Exploring the Concept of Value for Money Assessment in Sierra Leone’S Public Procurement System

Procurement is a key consideration in the management of public funds, and this function accounts for roughly 70% of the yearly total budget of Sierra Leone. Though procurement has not neglected its statutory responsibility of providing for the logistics needs of the government, it is well noting that it has not contributed Value for Money (VFM) to the projects delivered. Basically, VFM is the optimum combination of the whole life cost, benefits, risks, quantity and quality of the goods, works and services provided embracing the facilities management and environmental impact factors to achieve the desired outcome. On this note, the aim of this research is to understand the Value for Money assessment concept in the public procurement system of Sierra Leone. To achieve the aim of the research, the researcher formulated four (4) research objectives which includes: defining Value for Money in the context of Sierra Leone’s public procurement system; identifying the methods used in conducting VFM assessment; determining the relationships between the methods and the VFM they assess; and determining the procurement stages for optimal application of these methods. Value for Money assessment focuses on measuring economy, efficiency and effectiveness, considering the different options available for the delivery of projects. Furthermore, it takes account of adeptness in design, delivery, the use and management of the delivered project. This process (if thoroughly) executed helps government to decide on the project(s) which contribute(s) best value to its citizens. The choice of the research was mixed methods and deductive in nature. Data was collected using both questionnaires and semi-structured interviews. The questionnaire survey targeted the procurement and finance officers in the twenty-five (25) ministries situated in Freetown; whereas the interviews were targeted at procurement experts who have successfully delivered procurement projects to understand the VFM assessment concept. The study revealed that practitioners in Sierra Leone defined Value for Money as the lowest evaluated responsive bid which meets the specification of the user department, environmental and social benefits, taking into account economy, efficiency, effectiveness and the whole life cost of the procurement project. In addition, it was evidenced that practitioners considered economy, efficiency and effectiveness in their VFM assessment. The methods mostly used in VFM assessments are prior review, post review, contract monitoring, audit, national competitive bidding, international competitive bidding, restricted bidding, request for quotations and cost utility analysis. Findings revealed positively weak associations between cost utility analysis, cost efficiency analysis and social return on investment analysis and the three (3) elements of economy, efficiency and effectiveness. Also, the findings indicated weak positive associations between the pre-contract stage, contracting and contract management stage and post contact stage and the VFM methods. The study recommended that authorities institutionalise the VFM assessment concept, adopt the methods, provide VFM assessment training to enhance the capacity of practitioners to contribute VFM to public contracts and include VFM assessment concept in the procurement act.

Source: KNUST