Assessing the Significance and Efficiency of Framework Agreement: In Case of Ethiopian Federal Public Organisation

Abstract

In public procurement large extent of budget is translated into service through governments procurement of goods and service. Besides this, several developed countries have taken steps recently to revise their public procurement systems to improve their efficiency and generate savings. However, developing countries like Ethiopia have been left behind in attention due to decentralized procurement system they were practicing within numerous public organizations so that government cannot benefit the society in terms of using scarce resource in these countries. Recently, Government of Ethiopia has practiced implementing the centralized procurement system at federal and some regional states in which all budgetary public organizations are made possible to procure under single organization and contract system for those goods which are commonly procured among a number of public institutions. By taking this unease under consideration the study assessed the significance of framework agreement and its efficiency in public procurement by identifying use of work force in procuring quality goods, providing goods on time, and minimizing administrative costs as main focus of this paper. This study has employed semi-structured interview and questionnaire as primary data source, and review of key official documents, organizational reports as secondary source of in formations. The result identified that, there is frustration in providing goods on time, procuring variety of item and quality products, and using trained professionals/experts. On the other hand, there is significance achievement in minimizing price of goods and cost of processing procurement. Based on these findings, the study suggested that, the concerned bodies should work in collaboration with each other, increasing types of items identified for procurement, employing qualified experts, and there should be expedition among the suppliers and public organizations. In addition, strengthening the competency levels of domestic suppliers and upgrading the capacity of work force by giving long term and short term training accordingly will help public entities in achieving expected outcome.

Keywords: Public Procurement, Framework Agreement (FA), Public Procurement and Property Disposal Service (PPDS)/ Procuring Entities, Common User Item

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