Use of Force Account Procurement Method for Development of Small and Medium Contracting Firms in Mbeya

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%).

Obtaining the best value for money through procurement planning: can procurement regulatory compliance intervene?

“…, 2021; Soong et al. , 2020); the same is happening in Tanzania (Stephen, 2021). So, the involvement of small and medium-sized enterprises makes public procurement operations in the country more important.…”

“…In addition, public procurement is associated with constructing transportation infrastructure such as roads and railways to enhance trading and exchange within communities, as in the case of the Standard Gauge Railway project, one of Tanzania's most significant rail infrastructure projects since 1961 (Rweyendela and Mwegoha, 2022). In other areas, it has been reported that public procurement boosts business for small and medium enterprises that conduct business with public organizations by accessing public procurement opportunities (Liu et al, 2020;Namagembe et al, 2021;Soong et al, 2020); the same is happening in Tanzania (Stephen, 2021). So, the involvement of small and mediumsized enterprises makes public procurement operations in the country more important.…”

Effectiveness of the Force Account Approach in Tanzanian Local Government Authorities: Do Management Support and Staff Competence Matter?

“…To attain these benefits, management should create a good environment through their policies, strategies, and innovation to ensure the whole process of procurement of works under the force account is successful so that the perceived benefits of the force account could be realized (Mayani, 2019). Also, the financial resources should be properly allocated to facilitate the effectiveness of the force account approach in construction projects (Stephen, 2021). Available literature emphasises the role of top management support in construction projects (Jha & Iyer, 2006;Kikwasi & Sospeter, 2023).…”

“…The scarcity of skilled labourers can significantly impact the productivity of a construction project (Gomes et al, 2019;Stephen, 2021). So, better-trained workers have a big effect on how much more force account approach can be done.…”

“…The effectiveness of the force account in the Local Government Authorities is dependent on the personnel working on the projects. It was discovered that the goals of some governments are not being met because the effectiveness of their forces is not being taken into adequate account (Stephen, 2021). However, there have been a few instances where the implementation of the force account has been found to have flaws that may limit its effectiveness.…”