Term Paper on Project Procurement Management You are required to

consider the following topics and conduct a review in group in any

organization
1. Procurement Performance Ethics and Tender management Points to be
considered A. How the ethical performance of the procurement department is
being measured? As far as concerning to your knowledge, what are the most
common unethical practices observed in the Department? B. Are the ethical
performance appraisal methods/ tools well designed? Discuss about the
existed ethical infrastructure ( Hint- independent officers, independant offices,
training provided on the issues) C. Are the Procurement systems and practices
executed properly accordance with the rule, regulation, and procedure
imposed by Ethiopian Government? Why? Why not? D. Specifically, how the
tender and contract Management is being practiced ethically and legally?
Discuss. What are the major problems/ challenges faced by the organization in
practicing such functions? E. Conclusion and Recommendations
1. Procurement Performance Ethics and Tender Management
A. Measurement of Ethical Performance:
 Research how the ethical performance of the procurement department
is measured. This could include:
 Compliance with procurement policies and regulations.
 Transparency in procurement processes.
 Fairness and equity in vendor selection.
 Prevention of conflicts of interest.
 Discuss common unethical practices observed in the department, such
as:
 Collusion with vendors.
 Acceptance of kickbacks.
 Favoritism in awarding contracts.
 Misuse of confidential information.
B. Ethical Performance Appraisal Methods/Tools:
 Evaluate the design of ethical performance appraisal methods/tools.
Consider:
 Existence of independent oversight bodies.
 Training provided to procurement staff on ethical issues.
 Utilization of codes of conduct or ethical guidelines.
  Mechanisms for reporting unethical behavior.
C. Compliance with Government Regulations:
 Investigate if procurement systems and practices adhere to Ethiopian
government rules and regulations. Discuss:
 Alignment of procurement processes with legal requirements.
 Challenges faced in complying with regulations.
 Measures taken to ensure compliance.
 Consequences of non-compliance.
D. Ethical and Legal Tender and Contract Management:
 Explore how tender and contract management are practiced ethically
and legally. Consider:
 Transparency in the tendering process.
 Fair evaluation and selection of vendors.
 Adherence to contract terms and conditions.
 Mitigation of conflicts of interest.
 Discuss major problems/challenges faced by the organization in these
functions, such as:
 Lack of expertise in procurement staff.
 Pressure to expedite procurement processes.
 Complexity of regulations.
 Limited resources for oversight and enforcement.
E. Conclusion and Recommendations:
 Summarize key findings regarding procurement performance ethics and
tender management.
 Provide recommendations for improving ethical performance and
addressing challenges identified.
 Consider suggestions for enhancing training, strengthening oversight
mechanisms, and streamlining processes to ensure compliance and
integrity in procurement practices.
By following this structured approach, you can develop a comprehensive
term paper on Project Procurement Management that addresses the
specified topics thoroughly.
 A. How the ethical performance of the procurement department is being
measured? As far as concerning to your knowledge, what are the most
common unethical practices observed in the Department?
When reviewing the ethical performance of the procurement department,
there are several key aspects to consider. Here's a structured approach:

1. Ethical Performance Measurement:

 Compliance with Policies and Regulations: Assess the department's
adherence to internal policies and external regulations governing
procurement processes.
 Transparency: Evaluate the transparency of procurement procedures,
including the disclosure of information to stakeholders and the public.
 Fairness and Impartiality: Examine whether procurement decisions are
made impartially and without bias, ensuring fair treatment of suppliers.
 Conflict of Interest Management: Review mechanisms in place to
identify and mitigate conflicts of interest among procurement staff.
 Supplier Relationships: Assess the department's approach to building
and maintaining ethical relationships with suppliers, including fair
contracting practices and anti-corruption measures.
 Training and Awareness: Evaluate the effectiveness of training programs
aimed at promoting ethical behavior and raising awareness of ethical
issues within the procurement team.
2. Common Unethical Practices:
 Bribery and Kickbacks: Instances where procurement staff accept bribes
or kickbacks from suppliers in exchange for preferential treatment.
 Collusion: Coordination between procurement staff and suppliers to
manipulate bidding processes or inflate prices.
 Supplier Favoritism: Giving preferential treatment to certain suppliers,
often based on personal relationships or undisclosed incentives.
 Conflict of Interest: Situations where procurement staff have personal or
financial interests that may influence their decisions in favor of particular
suppliers.
 Fraudulent Activities: Misrepresentation of information, falsification of
documents, or other deceptive practices aimed at gaining an unfair
advantage in procurement processes.
  Non-Compliance with Regulations: Failure to follow legal and regulatory
requirements, such as bidding procedures, contract award criteria, or
reporting obligations.

By examining these areas, organizations can gain insight into the ethical
performance of their procurement department and identify areas for
improvement. Implementing robust measures to promote ethical behavior not
only helps mitigate risks but also fosters trust and integrity in procurement
practices.

B. Are the ethical performance appraisal methods/ tools well designed?

Discuss about the existed ethical infrastructure ( Hint- independent officers,
independant offices, training provided on the issues)
Assessing the design of ethical performance appraisal methods and tools in an
organization involves evaluating the effectiveness of existing mechanisms for
measuring and promoting ethical behavior. Here's a discussion on the ethical
infrastructure and appraisal methods:

1. Ethical Infrastructure:
 Independent Officers: The presence of independent officers or ethics
committees dedicated to overseeing ethical standards and compliance
can enhance accountability and transparency. These officers can serve as
points of contact for reporting ethical concerns and investigating
potential violations impartially.
 Independent Offices: Establishing independent offices or units
responsible for ethics and compliance can provide oversight and
support across various departments. These offices can develop and
enforce ethical policies, provide guidance to employees, and conduct
training on ethical issues.
 Training Programs: Offering training programs on ethical principles and
standards is essential for promoting awareness and understanding
among employees. Training sessions can cover topics such as conflict of
interest, bribery prevention, and ethical decision-making to equip staff
with the knowledge and skills needed to navigate ethical dilemmas
effectively.
2. Ethical Performance Appraisal Methods/Tools:
 Key Performance Indicators (KPIs): Designing KPIs related to ethical
behavior can help measure and evaluate employees' adherence to
ethical standards. These KPIs may include metrics such as compliance
with policies, completion of ethics training, and frequency of reported
ethical concerns.
 360-Degree Feedback: Implementing a 360-degree feedback
mechanism allows employees to receive input on their ethical conduct
from multiple sources, including peers, supervisors, and subordinates.
This comprehensive feedback can provide valuable insights into an
individual's ethical performance and areas for improvement.
 Ethical Dilemma Scenarios: Incorporating ethical dilemma scenarios into
performance evaluations or training sessions can assess employees'
ability to apply ethical principles in real-world situations. By presenting
challenging scenarios, organizations can gauge individuals' ethical
decision-making skills and identify areas for further development.
3. Discussion on the Design:
 Alignment with Organizational Values: Ethical performance appraisal
methods should be aligned with the organization's values and
objectives. Assessments should reflect not only adherence to policies
and regulations but also the organization's broader ethical principles
and commitments.
 Continuous Improvement: Ethical appraisal methods should be subject
to ongoing review and refinement to ensure their effectiveness and
relevance. Soliciting feedback from employees and stakeholders can
help identify areas for improvement and strengthen the ethical
infrastructure over time.

Overall, a well-designed ethical infrastructure encompasses independent

oversight, comprehensive training, and effective appraisal methods to
promote and assess ethical behavior throughout the organization. Continuous
efforts to enhance these elements can contribute to a culture of integrity and
ethical excellence.
 C. Are the Procurement systems and practices executed properly accordance
with the rule, regulation, and procedure imposed by Ethiopian Government?
Why? Why not?
Assessing whether procurement systems and practices are executed properly
in accordance with the rules, regulations, and procedures imposed by the
Ethiopian Government involves examining several factors. Here's a discussion
on the topic:

1. Compliance with Laws and Regulations:

 Yes, Compliance: If procurement systems and practices adhere to the
rules, regulations, and procedures set forth by the Ethiopian
Government, this indicates that the organization is operating within the
legal framework established by the government. Compliance ensures
that procurement activities are conducted transparently, fairly, and in
accordance with established standards.
 No, Non-compliance: If there are instances of non-compliance with
government regulations, it may indicate weaknesses in the procurement
process. This could lead to risks such as fraud, corruption, and
inefficiency. Non-compliance with procurement regulations can also
result in legal penalties and reputational damage for the organization.
2. Reasons for Compliance:
 Legal Obligations: Organizations are legally obligated to adhere to
procurement laws and regulations set by the Ethiopian Government.
Compliance ensures that procurement activities are conducted lawfully
and ethically.
 Transparency and Accountability: Adhering to government
regulations promotes transparency and accountability in procurement
processes. It ensures that procurement decisions are made impartially
and that public funds are used responsibly.
 Risk Mitigation: Compliance with procurement regulations helps
mitigate risks such as fraud, corruption, and mismanagement of funds. It
provides safeguards to prevent unethical behavior and improper use of
resources.
3. Reasons for Non-compliance:
  Lack of Awareness or Understanding: Non-compliance may occur due
to a lack of awareness or understanding of procurement regulations
among procurement staff. Inadequate training and guidance on
government procedures can result in unintentional violations.
 Resource Constraints: Limited resources or capacity constraints within
the organization may hinder its ability to comply with complex
procurement regulations. Insufficient staff, technology, or expertise can
impede efforts to execute procurement practices effectively.
 External Pressures: External pressures such as political interference,
bribery, or influence from suppliers may contribute to non-compliance
with government regulations. These factors can compromise the
integrity and impartiality of the procurement process.

In conclusion, ensuring that procurement systems and practices are executed

properly in accordance with Ethiopian Government regulations is essential for
promoting transparency, accountability, and integrity in the procurement
process. Compliance with legal requirements helps mitigate risks and build
trust with stakeholders, while non-compliance can lead to legal, financial, and
reputational consequences for the organization. Continuous efforts to
strengthen compliance mechanisms and address underlying challenges are
critical for enhancing the effectiveness and integrity of procurement practices.

D. Specifically, how the tender and contract Management is being practiced

ethically and legally? Discuss. What are the major problems/ challenges faced
by the organization in practicing such functions?
Examining how tender and contract management are practiced ethically and
legally involves assessing various aspects of the procurement process. Here's a
discussion on these points along with the major problems and challenges
faced by organizations:

1. Ethical and Legal Practices in Tender Management:

 Transparency: Ensuring transparency in the tendering process by
providing equal opportunities to all qualified suppliers, disclosing
relevant information, and conducting fair evaluations of bids.
  Fair Competition: Promoting fair competition among suppliers by
establishing clear evaluation criteria, avoiding conflicts of interest, and
preventing collusion or favoritism.
 Confidentiality: Safeguarding the confidentiality of sensitive
information related to the tender process to prevent unfair advantages
or manipulation.
 Integrity: Upholding integrity and honesty in all interactions with
suppliers, avoiding bribery, kickbacks, or other unethical practices that
may compromise the fairness of the tender process.
2. Ethical and Legal Practices in Contract Management:
 Compliance: Ensuring that contracts are awarded in compliance with
relevant laws, regulations, and organizational policies.
 Contractual Obligations: Fulfilling contractual obligations fairly and
transparently, including timely payments, performance evaluations, and
adherence to terms and conditions.
 Conflict Resolution: Resolving disputes or conflicts that may arise
during contract execution through fair and impartial processes, with a
focus on preserving the interests of all parties involved.
 Ethical Conduct: Conducting contract negotiations and interactions
with suppliers in an ethical manner, with a commitment to honesty,
fairness, and integrity.
3. Major Problems/Challenges:
 Lack of Transparency: Insufficient transparency in the tendering
process can lead to allegations of favoritism, corruption, or unfair
treatment of suppliers.
 Inadequate Oversight: Limited oversight and monitoring of tender and
contract management processes may result in opportunities for fraud,
mismanagement, or non-compliance with regulations.
 Procurement Fraud: The risk of procurement fraud, including bid
rigging, collusion, or bribery, poses a significant challenge to ethical and
legal tender and contract management.
 Capacity Constraints: Inadequate resources, expertise, or technology to
effectively manage tenders and contracts can impede the organization's
ability to ensure compliance and integrity.
  Complex Regulations: Complex and evolving regulatory frameworks
governing procurement processes may create challenges for
organizations in understanding and implementing legal requirements
effectively.

Addressing these problems and challenges requires a multi-faceted approach,

including strengthening internal controls, enhancing transparency and
accountability mechanisms, providing training and capacity-building
initiatives, and promoting a culture of integrity and ethical conduct within the
organization. By addressing these issues proactively, organizations can
improve the ethical and legal practices in tender and contract management
and mitigate associated risks effectively.

E. Conclusion and Recommendations the above

In conclusion, the review of procurement practices within the organization
reveals both strengths and areas for improvement in ethical and legal
compliance. While there are commendable efforts in promoting transparency,
fairness, and integrity in tender and contract management, several challenges
persist, posing risks to the organization's reputation, financial stability, and
operational efficiency.

Recommendations for enhancing ethical and legal procurement practices

include:

1. Strengthening Oversight and Monitoring: Implement robust oversight

mechanisms to monitor procurement processes, identify irregularities, and
prevent instances of fraud, corruption, or non-compliance with regulations.
2. Enhancing Transparency: Increase transparency in tender and contract
management by disclosing relevant information, ensuring equal opportunities
for suppliers, and maintaining clear and consistent communication with
stakeholders.
3. Investing in Capacity Building: Provide training and capacity-building
initiatives to procurement staff to enhance their understanding of ethical
 principles, legal requirements, and best practices in procurement
management.
4. Promoting Ethical Culture: Foster a culture of integrity, honesty, and ethical
conduct within the organization through leadership commitment, employee
engagement, and recognition of ethical behavior.
5. Streamlining Processes: Simplify and streamline procurement processes to
reduce administrative burdens, minimize opportunities for errors or delays,
and enhance efficiency while ensuring compliance with regulations.
6. Collaborating with Stakeholders: Engage with stakeholders, including
government agencies, civil society organizations, and the private sector, to
exchange knowledge, share best practices, and collaborate on initiatives to
improve procurement practices collectively.

By implementing these recommendations, the organization can strengthen its

ethical and legal procurement practices, mitigate risks, and enhance its
reputation as a responsible and transparent entity. Continuous monitoring,
evaluation, and adaptation of procurement processes are essential to ensure
sustained improvement and alignment with evolving regulatory requirements
and industry standards.