Overview

Procurement is an activity undertaken by any government agency involving acquisition of goods,

consulting services, contracting for infrastructure projects and lease of goods and real estate.
(government contracting)

Dito nangongontrata, or nagbibid para makuha , mapurchase, or maobtain ang isang project at
magkakaroon ng agreement between the parties na involved sa isang project)

Additionally, here in the Philippines, the government procurement is governed by Republic Act No.
9184, or “An Act Providing for the Modernization, Standardization and Regulation of the
Procurement Activities of the Government and for Other Purposes”. However, in the year 2003, the
Government Procurement Reform Act (GPRA) was enacted and formulated by the GPPB for the purpose
of providing a single source of information for Alternative Methods of Procurement commonly
resorted to by procuring entities;

and to prescribe the terms, conditions, rules and procedures for the modernization,
standardization, and regulation of the procurement activities of the Government of the Philippines.

(ginagawa nitong uniform and standardized yung procurement system sa lahat ng government agencies
para alam ng mga bidders at PEs ang mga rules na need I follow. So yung mga guidelines dito ay ginawa
to make sure na magiging transparent, competitive, accountable at efficient ang bidding

QUESTIONS:

1/
Procurement planning is the process of identifying and consolidating requirements and
determining the timeframes for their procurement with the aim of having them as and when they
are required.

A good procurement plan will describe the process in the identification and selection of
suppliers/contractors/consultants

Importance of Procurement Planning

Procurement planning is important for the following reasons:

 It is one of the pre-requisites for successful implementation of projects;

Pag naidentify mo ang mga requirments,

 Limits scope on non-compliance with agreed procurement procedures;

-maiiwasan yung kakulangan sa pagcomply sa chuchu kapag may plan

 Enhances transparency and predictability;

 Provides a good basis for monitoring; and
 Facilitates efficient and effective treasury management by spreading out annual
procurement activities consistent with the needs and resources available.

EXPLANATION

Procurement Planning is important because:

1. It helps to decide what to buy, when and from what sources.

2. It allows planners to determine if expectations are realistic; particularly the expectations of

the requesting entities, which usually expect their requirements met on short notice and over a
shorter period than the application of the corresponding procurement method allows.

3. It is an opportunity for all stakeholders involved in the processes to meet in order to discuss
particular procurement requirements. These stakeholders could be the requesting entity, end
users, procurement department, technical experts, and even vendors to give relevant inputs on
specific requirements.

4. It permits the creation of a procurement strategy for procuring each requirement that will be
included in the procurement plan. Such strategy includes a market survey and determining the
applicable procurement method given the requirement and the circumstances.

5. Planners can estimate the time required to complete the procurement process and award
contract for each requirement libido-portugal.com/. This is valuable information as it serves to
confirm if the requirement can be fulfilled within the period expected, or required, by the
requesting entity.

6. The need for technical expertise to develop technical specifications and/or scope of work for
certain requirements can be assessed, especially where in-house technical capacity is not
available or is non-existent.

7. Planners can assess feasibility of combining or dividing procurement requirements into

different contract packages.

The Procurement Plan is the product of the procurement planning process. It can be developed
for a particular requirement, a specific project, or for a number of requirements for one or many
entities in the public or private sectors.

The Procurement Plan is important because:

1. It lists all requirements expected to be procured over a period of time.

2. From it the procurement schedule is developed, which establishes the timelines for carrying
out each step in the procurement process up to contract award and the fulfillment of the
requirement.

3. It allows for the consolidation of similar requirements under one contract or the division of a
requirement into several contract packages for economies of scale.

4. From the number of requirements on the procurement plan, the procuring entity can
determine beforehand any need for additional staffing, including external assistance for the
purpose of completing all procurement requirements listed on the procurement plan.
5. It allows for the monitoring of the procuring process to determine how actual performance
compares with planned activities, and thus to alert the pertinent departments and adjust the
procurement plan accordingly.

6. It enhances the transparency and predictability of the procurement process.

https://www.designingbuildings.co.uk/wiki/Procurement_plan

Procurement Budget: Budgeting, while many times painful, is among the most important
aspects of an organization(1). In the past, the procurement department was not included in the
budget-making process. It was not represented in organization-wide budget meetings. The role of
procurement in budgeting was relegated to direct acquisition.

Nowadays, the construction industry is a business that is growing rapidly in the economic development
of the country. We can see the construction everywhere in the country. However,in developing the
construction business to be a success, the budgeting is very important part to ensure the construction
process can be carried out with a successful and profitable. Budget is the setting for each level of
expenditures and also for each function of the organization. Budget is available capital and capital
allocation for the purpose of construction business. In addition, budget or capital allocation requirement
is for a firm to achieve organizational goals in business.

However, currently, things are changing, and procurement professionals are very much involved
in budgeting. Also, procurement departments are developing their budgets that are being
considered during the organization-wide budgeting process. You may be asking why
procurement budgets are important. Here are the reasons.

Reasons for a procurement budget

1. Informs your purchasing strategy. A procurement budget will determine what you can and
cannot afford depending on the set budget(2).

2. Offers warnings when finances are out of control. For instance, it identifies when over-
spending occurs that could affect the procurement process.
3. Ensures transparency across departments. Procurement budgets makes the procurement
department accountable for its finances.

4. Manage procurement finances more effectively. A budget allows you to allocate appropriate
resources to procurement projects.

5. Provides insights for decision-making. Data from the procurement budget such as spend trends
can help you make better decisions.

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https://issgroup.com/2019/07/26/5-reasons-you-need-a-procurement-budget-and-tips-for-making-
one/

Reasons for a procurement budget

1. Informs your purchasing strategy. A procurement budget will determine what you can and
cannot afford depending on the set budget(2).

2. Offers warnings when finances are out of control. For instance, it identifies when over-
spending occurs that could affect the procurement process.

3. Ensures transparency across departments. Procurement budgets makes the procurement

department accountable for its finances.

4. Manage procurement finances more effectively. A budget allows you to allocate appropriate
resources to procurement projects.

5. Provides insights for decision-making. Data from the procurement budget such as spend trends
can help you make better decisions.