Establishing the connection between successful disposal of public assets and sustainable public procurement practice

Peter Adoko Obicci,Pross Oluka Nagitta,Godfrey Mugurusi

doi:10.1016/j.sftr.2021.100049

Peter Adoko Obicci, Pross Oluka Nagitta + Show 1 more

Open Access

https://doi.org/10.1016/j.sftr.2021.100049

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Abstract

Abstract The disposal of assets after their end-of-use is often considered the end-stage in the procurement cycle. Assets disposal in a public organization is its capacity to attach reusable value to its assets at their end of life. It is an area where the failure of the public procurement process is most attributed yet has the most potential for sustainable procurement practice. This paper examines the factors for the successful disposal of public assets and the public purchasers' perceptions of how these factors contribute to a better understanding of sustainable procurement practice. Using a cross-sectional survey among key actors in the public procurement process, three key success factors, namely strategic assets management, strategic planning for assets disposal, and assets disposal mechanismsare identified; their effect on successful asset disposal is examined. The results indicate that the three broad factors studied are all important aspects for effective assets disposal. Yet, their effect on the success of the disposal of public assets process is somewhat varied. Based on the three factors' statistical significance, we conclude that strategic assets’ planning is perhaps the most dominant factor for a successful assets disposal process and provides the most promise for sustainable procurement in public organizations. This study shows that strategic assets management, strategic planning for assets disposal, and the choice of assets disposal mechanisms are all critical enablers of successful disposal of public assets in public organizations and a precursor for sustainable procurement practice. But at the microlevel, disposal planning is by far the most significant enabler for successful assets’ disposal, and therefore a direct driver for sustainable procurement practice.

Highlights

Most literature on public procurement describes assets’ disposal as the last phase of the public procurement process [38,33]
It is essential to understand how public organizations manage the end-of-life process of public assets use, what key considerations underpin the successful disposal of public assets in public organizations
This study focuses on these 3 main areas: (1) strategic assets management to address the on-going utility of an asset, (2) the strategic planning for assets disposal to address the monitoring and maintenance of an asset, and (3) the choice of asset disposal mechanism to address the value recapture aspects of an asset

Summary

Introduction

Most literature on public procurement describes assets’ disposal as the last phase of the public procurement process [38,33]. The urge to dispose of non-beneficial public assets in public organizations is overwhelming and arguably a necessary activity to reduce the cost of holding unwanted public assets and to be more sustainable [12]. As Atiga et al [5] suggest, the disposal of non-beneficial public assets is often frustrating. They attribute the frustration to the continued holding of such assets that have no immediate usable value, affecting the total cost of ownership (TCO) of that asset. It is essential to understand how public organizations manage the end-of-life process of public assets use, what key considerations underpin the successful disposal of public assets in public organizations

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