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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

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PHILIPPINE PROCUREMENT PARADIGM

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

Capacity Development Division 4

PLANNING

PLANNING

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

Capacity Development Division 5

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”

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 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

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 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.
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 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

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 ACTORS IN PROCUREMENT
PLANNING

TECHNICAL
END USER WORKING GROUP
BUDGET
OFFICE

BIDS AND AWARDS

APPROVING
COMMITTEE (BAC) &
AUTHORITY/HoPE 11
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
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 PREPARATION OF PPMP

During Budget Preparation/Budget Call

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

Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html

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 PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)

Contracting
Arrangement

Estimated Type and

budget Objective

PPMP
Time
Extent/size
schedule

Procurement
Methods

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 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.

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 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.

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 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

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 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

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 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.

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 DETERMINING THE ABC

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);

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 DETERMINING THE ABC

 Cost for securing all types and forms of securities other

than cash (e.g. premiums for surety bond, bank fees and
other charges to be incurred by the bidder in obtaining
bid, performance and warranty securities); and
 Currency valuation adjustment for contracts with
foreign component.
 Acquisition Cost
 Operation Cost
 Replacement/Repair Cost
 Disposal Cost

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 PROCUREMENT MILESTONES

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

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 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.

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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

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 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.

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 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

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 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

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 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

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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
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 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.

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 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.

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 PREPARATION OF APP
GAA, Corporate Budget or Appropriation Ordinance Becomes Final

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

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 PPMP CONSOLIDATION

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

• Propose
procurement
methods (End-user)

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 REVISIONS ON APP

End-User Update/
Supplement
PPMP

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

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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

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 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

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APP-CSE

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TIPS IN CONSOLIDATING PPMPS

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

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5 RIGHTS IN PUBLIC PROCUREMENT

Source
Value for Money

Time/
Quantity
Delivery

Procurement

Price Quality

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 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

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 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.

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 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)
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 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

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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

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 PROCUREMENT MONITORING REPORT (PMR):
CLOSER LOOK

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

• 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

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 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
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 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

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 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)

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 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: gppb@gppb.gov.ph

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