Determinants of distributive efficiency of procurement; a case of public sector of Pakistan

Abstract

Procurement in public sector of Pakistan is carried out through a set of rules that have been laid down by Public Procurement Regulatory Authority of Pakistan. The procurement process is divided into different stages starting from preparation of bid to award of the contract further continuing to contract execution. Multiple challenges are faced in each step by the procurement professionals which results into delay of completion of procurements. Each challenge in a specific stage has a weighted impact which needs to be identified in order to prepare a solution that can optimize the process. Similarly, the internal factors are also required to be identified that are affecting the procurement efficiency. These internal factors revolve around the procurement process and procurement professionals, directly affecting the procurement efficiency. The level of effectiveness of these factors is also required to be assessed in order to improve efficiency. The study explored the challenges and internal factors affecting procurement procedures and efficiency and proposes recommendations to counter the same. The research approach used for this study was both qualitative and quantitative. Qualitative analysis was done using semi structure interviews to identify the challenges in procurement process from 09 officials. Quantitative analysis on sample size of 120 was carried out using questionnaire in order to rank these challenges. The validity and reliability of questionnaires was confirmed through content validity and Cronbach’s alpha. Based upon their frequency and to establish the relationship between the internal factors and efficiency of the procurement process. The results indicate that internal processes, Information Technology adoption, accountability and ethics have a positive impact on procurement efficiency in a descending manner. The most significant challenge in each stage is weak procurement plan, untimely publication of tender, untrained nominated committee and non-issuance of contract within a validity period