Value for money and performance of procurement contracts in religious institutions: The case study of Kampala archdiocese (Catholic Church).

Abstract

Procurement accounts for approximately 60–70% of total expenditure in faith-based organizations, making it a critical determinant of organizational performance and financial stewardship. Despite the introduction of formal procurement systems in the Roman Catholic Archdiocese of Kampala, persistent challenges such as contract under-performance, failure of income-generating projects, and weak adherence to technical standards have raised concerns about the realisation of value for money (VfM). This study examined the relationship between VfM and the performance of procurement contracts in religious institutions, focusing on Christ the King Deanery. Specifically, it assessed the level of VfM in procurement processes, evaluated contract performance, and established the relationship between VfM and contract performance. A descriptive and analytical research design was adopted, involving a sample of 30 respondents from treasury, procurement, and administration departments selected through stratified and random sampling. Data were collected using questionnaires and observation, and analysed using descriptive statistics and Pearson’s correlation. Regarding VfM integration, 83% of respondents confirmed the existence of procurement reforms, 73% indicated that procurement decisions balance cost and quality, and 76% agreed that VfM enhances competition, indicating strong alignment with VfM principles. On contract performance, 77% affirmed adherence to agreed frameworks and 73% confirmed compliance with ethical standards; however, a significant weakness emerged in technical compliance, with 57% reporting inconsistencies in applying technical standards during tendering. Correlation analysis revealed a strong positive relationship between VfM and procurement performance (r = 0.781, p < 0.05), confirming that improvements in VfM practices are associated with better contract outcomes. The study concludes that although VfM principles are largely embedded in procurement systems, gaps in technical capacity undermine optimal contract performance. It recommends strengthening technical procurement competencies, standardizing procedures, and recruiting qualified professionals across all Church levels.