A Dissertation Submitted to Mzumbe University in Partial Fulfillment of the
Requirements for Award of the Degree of Masters of Science in Procurement
and Supply Chain Management of Mzumbe University.
The purpose of the study was to assess the influence of the procurement contract
management for goods in achievement of value for money in public sector in Tanzania. The
specific objectives of the study were; to examine the influence of staff competence in
achieving value for money, to determine the influence of organizational capability in
achieving value for money and to assess the influence of relationship management in
achieving value for money. The study adopted case study design. The target population of
this study was 93 employees. Sampling technique in this study was purposive sampling.
This study used a sample of 60 respondents. In this study both qualitative and quantitative
data were collected. Quantitative data were collected through questionnaire while qualitative
data were collected through interview. Theories which were used for this study are Resource
based theory, Principal agent theory and General system theory. Descriptive analysis and
inferential analysis were used to analyze data with help of Statistical Package for Social
Science (SPSS). Descriptive analysis helped the researcher to provide clear description
about the information provided by each respondent and it included frequency and
percentage. Inferential analysis included correlation and regression analysis which were
used to establish the relationship between the variables of the study. From the finding, it was
observed a positive influence between the staff competence and value for money with a
significant value of P=0.000 p<0.05. Also the results revealed that organizational capability
has positive influence in achieving value for money with a significant value of P=0.00
P<0.05 and the study further revealed that relationship management is positively related to
achieving value for money as evidenced by significant value of 0.000 p<0.05.The study
concluded that both staff competency, organizational capability and relationship
management has significant influence on the achievement of value for money procurement
within the organization as all variables had a significant value of p=0.000 p<0.05.The study
recommended that PO-RALG and other public procuring entities, policy makers,
academicians as well as researchers should devote more efforts in ensuring that procurement
contract management is executed by competent staff, organizational is capable in terms of
financial and capital resources and build strong relationship with internal and external
procurement stakeholders in order to achieve value for money procurement. This study
suggested among others, further study to be carried out on the challenges facing the
implementation of contract management on achievement of value for money procurement.