Abstract

Public procurement regulations in Uganda were initiated among other objectives; to ensure accountability, transparency and value for money in all public procurement activities. Despite the presence and application of these regulations, State Owned Enterprises have continued to face challenges in contracting for works, goods and services. Evidence shows that most procurement contracts are never fulfilled because of mal practices and high transaction costs. This study sought to examine whether contracting impacted behavioural practices in procurement performance of Uganda’s State Owned Enterprises.

The study mainly employed quantitative research methods, in the process of research instrument design, data collection, analysis and presentation. The study sample consisted of 160 employees picked from 20 State Owned Enterprises in Kampala and Entebbe districts of Uganda. Data was collected through a self-administered questionnaire, sorted and analyzed using both descriptive and inferential statistics.

Results reveal a positive and significant relationship exists between contracting and behavioural practices (r =.353**, p<.01). Further, the regression model indicates that contracting significantly predicts Behavioural practices in State Owned Enterprises (Beta=.763, Sig. =.000).

For improved performance, State Owned Enterprises should clearly set their contract objectives to guide all those involved in the contracting process. There should be key deliverables in those objectives, which should be communicated to the relevant stakeholders.

Further, staff on the contracting team should be selected on merit. This is very important in order to avoid biased selection of contracting teams – even when some of these people do not have the required experience and expertise. This is very important because service providers can exploit such a team to their benefit once they realize that the team is weak and vulnerable.