 	4= Agree 5 = Strongly Agree     
Items 	SA	A	NS	D	SD	
1. The procurement needs  are well defined 						
2. procurement needs are consolidated as per departmental needs						
3. Procurement needs are well aligned with BUMCs procurement plan 						
4.Users are usually involved in procurement needs assesement						
7.	5.Procurement needs are properly integrated into the procurement plan						
8.	6.Procurement plans are linked to procurement activities						
7.The process of determining procurement needs is satisfactory						
8. The funding of procurement needs is satisfactory						
                                                                                                                                                                                                                                                                                                                                                                                                                                          
Section C: Supplier selection at BUMC
Using the following scale to tick your appropriate response in respect to BUMC
1 = Strongly Disagree 	2 =Disagree 		3 = Not sure 		4 = Agree
5 = Strongly Agree
Items about statement of requirements	SA	A	U	D	SD	
1. BUMC's specifications ,Bill of quantises  and terms of reference for its procurement describe the best requirements	1	2	3	4	5	
2. At BUMC, procurement staff, adhere to all specifications for its procurement.	1	2	3	4	5	
3. BUMC 's specifications for its procurement identify quality operational characteristics	1	2	3	4	5	
4. BUMC  Project supervisors always inspect  and verify that works conform to statement of requirements  for  a given procurement	1	2	3	4	5	
5. BUMC sets evaluation criteria and makes it known to providers	1	2	3	4	5	
6. BUMC strictly adheres to the evaluation criteria	1	2	3	4	5	
8. BUMC undertakes due diligence for its providers.	1	2	3	4	5	

Section D: Administrative review at BUMC
Using the following scale to tick your appropriate response in respect to BUMC
1= Strongly Disagree 		2 = Disagree 		3 = Not sure 		4 = Agree
5 = Strongly Agree
administrative review process 	SA	A	NS	D	SD	
1. The administrative review is part of the procurement system in Public procurement. 						
2. Administrative review are always handled by the Accounting officers immediately on receipt of complaint.						
3. Administrative  review  mechanism are well understood by bidders						
4. Administrative reviews help unsuccessful bidder get the right procurement decision.						
5.  PPDA recommendations on Administrative review process are  properly implemented						
6. Feedback system   on the administrative review outcome is satisfactory 						
7. Administrative review mechanism brings Accountability and Transparency to minimise procurement graft is satisfactory.						
9. Bidder are aware of  the procedures of challenging the outcome of procurement process.						
10.Administrative reviews are costly both to the entity and the complainant (bidder)						
11. At BUMC firms that challenge the procurement decisions are blacklisted.						

Section E: Contract performance
How strongly do you agree or disagree with the following statements about contract performance in BUMC? Tick or circle the most appropriate response using the following scale. Please do not omit any feature.

SD = Strongly Disagree  	D = Disagree 		NS = Not sure  	A = Agree
SA = strongly agree
Contract performance	SD	D	NS	A	SA	
1. There is value for money in BUMC 's procurement activities						
2. The prices that BUMC has been paying for procurement items are within acceptable market rates						
3. BUMC gets quality works in its procurement						
           4. Most of the time, there is cost saving in BUMC 's procurements						
5. BUMC  pays supplier on the agreed dates after delivery						
6. BUMC implements its contracts within the planned  contract period						
7. BUMC  always procures  works at the required time						

Thank you for cooperation

Appendix 2: Interview Guide for BUMC management

1.	Are you satisfied with the administrative review process at BUMC? Please explain your response.
2. Are procurement goals well defined at BUMC? Please briefly explain
3. How has administrative review affected contract performance at BUMC?
4. Are you satisfied with the conduct of public officials at BUMC? Please explain your response.
5. Are you happy with way of handling bidder’s confidential information at BUMC? Please briefly explain your answer. 
6. Are you happy with methods of provider’s selection at BUMC?
Please elaborate.
7. How has supplier selection affected contract performance at BUMC?
8. Are you satisfied with the procurement process at BUMC? Please explain your answer   .
9. Are you happy with procurement feedback at BUMC? Please explain your response.
10 Are you happy with procurement evaluation at BUMC? Please explain your response.

Thank you for your cooperation

Appendix 3: Krejcie and Morgan Table for Determining Sample Size from a Given
Population

Note: "N" is population size
"S" is ample size.

Appendix 4: Introductory Letter

Appendix 5: Anti-Plagiarism Report