Effects of Negotiation Practices in Value for Money in Public Procurement in Tanzania.

Abstract

This study evaluated the effect of effective negotiation for achieving the value for money in the public sector procurement. This study was carried out at the National Health Insurance Fund (NHIF). The particular goals were to evaluate the impacts of negotiation plans for achieving the value for money, the effects of negotiation skills for achieving the value for money in the public procurement practice, and the effects of negotiation ethics for achieving the value for money in the public procurement. A descriptive research design was used in this study. Questionnaires were used to gather data. Using SPSS Software version 22, descriptive, correlational, and multiple regression analyses were performed on the data that had been obtained. The results demonstrated that a negotiating plan is crucial for successful negotiations in achieving value for money in public procurement, with a P-value of 0.000 (P< 0.005). The results showed that negotiation ethics lead to effective procurement negotiation, thereby achieving the value for money in public procurement, with a P-value = 0.000 (P<0.005).The results indicated that the negotiation plan, negotiation skills, and negotiation ethics have a major contribution as practices of effective negotiation that lead to the achievement of VFM in public procurements. The study concludes that negotiation plan, negotiation skills, and negotiation ethics have a significant influence on the achievement of VFM in public procurement undertakings, with a significant value of 0.000 (P<0.05). The study recommends that organizations should ensure there is a proper negotiation plan within the organization, employ skilled staff, and enhance compliance with negotiation ethics during negotiation in order to achieve VFM in public sector procurement.