1.1 Introduction
Public Procurement “is the acquisition of goods and services at the best possible total cost of ownership, in the right quantity and quality, at the right time, in the right place for the direct benefit or use of governments, corporations, or individuals, generally via a contract”. It can be said to be the purchase of goods, services and public works by government and public institutions. Procurement, therefore, has both an important effect on the economy and a direct impact on the daily lives of people as it is a way in which public policies are implemented (GII, 2007).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
According to Uzor (2004) define public procurement as the acquisition of goods and services by government and their subsidiary agencies such as parastatals. Purchasing and supply management function of virtually a new management function whole has not been accord its full recognition and place in business environment in Nigeria.
The non-recognition is more pronominal in the sector organization where non-professionals establishment to carry out the function of purchase. Procurement of practice is very consequential aspect of purchasing and supply. So in procuring practice so many factor will be put into consideration purchasing objective general and specific objective must be considered and this will help in bringing out the allure of purchasing and supply claim management.
According to Oyeoku (2006) he say that general objective of purchasing concern the tasks obtaining the right quality good and services in the right quality and at the right price and right time form the right supplier and delivered at the right place.
According to him this is described is the “Right” of purchasing or more technically state as the purchasing mix. It is imperative to note that procurement practice private and public sector economy requires planning and control. Therefore, there is every need for government awareness and understanding for the role efficacious procurement practice in the running of its ministry especially ministry of public utilities. The highest degree of efficiency attained in this procurement of all requirements can be the only hope of ministry in finding remedies to their problems.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know The Problem and Prospects of Procurement Practice in the Public Sector Economy.
1.3 Statement of the Problem
The contract of research of this nature is usually associated with one form of problem or other for any research study to achieve its aim problem must be stated clearly and accurately. It is therefore necessary to probe beneath the surface in order to ascertain the nature and size of the problem, failure to do this will lead to a number of errors which is the beginning of management or managerial, business failure.
The problems is procurement practice are by the realities of past, present and future economic consideration as they affect the ministry in question, and the way sent out their specific economy toward activities procurement needs amidst the complexities.
When we consider the increasing day to day variability in price quality availability and other variables against the present and future moved for the items, purchasing design fond to assume more complex dimension.
More so, lack of specialist in the filed of purchasing has result in buying syndrome incompetence and inefficiency in the act and mode of buying by the buyer of designated items. Again the issue of not having on independent purchase department has made purchasing function trivial and uninviting because its major function are carried out by the divisions.
The research also identified a total neglect of purchasing research as a vita instrument for establishing a data bank for identifying opportunities for purchasing action.
1.4 Aim and Objectives of Study
The aim of the study is to investigate the Problem and Prospects of Procurement Practice in the Public Sector Economy. The specific objectives to be considered to achieve the main objective of the study are as follows:
- To determine the prospects in achieving the objectives of the procurement performance metrics
- To determine the challenges associated with implementing the procurement performance metrics established by the Act.
- To propose strategic measures to enhance the implementation of procurement performance metric in Technical universities.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does the prospect of Procurement Practice in the Public Sector Economy facilitate achieving the objectives of the procurement performance metrics?
- Does a procurement Practice procedure influence the Public Sector Economy?
- What are the prospects of measuring procurement performance?
- What are the challenges faced when measuring procurement performance?
