An Analysis of the Procurement Reforms Act as a Tool for Cost Savings and Accountability

An Analysis of the Procurement Reforms Act as a Tool for Cost Savings and Accountability

Project / Seminar Material
Reference ID: PS-4591-TM

DEDICATION

This research material titled “An Analysis of the Procurement Reforms Act as a Tool for Cost Savings and Accountability” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Purchasing and Supply (PS), Book Authors and Profound Scholars of existing or related project material on “An Analysis of the Procurement Reforms Act as a Tool for Cost Savings and Accountability” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    This research work has seriously analyzed procurement reforms act as tool for cost savings and accountability MKRPIC. Where the data was collected and used for the compilation of this research. An introduction was made which comprises the statement of general problem, the background of the subject matter, objectives of the study and the significance of the study.

    Existing literature on procurement reforms act, determination of needs, some purchasing objectives, purchasing practice and techniques, some management function were also discussed and reviewed. Random Sampling method was used as the basis of this study.

    A sample size of 39 out of total populations of 130 was selected. The research work shows that procurement reforms act n KRPC is always influenced or rather ineffective. The study recommends that due process should be complied with in order to enhance cost savings and accountability in KRPC. Also total commitment of the entire staff of KRPC.

    An Analysis of the Procurement Reforms Act as a Tool for Cost Savings and Accountability

    CHAPTER ONE

    Introduction

    In the past, huge sums of government money have been siphoned through the processes of contract awards. A major thrust of this administration therefore, is the acceptance of Procurement Reforms Act as a tool for embracing transparency, competition, fairness, integrity, openness and value for money in the procurement reforms Act and seek the support of all governance for the implementation of the scheme in various ministries and government parastatals.

    The researcher intends to analyze on procurement reforms Act as a tool for cost savings and accountability in Kaduna Refining Petrochemical Company (KRPC) considering the several abuses to rules and standards in the award and execution of contracts. These abuses are in the form of over-invoicing, inflation of contract costs, proliferation of white elephant projects, poor project delivery, overpayment as well as manipulations of the processes leading to the award of contracts.

    The Kaduna Refining and Petrochemical Company is in the business of refining Crude oil into valuable petroleum and petrochemical products and manufacturing and packaging products efficiently. And the way and manner in which procurement practices are carried out is of great concern to the researcher.

    The edifice is a process plant designed to run steadily with minimum operating costs so as to make profit. In order to achieve this notable objective, it is imperative that replenishment drives are made to ensure that operational spare parts are readily available in the warehouse.

    Since over seventy percent (70%) of the company's expenditure is in the area of materials procurement. It is with this realization in mind that several efforts have been made by both corporate and the subsidiaries management to control and regulate materials management activities, especially in the area of procurement of materials in order to save cost and enhance company's operations. In this project the terms procurement and purchasing would be used interchangeably.

    1.1 Background of the Study

    The researcher developed interest to write on this topic because of personal interest in procurement reforms act and persona interaction with some staff who work in the procurement department under the umbrella of material management department (MMD) in Kaduna Refining and Petrochemical Company (KRPC).

    The researcher got an insight into the procurement activities of the company the company and the problems facing them and therefore feels that it would be of great benefit to the company to conduct a detailed study into its purchasing departments with the aim of identifying the problems and after necessary suggestions toward the solution of such problems for effective and efficient operations of the company, Kaduna Refining and Petrochemical Company (KRPC).

    1.2 Statement of the Problem

    The Material Management Department (MM) of the KRPC Ltd operates in an integrated form to make materials available in the warehouses because the spare parts are stored.

    “JUST IN CASE” for timely maintenance intervention or as the need may arise.

    However, KRPC has taken a back seat in the implementation of the provisions of the Procurement Refining Act. Also, the statement of the general problem is the non-adoption of the Procurement Refining Act in KRPC Ltd.

    And over the years there have been incessant cases where critical material needed for maintenance intervention and other requests, are either over-stocked, under-stocked or out of stock. The scenario depicts the existence of procurement deficiencies in the area of planning, replenishing, coding and inventory control which affects plant sustainability in KRPC Ltd. Besides 2008 annual stock taking in KRPC revealed the available materials to the value of N8 billion which could be used for other purposes.

    1.3 Objectives of the Study

    The study is geared towards achieving the following objectives:

    1. Outline the risks associated with non-implementation of the provisions of the procurement Act in KRPC Ltd.
    2. Determine the impact of the non-implementation of Procurement Reforms Act to the organization.
    3. Examine the factors responsible for the non-implementation of the Act in KRP Ltd.
    4. Suggest or proffer solutions to the problems.

    1.4 Significance of the Study

    The benefits derivable under this study can be seen below:

    1. It serves as a guide for the organization in which the researcher as chosen as a case study i.e. KRPC.
    2. It is meant for students for are willing to embark on further studies in this perspective.
    3. It is a prerequisite for an award of Higher National Diploma (HND) in purchasing and supply.

    1.5 Scope of the Study

    The scope of this research work shall be limited to Kaduna Refining and Petrochemical Company particularly the department under the umbrella of material management department.

    The researcher also aimed at analyzing the procurement reform act as a tool for cost savings and accountability in KRPC.

    Also, comparative notes shall be made where necessary with other department within KRPC.

    1.6 Research Questions

    1. What are the risks associated with the non-implementation of Procurement Reforms Act in KRPC?
    2. How does the non-implementation of the Procurement At affect the organization?
    3. iWhat are the factors responsible for the non-implementation of the Procurement Reform Act?
    4. What are the remedies for solving these problems?

    1.7 Definition of Terms

    Procurement:

    Means purchasing and/or supplies.

    Supplier:

    This is the term used to describe a seller of goods or items in a given place.

    Inventory:

    This refers to the list of goods or items in a given place.

    Quotation:

    Is a list showing the prices of items.

    Purchase Order:

    It is an order in a printed firm to transmit the company's requirement to supplies.

    Negotiation:

    Is a term used to arrive at a final and reasonable price.

    Specification:

    This is the information by the buyer to supplier indicating descriptions dimension and analysis performance of a product.

    Public Procurement:

    Means the acquisition by means of goods, works or services.

    Efficiency:

    Means the ability to minimize the use of resources in achieving organization's objectives i.e. doing the right thing.

    Effective:

    Means producing the result that is wanted or intended.

    Due Process:

    Is a mechanism for ensuring strict compliance to rules and procedures that should guide contract award.

    BMPIU:

    Budget Monitoring and Price Intelligent Unit. This is the unit tasked with implementing Nigeria's public procurement reform programmes.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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