Abstract
The study investigates on the value of using force account procurement method in development of small and medium contracting firms. To explicitly reveal what is behind the scene three objectives were formulated which were:-to examine the features of force account in procurement undertakings; to determine the value behind force account procurement method in procurement process towards development of SME and; to assess the bottleneck over effective enforcement of force account policy. The target population being (30) contractors, engineers and technicians employed with TANROADs, TARURA, TANESCO, and REA and those self employed (37) in Mbeya. Snow ball sampling technique was used to obtain a total of 67 respondents deduced. The semi-structured intereview and checklists schedules being used to gather the facts then descriptively and through the use of simple frequencies and percentage the reality was revealed:- force accounts involves local contractors by 100% executing contracts defined under force account policy to its end. Moreover force account is 100% local community participation procurement regularities; force account increases competence (70%); experience (66%) and financial capacitating (59%) of local contractors. Furthermore it was revealed that though projects assigned under force account are to be executed by indigenous contractors by 100% but from the field area it was found only 50% to be sustained. This gap of >50% of contracts under force account none executed was revealed to be caused by technical deficiency given the wilks’ lambda, λ<0.9; management incompetence given -X<5.0 and δ2>0.05; cases over (unethical practices reported >60%; financial difficulties >54.7%; and tax burden >60%).
Highlights
Preferential treatment for the purpose of developing small and medium contracting firms has been a current agenda to most of governments in the World especially in developing countries( Schapper &Gilbert,2006).Implementation and use of preferential treatment government of host countries has found to be used in developing local experts (BMAU,2015)
This was purposely executed following the inventions over global harmonization in procurement undertakings which later led into stiff competition. These international platforms limited chances of local contractors fairly compete and win the procurement opportunities because of financially being incapable and more other perquisites happened not to be met (See Table 1 below).This discrepancy was reported by Kaula (2017) in his study “why most of procurement opportunities in Tanzania are won by foreign contractors?” in which it was revealed that it is by 100% equated to >60% of these complex and risky projects are won by foreign contractors though by 95% these chances were left for local contractors with professional classes I - III
Procurement reforms the government of Tanzania through the PPD and PPRA have been undertaking has helped local contractors getting chances of executing contracts defined under force account procurement method though not by hundred percent ( See figure 2 below)
Summary
Preferential treatment for the purpose of developing small and medium contracting firms has been a current agenda to most of governments in the World especially in developing countries( Schapper &Gilbert,2006).Implementation and use of preferential treatment government of host countries has found to be used in developing local experts (BMAU,2015). The preferential treatment is paid over consultancy services such as teaching; medical treatment care; non-consultancy services such as environmental cleanliness as well as supply of goods. This help to develop the indigenous contractors technically and managerial wise to execute the contract to the end successfully. According to Ofori (2000), the strategies of developing local contractors have been the initiative of the government of Indonesia has been undertaking. This is from the fact that by developing indigenous experts is like making own product/service. The value that have added by the study underhand is to include other variables such that of factors which lead the force account policy in Tanzania being not implemented to its 100% but
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