Procurement Planning and Value for Money Among Selected Districts in Rwanda

ABSTRACT This study investigated the effect of procurement planning on value for money Among Selected Districts in Southern Province, Rwanda. The study was limited to the following objectives: i) to determine the effect of procurement packaging on value for money Among Selected Districts in Southern Province, Rwanda ii) to establish the effect of procurement method on value for money Among Selected Districts in Southern Province, Rwanda and iii) to find out the effect of procurement scheduling on value for money Among Selected Districts in Southern Province, Rwanda .The study used descriptive survey design. The target population was 191 procurement officers. The sample size of 129 respondents was determined using Slovene’s formula. The main research instrument was questionnaires. The retrieval rate of the questionnaire was 94% (121). Data analysis was done using frequency and percentage tables, mean and standard deviations, and linear regression analysis. The study revealed that procurement packaging significantly affects the value for money. Furthermore, the study revealed that procurement method significantly affects value for money. Similarly, the study revealed that procurement scheduling significantly affect value for money. The study concluded procurement planning affects value for money. The study made the following recommendations: the need for procurement officers to use good procurement packaging where they allow bidders to submit bids for one or multiple lots; the need for procurement officers to embrace all procurement methods depending on the circumstance and the nature of the project so as to be as comprehensive as possible since each procurement method has its own advantage; the need for procurement officers to involve stakeholders and superiors in project scheduling so as to streamline any inconsistency. The contribution to knowledge of the current study is that procurement packaging, procurement method and procurement scheduling affect value for money significantly, though other scholars found mixed results in the same.

 TABLE OF CONTENTS

DECLARATION.................................................................................................................................i

APPROVAL......................................................................................................................................ii

DEDICATION.................................................................................................................................. iii

ACKNOWLEDGEMENTS................................................................................................................iv

LISTS OF ABBREVIATIONS AND ACRONYMS.............................................................................v

LIST OF TABLES .............................................................................................................................x

ABSTRACT.....................................................................................................................................xi

CHAPTER ONE...............................................................................................................................1

INTRODUCTION ............................................................................................................................1

1.0 Introduction..................................................................................................................................1

1.1 Background of the Study ...............................................................................................................1

1.1.1 Historical Perspective .................................................................................................................1

1.1.2 Theoretical Perspective...............................................................................................................3

1.1.3 Conceptual Perspective...............................................................................................................4

1.1.4 Contextual Perspective ...............................................................................................................5

1.2 Statement of the Problem...............................................................................................................5

1.3 Purpose of the Study .....................................................................................................................6

1.4 Objectives of the Study..................................................................................................................6

1.5 Research Questions.......................................................................................................................7

1.6 Hypothesis....................................................................................................................................7

1.7 Scope of the Study ........................................................................................................................7

1.7.1 Geographical Scope....................................................................................................................7

1.7.2 Content Scope............................................................................................................................7

1.7.3 Time Scope................................................................................................................................8

1.8 Significance of the Study...............................................................................................................8

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1.9 Operational Definitions of Key Terms............................................................................................8

CHAPTER TWO............................................................................................................................10

LITERATURE REVIEW...............................................................................................................10

2.0 Introduction................................................................................................................................10

2.1 Theoretical Review .....................................................................................................................10

2.1.1 Principal-Agent Theory ............................................................................................................10

2.1.2 Contract Theory.......................................................................................................................11

2.2 Conceptual Review .....................................................................................................................13

2.3 Related Literature Review ...........................................................................................................13

2.3.1 Procurement Planning...............................................................................................................13

2.3.1.1 The Effect of Procurement Packaging on Value for Money ......................................................15

2.3.1.2 The Effect of Procurement Method on Value for Money ..........................................................17

2.3.1.3 The Effect of Procurement Scheduling on Value for Money .....................................................24

2.3.2 Value for Money......................................................................................................................26

2.3.2.1 Prices....................................................................................................................................28

2.3.2.2 Efficiency .............................................................................................................................29

2.3.2.3 Effectiveness.........................................................................................................................30

2.3 Related Studies ...........................................................................................................................31

2.4 Gaps of the Study........................................................................................................................32

CHAPTER THREE........................................................................................................................33

METHODOLOGY .........................................................................................................................33

3.0 Introduction................................................................................................................................33

3.1 Research Design .........................................................................................................................33

3.2 Target Population........................................................................................................................33

3.3 Sample Size ................................................................................................................................33

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3.4 Sampling Technique....................................................................................................................34

3.5 Data Sources...............................................................................................................................35

3.6 Data Collection Methods .............................................................................................................35

3.7 Data Collection Tools/Instruments ...............................................................................................35

3.8 Validity and Reliability ...............................................................................................................36

3.8.1 Validity ...................................................................................................................................36

3.8.2 Reliability................................................................................................................................38

3.9 Data Gathering Procedure............................................................................................................39

3.10 Data Analysis............................................................................................................................39

3.11 Ethical Considerations...............................................................................................................41

3.12 Limitations of the Study.............................................................................................................41

CHAPTER FOUR ..........................................................................................................................42

DATA PRESENTATION, ANALYSIS AND INTERPRETATION................................................42

4.0 Introduction................................................................................................................................42

4.1 Response Rate ............................................................................................................................42

4.2 Demographic Characteristics of the Respondents ..........................................................................42

4.3 Descriptive Statistics...................................................................................................................44

4.3.1 Value for Money......................................................................................................................45

4.3.2 Procurement Planning...............................................................................................................48

4.3.3 Procurement Method ................................................................................................................49

4.3.4 Procurement Scheduling ...........................................................................................................50

4.5 Regression Analysis....................................................................................................................51

4.5.1 The Effect of Procurement Packaging on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................51

4.5.2 The Effect of Procurement Method on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................53

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4.5.3 The Effect of Procurement Scheduling on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................54

CHAPTER FIVE............................................................................................................................56

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS...................................................56

5.0 Introduction................................................................................................................................56

5.1 Discussion of the Findings...........................................................................................................56

5.1.1 The Effect of Procurement Packaging on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................56

5.1.2 The Effect of Procurement Method on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................58

5.1.3 The Effect of Procurement Scheduling on Value for Money Among Selected Districts in Southern 

Province, Rwanda.............................................................................................................................59

5.2 Conclusion .................................................................................................................................61

5.3 Recommendations.......................................................................................................................62

5.4 Contribution to New Knowledge ..................................................................................................63

5.5 Areas for Further Studies.............................................................................................................63

REFERENCES...............................................................................................................................64

APPENDIX I: TRANSMITTAL LETTER.........................................................................................72

APPENDIC II: INFORMED CONSENT ...........................................................................................73

APPENDIX III: QUESTIONNAIRES ...............................................................................................74