Ensuring value for money in public procurement: A case study of Koforidua Polytechnic
Value for Money (VFM) is the primary driver for procurement. Given the limited resources available to government, ensuring VFM in procurement is key to ensuring the optimum utilisation of scarce budgetary resources. Value for money is therefore not a choice of goods or services which is based on the lowest bid price but a choice based on the whole life costs of the project or service. The aim of the study is to assess ways of ensuring value for money in procurement in Koforidua Polytechnic. The objectives of the study among others includes; identify the challenges in ensuring value for money and measures to ensure value for money in the procurement of goods and services. The main tools for the collection of data included questionnaires and interview whiles the target population for the data collection included administrators, finance officers and procurement officers. Statistical package for social scientists (SPSS V 20) using mean score ranking was employed to analyze data obtained. Procurement entity liaises with Public Procurement Authority always for timely and required procurement information, procurement activities of the institution are assessed annually by the Public Procurement Authority, management supports VFM objectives and institution plans annual procurement spending to ensure VFM were the major factors in ensuring value for money in procurement. The findings also revealed that inadequate skilled personnel in the procurement sector and inadequate measures for monitoring and evaluation of the procurement policy to ensure VFM are major challenges in public procurement. On measures to ensure alue for money, procurement contract document should be stated in simple language devoid of different interpretations requiring revisions and reviews and regular procurement audits and monitoring for compliance with procurement activities were suggested. The findings of the study will add to the existing body of knowledge in ensuring value for money in the procurement of goods, works and services in public institutions in the country.
A thesis submitted to the school of graduate studies, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of Master of Science in procurement management, 2014