Assessment of factors affecting the implementation of framework contracts in local government authorities: A case of Tanga City Council

Abstract

The framework agreement is one of the key public procurement strategies that can be used to enhance value for money when purchasing recurrent goods and services. Nevertheless, the implementation of framework contracts in many Local Government Authorities in Tanzania has been hindered by various institutional and organizational barriers. This research examined the factors affecting the implementation of framework agreements in Tanga City Council. The research sought to examine the effect of regulatory framework, technological capability, and management support on the implementation of framework agreements. Resources-Based View theory guided this research. The study employed the explanatory research design using quantitative approach. The research focused on 156 procurement-related employees/stakeholders and sampled 112 respondents using Yamane's formula and stratified random sampling. Data collection was conducted through the use of structured questionnaires and analyzed using descriptive statistics, Pearson correlation and multiple regression analysis. However, out of the 112 respondents who were supposed to complete the questionnaires, 106 questionnaires were collected back. Results indicated that there is a positive and significant effect of the regulatory framework, technological capability, and management support on the implementation of framework contracts. The multiple regression analysis demonstrated that the three predictors together explain 83.2 percent of the variance in the implementation process, and technological capability turned out to be the most important one, followed by the regulatory framework and management support. Therefore, it can be concluded that the implementation of framework contracts needs an integrated strategy that should comprise regulatory compliance, technological capability, and supportive management. The study recommends that Tanga City Council should integrate compliance, technology, staff capacity, and management support to improve framework contract implementation.