1. What is planning?

2. Nature of Planning
3. Procurement Planning
3.1 Importance of Planning
3.2 Preparing the PPMP
3.3 Preparing the APP

Government Procurement Policy Board – Technical Support Office 2

Assess  Review studies  Post/Advertise Procure
 Consolidate into APP opportunity
 Decide procurement  Open and evaluate
method bids
 Approve APP  Post-qualify
 Determine readiness  Award and enter into
contract

Identify  Cost-benefit analysis  Oversee Implement

 Feasibility study implementation
 Market study  Inspect and accept
 PPMP deliveries
 Release payment
 refers to predetermined course/s
of action to achieve a desired
end/goal.
 “Process of identifying which
project needs can be best met by
procuring products and services
outside the project organization
and should be accomplished
during the project planning
effort”
 Procurement Planning ensures that the overall goal of a particular
project will be effectively and efficiently achieved.

 Precludes occasions for unnecessary government purchases and

circumventions of the prescribed procurement procedures

- advance deliveries
- suki system
- unwarranted resort to alternative methods procurement

 However, it must be done within budgetary context

Procurement Planning and Budgeting Linkage

 Within approved budget of procuring entity

 Judiciously done
 Consistent with government fiscal measures
 Considered crucial to the efficient discharge of governmental functions
o Required for the day-to-day operations
o In pursuit of the principal mandate of the procuring entity concerned
 The APP shall include provisions for foreseeable emergencies based on
historical records.
 No procurement unless in accordance with the Annual Procurement Plan
(APP)

 Approval of the APP by the Head of Procuring Entity (HoPE) or designated

second-ranking official is mandatory
Source: Budget Operations Manual for Local Government Units
 END BUDGET TECHNICAL
USER OFFICE WORKING GROUP

BIDS AND AWARDS COMMITTEE (BAC) & APPROVING

BAC SECRETARIAT AUTHORITY/HoPE
Source: Budget Operations Manual for Local Government Units
  A guide document in the procurement and contract
implementation process, as well as a vital reference
in procurement monitoring.

 Tool allowing the PE the flexibility to optimize the

utilization of scarce resources.
 Minimize the practice of doing short-cuts

 Each end-user unit shall prepare the PPMP during the budget preparation to
support the cost estimates in the budget proposal.

 The end-user or implementing units shall be responsible for the preparation

of all documents necessary for the procurement activity, including but shall
not be limited to, the technical specifications, scope of work, or terms of
reference
During Budget Preparation/Budget Call
HOPE/Approving
Body
BAC &
Secretariat

Budget Submit Indicative

Office Consolidation of
APP and budget
proposal to
PPMPs to
HOPE/oversight
Indicative APP by
body for approval
Submit to BAC Sec and
End-User Budget Office recommendation
for evaluation by BAC of modality
Unit
Prepare Project
Procurement
Management
Plan (PPMP)
Source: Budget Operations Manual for Local Government Units
Downloadable at [Link]
 Contracting
Arrangement

Estimated Type and

budget Objective

PPMP
Time
Extent/size
schedule

Procurement
Methods
Suggested basis for identifying needs:

1. Core functions of the end-user unit in the organization, i.e

Accounting, Legal etc.

2. Historical data/Foreseen contingencies;

3. Identified purpose/goals/MFOs;

4. P.E’s Strategic Plans;

5. Current supply inventory;

6. Other maintenance and operating needs.

 Consult Stakeholders

 In developing the project requirements and TS/SOW/TOR, the Procuring

Entity may engage the services of technical experts, whether in-house or

consultants, to ensure that the requirements and the TS/SOW/TOR are

adequate to achieve the objectives of the particular procurement.

 Set CLEAR Specifications:

- Generic and flexible

- Clear and unambiguous

- Reminder on Reference to Brand Names (Section 18)

- Updated, where technology is taken into account

- Fits the actual requirements of the PMO/End-user

 REQUIREMENT SPECIFICATION

Every purchase requires some form of requirement

specification no matter how simple.

• A requirement specification is a condition or

capability that must be met or possessed by a
system, product, service, result or component to
satisfy the end-user’s requirements.

22
 REQUIREMENT SPECIFICATION

The specification is the “heart” of the procurement

transaction

• It defines client’s needs

• It tells buyer what to buy
• It tells supplier what is required
• It sets standards for quality

23
 TYPES OF SPECIFICATIONS

1. Functional
• Purpose, duty, role or function

2. Performance
• Capability, input/output criteria, performance characteristics

3. Technical
• Detailed physical characteristics

24
FUNCTIONAL DESCRIPTION

 description of the functions for which the Goods are to be utilized

EXAMPLE:

The ballpen is expected to write 1.5 km

of straight, continuous lines.

PERFORMANCE DESCRIPTION

 refers to the manner that the Goods are required to perform the

functions expected of them

EXAMPLE:

A ballpen that writes at 1.5 km

continuously and smoothly.

ENVIRONMENTAL INTERFACE

 refers to the environment in which the required functions are

performed at the desired level

EXAMPLE:

The ballpen should write continuously for

1.5km on a notebook, but not necessarily

on a white board.
DESIGN

 refers to the technical design or drawing of the goods being

procured

EXAMPLE:

The ballpen should be comfortable to use

by left-hand writers.
 The ABC reflected in the APP and PPMP shall be consistent with the
appropriations for the project authorized in the GAA, continuing and
automatic appropriations, the corporate budget, and the Appropriations
Ordinance, as the case may be.
 For multi-year contracts, for which a Multi-Year Obligational Authority (MYOA)
or an equivalent document is required, the ABC shall be that incorporated in
the project cost reflected in the MYOA or equivalent document
 For Foreign-funded Procurement, the ABC refers to the cost estimate
prepared by the PE and approved by the foreign government/foreign or
international financing institution as specified in the Treaty or
International or Executive Agreement
 End user to conduct market study

 Market price, inflation and cost of money related to the procurement time
table must also be considered.

 In determining the ABC, the end-user unit, with the assistance of the TWG
(when necessary), must consider the different cost components.
Cost Components which may be considered:

 Cost or market price of the product or service itself;

 Freight, insurance, taxes, and other incidental expenses (For goods only);
 Cost of money, to account for government agencies usually buying on
credit terms;
 Inflationary factor (For goods only);
 Quantities, considering that buying in bulk usually means lower unit
prices;
 Supply of spare parts and/or maintenance services, if part of the
contract package (For goods only);
Factors to consider in identifying procurement timelines:

1. Budget rules, i.e. CSE – every quarter;

2. Nature of Procurement Projects, whether simple or complex

3. For shopping/small value procurement, give at least two weeks

4. Foreseen/Unforeseen Contingencies, i.e. frequent change in

specifications, etc.

5. Availability in the market.

 As a general rule, all procurement
should be through Public Bidding

 The selection of the method of

procurement is dependent on the
presence or absence of specific
conditions of other methods of
procurement in Sections 48 to 54 of
the revised IRR
 Purchase Request (PR) – Request for purchase or requisition of
supplies, materials and equipment or its equivalent shall be duly
approved by proper authorities. (Source: Training Handbook on
Government Expenditures)

 In no way that the End-user Unit submit their P.R. ahead of the
approved PPMP item.
 Legal Basis: Section 7 of the revised IRR of RA 9184
 Refers to the entirety of the procurement activities that will be
undertaken by the procuring Entity within the calendar year using the
prescribed format issued by the GPPB.
 Shall be consolidated by the BAC Secretariat from the PPMPs of end-
user units. The BAC shall take into consideration the following factors:
 One year planning perspective
 Emergency or Contingency Fund
 Schedule of Activities
 No procurement shall be undertaken unless in accordance with the
approved APP

 All procurement should be meticulously and judiciously planned by

procuring entity

 APP should be maintained and updated regularly

 In the consolidation of PPMPs, the BAC may adopt a strategy through
where similar items of procurement are packaged into one
procurement undertaking.

 A review and updating of the individual PPMPs and the APP shall be
done regularly, at least once every 6 months or as often as necessary.
The end-user or implementing units shall be responsible for the
changes to the PPMPs, while the BAC Secretariat shall be responsible
for the consolidation of these PPMPs into an APP.
 1 2 3 4 5 6 7 8

Per GPPB Circular 07-2015

• Column 1 - Code (UACS/PAP)
• Column 2 - Procurement Program/Project
• Column 3 – PMO/End-user
• Column 4 – Mode of Procurement
• Column 5 – Schedule of Each Stage of the Procurement Activity
• Column 6 - Source of Funds
• Column 7 - Estimated Budget
• Column 8 - Remarks (Brief Description of the P/A/P)

D o w n l o a d a b l e a t h tt p : / / w w w. g p p b . g o v. p h / d o w n l o a d a b l e s / S a m p l e Fo r m s . h t m l
GAA, Corporate Budget or Appropriation
Ordinance Becomes Final HOPE/Approving
Body
BAC &
Secretariat
End-User
Unit
Approval of APP
by HOPE/
Consolidation of oversight body
Budget PPMPs to APP by
Office Finalize Project BAC Sec and
Procurement recommendation by
Management BAC of modality
Plans (PPMPs)
Provide
comments on
Indicative
PPMPs to end-
users
  Checking of  Recommendation
procurement of procurement
methods methods by the BAC

 Propose
procurement
methods (End-user)
 Update/
Supplement End-User
PPMP

Consolidate
PPMP/s to BAC &
Updated/
BAC Secretariat
Supplemental
APP

Approve
Updated/
Supplemental HOPE
APP
Procurement Short of Award

 To facilitate the immediate implementation of procurement, even

pending approval of the GAA, corporate budget or appropriations
ordinance, the PE may undertake the procurement activities short of
award
 For a contract with a period not exceeding one (1) year, the ABC shall
be based on the amount in the approved indicative APP as included in
the proposed national budget (NEP) submitted by the President to
Congress; or on budget levels as proposed to the governing board for
GOCCs or in the executive budget for LGUs
 No award of contract shall be made until the GAA or corporate budget
has been approved
 APP being referred to in the IRR of RA 9184 is different from the APP-
CSE

 APP-CSE serves as basis of DBM – PS in projecting its inventory

requirements, scheduling of activities, and over-all management of the
central procurement of common-use goods (DBM Circular Letter 2011-
6 & 2011-6a)

 Common-use supplies – refers to those supplies and materials and

equipment included in the price list of the PS which are necessary in
the transaction of the official business of the procuring entity and
consumed in its day-to-day operations
 Sort by Type of Procurement
Goods Infra Consulting

Check for Items which can be merged

i.e: IT Equipment, Design and Build projects, Office Furniture, etc

Common Use Supplies

CSE NON-CSE

Mode of Procurement

Sources of Funds
Value for Money Source

Time/ Quantity
Delivery

PROCUREMENT

Price Quality
3.2. Annual Procurement Plan (APP) – the requisite document that the
agency must prepare to reflect the entire procurement activity (i.e.,
goods, services, civil works to be procured) that it plans to undertake
within the calendar year. This document contains the following
information:

3.2.1. Name of the procurement program/project;

3.2.2. Project management office or end-user unit;
3.2.3. General description of the procurement;
3.2.4. Procurement method to be adopted;
3.2.5. Time schedule for each procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the Contract.
1. To verify if the procuring entity has an Annual Procurement Plan (APP)

2. To verify if the APP is approved by the HOPE or by a second-ranking

official designated by the HOPE to act on his behalf

3. To verify if the APP contains the following information:

a. name of the procurement program/ project;
b. project management office or end-user unit;
c. general description of the procurement;
d. procurement method to be adopted;
e. time schedule for each procurement activity;
f. source of fund;
g. approved budget for the contract.
4. To verify if the APP is supported by PPMPs prepared by the respective
end-user units

5. To verify if the items in the approved APP were included in the PPMPs

6. To verify if the APP matches the budget per GAA, corporate budget,
appropriation ordinance, as the case may be
1. Possible COA AOMs/Disallowances

2. Wastage of Government Funds

3. Suspension of Officials

4. Possible administrative/criminal liabilities

5. Project Delays

6. Project Failures
CONTACT US AT:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email address: gppb@[Link]