This study examined the factors affecting performance of the Procurement and Disposal Unit (PDU) in the Uganda National Agricultural Research Organization (NARO).The study sought to investigate the relationship between procurement planning and performance of the PDU, establish the relationship between contract management and performance of the PDU, examine the effect of adequacy of resources on the performance of the PDU and to analyze the relationship between professionalism and competences of the procurement staff and performance of the PDU at NARO. The study employed a sample size of 125 respondents. The results revealed that 61% of the respondents indicated that procurement plans in the PDU impacted positively on performance of PDU while the rest (39%) indicated that the procurement plans did not affect performance. Some respondents (71%) indicated that contract management influences performance of PDU to a great extent and that contract management entails appointment of contract manager, contract implementation plan, contract administration, monitoring and payment. Forty-two per cent of the respondents indicated that there were delays in payments to suppliers and this affected greatly their service delivery. Forty per cent indicated that there was lack of proper controls in management of contracts, and that the user was left alone to manage and monitor contracts; 63% of the respondents indicated that the funds allocated to the departments of procurement were largely inadequate with the rest, 37%, indicating that they were adequate. Professionalism and competence of employees should be promoted and work ethics should be observed in all procurement departments as a fundamental in the success of any organization’s performance.