Examining the effectiveness of procurement contract management in public entities: a case of the Ministry of Trade, Industry and Cooperatives

Abstract

The study examined tthe effectiveness of procurement contract management at the MOTIC premised on three objectives; to establish procurement contract management practices at MOTIC, to establish the factors affecting procurement contract management at MOTIC and to suggest possible strategies to improve procurement contract management at MOTIC. The study employed both quantitative and qualitative approaches. An interview guide and questionnaires were the main tools used in data collection, which combined qualitative and quantitative techniques, respectively. In this study, the population was comprised of staff and department heads at the MOTIC. The procurement contract management practices at MOTIC revealed a blend of strengths and weaknesses, particularly in communication and monitoring, which scored positively with a mean of 4.5 (SD = 0.645) and 3.63 (SD = 0.521). However, concerns about contract clarity, which scored a mean of 2.85 (SD = 0.930), and the competence of contract managers, with a low score of 2.12 (SD = 0.910), suggest that these foundational elements need significant attention. The analysis also highlights critical factors affecting procurement management, notably the importance of clear contract terms, which received a high mean of 4.31 (SD = 0.751) and positively influence effectiveness, while compliance with legal requirements scored poorly at 2.51 (SD = 0.815), indicating room for improvement. Timely communication shows a low score of 2.31 (SD = 0.721), despite strong support from Top management, which was rated positively with a mean of 4.83 (SD = 0.452). In terms of strategies for improvement, effective contract management planning stands out with a high mean of 4.92 (SD = 0.267), alongside leveraging technology and automation, which scored 4.11 (SD = 0.919). Outsourcing for complex contracts received a high rating of 4.23 (SD = 0.917), although accountability for contract managers is notably weak, with a low score of 2.02 (SD = 0.923). The findings emphasize the need for better planning, clearer guidelines, and enhanced technological integration to strengthen overall procurement practices at MOTIC. The study recommends key initiatives to enhance procurement contract management at MOTIC. It suggests developing comprehensive guidelines to standardize contract templates for clarity in deliverables, timelines, and performance standards, along with conducting workshops to improve staff understanding of clear contract language. Regular training programs focused on procurement best practices, negotiation skills, and contract law are essential for bolstering the competence of contract managers.