Factors Influencing the Effectiveness of the Tendering Process in the Public Sector: A Case of The Iringa Municipal Council

Abstract

Public procurement operates within a stringent legal framework that must align with the broader goals of the Government. While procuring entities may have internal objectives, such as cost-effectiveness and timely service delivery, they must also serve the interests of the general public, who bear the tax burden. The study aimed to assess factors influencing the effectiveness of the tendering process in Iringa Municipal Council through financial resources, physical assets, and employee competence. A quantitative approach and cross-sectional design were used, whereby Transaction Cost Economics and Resource-Based View theories were adopted. Sixty-five employees were involved in this study. Descriptive statistics was used in data analysis. The findings showed that effective financial resource management plays a crucial role in influencing the effectiveness of the tendering process. The Iringa Municipal Council demonstrated effective tendering with its abundant financial assets, sufficient working capital, and strong financial position. Physical assets, such as well-maintained facilities and high-quality assets, positively influenced the effectiveness of the tendering process in The Iringa Municipal Council. Employee competence, commitment, education level, and experience significantly affected the effectiveness of the tendering process at The Iringa Municipal Council. The study concluded that financial resources are essential for an effective tendering process. Their efficient allocation and management are critical to success. Adequate physical assets and their maintenance are crucial for a streamlined tendering process. The study recommended that the Government should establish clear policies to ensure the effectiveness of the tendering process in public sectors. The Iringa Municipal Council should provide robust support and training to employees involved in the tendering process to enhance its efficiency. Further studies should explore additional factors contributing to ineffective tendering processes, such as the provision of substandard goods and services, missed deadlines, and punctuality issues in public sectors, to gain deeper insights into their causes and potential solutions