PROCUREMENT PLANNING &

MONITORING

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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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PROCUREMENT PLANNING
Preparation of PPMP and APP

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PHILIPPINE PROCUREMENT PARADIGM

• Review studies • Post/Advertise

Assess Procure
• Consolidate into APP opportunity
• Decide procurement • Open and evaluate bids
method • Post-qualify
• Approve APP • Award and enter into
• Determine readiness contract

Identify • Cost-benefit analysis • Oversee Implement

• Feasibility study implementation
• Market study • Inspect and accept
• PPMP deliveries
• Release payment

NEEDS SATISFACTION

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 Head of Procuring Entity (HOPE) or

designated second-ranking official

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 ACTORS IN PROCUREMENT
PLANNING

TECHNICAL
END USER WORKING GROUP
BUDGET
OFFICE (TWG)

BIDS AND AWARDS COMMITTEE

APPROVING
(BAC) &
AUTHORITY/HoPE 10
AND 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.

 Prepared by the end-user unit 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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PPMP SAMPLE FORMAT

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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;
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.
 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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 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 PR

 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
 No procurement shall be undertaken unless in accordance
with APP

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ANNUAL PROCUREMENT PLAN (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. 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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 ANNUAL PROCUREMENT PLAN (APP)

1 2 3 5 7
4 6

Per GPPB Resolution No. 20-2015

1. Name of Procurement
Project;
2. Procurement Management
Office (PMO)/end-
user/implementing unit;
3. Method of Procurement;
4. Schedule of identified
procurement activities;
5. Source of funds;
6. Indicative ABC;
7. Other relevant descriptions
of the project, if applicable.

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 PREPARATION OF APP

Procedure under the 2016 IRR of RA 9184

HOPE/Approving
APP
When GAA, Corporate
Body Budget or
BAC & Appropriation
Secretariat Submit Indicative
Ordinance becomes
final, PPMPs will be
Budget APP and budget finalized and submitted
proposal to to BAC Secretariat for
Office Consolidation HOPE/oversight consolidation, to BAC
of PPMPs to body for approval
Indicative APP for final
End-User Submit to by BAC Sec
recommendation of
modality and final
and
Unit Budget
recommendatio
approval of the HOPE
Office for
evaluation n by BAC of
Prepare Project modality
Procurement
Management
Plan (PPMP) During Budget Preparation
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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
PPMP to
BAC & BAC Sec Updated/
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, as the case may be, 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; on budget
levels as proposed to the governing board for GOCCs
 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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 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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 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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