Private Sector Involvement in Public Procurement Opportunities: An Assessment of the Extent and Effect in Tanzanian Public Entities

Abstract

The main purpose of this study was to assess the current status of private sector participation in public procurement opportunities and their effect on performance of the procurement function in the Tanzanian public entities. In particular the study intended to establish the extent to which the private sector organizations participate in the public procurement opportunities focusing on accessibility to the opportunities, the existing PPPs arrangements, proportion of contracts awarded to the private firms and the existing buyer – supplier relationships. The target population consisted of all 470 public entities in Tanzania out of which 100 entities purposively constituted the sample size. A mixed - qualitative and quantitative- research design was used as a technique for data collection, presentation and analysis. The study used a multistage stratified random sampling technique in identifying potential respondents. The study was guided by a null hypothesis that there is no considerable effect of private sector participation on performance of the procurement function in the Tanzanian public entities. Data were mainly collected through structured and self administered questionnaires supported with face to face oral interviews. Results of the regression analysis indicated that the coefficient for private sector participation is 0.428 and the t-test value is 3.621. Statistically, this coefficient is significant (p – value =0.000 < 0.05). These findings imply that 43% of the variation in performance of the procurement functions in the public entities was explained by the extent to which private sector organizations participate in the procurement opportunities as offered by the respective public entities. The study recommends that public entities must treat the private sector as a key partner to the well functioning of their procurement departments so that the latter can participate effectively. More specifically, the public entities must put in place commercial disciplines that will create confidence and attract the private sector organizations.

Keywords: Private Sector, Procurement Performance. Procurement Function, Public Entity.