CHAPTER ONE
1.1 INTRODUCTION.
This chapter covers several concepts that include the meaning of procurement, the meaning of public procurement as well as background of the problem. The chapter also covers among other things; the statement of the problem, research questions and objective of the study.Morover, the chapter also deals with scope of the study, research hypothesis, significance of the study, limitations of the study as well as definitions of key terms.
1.2 BACKGROUND OF THE PROBLEM.
Procurement is the function that deals with acquisition or buying of organizations requirements which may be goods or services. Specifically what may be procured includes goods, works, consultancy services and non-consultancy services.
It is of extreme importance that goods, services or works procured are of the right quality, quantity, price, from the right supplier and delivered at the right time so as to ensure efficiency in procurement in terms of value for money and proper usage of resources which are publicly owned for the case of public procurement.
Generally, public procurement accounts for 18.42% of the world’s G.D.P (Mahmood, 2010) where as public procurement accounts for 60% spending of the national budget per year in Kenya(Akech, 2005), 70% of Uganda’s public procurement (Basheka et al, 2010) and 70% of public expenditure in Tanzania. This is comparably very high with reference to a global average of 12%-20 %( Froystat et al 2010). This depicts that public procurement is being increasingly recognized as a vital function in developing countries and it constitutes a higher portion of the total expenditure. Procurement process is guided by specific principles, rules, procedures and policies governing how procurement decisions are made and implemented.
Public procurement evolved starting from
References: 1. Akech J.M. (2005). Development partners and government of public procurement in Kenya, International law and politics. 2. Public Procurement Act 2011. 3. Basheka B.C. (2010). Determinants of unethical procurement in local government systems. 4. Mahmood .S. (2010). Public procurement and corruption in Bangladesh. Journal 5. Mlinga R.S.M. (2008). Tanzania Procurement Journal Vol 1 No. 7 of 2008 and Vol 1 No 3 of 31st March, 2008, ISSN 1821- 6021 Public Procurement Regulatory Authority, Tanzania.