The main objective of this study was to investigate and analyze the impact of procurement contracts management practices on the overall service delivery outcomes within the specific context of Mbarara District. The study was guided by the following research objectives; to examine the importance of procurement contract administration at Mbarara District Local Government, to identify the factors that affect service delivery at District Local Government and to find out the relationship between procurement management and service delivery. The study was conducted in Mbarara District local government in Mbarara District. This choice was motivated by a specific concern about the observed poor quality of service delivery, which was potentially attributed to inadequate procurement contracts management practices in Mbarara District Local Government. The study used a cross-sectional design which was used in assessing respondent’s views towards the procurement contract management and service delivery in Mbarara District local government. The target population of the study was Mbarara District local government officials, Budget committee members, service providers and other authorized beneficiaries who made a total population of 141 people. It was from this population that 104 respondents were sampled. Quantitative and qualitative research methods were used to collect the data required for the study. From the findings, majority 33(32%) of the respondents revealed that procurement contract administration ensures transparency and accountability in the procurement process. It involves monitoring and managing contracts to ensure that they are awarded fairly, competitively, and in accordance with set procurement rules and regulations, followed by 30% of the respondents said that effective procurement contract administration helps MDLG identify, assess, and manage potential risks associated with contracts The researcher concluded that contract administration through procurement planning, record keeping and contract execution assist the entity in achieving value for money procurement. The study finally concludes that delivery management is more significant in contract management than contract administration and recommended that Enhance Procurement Training: Invest in continuous training for procurement professionals to ensure they have the skills necessary for effective contract management, risk mitigation, and negotiation, Strengthen Supplier Relationship Management: Foster strong relationships with suppliers through effective communication, collaboration, and performance reviews. This will contribute to supplier commitment and reliability in meeting MDLG's needs.