CHAPTER ONE
“Battles are fought and decided by the Quartermasters before the actual shooting starts”
1.0. INTRODUCTION
This chapter will include background of the problem, problem statement, research questions and objective of the study and significance of the study. It also shows how the study is organized.
1.1 Background Information Of The Problem
The role of any military force is to defend the national interests and values. Defending a country relates to the existence of threats and hence defence includes means and ways or activities to neutralize the threats or sources of threats before an attack as well as the capability to resist the attack. The conceptual analysis of the above involves physical activities with time, space and financial quantities which can be translated further into logistic quantum, Economic and logistic factors therefore determine in part the limit of Defence and Security. Simply, Budget capabilities limit the forces that can be trained, equipped, sustained and employed for the defence of the country. The Logistic factor includes the Combat Readiness Stock that encompasses raw materials and military equipment that might become scarce during wartime.’
1.2 The end of the Cold War and the subsequent evaporation of the American and Soviet Military competition opened a new international era of peace and stability in the World. Due to this, Defence Budgets were reduced. However, the reduction of the Budget at the end of Cold War as part of peace dividend, were not concerned with the budget of operations since it was just the change of the type of threat that military forces were encountering. The complex type of the threat the Defence Forces are currently encountering has increased the demands. Unavailability of resources combined with a limited Defence Budget to accommodate this surge of demand, results in a continuing sustainability problem for Defence Forces especially in operations.
1.3 Military Expenditure by various Countries all over the World can be measured as each country’s percentage of that country’s Gross Domestic Product (GDP). A Country’s GDP is a total of the value of the services provided in a country and the products that are made there. It does not include the value of items that are imported out of it. The GDP of a country is often considered to be a good indicator of that country’s standard of living.
1.4 The TPDF ability of Procurement of Maintenance Stocks for Combat Readiness depends on the Approved National Budget. But due to budgetary constraints which are caused by many factors, hence TPDF ability on procurement become very low. During operation some civilian’s equipment and services have been used to overcome the shortage of the Combat Readiness Stocks. However, they could not be operated efficiently by the military personnel while at the same time, civilian who volunteered to save in the military at the time could not do so successful due to differences in Logistic practice.
1.5 Statement of the Problem
Military operations and administration demand maintenance stocks as one among the need for combat Readiness, However in order to have Maintenance Stocks it need an efficient Procurement System which also depends much on the Approved budget. Although the TPDF Maintain Stocks for Combat Readiness, but in most cases the Stock maintained are not enough due to various factors. There are several reasons which contribute to this shortage and prevent the maintenance of optimum stocks required. The most significant problem is the budgetary constraint that faces the TPDF. This problem prevents the procurement of optimum maintenance stocks required and hence lowers the operational readiness, it is through this background, this study will be conducted to evaluate the Effect of Approved Budget on the Procurement System of Maintenance Stocks of TPDF.
1.6 Research Questions
- What are the Effect of Approved Budget on Procurement System of Maintenance Stock?
- What are the factors that affect Approved Budget in Tanzania?
- What is the Effect of Approved Budget on Procurement System of Maintenance Stock?
- What are the factors that affect Procurement System of Maintenance Stock?
1.7 Research Objectives
1.7.1 General Objective
The main objective is to investigate the Effect of Approved Budget on Procurement System of Maintenance Stock in the Tanzania Peoples Defence Forces.
1.7.2 Specific Objectives
To identify factors that affects Approved National Budget.
To determine the effect of Approved Budget on Procurement of maintenance stock.
To identify factors that affects Procurement System of Maintenance Stocks.
1.8 Significance of the Study
The study will be significant in different locations including the organization in which it will be performed. The output of this research is likely to be beneficial to the following groups:
1.8.1 Respondent Organizational benefits
The suggestion and recommendations may be used by the TPDF itself in realizing the Effect of Approved Budget on Procurement System of Maintenance Stock.
1.8.2 Academic Areas benefits
The study will be significant to academic areas (Universities, College and academic institutions) it will enable the researcher to have practical training by integrating theoretical training obtained in classroom with real working situation. Also the result of this research will provide the reference for other researcher who aims to do the same study. So it will add up in the data bank of the academic areas.
1.8.3 Government/Policy Makers benefits
The study will be significant to the government especially policy makers. It will enable the government to construct and issue policies that will enable government institutions and private sectors to know the effect of Approved Budget on Procurement System of Maintenance Stocks.
1.9.0 Scope of the Study
The scope of the study will be limited to the Effect of Approved Budget on Procurement System of Maintenance Stocks at TPDF HQ- Dar es salaam.
1.9.1 Limitation of the Study
The study is limited because of time is very short and lack of fund to conduct research effectively and efficiently.
CHAPTER TWO
LITERATURE REVIEW
2.0 Overview.
This chapter introduces different literature and writing on approved budget and procurement system of maintenance stocks .The researcher will highlight the conceptual definitions and basic theories to the study and identify the gaps in a view to assist in coming up with relevant conclusions to the current research.
2.1 Theoretical basis of the study
2.1.1 Conceptual definition
Procurement. Procurement means buying, purchasing, renting, leasing or otherwise acquiring any services by a procuring entity spend public funds on behalf of a Ministry, Department or Regional administration of the Government or Public body and includes all functions that pertain to the obtaining of any service including description of requirements, selection and invitation of tender or proposal preparation and awards of contracts
Stocks. Stocks held by depots are of two categories – reserves and maintenance stocks.
Reserves. Reserve is defined as the quantity of stocks required to be held to ensure against emergency, unforeseen fluctuations and expenditure, delays in procurement and transit, misfortune and so on. In peace these include provision for requirements from the outbreak of war until adequate supplies become available from production. As the assessment of the enemy threat and the likely intensity of operations are material factors in deciding upon the level of reserves, the quantity of stocks is determined in consultation with the Operations Staff who may decide to control the reserves of operationally important items such as ammunition. Reserves are designated after the formation controlling them, eg, Headquarters Defence Forces reserves. Reserves are expressed in any of the following terms.
a. Number of days of actual consumption (eg 15 days of combat supplies).
b. Number of days of war wastage rates (eg 30 days of war wastage rates of ammunition).
c. Percentages of A and B vehicles, assemblies and equipment in the force (eg 10 per cent of the tanks in the armoured Regiment).
d. Actual units of quantity, number and weight (1200 dozens or 200 tons).
Reserves are also held for specifically planned operations. Reserves intended to cover increased wastage on commencement of hostilities are known as war Wastage Reserves. Reserves may also be designated after the purpose for which they are intended and though the location of reserves is important, it is the control over their expenditure which must be well thought out and judiciously decided.
Maintenance Stocks. These are the stocks required for the day to day maintenance so that the reserves are not touched for any purpose other than that for which they are held. Their level must cover the interval between replenishments and should also cater for expected delays in transit. The reaction time between supply and demand will also affect the range and level of stores held. The state of the maintenance communications is, therefore, the major consideration in deciding the level of maintenance stocks .
Combat Readiness. This is a condition of the Armed Forces and their constituent units and formations, warships, aircraft, weapons systems or other military technology and equipment to perform during combat military operations. In other words, is the function consistently with the purpose for which they are organized or designed, or the managing of resources and personnel training in preparation for combat action .
Combat Readiness Stocks. This is the collection of war fighting materials held in reserve in pre-positioned storage to be used if needed in wartime .
Approved Budget. This is a Government document presenting the government’s proposed revenue and spending for a financial year that is often passed by the Legislature, approved by the Chief Executive or President and presented by the Finance Minister to the nation
“Procuring Entity” means a public body and any other body, or unit established and mandated by government to carry out public functions;
“Procurement Proceedings” means the proceedings to be followed by a procuring entity or any approving authority when engaging in procurement;
\”Procurement Process\” means the successive stages in the procurement cycle, including planning, choice of procedures, measures to solicit offers from tenderers, examination and evaluation of those offers, award of contract and contract management
“Supplier” means company, corporation, organisation, partnership or individual person supplying goods or services, hiring equipment or providing transport services and who is, according to the contract, a potential party or the party to a procurement contract with the procuring entity;
“Emergency Procurement” means procurement of goods, works or services essentially to meet an emergency situation which cannot be done through normal procurement process;
Approval of annual procurement plan
According to PPA 2011 sec 49.-(1) A procuring entity shall prepare its annual procurement plan in a rational manner and in particular shall-
(a) Avoid emergency procurement wherever possible;
(b) Aggregate its requirements wherever possible, both within the procuring entity and between procuring entities, to obtain value for money and reduce procurement costs; 49 No. 7 Public Procurement 2011
(c) Avoid splitting of procurement to defeat the use of appropriate procurement methods unless such splitting is to enable wider participation of local consultants, suppliers or contractors in which case the Authority shall determine such an undertaking; and
(d) Integrate its procurement budget with its expenditure programme.
(2) The annual procurement plan shall be approved by an appropriate budget approving authority.
(3) The procuring entity shall observe the approved annual procurement plan and any unplanned procurement shall get a prior written approval of the accounting officer .
2.2 EMPIRICAL LITERATURE REVIEW
The Empirical Literature Review will highlight on how other countries and researchers have done on the same research topic as follows:
According to Revised Implementing Rules and Regulations of Republic Act 9184-Philippine Government Electronic Procurement System highlighted as under;
2.3 Procurement Planning and Budgeting Linkage
All procurement shall be within the approved budget of the procuring entity and should be meticulously and judiciously planned by the procuring entity. Consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP). For purposes of this IRR, a procurement project shall be considered crucial to the efficient discharge of governmental functions if it is required for the day-to-day operations or is in pursuit of the principal mandate of the procuring entity concerned. The APP shall include provisions for foreseeable Revised Implementing Rules and Regulations 33 emergencies based on historical records. In the case of infrastructure projects, the APP shall consider the appropriate timing/phasing of related project activities, such as, engineering design and acquisition of right of way, to reduce/lower project costs .
2.4 No procurement shall be undertaken unless it is in accordance with the approved APP of the procuring entity. The APP shall bear the approval of the Head of the Procuring Entity or second-ranking official designated by the Head of the Procuring Entity to act on his behalf, and must be consistent with its duly approved yearly budget .
Preparing for procurement basically involves three (3) activities:
Procurement planning
Preparation of the bidding documents
Conduct of the pre-procurement conference.
Procurement planning entails ensuring that plans for procurement are linked to budgets, preparing the Project Procurement Management Plan and consolidating all PPMPs into the Annual Procurement Plan. Formulating the PPMP involves identifying the procurement project requirements, writing the technical specifications, determining the Approved Budget of the Contract, identifying the schedule of milestone activities, and determining the method of procurement. The PPMP is then transformed into the bidding documents, which ought to contain all the information a prospective bidder needs to prepare its bid. Therefore, in preparing the bidding documents, one has to ensure that these accurately and comprehensively reflect the main elements of the PPMP. One also has to make sure that the documents are of the kind and form prescribed by the Revised IRR and this Manual. MANUAL OF PROCEDURES FOR THE PROCUREMENT OF GOODS 8 The pre-procurement conference is the forum where all officials of the Procuring Entity involved in the project meet to discuss all aspects of the said project to determine the readiness of the Procuring Entity to undertake the procurement. The conference focuses on the technical specifications, the ABC, the appropriateness and applicability of the recommended method of procurement, and the availability of pertinent budget releases, among others
2.3 Conceptual Framework
Independent Variables Dependent Variables
Source :
RESEARCH METHODOLOGY
3.1 Overview
This chapter will includes explanation concerning the area of the study, research design, types of data and information required. It also explains about sampling procedures, sample size, data collection techniques or instrument, data analysis and expected result. (Kothari, 2004) defined research methodology as a science of studying how research is done scientifically; also he defines research methods as all those methods/techniques that are used for conducting a research.
3.2 Area of the Study
The key institution for data collection will be TPDF-HQ Dar es salaam. The following are expected draw backs that may cause poor attainment of this study. These are problems to access the data, lack of cooperation, the time factor and financial factors, but a researcher will make sure that these factors do not affect much the attainment of the research objectives.
3.3 Research Design
The research design will be a case study because a single case at TPDF-HQ Dar es salaam is extensively studied in a specific context in a specific period. The choice of this design is not incidental. The design is deliberately chosen because of its strengths compared with other designs.
The study method will be very intensive in nature. It will give an opportunity to investigate thoroughly different factors that contribute to mismanagement of public resources through public assets.
The method of data collection will be flexible because the researcher will be completely free to approach the problem from any angle desired, It will save both time and cost.
The methodology will enable participants in the research process (eg interviewees) to give their inner insight about the issues at the same time the researcher will be able to explore other issues outside the research context.
The approach is of “ideal role taking” in which participants are engaged in checking in and reciprocally revising interpretive there by enabling them to alter their own need interpretations and to discover common generalizable interests. The methodology will base on communicative action (Warren, 1995).
3.4. Validity and Reliability
To ensure better results, both validity and reliability of data will be accessed. The study proposes testing for reliability and validity at the verge of validating the factors in the context proposed. Reliable and valid data are outcome of valid and reliable measurement. The researcher will use multiple items or indicants appropriate that captured richness of meaning for most social science concepts or constructs (Ndunguru, 2006). Therefore, composite measures with several indicants for single construct enhanced quality of data, reliability and validity of the measurement.
Measurement validity refers to the extent to which, the questions set measure aspects set in the constructs. In other words it is measure of the extent to which the scales captures aspects of the constructs under consideration. Both content and construct validity have to be considered.
Construct validity measure the ability of the scale to measure variables that are theoretically related to the variables being measured by the scale (Cook and Campbell, 1979). As such the best method to ensure construct validity is through confirmatory factor analysis which shows a convergent validity (Mbamba, 2004). That is items measuring the same construct they were to converge and thus co-vary.
Content validity will cover all about whether the measures represent meanings of the concept. It will depend on the extent to which constructs items represents scale’s domain (Parasuman et al., 1988). Content or logical face is the extent to which professionals agree that the scale logically appears to measure the concepts. Consulting expertise and the use of pilot study is proposed; therefore the information gathered will be used to capture the intended information (Mbura, 2007).
Reliability will be achieved because the instrument will produce the same results. In survey, the instrument is said to be reliable if when used repeatedly results are consistent (Hair et al., 2003).
The extent to which measurement process is giving consistent and stable results when applied to similar situation confer to the internal reliability. However, extent to which measurement process is stable when replicated to other research setting is the concern of the external reliability (Ndunguru, 2007). The researcher used the Cronbanch alpha at levels between 0.7-0.8 (the rule of thumb) to measure the reliability of the instrument (Cronbanch, 1951).
3.5. Data collection methods and approach
3.5.1 Questionnaire method
The data will be collected through questionnaire method. This consists of a number of questions printed or typed in definite order on a form or set of forms. They will be designed to bring out silent aspects of the research. This method will be used because it is reliable, simple, need minimum cost and the required data will be collected with a minimum number of errors.
The questionnaire is a special purpose document that allows the researcher to collect information and opinion from respondents. The document will be produced and distributed to respondents who will complete the questionnaire on their own time. The questionnaire allows the research to collect facts from a larger number of people while maintaining uniform responses.
3.5.2 Documentary sources
Documentary sources contain data that were collected and compiled for other purposes. The secondary sources consist of readily available information and report whose data may be used by researchers for their studies.
This method will be used to collect secondary data by studying the available documents within the organization, i.e. reviewing records for more information.
3.6 Sampling techniques
The researcher will use non probability sampling techniques in which purposive sampling will be used. Purposive sampling will be very useful for situations where the researcher needs to reach a targeted sample quickly and where sampling for proportionality will not be the primary concern. With a purposive sample, the researcher got the opinions from target population, but also overweighed subgroups in the population that are more readily accessible.
3.6.1 Sample and Sample size
Sampling may be defined as the selection of some part of a crowd or totality on the basis of which a judgments or inference about the summative or totality is made. In other words, it is the process of obtaining information about the entire population by examining only part of it (Kothari, 2006). A sample is a part of the population under study where the researcher collects data.
DEPARTMENT/SECTION SAMPLE SIZE: Top management-3, Procurement unit-4, User –5 and Accounts-4, Stores department – 4 Total 20.
3.6.2. Sampling procedures
The researcher will use convenience sampling method to select sample from list of employees. The reason behind the use of this method is scarcity of time and cost to deal with the whole population
3.7. Type of data
The researcher sought both primary and secondary data.
3.7.1. Primary data
Primary data will be collected from the survey of the study from Top management, Procurement & Supplies Officers, Accountants and User department’s representatives.
3.7.2 Secondary data
These are data that has already been collected and completed for another purpose. They consist of readily available statements, and reports. They are mainly in the form of literatures from professional journals, books, conference paper, and publications, public procurement Act ,2011 and its regulations 2013.
The researcher read different reports, text books about the topic, and, visited the internet searching for various written materials about the topic.
3.8. Data management and analysis of data
3.8.1 Data Management
The researcher will pass through the entire questionnaire and checking the responses from the entire questionnaire to determine whether they were correctly and comprehensively answered.
3.8.2 Data analysis
In analyzing data two methods will be used descriptive analysis and regression analysis where by both data collected from the questionnaire and documentary review will be analyzed.
Both qualitative and quantitative data analysis will be used. Measures of central tendency, tables and graphs are expected to be used to find and show relationship between variables to assist researcher in the interpretation of data.
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