PROCUREMENT PLANNING

Preparation of PPMP, APP and PMR

CAPACITY DEVELOPMENT DIVISION

Government Procurement Policy Board
Technical Support Office (GPPB-TSO)

Capacity Development Division

Philippine Procurement Paradigm

Assess

Identify

Review studies
Consolidate into
APP
Decide procurement
method
Approve APP
Determine
readiness

Post/Advertise
opportunity
Open and evaluate
bids
Post-qualify
Award and enter
into contract

Cost-benefit
analysis
Feasibility study
Market study
PPMP

Oversee
implementation
Inspect and
accept deliveries
Release payment

Needs

Procure

Implement

Satisfaction
Capacity Development Division

OUTLINE
1.What is planning?
2.Nature of Planning
3.Procurement Planning

3.1 Importance of Planning

3.2 Preparing the PPMP
3.2.1 Identifying the need
3.2.2 Developing project requirements
3.2.3 Technical Specifications
3.2.4 Costing (Determining the ABC)
3.2.5 Procurement Timelines
3.2.6 Procurement Methods
3.2.7 PPMP format
3.3 Consolidating PPMPs into APP
3.3.1 Techniques in consolidating items in the APP
3.4 Updating the PPMP and APP

4. Procurement Monitoring

Capacity Development Division

PROCUREMENT PLANNING
PLANNING
- refers to predetermined course/s of
action to achieve a desired end/goal.

PROCUREMENT PLANNING

It is the governments
responsibility

protect the taxpayers interests

safeguard the resources allotted to each
department

Capacity Development Division

fiduciary

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

Capacity Development Division

SECTION 7.1 OF IRR

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

Capacity Development Division

PROCUREMENT PLANNING
Involves 2 levels:
1.Procuring entitys over-all strategic plan
2.Project and/or operational plans

Capacity Development Division

SECTION 7.2 OF IRR

No procurement unless in accordance with the Annual
Procurement Plan (APP)
Approval of Head of Procuring Entity (HOPE) or
designated second-ranking official

Capacity Development Division

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
Prepared by the end-user unit
during the budget preparation to
support the cost estimates in the
budget proposal.
Capacity Development Division

PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
Contracting Arrangement

Estimated budget

Type and Objective

PPMP
Extent/size

Time schedule

Procurement methods

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PPMP FORMAT

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DEVELOPING PROJECT
Developing
Project
Requirements
REQUIREMENTS
Identify the need
of the PMO/Enduser unit

Identify
alternative
solutions/
products/
services

Compare the
alternatives
(consider
qualitative and
quantitative
factors)

Choose the
Best Alternative
- the one that is
most beneficial
to the Procuring
Entity
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IDENTIFYING
THE NEED
Important Consideration
Suggested basis for identifying needs:
1.
2.
3.
4.
5.
6.

Core functions of the end-user unit in the organization,

i.e Accounting, Legal etc.
Historical data/Foreseen contingencies;
Identified purpose/goals/MFOs;
P.Es Strategic Plans;
Current supply inventory;
Other maintenance and operating needs.

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TECHNICAL SPECIFICATIONS, SCOPE OF

WORK, AND TERMS OF REFERENCE
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.
Description should be:

Generic and flexible

Clear and unambiguous
Updated, where technology is taken into account
Fits the actual requirements of the PMO/End-user
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HOW TO WRITE TECHNICAL

SPECIFICATIONS?
Functional Description
a pen is expected to write 1.5 km of straight, continuous
lines
Performance Description
should do so continuously and smoothly, without
skipping, and with the color of the ink being consistent
Environmental Interface
on pad paper or bond paper, but not necessarily on wood
or on a white board
Design
Ballpoint, gel-tip, sign pen, technical pen, etc.
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APPROVED BUDGET FOR THE CONTRACT

(ABC)
The ABC reflected in the APP or PPMP shall be consistent
with the appropriations for the project authorized in the
GAA
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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LIFE CYCLE COSTING

Pre-Procurement
Conference
LCC Life Cycle Costing
Cost
should
consider
all
costs
throughout the life-cycle acquisition cost,
utility costs (energy/water consumption,
maintenance), and disposal costs.
C to G vis--vis C to C

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COST COMPONENTS
IN DETERMINING ABC
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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COST COMPONENTS
IN DETERMINING 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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COST COMPONENTS
IN DETERMINING ABC
If the sum of the different cost components is lower than
the appropriation for the procurement, then the ABC
should be equal to the sum of the cost components.
If the resulting sum is higher than the appropriation, it is
advisable to review the technical specifications and the
computation of the ABC. In any case, the ABC should
not exceed the appropriation.

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PROCUREMENT MILESTONES

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PROCUREMENT MILESTONES

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PROCUREMENT
MILESTONES
Pre-Procurement
Conference
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
Advertisement
and Posting
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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Adveartisement
PPMP vsand
PR Posting
Purchase Request (P.R) 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 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 required 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 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 mos. or as often as necessary.
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PREPARATION OF APP

Budget Office

APP

When GAA,
Corporate
End-User Unit
Budget or
Appropriation
Upon
Ordinance
approval of
Submit
becomes
HOPE,
Budget
final, PPMPs
Budget
Proposal to Office will
will be
Submit to HOPE
finalized and
forward
Budget
submitted to
PPMPs to
Office for
BAC
BAC
evaluatio
Secretariat
Secretariat
Prepare
n
for
for
Project
consolidation
Consolidati
Procuremen
BAC
and
approval
on and
t
of
the
HOPE.
Review
Managemen
Secretariat
t Plan
(PPMP)
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ANNUAL PROCUREMENT PLAN

(APP)

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Eligibility
Documents
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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Eligibility
Documents
APP-CSE

In the case of foreign consultants, the

foregoing eligibility requirements under
Class A Documents may be substituted
by the appropriate equivalent documents.
NPM 42-2013

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TIPS IN
CONSOLIDATING
PPMPS
Eligibility
Documents
1.

Sort the procurement activities by type of procurement:

goods, civil works or consulting.

2.

Check which can be merged into one procurement activity

i.e 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).

3. Goods procurement can be separated into three categories:

common-use supplies (CSE) for the Procurement Service (PS),
common-use supplies (non-PS), other goods procurement

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REVISIONS ON APP

End-user Unit
BAC Secretariat

Update
PPMP

Consolidate
PPMP to
APP

HOPE
Capacity Development Division

Approve
Supplemen
tal APP

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5 RIGHTS IN PUBLIC
PROCUREMENT
Source

Value for Money

Time/
Delivery

Quantity

Procurement

Price

Capacity Development Division

Quality

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TIPS IN
CONSOLIDATING
PPMPS
Eligibility
Documents
4.

All CSE whether for procurement from PS or not shall be

consolidated into an APP-CSE which shall be submitted to
the Procurement Service

5.

For the APP, CSE shall be separated whether to be bought

from the PS and CSE which shall be bought outside the PS

6.

All partitions shall again be separated into mode of

procurement (public bidding or alternative methods)

7.

All entries can then be grouped by source of funds

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TIPSTips
IN CONSOLIDATING
PPMPS
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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COA GUIDE ON AUDIT OF

EligibLE Bidders
PROCUREMENT
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.
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COAEligibLE
GAP CHECKLIST
Bidders
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.

b.
c.
d.
e.
f.
g.

name of the procurement program/ project;

project management office or end-user unit;
general description of the procurement;
procurement method to be adopted;
time schedule for each procurement activity;
source of fund;
approved budget for the contract.

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COAEligibLE
GAP CHECKLIST
Bidders
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

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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 Head of the
Procuring Entity (HOPE) the GPPB in printed and electronic format
within 14 cd after the end of each semester.
( Executive Orders 662, 662-A and 662-B, series of 2007)
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WHY MONITOR?
Compliance to R.A. 9184 and its IRR
Performance
Efficiency
Effectiveness
Aid GPPB in crafting policies that address weaknesses
and uphold strengths of the Philippine Procurement
System

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MONITORING AND EVALUATION

Monitoring entails tracking of inputs, activities,
outputs, and outcomes of the procurement activity
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.

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PROCUREMENT MONITORING REPORT

(PMR)

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COA GAP CHECKLIST

1.

To verify if the BAC:

a. prepared a procurement monitoring report in the form
prescribed by the GPPB;
b. covering all procurement activities specified in the Annual
Procurement Plan (APP), whether on-going and
completed, from the holding of the pre-procurement
conference to the issuance of the notice of award and the
approval of the contract, including the standard and actual
time for each major procurement activity;
c. submitted the monitoring report to the Head of the
Procuring Entity (HOPE) for approval and submission to
the GPPB in printed and electronic format within 14 days
after the end of each semester
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COA GAP CHECKLIST

2. To verify if the HOPE:
a. approved the Procurement Monitoring Report and
b. submitted it to the GPPB in printed and electronic format
within 14 days after the end of each semester
3. To verify if appropriate actions have been taken by the HOPE
in case of instances of noncompliance committed by the BAC,
BAC TWG, BAC Secretariat and/or bidders
4. To verify what actions have been taken by the GPPB in regard
to instances of noncompliance

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SUBMISSION & POSTING

REQUIREMENTS
APP
Submission to the GPPB (AO 222) and posting in the procuring
entity's website of its APP for CY 2012 (Section 1.1 of the IRR of
EO 662), following the form and format downloadable from the
GPPB website
PMR
Submission to the GPPB (Section 12.2 of IRR of RA 9184) and
posting in the procuring entity's website of its approved
Procurement Monitoring Report every semester, following the
form and format downloadable from the GPPB website (Section
1.2 of the IRR of EO 662)
GPPB Website
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THANK YOU!!
Contact us at:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasay City, Philippines 1605
TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph
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