Electronic Procurement (E-Procurement) System and Compliance in Public Sector Procurement: A study of the Ministry of Defence and Veterran Affairs,Uganda

Abstract

The contribution of e-procurement systems to compliance in public sector procurement in MODVA was studied based on three objectives that included determining the contribution of catalogue management in an e-procurement system to compliance in public procurement; establishing how supplier connectivity in an e-procurement system contributes to compliance in public procurement; and determining how automatic workflows in an e-procurement system contribute to compliance in public procurement in MODVA, Uganda.

This study was guided by transaction cost economic theory that comprehensively captures the key constructs of this study variables. The literature about e-procurement system and compliance in public procurement was reviewed. The correlational research design with triangulation of research methods was used. The study population of 55 respondents was purposely selected from which 51 were determined for study. Data was collected using questionnaire and interview guide. The response rate of 100% was obtained. The study findings revealed a significant positive contribution to compliance in public procurement at MODVA, summarily indicated thus catalogue management (r = 0.686**, p<0.050, 0.019); supplier connectivity (r = 0.776**, p<0.050, 0.024) and automatic workflows (r = 0.809**, p<0.050, 0.004). Despite MODVA managing classified procurements, compliance in regulatory frameworks is a must with no exception, where all activities and those involved in the public procurement must adhere to.

The study findings helped draw recommendations for sourcing, investment, adoption, implementation, monitoring, quality assurance and strengthening of e-procurement systems on one hand and on the other engagement with all stakeholders where capacities must be built at all levels (individual, Entity and Society) if they are to support sustained compliance in public sector procurement in MODVA in particular and Public Sector Entities in Uganda, in general. The study also identified a number of opportunities for further research as detailed in the report.