Procurement in Donor-financed Public Projects in Kenya: a Review of the Bid Processing Time
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Date
2010Author
Owuori, Patrick J
Type
ThesisLanguage
en_USMetadata
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The purpose ofthis study was to investigate procurement in donor-financed public projects in Kenya and specifically review bid processing in African Development Bank sponsored projects in Kenya. The study was guided by the following objectives;
(i) To establish the time the procurement process took from bid opening to the time a contract is signed, and whether the processing time varied with procurement method
and type of contract being procured.
(ii) To determine factors contributing to the length of time taken in the process from bid
opening to the time a contract is signed.
(iii) To establish strategies that had been used to manage and mitigate delays in the
process.
To meet the objectives of the study, an exploratory research design was used. The target population was 8 public projects in Kenya financed by the African Development Bank (AfDB) were selected because they were ongoing and had concluded some key procurement activities. The study used primary data collected through individual depth interviews with the respective project managers and procurement staff using a structured questionnaire.
From the study, it was found that the time that the procurement processes took from bid opening to the time the contract was signed, was within the durations recommended by PPOA of 60 to 120 days, as indicated by respondents. However, secondary data from the same projects indicated that the most processes took on average much longer, between 4.06 to 5.57 months for all contracts with the exception of large value contracts which took an average of 8.87 months. Overall, the process took an average of 6.92 months from bid opening to the time a contract is signed with a standard deviation of 3.73 months.
This therefore indicated that procurement processes, as with any other processes, were susceptible to variation, and the period varied with procurement method and type of contract being procured due to either differences in the complexity of deliverables involved in project procurement or differences in management of the process from bid opening to contract signing. Further the study found that human factors, operational processes and project conditions contributed to the time it took to process bids. Operational factors seem to contribute more to delays and show larger variability in their impact than the other two factors. Key operational factors identified in the study include the time taken in donor approvals, delays in obtaining approvals of tender evaluations from tender committees and time taken by evaluators in completion of evaluations.
Key human factors identified in the study included staff experience with donor procedures, communication with donor staff and lack of procurement staff on the project team. The effect of these factors was found not to vary across sectors. The study reviewed the effectiveness of various actions in improving procurement processes. On operational factors, immediate action by tender committees and donors on procurement issues submitted for review, better scheduling of procurement activities and use of information technology in procurement processes would most effectively improve the processes. On human factors, providing staff training and resolving communication bottlenecks would most effectively improve procurement processes.
On project conditions, the study found out that increasing availability of critical project resources, providing realistic schedules and clear delineation of roles would also most effectively improve procurement processes. Since the study used an exploratory approach, with a small sample of data from projects financed by a single donor, it is recommended that similar studies be carried out incorporating projects financed by other donors as well as those financed wholly by government in order to determine whether the factors identified are generic to all public projects.
Confirmatory studies are required to establish conclusively, and more accurately the optimal time the process should take with particular attention to causes of variations in the process based on either the complexity of deliverables involved in project procurement or differences in management of the process. Further studies are also required to examine and validate the finding that human factors, operational factors and project conditions affect procurement processes and whether these factors have the same effect regardless of the sector within which the project falls.
Publisher
University of Nairobi, Kenya