Seminar/ Workshop

Preparation of PPMP and APP:

Concepts, Principles and Techniques
(Association of Government Internal Auditors)
Phases of Property and Supply Management

 Acquisition

 Utilization
 Disposition
 PHASES OF PROPERTY AND SUPPLY
MANAGEMENT
• Acquisition
• Utilization
• Disposition
Note:
3E’s : Economy, Efficiency,
Effectiveness
 Modes of Acquisition
Purchase/Procurement ( RA 9184 )
Transfer
Donation
Confiscation, Seizure and Foreclosure
Production/Manufacture :
natural and industrial fruits

4
 PHASES OF PROPERTY AND SUPPLY
MANAGEMENT
• ACQUISITION/Procurement
Governed by RA 9184 & its
IRR.
Coverage Of RA 9184 : From
Procurement Planning to Payment of
Deliverables. Responsibilities of
each official involved – clear and
legally identifiable.
PLANNING PROCUREMENT PROJECTS
PROCUREMENT PLANNING

Philippine Procurement Paradigm

Legal Basis
Importance/Advantages

7
 Philippine Procurement Paradigm

HOPE Assess • Review studies • Post/Advertise

Selection HOPE
• Consolidate into APP opportunity
• Decide procurement • Open and evaluate
BAC BAC
method bids
• Approve APP • Post-qualify
BAC Sec • Determine readiness • Award and enter into TWG
contract
Budget BAC Sec

End User End User

Identify • Cost-benefit analysis • Oversee Implement

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

SATISFACTIO
NEEDS
N
 PHASES OF PROPERTY AND SUPPLY
MANAGEMENT
• ACQUISITION/Procurement
Governed by RA 9184 & its
IRR.
Coverage Of RA 9184 : From
Procurement Planning to Payment of
Deliverables. Responsibilities of
each official involved – clear and
legally identifiable.
 Philippine Procurement Paradigm

HOPE Assess • Review studies • Post/Advertise

Selection HOPE
• Consolidate into APP opportunity
• Decide procurement • Open and evaluate
BAC BAC
method bids
• Approve APP • Post-qualify
BAC Sec • Determine readiness • Award and enter into TWG
contract
Budget BAC Sec

End User End User

Identify • Cost-benefit analysis • Oversee Implement

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

SATISFACTIO
NEEDS
N
“A GOAL
without a
PLAN is
simply a
wish”
 PLANNING

- refers to predetermined course/s

of action to achieve a desired
end/goal.

 Murphy’s Law

“Whatever will go wrong, will go

wrong.”

Capacity Development Division 12

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
 PROCUREMENT PLANNING

• Includes deciding on:

– Whether to procure
– What to procure
– How to procure
– Where to procure
– How much to procure
– When to procure
 PROCUREMENT PLANNING

• Proper Planning ensures that the Procuring Entity

(PE) should be able to answer the following
questions:
1. Whether to procure? Whether procurement will meet
the particular need of the PE? or a status quo to be
maintained?
2. What to procure? What kind or service will the PE
need to procure? In terms of both quantity and quality.
3. How will the PE procure the same? i.e., whether by
competitive bidding or through any of the alternative
methods?
 PROCUREMENT PLANNING
• Continuation:
4. Where to procure? From where will the item
or service be sourced? Local market and/or
foreign market?
5. How much to procure? How much will the
PE need to procure the same? Is the
Approved Budget enough for the purpose?
6. When to procure? When will the PE procure
the same? When will it be needed?

6. When to procure? When will the PE procure

the same? When will it be needed?
 WHY PROCUREMENT PLANNING
Advantages

• Effective and efficient achievement of project goal.

• Precludes occasions for unnecessary government

purchases and circumventions of the prescribed
procurement procedures, such as

– advance deliveries,
– “suki” system, or
– unwarranted resort to alternative methods
procurement (AMP).
 WHY PROCUREMENT PLANNING

• Done within budgetary context reflecting the

Procuring Entity (PE’s) priorities and
objectives for the budget period.

• It is the government’s fiduciary

responsibility to protect the taxpayers’
interests and to safeguard the resources
allotted to each department.
 PROCUREMENT PLANNING

• The following competencies are required:

– knowledge of the items to be procured
– accounting, audit and budget rules and
regulations
– warranty and contract laws, and
– scheduling.
 Legal Basis
Section 7.1, IRR of R.A. 9184

• 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 APP.
 Legal Basis
Section 7.1, IRR of R.A. 9184

• 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 Procuring Entity’s principal mandate.

• APP shall include provisions for foreseeable

emergencies based on historical records.

• In case of Infra Proj., APP shall consider appropriate

timing/phasing of related project activities (e.g.
engineering design and acquisition of right-of-way
site or location, to reduce/lower project costs.)
 Legal Basis
Section 7.2, IRR of R.A. 9184

• No procurement shall be undertaken unless it is

in accordance with the approved APP, including
approved changes thereto.

• APP must be consistent with the duly approved

yearly budget of the Procuring Entity and shall
bear the approval of the HoPE or 2nd ranking
official designated by the HoPE to act on his
behalf
 Legal Basis
Section 7.3, IRR of R.A. 9184

• Guidelines in the formulation and revision of the

APP:

1. Upon issuance of the budget call in the case of

NGAs, SUCs, Constitutional Commissions or
Offices, or similar document for GOCCs, GFIs
and LGUs, Procuring Entity shall prepare its
indicative APP for the succeeding calendar year
to support its proposed budget taking into
consideration the budget framework for that
year in order to reflect its priorities and
objectives
 Legal Basis
Section 7.3, IRR of R.A. 9184

• Guidelines in the formulation and revision of the APP

(Cont.):
2. End-user or implementing units shall formulate their respective
Project Procurement Management Plans (PPMPs) for their
different programs, activities, and projects (PAPs)

Based on the specific needs, 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,
technical specifications, scope of work, or terms of reference
(TOR)
 Legal Basis
Section 7.3, IRR of R.A. 9184

• Guidelines in the formulation and revision of the APP

(Cont.):
3. PPMPs shall then be submitted to the Budget Office for
evaluation in order to ensure consistency with the Procuring
Entity's budget proposal and compliance with existing budgeting
rules.

4. PPMPs included in the budget proposal shall be forwarded to the

BAC Secretariat for consolidation into an indicative APP, and to
the BAC for final recommendation of the appropriate
procurement modality.
 Legal Basis
Section 7.3, IRR of R.A. 9184

• Guidelines in the formulation and revision of the APP

(Cont.):
5. As soon as the GAA, corporate budget, or appropriation
ordinance, as the case may be, becomes final, end-user or
implementing units shall revise and adjust the PPMPs to reflect
the budgetary allocation for their respective PAPs.

6. Revised PPMPs shall be submitted to the BAC, thru its

Secretariat, for the final recommendation of the methods of
procurement.
 Legal Basis
Section 7.3, IRR of R.A. 9184

• Guidelines in the formulation and revision of the APP

(Cont.):
7. Indicative APP shall then be revised and approved
by the HOPE or a 2nd ranking official designated by
the HOPE to act on his behalf.

8. APP shall be submitted to the GPPB on or before the

end of January of the budget year,

9. APP shall be posted at the websites of the GPPB,

PhilGEPS and the procuring entity concerned in
accordance with E.O. 662, series of 2007, as
amended.
 ANNUAL PROCUREMENT PLAN PREPARATION

RECOMMEND
END-USER BUDGET OFFICE CONSLIDATE
BAC - BAC PROCUREMENT
PREPARES PPMP SUBMITS (inclusion in the PPMPs TO
SEC MODALITY.
Budget proposal) INDICATIVE APP SUBMIT TO HOPE

SANGGUNIANG BAYAN/
LOCAL PANGLUNGSOD/
PANLALAWIGAN FOR
BUDGET APPROVAL

APPROVED PROPOSE GOVERNING BOARD/

AGENCY BUDGET BOARD OF DIRECTORS
HOPE (APP, PS, MOOE, SUBMITS GOCC/GFI
FOR BUDGET
ETC.) APPROVAL

CENTRAL OFFICES FOR

INCLUSION IN THE
NATIONAL
PROPOSED NATIONAL
BUDGET

PREPARES PPMP BASED

ON APPROVED BUDGET BUDGET OFFICE Consolidates
– APPROPRIATION (inclusion in the HOPE
END-USER ORDINANCE /
SUBMITS
FINAL budget as
BAC - Final PPMPs to APPROVES
SEC
CORPORATE BUDGET / approved) Final APP
GAA
 Legal Basis
Section 7.4, IRR of R.A. 9184

 Revisions of the APP:

– Changes to the individual PPMPs and the
consolidated APP may be undertaken every 6
months or as often as may be required by the
HoPE.

– Respective end-user or implementing unit

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, w/c shall be subject to
HOPE approval
 Legal Basis
Section 7.4, IRR of R.A. 9184

 Revisions of the APP:

– 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
 Legal Basis
Section 7.5, IRR of R.A. 9184

 ABC as reflected in the approved APP shall be at all times

consistent with the appropriations for the project authorized
in the GAA, continuing, and automatic appropriations,
corporate budget, and the appropriations ordinance
 Legal Basis
Section 7.6, IRR of R.A. 9184

– To facilitate the immediate implementation of

procurement of Goods, Infrastructure Projects or
Consulting Services, even pending approval of the
GAA, corporate budget or appropriations
ordinance, Procuring Entity may undertake the
procurement activities short of award.
 ANNUAL PROCUREMENT PLAN PREPARATION

RECOMMEND
END-USER BUDGET OFFICE CONSLIDATE
BAC - BAC PROCUREMENT
PREPARES PPMP SUBMITS (inclusion in the PPMPs TO
SEC MODALITY.
Budget proposal) INDICATIVE APP SUBMIT TO HOPE

SANGGUNIANG BAYAN/
LOCAL PANGLUNGSOD/
PANLALAWIGAN FOR
BUDGET APPROVAL

APPROVED PROPOSE GOVERNING BOARD/

AGENCY BUDGET BOARD OF DIRECTORS
HOPE (APP, PS, MOOE, SUBMITS GOCC/GFI
FOR BUDGET
ETC.) APPROVAL

CENTRAL OFFICES FOR

INCLUSION IN THE
NATIONAL
PROPOSED NATIONAL
BUDGET

PREPARES PPMP BASED

ON APPROVED BUDGET BUDGET OFFICE Consolidates
– APPROPRIATION (inclusion in the HOPE
END-USER ORDINANCE /
SUBMITS
FINAL budget as
BAC - Final PPMPs to APPROVES
SEC
CORPORATE BUDGET / approved) Final APP
GAA
 Legal Basis
Section 7.6, IRR of R.A. 9184
– NGAs, SUCs, Constitutional Commissions or
Offices are encouraged to start their procurement
activities immediately after the National
Expenditure Program (NEP) has been submitted
by the President to Congress, provided that the
HOPE has approved the corresponding APP.

 This will facilitate the awarding of procurement

contracts after the enactment of the GAA, enabling
the timely implementation and completion of
programs and projects.
 ANNUAL PROCUREMENT PLAN PREPARATION

RECOMMEND
END-USER BUDGET OFFICE CONSLIDATE
BAC - BAC PROCUREMENT
PREPARES PPMP SUBMITS (inclusion in the PPMPs TO
SEC MODALITY.
Budget proposal) INDICATIVE APP SUBMIT TO HOPE

SANGGUNIANG BAYAN/
LOCAL PANGLUNGSOD/
PANLALAWIGAN FOR
BUDGET APPROVAL

APPROVED PROPOSE GOVERNING BOARD/

AGENCY BUDGET BOARD OF DIRECTORS
HOPE (APP, PS, MOOE, SUBMITS GOCC/GFI
FOR BUDGET
ETC.) APPROVAL

CENTRAL OFFICES FOR

INCLUSION IN THE
NATIONAL
PROPOSED NATIONAL
BUDGET

PREPARES PPMP BASED

ON APPROVED BUDGET BUDGET OFFICE Consolidates
– APPROPRIATION (inclusion in the HOPE
END-USER ORDINANCE /
SUBMITS
FINAL budget as
BAC - Final PPMPs to APPROVES
SEC
CORPORATE BUDGET / approved) Final APP
GAA
 Legal Basis
Section 7.6, IRR of R.A. 9184
• For a contract with a period not exceeding 1 year,
ABC shall be based on the amount in the indicative
APP as included in the proposed national budget
submitted by the President to Congress; for
GOCCs, on budget levels as proposed to the
governing board; or for LGUs, on budget levels as
proposed in the executive budget submitted to the
Sanggunian.

• In the case of multi-year contracts, for w/c a MYOA

or an equivalent document is required, ABC shall
be the amount reflected in the MYOA or equivalent
document.
 Legal Basis
Section 7.6, IRR of R.A. 9184

• No award of contract shall be made until the GAA,

corporate budget or appropriations ordinance, as
the case may be, has been approved or enacted.
 ACTORS IN PROCUREMENT PLANNING

END USER TECHNICAL WORKING

BUDGET OFFICE
GROUP (TWG)

BIDS AND AWARDS COMMITTEE (BAC) &

AND BAC SECRETARIAT APPROVING 38
AUTHORITY/HoPE
PREPARATION OF THE PROJECT
PROCUREMENT MANAGEMENT
PLAN

Procedures and Components of the

PPMP
Legal Basis
Importance/Advantages

39
PROJECT PROCUREMENT
MANAGEMENT PLAN
 Shall be prepared by the
PMO/End-user Units

 Serves as a guide
document in procurement
and contract
implementation process.

 It is a vital reference in
procurement monitoring.
Minimize the practice of
doing short-cuts

 Important tool in resource

and financial management 40
PROJECT PROCUREMENT
MANAGEMENT PLAN
 Prepared by the end-user
unit during the budget
preparation to support the
cost estimates in the
budget proposal
 The end-user units shall be
responsible for the
preparation of all
documents necessary for
the procurement activity,
to include but shall not be
limited to, technical
specifications, scope of
work or terms of reference
(Sec. 7.3.2, IRR, RA(9184) 41
 PROJECT PROCUREMENT
MANAGEMENT PLAN
 When is the PPMP prepared?

PPMP is prepared simultaneously with the budget

proposal

 Why is the PPMP prepared?

PPMP is important in determining and projecting

the quantity and quality of the expected outputs of
the PAPs.

42
Program / Project / Activity
Structure
PROGRAM
homogenous group of activities necessary for
the performance of a MAJOR PURPOSE for
w/c the PE is established, for basic
maintenance of the PE’s administrative
operations or for the provision of staff
support to the PE’s administrative
operations, or PE’s line functions.
 Program /Project/ Activity
Structure
 
PROJECT
special undertaking w/c is carried out w/in a
definite time frame and which is intended to
result in some pre-determined measure of goods
and services.

ACTIVITY
work process which is designed to contribute to
the accomplishment of specific objectives and to
the implementation of a program or project.
Contents of the PPMP -
 CONTRACTED OUT

An act of entering into an agreement between

the Procuring Entity and the winning
Supplier/Contractor/Consultant, as recorded in
the Contract Form signed by the authorized
representatives of the concerned parties, upon
completion of the procurement process thru
competitive bidding or any of the alternative
methods of procurement following the
provisions of R.A. 9184 and its IRR
 BY ADMINISTRATION

refers to the procedure by w/c the

implementation of an infrastructure project is
carried out under the administration and
supervision of the concerned agency through its
own personnel following the Revised Guidelines
for the Implementation of Infrastructure Projects
Undertaken By Administration (GPPB Resolution
No. 07-2009 dated Sept. 30, 2009.
 BY ADMINISTRATION
 Applicability: Infrastructure Projects

 Conditions:
o Implementing Agency (IA) must have a track record of
having completed or supervised a project by admin or by
contract, similar to and with a cost of at least 50% of the
project at hand, and

o IA owns or has access from other government agencies to

necessary tools and construction equipment required for the
project

 Other requirements provided in Guidelines for the

Implementation of Infrastructure Projects By
Administration(GPPB Resolution 18-2006, as amended by
GPPB Resolution No. 07 – 2009)
 BY ADMINISTRATION
 Increase in thresholds in the 2009 & 2010 GAA

– Any project costing < PhP. 20,000,000.00 may be

undertaken by administration or force account

– Project costing > PhP. 20,000,000.00 should obtained the

ff:

 Authority from the DPWH Secretary -

PhP. 20,000,000.00 - PhP. 50,000,000.00

 Authority from the President of the Philippines, upon

the DPWH Secretary’s favorable recommendation - >
PhP. 50,000,000.00.
 BY ADMINISTRATION
• Labor Component

1. It may be undertaken:
a. In-house
* If the workers are employees or
personnel occupying regular plantilla positions

b. Job-order
* Governed by relevant CSC and COA
rules.
 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.
Contents of the PPMP -
 DEFINITION (GOODS)
Items, supplies, materials & general support services, except
consulting services & infra projects, which may be needed in
the transaction of public businesses or in the pursuit of any
government undertaking.

Includes, but is not limited to the following:

a)equipment,
b)furniture,
c)stationery,
d)materials for construction,
e)personal property of any kind,
f)non-personal or contractual services,
i.repair & maintenance of equipment and furniture
ii.trucking, hauling, and courier
iii.janitorial, security and manpower
 DEFINITION (GOODS)

Related or analogous services shall include, but not limited to

the following:
a)lease or purchase of office space
b)media advertisements
c)health maintenance services
d)other services essential to the operation of the procuring
entity
i.rental of venues and facilities
ii.catering services
iii.lease of computers, copiers and other information
technology equipment
 DEFINITION (INFRASTRUCTURE PROJECTS)
Include
• Construction • Roads and bridges
• Improvement • Railways
• Rehabilitation • Airports and seaports
• Demolition • Communication facilities
• Repair • Civil works components of IT projects
• Restoration • Irrigation
• Maintenance • Flood control and drainage
• Water supply
• Sanitation
• Sewerage and solid waste management
systems
• Shore protection
• Energy/power and electrification
facilities
• Buildings (National, School, Hospital)
• Other related construction projects
 DEFINITION (CONSULTING SERVICES)

Services for infrastructure projects and other types of projects

or activities requiring adequate external technical and
professional expertise that are beyond the capability and/or
capacity of the GOP, such as:
a)Advisory and review services
b)Pre-investment or feasibility studies
c)Design
d)Construction supervision
e)Management and related services
f)Other technical services or special studies
 PROCUREMENT
METHODS
• General Rule: Public Bidding
– APP provides sufficient lead
time for bidding

• Resort to Alternative Methods

allowed -
– Highly exceptional cases
– To promote economy and
efficiency
– Justified by conditions specified
in IRR
– Recommended by BAC
– Approved By HOPE
 Procurement Timelines for Goods
Operational Timeline (Recommended Earliest Possible Time)
Adv’t/Posting of ITB (7 cd) Day 1 to 7
Issuance and availability of bid docs Day 1 to 20
(20 cd)
Pre-bid Conference (1 cd) Day 8
Bid Submission/Opening (1 cd) Day 20
Bid Evaluation (1 cd) Day 21
Post-qualification (2 cds) Day 22 to 23
BAC Recom. Approval/NOA Issuance Day 24
(1 cd)
Contract Prep./Signing (1 cd) Day 25
Approval by Higher Authority
Issuance of NTP (1 cd) Day 26
TOTAL TIME 26 calendar days
 Procedural Steps for Procurement
of Goods/Services – Public Bidding ( 2016
Revised IRR)
1 c.d.
.Posting – 7 c.d.

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Advertise/Post ITB
Conf. Documents Conference

Pre-Bid C. at least 12 c.d. before bid opening

Receive the Open Technical (with Open Evaluate &

Two (2) eligibility documents) Financial Rank Bid/s
Envelopes Envelope Envelope
Within 7c.d .
1 c.d.

Approve Resolution Prepare & Issue

Submission of Post-qualify
/ Issue Notice Sign Contract Notice to
Additional Req. LCB
of Award - LCRB Proceed
Within 45 c.d. Within 15 c.d . Within 10 c.d.
within 7 c.d.
Within 5 c.d.
 Procurement Timelines for Goods
Operational Timeline (Maximum Period Allowed)
Adv’t/Posting of ITB (7 cd) Day 1 to 7
Issuance and availability of bid docs Day 1 to 52
(52 cd)
Pre-bid Conference (When Nec.) Day 8 to 40
Bid Submission/Opening (45 cd) Day 52
Bid Evaluation (7 cd) Day 53 to 59
Post-qualification (45 cd) Day 60 to 104

BAC Recom. Approval/NOA Issuance Day 105

(15 cd) to 119
Contract Preparation and Signing (10 Day 120
cd) to 129
Approval by Higher Authority
(20 to 30 cd)
Issuance of NTP (7 cd) Day 130
to 136
 Procedural Steps for Procurement
of Goods/Services – Public Bidding ( 2016
Revised IRR)
1 c.d.
.Posting – 7 c.d.

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Advertise/Post ITB
Conf. Documents Conference

Pre-Bid C. at least 12 c.d. before bid opening

Receive the Open Technical (with Open Evaluate &

Two (2) eligibility documents) Financial Rank Bid/s
Envelopes Envelope Envelope
Within 7c.d .
1 c.d.

Approve Resolution Prepare & Issue

Submission of Post-qualify
/ Issue Notice Sign Contract Notice to
Additional Req. LCB
of Award - LCRB Proceed
Within 45 c.d. Within 15 c.d . Within 10 c.d.
within 7 c.d.
Within 5 c.d.
 Procurement Timelines for Infra
Operational Timeline (Recommended Earliest Possible Time)
Adv’t/Posting of ITB (7 cd) Day 1 to 7
Issuance and availability of bid docs Day 1 to 20
(20 cd)
Pre-bid Conference (1 cd) Day 8
Bid Submission/Opening (1 cd) Day 20
Bid Evaluation (1 cd) Day 21
Post-qualification (2 cds) Day 22 to 23
BAC Recom. Approval/NOA Issuance Day 24
(1 cd)
Contract Prep./Signing (1 cd) Day 25
Approval by Higher Authority
Issuance of NTP (1 cd) Day 26
TOTAL TIME 26 calendar days
 Procedural Steps for Procurement
of Infrastructure Project – Public Bidding
(2016 Revised IRR of 9184)
Not earlier than 7 cd from posting
12 cd before deadline of submission
Posting – 7 c.d.

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Advertise/Post ITB
Conf. Documents Conference

Deadline of Submission:
50 cd for 50M and below
65 cd for 50M and above

Receive the Open Technical (with Evaluate &

Open
Two (2) eligibility documents) Rank Bid/s
Financial
Envelopes Envelope Envelope
7 c.d.

1 c.d.

Approve Resolution Prepare & Issue

Submission of Post-qualify
/ Issue Notice Sign Contract Notice to
Additional Req. LCB
of Award - LCRB Proceed

Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

Within 7 c.d.
 Procurement Timelines for Infra
Operational Timeline (Maximum Period Allowed)
Adv’t/Posting of ITB (7 cd) Day 1 to 7
Issuance and availability of bid docs Day 57/ Day 52
(57/72 cd)
Pre-bid Conference (When Nec.) Day 8 to 45/
Day 8 to 60
Bid Submission/Opening (50/65 cd) Day 57/
Day 72
Bid Evaluation (7 cd) Day 58 to 64
Day 73 to 79
Post-qualification (45 cd) Day 65 to 109/
Day 80 to 124
BAC Recom. Approval/NOA Issuance Day 110 to 124
(15 cd) Day 125 to 139
Contract Preparation and Signing (10 Day 125 to134/
cd) Day 140 to 149
Approval by Higher Authority
(20 to 30 cd)
 Procedural Steps for Procurement
of Infrastructure Project – Public Bidding
(2016 Revised IRR of 9184)
Not earlier than 7 cd from posting
12 cd before deadline of submission
Posting – 7 c.d.

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Advertise/Post ITB
Conf. Documents Conference

Deadline of Submission:
50 cd for 50M and below
65 cd for 50M and above

Receive the Open Technical (with Evaluate &

Open
Two (2) eligibility documents) Rank Bid/s
Financial
Envelopes Envelope Envelope
7 c.d.

1 c.d.

Approve Resolution Prepare & Issue

Submission of Post-qualify
/ Issue Notice Sign Contract Notice to
Additional Req. LCB
of Award - LCRB Proceed

Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

Within 7 c.d.
 Procurement Timelines for Consulting
Operational Timeline (Recommended Earliest Possible)
Adv’t/Posting of REI (7 cd) Day 1 to 7
Eligibility & Shortlisting (1 cd) Day 8
Issuance and availability of bid docs Day 1 to 27
(27 cd)
Pre-bid Conference (1 cd) Day 15
Bid Submission/Opening (1 cd) Day 27
Bid Evaluation/Approval of ranking (2 Day 28 to
cd) 29
Notification for Negotiation (1 cd) Day 30
Negotiation (1 cd) Day 31
Post-qualification (2 cd) Day 32 to 33
BAC Recom. Approval/NOA Issuance Day 34
(1 cd)
Contract Prep & Signing (1 cd) Day 35
Approval.Higher Authority (1 cd)
Issuance of NTP (1 cd) Day 36
 Process Flow
III PROCUREMENT PROCEDURE

7cd
not >
20cd

not > 21cd not > 75cd at least12/30cd

Nego = not > 10cd

Post-Qua = ≤ 7-30cd
Capacity Development
70
Division
 Procurement Timelines for Consulting
Operational Timeline (Maximum Period)
Adv’t/Posting of REI (7 cd) Day 1 to 7
Eligibility & Shortlisting (20 cd) Day 8 to 27
Issuance and availability of bid docs Day 1 to 82
(75 cd)
Pre-bid Conference (When Nec.) Day 34 to 70

Bid Submission/Opening (75 cd) Day 82

Bid Evaluation/Approval of ranking (23 Day 83 to
cd) 105
Notification for Negotiation (3 cd) Day 106
to 108
Negotiation (10 cd) Day 109
to 118
Post-qualification (30 cd) Day 119 to 148
BAC Recom. Approval/NOA Issuance Day 149 to
(15 cd) 163
Contract Prep & Signing (10 cd) Day 164 to 173
 Process Flow
III PROCUREMENT PROCEDURE

7cd
not >
20cd

not > 21cd not > 75cd at least12/30cd

Nego = not > 10cd

Post-Qua = ≤ 7-30cd
Capacity Development
72
Division
 PROCUREMENT PLANNING
• PPMP is transformed into Bidding
Documents/RFQs/RFPs
– End-user and TWG provides BAC Secretariat all
the necessary documents and information
relative to the procurement request
• Authority to Procure with budget allotment
(Purchase Request or Requisition Voucher)
• Market Analysis, containing the specification
of the items and estimated cost,
validated/analyzed by TWG, if any
• Clearance or recommendation from Clearing
House and Justification
 ANNUAL PROCUREMENT PLAN PREPARATION

RECOMMEND
END-USER BUDGET OFFICE CONSLIDATE
BAC - BAC PROCUREMENT
PREPARES PPMP SUBMITS (inclusion in the PPMPs TO
SEC MODALITY.
Budget proposal) INDICATIVE APP SUBMIT TO HOPE

SANGGUNIANG BAYAN/
LOCAL PANGLUNGSOD/
PANLALAWIGAN FOR
BUDGET APPROVAL

APPROVED PROPOSE GOVERNING BOARD/

AGENCY BUDGET BOARD OF DIRECTORS
HOPE (APP, PS, MOOE, SUBMITS GOCC/GFI
FOR BUDGET
ETC.) APPROVAL

CENTRAL OFFICES FOR

INCLUSION IN THE
NATIONAL
PROPOSED NATIONAL
BUDGET

PREPARES PPMP BASED

ON APPROVED BUDGET BUDGET OFFICE Consolidates
– APPROPRIATION (inclusion in the HOPE
END-USER ORDINANCE /
SUBMITS
FINAL budget as
BAC - Final PPMPs to APPROVES
SEC
CORPORATE BUDGET / approved) Final APP
GAA
 Sec. 41 Reservation Clause
HOPE reserves the right to:
1. Reject Any and All Bids
2. Declare Failure of Bidding
3. Not Award Contract

SITUATIONS:
1. Prima Facie Evidence of COLLUSION
2. BAC failed in following the Prescribed Bidding Procedures
3. Project no longer necessary as determined by the HOPE
PREPARATION OF THE ANNUAL
PROCUREMENT PLAN

Procedures and Factors to Consider in

Developing the APP
Contents of the APP
Revision/Updates

76
ANNUAL PROCUREMENT PLAN (APP)

 What is an APP?
APP is the document that consolidates the various
PPMPs submitted by the various PE’s end-user
units/PMOs.

 Who prepares the APP?

APP is prepared by the BAC, through the BAC
Secretariat

 Who approves the APP?

APP should be approved by the HOPE or its duly
authorized 2nd ranking official

77
 ANNUAL PROCUREMENT PLAN (APP)

1 2 3 5 7
4 6

Per GPPB Resolution No. 20-2015

1. Name of Procurement 4. Schedule of identified
Project; procurement activities;
2. Procurement 5. Source of funds;
Management Office 6. Indicative ABC;
(PMO)/end- 7. Other relevant
user/implementing unit; descriptions of the
3. Method of Procurement; project, if applicable.
78
 Annual Procurement Plan
(Procurement Form No. 2)
Procurement Form No. 2
ANNUAL PROCUREMENT PLAN
Procuring Entity / Units:_________________________
Calendar Year:______________

Extent/Size of Contract Procurement TIME SCHEDULE APPROVED BUDGET

Type of Contract
Scope/Packages Method J F M A M J J A S O N D FOR THE CONTRACT

A. Procurement of
Goods/
Supplies/Materials

B. Procurement of Civil
Works

C. Procurement of
Consulting Services

D. Provision for
Emergency Purchases

TOTAL

Prepared by: Recommended by: Approved by:

Name and Signature Name and Signature Name and Signature of Head
Position Position of Procuring Entity
Position
 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

80
 – Common Use Supplies and Equipment
• All ordinary and regular office supplies and equipment
shall be procured from DBM-Procurement Service
– Inventory Items
– Non-common use/non-inventory supplies
• To be included in the Annual Procurement Plan for Common-
use Office Supplies and Equipment (APP-CSE), and included
under the PPMP of Property Division (PD).

• Procurement of items not available at DBM-PS, to be

undertaken by the BAC, subject to a certification issued by PD
that item is not available at DBM-PS and included in the APP-
CSE.

81
 Factors to Consider in Preparing APP
 Executive Order (E.O.) No. 662, dated
September 30, 2007, as amended by E.O.
662-A dated November 15, 2007 and E.O.
662-B, dated May 16, 2008 :

 Mandatory posting of copies of the APP in the

proceeding appropriate websites

 Procuring Entity’s website

 www.philgeps.gov.ph.PhilGEPS
website
 www.gppb.gov.ph. GPPB website
TIPS IN CONSOLIDATING PPMPS

83
 Annual Procurement Plan
(Procurement Form No. 2)
Procurement Form No. 2
ANNUAL PROCUREMENT PLAN
Procuring Entity / Units:_________________________
Calendar Year:______________

Extent/Size of Contract Procurement TIME SCHEDULE APPROVED BUDGET

Type of Contract
Scope/Packages Method J F M A M J J A S O N D FOR THE CONTRACT

A. Procurement of
Goods/
Supplies/Materials

B. Procurement of Civil
Works

C. Procurement of
Consulting Services

D. Provision for
Emergency Purchases

TOTAL

Prepared by: Recommended by: Approved by:

Name and Signature Name and Signature Name and Signature of Head
Position Position of Procuring Entity
Position
 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

85
 REVISIONS ON APP

End-User Update
/Supplement
PPMP

Consolidate
PPMP to
BAC & BAC Sec Updated/
Supplemental
APP

Approve
Updated
HOPE /Supplemental
APP
86
 FACTORS TO CONSIDER IN
PREPARING TECHNICAL
SPECIFICATIONS AND
DETERMINING THE ABC FOR
THE PROCUREMENT OF GOODS

87
 Factors to be considered in planning
The following factors have an impact on contract
packaging, the procurement method to be used,
and other components of Procurement Planning
for GOODS:

1.Nature of the Goods to be Procured.

Goods may be classified into different categories,
such as:
a. common-use supplies;
b. inventory items;
c. non-common use supplies (which may include
equipment or supplies that are project-specific); or
d. services.
 Factors to be considered in planning

2.Availability of the Goods or Services in the

Market.

• The identification of the mode of procurement

is sometimes dependent on the supply market.
Goods that are universally available should be
procured through public bidding.

• Goods that are available seasonally, or to be

manufactured specially for the PE, would
require more intensive planning in terms of
timelines for procurement, taking into
consideration manufacturing lead time, e.g.
textbooks, school furniture.
 Factors to be considered in planning

3. Obsolescence, operation, and maintenance of

equipment/non-consumable Goods.

• In buying equipment, consider the operation and

maintenance requirements of the goods.
– availability and cost of spare parts in the local market,
• If spare parts and maintenance services are not
available locally, or, if available, are very
expensive, the PE may consider buying, instead,
the substitute or equivalent product.

– the skills required in operating and maintaining the

equipment, and similar considerations.
 Factors to be considered in planning

• For high-technology items which cannot be

satisfactorily substituted by other products, the PE may
include the supply of spare parts, consumables and/or
maintenance services for a specified period of time, as
part of the contract package.

• Obsolescence could also be a factor in deciding whether

to lease or to buy equipment.
– It may be more economical to lease equipment that are
easily rendered obsolete, like IT equipment.
 Setting the technical specifications
PMO or end-user unit must consider the
following:

1. Objectives of the project or the procurement

at hand,
 Supply and Delivery;
 Supply, Install and Training;
 Procurement of Unit, cabling and
installation;
 Servicing and Maintenance
Evaluation and award per lot or package

FINANCIAL PROPOSAL Bidder 2 Bidder 3

Bidder 1
(Item & Specifications)

Agency     LOWEST  CALCULATED

BID (LCB)
Information to undergo Post-qualification
System Plan
1. Hardware 13,499,244.32 12,088,044.23 13,440,153.20
Components

2. Software Components 7,758,647 7,075,669.57 7,135,555.01

3. Training 680,000 204,000.00 170,000

4. Cabling/Installation/ 1,266,186.38 2,215,000 545,000

Delivery

Total Bid Price/lot: Php23,204,077.70 Php21,582,713.80 Php21,290,708.21

3rd 2nd 1st

Evaluation and award per item

FINANCIAL PROPOSAL Bidder 2 Bidder 3

Bidder 1
(Item & Specifications)

Refurbishment of      

Conference
Room
1. 24-seater 199,244 188,044 190,153
Conference Table

2. 100 sq.m. Carpet 358,647 475,669 435,555

3. 50 pieces upholstered 180,000 204,000 170,000

chairs with arm rest
4. Ceiling mounted 1,266,186.38 No bid No bid
Projector and
Interactive Board
Php1,624,833.38 Php188,044 Php170,000
Possible Contract
Award to 3 bidders Lowest calculated & Lowest calculated & Lowest calculated &
responsive bid for items 2 responsive bid for item responsive bid for item
&4 1 3
 Setting the technical specifications
PMO or end-user unit must consider the following:

The standards that should be met by the goods in

terms of
 function,
 performance,
 environmental interface, and/or
 design.
 “Functional Description”

is the description of the functions for which the

Goods are to be utilized.

Example:
• light bulb output = 315 lumens
• voltage = 150V to 250V
 “Performance Description”

refers to the manner that the Goods are

required to perform the functions expected of
them
Example:
• light output = 750 lumens without flicker
• efficacy = at least 50 lumens per watts
•energy saving = up to 80% over standard
incandescent bulbs
 “Environmental Interface”

refers to the environment in which the required

functions are to be performed at the desired level
Example:
• Minimum starting temperature = 0°C (32°F)
• Do not use in damp, water splashed areas
• Not suitable for use with enclosed downlights
• Not suitable for use with dimmers, electronic
switches or remote controls
 “Design”
refers to the technical design of the goods being
procured

Antique Heat Yellow Twist

Nostalgic Lamp Bug & Lock
Coil

Appliance Decorative Amusement 3-way

Ceiling Globe Light Bulb Screw-
Fan in
Standard Decorative Medium Air
Colored Chandelier Base Purifying
Party Stringers
Reflector S 14 Picture- Non-
Design Exit dimmable
 “Product Life”

refers to the “useful life” of a product

Example:
average life = at least 6,000 hours
 Setting the technical specifications
3. Conduct a market survey
– study of the available products or services,

– industry developments or standards, product or service

standards specified by the authorized government entity
like the Bureau of Product Standards, ISO9000 or similar
local or international bodies.
• For products where there are no specified Philippine
standards, the standards of the country of origin or
other international body may be considered.
• Product brochures, technical publications, industry
newsletters, the industry itself, as well as the Internet,
are good sources of product information.

– The conduct of a comparative study of the options

available in the market and their relevance to the
requirements of the Project is highly recommended.
Identify Specifications/Scope of Works/
Terms of Reference
 Engage services of technical
experts/consultants, if necessary.
 Description should be clear and specific to
avoid confusion and facilitate evaluation.
 Description should be generic and flexible,
not product-specific or seemingly tailored for
a particular brand, product, contractor, or
consultant, unless it involves intellectual
property rights or exclusively offered.
 Reference to brand names are strictly
prohibited
Identify Specifications/Scope of Works/
Terms of Reference
 All items, materials and accessories to be
included or incorporated in the goods should be
new, unused, and of the most recent or current
models.
 Where appropriate, drawings, including site
plans as required, may be furnished by the PE
with the Bidding Documents. Similarly, the
Supplier may be requested to provide drawings
or samples either with its Bid or for prior review
by the Procuring Entity during contract
execution.
 Determine the ABC
 ABC refers to the budget for the contract duly
approved by the Head of the Procuring Entity, as
provided for in the General Appropriations Act,
the corporate budget for the contract approved
by the governing board, pursuant to E.O. No.
518, s.1979, in case of GOCCs and GFIs (Section
5.b).

 ABC should not exceed approved budget.

 Determine the ABC
Factors to consider in determining ABC:
– Appropriation for the project or procurement;

– Cost or market price of the product or service itself;

– Incidental expenses like freight, insurance, taxes, installation

costs, training costs, if necessary, and cost of inspection;

– Cost of money, to account for government agencies usually

buying on credit terms;

– Inflationary factor, since the planning phase is usually done one

year ahead of the actual procurement date;

– Quantities, considering that buying in bulk usually means lower

unit prices; and

– Supply of spare parts and/or maintenance services, if these are

part of the contract package.
 Packaging the Contract
 The most common types of contracts provide for payments on
the basis of a lump sum, unit price, or combinations thereof.

 The size and scope of individual contracts will depend on the

magnitude, nature, and location of the project, for example:

1. Projects requiring a variety of goods and works, separate

contracts may be awarded for the supply and/or
installation of different items

2. Project requiring similar but separate items of equipment

or works, bids may be invited under alternative contract
options that would attract the interest of both small and
large firms, which could be allowed, at their option, to bid
for individual contracts (slices/items) or for a group of
similar contracts (package).
 Packaging the Contract
Incidental Services –

• performance or supervision of on-site assembly and/or start‑up

of the supplied Goods;

• furnishing of tools required for assembly and/or maintenance of

the supplied Goods;

• furnishing of a detailed operations and maintenance manual for

the supplied Goods;

• performance or supervision or maintenance and/or repair of the

supplied Goods, for a period of time agreed by the parties; and

• training of the Procuring Entity’s personnel.

 Packaging the Contract
Spare Parts –

• The spare parts required are included in the Contract Price.

• The Supplier shall carry sufficient inventories to assure ex-

stock supply of consumable spares for the Goods for a
period of time.

• Other spare parts and components may be supplied

through ordering agreement.
 Packaging the Contract
Packaging –
• The Supplier shall provide instruction on packaging
of the Goods to prevent damage or deterioration
during transit to their final destination.
• Packaging case size and weights. Consider the
remoteness of the GOODS’ final destination and the
absence of heavy handling facilities at all points in
transit.
• Marking, and documentation. Inside and outside
the packages, including additional requirements, if
any, as ordered by the PE.
Example: The outer packaging must be clearly marked on at least

four (4) sides the following:

• Name of the Procuring Entity
• Name of the Supplier
• Contract Description
• Final Destination
• Gross weight
• Any special lifting or handling instructions
• Any relevant HAZCHEM classifications
 PROCUREMENT
MONITORING

Procurement Monitoring Report

Procedures, Timelines and Other
Considerations for Developing a
Procurement Monitoring Report
Components of a Procurement
Monitoring Report
Legal Basis
Importance/Advantages
110
 PROCUREMENT MONITORING

What is Monitoring?

Tracking of inputs, activities, outputs, and

outcomes of the procurement activity; and

Tracking results of current operations on a

regular basis.
 PROCUREMENT MONITORING
 What is a PMR?
PMR is the document that reflects all of the
procurement activities undertaken by the
procuring entity, whether completed or on-going

 Who prepares the PMR?

PMR is prepared by the BAC, through the BAC
Secretariat

 Who approves the PMR?

PMR shall be approved by the HOPE & submitted
to the GPPB.

112
 PROCUREMENT MONITORING
 What does the PMR cover?
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.

 When will the PMR be submitted?

After HOPE approval, the PMR shall be submitted
to the GPPB in printed & electronic format w/in 14
cd after the end of each semester.

113
 PROCUREMENT MONITORING
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
 Factors to Consider in Preparing PMR
 Executive Order (E.O.) No. 662, dated
September 30, 2007, as amended by E.O.
662-A dated November 15, 2007 and E.O.
662-B, dated May 16, 2008 :

 Mandatory posting of copies of the PMR in the

proceeding appropriate websites

 Procuring Entity’s website

 www.philgeps.gov.ph.PhilGEPS
website
 www.gppb.gov.ph. GPPB website
 Factors to Consider in Preparing PMR
 GPPB Circular 03-2015, dated March 20,
2015:

 Reminding Procuring Entities of the Requirement

on the Submission of the Procurement Monitoring
Report (PMR) after Every Semester in Accordance
with Section 12.2 of the revised IRR of R.A. 9184
 OBSERVERS (Sec. 13)

• To enhance transparency, BAC shall invite Observers

during Eligibility Screening, Shortlisting, Pre-bid
Conference, Preliminary Examination of Bids, Bid
Evaluation and Post-qualification. Observers shall be
invited at least five (5) calendar days (cd) before the
date of the procurement stage/activity. In the event that
a procurement activity has to be postponed, the
observers shall be notified immediately of the change
in schedule.
 Non Govt. Org./ Civil Society Org.

GPPB Res. 17-2012

Mandatory grant of Transportation
Allowance to NGO/CSO observers
participating in Government Procure-
Activities.
NEGOTIATED PROCUREMENT
(TWO FAILED BIDDINGS)

GPPB CIRCULAR 05-2016 DATED DECEMBER 20,

2016:

BAC shall endeavor to conduct Negotiated Procurement

(Two-Failed Biddings) immediately, but it should not
exceed 15 days after the declaration of the 2nd failure of
bidding under Sections 35, 53.1 and Annex H of the 2016
Revised IRR of R.A. 9184.

May be extended up to thirty (30) days upon HOPE

approval.

119
120
 BEING CONSISTENT
(A meditation on the OUR FATHER)
Courtesy of Fr. Jose Bosch, SDB
(The OUR FATHER is more than just a prayer. It is a personal commitment
that has to be examined and renewed everyday)

If I don’t see in every man a brother of mine, I cannot say:

OUR FATHER
If I worry too much about material goods, I cannot say:
WHO ART IN HEAVEN
If God has no real place in my life and I am not a true Christian, I
cannot say:
THY KINGDOM COME
If I concentrate only in doing my will in everything and I cannot
bear suffering as I enjoy pleasure, I cannot say:
THY WILL BE DONE
If I don’t care about the people who suffer hunger, who are
illiterate, who are homeless, I cannot say:
GIVE US TODAY OUR DAILY BREAD
If I lack charity or harbor hatred in my heart towards my
neighbor, I cannot say:
FORGIVE US OUR SINS AS WE FORGIVE THOSE WHO SINNED
AGAINST US

If I close my eyes to truth and allow myself to be carried along the

path of lies and vices and I have the intention of living in sin, I
cannot say:
DO NOT LET US FALL INTO TEMPTATION
If I myself do not actively fight against evil, I cannot say:
DELIVER US FROM EVIL
If I do not agree with all the demands of OUR FATHER, I cannot
say:
AMEN.