Procurement Management

Megaproject Planning and Management: Essential Readings contains the seminal articles from the growing body of research on megaproject planning and management along with an original introduction by the editor, Bent Flyvbjerg. The leading and most cited authority in the field, Flyvbjerg has used crowdsourcing and 25 years of experience to cherry-pick from several hundred articles and books the writings that define the field. This volume will be an indispensable source for those wishing to speak with authority about how megaprojects are prepared, delivered, and fought over. The target audience is students, academics, practitioners, and media pundits alike, as well as communities affected by megaprojects.

ABSTRACT
There has been a major concern about how corporate bodies’ especially public institutions apply the effectiveness and efficiency of procurement systems in achieving their procurement and organizational objectives respectfully. (OECD, 2010). Increasing the effectiveness and efficient use of state funds necessitates the existence, implementation and operationalization of an adequate procurement system by all public entities to achieve expected goal. This research sought to know the extent of effectiveness of procurement systems in attempt to achieve quality service in the public sector.  The objectives was to analyze factors that contribute to successful procurement systems and also identify challenges that hamper the achievement of effective procurement systems to achieve excellent quality service. The researcher randomly selected six (6) public institutions that served as the case study area. The target population included procurement practitioners and other internal procurement stakeholders. This research adopted the quantitative survey questionnaire as the main data collection instrument to gather information from fifty-one (51) respondents. Even though results revealed that the application of procurement principles was satisfactory to some extent, it was gathered that the entire procurement operation do not achieve value for money which should be a major concern for the government, institutions, procurement practitioners, donors, and other stakeholders. Centralized procurement systems is most practiced, preferred, and efficient to some extent. Lack of funds, conflict of interest, and poor team work were identified as the three most challenging factors facing procurement operations. It was finally established that there is positive relationship between procurement and quality service since quality service is seen as dependent on procurement operation. Therefore with proper procurement management the expected quality service by institutions will be effected and where inefficient procurement management is exhibited, then the expected quality service is negatively affected.

Back cover text: Megaprojects and Risk provides the first detailed examination of the phenomenon of megaprojects. It is a fascinating account of how the promoters of multi-billion dollar megaprojects systematically and self-servingly misinform parliaments, the public and the media in order to get projects approved and built. It shows, in unusual depth, how the formula for approval is an unhealthy cocktail of underestimated costs, overestimated revenues, undervalued environmental impacts and overvalued economic development effects. This results in projects that are extremely risky, but where the risk is concealed from MPs, taxpayers and investors. The authors not only explore the problems but also suggest practical solutions drawing on theory, experience and hard, scientific evidence from the several hundred projects in twenty nations and five continents that illustrate the book. Accessibly written, it will be the standard reference for students, scholars, planners, economists, auditors, politicians and interested citizens for many years to come.

Procurement is a crucial element in the working functions of any government. In spite of the reforms in the procurement system and enactment of Public Procurement and Disposal Act (2005) in Kenya, very little has been done to analyze the factors influencing the procurement process in public sector. Procurement in Kenya suffers from poor performance characterized by red tape measures, non-compliance to the Act, overpricing, poor planning, poor contract management, inadequate transparency and accountability, material redundancy and corruption. This paper aimed at investigating factors affecting public procurement efficiency with one of the devolved county governments in Kenya – Homabay used as a case study. The investigation was achieved by; firstly, establishing how professional qualification of employees influence the efficiency of the public procurement process. Secondly assessing how information communication technology (ICT) affect the efficiency of the procurement function in Public procurement. Thirdly, establishing how contract management affect the efficiency of procurement process in the Public Sector and lastly, establishing how the procurement planning process affect efficiency of procurement process in the public sector. The study found that; there is close relationship between ICT procurement performances with highly integrated public procurement process more efficient than manual procurement process; ICT integration within public institution improves customer service delivery making it more simple and efficient; proper contract management in public procurement helps to achieve efficiency in public sector.

This article concerns the extent to which corrupt behavior is dependent on the organizational power structure and the resources available for illegal exchange. This qualitative study is based on 42 in-depth interviews with organizational actors in different organizations in Hungary. Four core themes emerged from the analysis of the interviews: (a) isolated corruption at the bottom, (b) the middle level’s own corruption, (c) “technicization” when middle-level professionals and expert groups are used to legalize the corruption of the dominant coalition, and (d) “turning-off controls” when organizational elites intentionally deactivate internal and external controls to avoid detection.

The Supplementary Green Book Guidance on Optimism Bias (HM Treasury 2003) with reference to the Review of Large Public Procurement in the UK (Mott MacDonald 2002) notes that there is a demonstrated, systematic, tendency for project appraisers to be overly optimistic and that to redress this tendency appraisers should make explicit, empirically based adjustments to the estimates of a project’s costs, benefits, and duration. HM Treasury recommends that these adjustments be based on data from past projects or similar projects elsewhere, and adjusted for the unique characteristics of the project in hand. In the absence of a more specific evidence base, HM Treasury has encouraged departments to collect data to inform future estimates of optimism, and in the meantime use the best available data. In response to this, the Department for Transport (henceforth DfT), has contracted Bent Flyvbjerg in association with COWI to undertake the consultancy assignment "Procedures for dealing with Optimism Bias in Transport Planning". The present Guidance Document is the result of this assignment.

This paper focuses on problems and their causes and cures in policy and planning for large infrastructure projects. First, it identifies as the main problem in major infrastructure development pervasive misinformation about the costs, benefits, and risks involved. A consequence of misinformation is massive cost overruns, benefit shortfalls, and waste. Second, the paper explores the causes of misinformation and finds that political-economic explanations best account for the available evidence: planners and promoters deliberately misrepresent costs, benefits, and risks in order to increase the likelihood that it is their projects, and not the competition's, that gain approval and funding. This results in the "survival of the unfittest," where often it is not the best projects that are built, but the most misrepresented ones. Finally, the paper presents measures for reforming policy and planning for large infrastructure projects, with a focus on better planning methods and changed governance structures, the latter being more important.

ABSTRACT
The study focused on the effects buyer-supplier relationships on procurement performance in
Government Tertiary Training Institutions and was carried out within Nairobi County, a case
study of Kenya Institute of Special Education, Kasarani. A lot of studies have been conducted on
buyer-supplier relationship based on four variables (trust, commitment, communication and
cooperation). However, these studies did not look at the effect of these relationships on
procurement performance. The specific objectives were: to establish the effect of trust on
procurement performance in government tertiary training institution; to find out the effect of
communication to suppliers on procurement performance; To analyse the effect of supplier`s
commitment on procurement performance and to determine the effect of cooperation on
procurement performance. The research questions were to find out how trust affects procurement
performance in government tertiary training institution? What are the effects of communication
to suppliers on procurement performance? How does commitment by suppliers affect
procurement performance? and what are the effects of cooperation on procurement performance
in government tertiary training institution?. The study will benefit KISE by encouraging them to
adopt buyer-supplier relationships. Literature reviewed showed that that formal communication
of supplier evaluations positively influenced BSR. The descriptive design was employed in the
study. This study used purposive sampling and the data collection instrument used was a
Questionnaire. The data was analyzed using quantitative and qualitative techniques, and findings
presented in the form of frequency distribution tables and pie charts. The findings showed that all
variables on the study have positive effect on procurement performance. The study concluded
that commitment, trust, cooperation and communication are important in buyer-supplier
relationship. Finally the study recommended that this study be replicated in different business
sectors within the Nairobi region

The article first describes characteristics of major infrastructure projects. Second, it documents a much neglected topic in economics: that ex ante estimates of costs and benefits are often very different from actual ex post costs and benefits. For large infrastructure projects the consequences are cost overruns, benefit shortfalls, and the systematic underestimation of risks. Third, implications for cost–benefit analysis are described, including that such analysis is not to be trusted for major infrastructure projects. Fourth, the article uncovers the causes of this state of affairs in terms of perverse incentives that encourage promoters to underestimate costs and overestimate benefits in the business cases for their projects. But the projects that are made to look best on paper are the projects that amass the highest cost overruns and benefit shortfalls in reality. The article depicts this situation as ‘survival of the unfittest’. Fifth, the article sets out to explain how the problem may be solved, with a view to arriving at more efficient and more democratic projects, and avoiding the scandals that often accompany major infrastructure investments. Finally, the article identifies current trends in major infrastructure development. It is argued that a rapid increase in stimulus spending, combined with more investments in emerging economies, combined with more spending on information technology is catapulting infrastructure investment from the frying pan into the fire.

In spite of the policy and institutional reforms undertaken in the Kenyan government health facilities and the support from non-governmental organizations, government health facilities in Kisumu County are still not able to effectively manage their inventory. The purpose of this study was to determine the effect of inventory management practices on supply chain performance of government health facilities in Kisumu County. The target population was the 12 government health facilities level 4 and 5 in Kisumu County since they operate under some defined level of semi-self-autonomy that allows them to manage their own inventory and supply chains; which formed the unit of analysis. The unit of observation was 84 comprising of Procurement officers, Stores clerks, Logistics officers and IT employees from those health facilities. The study was conducted in the year 2018. A census was conducted on all the 12 public health facilities. The study used both primary and secondary data where a semi-structured questionnaire was used to collect primary data while a secondary data sheet collected secondary data on procurement costs. The collected quantitative data was analysed using percentages , means, standard deviations and frequencies while inferential statistics used included regression and correlation analysis. Statistical analyses were carried out using SPSS version 21 and results presented in pie chart, table and graph. Regression analysis results revealed that lean inventory practices, inventory records accuracy and information technology had a significant effect on supply chain performance, while demand forecasting had an insignificant effect on supply chain performance. Based on the findings of the study, the study concluded that lean inventory practices, inventory records accuracy and information technology had the most significant effect on supply chain performance of government health facilities in Kisumu County.

As megaprojects have become ubiquitous, their real benefits and costs have come under increased scrutiny. We interviewed Bent Flyvbjerg, who has extensively studied megaproject development. Flyvbjerg has found systematic problems in the development process: by intentionally misrepresenting information and deliberately disregarding risks, proponents instigate projects that result in fewer benefits and higher costs than promised.

This paper explores how theories of the planning fallacy and the outside view may be used to conduct quality control and due diligence in project management. First, a much-neglected issue in project management is identified, namely that the front-end estimates of costs and benefits – used in the business cases, cost-benefit analyses, and social and environmental impact assessments that typically support decisions on projects – are typically significantly different from actual ex post costs and benefits, and are therefore poor predictors of the actual value and viability of projects. Second, it is discussed how Kahneman and Tversky’s theories of the planning fallacy and the outside view may help explain and remedy this situation through quality control of decisions. Third, it is described what quality control and due diligence are in the context of project management, and an eight-step procedure is outlined for due diligence based on the outside view. Fourth, the procedure is tested on a real-life, multibillion-dollar project, organized as a public-private partnership. Finally, Akerlof and Shiller’s recent discussion in economics of “firing the forecaster” is discussed together with its relevance to project management. In sum, the paper demonstrates the need, the theoretical basis, a practical methodology, and a real-life example for how to de-bias project management using quality control and due diligence based on the outside view.

This paper focuses on problems and their causes and cures in policy and planning for large-infrastructure projects. First, it identifies as the main problem in major infrastructure developments pervasive misinformation about the costs, benefits, and risks involved. A consequence of misinformation is cost overruns, benefit shortfalls, and waste. Second, it explores the causes of misinformation and finds that political-economic explanations best account for the available evidence: planners and promoters deliberately misrepresent costs, benefits, and risks in order to increase the likelihood that it is their projects, and not those of their competition, that gain approval and funding. This results in the ‘survival of the unfittest’, in which often it is not the best projects that are built, but the most misrepresented ones. Finally, it presents measures for reforming policy and planning for large-infrastructure projects with a focus on better planning methods and changed governance structures, the latter being more important.

A major source of risk in project management is inaccurate forecasts of project costs, demand, and other impacts. The paper presents a promising new approach to mitigating such risk, based on theories of decision making under uncertainty which won the 2002 Nobel prize in economics. First, the paper documents inaccuracy and risk in project management. Second, it explains inaccuracy in terms of optimism bias and strategic misrepresentation. Third, the theoretical basis is presented for a promising new method called "reference class forecasting," which achieves accuracy by basing forecasts on actual performance in a reference class of comparable projects and thereby bypassing both optimism bias and strategic misrepresentation. Fourth, the paper presents the first instance of practical reference class forecasting, which concerns cost forecasts for large transportation infrastructure projects. Finally, potentials for and barriers to reference class forecasting are assessed.

With the introduction of AGPO program in Kenya 30% of the public procurement is reserved for the disadvantaged groups. The uptake of reserved tendering in state corporations has an impact on procurement performance. Therefore the study sought to determine and investigate the effects of reserved tendering on procurement performance in state corporations in Kenya. The study intended to obtain an in depth understanding of effects of reserved tendering on procurement performance in state corporations. The study intended to determine and identify how the effect of preparing tender documents, invitation to tender, evaluation of bids, selection and contract award during reserved tendering impacts on procurement performance in relation to quality of supplies and materials, cost factor and lead time. The study was guided by four objectives and research questions. The study was guided by the agency theory, duPont model and systems theory. The study was a descriptive research that adopted a survey research design. The target population was 210 state corporations. The survey was done at 21 state corporations. The target population was 236 employees and a sample size of 76 employees being censuses of those working in the procurement departments at headquarters offices. Questionnaires were used in the study as the main tool of data collection. Questionnaires were administered to procurement staff. Cronbach's Alpha was used to test the reliability of data collection instruments. Data collected was coded and entered into the computer for analysis using the Statistical Package for Social Sciences (SPSS). The study employed both quantitative and qualitative research in its data analysis. Data was presented using tables, pie charts and bar graphs. This aided in description and explanation of the study findings. Inferential statistics included correlation and multiple regression analysis. From the findings all the variables that is preparing tender documents, invitation to tender, and evaluation of bids, selection and contract award were found to have a statistically significant effect on the procurement performance of state corporations in Kenya. The study recommended that the state should allocate enough resources to ensure that the reserved tendering process is smooth in public corporations. The state should also utilize the state machinery to eliminate any corruption in the system.

Out-of-control information technology (IT) projects have ended the careers of top managers, such as EADS CEO Noël Forgeard and Levi Strauss’ CIO David Bergen. Moreover, IT projects have brought down whole companies, like Kmart in the US and Auto Windscreen in the UK. Software and other IT is now such an integral part of most business processes and products that CEOs must know their IT risks, which are typically substantial – and overlooked. The analysis of a sample of 1,471 IT projects showed that the average cost overrun was 27% — but that figure masks a far more alarming “fat tail” risk.  Fully one in six of the projects in the sample was a Black Swan, with a cost overrun of 200%, on average, and a schedule overrun of almost 70%. This highlights the true pitfall of IT change initiatives: It’s not that they’re particularly prone to high cost overruns on average – it is that there are a disproportionate number of Black Swans. By focusing on averages instead of the more damaging outliers, most managers and consultants have been missing the real risk in doing IT. In conclusion, the article outlines ideas as to what can be done to avoid Black Swans.

This article presents results from the first statistically significant study of cost escalation in transportation infrastructure projects. Based on a sample of 258 transportation infrastructure projects worth US$90 billion and representing different project types, geographical regions, and historical periods, it is found with overwhelming statistical significance that the cost estimates used to decide whether such projects should be built are highly and systematically misleading. Underestimation cannot be explained by error and is best explained by strategic misrepresentation, that is, lying. The policy implications are clear: legislators, administrators, investors, media representatives, and members of the public who value honest numbers should not trust cost estimates and cost-benefit analyses produced by project promoters and their analysts.

"Over budget, over time, over and over again" appears to be an appropriate slogan for large, complex infrastructure projects. This article explains why cost, benefits, and time forecasts for such projects are systematically over-optimistic in the planning phase. The underlying reasons for forecasting errors are grouped into three categories: delusions or honest mistakes; deceptions or strategic manipulation of information or processes; or bad luck. Delusion and deception have each been addressed in the management literature before, but here they are jointly considered for the first time. They are specifically applied to infrastructure problems in a manner that allows both academics and practitioners to understand and implement the suggested corrective procedures. The article provides a framework for analyzing the relative explanatory power of delusion and deception. It also suggests a simplified framework for analyzing the complex principal-agent relationships that are involved in the approval and construction of large infrastructure projects, which can be used to improve forecasts. Finally, the article illustrates reference class forecasting, an outside view de-biasing technique that has proven successful in overcoming both delusion and deception in private and public investment decisions.

Results from the first statistically significant study of the causes of cost escalation in transport infrastructure projects are presented. The study is based on a sample of 258 rail, bridge, tunnel and road projects worth US$90 billion. The focus is on the dependence of cost escalation on: (1) the length of the project‐implementation phase, (2) the size of the project and (3) the type of project ownership. First, it was found, with very high statistical significance, that cost escalation was strongly dependent on the length of the implementation phase. The policy implications are clear: decision‐makers and planners should be highly concerned about delays and long implementation phases because they translate into risks of substantial cost escalations. Second, projects have grown larger over time, and for bridges and tunnels larger projects have larger percentage cost escalations. Finally, by comparing the cost escalation for three types of project ownership - private, state‐owned enterprise and other public ownership - it was shown that the oft‐seen claim that public ownership is problematic and private ownership effective in curbing cost escalation is an oversimplification. The type of accountability appears to matter more to cost escalation than type of ownership.

This article presents results from the first statistically significant study of traffic forecasts in transportation infrastructure projects. The sample used is the largest of its kind, covering 210 projects in 14 nations worth U.S.$59 billion. The study shows with very high statistical significance that forecasters generally do a poor job of estimating the demand for transportation infrastructure projects. For 9 out of 10 rail projects, passenger forecasts are overestimated; the average overestimation is 106%. For half of all road projects, the difference between actual and forecasted traffic is more than ±20%. The result is substantial financial risks, which are typically ignored or downplayed by planners and decision makers to the detriment of social and economic welfare. Our data also show that forecasts have not become more accurate over the 30-year period studied, despite claims to the contrary by forecasters. The causes of inaccuracy in forecasts are different for rail and road projects, with political causes playing a larger role for rail than for road. The cure is transparency, accountability, and new forecasting methods. The challenge is to change the governance structures for forecasting and project development. Our article shows how planners may help achieve this.

Quality of construction is a key component of perceived value to both clients and contractors. The International Federation of Consulting Engineers (FIDIC) noted that “lack of quality in construction is manifested in poor or non-sustainable workmanship, and unsafe structures; and in delays, cost overruns and disputes in construction contracts”. Value and quality of construction are of concern to both public and private sector clients.
The procurement process in the construction industry is plagued with a number of problems and challenges. Some of the challenges and problems faced by the construction industry in Cameroon and Africa that leads to the delivery of projects of poor quality standards are discussed in this write up. The study investigates the factors that are posing a negative impact on construction quality through the value chain in creating new capital works such as design, procurement and construction. Concerns had been based on the principal issues like; Construction, design and procurement related factors. Furthermore, issues like weak capacity, corruption and embezzlement, finance related issues like budget and funding, procuring design quality, material quality, planning challenges, cultural, human resources and contractor performance issues have been reviewed. These problems have been identified through a critical literature review and field experience drawn from the Cameroon and Africa context and attempts have been made to analyse each of the problems or challenges that lead to the delivery of poor quality projects. Value and quality of construction are of concern to both clients and contractor in both the public and private sector. Against this background, this study has been undertaken on the quality of construction in Africa in general and Cameroon in particular.
The construction projects referred to in this paper deals with all types of building and civil engineering projects

Risk, including economic risk, is increasingly a concern for public policy and management. The possibility of dealing effectively with risk is hampered, however, by lack of a sound empirical basis for risk assessment and management. This article demonstrates the general point for cost and demand risks in urban rail projects. The article presents empirical evidence that allow valid economic risk assessment and management of urban rail projects, including benchmarking of individual or groups of projects. Benchmarking of the Copenhagen Metro is presented as a case in point. The approach developed is proposed as a model for other types of policies and projects in order to improve economic and financial risk assessment and management in policy and planning.

The main objective of the study was to assess the public sector compliance with the implementation of Annual Procurement Plan in Tanzania. The study addressed three specific objectives, the first objective was assess the procedures used to prepare annual procurement plan to determine if it adheres to public procurement Act 2011, the second specific objective was to identify the role of different internal stakeholders in implementation of APP at IFM and the third was to determine the challenges facing IFM in implemention of APP. The study was conducted in Dar es Salaam using IFM as the case study; it also used case study research design covering a sample size of 30 respondents. The sample size was obtained through simple random sampling technique while data collection was done using Questionnaires as the primary data collection tool. The collected data were statistically analysed using SPSS 21 version.
The study found out that there are number of procedures that were followed in implementation of Procurement planning which includes, designing, the identification and preparation stages of the project cycle, preparation of a project work and identification of the resources necessary to carry out the various project activities. The study also showed that users and other stakeholders plays a negative role in effective implementation of APP. Lastly, it was found out that, the reasons that make the IFM not to comply with the implementation of APP include, delay of fund from central government and other sources, lack of awareness on implementation of annual procurement plan and in adequate allocation of funds (insufficient budget). The study concludes that, despite the fact that, IFM has procurement plans and tries to adhere to all necessary procedures and process in implementing APP, the institute faces many challenges such as budget reviewing, lack of awareness on implementation of annual procurement plan, management actions, delay of fund from Higher Student Loan Board and other sources. Therefore, it is recommended that annual procurement plan should be adhered according to Public Procurement Acts 2011 and its regulation of 2013 together with the amended act of 2016 and its regulation of 2017 in order to impart efficient, cost effective and finally to obtain value for money.

This research investigated the impacts of procurement systems on the performance of construction projects in East Malaysia. Construction project outcome may be measured in terms of time, cost and quality achieved. Project clients demand and want best value for their money and they want their projects to be completed on time, within budgeted cost and at appropriate quality or specification. The sample in this research consists of 58 participants that work in a construction companies/industry. 90 questionnaires were distributed, 69 were successfully returned and 58 were fully completed. The sample comprises project clients/owners, project managers, consultants and construction workers. However, due to the fact that the time allocated for this research is limited and it is of qualitative in nature for which the sample size is less important . The aim of using project clients, project managers, consultants and construction workers from different companies is because they work under different circumstances, which will ensure all questions are answered from different perspective. Therefore, the researcher distributed questionnaires randomly among the participants in different construction companies. This also minimises any bias towards any particular company. The key findings and conclusions from literature review and the analysis of results of questionnaires issued to project clients, projects managers, consultants and construction workers showed that traditional procurement system benefits cost and quality but at the expense of time. In other words, traditional procurement system has positive impacts on project objectives of cost and quality and negative impact on project time. Design and build procurement system benefits cost and time but at the expense of quality and this implies that the impacts of design and build procurement system on project objectives of cost and time are positive with negative impact on project quality.

Do different types of megaprojects have different cost overruns? This apparently simple question is at the heart of research at the University of Oxford aimed at understanding the characteristics of megaprojects, particularly in terms of how they are established, run and concluded. In this study, we set out to investigate cost overruns in the Olympic Games. To do so, we examined the costs of the Games over half a century, including both summer and winter Olympics. We looked at the evolution of final reported costs and compared these to the costs established in the Games bids, submitted to the International Olympic Committee (IOC) up to seven years before the Games occurred. In so doing we established the largest dataset of its kind, and documented for the first time in a consistent fashion the costs and cost overruns for the Olympic Games, from 1960 to 2012. We discovered that the Games stand out in two distinct ways compared to other megaprojects: (1) The Games overrun with 100 per cent consistency. No other type of megaproject is this consistent regarding cost overrun. Other project types are typically on budget from time to time, but not the Olympics. (2) With an average cost overrun in real terms of 179 per cent – and 324 per cent in nominal terms – overruns in the Games have historically been significantly larger than for other types of megaprojects, including infrastructure, construction, ICT, and dams. The data thus show that for a city and nation to decide to host the Olympic Games is to take on one of the most financially risky type of megaproject that exists, something that many cities and nations have learned to their peril. For the London 2012 Games, we find that: (1) With sports-related real costs currently estimated at USD14.8 billion, London is on track to become the most costly Olympics ever. (2) With a projected cost overrun of 101 per cent in real terms, overrun for London is below the historical average for the Games, but not significantly so. (3) The London cost overrun is, however, significantly higher than overruns for recent Games since 1999. London therefore is reversing a positive trend of falling cost overruns for the Games.

Nowadays the globalization, innovation of technology and tight business competition push the companies to change their way to run their business. So that companies can continue to survive and win the competition, companies must quickly change their business strategy. Companies should do the continuously improving their business processes as customers demand for goods services better. One of the components that can determine a company can compete is " time ". There is a proverb saying that "time is money". PT INALUM (Persero) which has change the status from foreign company becomes state own companies would continues to improve its performance to much better. The management gives target for Procurement Dept. to optimize the procurement process with the on-time delivery of goods increase becomes 97%. Therefore, it needs to change more precise and faster to meet the set targets and its need to look for best strategy, not just small changes made by PT INALUM but a new breakthrough fundamental. The author uses the Business Process Reengineering to optimize the procurement process in order to improve on-time delivery, business process analysis and drafting of new business processes by implementing supply positioning models. The design of new business processes measured with 4 (four) perspective balance score card and the results obtained benefits of cost reduction, accelerated processes and customer satisfaction

During World War I, the US Congress made it unlawful to speak against the war. The executive prosecuted many for doing so and when tried at the Supreme Court it upheld the sentences. During the Iraq War it was not a crime to speak against the war, but it was almost impossible to be heard if you had anything critical to say. Mass media practiced a self-imposed censorship. The op-ed below was written a few days after the invasion of Iraq and sent to main media in the US, but none wanted to print it on the grounds that critique of the war was considered untimely.

As megaprojects have become ubiquitous, their real benefits and costs have come under increased scrutiny. We interviewed Bent Flyvbjerg, who has extensively studied megaproject development. Flyvbjerg has found systematic problems in the development process: by intentionally misrepresenting information and deliberately disregarding risks, proponents instigate projects that result in fewer benefits and higher costs than promised.

The purpose of this study was to investigate the influence of procurement plan on value for money in parastatal organizations in Arusha city. More specifically, it identified effect of specifications on value for money, evaluated the effect of procurement methods on value for money, examined the effect of procurement scheduling on value for money in parastatal organizations and find out challenges facing parastatal organizations in implementing annual procurement plans. Embedded case study was useful for collecting data and techniques used in analysis and employed 41 sample size from PMU and tender board members. Data was collected using administered questionnaires and interview. Data analysis was done by Regression analysis through statistical package for social scientists (SPSS) version 25. First, data was collected, cleaned, sorted and collated. Descriptive statistics and measures of association were used to examine the relationship between the independent and dependent variables. This was followed by analysis using inferential statistics to examine the relationship between variables. The analytical results revealed that procurement specifications impact quality and standard goods and services, as well as procurement methods improved service delivery to users. It also revealed that procurement scheduling ensures quality procurement services. The study recommended that future studies could consider doing the similar study in other organizations such as the private organizations.

The present paper delivers a robust and systematic literature review (SLR) on supply chain risk management (SCRM) with the purpose to a) review and analyse the literature concerning definitions and research methodologies applied, to b) develop a classificatory framework which clusters existing enablers on SCRM, and to c) examine the linkage between SCRM and performance. The findings reveal that not only is SCRM loosely defined, but that there are various fragmented supply chain risks enablers and that there is a strong need for a clear terminology for its building enablers. In addition to that, the review points to a lack of empirical confirmation concerning the connection between SCRM and performance. This paper contributes an overview of 80 peer-reviewed journal articles on SCRM from 2000 to the beginning of 2015. We offer an overarching definition of SCRM, synthesise and assemble the numerous enablers into preventive and responsive strategies by means of a conceptual framework. Moreover, indicating the social network theory (SNT) as a potential theoretical foundation for SCRM, we further contribute to the supply chain management (SCM) literature by providing propositions that guide future research.

This article concerns the extent to which corrupt behavior is dependent on the organizational power structure and the resources available for illegal exchange. This qualitative study is based on 42 in-depth interviews with organizational actors in different organizations in Hungary. Four core themes emerged from the analysis of the interviews: (a) isolated corruption at the bottom, (b) the middle level's own corruption, (c) "technicization" when middle-level professionals and expert groups are used to legalize the corruption of the dominant coalition, and (d) "turning-off controls" when organizational elites intentionally deactivate internal and external controls to avoid detection.

There seems to be a deep records management challenge that could have significant influence on procurement performance but whose influence had not been investigated particularly in SACCOs. This study sought to establish the influence of proper recording management on procurement performance at SACCOs in Kisii County. The findings of the study show that: the paper based record system used by the Kisii SACCOS had a significantly negative influence on their procurement performance. Further, the low ICT adoption had a significantly negative influence on the procurement performance. Finally, staff at the procurement section of Kisii SACCOS were adequately knowledgeable and this had had a positive influence on the procurement performance. This study recommends that: The SACCO management should do away with the paper based recording system and replace with the ICT based system in order to improve lead-time for procurement and the overall procurement performance. The SACCO management should invest significantly in ICT to help spur effective recording management and improve procurement performance. training on the use of the ICT tools must be done to keep staff up to speed with the new development. They should engage in in-service training of their staff on the new and changing procurement laws to curb graft and improve procurement performance. The suppliers should engage in training to improve their awareness and knowledge of procurement laws to improve the overall procurement performance.

The study aimed at assessing factors hindering adoption of green procurement in manufacturing industry, a case study of TBL Arusha. To reach this goal the study employed three objectives, namely to identify factors hindering adoption of green procurement in manufacturing industry; to find out the effect of failure to implement Green procurement in manufacturing industry; and to propose measure to be implemented to improve performance of manufacturing industry through green procurement.  The study used questionnaires to solicit data from 100 respondents both from staff of Tanzania Breweries Limited Company.  The quantitative data from questionnaires was collected and processed and analysed using Statistical Package for Social Sciences (SPSS version 25) in order to come up with concrete findings and suggestions. Study findings discovered that the lack of proper guidance and absence of enforcement or specific code to adopt green procurement hinders adoption of green procurement in manufacturing industry. The failure to implement green procurement increase environmental expenses and lower public image of the company hence decrease compliance with environmental laws. The study findings also unveiled that establishment objectives for purchase of green products and providing follow-up action of deficiencies in green procurement will improve performance of manufacturing industry. Moreover, the study recommends that top management of Tanzania Breweries Limited should support the use of green products and services. In addition, the middle level and low-level management should also be involved in the formulation and the implementation of green procurement practices.

Pemerintah mendukung kewenangan desa dengan mengalokasikan sejumlah dana yang akan dikelola sebanyak 74.754 (tujuh empat ribu tujuh ratus lima puluh empat) desa (Permendagri No. 56 Tahun 2015 tentang Kode dan Data Wilayah Administrasi Pemerintahan diketahui bahwa jumlah desa di Indonesia). Dana yang dialokasikan untuk desa-desa tersebut, pada tahun 2016 mencapai Rp46.982.080.000.000,- (empat puluh enam triliun sembilan ratus delapan puluh dua milyar delapan puluh juta rupiah - APBN TA 2016). Alokasi dana desa naik secara signifikan bila dibandingkan pada tahun 2015, pada APBN 2015 dialokasikan sebesar Rp9,07 triliun kemudian ditambah pada APBN-P 2015 menjadi sebesar Rp20,77 triliun untuk 72.944 desa. Bila di rata-rata, pada tahun 2015 dana desa dialokasikan sebesar Rp284 juta per desa, dan naik menjadi Rp628 juta per desa pada tahun 2016. Dengan angka yang jumlahnya tidak sedikit tersebut, dibutuhkan aturan-aturan agar dana desa dapat dimanfaatkan secara ekonomis, efektif, dan efisien.
Atas dasar tersebut Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP) selaku lembaga pemerintah yang berwenang telah mengeluarkan Peraturan Kepala Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah Nomor 13 Tahun 2013 tentang Pedoman Tata Cara Pengadaan Barang/Jasa Di Desa, dan telah dirubah dengan Peraturan Kepala Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah Nomor 22 Tahun 2015 tentang Perubahan Atas Peraturan Kepala Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah Nomor 13 Tahun 2013 tentang Pedoman Tata Cara Pengadaan Barang/Jasa Di Desa. Sesuai Pasal 3 Peraturan Kepala LKPP Nomor 13 Tahun 2013 menyebutkan bahwa “Pengadaan Barang/Jasa di Desa yang pembiayaannya bersumber dari Anggaran Pendapatan dan Belanja Desa, tidak termasuk dalam ruang lingkup Pasal 2 Peraturan Presiden Nomor 54 Tahun 2010 sebagaimana diubah terakhir dengan Peraturan Presiden Nomor 70 Tahun 2012 tentang Perubahan Kedua atas Peraturan Presiden Nomor 54 Tahun 2010 tentang Pengadaan Barang/Jasa Pemerintah”, artinya Peraturan Presiden Nomor 54 tahun 2010 tentang Pengadaan Barang/Jasa Pemerintah tidak berlaku di desa.

In this research, the importance of procurement management in South African government will be analysed. Furthermore, the role and necessity of the Chief Procurement Officer (CPO) will be described. Public procurement is defined as the designated legal authority to advise, plan, obtain, and evaluate a government’s expenditure on goods and services that are used to fulfil stated objectives in pursuit of desired policy outcomes.

Originating in a dictum of the Court of Justice in the Concordia Bus Finland case, the 'link to the subject-matter' has emerged as a major limiting principle for sustainability considerations in the 2014 EU procurement directives. It is intended to delimit the scope of legitimate requirements or preferences which can be expressed in procurement procedures and applied in contract performance clauses. It effectively removes the ability to interrogate general corporate social or environmental responsibility policies to the extent that these address matters beyond the specific needs of the contracting authority. This paper analyses the origin and application of the concept in the Court's case law and the manner in which it has been expanded in the 2014 directives. As cases applying the test are few, additional sources such as interpretative efforts of the European Commission and the preparatory materials for the 2014 directives are drawn upon for better understanding of its scope.

The paper then turns to an analysis of how the link to the subject-matter may restrict the effectiveness of sustainability criteria in public contracts, drawing on examples related to renewable energy generation, transport emissions and fair trade products. application of a strict version of the test may create difficulties in achieving the objectives of such criteria, due to the complexity of supply chains and the prevalence of 'upstream' environmental and social impacts. On the other hand, abandoning or loosening the link may also pose problems in terms of verification of criteria and the additionality of the benefits they target. Concerns about the covert use of procurement as a means of regulation are considered, but found to be lacking in substance. The paper concludes by proposing a loose link to the subject-matter test combined with application of the principles of proportionality and transparency as an appropriate way for the Court to review sustainability measures in public procurement.

In complex high rise projects, employers tend to fast track works where construction can begin while design is still incomplete following three main phases of procurement. Shoring system and piling are firstly procured and awarded to an enabling contractor. Upon completion of enabling works, main design and traditional tendering of the second phase can be concluded in order for main construction works to commence on site. While main work is progressing, design of specialist packages will be completed and nominated subcontractors are appointed in a timely manner shaping the third phase of procurement. Such common phased construction usually results in substantial time saving in project life cycle. However, many fast track projects suffer time and cost overruns due to inherent risks of fast tracking such as design deficiencies and ambiguities in risk allocation between involved parties. This paper aims to investigate pros and cons of fast track procurement approach for complex high rise projects and examine how relevant risks are allocated among enabling contractors, main contractors, nominated subcontractors and project consultants in theory and practice.

The paper will demonstrate an interesting case study of a fast track overseas super high rise building. The case study will demonstrate real problems associated with using fast tracking delivery method and involving sequential contractors. It will will discuss the taken measures by the project management team to redress problems and mitigate risks during construction. In conclusion, lessons learnt from the case study will be summarized with recommendations to have better practice of fast tracking approach in complex high rise buildings.

The main purpose of the study was to examine the role sustainable procurement practices play on corporate governance in the Kenyan public transport sector organizations. The study used a case study research design. The study used Kenya Ports Authority based in Mombasa County as a case study. The target population for this study comprised of staff at Kenya Ports Authority (KPA) headquarters in Mombasa County and precisely from Procurement, Finance, ICT, Operations, Human Resources and the Transport Departments and analyzed using SPSS. The study adopted a stratified random sampling technique when selecting the sample, with a sample size of 84 employees from afore mentioned departments at KPA. Data was collected mainly through questionnaires. A descriptive statistics were used in this study supported by Statistical Package for Social Sciences (SPSS) version 21 to compute respondents' answers in percentages form. The study equally applied inferential statistics by using multiple regression as well as correlation analysis to determine the relationship that exists between the research variables. ANOVA test was applied in the study to establish the statistical significance of the type of relationship that exists between the variables. The study revealed that sustainable procurement practices statistically significantly predicted corporate governance in Kenyan public sector organizations', F (4,61) = 490.899, p < .05, R 2 .= .97. The study recommends that the legislature should come up with laws to administrate sustainable procurement and they need to be enforced to improve compliance.