Open tendering and performance of world bank funded projects in Uganda: A case study of agricultural technology and agribusiness advisory services

Abstract

A study was conducted on the Agricultural Technology and Agribusiness Advisory Services Project (ATAAS) to assess the effect of open tendering practices on the performance of World Bank funded projects in Uganda. Open tendering is recommended as the preferred method of procurement for Government of Uganda Ministries, Departments and Agencies (MDAs) including the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) which implemented ATAAS. The ATAAS report (2017) indicated that performance of open tendering activities in terms of pre-qualification, bid invitations, evaluation and Negotiation had been declining resulting in delayed implementation, high investment costs and low value for money on investment. Qualitative and Quantitative methods using checklists, interview guide and structured questionnaires were used to collect primary data. The study findings revealed; a weak positive relationship between pre-qualification and timely implementation of ATAAS activities(r=0.758, p<0.05; r2= 0.574); a weak relationship between Bid invitation and cost effectiveness of ATAAS (r = 0.28 P<0.05; r2=0.078); and a strong significant relationship between Negotiation and Value for money at ATAAS (r= 0.754, p<0.01; r2= 0.563). Furthermore, the procurement unit at ATAAS prepares and emphasizes a high degree of effectiveness and competitiveness among service providers. It was concluded that, a unit improvement in open tendering efficiency leads to 65% increase on performance of ATAAS meaning that, other factors contribute 35% to Performance. The study recommended that, advertisement through electronic media will help to reach a large number of suppliers. Furthermore, contractors/tenderers across board should be requested to submit their bids for the project comprising two different sealed envelopes; (1) a technical bid; and (2) a price bid. Finally, the study recommends the adoption of the theory of core competencies and suggests that further research on the effect of open tendering practices on organizational culture and organizational profitability in Uganda.