PROJECT TOPIC- ROLE AND PROBLEM OF PURCHASING DEPARTMENT IN GOVERNMENT

ABSTRACT

This work focuses on the role and problem of purchasing department establishments. Chapter one of this issue in question introduces the entire work with particular reference to the purchasing department of Federal Polytechnic, Oko. The performance of this department in the institution in handling purchasing activities is also viewed. Chapter two is an in-depth review of available literature on the topic. Chapter three focuses on analysing and explaining the research methodology adopted in the various related departments and outside the department, to enable me sample at random, the views as they relate to the topic. Personal interview was also conducted with the purchasing officer and some purchasing department staff. Including the store officer, Bursar and some of school staff. The remaining chapters, four and five are concerned with hypothesis testing and conclusion of the topic. The conclusion comprises the discussion of results, summary of research findings and recommendation as regards the efficiency, accountability and procurement strategies to be applied for effective purchasing decision.

CHAPTER ONE

INTRODUCTION

A well-known definition of purchasing by Peter Daily and David Farmer is that “purchasing is the procurement of the true, in the right quantity, from the right source and at the right price. Purchasing function is done in both private establishments and in government establishments. For the purpose of the study, we shall look at purchasing function in government establishments. There is the widespread

impression that government purchasing is totally different from industrial purchasing. This impression is not altogether valid. Both government and industrial purchasing are concerned with buying the right quality in the right quantity, at the right price and time and from the right source. Government purchasing, however, frequently involves special considerations, which are not usually applicable to the

purchaser in private industry. It is the purpose of this study to examine the role and problem of the department that carryout purchasing functions (i.e. purchasing).

On major government considerations

Depending on the nature of the items purchased, federal government purchases include items ranging from the individual to the exotic from pencil and paper to super aircraft, sophisticated missiles and space vehicles. The major portion of missiles and space purchasing is for technical item involving extensive research and development. Roughly, 75 percent of federal government purchasing by dollar value is for

sophisticated and complicated major weapons and space system and 25 percent is for civilian type commodities. The first law dealing with government procurement in the United States was a federal law passed by congress 1792. Under this law, the department and treasury were given responsibility to make purchase and contract in the name of the United States.

1.1 BACKGROUND OF THE STUDY (GIVING A BRIEF HISTORY OF THE PLACE)

Prior to the creation of purchasing department in Federal Polytechnic, Oko, there existed various committees that oversaw the purchasing function. They were formed to cease the problem encountered by the store department. In as much as the store department does the purchasing, storage and insurance of these materials, the numbers of the previous committees closely monitored it. The purchasing

department were wave of this spying, guide their accounts seriously thereby limiting the degree to which I could dig. This problem has continued to be along in the wheel of progress.

PROJECT TOPIC- ROLE AND PROBLEM OF PURCHASING DEPARTMENT IN GOVERNMENT

1.2 STATEMENT OF THE PROBLEM

The research focuses on the problems of purchasing department of government with a particular reference to Federal Polytechnic Oko. The purchasing department of the Federal Polytechnic Union has a number of problems. Such problems can be summarized as:

  1. ANNUAL BUDGET: Purchasing department derives its authority to spend from the overall annual budget, it cannot spend more than budget authorized except there is a revised supplementary budget.
  2. GENERAL MANAGEMENT SPECIFIC LIMIT: The management often gives purchasing department the authority to spend up to a certain limit. Expenditure beyond the limit is subject to management consideration and approval.
  3. LIMITATION BY REQUIREMENT OF USERS DEPARTMENT: The other shows the quantity and quality of the item to be purchased; the purchasing department is guided by this document in making its purchase.
  4. TO SUPPLY THE INSTITUTION WITH A STEADY FLOW OF MATERIALS AND SERVICES TO MEET ITS NEEDS: To ensure continuity of supply by maintaining effective relationship with existing source and by developing other sources of supply either as alternative or to meet emerging of place needs. To have efficiency and wise acquisition, by any ethnical means, the best value for every naira spent.

1.3 PURPOSE OF THE STUDY

  1. To make suggestion and recommendation that could be useful in solving identified problems.
  2. To find out the role of purchasing department in government establishment with particular reference to Federal Polytechnic Oko.
  3. To know the limitation of the role of purchasing department in government establishment with a case study of Federal Polytechnic Oko.
  4. To find also the likely problem the purchasing department in government establishment encounter with regard to Federal Polytechnic Oko.

1.4 THE SIGNIFICANCE OF THE STUDY

In view of the above objective, it is the opinion of the researcher that this research work will be of immense value to the management of all government establishments, particularly Federal Polytechnic Oko. It is hoped that this study will enlighten the readers and officers of purchasing department in government establishments, especially Federal Polytechnic Oko. This study will also be of importance to private establishments.

It will help the purchasing department of both private and government establishment to know their role.

PROJECT TOPIC- ROLE AND PROBLEM OF PURCHASING DEPARTMENT IN GOVERNMENT

1.5 SCOPE OF THE STUDY

There are more than fifty government establishments in the country. Despite other departments within these government establishments, such as marketing department, administrative department, finance department and others, the researcher focuses his research work on the purchasing department in government establishments. He is trying to find out the role and problem of this purchasing department in government establishments.

The researcher has restricted this study to Federal Polytechnic Oko as one of the government establishments. This is because the researcher could not visit all the government establishments in Nigeria due to financial constraints and time limits.

PROJECT TOPIC- ROLE AND PROBLEM OF PURCHASING DEPARTMENT IN GOVERNMENT

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