Annual Procurement Plan (Part 1 of 4)

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AUG

Subukan natin namang himayin ngayon ang pagpa-plano ng budget ng isang ahensya ng pamahalaan.
Para sa kapakinabangan ng higit na nakakaraming mambabasa, ang mga halimbawang babanggitin natin
ay naaayon sa guidelines ng pamahalaang lokal o iyung nasa mga Local Government Units (LGUs),
alinsunod na rin sa Republic Act 7160 o Local Government Code of 1991. Ayon sa Rule II ng Revised IRR:

“Section 7.1. All procurement shall be within the approved budget of the procuring entity and should be
meticulously and judiciously planned by the procuring entity. Consistent with government fiscal
discipline measures, only those considered crucial to the efficient discharge of governmental functions
shall be included in the Annual Procurement Plan (APP). For purposes of this IRR, a procurement project
shall be considered crucial to the efficient discharge of governmental functions if it is required for the
day-to-day operations or is in pursuit of the principal mandate of the procuring entity concerned…”

Ito ang isa sa pinakamahalagang probisyon ng RA.9184. Ayon sa nasabing seksyon, lahat ng gastusin ng
pamahalaan ay dapat naaayon sa aprubadong budget ng ahensya. Samantala, ang aprubadong budget
ay dapat nagdaan sa mabusisi at makatarungang proseso kung saan ang mga pangunahing
pangangailangan sa pagtupad ng tungkulin at pagbigay ng serbisyo ang higit sa lahat ay dapat
mangangibabaw. Dahil dito, dapat ay bumuo ang isang ahensya ng Annual Procurement Plan (APP) na
magsisilbing master list o master plan ng lahat ng gagastusin ng gobyerno sa mula sa pagbili ng gamit,
pagbayad ng mga serbisyo, hanggang pakikipag-kontrata ng pamahalaan.

“… The APP shall include provisions for foreseeable emergencies based on historical records. In the case
of infrastructure projects, the APP shall consider the appropriate timing/phasing of related project
activities, such as, engineering design and acquisition of right of way, to reduce/lower project costs.”

Bukod sa mga planong bilihin o kontrata ng gobyerno, kasama rin sa pagbuo ng APP ang mga posibleng
gastusin na hindi maii-schedule basta-basta tulad ng mga posibleng pagkasira ng sasakyan o iba pang
kagamitan o kasangkapan, maagang pagkaubos ng office supplies, mga gastusin sa pagdating ng
kalamidad o sakuna, at iba pang biglaang paggasta upang maiwasan ang pagkawala ng buhay o
pagkasira ng ari-arian base na rin sa mga historical records. Sa gawaing panlansangan, dapat ay naaayon
sa tamang panahon ang implementasyon upang makuha ang pinakamababang presyo ng bilihin, at
pinakamurang kontrata sa alinmang proyekto.

***
Tingnan natin ang isang katanungang binuksan at sinagot sa GPPB Online Forum:

Q: Since the Program Holders/End-Users has already indicated their Mode of Procurements
(Competitive or Alternative) and consolidated by the BAC/BAC-Secretariat through the APP, does the
APP need a BAC Resolution recommending the same to the HOPE?[engr.ruel]

A: The end-users indicate their preference for the mode of procurement in their PPMPs.

It is, however, the responsibility of the BAC, through the BAC Secretariat, to consolidate the PPMPs to
the APP. In the consolidated APP, the mode of procurement as recommended by the BAC, may no
longer be the preferred mode by the end-user (for a number of reasons). The APP then has to be
approved by the HOPE, upon recommendation by the BAC. The BAC recommendation has to be in the
form of a BAC Resolution.

Therefore, the answer to your question, engr.ruel, is a definite YES. [RDV]

Source:http://gppb.topicsolutions.net/other-procurement-related-activities-f12/approval-of-the-ppmp-
app-and-bac-resolution-t281.htm

Ano naman ang PPMP? Ano yung HOPE? Ano yung BAC? Nakakahilo na ba? Sasagutin natin ng
paliwanag ang mga ito sa susunod na isyu.

Sa pagpapatuloy ng usapin sa APP o Annual Procurement Plan, halina’t sundan natin ang sinasabi ng
batas ukol sa pagbuo o pagbabago nito:

7.3. The APP shall be formulated and revised only in accordance with the following guidelines:

7.3.1. At the start of every budget period, the procuring entity shall prepare its proposed budget for the
succeeding calendar year, taking into consideration the budget framework for that year in order to
reflect its priorities and objectives for the budget period.
7.3.2. 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 PPMP shall
include:

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 53.6 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.

For purposes of this Section, consignment refers to an arrangement where the following requisites are
present: (a) delivery of goods by their owner (consignor), without sale, to a government agency
(consignee); (b) consignee must try to sell the goods and remit the price of the sold goods to the
consignor; (c) consignee accepts without any liability except for failure to reasonably protect them from
damage; (d) no disbursement of government funds is involved; and (e) at terms not disadvantageous to
the GOP.

7.3.3. The PPMP shall then be submitted to the procuring entity’s Budget Office. The procuring entity’s
Budget Office shall evaluate each end-user’s submitted PPMP and, if warranted, include it in the
procuring entity’s budget proposal for approval by the Head of the Procuring Entity.

***

Tingnan natin ang isang katanungang binuksan at sinagot sa GPPB Online Forum:
Q: Can we procure with PPMP alone? To be followed with APP that we are consolidating now?[slayer]

A: Section 7.1 of IRR-A (now on Sec.7.2 of Revised IRR) is very categorical on the prohibition on
procurement without an approved APP. It provides, among others that: “No government procurement
shall be undertaken unless it is in accordance with an approved Annual Procurement Plan.” So without
an APP approved by your HOPE, you cannot procure. [RDV]

Source:http://gppb.topicsolutions.net/other-procurement-related-activities-f12/ppmp-to-app-t23.htm?
highlight=ppmp

Ahhh, yun pala ang PPMP as related sa APP. Ang HOPE pala ay isang tao na nag-aaprove. Pero sino?
Hindi pa rin malinaw? Antabayanan po natin sa mga susunod na isyu.

Annual Procurement Plan (Part 3 of 4)

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AUG

Sa ikatlo mula sa apat bahagi ng ating isyung pinag-uusapan, isang mabilis na pagbungad sa proseso ng
pag-apruba sa APP:

7.3.4. After the budget proposal has been approved by the Head of the Procuring Entity and/or other
oversight bodies, the procuring entity’s budget office shall furnish a copy of the procuring entity’s
budget proposal as well as the corresponding PPMPs to the BAC Secretariat for its review and
consolidation into the proposed APP. The proposed APP shall be consistent with the procuring entity’s
budget proposal.

So, ganito pala yun. Una, kailangan ng bawat departamento na gumawa ng Project Procurement
Management Plan (PPMP) mula sa nga isinumiteng PAPs. Ang PPMP ay naglalaman ng mga planong
pagbili o pag-procure ng departamento, halaga ng proyekto o kontrata mula sa mabusising pag-aaral ng
prevailing market prices, at mga petsa kung kalian ito kailangang makuha o maisagawa. Ang PPMP ay
dadalhin sa Budget Office upang masuri sa antas ng pangangailangan at pagiging reasonable ng mga
halaga ng proyekto upang maisama ito sa pagbuo ng Annual Budget.
7.3.5. As soon as the GAA, corporate budget, or appropriation ordinance, as the case may be, becomes
final, the end-user units shall revise and adjust the PPMP to reflect the budgetary allocation for their
respective PAPs. The revised PPMPs shall be submitted to the BAC, through its Secretariat, for the
finalization of the modes of procurement under the proposed APP. The APP shall then be approved in
accordance with Section 7.2 of this IRR.

Ang PPMP ay dadalhin sa BAC Secretariat upang mapagsama-sama ang magkakahalintulad na proyekto
ng iba’t-ibang departamento. Matapos nito, ito ay tatawaging Annual Procurement Plan (APP) na
maglalaman ng naunang mga detalye ng PAP at PPMP kasama ng rekomendasyon ng BAC ng uri ng pag-
procure na gagamitin. Ang isang aprubadong APP ay magiging basehan ng bubuuing Annual Budget.

***

Tingnan natin ang isang katanungang binuksan at sinagot sa GPPB Online Forum:

Q: kami sa BAC secretarariat ngco consolidate ng APP ng mga units/offices. madali po sana kung lahat ay
office supplies pero nahihirapan kami mgconsolidate kasi pati telephone billings, courier, etc ay
isinasama pa submit ng mga units namin. ung repair and maintenance po ba ng vehicle & building
kailangan naka itemize gayong unpredictable namn un at hndi pa alam kung ano ang irerepair at
bibilhing materials. Please advise [nanette]

A: Mahirap talaga mag-consolidate lalo na pag hindi alam ng mga end-user ang gagawin nila. Dahil tayo
ang naatasan para dito, we are on our own in making our lives easier. Basic is that we first answer your
query:

1. there are specific rules on telephone and other utility bills which the GPPB already have provided;

2. use of courier may fall under negotiated procurement if arranged with Philippine Postal Service;
based on history (kahit past year), you can predict he needed correspondence cost;

3. unforeseen contingencies need not be itemized and be predicted because you should not; based on
historical data (in the past years), somehow you can project the nearest amount; others use certain
percentage of MOOE for emergency repairs and purchases; either shopping (for goods) or small value
procurement (for services) apply;
You should start somewhere somehow. But once maka-complete ka ng APP, sarap ng feeling, at madali
na ang buhay natin next year![engrjhez]

Source:http://gppb.topicsolutions.net/procurement-organizations-f11/request-for-ppmp-and-app-
format-template-t393.htm

Subaybayan ang nalalabing conclusion ng APP sa susunod na isyu.

Annual Procurement Plan (Part 4 of 4)

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AUG

Sa huling bahagi ng diskusyon sa APP, tingnan natin ang mga probisyon sa pagpapanatili ng plano sa
pagggasta at kung paano maire-relate ang APP sa Annual Budget.

7.4. Updating of the individual PPMPs and the consolidated APP for each procuring entity shall be
undertaken every six (6) months or as often as may be required by the Head of the Procuring Entity. The
updating of the PPMPs shall be the responsibility of the respective end-user units of the Procuring
Entities, while the consolidation of these PPMPs into an APP shall be lodged with the BAC Secretariat,
subject to approval of the Head of the Procuring Entity.

7.5. The ABC as reflected in the APP or PPMP shall be at all times consistent with the appropriations for
the project authorized in the GAA, continuing, and automatic appropriations, the corporate budget, and
the appropriation ordinance, as the case may be. For NGAs, to facilitate the immediate implementation
of projects even pending approval of the GAA, the ABC shall be based on the budget levels under the
proposed national budget submitted by the President to Congress.

Malinaw na ang pagsusumite ng pagbabago sa procurement ay magsisimula sa end-user o sa

departamento na nagangailangan bumili o gumasta. Maaring gawin ito ng dalawang beses isang taon o
mas madalas pa depende sa pangangailangan. Ang mga nabago sa PPMP ay dadalhin sa BAC Secretariat
upang isama sa komposisyon ng pagsususog ng APP.

Sa mga pamahalaang lokal, ang Annual Budget ay nararapat magmula sa ordinansa na ipapasa ng
Sanggunian. Lahat ng mga paggasta na nasa Annual Budget ay dapat nasa APP rin. Kung may paglilinaw,
paghahati, o anumang uri ng pagbabago sa budget dapat itama ang APP. Ang proseso ng procurement
ay dapat magsimula sa pagtatapos ng resolusyon ng BAC at ng Sanggunian (kung kakailanganin pa).
***

Silipin natin ang isang Supreme Court decision na may malaking implikasyon lalo na sa mga Local
Government Units:

There has always been the issue of whether or not a prior Sanggunian authorization is required before
any Local Chief Executive (LCE) could validly enter into procurement contracts (as R.A. 9184 is silent on
the matter).

Despite DILG Opinion No. 9 s. 2006, one reason why the issue persists is due, perhaps, to the fact that it
is only an opinion and it was rendered on a particular case of a province, which municipalities/cities may
find inapplicable to them under the provisions of the Local Government Code.

Most of us are, probably, unaware of the Supreme Court decision in the Province of Cebu (another
province, but, don’t worry, the decision is of general application to LGUs in GR. No. 175527
http://sc.judiciary.gov.ph/jurisprudence/2008/december2008/175527.htm), the pertinent decision of
which on the subject matter is quoted below:

“In cases, for instance, where the local government unit operates under an annual as opposed to a re-
enacted budget, it should be acknowledged that the appropriation passed by the sanggunian may validly
serve as the authorization required under Sec. 22(c) of R.A. No. 7160. After all, an appropriation is an
authorization made by ordinance, directing the payment of goods and services from local government
funds under specified conditions or for specific purposes. The appropriation covers the expenditures
which are to be made by the local government unit, such as current operating expenditures and capital
outlays.

“The question of whether a sanggunian authorization separate from the appropriation ordinance is
required should be resolved depending on the particular circumstances of the case. Resort to the
appropriation ordinance is necessary in order to determine if there is a provision therein which
specifically covers the expense to be incurred or the contract to be entered into. Should the
appropriation ordinance, for instance, already contain in sufficient detail the project and cost of a capital
outlay such that all that the local chief executive needs to do after undergoing the requisite public
bidding is to execute the contract, no further authorization is required, the appropriation ordinance
already being sufficient.
“On the other hand, should the appropriation ordinance describe the projects in generic terms such as
“infrastructure projects,” “inter-municipal waterworks, drainage and sewerage, flood control, and
irrigation systems projects,” “reclamation projects” or “roads and bridges,” there is an obvious need for
a covering contract for every specific project that in turn requires approval by the sanggunian. Specific
sanggunianapproval may also be required for the purchase of goods and services which are neither
specified in the appropriation ordinance nor encompassed within the regular personal services and
maintenance operating expenses.”

From the above-quoted decision, the following are clear:

If the LGU operates on an Annual/Supplemental budget, not on a re-enacted budget, the appropriation
passed by the Sanggunian may validly serve as the authorization under Sec. 22.c of R.A. 7160 PROVIDED
that the appropriation ordinance already contain in sufficient detail the project and the cost of a capital
outlay such that all the LCE needs to do after the requisite public bidding is to execute the contract;

If, however, the appropriation ordinance describe the project(s) in generic terms, there is a need for a
covering contract for every specific project which, in turn, would require approval by the sanggunian;

Specific sanggunian approval may also be required for the purchase of goods and services which are
neither specified in the appropriation ordinance not encompassed within the regular personal services
and MOOE.

The last bulleted item would be something that needs further clarification (maybe by the GPPB) because
it could be interpreted in a number of ways, the effect of which could derail procurement of goods and
services.