Factors causing Procurement Contract Risks in Public Procuring Entities in Tanzania, a case of the Nelson Mandela African Institute of Science and Technology

Laizer, Japhet Elibariki (2015) Factors causing Procurement Contract Risks in Public Procuring Entities in Tanzania, a case of the Nelson Mandela African Institute of Science and Technology. Masters thesis, The Open University Of Tanzania.

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Abstract

Procurement contracts risks have retarded the achievement of procurement objectives in procuring entities. In order to maintain the achievement of expected procurement objectives the disclosure of factors affecting procurement contracts risks management is important. This study was designed to identify factors causing procurement contracts risk and case study approach was adopted in which Nelson Mandela African Institute of Science and Technology (NM-AIST) was a selected case. Forty one (41) individuals who were obtained through purposive sampling provided findings for this study through interviews and questionnaires. The obtained findings were qualitative and quantitative in nature and were summarised and manipulated into percentages and frequencies through Microsoft Excel Computer Programme and presented in tables. The study findings indicated the main factors causing procurement contract risks at the NM-AIST such as low amount of funds allocated for procurement contracts risk management, non- involvement of the user departments in procurement proceedings; and delays in payment to suppliers. The challenges identified for managing procurement contract risks includes few personnel in procurement department. Lack of risk management policy; and lack of training forums in risk management. The study recommended that the management of the NM-AIST should take an initiative of constituting and train its risk management team, allocation of fund for procurement risk management as per PPRA recommendation, establishment of the risk management policy, formation of buyer-supplier relationship, and involvement of the users in the procurement process. Key words: Procurement Contract Risks

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