The impact of bid evaluation criteria on contract performance in public procurement institutions

Abstract

This study examines the impact of bid evaluation criteria on contract performance in public procurement institutions, specifically focusing on Mukono District Local Government (MDLG) in Uganda. The research employs a mixed-method approach, integrating both qualitative and quantitative methods, to assess how responsiveness, technical examination, and financial evaluation influence contract performance. Utilizing a cross-sectional survey design, data was collected from 40 respondents through structured questionnaires and key informant interviews with procurement officials. The findings reveal a significant positive relationship between all three evaluation criteria and contract performance. High levels of responsiveness-meaning timely communication with the customer and resolution of outstanding issues-strongly correlated with better contract performance. Well-defined technical requirements and professional evaluations proved to be decisive in the pre-selection phase, as well as in project results. Price or financial reviews- based on best value for money, not lowest price-played a key role in pre-selecting bidders capable of delivering their project within budget. The study has realised successful procurement outcomes through responsive communication, comprehensive technical assessments, and encompassing financial evaluation in the MDLG. Recommendations include the following: increasing responsiveness by having standardized protocols for communications, reinforcing technical examination procedures by providing consistent guidelines, and reinforcing financial evaluation practices for better contractor selection. Further, the areas of future research would relate to the impact of bid evaluation on contract types and consideration of external factors affecting procurement efficiency. In sum, this research contributes to the understanding of procurement effectiveness in local governments, going a step deeper into the improvement of bid evaluation criteria for better contract performance and service delivery within public institutions.