This study examined the relationship between contractor selection and service delivery in the public sector, focusing on Kawolo Hospital, Lugazi Municipality. Specifically, it analyzed the relationships between contract administration, delivery management, relationship management, and service delivery. Using correlation and regression analyses, the study found that the relationship between contract administration and service delivery was weak and statistically insignificant, with a Pearson correlation coefficient (r) of 0.158 and a p-value of 0.136. Regression analysis revealed that contract administration accounted for only 2.5% of the variation in service delivery, suggesting that other factors such as corruption, low productivity, and limited contractor capacity had more substantial impacts. Conversely, delivery management demonstrated a strong and statistically significant positive relationship with service delivery, as indicated by a Pearson correlation coefficient (r) of 0.532 and a p-value of 0.000. The regression analysis showed that a one percent improvement in delivery management would result in a 0.540 increase in service delivery. Similarly, relationship management was found to have a significant positive influence on service delivery, with a Pearson correlation coefficient (r) of 0.354 and a p-value of 0.001. These findings highlight the critical roles of effective delivery and relationship management in enhancing service delivery. The study concluded that while contract administration has a limited impact on service delivery, improving delivery and relationship management practices significantly enhances service outcomes. It was recommended that Kawolo Hospital prioritize strengthening delivery management and relationship-building mechanisms, implement anticorruption measures, and increase staff capacity through training and fair remuneration. Additionally, the hospital should engage policymakers to support local contractors and explore other strategies, such as improved infrastructure and resource allocation, to enhance service delivery.