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This study focuses on the importance of transparency and accountability of Local Government Engineering Department (LGED)'s procurement performance based on 45 predetermined Key Performance Indicators (KPIs). The main objectives of this study are to find the extent of compliance of PPR 2008 by LGED and to identify gaps in compliance and scope of improvement for implementation. For this study, a questionnaire survey method collected data from different stakeholders related to procurement activities of LGED. Key informant interviews were also conducted with senior officers of LGED and IMED. The study result shows a clear adherence to the rules of PPR 2008 by LGED in operating its procurement functions except when paying interest for delayed payment. This study was confined to compliance issues covering 11 KPIs set by the Central Procurement Technical Unit (CPTU).