Navigating Contract Compliance in Maritime Procurement for National Security: A Study on the Ministry of Defense

Abstract

Public procurement involves government spending for the well-being of the people. This study was carried out to observe the management of contracts implemented by procurement officers at the Ministry of Defense (Royal Malaysian Navy) for expenses related to asset and equipment maintenance used to maintain national maritime security for the well-being of the people. This study also attempts to examine the level of understanding of the procurement officers on pre-planning of asset maintenance contract procurement planning and financial planning, as well as whether or not the mechanism used is sufficient to monitor the contract compliances and contractors' obligations to comply with the terms of the contracts. A survey was initiated in April 2022 and lasted for five months. The questionnaires were distributed to the procurement officers handling the asset and equipment maintenance contract of the Ministry of Defense. A total of 206 questionnaires were returned and analyzed. Results revealed that the procurement officers understood that pre-planning process needs to be implemented before a procurement contract is signed; additionally, they believed that pre-planning process is not a requirement and that the mechanism used is a tool to prevent unethical misconduct in contract management. However, some respondents believed the mechanism could not prevent corruption. Therefore, it is suggested that the procurement officers be given disclosure not only on how to manage the procurement contract but also to ensure that the contract is implemented efficiently through pre-planning procurement. In addition, more improvements to the existing mechanism need to be made to increase procurement officers' trust in the existing system.