ADDIS ABABA UNIVERSITY

COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES

DEPARTMENT OF EDUCATIONAL PLANNING AND

MANAGEMENT

RESEARCH ON

Assessment of Procurement System Management in Selected

Governmental Colleges of Addis Ababa City Administration.

BY
ELIAS ABRAHAM

June 2017

Addis Ababa

Ethiopia
 ADDIS ABABA UNIVERSITY

COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES

DEPARTMENT OF EDUCATIONAL PLANNING AND

MANAGEMENT

A thesis submitted to the College of Education and

Behavioral studies in partial fulfillment of the requirements
for the Degree of Masters in Human Resource and
Organizational Development

By

Elias Abraham

Addis Ababa University

 ADDIS ABABA UNIVERSITY

COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES

DEPARTMENT OF EDUCATIONAL PLANNING AND

MANAGEMENT

RESEARCH ON

Assessment of Procurement System Management in Selected

Governmental Colleges of Addis Ababa City Administration.

BY
ELIAS ABRAHAM

June 2017

Addis Ababa

Ethiopia
 ADDIS ABABA UNIVERSITY
COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES
DEPARTMENT OF EDUCATIONAL PLANNING AND
MANAGEMENT

Assessment of Procurement System Management in Selected

Governmental Colleges of Addis Ababa City Administration.

BY
ELIAS ABRAHAM

Approved by Board of Examiners

Chairman, Department Signature Date

Jeilu Oumer (Ph.D)
Advisor Signature Date

Examiner Signature Date

External Examiner Signature Date

June 2017

Addis Ababa

Ethiopia
 Table of Contents
ACKNOWLEDGMENTS ............................................................................................................................ II
D E C L A R A T I O N ............................................................................................................................... III
List of Abbreviations and Acronyms ........................................................................................................... IV
ABSTRACT.................................................................................................................................................. V
 ACKNOWLEDGMENTS

A number of individuals have contributed to the accomplishment of this study from the
binging to the ending. I am deeply thankful to my advisor Dr. Jeilu Oumer without his
support and advise this thesis would not be possible to be accomplishing like these. I would
like to thank him for his guidance, encouragement, priceless comments and above all for his
dedication to give professional support to me despite of his work load as Academic Vice
President.

I would like to thank w/ro Zewdnesh W/yes, Ato Girma Geda Ato Alemnew Getnet,
Wro Birhane Debebe, Ato Sindew Bekele W/rit Lemlem Kasu and Ato Lemelem G/Michael
for their genuine support to distribute the questionnaires in the Colleges and bureau.

I am grateful to academic and administrative leaders of each colleges and bureau of finance
and economic development who gave me their precious time for an interview and all
participants who filled willingly the questionnaires.

II
 DECLARATION

I, Elias Abraham, declare that this work entitled “Effectiveness of Procurement System
Management in Selected Governmental Colleges of Addis Ababa City Administration” is an
outcome of my own efforts and study and that all sources of materials used for the study have
been duly acknowledged. I have produced it independently except for the guidance and
suggestion of the Research Advisor.

This study has not been submitted for any degree in this University or any other University.
It is offered for the partial fulfillment of the requirements for the award of Degree of Masters
in in Human Resource and Organizational Development.

By: Elias Abraham

Signature

Date

Advisor Jeilu Oumer (Ph.D)

Signature

Date

III
 List of Abbreviations and Acronyms
BPR Business Process Reengineering
COMESA Common Market for Eastern and Southern Africa
CRB Complaints Review Board
ETB Ethiopian Birr
FDRE Federal Democratic Republic of Ethiopia
FEAC Federal Ethics and Anti-Corruption Commission
FG Federal Government
FGE Federal Government of Ethiopia
GOFAMM Government Owned Fixed Assets Management Manual
GTP Growth and Transformation Plan
GTP Growth and Transformation Plan
MOFED Ministry of Finance and Economic Development
PPA Public Procurement Agency
SBD Standard Bidding Documents
PPA Public Procurement and Property Administration Authority
SBD Standard Bidding Document
TOR Terms of Reference
UN United Nations
UNDP United Nations Development Program
USD United Stated Dollar
WB World Bank

IV
 ABSTRACT

Procurement is a means by which an organization acquire good and services in a

scientific manner. More than two third of the organization annual budget is spend
through procurement. Every activity of the organization, either service or goods provider, is
highly attached with the procured product. Thus, failure of the procurement unit has a direct
impact on the failure of all other department. This study focused on the evaluation of
procurement process in Selected Governmental Colleges of Addis Ababa City Administration.
The purpose of the study was to assess the procurement system of Selected Governmental
Colleges of Addis Ababa City Administration, the satisfaction of the user departments, the
challenges faced by the procurement department and the adverse effect of the perception
towards the departments of each college. For the accomplishment of this, the study was
employed through descriptive designee in whom the selection of respondents is carried out by
using purposive sampling technique. 72 employees and deans and higher officers are
considered as a sample unit. Furthermore, exclusive interview has made with the procurement
support team leaders and the procurement officer, Addis Ababa city administration finance
and economic development employees and higher officers and Addis Ababa city
administration procurement and property disposal agency officers. Both primary and
secondary data are used. The major finding indicates that, the performance of the
procurement departments of each college is found in unsatisfactory level and the departments
don’t support the colleges to achieve their goal and mission. The departments work flow is
too long and bureaucratic nature which is not flexible for new idea. Even though trailing to
avoid rent seeker is admirable, most of the time the adverse effect has forgotten. The
department is not fully authorized to make decision in every procurement step and method.
Besides, the qualification of the staff and training held is not well enough to fill the
gap. The preparation of specifications, evaluation conditions and contract management is too
poor, though they are highly important.

V
 Table of Contents
Chapter One ............................................................................................................................... 1
1. Introduction........................................................................................................................ 1
1.1. Background of the Study ......................................................................................... 1
1.2. Statement of the Problem ........................................................................................ 2
1.2.1. Basic Questions.................................................................................................. 3

1.3. Objective of the Study ............................................................................................. 4

1.3.1. General Objective .............................................................................................. 4

1.3.2. Specific Objectives ............................................................................................ 4

1.4. Significance of the Study ......................................................................................... 5

1.5. Scope of the Study .................................................................................................... 5
1.6. Limitations of the Study .......................................................................................... 6
1.7. Definition of Terms .................................................................................................. 6
1.8. Organization of the Study ....................................................................................... 8
Chapter two .............................................................................................................................. 10
2. Review of related literature.............................................................................................. 10
2.1. Introduction ............................................................................................................ 10
2.2. Procurement Management .................................................................................... 10
2.3. Major tasks of procurement management........................................................... 11
2.3.1. Procurement process ........................................................................................ 12

2.4. Ethics in Procurement Management .................................................................... 15

2.5. Principles for public procurement ....................................................................... 16
2.5.1. The principle of non-discrimination. ............................................................... 16

2.5.2. The principle of equal treatment. ..................................................................... 17

2.5.3. The principle of transparency. ......................................................................... 17

2.5.4. The principle of proportionality. ...................................................................... 18

2.5.5. The principle of mutual recognition................................................................. 18

 2.6. Stakeholders of Public Procurement .................................................................... 19
2.6.1. Beneficiaries of Public Procurement................................................................ 20

2.6.2. Procurement Legal Framework ........................................................................ 20

2.7. Public Procurement in Ethiopia ........................................................................... 23

2.8. Professionalism in public procurement................................................................ 24
2.9. Strategic aspects of purchasing............................................................................. 25
2.10. Public procurement methods in Ethiopia ............................................................ 27
2.11. Procurement Audit System ................................................................................... 27
2.12. Procurement Plan .................................................................................................. 28
2.13. Procurement methods ............................................................................................ 31
2.13.1. Types of bid ..................................................................................................... 31

2.13.2. Single versus Multiple Sources ........................................................................ 35

2.14. Make or Buy decisions ........................................................................................... 35

2.15. Classification of purchasing goods ....................................................................... 36
2.16. E-procurement on public corruption ................................................................... 37
CHAPTER THREE ................................................................................................................. 41
3.1. Data Sources ........................................................................................................... 42
3.1.1. Primary Data Source ........................................................................................ 42

3.1.2. Secondary Data Sources .................................................................................. 42

3.2. Data collection Tools .............................................................................................. 43

3.3. Sampling size, selection and procedure................................................................ 43
3.4. Data Analysis .......................................................................................................... 43
CHAPTER FOUR.................................................................................................................... 44
4. PRESENTATION AND ANALYSIS OF THE DATA ....................................... 44
4.1. Characteristic of the Respondents ........................................................................ 44
4.2. Procurement Training ........................................................................................... 48
4.3. Procurement Method ............................................................................................. 49
4.3.1. Priority given to each procurement method ..................................................... 52

4.3.2. Challenges to select procurement method. ...................................................... 55

 4.4. Using of standard bid document and other sheets .............................................. 57
4.5. Bid evaluation criteria ........................................................................................... 57
4.6. Purchasing Performance Measurement............................................................... 58
4.7. Contract Management ........................................................................................... 63
4.8. Professionalism and Procurement ........................................................................ 65
4.9. The Procurement Work Flow ............................................................................... 66
4.10. Ethics in Public Procurement ............................................................................... 69
4.11. The knowledge of User departments about Public Procurement ...................... 70
4.12. Procurement Reporting ......................................................................................... 72
CHAPTER FIVE ..................................................................................................................... 73
5. CONCLUSIONS AND RECOMMENDATIONS .......................................................... 73
5.1. Introduction ............................................................................................................ 73
5.2. Summary................................................................................................................. 73
5.3. Conclusions ............................................................................................................. 75
5.4. Recommendations .................................................................................................. 77
References ........................................................................................................................... 79
 LIST OF TA BLES

Page
Table 2.1: Types of E-procurement system...………………………………………………….39

Table 4.1 Response Rate of Participants……………………………………………………….45

Table 4.2 Characteristics of Participants……………………………………………...…....….47

Table 4.3 Percentage of procurement training taken by the managers and experts………..….48

Table 4.4 amount of purchase for the last nine months from July 2008 E.C to March 2009 E.C……50

Table 4.5 priority given for each procurement method…………..……………………………52

Table 4.6 priority given for each procurement method..…………………………......…….....57

Table 4.7 performance of the procurement department in terms of purchasing with the 5R‟s..59

Table 4.8 Foremost challenges by the procurement department…………..………………......63

Table 4.9 the purchasing contract management performance…...……………………...……..64

Table 4.10 the purchasing flow and time tacking………...……………………………………67

Table 4.11 Knowledge about the procurement directives………………………...…………...70

Table 4.12 Knowledge about the procurement directives…...…………………...……………71

 Chapter One

1. Introduction
1.1. Background of the Study

In Addis Ababa City Administration 800-900 million birr budget is allocated for
purchasing for governmental colleges of the city administration every year, which is
more than 60% of the total budget allocates for each Institute. Technical and Vocational
Education and Training Agency (TVETA) is a regional government of Addis Ababa
City regulatory body. Governmental college‟s budget ware allocated and approved by
Finance and Economic Development Bureau of the City. The colleges are responsible
to implement the purchases according to the City Administration government
purchasing Proclamation, regulations and manual.

Bulk amount of budget dispersed for procurement of goods, services and construction
needs careful procurement performance management. The procurement process
contains several steps; which differ from type to type of purchase. The purchase process
starts from need assessment or purchase requisite from users (academic or
administrative staff) or property management section, the property management section
collects and summarizes the purchase requisite.

Nowadays the City Administration of Addis Ababa has given high attention to the
public procurement sector in terms of improving timely supplying of goods, services
and works obtaining the right quality, quantity, source, and cost and at the right time.
There are various categories of items purchased in each college having different levels
of importance and budget utilization. Mostly the items which are purchased by each
institute are educational materials, Industrial machineries, machinery supplies and
stationeries & office supplies, computers and accessories, teaching aids staff uniform,
sanitary supplies, books, maintenance services, and other operating expenses. The
largest portion of the budget is allocated for capital equipment‟s, constructing shop
buildings machine installation and infrastructure facilitation.

Therefore, due to these and other obstacles, City Administration of Addis Ababa has
decided to establish the Public Procurement and Property Disposal agency.

According to the information from the 2008 E.C annual report of the Bureau of Finance
and Economic Development BoFED of the city administration of Addis Ababa
established an Agency; which called Public Procurement and Property disposal Agency
by proclamation no 55/2005. The Agency has also taken duties and responsibilities
from the council of the city. The major duties and responsibilities of the agency are to
procure common user items for public organizations of under the city administration
and to procure economic advanced goods and services.

Currently the agency purchases eighteen types of common user items and two types of
services to the public organizations like Hospitals and Colleges. In 2009 budget year
the agency processed international competitive bid 18 types of furniture, computer,
printers and related materials signing contract with suppliers for two years for the
organizations under the city. On the other hand in 2009 budget year the rest materials
which are needed by each organization under the city will be procured by each
organization.

1.2. Statement of the Problem

Purchasing plays a key role for the accomplishment of organizational goals and
missions by providing right quality, quantity reasonable price and from right source for
users at the right time and cost. However as the researcher observed from reports of the
public procurement and property administration core process of the city administration
organizations under the city administration especially Hospitals and TVET College‟s
purchasing and property administration departments are not performing this role
effectively and effectively.

2
Initial observations shows that, there are several defects of items purchased which don't
match with items requested or the needs of the user‟s department of college‟s because
of incorrect quality.

Purchases processed by the agency are excessively delayed specially in 2008 E.C the
purchasing process takes too long time it leads the colleges costs additional expense
due to inflation and corruption due to urgent and unplanned purchase. Therefore these
become hindrances for the organizations goal attainment.

In 2009 budget year the agency signed contract with suppliers for eighteen types of
goods for the year 2009 and 2010 budget year. The items listed by the agency are fewer
as compared with the need of each organization.

Lack of qualified human resource and insufficient office rooms are the existing
problems of each governmental colleges. Generally due to these and other related
reasons complains are repeatedly raised in different meetings and training programs
prepared by the Bureau of Finance and Economic Development which is the regulatory
body of procurement activities in the city administration.

The aim of this research was to clearly identify the procurement process of the colleges
and, assessed the consequences and burden on the colleges and would try to
recommend possible solutions.

1.2.1. Basic Questions

The aims of this research were to clearly identify the procurement process of the
governmental colleges in Addis Ababa city administration and ware attempted
recommending possible solutions.

What was the existing practice of procurement system of in Addis Ababa City
Administration governmental colleges?

3
 1. What is the existing practice of procurement system in selected governmental
colleges of Addis Ababa City Administration?
2. How do the colleges control the quality of purchased goods and services
functions?
3. What are users‟ attitudes towards the current purchasing practice and
performance of selected governmental colleges of Addis Ababa City
Administration?
4. What are the merits and drawbacks of the current procurement system in
Addis Ababa City Administration selected governmental Colleges?

1.3. Objective of the Study

1.3.1. General Objective

The general objective of this study is to critically analyze the problems associated with
reviewing the purchasing procedure and practices of Addis Ababa City Administration
selected governmental Colleges.

Further, the research attempted to review the performance of the Addis Ababa City
Administration selected governmental Colleges and Public Procurement and Property
Disposal Agency of Addis Ababa City Administration.

1.3.2. Specific Objectives

The specific objectives of this research were:

A. Assess the procurement practice of Addis Ababa City Administration

selected governmental Colleges

B. Assessment of the rules, regulations and policy of government

procurement system of Addis Ababa City Administration and the

4
 practice of Addis Ababa City Administration selected governmental
Colleges.

C. To look into the role and responsibilities of colleges in framework

agreement based procurement system of Addis Ababa City
Administration

D. To determine and isolate the specific problems on procurement

practice that confronts selected governmental colleges of Addis Ababa
City Administration.

1.4. Significance of the Study

The researcher believed that this study helps for the clear understanding of the reasons
behind inefficient frame work agreement based purchasing practice and its implications
on the accomplishment of selected governmental colleges if Addis Ababa City
Administration.

On the other hand, the significance of the study would be its contribution of reducing
the knowledge gap in the area of public procurement of employees of each college.

Additional the researcher also believed that the research to discover and recommend
mechanisms for viable and efficient framework procurement in governmental colleges
and other organizations, which would have be to support governmental colleges to save
significant amount of public resource. The research will also be a useful input for
further research on the area.

1.5. Scope of the Study

The study was limited to the analysis of information based on 2009 budget year
purchasing practice of selected four (4) governmental colleges of Addis Ababa City
Administration.

5
 1.6. Limitations of the Study

The researcher surmounts some problems related to this research like restraint
unwillingness of procurement staffs to give information about the procurement
information; but the researcher try to communicate and observe procurement
documents and going to the colleges daily in order to get an information about the
procurement issues from different colleges and Bureau of Finance and Economic
Development. To solve the problems the researches performed that daily travel to each
college and waiting free time of the experts and department heads to gather
information.

Another barrier of the researcher came across from leaders of the colleges requested for
interviews were not available due to other commitments (their own and organizational)
and not being interested. To solve this problem the researches traveled daily to each
college and waiting free time of the deans to conduct interview.

This prevents the researcher from gathering wide and deep data on procurement
practice of each selected college from top level leaders. Moreover, the length of
questionnaires and unconvincing reasons such as lack of time to fill them and give
reliable information on the right time given to accomplish the study ware the limitations
of this research.

The researcher tries to communicate with the staffs of each college and department
heads and used interview information and observing annual procurement plans and
other related documents like bid documents, agreements, awards and users departments.

1.7. Definition of Terms

For clearer understanding of the terms used in the study, below are their meanings.

6
Common user items: are similar or common requirements of various public bodies or
requirements of a public body (Addis Ababa City administration Public procurement
directive June 2002).

Consultancy Service: mean a service of an intellectual and advisory nature provided

by consultants using their professional skills to study, design and organize specific
projects, advice clients, conduct training and transfer knowledge; (Addis Ababa City
administration Procurement and Property Administration, Proclamation No. 17/2002).

Framework agreement/contracts/: mean a general agreement of procurement

establishing unite price and other terms and conditions of contract which serve as a
basis for supplies to be delivered under future specific contract (Addis Ababa City
administration Procurement and Property Administration, Proclamation No. 17/2002).

Goods: mean raw material, products and equipment and commodities in solid, liquid or
gaseous form, marketable software and live animals as well as installation, trans-
port, maintenance or similar obligations related to the supply of the goods if their
value does not exceed that of the goods themselves (Addis Ababa City administration
Procurement and Property Administration, Proclamation No. 17/2002).

Public body: mean any public body, which is partly or wholly financed by the Federal
Government budget, higher education institutions and public institutions of like nature;
(Addis Ababa City administration Procurement and Property Administration,
Proclamation No. 17/2002).

Public Procurement: means the measures taken by a contracting authority with the
aim of awarding a contract or concluding a framework agreement regarding products,
services or public works (Addis Ababa City administration Procurement and Property
Administration, Proclamation No. 17/2002).

7
Services: mean any object of procure- men other than works, goods and consult- any
services: such as maintenance, security, janitorial, electricity, telecommunication and
water supply services (Addis Ababa City administration Procurement and Property
Administration, Proclamation No. 17/2002).

Supplier: is bidder with whom was concluded framework agreement or public

procurement contract; (Addis Ababa City administration Procurement and Property
Administration, Proclamation No. 17/2002).

Works: mean all work associated with the construction, reconstruction, up grading,
demolition, repair or renovation of a building road, or structure, as well as services
incidental to works, if the value of those services does not exceed that of the works
themselves and includes build-own-operate, build- own-operate-transfer and build-
operate-transfer contracts (Addis Ababa City administration Procurement and Property
Administration, Proclamation No. 17/2002).

1.8. Organization of the Study

This research critically analyzes the procurement system of Addis Ababa City
Administration selected governmental Colleges. It was structured around five chapters.
Each chapter has its own subunits. The first chapter outlines the introductory part
including research design, strategy and methodology of the research. Also this chapter
raises questions that would answered by the study.

The second and third chapters cover the literature review and theoretical frameworks of
public procurement with the later dealing about the features the public procurement.
Further, the chapter discusses the public procurement experiences in the world bank ,in
Federal Democratic Republic of Ethiopia and in Addis Ababa City Administration.

8
Chapter four deals the data discussion and analysis. Finally, the fifth chapter deals with
the summaries of key findings concluding remarks and recommendations suggested for
solving the problem stated in the introduction part.

9
 Chapter two

2. Review of related literature

2.1. Introduction

This chapter explores the existing literature on factors affecting effective

implementation of procurement practices in governmental colleges of Addis Ababa
City administration. The chapter covers conceptual framework, theoretical framework,
empirical literature, and critical review and research gaps.

2.2. Procurement Management

Different writers have different explanations of Procurement Management based on

their opinion. In the course of time the role and character of purchasing has been
changing constantly.

According to Carter & Narasimhan, (1996) traditionally procurement was explain as an

activity which purchasing was seen as a merely supportive and supplementary
operational activity, with little significance on a firm‟s performance. During the 1970‟s
purchasing departments had a more administrative than strategic.

Lars Bedey Sofia (2008) defines purchasing management as Strategic purchasing is the
process of planning, implementing, evaluating, and controlling strategic and operating
purchasing decisions for directing all activities of the purchasing function toward
opportunities consistent with the firm's capabilities to achieve its long term goals.

Idrisu (2014) explains the term Procurement as it has been originated by the armed
forces to define one of several supply functions involved in logistic. He also said that
the armed forces define procurement as including the whole process whereby all

10
classes of resources (people, material, facilities and services) required by the armed
forces are obtained.

According to Dr. I. D. Idrisu (2014) the term originated from military organization, it
has for many years also been adopted and used by American industries. It is even
included in the title of a well known textbook.

In both settings, procurement encompasses a wider range of supply activities of which

purchasing is a part. For the purpose of this research, procurement is defined as being
broader in scope than purchasing and includes activities of strategic relevance, such as
sourcing, negotiating with suppliers and coordination with research and development.

Donald Waters (2003, P228) express in his book that “Procurement and purchasing are
often taken to mean the same thing. Usually, though, purchasing refers to the actual
buying, while procurement has a boarder meaning. He reminds that in purchasing not
all transactions are simple purchases, but it includes rental, leasing, contracting, gifts
etc. In his opinion, procurement includes, in addition to purchasing, also supplier
selection, negotiations, quality assurance, materials handling, transport, warehousing
and so on. It is an important link between organizations, largely concerned with
information processing and distributing it to the supply chain.

2.3. Major tasks of procurement management

Menon (1993) states the functions of procurement as which includes the activities of
follow-up with suppliers to ensure proper delivery; quality assurance in respect of
supplies made by vendors, (this includes supplier education, visiting the vendor‟s factor
to ensure in-process quality assurance) inspection of materials for quality in order to
ensure that specifications are complied with development of proper and streamlined
systems and procedures relating to the purchasing function to ensure that work is
carried out efficiently and at the lowest reasonable operating cost Coordination among

11
the materials department functions like transportation, receiving, store-keeping, and
inventory control.

Alijan George ( 1973) clearly stated the activities which should be carried by
procurement Department of any organization should focus on: Coordination with user
department to identify purchase needs; doing traditional buying; discussion with sales
representatives of suppliers; identification of potential suppliers; conduct market studies
for important materials; negotiation with potential suppliers; analysis of proposals ;
selection of suppliers; issuance of purchase orders; administration of purchase contracts
and resolution of related problems and maintenance of a variety of purchase records.

2.3.1. Procurement process

The purchasing process separates distinctive elements and activities. During the past
years much research was done in the field of purchasing and as a consequence, many
different kind of models emerged.

Woodside and Samuel (1981) for instance identified four phases of a purchasing
process: developing and analyzing requirements, preparing request for quotations
(RFQ) and analyzing quotations, committee-supplier negotiations and lastly post -
negotiation evaluation and reporting.

Generally, these models are all based on distinctive activities within the purchasing
process. However, there are differences in the denomination as well as the
grouping of the particular elements in the various models. Some models describe 4
different stages, whereas others examine more. The number of four stages however, is
too little, as it does not give enough description of the phases. That is why Van Weeles‟
process model which describes six stages will be the fundament of the book and will be
explained in the further description. The model shows the interconnectedness of the
activities, meaning that the output of one stage has an impact on the input of the
subsequent stage. For example, an insufficient specification of the requirements can

12
lead to a poor quality of goods that does not meet the requirements of internal
customers. The model itself is intended to help managers to structure the
purchasing process in decision making as well as operations (Van Weele, 2010).

Specification Phase

Johnsen, Howard, & Miemczyk discussed about the procurement process that starts
from the first phase which is the internal customer specifies the requirements for the
focal product or service which are needed. Naturally two distinct types of specification
are separated: detailed (technical) and functional specification. The former is used to set
up detailed characteristics of the good being it technical pre-settings or supplier‟s
activities. Functional specifications describe the range of capabilities the purchase
needs to have rather than a detailed prescribed approach. This has some advantages.
First, the supplier being an expert in his field, can decide about the best achievable
solution without being restricted by the buyer. Which leads directly to the second point,
innovation is encouraged (Johnsen, Howard, & Miemczyk, 2014). It is important that
specifications embody the needs of the whole business o rganization. Thus, need to
express the requirements of both internal customers and end customers (Johnsen et
al.,2014). If the specifications are not made properly due to a lack of communication
with internal customers, the response of the prospective supplier will present an
inappropriate offer in return (Rees, 2011).

Selecting Phase

According to Johnsen the next phase continued after stipulating the specifications the
selection process can be started. Mainly, it is about searching for a range of prospective
suppliers in the market fulfilling the basic requirements. Subsequently, the number of
suppliers is diminished bit by bit until the best fitting partner in terms of quality, cost,
terms, delivery, service, and experienced performance on previous orders is identified
(Johnsen, et al., 2014).

13
Contracting phase

Contracts set the legal framework of the buyer supplier relationship by which
contractual trust is established between the participating parties. Contracts represent the
first stage of a successful new purchasing relationship and help to avoid and regulate
the hazard of non- compliance. Main clauses that are mainly included are price and
terms of delivery, terms of payment, warranty conditions and penalty clauses (Johnsen,
et al., 2014). Contracting represents an important element in the purchasing process. It
is not only about signing the contract but rather additional effort is needed to manage
the contracts. That is why chapter four is going to elaborate this topic in more depth.

Ordering and Expediting Phase

Johnsen continues his explanation following the contracting phase, ordering takes
place. Incrementally by means of electronic software, which supports the automation of
the ordering process hence, transaction costs are decreasing due to less time exposure
(Johnsen, et al., 2014). The purchaser specifies the purchase information such as an
order number, delivery time, unit price and volume of ordered units, delivery address
and invoice address. Once the supplier received it, he usually sends a confirmation in
order to approve the order (Johnsen, et al., 2014; van Weele, 2010). Expediting implies
that the process is monitored. The aim is to guarantee that the ordered goods are
delivered in the right quality within the time stipulated, with the right and appropriated
packaging and last but not least, at the right location (Johnsen, et al., 2014)

Evaluating Phase

The final state represents the evaluation. Not only does the suppliers‟ performance need
to be followed up but also the performance of the product that was delivered. This
implies penalty clauses, warranty claims, invoice administration, but also positive
actions can be considered here in order to keep the suppliers motivated (van Weele,
2010, Johnsen, et al., 2014).

14
The purchasing process as explained above and illustrated in the figure does not take
place in each and every purchase situation. It merely displays a first-time purchase with
a high degree of risk, uncertainty and novelty. Regarding efficiency and effectiveness
straight repurchases and modified repurchases normally do not need to walk through
the entire process again (Johnsen, et al., 2014)

2.4. Ethics in Procurement Management

Thomas defined Ethics as the basic principles of correct behavior, with reference to a
specific person, profession or activity (Thomas, 1984). In this chapter the person, the
profession and the activity will be represented by the purchaser, the purchasing
profession and the purchasing function.

When most people think of ethics in Purchasing Management, they think of bribes and
gift‐giving from suppliers to purchasers, but there are several other issues that need to
be considered when discussing ethical issues connected to a company‟s sourcing
strategy. When it comes to a company‟s ethical responsibility regarding its purchases it
is mainly the requirements on its suppliers and how the company act to assure that the
suppliers act ethical in its operations that comes into focus.

Requirements that a company could put on their suppliers involves demands on legal
requirements, child labour, workers‟ rights regarding illegal work, wages and working
hours, factory conditions and safety, environment, but also requirements that the
products not shall affect the users‟ health negatively (European Commission (2001) and
Egels‐Zandén (2007)). Most companies aggregate all these requirements into a
framework called “Code of Conduct”, which will be presented and discussed later
in this chapter.

15
The chapter will also explaining why ethics has become more important to consider
within Purchasing Management, followed by the presentation of the concept of Code of
Conduct. After this will benefits and advantages that a company can achieve from an
ethical behaviour be presented followed by an explanation and a case study on why
companies fail to make ethical purchases.

2.5. Principles for public procurement

The fundamental principles for public procurement are applied to all procurement of
products, services and works in all countries which generated from world bank
procurement directives.

Susanne Kühn and Laura B. Sherman explains Public procurement that is the process of
acquisition by a government department or any government-owned institution of goods
or services, ranging from bed sheets for hospitals and textbooks for schools to financial
and legal services, as well as the commissioning of large-scale construction works, such
as roads, bridges and airports.

2.5.1. The principle of non-discrimination.

According to the World Bank Procurement Guidelines and Business Opportunities (2011)
the „principle of non-discrimination‟ means that it is prohibited to discriminate suppliers,
directly or indirectly, on grounds of nationality. Even if the contracting authority does not
expect any foreign tenders, it may not include requirements that only Swedish companies
are aware of or can perform in the contract documents. The contracting authority may
not, for example, give preference to a local company.

According to Addis Ababa city administration procurement directive (2002) the principle
of non-discrimination is expressed as “No Candidate Shall be discriminated or excluded
from participating in public procurement on the ground of nationality or other reasons
which are not related to the evaluation criteria except in accordance with the rule of

16
preference provided in the proclamation.” (Bureau of Finance & Economic Development
Addis Ababa City Administration Public Procurement Directive No 3/2002)

2.5.2. The principle of equal treatment.

According to the World Bank Procurement Guidelines and Business Opportunities; the
„principle of equal treatment‟ means that all suppliers should be treated equally and be
placed on an equal footing. All suppliers must, for instance, have access to the same
information at the same time.

2.5.3. The principle of transparency.

According to the World Bank Procurement Guidelines and Business Opportunities; the
„principle of transparency‟ means an obligation for the contracting authority to create
transparency by providing information about the procurement procedure and how it will
be conducted. In order for tenderers to be afforded the same opportunities for the
submission of tenders, contract documents must be plain and clear and contain all of the
requirements regarding the subject matter of the contract. Consequently, suppliers will be
able to see what is of reatest importance when choosing a supplier. A „contract relating to
a public works concession‟ means a contract of the same kind as a works contract but
which involves compensation comprising wholly or in part the right to exploit the work.
A „service concession‟ means a contract of the same kind as a service contract, but which
involves compensation for the services comprising wholly or in part the right to exploit
the service.

According to FDRE PPAPA the principle of transparency is expressed as “Any criteria

applied in making procurement decisions and decisions taken on each procurement must
be made transparent to all concerned parties.” (Ministry of Finance & Economic
Development Federal Public Procurement Directive June/2010)

17
 2.5.4. The principle of proportionality.

According to the world bank procurement directives (2011) The ‟principle of

proportionality‟ means that requirements for the supplier and requirements in the
specification must have an obvious link with and be proportionate in relation to the
subject matter of the contract. The requirements imposed must be both appropriate and
necessary to achieve the aim of the public procurement. If there are several alternatives,
the alternative chosen should be the one which is the least intrusive or onerous for the
suppliers.

According to FDRE PPAPA the “The principle of proportionality” is expressed as

“Encourage local producers, companies and small and micro- enterprises which
support the national economy through the application of preferential treatment
granted by the Proclamation and the Directive” (Ministry of Finance & Economic
Development Federal Public Procurement Directive June/2010)

2.5.5. The principle of mutual recognition.

According to the World Bank Procurement Guidelines and Business Opportunities; the
„principle of mutual recognition‟ means that diplomas and certificates issued by
authorities authorized by a Member State shall also apply in other EU/EEA countries.

Lysons and Farrington (2006, PP.8-9), defined purchasing as the processes undertaken
by the organization unit that, either as a function or as part of an integrated supply
chain, is responsible for procuring or assisting users to procure, in the most efficient
manner, required supplies at the right time, quality, quantity and price and the
management of suppliers, thereby contributing to the competitive advantage of the
enterprise and the achievement of its corporate strategy.

From the definition stated above, it is possible to conclude that procurement entail that
it is a process and parts of the supplies management process works to bring effective
and efficient management of resource, engaged in acquisition of materials and services

18
by various means, the acquisitions are based on the right manner (time, quality,
quantity, price…) and developing its own strategy that relates to the corporate strategy.

Sometimes procurement and purchasing considered as similar term with analogous

duties and responsibilities. Even though the two terms have similar explanation, there
are matters that makes distinct. According to Quayle (2006, PP:3) the term purchasing
and procurement are often used interchangeably; however, there might be a distinction
in that purchasing is more concerned with establishing and managing a commercial
relationship, whereas procurement is also concerned with the more physical material or
service delivery control aspects after the contract has been let or the order placed. On
the other hand Lysons and Farrington (2006, PP.6), procurement is a wider term than
purchasing, which implies the acquisition of goods or services in return for a monetary
or equivalent payment. Procurement, however, is the process of obtaining goods or
services in any way, including borrowing leasing and even force or pillage.

2.6. Stakeholders of Public Procurement

Stakeholders are those who stand to benefit from the results of public procurement,
including those interested in the process and who might be affected, directly or
indirectly, by a particular procurement action.

The difference between actors and stakeholders is primarily participation. Actors play
an active role in the procurement process, while stakeholders a more passive role.
Actors are also stakeholders because of the benefits they derive from the use of public
goods and services.

As Ethiopian Federal Government Procurement and Property Administration

Proclamation no 649/2009 there are four participants in public procurement hey ate:-
Ethiopian Federal Government Procurement and Property Administration
Agency which is the regulatory body of public procurement. Procurement Unit:
means a body responsible for procurement with in public bodies without prejudice to

19
the particular organizational structure appropriate to the nature of their duties. Heads of
Public bodies, leaders of governmental budgetary organizations. Procurement
Endorsing committee: Established by a Heads of Public bodies to approve
procurements of high value in the Public Body, consisting of members no less than 3
persons which serves for a maximum period of 3 years. Currently in City government
of Addis Ababa it is not applicable the works done by the Procurement
Endorsing committee is done by the Head of public body. (Ethiopian Federal
Government Procurement and Property Administration Proclamation no 649/2009)

2.6.1. Beneficiaries of Public Procurement

All inhabitants of a country are beneficiaries of the public procurement system through
public goods and services available and provided in the form of transportation systems,
public utilities, educational systems, and medical services and facilities, among others.

Procurement practitioners are the principal actors in the public procurement process.
They are responsible for ensuring the goal of public procurement is achieved. They
must gain stakeholder‟s trust and ensure they fully understand the procurement process
and principles.

Procurement practitioners are directly and indirectly engaged in the procurement

process, from need assessment to contract close-out. Although, they are more directly
involved in the public procurement process, they also provide advice and support
during contract execution.

2.6.2. Procurement Legal Framework

Procurement policy benefits the organization by keeping costs in line and clearly
defining how purchases will be made (Hall, 2009). As the needs of the entity change,
there is a good chance that the procurement policy will be adjusted to meet those new
circumstances. This is necessary to make sure the policy continues to function in the

20
best interests of the company or non-profit organization and keep the acquisition
process simple and orderly (Günther, 2007).

The United Nations viewed public procurement as an “overall process of acquiring

goods, civil works and services which includes all functions from the identifi cation of
needs, selection and solicitation of sources, preparation and award of contract, and all
phases of contract administration through the end of a services‟ contract or the useful
life of an asset” (UNDP, 2007). Although procurement process is the heart of a sound
procurement system (Harink, 1999), public procurement, according to Harink (1999, p.
15), “involves more than the procurement process alone” and it should not only consist
of supporting, but also “important components” including strategy and policy of the
organization, methods and procedures, personnel and organization, and information. In
the last decade, several authors and organizations have suggested conceptual
procurement models. The World Bank has developed a framework of procurement
assessment under its “Country Procurement Assessment Review.” This framework
consists of four elements: legal framework, institutional framework and capacity,
procurement operations and practice, and integrity of the procurement system. This
framework provides basic guidelines or a procurement benchmarking tool for assessing
the quality and performance of country procurement systems. Detailed areas covered
under this framework include (1) legal framework,(2) institutional framework, (3)
procurement execution capacity, (4) procurement procedures/ tools, (5) control system,
(6) anticorruption initiatives, (7) private sector participation, (8) contract management,
and (9) system for addressing complaints (Araujo, 2004).

Tanzi (2009) notes that application of poor procurement policies and lack of top
management support does not promote effective implementation of procurement
practice in many government institutions in East Africa.

21
Public procurement is governed by the procurement legal framework, which is a law or
regulation (or part of a law or regulation) that is sanctioned by the judicial system of a
particular country. This sets the rules for the management of public procurement.

The procurement legal framework is usually further developed into policies and
procedures, procurement and contract administration manuals and guidelines, including
standard solicitation documents that are used to call for offers from contractors,
suppliers and service providers. The language of public procurement policies,
procedures, guidelines, manuals and standard solicitation documents must align with
what is established in the public procurement legal framework. Adherence to the public
procurement law is obligatory; any infraction is punishable by law.

The procurement legal and institutional frameworks (procurement rules) govern

everything from the identification of a requirement through to the closing out of a
contract; sometimes including disposal, reutilization and destruction of goods.

The current legal framework of Ethiopia is based in the UNCITRAL Model Law for
Public Procurement and now clear and stringent, with a federal procurement
proclamation supported by secondary implementing legislation (procurement directive
and manual) and guidelines/SBD‟s.

According to Tesfahun (2011), the best legal framework lays down the establishment of
an audit unit, complaint review unit, procurement oversight body, tendering committee
and the enactment of secondary legislatives among others. Accordingly the Ethiopian
public procurement legal framework has established all this.

Apart from the Proclamation, there is also the Federal Government Public Procurement
Directive issued by the Minister of Finance and Economic Development that entered
into force on 8th day of June 2010, which establishes procedures for concluding and
administering framework agreements.

22
Following to the proclamation and Directive the public procurement manual is issued in
December/2011. The Public Procurement Manual is a public document issued by the
Public Procurement and Property Administration Agency (PPA) as mandated in the
Proclamation. The Manual is intended for the use of all public bodies undertaking
public procurement using public funds, in accordance with the Proclamation and
Directive. Entities outside the coverage area of the Proclamation may use this Manual
with the prior consent of their respective relevant authority under jurisdiction. The
Manual also includes Guidance notes and Formats that can be used by public bodies,
which is consistent with the Proclamation and Directive.

In addition, the FDRE has issued public procurement framework manual in May/2011.
This manual is designed to define policies and procedures which govern procurement,
administrative, and monitoring arrangements required for development and
management of framework agreements and to provide public bodies with the necessary
information needed to utilize framework agreements.

The Legislation and legal indicators typically focus on the production of legislation to
combat corruption and the progress of trials involving corruption. They also tend to
include other de jure (i.e., written) provisions such as the production of monitoring
reports and audits as part of their anti-corruption indicators. Strong procurement
legislation is essential for providing tools for the police and judiciary with which to
investigate and prosecute alleged acts of corruption (Sumedh & Heather, 2012).

2.7. Public Procurement in Ethiopia

Public procurement is the process of the acquisition, usually by means of a contractual

arrangement after public competition, of goods, services, works and other supplies by
the public entity. The public procurement process spans the whole life cycle from initial
conception and definition of the needs through to the end of the useful life of an asset or
the end of a contract. The Federal Democratic Republic of Ethiopia, Public

23
Procurement and Property Administration Agency (2011, PP: 6). Then again, Baily and
et al (2005, PP 343) identified proposals for the public sector includes; seeking to
develop world class professional procurement staff; seeking to introduce best practice
in terms of whole-life cost savings; highest standard benchmarking; co-operative
relationship with contractors and supplies within the constraints of competition; the
promotion of continuous improvement (Kaizen) General principles of government
procurement, purchasing should be based on value for money, competition should be
used to acquire goods and services (unless there are convincing reasons to the country),
there should be clear definition of the roles and responsibilities of personnel involved in
specifying the need, giving financial authority and making purchasing commitments,
there should be separation of the financial authority and the purchasing authority,
There should be separation of duties between personnel who make contracts, those who
receive the goods or services and those who authorize payments. Requirement which
are above a certain financial threshold are normally required to be advertised in
accordance with [government] regulation on public procurement. Baily and et al (2005,
PP 343-344)

2.8. Professionalism in public procurement.

Different organizations have different views on purchasing (Carter, Carter, Monczka, &
Slaight, 2000). And most all organizations have a purchasing department, therefore
it can be considered a wide profession (Mulder et al. 2005). Mulder et al. (2005)
studied the role studies, which underline the importance of the analyses of work
processes in terms of outputs, competencies, levels of mastery and trends that have an
influence on the development of the profession. Looking at the purchasing profession
the outputs which are generated by the purchasing department have to be taken into
account, so as the competencies they need to possess, the different levels of mastery
and the trends that influence the development of the purchasing profession.

24
It is essential to look at the purchasing department, how it is organized and what tasks
constitute the different jobs. Mulder et al. (2005) categorized the jobs in four
categories: Purchasing Manager (PM), Senior Buyer (SB), Buyer (B) and Assistant
Buyer (AB). The tasks were also categorized in four categories: Management,
Information and Communication, Initial purchasing and practical purchasing.

Professionalization is associated with the development of associations that seeks to

establish minimum qualification for entrance to a professional practice or activities,
enforce appropriate rules and norms of conduct among the members of the
professional group and raise the status of the professional group in the wider society
Lysons and Farrington (2006, PP: 23). In order to ensure public accountably, yet to
gain optimum impact through the use of commercial best practice, there is a need for
professional training and education of those personnel responsible for the strategic
direction and practical application of procurement action.

2.9. Strategic aspects of purchasing

The strategy of every organization is a derivative its department strategy in a

consolidated manner. Even though the corporate strategy may depend on the primary
function of the organization, each unit has its own contribution to the corporate
strategy. As per Quayle (2006, PP: 26) it is important that the plan shows a coherent
competitive strategy on which the detailed plans for each function can be used. As per
Baily and et al (2005, PP 32) some of the main reason for the growth in purchasing
involvement in the strategic decision-making are as follows, Purchasing is seen as an
area of adding value, not simply reducing costs; awareness that active supplier
involvement can increase efficiency; increased recognition of profit potential in
purchasing.

Similarly Quayle (2006, PP: 26) states the for the development of the strategic
perspective of purchasing are, rising prices and the need to control inflation, the need to

25
control investment in inventory more effectively, shortage of materials, and growing
scarcity of some key materials.

Thus, based on the facts and points stated above, procurement unit has a considerable
impact on the corporate strategy and failure of the procurement unit strategy has great
negative impact on the corporate strategy. Quayle (2006, PP: 26) elaborate the
dimension of purchasing strategy as

The development of New Materials and Equipment: there are two reasons why buyer
should be concerned with identifying and helping supplies to develop new materials
and equipment. First innovations are an important source of cost saving
and of improvement in performance. Second, the substitution of new material and
equipment for products bought previous occasions can overcome anticipated shortages
and adverse price movement

The development of supply capacity: changes in supply condition and changes in

expected demand for materials may create a gap between existing capacity and the
volume required. Buyers, therefore, need to take steps to increase supplies in line with
the corporate plan. This may be done either by arranging for existing suppliers, expand
their facilities or by developing new supplier.

Price strategies and the structure of supply market: an audit of existing supply market
structure may show that they buying company may be in an unfavorable position.
Monopoly and Oligopoly situations could restrict competition and thus weaken the
power of the buyer as regards choice of suppliers and the negotiation of prices.

Elements of supplier partnership: to compete successfully in world markets, you need

to be better than the competition and source suppliers who can both add value and
reduce cost. Partnership sourcing is where a buyer and supplier develop such a close
and long-term relationship that the two work together as partners in a win-win
arrangement.

26
 2.10. Public procurement methods in Ethiopia

The Federal Democratic Republic of Ethiopia, Public Procurement and Property

Administration Agency (2011, PP: 47) by quoting Proclamation Article 33: list the
following methods of procurement

The following methods of procurement shall be used in public procurement: Bidding

(tendering), Request for Quotations, Request for Proposals, Restricted Bidding, Direct
Procurement

The Federal Negarit Gazeta (2005, pp 2963) sates that except as otherwise provided in
this Proclamation, the procuring entity shall use open bidding as the preferred
procedure of procurement. Even though it is common that each method has its own
advantage and drawback, the Ethiopian government prefers the bid way of purchasing
especially; open bidding way to perceive the advantage gained by such method.

2.11. Procurement Audit System

With the introduction of a decentralized procurement system, the need for rigorous
enforcement of the procurement audit system becomes more accentuated. Procurement
audit plays a vital role in detecting and investigating fraud and corruption in
procurement as well as suggesting systemic improvements. In Ethiopia a legal
framework, organization, policy, and procedures for internal and external control and
audit of public procurement operations are in place to provide a functioning control
framework. Procurement Audit Unit under the Public Procurement and Property
Administration Agency is responsible for undertaking procurement performance
audits. The Auditor General is largely responsible for financial audits. But there are few
procurement performance audits too.

Whereas performance audit is monitoring of the proper planning before tender;

adequate transparency (advertisement); correct choice of procurement method; correct

27
application of award criteria; presence of full procurement file and the proper use
of bid documents, financial audit deals about monitoring of budget compliance; proper
disbursement of funds; timely and correct delivery of funds and financial integrity.

Though the Federal Auditor General is largely responsible for financial audits, it
undertakes performance audits each year. However, the number of performance audits
carried out by the Federal Auditor General‟s Office (8-10 in 2009) is limited and below
their own targets. PPA has recently established an audit unit which is supposed to
carry out actual procurement audits at the federal level but this process is still in the
making.

2.12. Procurement Plan

According to Khi V. The purpose of this planning is to ensure that the procurement
agents meet the agency‟s needs in the most effective, economical, and timely manner.

The Federal Democratic Republic of Ethiopia, Public Procurement and Property

Administration Agency confirmed that each public body should

1. Any Public Body and other entities accountable to such Public Body shall be
required to prepare a procurement plan supported by action plan enabling them to
execute in due time, the procurement necessary to implement their work program.

2. The procurement plan shall be prepared in such a way as to enable the attainment of
the following objectives:-

a) To ensure compliance with principles of public procurement stated in article 5 of the

Proclamation.

b) To achieve the work program of the Public Body.

28
c) To ensure economy and efficiency in the operation of the Public Body by
discouraging piecemeal purchase.

d) Exercise prudence and make the necessary preparation to forestall problems that
might be encountered in the execution of procurement.

The Federal Democratic Republic of Ethiopia, Public Procurement and Property

Administration Agency also gives a regulation about identifying and packaging of
procurements as fallows

1. In identifying its procurement needs, any Public Body have to take the
following point into consideration:-

A. That the need cannot be met by using unused resource or property available in the
Public Body.

B. That the need can be met by a product or service available in the market.

C. That the need does not involve items which shall be of no use to the Public Body
and cause the Public Body to incur unnecessary cost.

D. That the identification of procurement needs makes provisions for additional need
that might arise in the future, especially in regard to the procurement of goods of
long term contract.

E. That the procurement need is in line with standard items which are widely available
in the market unless the need requires otherwise.

F. That the procurement need is environmentally friendly.

2. In determining its annual procurement needs arising from its various departments,
a Public Body has to adhere to the following procedures:-

A. require end users in the Public Body to submit their annual procurement needs,

29
 B. Indentify the need submitted by end users by type of procurement, quantity,
quality and source.

C. Identify goods, works and or services to which the Public Body gives priority and
special attention.

D. ascertain that there are adequate suppliers for the needs

E. Determine the cost estimate for each type of procurement by reference to survey
conducted by the Public Body or price information obtained from other sources.

F. Ascertain that technical specification is prepared or will be prepared by end

users.

3. Public bodies have to organize their procurement needs in packages based on

procurement needs data collected from end users and market price survey, and
taking into consideration the following points:-

A. Without prejudice to the provision of article 53 of the Proclamation, where a

situation arises in which a procurement comprises goods, services and works, the
Public Body shall classify such procurement on the basis of the value of the
component representing more than 50 % of the value of the procurement.

B. Assort, as far as possible, similar and related needs.

C. In respect of bulk purchase, ensure that there are adequate suppliers in the market
or classifying the procurement into lots based on category of supplies, which can
attracts competition.

D. Ensure that the procurement is convenient for execution and there are no hurdles
obstructing the procurement.

30
E. Organize the procurement in such a way as to open up opportunity for as many
local producers as possible to participate in the procurement.

Public Procurement and Property Administration Agency gives a guideline for

Selection of procurement Method

1. In the preparation of their procurement plan, Public bodies have to select and
indicate the appropriate procurement methods to be used in respect of each type of
procurement, from among the methods prescribed in the Proclamation and this
Directive.

2. In preparing its procurement plan, a Public Body has to insure that the plan is
inclusive of all of its identified procurement needs and the appropriate procurement
method is selected for each procurement.

2.13. Procurement methods

According to Lysons and Farrington (2006, PP: 576) a purchasing procedure whereby
potential suppliers are invited to make a firm and unequivocal offer of the price and
terms on which they will supply specified goods or services, which, on acceptance,
shall be the basis of a subsequent contract. Alternatively, Lewis (2005, pp 1) elaborate
as a formal written offer to undertake work or provide services for a stated price is
called tender

2.13.1. Types of bid

According to Lysons and Farrington (2006, PP: 576) tender are alienated in to five
ways:

31
 2.13.1.1. Open Tender:
Prospective supplier are invited to compete for a contract advertised in the press or on
the internet-the lowest tender generally being accepted, although the advertisers usually
state that they are not bound to accept the lowest or any tender. Similarly the Federal
Democratic Republic of Ethiopia, Public Procurement and Property Administration
Agency (2011, PP: 41) sates that all interested firms bidders are given adequate
notification of contract requirements and all eligible bidders are given an equal
opportunity to submit a tender. The public body must give sufficient public
notification of bidding opportunities to potential bidders to determine their interest and
prepare bid documents.

Selective Tender: Tenders invited from supplier on an approved list that have been
previously vetted regarding their competence and financial standing.

Serial Tenders: Prospective suppliers are requested on either an open or a selective

basis tender for an initial scheme on the basis that, subject to satisfactory performance
and unforeseen financial contingencies, a program of work will be given to the
successful contractor, the rates and prices for the first job being the basis for the rest
program.

Negotiated tender: a tender is negotiated with only one supplier so that competition is
eliminated. This type of contract is usual. In case of local authority, it would require the
waiving of standard order.

Thus, generally the Ethiopian government adopts only the two methods of tendering;
open and restricted Tendering.

2.13.1.2. Two stage biding

According to public body may use Two-Stage Bidding Method for the procurement of
large or complex contracts. In the First-Stage, a public body shall invite through

32
advertisement unpriced technical proposals on the basis of Bidding Documents which
shall state the requirements of the public body in general terms and incorporate the
necessary description and questionnaires and outline a conceptual design and/or
specific performance requirements. A conceptual design would focus mainly upon the
presentation of a functional design that provides potential bidders with basic technical
information, e.g. stipulated performance specifications, outline technical specifications,
visual, operational and economic details of the required procurement object.

2.13.1.3. Request for quotation

The Federal Democratic Republic of Ethiopia Public Procurement and Property
Administration Agency the amended procurement regulation (2016, PP: 1-4) a public
body may undertake procurement by means of a Request for Quotations (RFQ) for the
purchase of readily available, standard, off-the-shelf goods and related services and low
value simple works or physical services, provided the estimated value of the contract
does not exceed the amount

For works ETB 500,000.00

For goods ETB 200,000.00

For consultancy ETB 120,000.00

For services ETB 150,000.00

The public body shall request quotations from as many Bidders as practicable and shall
obtain and compare at least three (3) quotations to establish the competitiveness of the
quoted prices. Comparison of two (2) quotations is justified only when there is
satisfactory evidence that there are only two sources of supply.

33
 2.13.1.4. Request for proposal.
The Federal Democratic Republic of Ethiopia, Public Procurement and Property
Administration Agency (2011, PP: 79) A Request for Proposals (RFP) shall be used by
public bodies for procurement of consultancy services. Consultancy services mean a
service of an intellectual and advisory nature provided by consultants using their
professional skills to study, design, and organize specific projects, advice clients,
conduct training and transfer knowledge.

2.13.1.5. Restricted bidding

Prospective suppliers are invited to compete for a contract that advertising of which are
restricted to appropriate technical journals or local newspapers. Likewise the Federal
Democratic Republic of Ethiopia, Public Procurement and Property Administration
Agency (2011, PP: 43) the total contract value of Procurement made by restricted
bidding, in accordance with Article 49.2 of the Proclamation shall not exceed the
following:

For procurement of works ETB 6,000,000.00

For procurement of goods ETB 1,500,000.00

For procurement of consultancy services ETB 900,000.00

For procurement of services ETB 1,200,000.00

2.13.1.6. Direct procurement

The public body shall, in the first place, ask for a quotation from a single bidder
directly and afterwards shall be free to negotiate with the selected sole bidder. There is
no requirement for Direct Procurement to be advertised, nor is there a need for a bid
security.

34
 2.13.2. Single versus Multiple Sources
It is commonly believed that competition between suppliers for a similar part will drive
costs lower as suppliers compete against each other. [Conversely] the major arguments
in favor of single sourcing are that with the certainty of large volumes the supplier can
enjoy lower costs per unit and increased cooperation and communication to produce
win-win relationship between the buyer and seller.

Then again, Fearon and England (1992 pp 257) discussed how the purchasing unit relay
with a single source by enumerating

1. Prior commitment, a successful past relationship, or an ongoing long term

contract with a preferred vendor might prevent even the possibility of splitting the
order.

2. The supplier may be the exclusive owner of certain essential patent or process
and, therefore be the only possible source.

3. Concentrating purchase may make possible certain discounts or lower freight

rates that could not be had otherwise.

4. When all orders are placed with one supplier, deliveries may be more easily
scheduled.

5. Effective supplier management may require considerable resources and time.

2.14. Make or Buy decisions

According to Peter Baily and et al (2005, pp 256) some exigency is the usual reason for
review, and some common reasons for make or buys decision at the lower level are:
deterioration in an existing supplier‟s quality performance; delivery failure or poor
service in an existing source; large price increase, volume change; much larger or

35
smaller quantity requirement for items concerned. Pressure to reduce costs Desire to
concentrate internal resources on areas of special competence, need for design secrecy
and import substitution.

Silas gachanja kinyeki (2012) explains make or buy principle that it is a system
decision as a buying procedure or make process or services rental / hire are required to
facilitate the acquisition process of professional procurement managers at all times in
which they are required to be cost effective and conscious by saving any single dollar,
through prudent buy practices. To qualify in being a real professional buyer or
procurement specialist needs very good understanding of procurement management
functions including wide experience in supply and materials functions as well as some
practices in positions which expose you to interact with both other buyers, sellers,
marketers, and users. Ethics is an important area in procurement management and even
in other business and academic sectors. Professionals must be seen and understood to
act differently from lay people in areas of their professional disciplines.

Then again, Dobler Lee and Burt (1998, pp150) the make or buy issue should be
addressed for all new items which can be either purchased or produced in house. Every
job release and every purchase request implies a decision to make or to buy. Purchasing
and supply management plays a key role in the make or buy process by providing
information on the cost, quality, and availability of items.

2.15. Classification of purchasing goods

According to Rushton, Croucher and Baker (2006 pp244) Products need to be classified
according to their criticality to the business and the value of annual purchase. The four
categories usually used are routine purchases, commodities, critical items and strategic
times [….] strategic item is one that is both very critical to the business and has a high
annual purchase value. Routine purchase is one that has low annual purchase value and
is not critical to the business.

36
Federal Democratic Ethiopia Public procurement and property administration Agency
classify type of purchases in to three categories

1. Goods

2. Consultancy Services and non-consultancy services and

3. Works (construction) based on these they use planning and reporting according
to the categories.

2.16. E-procurement on public corruption

According to Croom and Brandon-Jones (2007), “e-procurement is the process of

purchasing goods and services electronically.” The various stages of public
procurement in which electronic procurement method can be applied include,
identifying vendors or suppliers, placing orders and arrival of goods. E-procurement
helps to improve the efficiency of the purchase process and decrease the cost involved
in traditional purchasing. Most of the paper work is limited, thereby cutting the cost and
time required reaping benefits often to the tune of millions of birr‟s. Croom and
Brandon-Jones also explain that, E-procurement is most employed in purchasing small
and less expensive items. The traditional approach is still preferred for more expensive
products such as complex engineering machinery. However, companies are
increasingly recognizing the benefits of online sourcing. Online goods procurement
helps organizations to sketch out optimized plans for managing the supply chain. E-
procurement not only saves money the simplification of the whole process. The
optimized plans can be communicated quickly to the suppliers thereby reducing cost
and wastages usually involved in the supply chain. The advantage of E-procurement
include a reduction of overhead such as purchasing agents, effective
control of inventories, and the overall improvement the business cycle.
E-procurement can limit the opportunities for corruption by automating procedures and
reducing the amount of discretion exercised by procurement officials and their personal

37
contact with private sector representatives. E-procurement can increase the number of
suppliers and the amount of competition by making access easier and significantly
enhancing transparency by centralizing all information related to the procurement
process in a publicly available web portal (TI, 2014) Public e-procurement has been
defined as the use of information and communication technology such as internet / web
based system by governments in conducting their procurement relationship with
bidders for the acquisition of goods, works, services and other consulting services
required by the public sectors (Davila,Gupta & Palmer, 2003; Leipold et al., 2004). It
has been defined as an inter-organizational information system, which automatizes any
part of the procurement process in order to improve efficiency, quality, and
transparency in government procurement (Vaidya, 2007). Currently there are different
types of e-procurement systems available in the market such as e-market, e-MRO, e-
sourcing, e-tendering, e-ordering and e-exchange (De Boer et al. 2002). Each type of
system is built for special purpose and has its own specific functionality and
characteristics.
Implementation of public e-procurement technology plays a vital role to reduce
corruption in public procurement. The most important perceived anti-corruption factors
of public e-procurement technology are: real time access procurement information,
automation of procurement system, more completion in public tendering, reduces
human interference in public tendering, transparency, efficiency, quality, and
accountability in public procurement. Developed countries have already implemented
and practiced e-procurement in public and private levels.
For example, Singapore, Australia, New Zealand, UK, USA, Denmark, and Japan, have
already materialized public e-procurement and received many perceived benefits of e-
procurement performance in public and private sectors. In the context of developing
countries, adoption of eprocurement in government level is in a preliminary stage.
Some of the developing countries‟ governments already have e-procurement and others
are in a piloting phase. Some governments have a position of “wait and see” for e-
procurement performance (Neupane et al., 2012).

38
According to Neupane et al. (2012) the most common types of E-procurement system
are presented in the table below.
Table 2.1: Types of E-procurement system
E-procurement Description
system
e-Informing Gathering and distributing purchasing information both
from and to internal and external parties using internet
technology.
e-Sourcing Process of identifying new suppliers for specific categories
of purchasing requirements using internet technology.
e-Tendering The process of sending requests for information and prices
to suppliers and receiving the response using internet
technology.
e-Reverse auctioning Internet based reverse auction technology which focuses
on the price of the goods and services auctioned.

e-MRO and web based The process of creating and approving purchasing
ERP requisitions, placing purchase orders and receiving the
goods or services ordered via a software system based on
internet technology, e-MRO deals with indirect items
(MRO), webbased ERP deals with product-related items.

e-ordering The use of Internet to facilitate operational purchasing

process, including ordering (requisitioning), order
approval, order receipt and payment process.

e-Markets E-markets are meeting venues for component suppliers

and purchasers, who use exchange mechanism to
electronically support the procurement process. e-
Intelligence Management information system with spend
analysis tools

e-Contract The use of information technology for improving the

Management efficiency and effectiveness of contracting processes of
companies.

Achterstraat (2011) indicates, twelve Anti-corruption factors of public e-procurement

technology for reducing corruption in public procurement

39
a. Avoid unnecessary purchase / project,
b. Real time access information or real time bidding,
c. Automation of procurement process,
d. Increase competition among the bidders or suppliers,
e. Reduce human intervention in bidding process,
f. Standardization enactment (More consistency in Procurement
phase),
g. Monitoring and tracking application,
h. Efficient and secure document transmission,
i. Managerial control and collaboration,
j. Transparency and accountability,
k. Make a procurement process faster and easier,
l. Obtain the best quality / price ratio

40
 CHAPTER THREE

3. Research Design and Methodology

The research methodology was descriptive survey and cross sectional which covers that
Addis Ababa City Administration selected governmental Colleges who procure goods,
services and works for their consumption.

This research used both qualitative and quantitative nature it will include both
numerical and narrative data.

Quantitative research establishes statistically significant conclusions about a population

by studying a representative sample of the population. The population consists of the
entire group being studied. It does not matter if the population is broad or narrow, only
that it includes every individual that fits the description of the group being studied
(Creswell, J.W. 2003. Research Design: Qualitative, Quantitative, and Mixed Methods
Approaches. 2nd ed.) Thus, this study employed descriptive survey method to collect
data from number of respondents using instruments with numerical measure in order to
describe and to explain the procurement practice and the purchasing procedure of Addis
Ababa City Administration Addis Ababa City Administration selected governmental
Colleges and Public Procurement and Property Disposal Agency.

The study has also a qualitative nature. Qualitative Research describes an event in its
natural setting. It is a subjective way to look at life as it is lived and an attempt to
explain the studied behavior.

Rather than design an experiment and artificially control the variables, qualitative
researchers use anthropological and ethnographic methods to study the participants. As
little intrusion as possible should occur in qualitative research and a researcher will
frequently observe the participants unnoticed (Flick, U. (2002). An Introduction to

41
Qualitative Research. 2nd ed.). Qualitative study helped the researcher to understand
how the principles rules and regulations of city administration and the situation or
phenomenon on practice of procurement. This will make the study to have a nature of
basic qualitative study.

3.1. Data Sources

Both primary and secondary data were used in the study. To achieve the objectives of
this study the researcher will employ both primary and secondary data sources.

3.1.1. Primary Data Source

To assess frame work agreement based purchasing system in selected governmental

colleges of Addis Ababa City Administration, primary data was collected from sample
respondents. A small group discussion was conduct with some directors of the
university.

The primary data collection included: conducting interview with TVET college‟s Dean
(who is directly responsible to oversee purchasing activities of each TVET college) and
purchasing & materials handling staff; distributing questionnaires to 45 academic
and administrative staff of each TVET college which would constitute

3.1.2. Secondary Data Sources

The secondary gathered from different internal & external reports memorandums‟ and
publications of selected governmental TVET colleges if Addis Ababa City
Administration and Procurement and Property Disposal Agency (PPPDA). The
researcher also used internets and related documents and books as a source for its
analysis.

Secondary data was gathered by reviewing various purchasing documents; and

Addis Ababa city Administration government purchasing manual. For comprehensive
coverage of the subject matter researches on the area will examined and books, journal

42
and Internet resources were reviewed. Data was analyzed using descriptive statistics
applying SPSS software program.

3.2. Data collection Tools

In conducting this research the researcher used the following tools. Questioner
distributed to the Deans, purchasers, user departments, Procurement and Property
Disposal Agency (PPPDA) officers and managers.

Focused grouped discussion (FGD) also conducted with purchasers five times; with
user departments four times and with Procurement and Property Disposal Agency
(PPPDA) officers once. Additional to these the researcher also collected primary and
secondary data from reports and brochures of colleges, Bureau of Finance and
Economic Development of the city administration and Procurement and Property
Disposal Agency (PPPDA).

3.3. Sampling size, selection and procedure

The researcher prepared 72 (seventy two) different questionnaires for college leaders,
experts, user departments and regulatory bodies and distributed to deans of each
colleges purchasers, procurement experts and user departments of four (4) colleges, 20
(twenty) (PPPDA) officers, 3 (PPPDA) managers and 5 five officers of Bureau of
Finance and Economic Development.

3.4. Data Analysis

Both quantitative and qualitative data were collected from different sources and
were organize and present in a way to properly answer the research questions.
Moreover, primary data which was collected through questionnaire was tabulated and
percentage and frequency count was calculated. In addition to the quantitative data was
used to complement quantitative analysis and interpretation.

43
 CHAPTER FOUR

4. PRESENTATION AND ANALYSIS OF THE DATA

The presentation and analysis of analysis of demographic characteristics as well as both

quantitative and qualitative data are presented in section.

4.1. Characteristic of the Respondents

The purpose of this section is to present the consistency of the data collected as it is
summarized below in table 4.1 from 72-sample size of respondents 60, (83%) gave
responses of questioners, interview and checklist .

The deans, department heads, instructor and experts who are respondents consisted of
members of this study selected from four Colleges and one regulatory body and one
agency in Addis Ababa City Administration. The researcher distributed 72
questionnaires to deans, department heads, instructor and experts and 60 (83%)
questionnaires were completed and returned. From 6 sample size of leaders respondents
3(50%) gave responses. The institution leaders‟ respondents are deans of the colleges.
The 3 questionnaires were completed and returned.

44
 Table 4.1 Response Rate of Participants

Response Rate of Participants

Response Response
No Name of Colleges /Institution Sample Size
rate percentage

Addis Ababa Tegbated Industrial

1 12 9 13%
College
2 Lideta Industrial College 12 10 14%
General Wingate Industrial
3 12 9 13%
College
4 Kolfe Industrial College 12 10 14%
Addis Ababa City Bureau of
5 Finance and economic 16 14 19%
development
Addis Ababa City
6 Administration public 8 8 11%
procurement and property
Total disposal Agency 72 60 83%
No. Position of the respondents

Level of Leadership Response Response

Sample Size
leadership Position rate percentage

Higher- Deans and 6 3 4%

1
level Directors
Middle- 18 15 21%
2 Department heads
level
48 42 58%
3 Lower-level Experts

Total 72 60 83%

As it is indicated below in the Table 4.2, 24 (59%) respondents were males, (41%) were
females. This shows that the majority of respondent‟s participants in the study were
male.

45
Respondents between 18 to 20 age range were 2 (5%). 8(20%) of the respondents were
between 20 and 25 age range. 13(32%) of the respondents were between 26 and 30 age
range. 9(22%) of the respondents were between 31 and 35 age range. 3(7%) of the
respondents were between 36 and 40 age range. while 4(10%) were between 41 and 46.
The rest were 2(5%) aged above range of 46. The highest age range among the
participants was between 26 and 30, this shows that most of the respondents participants
of the study were at middle age group.

Eleven (26.83%) respondents had Master's degree while 24(58.54%) had BA/BSC/BED
degree. 4(14.63%) have diploma (Level 4). The majority of the participants in the study
had BA/BSC/BED degree and it is assumed that the participants are specialized in their
fields so that they can give balanced reflection on the procurement work.

As it is also presented in the table 4.2, 31(75.61%) of respondents were at the low level
of management, 7(17.07%) were at middle level of management and the rest 3(7.32%)
were at higher level of management. This shows that the majority of participants were at
low level of management and their responses represent their level.

Eighteen (43.90%) had work experience between six and ten years and eight (19.51%)
with work experience under 1 year. The rest nine (21.95%) had work experience
between one and five years and six (14.63%) with work experience above 46 year. This
indicates that most of participants in the study had work experience between 6 and 10
years. It is assumed here that the respondent had enough experience that can be
accounted.

46
Table 4.2 Characteristics of Participants

Respondents
No Characteristics
Frequency Percentage

Male 42 70.00%
1 Sex Female 18 30.00%
Total 60 100.00%
18-20 2 3.33%
21-25 9 15.00%
26-30 13 21.67%
31-35 14 23.33%
2 Age 36-40 10 16.67%
41-45 8 13.33%

46 and above 4 6.67%

Total 60 100.00%
MA Degree 11 18.33%
BA/BSC/BED Degree 39 65.00%
Educational Level 4 (diploma) 10 16.67%
3
background Level 3 0 0.00%
Level 2 0 0.00%
Total 60 100.00%
Lower Level 42 70.00%
Respondents‟ Middle Level 15 25.00%
4
position Higher level 3 5.00%
Total 60 100.00%
Under 1 year 8 13.33%
1year-5years 17 28.33%
Respondents‟ Work
5 6years-10 years 20 33.33%
experiences
Above 10 years 15 25.00%
Total 60 100.00%

47
 4.2. Procurement Training

According to Addis Ababa City Administration of Finance and Economic Development

Public Procurement and Property Administration Directives (3/2002) staff training will
be crucial to the success of the implementation. However, selected governmental TVET
colleges of Addis Ababa City Administration procurement staffs are not taking the right
training. Firstly, according to the procurement support team leaders and the
procurement officers, trainings are giving randomly; either the city administration or the
BoFED (Public Procurement and Property Administration Core Process) may prepare
and deliver the procurement training based on their schedule even by comprising other
organization‟s procurement staff. This may be arranging by the time of pick hour or
some staffs are on leave.

According to the respondents reply to the Interview and questioners there was no pre
assessment of training to identify the knowledge gap on the procurement practice and
public procurement. This makes the training less worth and even sometimes it may be
worthless.

Therefore, it is possible to realize that the gap of knowledge and lack of skill training did
not meet the right objectives and it does not fill the knowledge and process gap as it
is not giving based on the pre assessment and planed schedule.

Table 4.3 Percentage of procurement training taken by the managers and experts

No Factors frequent Percentage

1 Training taking about public procurement every year 5 62.50%

2 Not taking any public procurement training 3 37.50%

Source Questioner

As it is indicated above in the Table 4.3, 5 (62.5%) respondents have taken training
annually, 3(37.5%) haven‟t taken any training about public procurement before. This

48
shows that the majority of respondent‟s from the team leaders and case team leaders they
have taken training which is given by the BoFED.

4.3. Procurement Method

The procurement department usually use the approve procurement method on the
procurement manual; direct procurement, request for pro forma, Open bidding, restricted
bidding and request for quotation.

The procurement method should be selected depends on a some factors including the
type of goods or service being procured, the threshold of the goods or service to be
procured, the potential interest of foreign bidders and even the cost of the procurement
process itself. The selection of any procurement method other than Open Bidding should
be permitted by the institution head, stating the reasons and justification for the method
selected Public Procurement Manual (June 2003 Ec).

As information gained from procurement support team leaderss and reports, Open biding
method gets priority than other purchasing method is because the procurement process is
highly exposed to corruption. Open biding method takes significant portion of the
procurement process, which is 59.16% of the total purchase for the 2009 E.C for the nine
months. Conversely, the 23.2 million birr purchase through direct procurement is
selected because the market enforces the purchasing staffs to use it and purchase requests
come without plan and urgently.

49
 Table 4.4 amount of purchase for the last nine months from July 2008 E.C to March
2009 E.C

2009 EC 3rd Quarter procurement report

Type of
Procurement Method
No Open Restricted Request for Direct
purchase
bidding bidding quotations procurement Total
method method method method

46,353,047.4
1 Goods 3 5,036,331.94 1,951,016.41 7,234,148.34 60,574,544.12

2 Works 1,507,319.51 332,720.54 287,000.00 32,053.49 2,159,093.54

3 Services 2,356,905.67 1,809,155.14 1,960,912.72 16,018,588.89 22,145,562.42

50,217,272.6
Total 1 7,178,207.62 4,198,929.13 23,284,790.72 84,879,200.08

Percentage
Type of Open Restricted Request for Direct
No
purchase bidding bidding quotations procurement
Total
method method method method

1 Goods 76.52 8.31 3.22 11.94 71.37

2 Works 69.81 15.41 13.29 1.48 2.54

3 Services 10.64 8.17 8.85 72.33 26.09

Total 59.16 8.46 4.95 27.43 100.00

(Source BoFED 9 Months procurement report 2009 E.C)

It is possible to realize that the departments spent significant amount of money with open
bidding. Moreover, the proclamation and the amended directive and circulars set that
each purchase should entertain through the open bidding and the percentage coverage
should be more than 82%. That is why around 50.2 million birr are expended through

50
open bidding. This also indicates that the procurement staffs are and leaderss of each
institution selecting the procurement method.

On the other hand, 23.2 million birr are spent through direct procurement which means
such amount of money is expensed in unsafe manner.

To see the share of each purchasing method the above table is illustrated below through
chart.

50,000,000.00
45,000,000.00
40,000,000.00
35,000,000.00
30,000,000.00
25,000,000.00 Goods
20,000,000.00
Works
15,000,000.00
Services
10,000,000.00
5,000,000.00
0.00
Open bidding Restricted Request for Direct
method bidding quotations procurement
method method method
Procurement Method

Chart 4.1 Amount of purchase in each procurement method

As it is indicated above in the chart 4.1, 45,000,000.00 birr have been used to purchase
goods and it covers the highest amount from the open biding method. On the other hand
serves takes the highest amount of expense by direct purchase method. This shows that
when the colleges purchase goods they uses open biding method on the other hand when
they purchases services they prefer to purchase from single source.

51
 4.3.1. Priority given to each procurement method
Form table 4.5; one can be easily to realize and consider that open bidding and direct
procurement method takes equal value for procurement selection method which is
30.00%. However, (14) 23.33% of the respondents assume that giving priority for
restricted beading method is gainful for the effective procurement process even though
(10) 16.67% of them agree with the first choice of proforma method.

Table 4.5 priority given for each procurement method

procurement method which mostly in the respondents institution apply and gives
priority

No Factors frequent Percentage

18 30.00%
1 Open bidding method

14 23.33%
2 Restricted bidding method
10 16.67%
Request for quotations
3
method
18 30.00%
4 Direct procurement method

Total 60 100.00%

Source Questioner

According to the procurement directive 3/2002, direct procurement is a least preferred

means of procurement method and such method should not be used unless clear and
concrete justification are presented. Moreover, according to the procurement officers,
most of the time, as the senior manager, delegated individual from BoFED and
AACAPPA, assume that direct procurement is exposed to corruption and they do not
allow using such method unless critical situation happen. The procurement support team
leaders also said that the departments are not allowed using direct procurement method

52
normally. However, the colleges are using direct procurement method with enormous
amount next to open bidding. As well, some purchases which are processed through open
bidding are not really bid. Infrequently, only one or two bidders are submitting their offer
and the purchasing process are going on with these bidders. This is thus, according to
procurement support team leaders, the market situation enforces the department to use
direct procurement. To reconcile the two cases, the procurement support team leader‟s
advice to use official contract with those monopoly supplier to avoid the corruption case
and have fair communication with the supplier.

According to the above facts and researcher observation, discouraging to use direct
procurement on the proclamation and procurement manual does not hinder the
procurement staffs using it. This is because the market situation is exposed to monopoly
character and limited numbers of suppliers are involved in specific sector. Thus,
discouraging direct procurement on the manual and proclamation need to revise
according to the market situation and preventing the method from corruption. As it is
tried to illustrate on chapter two, making a deal with single supplier or multiple supplier
might be the better solution for direct procurement. It is known that the law developed
direct procurement is highly exposed to corruption though not convincing in practical
process.

According to the procurement support team leaders referring the procurement manual,
request for pro forma method is used to purchase those items which are not being in the
procurement plan and part of item which are not successfully bought through open
bidding. For instance, from the listed material, the bid winner may not be able to supply
some of them or may supply shoddy material if this is so, announcing the bid for this
small item may not be feasible and RQF may be used to fill the gap.

According to the Addis Ababa city administration procurement manual, the process of
RQF is announced on the public board to make the process more transparent and any
legal suppliers who are willing to join the competition are permitted to offer its quote.

53
Both the procurement support team leaders and procurement officers replied that there is
no significant internal problem related with this procedure. However, most suppliers are
not willing to make a deal with government as the contract amount is minor. As they win
the competition, their payment may involve withholding tax, value added tax, their
financial structure may expose to government. Most of the time the specification practice
for request for pro forma is unfortunate. This makes the offer from supplier differ in
quality and unfair personal decision is concluded.

The Colleges are not yet used two stage bidding for the last nine months for the year of
2009 E.C. It is known that each of the three methods have their own advantage
comparing with other methods. According to the procurement support team leaders of the
colleges, such situation happens that the requested requisitions are not favorable to
administer through the three types of methods.

It is possible to understand that the amount of expenditure through open bidding is

increase at an increasing rate and substantial amount of money are spent through open
bidding.

As per the procurement support team leaders of the colleges referring the
government principle, it is planning to make most purchase through open bidding. The
main reason with this principle is avoidance of rent seeking activity from the government
procedure. The team leaders agrees that open bidding is the first and foremost
procurement method help to eradicate the rent seeking activities from procurement
department.

It is assumed that open bidding achieve the avoidance of rent seeking activity.
Unfortunately, as per the previous discussion getting best value of money through open
bidding is difficult. Besides, the lengthy process, and shoddy material makes the
college‟s public service challenging and getting best value of money will not be achieved
in the near future.

54
 4.3.2. Challenges to select procurement method.
Firstly, some common items are purchased through more than one purchasing method
which is a possible result of deviating from the procurement plan. For example cleaning
material should not be purchased through direct procurement as it is used for routine
case. Once it is purchased through open bidding, purchasing through direct procurement
for the second time within the same year may not give sound. As per the procurement
support team leaders, such mater is happen because of wrong forecasting by the user
department.

Secondly, those critical items for the colleges are purchased through more than one
procurement method. Besides, even for the direct purchase, there is no special agreement
with the supplier to get special advantage.

As per the purchasing officers response, it occurs because of the cost of the purchased
item with the procurement manual. As the price of the material is under direct purchase,
they will process through direct purchase otherwise, it would process through bidding
method.

Thirdly, some of the challenges are under the control of the colleges. For instance, the
purchasing staff should get the required knowledge of negotiation skill and the right level
of negotiation power related with the right responsibility. Moreover, the management
should try to stick with the procurement plan i.e. not to approve spontaneous purchase
unless it is very critical to the colleges. The purchaser also should properly and elegantly
specify the request for pro forma method not to have very unlike quote.

Thus, it is possible to understand that procuring the same items with two or more
procurement method is wastage of resource and artificial burden for the staff. Strategic
and convenient items are purchased with the same method and this makes not to get the
unique advantage for the strategic items. Authorizing the procurement department for
the right negotiation, respecting the procurement plan and proper specification help the

55
department to work smoothly and not be passive for each challenge. As per the
procurement officers, most of the suppliers are present there complain emotionally for
the senior manager without following the right complain procedure. Such enactment will
have an indirect impact of the department staff as the senior manager may suspect there
is misconduct. This is because such movement would not be forward to proper inspection
and find out rather leads to gossip.

The procurement support team leaders also agree with such wrong complaining way and
its consequence. They expects that such wrong enactments happen mainly by two
reasons,

 Even though there is a complaint procedure manual developed by PPA,

most supplier are not willing to enact as per the manual with the two causes.
Firstly, the manual is too complicated and having may procedure to present
their issue. As per the researcher observation to the manual, it is too
technical and may not be understood by the supplier. The second possible
opinion by procurement support team leaders is that the manual is developed
in English Version. The colleges don‟t get the Amharic version and he
supposes that the Amharic version is not yet published. Hence, it is difficult
for uneducated (linguistic) person to understand the manual.

 Secondly, the misperception towards the purchasing profession and

purchaser makes the complaining procedure complicated. As per the
purchasing officers understanding, several people assume that the role of
purchaser is purchasing and bribe. This is thus, many bidder are not willing
to communicate scientifically when they lose the bid rather they thought the
winner is corrupted with the purchaser.

56
 4.4. Using of standard bid document and other sheets

According to the observation of the researcher and data taken from questioner and
presented below in the table 4.6 the proper usage of SBD (ICB and NCB) which
prepared and distributed by MoFED are not correctly used by the colleges, through the
researcher‟s observe that the bid document used by colleges are simply prepared by each
institution and doesn‟t contain all nine sections or three parts of the SBD for each type of
purchase even for Open biding and proforma purchase.

Table 4.6 priority given for each procurement method

No Factors Frequency In Percent

SBD (ICB and or NCB) for each type of purchase

1 21 35.00%
like Goods, Services, Books and Works

2 which is prepared by each institution 36 60.00%

3 Both 3 5.00%
Total 60 100.00%
Source Interview and FGD

4.5. Bid evaluation criteria

The evaluation criteria for goods, services, and works are found on section three of the
bidding documents. According to the procurement principles any procurement body
cannot evaluate bidders out of the evaluation criteria stated in the bidding document. For
goods like A4 paper and Notebooks the thickness or the gram of the items can be tested
its quality or specification by the Ethiopian Standard. But this is done only if it is
mentioned as a basic criterion in the bidding documents.

Otherwise the technical committee conducts evaluation by reviewing samples delivered

by the suppliers and they gave rank to the samples.

57
 Table 4.6: Bid evaluation criteria

How do you evaluate the bid documents of FAs and what are the basic
criteria’s?

No. of In
Respondents view
respondents Percent
Based on evaluation criteria by bid committee 36 60.00%

Based on evaluation criteria and sample test by

8 13.33%
technical teem
Both 16 26.67%
Total 60 100.00%
Source Interview and FGD

4.6. Purchasing Performance Measurement

This part tries to assess the performance of purchasing department with the most
common parameter, right quality, right time, right price, right place and right quantity. In
order to have clear and better data for the above parameter, the researcher use
questionnaire and the respective finding are presented below;

Thus, based on the questioners, the researcher tries to find out the performance of the
procurement department with the stated 5R‟s.

Table 4.7 performance of the procurement department in terms of purchasing with

the 5R’s

Strongly Strongly
No Items Agree Disagree Total
agree disagree
1 Right quality 3 15 34 8 60
2 Right time 9 18 27 6 60
3 Right price 7 12 30 11 60
4 Right source 3 10 40 7 60
5 Right quantity 3 14 31 12 60

58
 Percentage
Strongly Strongly
No Items Agree Disagree Total
agree disagree

1 Right quality 5.00% 25.00% 56.67% 13.33% 100.00%

2 Right time 15.00% 30.00% 45.00% 10.00% 100.00%

3 Right price 11.67% 20.00% 50.00% 18.33% 100.00%

4 Right source 5.00% 16.67% 66.67% 11.67% 100.00%

5 Right quantity 5.00% 23.33% 51.67% 20.00% 100.00%

Source questioners

According to the above table and chart it shows that 42 (70.00%) of the respondents
either disagree or strongly disagree with the purchasing department performance of
purchasing the right quality. This is about more than two third of the respondent unhappy
with the quality of the material purchased by procurement unit and thus, it suggest that
there is poor performance with the purchasing department. Having this in mind, the
colleges service is delivered to the public by using the procured material. Moreover, as
per the researcher observation, enormous amount of procured material are stored in the
colleges store.

The procurement support team leaders elaborate the situation as one of the main reasons
to accumulate many materials in the store is that the quality of the procured items does
not fit for the intended purpose. As well, one of the reasons for the interruption of
education or training to the trainees cause by resource shortage is a result of poor
education. They suggested that the main cause is the material are produced through open
bid and close follow up and inspection of quality are difficult.

59
Thus, whatever strategy, process and goal are set, the right material and economic use of
the resource is critical for the colleges to deliver educational and research as well as
community service to the public.

Thus, this problem has a direct impact for the college‟s performance and vision and
needs the right immediate solution.

For the case of procuring with the right time, the respondent replied that 25 (60.98%) of
respondents either disagree or strongly disagree with the purchase of the right time.
Conversely, 39.02 % respondents replied that the purchasing unit purchases the requested
item with the right time. Hence, it is also possible to realize that there is a difficulty with
regards to the time taken to procure the material. Besides, according to the procurement
support process team leaders, the main reason for the delay of purchasing is that most
suppliers engaged in to a contract of purchase with having minimum or no stock. After
the contract, they may need additional time to supply the material. Beside the extended
procurement work flow makes the time taken longer than it is expected.

Thus, it is possible to understand that the time taken to procure the material is too long.

Since each department achieve their goal with the supplied material, the delaines of
supplying the material makes them not to achieve as per their own time plan. Primarily,
the public are not getting the college‟s service on time. This might be also a big
challenge for the colleges which needs immediate solution.

Furthermore, the table shows that 31.71% of the respondents assume that the
procurement department purchases the requested material with the right price even
though 26.83% of respondents disagree or strongly disagree with the price enactment.
According to the procurement support process team leaders and the procurement officers,
since most of the purchases are made through open bidding, the question of fairness
regards to the price has been tackled even though some limitation are raised regarding
open bidding.

60
The response shows that the price spent for the material deserve most of the time. This
may be right as most respondent and the procurement officers assume that open bidding
is the factual procurement method to get the reasonable price as it is decided after fair
and intense competition. However, the right price does not guarantee the right quality.

The above table also shows that more than half of the respondents are indifferent for the
instance of right source which is 34 respondents. This may be either the respondents have
no idea about each source or lack of comparison expertise regarding the sources. As per
most of the respondents, who incline to the positive and negative, are from
procurement unit. In any case, 48.78% of respondent assume that the procurement unit
purchase from the right source and 17.07% assume that it is not purchased from the right
place. The team leaders and the procurement officers also assume that the procuring
process tries to address every range of supplier and suggest that it is fair in addressing the
right source. Thus, it is possible to understand that the department has no
significant problem regarding procuring the right source. Nonetheless, it needs further
investigation regarding the procurement of the right source.

Finally, the table shows that the procurement department has no significant problem
regarding the purchase of right quantity. 41.07% of the respondents replied that they are
either agreeing or strongly agree that the procurement unit purchase the requested
material with the right quantity. According to the procurement officers, even though
some specific item may not totally found with the current market and few suppliers are
not supplies as per the agreement, the department is purchasing the entire requested item.
Only 23.21% of respondents assume that the department is not purchase with the right
quantity. To understand the main factors that challenge the procurement department, the
following question has been asked the respondent. The researcher, based on his personal
observation, it is assume that the entire factor may affect the procurement department.
However, in order to find out the main challenges of the procurement department, the
respondents are permitted to select only one factor. Also, the respondents are allowed to
write their own factor if there is additional factor than the listed.

61
As per the questioner, to understand which challenges confront the department in highest
rate, the following response is disclosed.

Table 4.8 Foremost challenges by the procurement department

No of
No Factors percentage
respondents

1 Suppliers Problem 4 2.65%

2 Bureaucratic (failur of the directives of procurment) 26 17.22%
3 Work load on Purchasers 33 21.85%
4 Shortage of purchasing Staff 41 27.15%
5 purchasing Staff Lack of Motivation 21 13.91%
6 Budget Problem 14 9.27%
7 fear to take risk 12 7.95%

On the above table the respondent‟s select more than one choice. Based on the above
table, it is possible to realize that Shortage of purchasing Staff takes the major factor that
challenges the department. Almost all respondents did not write their own additional
factor. However, most of them give additional comment that all factors challenge the
department. Both the procurement support team leaders and the procurement officers
agree that the Shortage of purchasing Staff is the most challenging factor for the
department. The team leaders replied that as the department is exposed to rent seeking
activity, the senior manager believes that such rent seeking activity tackle by setting
rigged rule and involvement of many decision maker through the procuring process.
Besides, he assumes that the staffs are creative because of the adopted bureaucratic
activity. The workload on the staff is the second major challenges for the department.

The procurement officers believe that the cost (resource) spent for hiring one additional
staff is immaterial compare to the cost (resource) spent for the new comer with the

62
 current circumstance. Thus, hiring additional procurement staff makes the department
workflow more efficient.

Thus, the department needs additional reform, with the involvement of both the senior
manager and procurement staff to avoid the bureaucratic work follow and to make the
staff more creative. Otherwise the workflow of other department and the colleges may
not be efficient as it is expected. Although hiring additional staff brought an absolute
negative impact (salary, insurance, pension…) for the colleges, it has an aggregate
positive impact for the colleges through tackling the challenge happen on the
procurement staff through workload.

4.7. Contract Management

It is common that the very aim of purchasing contract is to ensure that stated terms and
condition are provided to the required standard, within the agreed time and achieve value
for the paid money. It is also expected that majority of the total budget of the colleges are
spent through procurement.

To understand the intensity contract management, the respondent rate the performance of
contract management as follows

Table 4.9 the purchasing contract management performance

accomplishment of contract by each

Rate Percentage
supplier

Unsatisfactory 21 70.45
Marginal 8 24.44
Satisfactory 7 4.54
Very good 5 0
Outstanding 0 0

63
From the above table, it is possible to realize that the purchasing contract management is
deprived. 70.45 % of the respondent replied that the contract management is below
satisfactory.

The delivery of goods and services as well as works is no on time and the payment to the
suppliers is not conduct on time.

This implies that each College are not certain of getting the procured items as per
standard within agreed period, best value of money and the like. According to the
procurement support team leaders, most of the time, when dispute happen, it is solved
through utmost good faith. The colleges are not confident to sue the supplier and the
supplier also is not willing to collide with government. Furthermore, according to his
experience and expectation, the late accomplishment of road construction, building
construction, poor quality of government property and the like is because of lack of
solid and clear contract management. Besides, he said that the Law department is not
well organized to manage each procurement contract management.

As the procurement unit spent significant portion of the college‟s budget, poor
contract management means wastage of significant portion of the college‟s budget. As
well, poor specification creates a loophole for the vendor to supply shoddy material. The
ineffective negotiation also makes the college‟s procurement unit not to get best value of
money. Thus, the three constraint should be re assessed and design in a way that the
procurement department to become more powerful than the supplier.

64
 4.8. Professionalism and Procurement

The research tries to analyze the professional of the employee, especially the
procurement departments. The college‟s procurement department has 48 staff in
procurement departments. Previously, as per the procurement officers, the colleges
assume and execute that procurement can be done by any of the staff. Through the fiscal
year time, such activity was performed by committee. Currently, the colleges have the
shortage of qualified staff.

It is possible to realize that the departments are not equipped with the right qualified
staff. More than half of the employees are not qualified in procurement and suppliers
management field of study.

65
 4.9. The Procurement Work Flow

Table 4.10 the purchasing flow and time tacking

Duration of procurement task

Min. Max.
No Procurement task Time
day day
1 Filing of purchase request 1-4 weeks 7 30
2 Approval of the purchase request 1-10 days 1 10
3 budget approval 1-15 days 1 15
4 selecting of procurement method 1-10 days 1 10
5 Recording of purchase request 1 days 1 1
6 Preparation of SBD (bid document) 1-4 weeks 7 30
7 Advertising of the bid 1 week 7 7
8 distribution of the bid document 10-15 days 10 15
9 Opening of bid 1 Daye 1 1
10 preparation of bid opening minutes 1 week 7 7
11 technical evaluation 2-4 weeks 14 30
12 financial evaluation 2-4 weeks 14 30
13 Approval of the bid evaluation report 1-2 weeks 7 15
14 announcing of bid results to each candidate 1-2 weeks 7 15
15 preparation of PO (purchase order) 1-2 weeks 7 15
16 signing of contract 1-3 weeks 7 21
99 252
Total days

Source: - questioners and Interview

The above table shows that the minimum time to accomplish open bidding process it
tacks 99 days. On the other hand with sophisticated problems and lack of proper

66
management it takes more than 252 days.

30

25

20

15

10

0
Filing of purchase request
Approval of the purchase request
budget approval
selecting of procurement method
Recording of purchase request
Preparation of SBD (bid document)
Advertising of the bid

Min. day
distribution of the bid document

preparation of bid opening minutes

Opening of bid

technical evaluation
financial evaluation
Approval of the bid evaluation report
announcing of bid results to each candidate
preparation of PO (purchase order)
Max. day

signing of contract

Chart 4.2 5Rs and their applicability

It is understood that the commonly the procurement work flow starts from the point of
user need arousal up to receiving to the requested material. According to the procurement
support process team leaders and procurement officers, the following chat show the
procurement work flow at each college. From the above procuring process (stage) and
discussion with the procurement officers and the team leaders, the researcher realizes
that the procuring steps have key limitation. Firstly, the process is too extended that
cannot be finalized within short period of time. Thus, such process may have an effect on

67
the purchase of the right time. Besides, according to the procurement officers response,
the suppliers are always complaining on the time taken to purchase (finalize) the
requested items. This is because the price inflation, hard currency shortage, stock out
case and the like.

Secondly, since many other decision makers are involved through the purchasing
process, the profession is assumed as clerical. The technical committee, the financial
committee and the bid approval unit has better power in the process rather than the
purchasing unit. Besides, the majorities of the personnel are from non-procurement
discipline and engaged in other department, like accounting, management, engineering
and the like; this makes their decision subject to their profession rather than procurement.
The competing parameters are highly depended on the bidding document. There is
no experience of competing with past experience, reputation of the vendor and the like.

Thirdly, for the wrong purchased items, it is difficult to identify who made the wrong
decision and this makes the remedial procedure to complicate. There is a possibility for
the supplier to communicate and get its major inadequacy.

Fourthly, the procurement step involves a number of committee which may not be seen
in other department. Commonly, there are there committees like technical committee,
financial committee, quality inspection committee. Likewise, these committee members
have primary responsibly of their job, and they may not be available for purchasing
process as they are requested.

Thus, the workflow makes the procurement process too long and complicated. With this
work flow it might not possible to get the right quality of material with the right time. It
may also lead to wastage of resource and obstacle to get best value of money. Thus, it
needs a reform with the involvement of senior manager and the procurement department.

68
 4.10. Ethics in Public Procurement

Table 4.11 Knowledge about the procurement directives

Knowledge about Public procurement

No procurement task excellent good medium No Total
1 4 7 27 3 41
Information about public
procurement
2 3 7 30 1 41
Information about public
procurement directives
3 2 5 21 13 41
Information about public
procurement principles
4 3 11 18 9 41
Information about
procurement Ethics

According to the procurement team leaders and procurement officers, the colleges have
no any Code of ethics. Even they do not have any idea regarding the public procurement
directives and proclamation standards and the procurement staff generally knows about
the ethical standards which is distributed to all organizations under the City
administration.

As it is stated previously, procurement is exposed to rent seeking activity, developing

Ethical Standard and enact according to it helps the department significantly. According
to the researcher observation, the code of ethics may not develop in the near future at the
colleges.

69
 4.11. The knowledge of User departments about Public
Procurement

Table 4.12 Knowledge about the procurement directives

The altitude of User departments towards the Procurement Unit

Strongly
No Strongly agree Agree Disagree Total
disagree
Does the procurement staffs
1 have connection with 2 5 3 10
suppliers

Do you think that is their

2 6 4 0 10
corruption in your college

Source: - questioners and Interview

Most of the respondent from the procurement department replied that other stakeholder,
the staff at each college‟s different departments, are internal customers of the colleges.
According to the procurement support team leaders, even though the department is
highly venerable for corruption.

Even the team leaders recognize that most of the staffs assume they may be in jail at any
time. Moreover, as the government is busy in eradication of rent seeker, the team leaders
believes that the most significant issue, the value of money, time, quality, and
professionals are overlooked. Also, the professional‟s psychology is not preserved
properly. In the future, both the colleges and the City Administration are planning to
purchase almost all the purchase through open biding method to avoid the rent seeking
activities but the plan is not including the adverse effect and related issue.

Generally, both the team leaders and the officers accept that the department is highly
exposed to corruption and agree with the government activity. But they think that the
adverse effect should be studied and considered.

70
Based on the above data, it is possible to realize that the procurement department is
highly exposed to rent seeking activity. The energy spent to avoid rent seeking activity is
not compatible and achieve its objective. As most purchase is managed through open
bidding, the next step should be how to make the open bidding process more efficient
and effective. Furthermore, the manager is better motivate the staff to become creative
and finding another method which has fewer loopholes for corruption and higher
advantage to makes the process effective. Unwillingness to stay with the job may
brought another negative effect like making bribe and abdicate, loss of experienced
purchaser, less participation with the professional activity and the like.

25

20

Does the procurment

15 staffs have connection
with suppliers
10 Do you think that is thair
coruption in ypur college
5

0
Strongly Agree Disagree Strongly
agree disagree

Chart 4.3 Procurement staffs response about ethics

71
 4.12. Procurement Reporting

According to Addis Ababa City Administration of Finance and Economic Development

Public Procurement and Property Administration Directives (3/2002) procurement report
should be prepared and submitted each month and quarter to bureau of finance and
economic development.

However, according to the researcher observation the selected governmental TVET

colleges of Addis Ababa City Administration procurement units are not reporting the
required information to on time bureau of finance and economic development.

Moreover, there was no penalty taken by the bureau of finance and economic
development to make change the performance of the colleges.

72
 CHAPTER FIVE

5. CONCLUSIONS AND RECOMMENDATIONS

5.1. Introduction

This chapter delivers summarizing of detailed conclusions with the possible

recommendations. Conclusions are prepared based on the results from the data
presentation and analysis. Finally, the researcher will put recommendations on key
findings of the public procurement system on selected governmental colleges for future
researchers and for the colleges also.

5.2. Summary

The aim of this research was to assess the procurement management systems of
selected governmental colleges of Addis Ababa Addis Ababa city administration. The
selected colleges were assessed by the researcher from different aspects. Most of the
respondents who were targeted by the researcher as a source of information for this
research gave information.

After collecting quantitative and qualitative data presentation and analysis, discussion
of results to address the basic question, the following are summary of findings of the
research.

The public colleges have no any procurement strategy and long term policy like made
or buy decisions. This leads the users departments not to achieve the objective each
departments and the colleges.

Almost all of the staffs in procurement departments and leaders of each college doesn‟t
attain any training related with public procurement. There is no also need assessment of
training conducted by each college.

73
From the listed six types of procurement methods which are allowed by the city
administration council the governmental colleges use four of them which are open
bidding, restricted bidding, request for quotation of by posting on the board and direct
procurement.

In principle and theoretically each college believes that all purchases should be
purchased using open bid. But the researcher found that the colleges don‟t apply these.

The procurement process starting from need assessment up to contract administration

took several days due to several problems.

The Colleges doesn‟t use the SBD prepared and distributed by MoFED properly. The
colleges don‟t use annual plans which they plan before the fiscal year begins.

74
 5.3. Conclusions

Based on the results and data presentation of the study obtained the following
conclusions are given.

In many cases, Addis Ababa city administration PPPDA is not efficiently serving the
governmental organizations under the city administration.

The colleges haven‟t standard specification to each item which they purchase by
advertising and inviting suppliers.

The percentage covered by open biding method is fewer than the limit set by the city
administration these show that the colleges are restricting other potential suppliers not
to participate in the bid.

The relationship of procurement departments with user departments is not strong like
they didn‟t discuss each other to prepare annual procurement plan; technical evaluation
criteria in the bid documents before distributing to the potential suppliers.

From the staffs in procurement departments, experts and leaders of each college don‟t
attain any training related with public procurement and property administration these
leads the staffs to do their job without enough skill and knowledge. There is no also
need assessment about public procurement training conducted by each college.

From the staffs in the procurement departments most of them are young and have no
enough expires. There is also stuff turn over due to moral problem and lack of
satisfaction.

From the listed six types of procurement methods which are allowed by the city
administration council the governmental colleges use four of them which are open
bidding, restricted bidding, request for quotation of by posting on the board and direct
procurement.

75
Mostly direct procurement is conducted due to rush orders and quick requests of goods
and services like maintenance materials, transportation service and small works these
implies that there is a problem on planning and also there is a problem on stock
management.

The time consumption of open biding procurement process which starts from need
assessment and collection from user departments, selecting procurement method, bid
advertisement, bid opening, bid evaluation, announcement of result and contract
agreement took several days up to 250 days and above due to technical evaluation,
financial evaluation shortage of budget and other several problems.

The Colleges doesn‟t use the SBD which have nine section prepared and distributed by
MoFED properly. But most of the colleges use their own bid document prepared by
themselves.

The colleges don‟t use annual plans for checking their performance and to solve
problem related to procurement plans which they plan before the fiscal year begins. But
they prepared for documentation purpose and to send to the bureau of finance and
economic development.

76
 5.4. Recommendations

Based on the findings of this study the following recommendations are suggested by the
researcher.

The management of each college should be responsive and flexible towards the user
departments and Procurement departments.

These include employing of the skilled and well trained as well as experienced staff, to
control the unplanned purchasing and rush orders and quick requests.

The authority senior manager should protect procurement staffs from working out of
the proclamation, directives and manuals of procurement.

Each college‟s procurement department should have to work with user departments and
external customers. They should also communicate and discus with user department
about the annual plan of the procurement unit.

Each college should have to control the committees assigned to evaluate the bid
technically and financially which makes the purchase to be delay. The selection of
technical committees should have to be based on their specialty.

The procurement departments should collect needs and the quantity of each need and
the time when will be it required. These might be help inventory and stock management
and proper usage of supplies without interruption of supply.

Involve the society, students and other user departments and suppliers who participate
in the procurement activitis and decisions on the related maters

The procurement departments should use SBD for each type purchase for goods, works,
books, services and properly use the documents. The department should also use SBD
for small purchases like proforma purchase.

77
To achieve the right quantity and price, however, the procurement departments‟
performance is poor in the area of purchasing with the right quality and time. This two
measuring factor shows that there is wastage of resource and late achievement of the
goal. Thus, the procurement departments should attempt to perform well and improve
in the extent of purchases the right quality and at the time.

The existing oversight and control functions are still not capable of ensuring a high
level of integrity and accountability in procurement related issues. Therefore, there is a
great need to develop the capacity at the institutional and individual level to give higher
priority to these discipline by acknowledging the strategic importance of
procurement.

The Agency should work on procuring more common user items like uniforms sanitary
materials stationary materials and maintenance materials for the future

78
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Arrowsmith, S., The Community‟s Legal Framework on Public Procurement; the Way
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81
 Appendices
Appendix I: Questioners for procurement staff member

Dear Sir/Madame

This questionnaire is prepared to gather data necessary to conduct research on the

Effectiveness of Procurement System Management in Selected Governmental Colleges of
Addis Ababa City Administration. As a staff member of the College, I strongly believe
that you are one of the best sources in providing reliable data for this research. Response to
each item of the questioner

Hence, I kindly request your cooperation to fill out this questionnaire.

Thank you

Please: Put a √ mark in the box formulated against the alternative which you think
is your best choice.

(Procurement employees)

Section I Demographic Data

1. Sex
Male Female

2. Department ____________________________________________

3. Title which you are holding ____________________________________________

Page | 1
Level of education

Diploma

First degree (BA/BSC)

Second degree (MSC/MBA)

Others (Please Specify)_______________________________

Service years in the institution?

Below 5 years

5-10 years

Above 10 years

Section II Existing practice of procurement system

1. What is the current existing practice of procurement system in your College?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
2. Do you have information about all the governmental procurement systems?

Yes No

If “Yes” state

3. What kind of procurement method does mostly your institution apply?

Open bidding method

Restricted bidding method

Direct procurement method

Two-stage bidding method

Request for quotations method

Direct procurement method

Page | 2
4. What is mainly considered for the selection of procurement method?

5. How is the background procurement practice of the institution?

Excellent Good Fair Bad
6. Have you taken any training about public procurement before?
Yes No
If “Yes” state

7. Do departments fully utilize on their Budget according to their specific request for
budgeting (procurement of goods and services)?
Yes No
If “Yes” state

8. Does the finance department procurement department assists on the budgeting,

payment and balancing of each department?
Yes No I am not sure

Page | 3
 Section III
Quality controlling practice of purchased goods.
1. Do you have information about the quality of each purchased goods?
Yes No

2. Does Departments request using detailed specification for their purchased

request?
Yes No
3. Does Departments relieve all purchased goods by checking the specification of
the purchased goods and their request?
Yes No
4. How frequently do the Departments request purchase of goods and services with
in a fiscal year?

Monthly
Quarterly
Semi-annually
Annually
Others (Please Specify) __________________________________
5. Is there any policy concerning the procurement of capital goods in your
institution?
Yes No

If “Yes” state

6. The highest amount of annual expenditure of the institute?

Goods

Services

Capital goods

Works (construction)

Others_________________________

7. What amount of percentage of annual expenditure was invested by Open biding

procurement system?

<20% 21-40% 41-60% 61-80 % >80%

Page | 4
Section IV

Reporting Practice of the Institution

1. How frequent your section reports the procurement performance of your

institution?

Monthly
Quarterly
Semi-annually
Annually
Others (Please Specify) __________________________________
2. For whom do you report the utilization of the internal revenue budget?

Page | 5
 Appendix II: Checklist for procurement staff member and College
leaders

ይህ ቼክሉስት ሇግዥ ባሇሙያዎች እና ሇተቋሙ ሃሊፊዎች ቀርቦ መሌስ

የሚሰጥበት ሲሆን ዋና አሊማው በአዲስ አባባ ከተማ አስተዳደር በሦስት የቴክኒክና ሙያ ኮሉጆች
ውስጥ የግዥ አስተዳደር ስራ ያሇበትን ደረጃ በተመሇከተ መረጃ በመሰበሰብ በመመርመርና
መተንተን የግዥ አስተዳደር ያሇበትን ችግር በመሇየትና መፍተሄ ሀሳብ ሇመጠቆም ነው፡፡

ስሇሆነም በዚህ ቼክሉስት ሇቀረበት ጥያቄዎች እርስዎ የሚሰጡዋቸው እና የሚያቀርቧቸው

ሰነዶችና መረጃዎች ጥናቱን ተዓማኒነት ያሇው ያደርጋዋሌ፡፡ በተጨማሪም ጥናቱ በቴክኒክና
ሙያ ስሌጠና ኮላጅ አመራር እና ኃሊፊዎችና ፖሉሲ አውጭዎች የግዥ መመሪያን ሇማሻሻሌ
ሇሚደረጉት ጥረት የበኩለን እገዛ ያደረጋሌ፡፡

ስሇሆነም ትዕዛዙን በጥንቃቄ አንብበው ሇሁለም ጥያቄዎች መሌስ በመመሇስ እና ሰነዶችን

በማቅረብ እና ገሇጻ በማድረግ ሇሚያደርጉሌኝ ትብብር በቅድሚያ አመሰግናሇሁ፡፡

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 ቼክሉስት

ክፍሌ ሁሇት፤ የግዥ እቅድ እና አመራር

1. ዓመታዊ የግ» ዕቅድ ተዘጋጃሌ ?--------------------------------------------------------------

የተዘጋጀበት ሁኔታ (Format) ምን ይመስሊሌ?------------------------------------------------------------------
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2. ጨረታ በአየር ሊይ እንዲውሌ በማን ፀድቋሌ -------------------------------------------------------------------
------------------------------------ የጸደቀበት ቀን -------------------------------------------------------------------
1ኛ ዙር ጨረታ -------------------------------------------------------------------------------------------------------
2ኛ ዙር ጨረታ -------------------------------------------------------------------------------------------------------
3. የጨረታ ማስታወቂያ ይዘቱ ምን ይመስሊሌ?---------------------------------------------------------------------
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4. ጨረታ መቼ ወጣ (የግሌጽ ጨረታ ማስታወቂያ) ------------------------------------------------------
 1ኛ ዙር ጨረታ ---------------------------------------------------------------------------------------------
የገንዘብ መጠን ----------------------------------------------------------
 2ኛ ዙር ጨረታ ---------------------------------------------------------------------------------------------
የገንዘብ መጠን ----------------------------------------------------------
5. በመንግስት እንዲጠቀሙት የተሰራጨው የመደበኛ የጨረታ ሰነድ ትጠቀማሊቹ ወይ?------------------
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አጠቃቀሙስ?-----------------------------------------------------------------------------------------------------------
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6. የቴክኒክና የፋይናንሻሌ መወዳደሪያ የጨረታ ሰነዶች በምን መሌኩ እንዲቀርቡ ይደረጋሌ?----------
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7. ጨረታው የተከፈተበት ቀን እና የመክፈቻ ቃሇ ጉባኤ? ------------------------------------------------------
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በጨረታ መክፈቻው ቀን ሁለም የጨረታ ኮሚቴ አባሊት ተገኝተዋሌ ወይ? -----------------------------
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8. የጨረታ ኮሚቴዎችና ተጫራቾች ፖስታ ሳይከፈት ፖስታው ሊይ እንዲፈርሙ ይደረጋሌ ወይ? ---
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9. ዝርዝር የጨረታ ግምገማው /አሸናፊውን የመሇየት ሥራ በማን ይሰራሌ?
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10. ሇቴክኒክ ኮሚቴ ሰነዶችና ናሙናዎች የተሊሇፉበት ቀን?------------------------------------------------------
ቴክኒክ ኮሚቴው ምዘናውን ሇመስራት የፈጀበት ግዜ ---------------------------------------------------------
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ቴክኒክ ኮሚቴው በምዘናው ወቀት ያጋጠሙ ችግሮች ---------------------------------------------------------
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11. ጨረታው ግምገማ ውጤት በማን ይፀድቃሌ? ቴክኒካሌ ------------------------------------------------------
ፋይናንሻሌ -------------------------------------------------------------------------------------------------------------
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12. ተጫራቾች አሸናፊና ተሸናፊ ስሇመሆናቸው በደብዳቤ ይገሇጻሌ ወይ? ------------------------------------
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13. አሁን ሥራ ሊይ የዋሇው አዲሱ የግ» አዋጅ የግ» አፈጻጸም መመሪያ ቁጥር 3/2002 የመደበኛ
የጨረታ ሰነድ የግ» ማንዋሌ በግ» ሥራ ክፍለ ተግባራዊ እየተደረገ ነው?-----------------------------
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14. ግ» የሚፈፀመው በቀረበው Specification መሠረት ነው ወይ?---------------------------------------------
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------------------------------------------------------------------
15. Specification (የፍሊጎት ዝርዝር መግሇጫ) በማን ይዘጋጃሌ? ----------------------------------------------
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16. የ2008 በጀት አመት ግ» የሚፈፀመው በየትኛው የተፈቀደ የግ» ዘዴ እንደሆነ ቢገሇጽ ?
A. ግሌጽ ጨረታበዕቅድ ብር ----------------------------- አፈጻጸም ብር -----------------------------
B. ውስን ጨረታ ዕቅድ ብር ----------------------------- አፈጻጸም ብር -----------------------------
C. በዋጋ ማቅረቢያ ዕቅድ ብር ----------------------------- አፈጻጸም ብር -----------------------------
D. ከአንድ አቅራቢ ዕቅድ ብር ----------------------------- አፈጻጸም ብር -----------------------------

17. በግሌጽ ጨረታ ሇሚፈፀሙ ግ» ዎች የዕቃዎቹ ናሙና እንዲቀርብ ይደረጋሌ?--------------------------

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18. ናሙናዎች የት ይቀመጣለ በማን ሃሊፊነት ይያዛለ?-----------------------------------------------------------
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19. ከአንድ አቅራቢ ሇሚፈፀም ግ» ዕቃው ከአንድ አቅራቢ ብቻ የሚገኝ መሆኑን ወይም ያንኑ
የተወሰነ ዕቃ በሚመሇከት ሌዩ ፈቃድ ያሇ አንድ አቅራቢ ብቻ ስሇመሆኑ በቂ ማስረጃ እንዲቀርብ
ይደረጋሌ? --------------------------------------------------------------------------------------------------------------
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20. ጨረታ አሸናፊ ከሆነው ድርጅት ወይም አቅራቢ ጋር በአግባቡና በደንቡ መሠረት ውሌ
ይፈጽማሌ? -------------------------------------------------------------------------------------------------------------

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 ------------------------------------------------------------- ውለ በማን ይፀድቃሌ? ------------------------------
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21. በማንኛዉም የግዥ ዘዴ ሇተከናወኑ ግዥዎች ሂሳብ የሚወራረደው አስፈሊጊ የሆኑ ደጋፊ ሰነዶች
ከጋዜጣ ጀምሮ ሰነዶች እየተያያዙ ነው ? ካሌሆነ ምክንያቱ ቢገሇፅ--------------------------------------
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22. የቴክኒክ ኮሚቴ በማን ይሰየማለ ።---------------------------------------------------------------------------------
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23. የቴክኒክ ኮሚቴ መረጣ የሚያደርገው እንዴት ነው ------------------------------------------------------------
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24. ያጋጠሙ ችግሮች------------------------------------------------------------------------------------------------------
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25. የግሌጽ ጨረታ ድርሻ በብር ----------------------------------------------- በመቶኛ ----------------------------
26. አጠቃሊይ የግዥ አፈጻጸም በብር ----------------------------------------------- በመቶኛ------------------------
አጠቃሊይ የግዥ እቅድ በብር ----------------------------------------------- በእቅዱ መሰረት ግዥው
የሚጠናቀቅበት ወቅት 1. እቃ --------------------------------------------------
2. ግንባታ ---------------------------------------------------
3. አገሌግልት -------------------------------------------------

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 Appendix III: Questioners for College leaders

ይህ መጠይቅ ሇተቋማት መሪዎች (ኃሊፊዎች) የሚሞሊ ሲሆን ዋና አሊማው በአዲስ

አባባ ከተማ አስተዳደር በሦስት የቴክኒክና ሙያ ኮሉጆች ውስጥ የግዥ አስተዳደር ስራ ያሇበትን
ደረጃ በተመሇከተ መረጃ በመሰበሰብ በመመርመርና መተንተን የግዥ አስተዳደር ያሇበትን ችግር
በመሇየትና መፍተሄ ሀሳብ ሇመጠቆም ነው፡፡

ስሇሆነም በዚህ መጠይቅ ሇቀረበት ጥያቄዎች እርስዎ የሚሰጡዋቸው ትክክሇኛ መሌሶች ጥናቱን
ተዓማኒነት ያሇው ያደርጋዋሌ፡፡ በተጨማሪም ጥናቱ በቴክኒክና ሙያ ስሌጠና ኮላጅ አመራር እና
ኃሊፊዎችና ፖሉሲ አውጭዎች የግዥ መመሪያን ሇማሻሻሌ ሇሚደረጉት ጥረት የበኩለን እገዛ
ያደረጋሌ፡፡

ስሇሆነም ትዕዛዙን በጥንቃቄ አንብበው ሁለንም ጥያቄዎች በመመሇስ ሇሚያደርጉሌኝ ትብብር

በቅድሚያ አመሰግናሇሁ፡፡

ማሳሰቢያ፤

ሥም መፃፍ አያስፈሌግም

ሇቀረቡት ጥያቄዎች በሳጥኖች ውስጥ የ ’’X’’ ምሌክት በማድረግና ምርጫ ሇላሊቸው ጥያቄዎች
መሌስ በመፃፍ ይመሌሱ፡፡

ክፍሌ አንድ፤ የመሊሾች የግሌ መረጃ

1. የማሰሌጠኛ ተቋም ሥም
2. ፆታ ሴት ወንድ
3. ዕድሜ ከ18-20 ከ21-25 ከ26-30 ከ31-35
ከ36-40 ከ14-45 ከ46በሊይ

4. የሰሇጠኑበት የትምህርት የሙያ መስክ ዓይነት

5. የሰሇጠኑበት የትምህርት ደረጃ እየተከታተሌክ/ሽ ያሇኸው/ሽው ፕሮግራም ደረጃ አንድ

ሀ) ደረጃ ሁሇት ሇ) ደረጃ ሦስት ሐ) ደረጃ አራት

መ) የመጀመሪያ ዲግሪ ሐ) ሁሇተኛ ዲግሪ

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ክፍሌ ሁሇት፤ ስሌጠናን በተመሇከተ

6. በመ/ቤትዎ ሇሚገኙ የግዥ ባሇሙያዎች ስሇ መንግስት ግዥ አፈጻጸም

ስሌጠና ሇመስጠት በአግባቡ የተዘረጋ ስርዓት አሇ?
አሇ የሇም
7. በተራ ቁጥር 6 መሌስዎ የሇም ከሆነ የግዥ ባሇሙያዎች የግዥ አፈጻጸም
ስሌጠና የሚያገኙበት መንገድ ቢገሌጹሌን?---------------------------------------------------
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8. በግዥ የስራ ክፍሌ የሚገኙ ባሇሙያዎች በፋይናንስና ኢኮኖሚ ሌማት ቢሮ
የተሰጠ የመንግስት ግዥ አፈጻጸም ስሌጠና ሊይ ተሳትፈው ያውቃለ?
አዎ የሇም
9. ፋይናንስና ኢኮኖሚ ሌማት ቢሮ ሇመ/ቤቶች የሚሰጠው የግዥ ስሌጠና በቂ
ነው ብሇው ያምናለ?
በጣም ከፍተኛ በሚባሌ ደረጃ ከፍተኛ በሚባሌ ደረጃ
በከፊሌ አሊውቅም
10. በተራ ቁጥር 9 በፋይናንስና ኢኮኖሚ ሌማት ቢሮ በተሰጠው የግዥ ስሌጠና
ሊይ በመ/ቤትዎ የሚገኙ የግዥ ባሇሙያዎች በመሳተፋቸው በመቤትዎ የግዥ
አፈጻጸም ሊይ ሇውጥ አሇ ብሇው ያምናለ?

አዎ የሇም

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ክፍሌ ሶስት፤ የግዥ ስርአትን እና ቅሬታ አፈታትን በተመሇከተ
11. ከቢሮ የሚመጡ መመሪያዎች፤ አዋጆች፤ ማኑዋልች፤ ሰርኩሊሮች እንዲሁም
በስሌጠና ወቅት የተገኙ ሰነዶችን ሇሰራተኞች እንዲደርሳቸው የማድረግ በመስሪያ
ቤትዎ ያሇ ሌምድ ምን ይመስሊሌ ?
እጅግ በጣም ጥሩነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም
12. የግዥ የስራ ክፍሇን የአሰራር ስርዓት የማጠናከር ሌምድዎ ምን ይመስሊሌ ?
እጅግ በጣም ጥሩነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም
13. የጨረታ ኮሚቴዎች በመ/ቤታችሁ ሇሚፈጸሙ ግዥዎችን በፍጥነት ውሳኔ
ከመስጠት አኳያ በምን ደረጃ ሊይ ይገኛሌ
በጣም ከፍተኛ በሚባሌ ደረጃ ከፍተኛ በሚባሌ ደረጃ
በመካከሇኛ ደረጃ ተመሳሳይ ነው
12.1. የግዥ ሂደቶች በተያዘሊቸው ጊዜ (ፕሮግራም) ውስጥ ተገምግመው
የሚያሌቁበት ሁኔታ ምን ይመስሊሌ ?
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ምንም ሇውጥ የሇውም
12.2. መስሪያ ቤታችሁ ግዥን በዕቅድ ከመምራት አንጻር ያሇበት ሁኔታ ምን
ይመስሊሌ?
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ምንም ሇውጥ የሇውም
12.3. መ/ቤታችሁ ሇግዥ ዘዴው በመንግስት ግዥና ንብረት
አስተዲደር የተዘጋጀውን መደበኛ የጨረታ ሰነዴ ከመጠቀም አንጻር
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ምንም ሇውጥ የሇውም
12.4. አቅራቢዎች ከመ/ቤቱ ግዥ አፈጻጸም ጋር በተገናኘ የሚያቀርቡት
አቤቱታ የሚቀንስበት ሁኔታ ምን ይመስሊሌ?
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ የሚባሌ አይደሇም

ስሇ መሌካም ትብብርዎ ከሌብ አመሰግናሇው፡፡

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 Appendices
Appendix IV: Interviews Questions for procurement staff member

Interviews Questions

Dear Sir/Madame

This questionnaire is prepared to gather data necessary to conduct research on the Effectiveness
of Procurement System Management in Selected Governmental Colleges of Addis Ababa City
Administration. As a staff member of the College, I strongly believe that you are one of the best
sources in providing reliable data for this research. Response to each item of the questioner

Hence, I kindly request your cooperation to respond for the following interview quieting for this
research.

Interviewees are summarized as follow.

1. What type of relationships do you have with your suppliers? Do you have supplier list?
Do you certify suppliers?
2. Does the agency have a process to identify key suppliers?
3. What tools, processes, and controls does the agency use to ensure effective oversight
of contractor performance?
4. Does your organization does frequent market assessment or market research?
5. Do you have a web based procurement system?
6. What measures do you take on your suppliers found guilty of wrongdoings? Do you
allow them to participate in other tenders?
7. What are the most frequent complaints from suppliers the board addressed so far?
8. What are different types of purchases do you have?
9. How do you classify among different types of purchases?
10. Which type of purchase is more critically important for the academic operation?
11. Which purchases consume more budgets?
12. What are the fundamental documents guiding your purchasing process?
13. What are the steps involved in the purchasing process?
14. Do you think any of the steps in the process are pointless at least some times?
15. Which of the FIVE RIGHTS of purchasing [right quality, right quantity, right price, right
time and right source] is/ are given more emphasis in your purchasing process?
16. Do you think the purchasing manual gives more emphasis to some of the FIVE R’S of
purchasing?
17. What are the criteria used in selecting suppliers?
18. What are the major items to be purchased and how are they distributed in terms of
value and volume?
 አዲስ አበባ ዩኒቨርሲቲ
የሥነ-ትምህርት እና ሥነ ባህሪ ጥናት ኮላጅ
የትምህርት እቅድና አመራር ዲፓርትመንት
ይህ መጠይቅ በግዥ ባሇሙያዎች የሚሞሊ ሲሆን ዋና አሊማው በአዲስ አባባ ከተማ

አስተዳደር በሦስት የቴክኒክና ሙያ ኮሉጆች ውስጥ የግዥ አስተዳደር ስራ ያሇበትን ደረጃ

በተመሇከተ መረጃ በመሰበሰብ በመመርመርና መተንተን የግዥ አስተዳደር ያሇበትን ችግር
በመሇየትና መፍተሄ ሀሳብ ሇመጠቆም ነው፡፡

ስሇሆነም በዚህ መጠይቅ ሇቀረበት ጥያቄዎች እርስዎ የሚሰጡዋቸው ትክክሇኛ መሌሶች ጥናቱን
ተዓማኒነት ያሇው ያደርጋዋሌ፡፡ በተጨማሪም ጥናቱ በቴክኒክና ሙያ ስሌጠና ኮላጅ አመራር እና
ኃሊፉዎችና ፖሉሲ አውጭዎች የግዥ መመሪያን ሇማሻሻሌ ሇሚደረጉት ጥረት የበኩለን እገዛ
ያደረጋሌ፡፡

ስሇሆነም ትዕዛዙን በጥንቃቄ አንብበው ሁለንም ጥያቄዎች በመመሇስ ሇሚያደርጉሌኝ ትብብር

በቅድሚያ አመሰግናሇሁ፡፡

ማሳሰቢያ፤

ሥም መፃፍ አያስፇሌግም

ሇቀረቡት ጥያቄዎች በሳጥኖች ውስጥ የ ’’X’’ ምሌክት በማድረግና ምርጫ ሇላሊቸው ጥያቄዎች
መሌስ በመፃፍ ይመሌሱ፡፡

ክፍሌ አንድ፤ የመሊሾች የግሌ መረጃ

1. የማሰሌጠኛ ተቋም ሥም
1. ፆታ ሴት ወንድ
2. ዕድሜ ከ18-20 ከ21-25 ከ26-30 ከ31-35
ከ36-40 ከ14-45 ከ46በሊይ
3. የሰሇጠኑበት የትምህርት የሙያ መስክ ዓይነት

4. የሰሇጠኑበት የትምህርት ደረጃ እየተከታተሌክ/ሽ ያሇኸው/ሽው ፕሮግራም ደረጃ አንድ

ሀ) ደረጃ ሁሇት ሇ) ደረጃ ሦስት ሐ) ደረጃ አራት

መ) የመጀመሪያ ዲግሪ ሐ) ሁሇተኛ ዲግሪ

ገ ጽ 1|7
 5. የጨረታ ስርዓት ግምገማ የሚወስደው ግዜ ከተቀመጠሇት ቀን አንጻር
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

6. የግዥ ሂደቶች በተያዘሊቸው ጊዛ ውስጥ ተገምግመው የሚያሌቁበት ሁኔታ

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

7. መስሪያ ቤታችሁ ግዥን በዕቅዴ ከመምራት አንጻር ያሇው ሁኔታ

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

8. መ/ቤታችሁ ሇእያንዲንደ የግዥ ዘዴ በመንግስት ግዥና ንብረት አስተዲደር

የተዘጋጀውን መደበኛ የጨረታ ሰነዴ ከመጠቀም አንጻር
እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

ክፍሌ ሁሇት፤ ስሌጠናን በተመሇከተ

9. በመ/ቤትዎ ሇሚገኙ የግዥ ባሇሙያዎች ስሌጠና ሇመስጠት በሚመሇከተው አካሌ

(በመ/ቤትዎ) በአግባቡ የተዘረጋ ስርዓት አሇ?
አሇ የሇም
10. በተራ ቁጥር 9 መሌስዎ የሇም ከሆነ ባሇሙያዎች የግዥ ስሌጠና
የሚያገኙትና የሚመረጡበትን መንገድ ቢገሌጹሌን?
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11. በመንግስት ግዥ አስተዳደር ዙሪያ የተሰጠ ስሌጠና ተሳትፇው ያውቃለ?
አዎ አሊውቅም
12. በተራ ቁጥር 11 መሌስዎ የሇም ከሆነ እስከ አሁን ድረስ የግዥ ስሌጠና
ያሊገኙበት ምክንያት?
ሇመስሪያ ቤትዎ አዲስ በመሆንዎ
ዕድሇን ሇሌልች የግዥ ባሇሞያዎች ስሇተሰጠ
ሇማይመሇከታቸው ባሇሙያዎች ስሇሚሰጥ
ሌልች ምክንያቶች ካሇ ይግሇጹ -------------------------------------------------------
ገ ጽ 2|7
ክፍሌ ሶስት፤ የግዥ ስርአትን እና ቅሬታ አፇታትን በተመሇከተ

13. የጨረታ ሰነድ ዝግጅት አቅምዎ በምን ደረጃ ሊይ ይገኛሌ?

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው
ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም
14. አቅራቢዎች ከመ/ቤቱ ግዥ አፇጻጸም ጋር በተገናኘ የሚያቀርቡት አቤቱታ አፇታት
ምን ይመስሊሌ?

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

15. መ/ቤትዎ የግዥ አፇጻጸም ችግሮችን በተመሇከተ በአቅራቢዎች ሊይ የሚቀርበው

የጥፊተኝነት ሪፖርት ያሇበት ደረጃ?

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

16. አቅራቢዎች በውሌ ስምምነት መሰረት እቃዎችን አገሌግልቶችንና ግንባታዎችን

የሚያቀርቡበት አፇጻጸም ምን ይመስሊሌ?

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

17. መ/ቤታችሁ የግዥ አፇጻጸም መመሪያውን ተከትሌ ግዥን እየፇጸመት ያሇው አሰራር
ምን ይመስሊሌ?

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ጥሩ በሚባሌ ደረጃ አይደሇም

18. በአሁኑ ወቅት በመ/ቤትዎ ያሇውን የግዥ አፈጻጸም ችግር በዘሇቄታዊ ሇመቅረፍ
የሚከተሇትያሊቸው አስተዋጾ ቢሮው የሚሰጠው የግዥ ስሌጠና

እጅግ በጣም ጥሩ ነው በጣም ጥሩ ነው

ጥሩ ነው ምንም ሇውጥ አያመጣም

19. በአሁኑ ወቅት በመ/ቤትዎ ያሇውን የግዥ አፈጻጸም ሇማሻሻሌ የግዥ አዋጅ፣ የግዥ
መመሪያ፣ የጨረታ ሰነድችንና የአሰራር ስርዓቶችን በማሻሻሌ አሇበት ብሇው ያምናለ?

አዎ አሊምንም

ገ ጽ 3|7
 ቼክሉስት

ክፍሌ ሁሇት፤ የግዥ እቅድ እና አመራር

1. ዓመታዊ የግ» ዕቅድ ተዘጋጃሌ ?--------------------------------------------------------------

የተዘጋጀበት ሁኔታ (Format) ምን ይመስሊሌ?------------------------------------------------------------------
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2. ጨረታ በአየር ሊይ እንዲውሌ በማን ፀድቋሌ -------------------------------------------------------------------
------------------------------------ የጸደቀበት ቀን -------------------------------------------------------------------
1ኛ ዙር ጨረታ -------------------------------------------------------------------------------------------------------
2ኛ ዙር ጨረታ -------------------------------------------------------------------------------------------------------
3. የጨረታ ማስታወቂያ ይዘቱ ምን ይመስሊሌ?---------------------------------------------------------------------
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4. ጨረታ መቼ ወጣ (የግሌጽ ጨረታ ማስታወቂያ) ------------------------------------------------------
 1ኛ ዙር ጨረታ ---------------------------------------------------------------------------------------------
የገንዘብ መጠን ----------------------------------------------------------
 2ኛ ዙር ጨረታ ---------------------------------------------------------------------------------------------
የገንዘብ መጠን ----------------------------------------------------------
5. በመንግስት እንዲጠቀሙት የተሰራጨው የመደበኛ የጨረታ ሰነድ ትጠቀማሊቹ ወይ?------------------
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አጠቃቀሙስ?-----------------------------------------------------------------------------------------------------------
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6. የቴክኒክና የፊይናንሻሌ መወዳደሪያ የጨረታ ሰነዶች በምን መሌኩ እንዲቀርቡ ይደረጋሌ?----------
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ገ ጽ 4|7
7. ጨረታው የተከፇተበት ቀን እና የመክፇቻ ቃሇ ጉባኤ? ------------------------------------------------------
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በጨረታ መክፇቻው ቀን ሁለም የጨረታ ኮሚቴ አባሊት ተገኝተዋሌ ወይ? -----------------------------
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8. የጨረታ ኮሚቴዎችና ተጫራቾች ፖስታ ሳይከፇት ፖስታው ሊይ እንዲፇርሙ ይደረጋሌ ወይ? ---
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9. ዝርዝር የጨረታ ግምገማው /አሸናፉውን የመሇየት ሥራ በማን ይሰራሌ?
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10. ሇቴክኒክ ኮሚቴ ሰነዶችና ናሙናዎች የተሊሇፈበት ቀን?------------------------------------------------------
ቴክኒክ ኮሚቴው ምዘናውን ሇመስራት የፇጀበት ግዜ ---------------------------------------------------------
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ቴክኒክ ኮሚቴው በምዘናው ወቀት ያጋጠሙ ችግሮች ---------------------------------------------------------
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11. ጨረታው ግምገማ ውጤት በማን ይፀድቃሌ? ቴክኒካሌ ------------------------------------------------------
ፊይናንሻሌ -------------------------------------------------------------------------------------------------------------
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12. ተጫራቾች አሸናፉና ተሸናፉ ስሇመሆናቸው በደብዳቤ ይገሇጻሌ ወይ? ------------------------------------
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ገ ጽ 5|7
13. አሁን ሥራ ሊይ የዋሇው አዲሱ የግ» አዋጅ የግ» አፇጻጸም መመሪያ ቁጥር 3/2002 የመደበኛ
የጨረታ ሰነድ የግ» ማንዋሌ በግ» ሥራ ክፍለ ተግባራዊ እየተደረገ ነው?-----------------------------
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14. ግ» የሚፇፀመው በቀረበው Specification መሠረት ነው ወይ?---------------------------------------------
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15. Specification በማን ይዘጋጃሌ? ------------------------------------------------------------------------------------
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16. የ2008 በጀት አመት ግ» የሚፇፀመው በየትኛው የተፇቀደ የግ» ዘዴ እንደሆነ ቢገሇጽ ?
A. ግሌጽ ጨረታበዕቅድ ብር ----------------------------- አፇጻጸም ብር -----------------------------
B. ውስን ጨረታ ዕቅድ ብር ----------------------------- አፇጻጸም ብር -----------------------------
C. በዋጋ ማቅረቢያ ዕቅድ ብር ----------------------------- አፇጻጸም ብር -----------------------------
D. ከአንድ አቅራቢ ዕቅድ ብር ----------------------------- አፇጻጸም ብር -----------------------------

17. በግሌጽ ጨረታ ሇሚፇፀሙ ግ» ዎች የዕቃዎቹ ናሙና እንዲቀርብ ይደረጋሌ?--------------------------

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18. ናሙናዎች የት ይቀመጣለ በማን ሃሊፉነት ይያዛለ?-----------------------------------------------------------
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19. ከአንድ አቅራቢ ሇሚፇፀም ግ» ዕቃው ከአንድ አቅራቢ ብቻ የሚገኝ መሆኑን ወይም ያንኑ
የተወሰነ ዕቃ በሚመሇከት ሌዩ ፇቃድ ያሇ አንድ አቅራቢ ብቻ ስሇመሆኑ በቂ ማስረጃ እንዲቀርብ
ይደረጋሌ? --------------------------------------------------------------------------------------------------------------
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20. ጨረታ አሸናፉ ከሆነው ድርጅት ወይም አቅራቢ ጋር በአግባቡና በደንቡ መሠረት ውሌ
ይፇጽማሌ? -------------------------------------------------------------------------------------------------------------
------------------------------------------------------------- ውለ በማን ይፀድቃሌ? ------------------------------
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ገ ጽ 6|7
21. በማንኛዉም የግዥ ዘዴ ሇተከናወኑ ግዥዎች ሂሳብ የሚወራረደው አስፇሊጊ የሆኑ ደጋፉ ሰነዶች
ከጋዜጣ ጀምሮ ሰነዶች እየተያያዙ ነው ? ካሌሆነ ምክንያቱ ቢገሇፅ--------------------------------------
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22. የቴክኒክ ኮሚቴ በማን ይሰየማለ ።---------------------------------------------------------------------------------
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23. የቴክኒክ ኮሚቴ መረጣ የሚያደርገው እንዴት ነው ------------------------------------------------------------
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24. ያጋጠሙ ችግሮች------------------------------------------------------------------------------------------------------
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25. የግሌጽ ጨረታ ድርሻ በብር ----------------------------------------------- በመቶኛ ----------------------------
26. አጠቃሊይ የግዥ አፇጻጸም በብር ----------------------------------------------- በመቶኛ------------------------
አጠቃሊይ የግዥ እቅድ በብር ----------------------------------------------- በእቅዱ መሰረት ግዥው
የሚጠናቀቅበት ወቅት 1. እቃ --------------------------------------------------
2. ግንባታ ---------------------------------------------------
3. አገሌግልት -------------------------------------------------

ገ ጽ 7|7