Professional Documents
Culture Documents
with Budgeting
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
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
− advance deliveries
− suki system
− unwarranted resort to alternative methods procurement
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
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
• 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
TECHNICAL
END USER
WORKING GROUP
BUDGET
OFFICE
49
Procurement Planning
Procurement Planning
END USER
ACTIVITIES IN
PROCUREMENT
PLANNING
Procurement Planning
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
• 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
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
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
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
• 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
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
FACTORS TO CONSIDER
FACTORS TO CONSIDER
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
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
In preparing the APP, the BAC shall take into consideration the following factors:
• 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
136
APP vis-à-vis APP-CSE
138
APP Submission of Agencies to PS DBM
• 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.
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
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
162
WHY PROCUREMENT PLANNING
Procurement Planning ensures that the overall goal of
a particular project will be effectively and efficiently
achieved.
− advance deliveries
− suki system
− unwarranted resort to alternative methods procurement
163
163
SECTION 7.1 OF IRR
Procurement Planning and Budgeting Linkage
165
ACTORS IN PROCUREMENT PLANNING
TECHNICAL
END USER WORKING GROUP
BUDGET
OFFICE
Each end-user unit shall prepare the PPMP during the budget
preparation to support the cost estimates in the budget proposal.
Submit Indicative
Downloadable at http://
www.gppb.gov.ph/downloadables/SampleForms.html
172
PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
173
173
IDENTIFYING THE NEED
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
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
190
METHOD OF PROCUREMENT
191
PPMP vs Purchase Request
192
ANNUAL PROCUREMENT PLAN (APP)
193
ANNUAL PROCUREMENT PLAN (APP)
194
ANNUAL PROCUREMENT PLAN (APP)
195
1 2 3 4 6 8
5 7
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.
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
203
APP-CSE
204
TIPS IN CONSOLIDATING PPMPS
207
5 RIGHTS IN PUBLIC PROCUREMENT
208
POSSIBLE CONSEQUENCES
3. Suspension of Officials
5. Project Delays
6. Project Failures
212
213
WHAT IS MONITORING?
Defined as:
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?
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
17 18 19 20 21 22 23
24 25 26 27 28 29 31
30
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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) 223
THANK YOU!!
Contact us at:
TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph
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