Effect of Cost Estimation on Performance of Local Government Procurement Functions in Bahi District, Dodoma Region

Abstract

This study examined effect of cost estimation on performance of procurements functions in Bahi district council. Specifically it assessed influence of cost accuracy on performance of procurement functions; evaluated the impact of supervision of previous purchasing item on procurement functions; and examined influence of cost valuation of items on performance of procurement functions. The cross sectional research design was employed. A total of 67 respondents were selected using purposively and simple randomly sampling techniques. Data were collected using questionnaire survey and in depth interview methods, while descriptive statistics and multiple linear regression techniques were used in data analysis. Findings revealed a positive significant relationship between cost estimation and performance of procurements functions (p-value< 0.05). The study concludes that cost estimation has great influence on the performance of procurements functions in Bahi district council. The study recommends that cost should be well estimated in any procurement process to ease the procurement processes and associated costs hence improve procurement performance.