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This project work is being written to analyse categorically and to justify the need for effective and efficient procurement in the local government sub-sector so as to enhance and profitability. It is also the aim of this research work to find out how best procurement operation should be done in order to effect cost reduction and show how effectively and efficiently now purchasing department is organized in these local government sub-sector.However, one thing stand out glaringly in the researcher’s mind and that is the purchasing function to a great extent has not been given adequate recognition as a specialist area in the materials management activities in the local government administrator and in industries undertakings.
Despite the fact that purchasing is a young profession in the fiel of management the wind of change are blowing in purchasing and supply according to Baidy (1987 page 67).The changes are helping organization to survive and succeed in every competitive environment.However, purchasing and supply is an important function in almost every organization, right from private house to the federal states and local government. As well as industry as the members of companies industries begin to increase their purchases to new materials we dictated to the department that used it.As times goes on, purchasing later became a functional specialization which holds about 63% of the organization purse, purchasing is not a money making function as people may think rather, it is meant for reducing and saving cost. In an organization like local government sub-sector such as Owerri Municipal and Ngor Okpala L.G.A through wise buying. When purchasing recognized the potentials of these function and the numerous opportunities they realized the needs for making an organized efforts towards self improvement and education in purchasing and it has become professional discipline. These are bodies that regulate the ethical codes and standards of practice while it’s members are bound to observe in Nigeria for example, the Nigeria institute of purchasing and supply management (NIPSM) and in Britain the charted institute of purchasing and supply (CIPS) regulate these codes of practicesPurchasing is therefore, closely associated with other organizational function. Like inventory management, stores management, transportation, production, planning and control in manufacturing industries and merchandising in distribution organization have to work closely will buying effective and efficient procurement cannot be achieved in any local government administration such as Owerri municipal and Ngor Opkala L.G.A or even in an organization be it private or non-government establishment, it there is no viable purchasing department.
1.1 BACKGROUND OF THE STUDY
Purchasing and supply is an important function in almost every organization, right from private household to federal and state and local level as well as an industry through, these two local government was carried out of Owerri locality and has own 4000 employees each in the locality which carries out their various functions. These local government have some skilled workers who have various qualification. Like HND and the unskilled workers have at local primary and secondary school experience. They have over million annual turn over on the remarks mode by the sub-sectors.
The reason to these turnover are based on these variables:
(a) The ability of the sub-sectors to identify the needs of the municipality.
(b) The inability of the sub-sector to while the ethics of purchasing concept before procurement
(c) The ability of the sub-sector to adopt materials management concept like system approach in the
1.2 STATEMENT OF THE PROBLEM
For so many years, now several local government in Nigeria including Owerri Municipal and Ngor Opkala Local Government sub-sector did not recognise the important of maintaining an effective and efficient purchasing department.This indeed has posed a lot of the threats towards the complete achievement of the corporate objective of the local area.
(1) One of the problems militating against these local government area is poor efficient and uneasy procurement activities carried out within the local government authority.
(2) The local government authority do not use right procedures and in making, their purchases with regards to materials and equipment and contracts awarding, thereby reducing efficiency.
(3) Infact, these local government sub-sectors as well as so many others local government in Nigeria are highly unprofessional as far as purchasing profession is concerned.
(4) The purchasing profession is as neglected in the local government authority and it has not been given pride and recognition it deserves
(5) In the local government authority, purchasing is not treated as a major function separated from those using it’s services this has resultedly led to the placement of purchasing department under finance/ supplies
1.3 OBJECTIVES OF THE STUDY
The objectives of this research are to justify the needs for effective and efficient procurement in the local government sub-sector so as to enhance efficiency in service delivery. It also shows how effective and efficient purchasing department is organized. The researcher further explained how reliable an organization may become if the purchasing department is effectively managed. And the objectives of the study are
1. To know if procurement act provides fair opportunity to suppliers in the competitive market environment
2. To examine the impacts of procurement act toward reducing corruption in the award of public contract
3. To identify the contributions of procurement act toward quality control and assurance at the local government level
4. To examine relevant contributions of procurement act toward budget monitoring and control at the local government level
1.4 RESEARCH QUESTION
Undoubtedly, must local government sub-sectors make use of professional to carry out the jobs. It is therefore the main stream of the project research is to determine reliable answers which will help the objectives of this object through the following research question.
1. How does procurement act provide fair opportunity to suppliers in the competitive market environment?
2. What are the impacts of procurement act toward reducing corruption in the award of public contract?
3. What are the contributions of procurement act toward quality control and assurance?
4. What are the relevant contributions of procurement act toward budget monitoring and control?
1.5 SIGNIFICANCE OF THE STUDY
The significance of the research work, is to help the research or schools to know the significance of this study because to discover. Whether there will be need for effective and efficient procurement function in the local government sub-sector. At the end of this work, the local government will be able and capable of ensuring that there is effective and efficient procure in the local government sub-sector.
1.6 SCOPE OF THE STUDY
Owerri municipal and Ngor Okpala Local Government sub-sector has to consider these element in the procurement in the local government sub-sector.
(a) Determining the consequences of poor effective and efficient procurement in these local government sub-sector.
(b) Considering the importance of maintaining an effective and efficient purchasing department.
(c) Determining the procedures and excess of solving the problems of using unprofessional purchasing in local government sun-sector.
(d) Enhancing wisely procurement activities that are carried out in the local government authority
(e) To ensure that proper attention is directed more on purchasing department in other to ensure that there is the need for effective and efficient procurement activities in the local government.
1.7 LIMITATIONS OF THE STUDY
In the course of the research, the researcher noticed the existence of some limiting factors which teared up, nearly destroying the enthusiasm with which the researcher choose this project topic as a sub-sector. The researcher would undertake a more elaborated study on all the local government in Imo state but the following tactics limited the researcher’s efforts.
(1) TIME FACTOR
As a matter of fact, a ,lot of study would have been done in other ministries, however the researcher as a student is occupied with other academic activities and had no time to extend his study to all local government and some ministries in Imo State as stated in the to all local government and some ministries in Imo State as stated in the preceding pragraphic.