EVALUATION OF THE USE OF TENDERS IN A PUBLIC SECTOR PROCUREMENT

ABSTRACT


The subject matter of this study is to carefully evaluate the use of tenders in the public sector procurement.  In a bid for better understanding of public procurement as to the Nigerian content backed by the Nigerian procurement Act of 2007. This research work will be focusing on the Bureau for public procurement (BPP) Lion building Enugu as a public sector as a case study. This research work will also take a close look at the various terms that are associated with public procurement. The objectives of this study is to closely examine the evaluation of the use of tenders and  tendering in improving efficiency and effectiveness in the public sector, public sector contract management and public sector administration. In other to attain to the set objectives of this study, research questions were carefully constructed to enable the researcher collect relevant data/information on the subject matter. Attempts were also made to review related literature and opinions of professionals, experts and consultants especially on the following areas. Meaning of tenders and tendering, evaluation of tenders and tender in the public sector purchasing, tendering documents, pre-qualification for tenders and tenders board. During the field work, all collected data will be presented, analyzed and discussions were held on some of the findings and conclusion was made. Based on the conclusions recommendations were made in assisting the development of the public sector tendering and if carefully followed it will ensure accountability and also reduce the rate of frequent abandonment of contracts after contractors has been fully mobilized.

CHAPTER 1


CHAPTER ONE
INTRODUCTION         
 1.1   BACKGROUND OF THE STUDY
Tender to a layman means many things such as to pamper a child, something that is young and so on. But in this context, tender is defined as “An offer made in writing by one party to another to execute certain supply contract/commodity slated at a stated cost”.
        Tendering is the process of making an offer, bid or proposal or expressing interest in response to an invitation or request for tender.
        The dictionary of purchasing and supply management defines tender and tendering as offers from without callous, usually in sealed envelope, delivered by a time and date specified in the invitation to tendering from supply of goods and services. Uzor (2004:440) in CIPS, tendering can be defined as the public release by an organization of the requirements of goods or services for a project in order to allow formal bids to be made to supply the goods or services. Lyson (1996) also defined tendering as a purchase procedure whereby potential suppliers are invited to make a form and unequivocal offer of the price and terms which on acceptance shall be the basis of the subsequent contract. Chilaka o. and Amanze c. defines tender as an offer to sell at the right price indicated and can be converted into a contract by acceptance in the form of a buyers order.
        Tender as an offer to sell at the price indicate and can be converted into a contract by accepting the offer in the form of a buyers order.
        Perhaps, tendering is the very first opportunity for the buyers to have a full detail of the supplier and for the suppliers to improve their services level is the most important element. The public sector management has in their part made numerous contributions to effective and efficient management of contract in the public sector. Several restrictions has been made to see that tenders and tendering are dully observed. For instance, no contract work involving construction shall be considered by tenders board unless for the reasons as:
(a)        The land has been acquired and the topography map on soil tested except where it has been approved by the Architect and it is not necessary. The document relating to the land, the survey map, the soil, test report or certificate of example by the architect should then pay off contract document to be presented to the board. See newly reviewed financial regulations (2000)
i.             Architect design
ii.            Structure design
iii.          Mechanical design
iv.          Bill of qualities
Furthermore, in chapter 32 of financial regulation (2000) the conditions governing the local purchase of stores are set out and subject to those condition all local purchases of stores etc and all work and service costing over N500,000 must be obtained by contract after public tender. It must be recorded that tendering has been misused, mis-managed or even mis-understood.
This single cause of poor contract collection of mobilization fees is carefully considered. The essence of this research therefore is to examine on evaluation of the use of effective an efficient tendering in improving public sector contract management and administration.
1.2    STATEMENT OF THE STUDY
(a)    A greater number of problem have bedeviled public sector tender which has had great affection on public sector procurement. The quality of contract entered by the public sector organization. The entire contract system has gone sour as a result of mis-management, corruption, misapplication of rule and regulation set to be adhered to in contracting for goods and services.
(b)    Another problem facing public sector tendering is the issue of Nigeria factor where the nation suffer while the individual grows, selfishness, political consideration, godfatherism, embezzlement of public fund, contract abandonment, etc.. all these have in no small measure affected the quality of tendering which in turn affect the quality of public sector.
(c)    The out date nature of our financial or stores regulation which guides the operations of public procurement as well as public sector tendering gin the greatest problem of our public sector tendering and therefore has serious implication on the efficiency and effectiveness of public sector contract management and administration.