Contract management and procurement performance in public sector in Uganda, case study of the Microfinance Support Centre Limited (MSC)

Abstract

This study titled, "Contract Management and Procurement Performance in public sector; a case of the Microfinance Support Center Limited was carried out in the Microfinance Supp01t Center Limited, P.O Box 33711 Kampala, Uganda, East Africa. The study was prompted by increasing poor contract management practices in public organizations characterized by implementation of substandard works, delivering mal-functional goods, delayed payments, delayed implementation of contracts, lack of monitoring reports among others. The main objective of the study was to examine how procurement performance can be improved through effective contract management in public sector entities in Uganda. The researcher looked at roles undertaken by different stake holders in contract management, contract management challenges, and the strategic interventions that can be undertaken to improve procurement performance through effective contract management at the Microfinance Support Center Limited. A cross-sectional research design was employed with both quantitative and qualitative methods. A questionnaire was used to collect all quantitative data while interviews were conducted to collect qualitative data for purposes of this study. The findings of the study revealed that there is a significant positive relationship between effective contract management and procurement performance in public sector. The findings further revealed that public organizations can improve procurement performance through carefully implementing contract management activities as stated in procurement contract. Based on the findings of this study and the subsequent conclusions reached, the study was able to come up with recommendations: To overcome the challenges it is essential to pay service providers on time stated in the procurement contract, drop service provider that fail their contractual obligations, it is also important to appreciate procurement contract review as an ongoing process and consider changes in environmental variables such as inflation that need to be properly handed so that they do not fail contract execution. Public organizations should properly follow PPDA guidelines; appoint a contract manager where required by law, monitor progress of contracts and submit reports to PDU, inspect quality of products, among others.