Procurement Planning Linkage

with Budgeting

Your company information

 Summary of Topic
Session I Principles and Practices of Public Procurement

Session II Legal and Administrative Environment of Philippine

Public Procurement

Session III Procurement Organization Framework

Session IV The Philippine Government Electronic Procurement

System (PhilGEPS)

Session V Procurement Planning

Session VI Procurement of Goods

Session VII Contract Management and Administration of Goods

Session VIII Ethics

Issues and Concerns on Planning
and Budgeting
PRIMARY CAUSES OF DELAYS AND FAILURE OF BIDDING
(Based on APCPI Confirmation Result of Participating Agencies)
CAUSES OF DELAYS IN PROCUREMENT
(Based on FGD Result)
 Eliminating Underspending Government
is spending close to program

Republic of the Philippines 6

Department of Budget and Management
 Session V

Procurement
Planning
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
4. Procurement Monitoring
4.1 Importance of Monitoring
4.2 Preparing the PMR
 Philippine Procurement
Paradigm

Assess • Post/Advertise Procure

• Review studies opportunity
• Consolidate into APP • Open and evaluate bids
• Decide procurement • Post-qualify
method • Award and enter into
• Approve APP contract
• Determine readiness

Implement
• Oversee
Identify • Cost-benefit analysis implementation
• Feasibility study • Inspect and accept
• Market study deliveries
• PPMP • Release payment
Planning

Planning

Refers to
predetermined course/s
of action to achieve a
desired end/goal
Procurement Planning

•PROCUREMENT PLANNING

“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”
 Why Procurement Planning?

 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

 LINK BETWEEN
PROCUREMENT PLANNING
AND
THE BUDGET PROCESS
 Procurement Planning
and Budget Linkage

Procurement planning is a critical component of

a Procuring Entity’s budget

PROCUREMENT PLANS
- Meet overall goal
- Manage and track procurement up to contract performance
- Determine cash and other resource allocations; Identify
potential choke points, weaknesses, and delays
Budget Process
Procurement Planning
and Budget Linkage

• budgetary priorities and activities

• available resources and borrowing limits
Budget Process
for NGAs
 Budget Process

Budget Priorities/ Stakeholder Program

Budget Call Engagement Budgeting
Forward stimates

Consolidation,
Presentation Budget Hearings
Validation & Agency
to the & Executive
Confirmation Proposals
President & Reviews
Cabinet

President’s Budget
 Budget Preparation

President’s
Budget After SONA
 DBM
Budget Call
Procuring Entity
Agency Budget
Proposal
 Two Levels in Procurement Planning

• Agency’s over-all strategic plan

• Project and/or operational plans

WORK AND FINANCIAL PLAN (WFP)

 WORK AND FINANCIAL PLAN (WFP)

• list of projects/requirements of each project management office

(PMO)/end-user unit and estimated budget
• submit to the Budget Office for the Budget Proposal sent to the
DBM
Issuance of budget authorities to agencies for
program/project implementation
SOURCE: “Budgeting 101”, Dir. Carmencita P. Mahinay, DBM, DAP 10-21-14
Budget Execution
Multi-Year Project
 PROCUREMENT FOR MULTI-YEAR
PROJECTS

• MYCs are for Multi-Year Projects with an implementation

period exceeding 12 months
• Even under an annual cash based budget, agencies may
enter into MYCs
• All procurement activities should be within the total project
cost and categories reflected in the Multi-Year Obligational
Authority (MYOA)
• Prior to commencement of any procurement activity, a
MYOA must already have been issued.
• GOCCs should secure an equivalent authority from its
governing board
• MYOA should be secured for specific components of FAPs,
when necessary
 Procurement for Multi Year Projects

• MYOA shall accurately show the schedule of the annual

cash requirements of the MYP
• MYPs’ annual cash requirements shall be included in the
agency budget proposals and consequently, the GAA,
annually
• Certificate of Availability of Funds (CAF) should be
issued annually for MYPs based on the budget for the
purpose
• Contracts with implementation period that are 12 months
or shorter should not spill over to the next FY
One Year Projects
 Example No. 1:
8 Months Academic Building Project

Single-year projects should end on or before December

• A project with an implementation

period of eight months should begin
implementation at the latest, by April
so that it is completed by
December

• Payment can be done until

March of the next year
during the EPP
cats-5.jpg Example 2:
Year Road Project
Single-year project should end or or before December

• A road project with an

implementation period of
eight months should begin
implementation of the
latest, by May so that it is
completed by December
• Payment can be done
until March of the next
year during the EPP
Multi Year Projects
 Example 3:
Academic Building Project
MYCs should stick to an annual schedule

• If the project is to be implemented in 36 months, a MYOA

should be secured before starting procurement
• The project will be part of the GAA for three years
• Project should commence on January 2019
• Payment for each phase should be settled every year,
inclusive of the EPP

2019 2020 2021

 Example 4: Year Road Project
MYP’s should stick to an annual schedule

• If the project is to be
implemented in 36 months, Part 3
a MYOA should be secure
before starting
procurement
• The project will be part of Part 2
the GAA for three years
• Project should commence
on January 2019
• Payment for each phase Part 1
should be settled every
year, inclusive of the EPP
Issuance of MYOA
 Procurement Planning

2016 Revised IRR of Republic Act No. 9184

RULE II
PROCUREMENT PLANNING

SEC. 7. Procurement Planning and Budgeting Linkage.

•All procurement should be within the approved budget of the Procuring Entity
and should be meticulously and judiciously planned by the procuring entity
•Only those considered crucial to the efficient discharge of governmental
functions shall be included in the Annual Procurement Plan (APP)
•No government procurement shall be undertaken unless in the approved APP
•The APP shall be formulated and revised only in accordance with the
guidelines set forth in the IRR
 Section 7.1 of IRR
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.
 Section 7.2 of IRR

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
Local Government
Unit
(LGU)
 Application of
Procurement
Planning under
RA 9184

Source: Budget Operations Manual for Local Government Units

Actors in Procurement Planning

TECHNICAL
END USER
WORKING GROUP
BUDGET
OFFICE

BIDS AND AWARDS

COMMITTEE (BAC) & APPROVING
BAC SECRETARIAT AUTHORITY/HoPE
 Functions of Local Treasurer
Local Treasurer

•The Local Treasurer shall submit to the Local Chief

Executive (LCE) a certified statement covering the income
and expenditures of the preceding fiscal year, the actual
income and expenditures of the first two (2) quarters of the
current year, and the estimated income and expenditures
for the last two (2) quarters of the current year (Section
315, RA No. 7160).
 Functions of End-User
End User

•person or organization that will use the project's end product

•Responsible for formulating the requirement, i.e. the goods, services
or works required or the budget from which the requirement will be
purchased
•As soon as the GAA becomes final, end-user units must refine the
proposed PPMP to reflect the budgetary allocation for their respective
PPAs, as provided in the ABM.
•Submit the final PPMPs to the BAC Secretariat for the finalization of
the proposed Procuring Entity’s APP
 Functions of Budget Office
Budget Office

•receives the work and financial plan from the offices

•prepares the budget proposal to be sent to DBM
•Provides copy of WFP and proposed PPMP to BAC
 Functions Bids and Awards
Committee
Bids and Awards Committee (BAC)

•Consolidates the initial list of items / projects for

procurement into the proposed APP
•Submits the finalized APP of the procuring entity to the
Head of the Procuring Entity for confirmation or approval
 Function of BAC Secretariat
BAC Secretariat
•Main support unit of BAC
•Administrative support for BAC and TWG
•Assist in managing the procurement process
•Be the central depository of all procurement related information and
continually update itself with the most current GPPB resolutions
issuances, circulars and events, and downstream the same to all
relevant officer, employees, and parties requiring information.
•Make arrangements for the pre-procurement and pre-bid conferences
and bid openings
•Create, maintain and update the registry of suppliers, contractors, and
consultants
•Create, maintain and update a price monitoring list, if one is
maintained by the Procuring Entity.
 Functions Technical Working
Group
Technical Working Group (TWG)

•Provide assistance to the BAC in terms of

the technical, financial, legal and other
aspects of the procurement at hand
 Functions Head of Procuring
Entity (HOPE)
Head of Procuring Entity (HoPE)
•Approves all documents shall be approved by the Head of the
Procuring Entity prior to any submission to other approving bodies.
•Ensure that the APP is regularly prepared, reviewed, and updated by
the PMOs and end-user units
•Establish the BAC and the BAC Secretariat
•Ensure that BAC and BAC Secretariat prioritizes BAC assignments
over other duties and responsibilities
•Ensure that the staff of the procurement unit/office and the members
of the BAC, BAC Secretariat and TWG are given ample training on
procurement and related matters
•Ensure receipt of incentives of BAC and TWG
•Impose administrative sanctions on errant members of the BAC
Secretariat/BAC/TWG (Revised IRR RA 9184, Section 70)
Q and A

49
Procurement Planning
 Procurement Planning

• an agency or organization identifies its future needs

and the consequent direction
• entails the evaluation of every aspect in the
purchase of goods or services
 Procurement Planning

• Identifying which project needs can be best met

by procuring products and services outside the
project organization
 Procurement Planning

• The following competencies are required:

 Knowledge of goods (familiar with the goods to procure)

 Accounting (Number of items to be procured)
 Warranty (usually one (1) year) and contract laws, and
 Scheduling (time of delivery based on PPMP submitted)
 Procurement Planning

• Agencies and organizations must:

 apply the rules in procurement when planning

 know and understand the scope of their approved

purchasing authority and use appropriate
procurement methods

 protect the taxpayers’ interests and safeguard the

resources allotted to each department
 Actors in Procurement Planning

END USER
 ACTIVITIES IN
PROCUREMENT
PLANNING
 Procurement Planning

• Encompasses activities related to the identification of

supply requirements of the procuring entity, including
work or product specification, quantity and timing, or
scheduling, as well as the search for possible sources of
supply

Source: “Developing a Career Stream for Public

Procurement Practitioners”, Boncodin, 2009
ACTIVITIES IN PROCUREMENT PLANNING

Source: “Developing a Career Stream for Public

Procurement Practitioners”, Boncodin, 2009
Knowledge and Skills Requirements
for Procurement Function
 Scheduling

Schedule = listing of activities and events organized by

time.
Scheduling = process of examining all program activities
and their relationships to each other in
terms of realistic constraints
 Scheduling

• Project Managers (PMs)

 must have a good working knowledge of scheduling
practices and applications

 able to understand and analyze schedules created by

others to manage a program

In public procurement, most procurement activities do

not have a specific project manager, it is usually the
END USER.
Scheduling
 SCHEDULING

• Near-term scheduling can and should be accomplished

in sufficient detail to support management at each level.
• Far-term, or rolling-wave, scheduling will be less precise,
accounting
Five-step Process for Schedule
Preparation
 Base Line Plan

• Provides projections of project factors

• Covers the projected time lines, costs and details,
including milestones and deadlines
• Projection that will set the course of a project
• Presents a macroscopic view of the project
• Serves as an easy reference to the tasks expected to be
completed, when completion is due, the processes and
key persons involved, and costs
• Should be flexible but must attain a level of accuracy
 Forecasting

• Provides an important input into a planner’s decision-making

process
• Stems from the fact that important decisions have to be
made today which would affect a yet to be determined
tomorrow
 Forecasting

IMPORTANT CONSIDERATIONS

1.Time Horizon
2.Technology and Technical
Capability
3.Cost
4.Data Availability
5.Variability and Consistency of Data
6.Amount of Detail Necessary
7.Accuracy
8.Turning Points
 FORECASTING TECHNIQUES

METHODS BASED ON
JUDGMENT

• Unaided judgment • Judgmental bootstrapping

• Prediction markets • Expert systems
• Delphi • Simulated interaction
• Structured analogies • Intention and expectations
• Game theory surveys
• Judgmental decomposition • Conjoint analysis
 Unaided Judgement
• It is common practice to ask experts what
will happen. This is good procedure to use
when
– Experts are unbiased
– Large changes are unlikely
– Relationship are well understood by experts
– Experts possess privileged information
– Experts receive accurate and well summarized
feedback about their forecasts
 Prediction Market
• Also know as betting markets, information
markets, and future markets
• Consultants can also set up betting market
within firms to be such things as at the
sales growth of new products. Some
unpublished studies suggest that they can
produce accurate sales forecasts when
used within companies
 Delphi
• To forecast with Delphi the administrator should recruit
between five and twenty suitable experts and poll them
for their forecasts and reasons. The administrator then
provides the experts with anonymous summary statistics
on the forecasts, and experts reasons for their forecasts.
The process is repeated until there is little change in
forecasts between rounds – two or three rounds are
usually sufficient
 Game Theory
• is a mathematical method for analyzing method for
analyzing calculated circumstances, such as in games,
calculated circumstances, such as in games, where a
person’s success is based upon the where a person’s
success is based upon the choices of others.choices of
others.
• The ability of game theorists was tested in 2005, they
were urged to use game theory in predicting the
outcome of eight real (but disguised) situations. In that
study, game theorists were no more accurate than
university students.
 Judgemental bootstrapping
• converts subjective judgments into structured
procedures. Experts are asked what information they
use to make predictions about a class of situations. They
are then asked to make predictions for diverse cases,
which can be real or hypothetical. For example, they
might forecast next year’s sales for alternative designs
for a new product. The resulting data are then converted
to a model by estimating a regression equation relating
the judgmental forecasts to the information used by the
forecasters
 Simulated interaction
• Is a form of role playing for predicting decisions by
people who are interacting with others. It is especially
useful when the situation involves conflict. For example,
one might wish to forecast how best to secure an
exclusive distribution arrangement with a major supplier.
 Intentions and expectations
surveys
• People are asked how they intend to
behave in specified situations. In a similar
manner, an expectations survey asks
people how they expect to behave.
Expectations differ from intentions
because people realize that unintended
things happen.
 Conjoint Analysis
• By surveying consumers about their preferences for alternative
product designs in a structured way, it is possible to infer how
different features will influence demand.
• Eg. potential customers might be presented with a series of perhaps
20 pairs of offerings. The potential customer is thus forced to make
trade-offs among various features by choosing one of each pair of
offerings in a way that is representative of how they would choose in
the marketplace. The resulting data can be analysed by regressing
respondents’ choices against the product features. The method,
which is similar to bootstrapping, is called ‘conjoint analysis’
because respondents consider the product features jointly.
 FORECASTING TECHNIQUES

METHODS REQUIRING • Extrapolation

QUANTITATIVE DATA • Data mining
• Quantitative
analogies
• Rule-based
forecasting
• Neural nets
• Causal models
• Segmentation
 FORECASTING TECHNIQUES

• Assessing the best technique:

1. What is the purpose of the forecast – how is it to be

used?
2. What are the dynamics and components of the system
for which the forecast will be made?
3. How important is the past in estimating then future?
 Specifications

DEVELOPING PROJECT REQUIREMENTS

 SPECIFICATIONS

TECHNICAL SPECIFICATIONS, SCOPE OF WORK,

TERMS OF REFERENCE

• Consult Stakeholders
• Engage Technical Experts
• Set clear Specifications
o Generic and Flexible
o Reminder on Reference to Brand Names (RA 9184,
Section 18)
• Consider changes to technology
 SPECIFICATIONS

Republic Act No. 9184

ARTICLE VI
PREPARATION OF BID
DOCUMENTS

SEC. 18. Reference to Brand Names.

•Specifications shall be based on relevant characteristics
and/or performance requirements.
•Reference to brand names shall not be allowed.
 Procurement of Goods and Services

TECHNICAL SPECIFICATIONS: FACTORS TO CONSIDER

1. Nature of Goods to be
Procured

 common-use supplies
 inventory items
 non-common use
supplies
 services
 Procurement of Goods and Services

TECHNICAL SPECIFICATIONS:
FACTORS TO CONSIDER
2. Availability in the Market

• determines the mode of

procurement to
implement
• seasonal or customized
goods may require
intensive planning in
terms of timelines
 Procurement of Goods and Services

TECHNICAL SPECIFICATIONS:
FACTORS TO CONSIDER
3) Operation, and
maintenance of Obsolescence of
equipment/non- equipment/non-
consumable goods consumable goods
• consideration on the •crucial in deciding
operation and whether to lease or buy
maintenance
requirements of goods to
be procured
• warranty requirements
 Procurement of Goods and Services

Procurement of Goods and Services

 refers to the physical description of goods or

services
 Procuring Entity's requirements in terms of
functional, performance, environmental interface,
and design standard requirements
 must include the testing parameters for goods
 Procurement of Goods and Services

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.
 Procurement of Goods and Services

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.
 Procurement of Goods and Services

TECHNICAL SPECIFICATIONS
CONSIDERATIONS
1. Objectives of the project or procurement
2. Standards that should be met by the goods in terms of
function, performance, environmental interface and/or
design

MARKET
SURVEY

SOURCE: “Vol. 2 Manual of Procedures for the Procurement of Goods and

Services”, GPPB
 MARKET SURVEY / STUDY

• USES
 defining requirements
 preparing budgets
 choosing procurement method
 planning and scheduling of procurement
 evaluation of bids/proposal
 justify contract amendments

SOURCE: http://www.procurementclassroom.com/market-study-in-public-
procurement/
 MARKET SURVEY/STUDY

• CONDUCTED
THROUGH:
• Internet
• Survey
• Interview
• Study

SOURCE:
http://www.procurementclassroom.com/market-
study-in-public-procurement/
 MARKET SURVEY/STUDY

• EXPECTED
RESULTS:
• Identification, interest
and availability of
suppliers, contractor or
services providers,
their technical
capability and financial
capacity
• Price trends

SOURCE:
http://www.procurementclassroom.com/market-
study-in-public-procurement/
 Procurement of Infrastructure Projects

• Requires appropriate timing/phasing of related project

activities, such as engineering design and acquisition of
right-of-way to reduce/lower project costs, among others

SOURCE: “Vol. 3 Manual of Procedures for the Procurement of Infrastructure Projects”,

GPPB
 Procurement of Infrastructure Projects

• establishes the technical viability of the project and

conformance to land use and zoning guidelines
prescribed by existing laws

SOURCE: “Vol. 3 Manual of Procedures for the Procurement of Infrastructure Projects”,

GPPB
 Procurement of Infrastructure Projects

Republic Act No. 9184 Implementing Rules and

Regulations
RULE VI
PREPARATION OF BID DOCUMENTS
SEC 17.6. Detailed Engineering for the Procurement of
Infrastructure Projects
•No bidding and award of contract for infrastructure projects
unless the detailed engineering investigations, surveys and
designs, including the acquisition of the ROW, are
sufficiently carried out and duly approved
•Exception: design and build scheme
 Procurement of Infrastructure Projects

TECHNICAL SPECIFICATIONS
CONSIDERATIONS
1. Promote the broadest possible competition, while assuring
the critical performance or other requirements for the goods
and/or works under procurement
2. Compliance to internationally accepted standards or
national standards
3. Compliance of equipment, material or workmanship to other
standards (at least substantial equivalent) is stated in the
bidding documents

SOURCE: “Vol. 3 Manual of Procedures for the Procurement of Infrastructure Projects”,

GPPB
 Republic Act No. 912
AN ACT TO REQUIRE THE USE, UNDER CERTAIN CONDITIONS, OF
PHILIPPINE MADE MATERIALS OR PRODUCTS IN GOVERNMENT
PROJECTS OR PUBLIC WORKS CONSTRUCTION, WHETHER DONE
DIRECTLY BY THE GOVERNMENT OR AWARDED THRU CONTRACTS

• Use of Philippine-made materials and products in construction

and repair work

• the Director of Public Works shall prepare a list of building and

construction materials and products made in the Philippines
that are available, durable, usable and practicable for
construction and building purposes
 Procurement of Consulting Services

ACTIVITIES IN PROCUREMENT PLANNING

• Preparation of the draft terms of reference by the

end user
• Determination of the mode of procurement
• Type of consultant (e.g. individual or firm, local or
foreign)
• Determination of the Approved Budget for the
Contract

SOURCE: “Vol. 4 Manual of Procedures for the Procurement of Consulting

Services”, GPPB
 Procurement of Consulting Services

DRAFTING OF TERMS OF REFERENCE

• Describe the Output Expected from the

Consultancy as a Whole
• Prepare lists of tasks or duties for individual
experts
• Indicate basic qualifications for each expert

SOURCE: “Consulting Services Operation Manual”, ADB,

2008
 Procurement of Consulting Services

PROPRIETARY RIGHTS OF CONSULTANTS

• Republic Act No. 8293        
• AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY CODE
AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR OTHER
PURPOSES
– Section 178. Rules on Copyright Ownership.
• Work created by the author during the course of employment
shall belong to the author if not part of regular duties; otherwise
the work belongs to the employer
• If the person who commissioned the work is not an employer,
the copyright remains with the author but the ownership of the
work is the person who commissioned the work, unless there is
a written stipulation to the contrary
Approved Budget for
the Contract
 IDENTIFYING THE APPROVED BUDGET FOR
THE CONTRACT (ABC)

• The appropriation for the project or procurement if taken

from the current year’s appropriations or continuing
appropriations
• The market price of the goods and/or services
• Inflation and cost of money related to the procurement
time table
 Acquisition Cost
 Operation Cost
 Replacement/Repair Cost
 IDENTIFYING THE APPROVED BUDGET FOR
THE CONTRACT (ABC)

• Budget for the contract duly approved by the Head of the

Procuring Entity, as provided for in:
1. The GAA and/or continuing appropriations, in the case of
NGAs
2. The corporate budget for the contract approved by the
governing board, pursuant to E.O. No. 518, series of
1979, in the case of GOCCs and GFIs; and R.A. No.
8292, in the case of SUCs; or
3. The budget approved by the Sanggunian in the case of
LGUs
In R.A. 9184 and its IRR, ABC refers to the budget for the contract duly approved
by the Head of the Procuring Entity, as provided in the GAA, continuing, and
automatic appropriations; Corporate Budget; Appropriation Ordinance, as the case
may be, based on the indicative APP as consolidated from various PPMPs.
 IDENTIFYING THE APPROVED BUDGET
FOR THE CONTRACT (ABC)

FACTORS TO CONSIDER

 The cost or market price of the product or service itself

 Incidental expenses like freight, insurance, taxes,
installation costs, training costs, if necessary, and cost of
inspection
 The cost of money, to account for government agencies
usually buying on credit terms
 Inflationary factor, since the planning phase is usually done
one year ahead of the actual procurement date

SOURCE: “Vol. 2 Manual of Procedures for the Procurement of Goods and

Services”, GPPB
 IDENTIFYING THE APPROVED BUDGET FOR
THE CONTRACT (ABC)

FACTORS TO CONSIDER

 Inflationary factor, since the planning phase is usually

done one year ahead of the actual procurement date
 Quantities, considering that buying in bulk usually
means lower unit prices (goods/services)
 The supply of spare parts and/or maintenance services,
if these are part of the contract package
(goods/services)

SOURCE: “Vol. 2 Manual of Procedures for the Procurement of Goods and

Services”, GPPB
 APPROVED BUDGET FOR THE CONTRACT (ABC)

 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
SOURCING
– Sourcing is simply “Identifying and working with
appropriate suppliers”.

SOURCE: Mangan, J., Lalwani, C. and Butcher, T. 2008, "Global Logistics and Supply Chain
Management", Hoboken, NJ, USA, John Wiley and Sons, Inc.
RECOMMENDATION
PPMP and APP
 PPMP and APP

• Section 7.2. of 2016 Revised IRR of RA 9184

• No procurement shall be undertaken unless it is in

accordance with the approved (APP) including
approved changes thereto. The APP must be
consistent with the duly approved yearly budget of the
Procuring Entity and shall bear the approval of the
HOPE or Second-Ranking Official designated by the
HoPE to act on his behalf
 PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
(Section 7.3.2. of 2016 Revised IRR of RA 9184)

• The end-user units of the Procuring Entity shall prepare

their respective PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP) for their different programs,
activities and projects (PAPs).
• The Procuring Entity’s Budget Office shall evaluate each
end-user’s submitted PPMP.
 Project Procurement Management Plan (PPMP)

The PPMP shall contain the following information:

a) information on whether PAPs will be contracted out, implemented by
administration in accordance with the guidelines issued by the GPPB, or
consigned;
b) the type and objective of contract to be employed;
c) the extent/size of contract scopes/packages;
d) the procurement methods to be adopted, and indicating if the
procurement tasks are to be outsourced as provided in Section 7.3.3 of
this IRR;
e) the time schedule for each procurement activity and for the contract
implementation; and
f) the estimated budget for the general components of the contract.

Refer to Appendix 1 for the Revised Guidelines for the Implementation of

Infrastructure Projects By Administration
Project Procurement Management Plan (PPMP)
 Project Procurement Management Plan (PPMP)

• Deals primarily with the following in an effort to obtain

goods, infrastructure and services from suppliers,
contractors and consultants:
a. planning for the procurement of project requirements
b. bidding or procurement strategy
c. source selection
d. delivery and payment schedules
e. contract administration
f. contract termination
g. other major milestones

SOURCE: “Vol. 1 Guidelines on Establishing Procurement Systems and

Organizations”, GPPB
 Project Procurement Management Plan (PPMP)

• vital reference in procurement monitoring

• important tool in resource and financial
management
• allows the Procuring Entity to optimize the
utilization of scarce resources

SOURCE: “Vol. 1 Guidelines on Establishing Procurement Systems and

Organizations”, GPPB
 PREPARATION OF PPMP

END USER BIDS AND AWARDS

Prepares PPMP COMMITTEE (BAC)
Reviews and
consolidates
PPMPs into APP

APPROVING
AUTHORITY/HoPE
BUDGET OFFICE
Approve GAA/
Evaluates PPMP and
Corporate Budget/
includes in budget
Ordinance 119
proposal
 REVISION OF PPMP

END USER
Revises PPMP APPROVING
AUTHORITY/HoPE
Approves APP

BIDS AND AWARDS

COMMITTEE (BAC)
Revises APP and Finalizes mode 120
of procurement
 Second Step
ANNUAL
PROCUREMENT
PLAN (APP)
 Annual Procurement Plan (APP)

• Document that consolidates

the various PPMPs submitted
by the various PMOs and
end-user units within the
Procuring Entity

• Reflects the entirety of the

procurement activities that
will be undertaken by the
Procuring Entity within the
calendar year
 Annual Procurement Plan (APP)

• The APP shall contain the following information:

a. Name of the project/procurement
b. PMO or end-user unit
c. General description of the project/procurement (requirements and
quantities, where applicable)
d. The procurement methods to be adopted, including if the
procurement tasks are to be outsourced
e. The time schedule for each procurement activity
f. The Approved Budget for Contract (ABC)
 PREPARATION OF APP
Procedure under the 2016 IRR of RA
9184

When GAA, Corporate

Budget or
Appropriation
Ordinance becomes
Submit Indicative final, PPMPs will be
APP and budget finalized and submitted
proposal to to BAC Secretariat for
Consolidation
HOPE/oversight consolidation, to BAC
of PPMPs to
body for approval for final
Indicative APP
recommendation of
Submit to by BAC Sec
modality and final
Budget and
approval of the HOPE
Office for recommendatio
evaluation n by BAC of
Prepare Project modality
Procurement
Management
Plan (PPMP) During Budget Preparation
124
 Preparation of APP

• In preparing the APP, the BAC shall take into

consideration the following factors:
 The APP should include all procurement activities
planned for the year. The approved APP shall be the
basis for the Procuring Entity’s procurement, and only
those projects / procurement included therein shall be
undertaken
 The APP shall include only those procurements that are
considered crucial to the efficient discharge of
governmental functions. (i.e., required for the day-to-day
operations of the Procuring Entity or in pursuit of the
principal mandate of the Procuring Entity concerned
SOURCE: “Vol. 1 Guidelines on Establishing Procurement Systems and
Organizations”, GPPB
 Preparation of APP

In preparing the APP, the BAC shall take into consideration the following factors:

• The APP shall include provisions for foreseeable

emergencies based on historical records. (e.g., lump sum
not more than 4% of the Procuring Entity’s total
appropriations for MOOE)
• Scheduling of procurement activities should be done with
the involvement of BAC and the other offices/units in the
Procuring Entity to efficiently manage the conduct of
procurement transactions. Project implementation timelines
should be met.

SOURCE: “Vol. 1 Guidelines on Establishing Procurement Systems and

Organizations”, GPPB
 Annual Procurement Plan (APP)

Procurement Short of Award

To facilitate the immediate implementation of procurement,
even pending approval of the GAA, corporate budget or
appropriations ordinance, as the case may be, 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; on budget
levels as proposed to the governing board for GOCCs
No award of contract shall be made until the GAA or
corporate budget has been approved
 Consolidation of PPMP’s into APP

• Upon confirmation of availability of budget, BAC

Secretariat will consolidate information from
PPMP to the APP
• Similar projects shall be consolidated into one (1)
entry in the APP
• Procurement Delivery Schedule shall be as is
with PPMP
• However, other procurement activity schedules
shall be merged to take advantage of volume
discounts
 Consolidation of PPMP’s into APP

• Source funds shall be

identified.
Reprogram
• Similar items with
different source of funds
shall be separate
entries.
GAA Others
• For items in the PPMP
that were consolidated,
the budget shall be
totaled
 Tips: Consolidation of PPMPs

• All procurement shall be separated whether goods, civil

works or consulting
• Civil works or consulting services are usually distinct
entries in the APP, unless the PE finds merit in merging
infrastructure project scopes (civil works) or deliverables
(consultants)
• Goods procurement can be separated into three
categories: common-use supplies (CSE) from the
Procurement Service (PS), common-use supplies (non-
PS), other goods procurement
 Tips: Consolidation of PPMPs

• All CSE whether for procurement from

PS or not shall be consolidated into
an APP-CSE which shall be submitted
to the Procurement Service
• For the APP, CSE shall be separated
whether to be bought from the PS and
CSE which shall be bought outside
the PS
• All partitions shall again be separated
into mode of procurement (public
bidding or alternative methods)
• All entries can then be grouped by
source of funds
 PPMP CONSOLIDATION

• Checking of • Recommendation of
procurement procurement methods
methods by the BAC

• Propose procurement
methods (End-user)

132
132
Revision of APP

Update PPMP

Consolidate
PPMP to APP

Approve
Supplemental
APP
 Amendments to PPMP and APP
• Section 7.4 of 2016 Revised IRR
– Changes to the Individual PPMPs and the consolidated APP
may be undertaken every six (6) months or as often as may be
required by the HoPE
– The respective end-user or implementing units of the Procuring
Entity 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, which shall be subject to the
approval of HoPE
– Changes on the APP, if any, for the budget year shall be
submitted to the GPPB in July of the current year, and in
January of the following year

134
 APP CSE
Procurement Service
Department of Budget and
Management

135
 APP vis-à-vis APP-CSE
 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

136
 APP vis-à-vis APP-CSE

 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
APP-CSE

138
 APP Submission of Agencies to PS DBM

• As of February 12, 2018

Cases
Department of Interior
and Local Government
 D.I.L.G.

• The Office of the Ombudsman has directed the

Department of the Interior and Local Government to
implement the three-month suspension order against
nine officials of the province of Iloilo for irregularities in
the procurement of medicines and medical supplies.
Found guilty of Simple Misconduct were (Provincial
Accountant, Assistant Provincial Accountant, and
members of the Bids and Awards Committee (BAC).
D.I.L.G.
 D.I.L.G.
• “Even if the procurement could be considered emergency
purchases, the absence of a BAC resolution recommending the
alternative mode of procurement, not only violated Section 12, R.A.
No. 9184 (Government Procurement Reform Act), but also
demonstrated the BAC’s blind adherence to the purchase requests
without regard to its responsibility of ensuring that the procuring
entity abides by the standards set forth by R.A. No. 9184 and its
IRR,” explained the Ombudsman.
•  Simple Misconduct has been defined as an unacceptable behavior
that transgresses the established rules of conduct of public officers.
It is considered as unlawful behavior.
DAPA SURIGAO
DEL NORTE
 Dapa Surigao D.N.
• FACTS:  
• Re-elected Dapa, Surigao del Norte mayor was sentenced to
maximum of eight years of imprisonment as the Sandiganbayan
Third Division found him guilty of graft over anomalous purchase
of heavy equipment in 2008 amounting to P13.031 million.
• Also found guilty were former municipal budget officer and Bids
and Awards Committee (BAC) chairperson and BAC members.
• CASE:
• “In sum, we find accused...to have acted together with manifest
partiality and gross inexcusable negligence in the conduct of an
irregular bidding process and by pre-determining the supplier for
the heavy equipment prior to the bidding process, thereby giving
unwarranted benefit, advantage and preference to the supplier, 6-
R Mercantile
 Dapa Surigao D.N.
• The Office of the Ombudsman, which filed the case in 2011, said
the purchase of heavy equipment was not included in the
approved Annual Procurement Plan of Dapa for 2008.
• The ombudsman also said the heavy equipment were already
shipped and delivered by 6-R Mercantile to the municipal
government even before the BAC commenced with the procurement
proceedings.
• Furthermore, the ombudsman said the respondents, without any
valid justification, resorted to a negotiated procurement instead of
a public bidding required under Republic Act 9184 or the
Government Procurement Reform Act.
 Dapa Surigao D.N.
• Decision:
• …. The court said the respondents could not even present the
Annual Procurement Plan of Dapa for 2008 “which could have
been the best evidence to prove the existence of an appropriation
for the intended procurement of the heavy equipment.”
• ….. The court noted, that even accused during her testimony,
“admitted that there were no available funds when they commenced
the bidding process”.
East Avenue Medical
Center (EAMC)
 E.A.M.C.

• FACTS:
• Top officials of the East Avenue Medical Center (EAMC) were
ordered dismissed by the Ombudsman after they were found guilty
of grave misconduct over an anomalous 2006 procurement of
medical supplies and equipment.
• In a statement, Ombudsman Conchita Carpio Morales found the
incumbent officials administratively liable for grave misconduct:
Chief Medical Center, Financial and Management Officer and Chief
Administrative Officer.
• According to the Ombudsman’s investigation, the EAMC in 2006
procured medical supplies worth P10,353,276.75 without public
bidding.
 E.A.M.C.
• CASE
• The procurement was split into 47 small purchases at P250,000
each and awarded only to two suppliers.
• EAMC in 2006 again procured 20 air-conditioners and 13 exhaust
fans worth P450,950 again awarded to one supplier and split into
two small purchases not exceeding P250,000 each.
• In its decision, Ombudsman Morales said that EAMC Officers
committed grave misconduct for their acts that were “blatantly
irregular and outside the bounds of established rules and principles”
when they opted to split the contract instead of procuring the same
in a single transaction, so as to evade public bidding.
 E.A.M.C.

• “There was lack of compelling or justifiable reason for them to split

the contract… (The) respondents failed to show that they obtained
three price quotations from bona fide suppliers,” the Ombudsman
said.
• Morales said the small-value procurement would not have been
consummated without the concerted acts of the officials.
• Morales said it was EAMC Chief who approved all the purchase
requests, purchase orders, disbursement vouchers and checks;
FMO who certified the availability of funds and completeness of
supporting documents; and CAO who signed the purchase requests
and counter-signed the checks.
 E.A.M.C.
• Decision:
• Morales said the splitting of contracts to put the procurement
projects within the threshold of P250,000 was intended to resort to
small value procurement or shopping so as to avoid public bidding.
• According to the Ombudsman, grave misconduct is an
administrative offense of transgression of some established and
definite rule of action, more particularly unlawful behavior or gross
negligence by a public officer, attended with the elements of
corruption, clear intent to violate the law or flagrant disregard of
established rule.
 • GROUP ACTIVITY
• Each group is tasked to simulate the creation of PPMP and APP of
a
• particular company comprising 2 to 3 divisions/departments.
Maraming Salamat po
157
 OUTLINE

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
4. Procurement Monitoring
4.1 Importance of Monitoring
4.2 Preparing the PMR
158
159
PHILIPPINE PROCUREMENT PARADIGM

• Review studies • Post/Advertise

Assess Procure
• Consolidate into APP opportunity
• Decide procurement • Open and evaluate bids
method • Post-qualify
• Approve APP • Award and enter into
• Determine readiness contract

Identify • Cost-benefit analysis • Oversee Implement

• Feasibility study implementation
• Market study • Inspect and accept
• PPMP deliveries
• Release payment

160
Capacity Development Division
PLANNING

PLANNING

refers to predetermined
course/s of action to achieve a
desired end/goal.

161
Capacity Development Division
PROCUREMENT PLANNING

PROCUREMENT PLANNING

 “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”

162
 WHY PROCUREMENT PLANNING
 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

163
163
 SECTION 7.1 OF IRR
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.
164
 SECTION 7.2 OF IRR

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

165
ACTORS IN PROCUREMENT PLANNING

TECHNICAL
END USER WORKING GROUP
BUDGET
OFFICE

BIDS AND AWARDS COMMITTEE

APPROVING
(BAC) & 167
AUTHORITY/HoPE 167
BAC SECRETARIAT
 PROJECT PROCUREMENT MANAGEMENT
PLAN (PPMP)
 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
169
 PREPARATION OF PPMP

During Budget Preparation/Budget Call

Submit Indicative

Consolidation of APP and budget

proposal to
PPMPs to
HOPE/oversight
Indicative APP
body for approval
Submit to by BAC Sec and
Budget recommendation
Office for by BAC of
evaluation modality
Prepare
Project
Procurement
Management
Plan (PPMP)
170
 PPMP SAMPLE FORMAT

Downloadable at http://
www.gppb.gov.ph/downloadables/SampleForms.html
172
 PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)

173
173
 IDENTIFYING THE NEED

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.

175
TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

 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.

176
TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

 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

177
 APPROVED BUDGET FOR THE
CONTRACT (ABC)
 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

182
 APPROVED BUDGET FOR THE
CONTRACT (ABC)
 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.

183
 PROCUREMENT MILESTONES

http://
188
www.gppb.gov.ph/timelines/timelines.htm
PROCUREMENT MILESTONES

189
 PROCUREMENT MILESTONES

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.

190
METHOD OF PROCUREMENT

 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

191
 PPMP vs Purchase Request

 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.

192
 ANNUAL PROCUREMENT PLAN (APP)

 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

193
 ANNUAL PROCUREMENT PLAN (APP)

 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

194
 ANNUAL PROCUREMENT PLAN (APP)

 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

195
 1 2 3 4 6 8
5 7

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)
Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html
196
 Notes to Remember in Filling out APP!
 PE’s internal numbering system or use the Unified
Account Codes (UACS) may be used as PAP Codes.
Please refer to Joint Circular No. 2013-1 COA-DBM-
DOF-Unified Accounts Code Structure.

 For the PMO/End-user column, multiple end-user

units are allowed only if the procurement activity was
consolidated by the BAC to procure requirements of
the end-user units.

 Drop down lists are available for Mode of Procurement

and Source of Funds for ease of use.

197
 Notes to Remember in Filling out APP!
 Specific schedule for Ads/Post of IB/REI (similar to
RFQ), Sub/Open of Bids, NOA and/or Contract Signing
are automatically identified thru MS Excel formula.
Specific period (dates, month, quarter) for each
procurement activity should be indicated.
 Total ABC column cannot be edited but is automatically
computed by filling out the MOOE or CO columns.
Ensure that amounts indicated are aligned with
budget documents.

 For MYOA projects, ABC shall be the full amount

stated in the MYOA with remarks on the amount to be
disbursed on the particular FY.
198
 PREPARATION OF APP
GAA, Corporate Budget or Appropriation Ordinance Becomes
Final

Approval of
APP by HOPE/
Consolidation of oversight
PPMPs to APP by body
Finalize BAC Sec and
Project recommendation
Procurement by BAC of
Management modality
Provide Plans
comments on (PPMPs)
Indicative
PPMPs to
end-users

199
 PPMP CONSOLIDATION

• Checking of • Recommendation of
procurement procurement methods
methods by the BAC

• Propose procurement
methods (End-user)

200
200
 REVISIONS ON APP

End-User Update/
Supplement
PPMP

Consolidate
BAC & PPMP/s to
Updated/
BAC Secretariat
Supplemental
APP
Approve
Updated
HOPE /Supplemental
APP
201
 ANNUAL PROCUREMENT PLAN (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
202
 APP vis-a-vis APP-CSE

 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

203
APP-CSE

204
TIPS IN CONSOLIDATING PPMPS

207
5 RIGHTS IN PUBLIC PROCUREMENT

Value for Money

208
 POSSIBLE CONSEQUENCES

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
212
213
 WHAT IS MONITORING?

Defined as:

Tracking of inputs, activities, outputs, and outcomes of

the procurement activity; and

Tracking results of current operations on a regular basis.

214
 MONITORING AND EVALUATION
 It is the BAC who shall be responsible for ensuring that the procuring
entity abides by the standards set forth under R.A. 9184 and its IRR.
 BAC is required to prepare a PROCUREMENT MONITORING
REPORT (PMR) in the form prescribed by the GPPB.
 The PMR shall cover all procurement activities specified in the APP,
whether on-going and completed from holding of the pre-procurement
conference to the issuance of the notice of award and approval of the
contract, including the actual time for each major procurement activity.
 The PMR shall be approved and submitted by the HoPE to the GPPB
in printed and electronic format within 14 calendar days after the end
of each semester.
( Executive Orders 662, 662-A and 662-B, series of 2007)

215
 WHY MONITOR?

 Checks compliance to R.A. 9184 and its IRR

 Assesses performance as to:

 Efficiency
 Effectiveness

 Ex-post evaluation examines the project outcomes and

impacts. It is a determination of the benefits derived from the
project, the attainment of specific targets for key indicators,
and the sustainability of the project.

 Aids GPPB in crafting policies that address weaknesses and

uphold strengths of the Philippine Procurement System

216
PROCUREMENT MONITORING REPORT (PMR)

Note:
•Latest version of PMR shows separate lists of Completed (top portion) and On-going
Procurement Activities (bottom portion)
Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html
217
 PROCUREMENT MONITORING REPORT (PMR):
CLOSER LOOK

1 2 3 4 5 6 7 8 9 10 11 12 13 1 1 16
4 5

• Column 1 - Code (UACS/PAP)

• Column 2 - Procurement Program/Project
• Column 3 – PMO/End-user
• Column 4 – Mode of Procurement
• Column 5-16 – Actual Schedule of Each Stage of the Procurement Activity
218
PROCUREMENT MONITORING REPORT (PMR):
CLOSER LOOK

17 18 19 20 21 22 23

• Column 17 - Source of Funds

• Column 18-20 - ABC
• Column 21-23 – Contract Cost (Awarded Price)
• Total Allotted Budget of all completed Procurement Activities
• Total Contract Price of all completed Procurement Activities
• Savings
219
PROCUREMENT MONITORING REPORT (PMR):
CLOSER LOOK

24 25 26 27 28 29 31
30

• Column 24 - List of Invited Observers

• Column 25-30 - Date of Receipt by Observers of the Invitation
• Column 31 – Remarks explaining any changes from the APP

220
 SUBMISSION & POSTING
REQUIREMENTS
 APP
 1) Submission to the GPPB (AO 222) and 2) posting in the
procuring entity's website of its APP (Section 1.1 of the IRR
of EO 662), following the form and format downloadable from the
GPPB website
 Changes in the APP, if any, for the budget year shall be
submitted to the GPPB in July of the current budget year, and
in January of the following budget year

 PMR
 1) Submission to the GPPB (Section 12.2 of IRR of RA 9184)
and 2) posting in the procuring entity's website of its
approved Procurement Monitoring Report within 14 calendar
days after each semester, following the form and format
downloadable from the GPPB website (Section 1.2 of the IRR
of EO 662) 223
 THANK YOU!!
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: [email protected]

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