SCHOOL-BASED

BUDGETING AND
EXPENDITURE
MANAGEMENT
CHRISTIAN GARCIA MENDOZA
Chief Budget and Management Specialist
Department of Budget and Management – MIMAROPA Regional Office

Certified Public Procurement Specialist (Level I) – UP-NEC

Member, MIMAROPA Region Composite Team of GPPB Recognized Trainers on R.A. 9184
Member, PhilGEPS National Trainers Pool (Accredited PhilGEPS Trainer)
 WHAT IS A GOVERNMENT BUDGET?
• The government’s financial plan for a fiscal year.
• It is a compilation of expenditures, based on
either obligations or cash concepts and the
corresponding sources of financing either from
revenues, borrowings, or cash.
• A tool that enables the government to achieve its
BUDGET development agenda.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 The NATIONAL BUDGET

• is the financial expression of approved government

plans and programs to be supported by government
revenues

• Budgeting enables the government to manage its scarce

financial resources to support priority programs and projects
for promoting economic growth and providing public services.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 The NATIONAL BUDGET

• consists of the government’s estimated income and planned

expenditures in a given year.

• Income: taxes (income tax, value-added tax, etc.) and

non-tax revenues (fees and charges, privatization
proceeds, etc.)

• Expenditures: programs, activities, projects, purchase

of goods and services, among others.

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 Expense Categories

Personnel Services (PS) – for the payment of salaries, wages and other
compensation of permanent, temporary, contractual and casual employees of the
government.

Maintenance & Other Operating Expenditures (MOOE) – expenditures to support

the operations of government agencies such as expenses for supplies, utilities, etc.

Financial Expenses (FinEx) – a new expense category, this is for management

supervision/trusteeship fees, interest expenses, bank charges, and other financial
charges.

Capital Outlays (CO) – for the purchase of goods and services, the benefits of which
extend beyond the fiscal year and which add to the assets of the government.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 The NATIONAL BUDGET
Coverage:
• budgets of national government agencies — not only those of
the Executive branch, but also of Congress, the Judiciary and
other Constitutional bodies.

• budgetary support given by the national government to local

government units (LGUs), in particular, the Internal Revenue
Allotment (IRA) ; as well as to Government-Owned or -
Controlled Corporations (GOCCs) and government financial
institutions (GFIs).
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
The NATIONAL BUDGET
Components:
1. New General Appropriations – Legislated by Congress and
enacted by the President every fiscal year as the General
Appropriations Act (GAA).

The GAA enacts both programmed and unprogrammed general

appropriations.

a. Programmed appropriations – supported by corresponding sources

of revenue.

b. Unprogrammed appropriations – can only be executed when the

government attains a revenue windfall (i.e., above target).
 The NATIONAL BUDGET
Components:

2. Automatic Appropriations – Under specific laws, certain

types of expenditure (e.g., debt interest payments, LGUs’ IRA)
are automatically set or appropriated.

3. Continuing Appropriations – Appropriations previously

enacted by Congress in the previous year’s GAA and which
continue to be valid. Currently, appropriations for capital
outlays and maintenance and other operating expenditures
have a validity of two years.
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
 BUDGET PROCESS
BUDGET
1 PREPARATION

BUDGET 4 BUDGET
ACCOUNTABILITY
AUTHORIZATION
2

3
BUDGET EXECUTION
Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
BUDGET EXECUTION

• This is where the people’s

money is actually spent.

• As soon as the GAA is

enacted, the government
can implement its priority
programs and projects.
 Budget Execution

Early Procurement Activities

October to December of Prior FY

Agencies are required to prepare their Annual Procurement Plans and other bid documents
before the new fiscal year starts.

Moreover, the government adopted a policy of allowing agencies—such as the DPWH and
others which implement infrastructure projects—to bid their projects before the GAA is
enacted.

Early bidding allows agencies to award their approved projects as soon as the new GAA takes
effect.
Budget Execution
 Budget Execution

Agencies submit BEDs to outline their financial plans and performance targets for the year.

The DBM consolidates these plans into the budget program, which breaks down the allotment and cash releases for each
month of the year.
Budget Execution
Budget Execution

Allotment Release
January (Comprehensive) and Throughout FY

The DBM issues allotments to agencies to authorize the latter

to incur obligations.

With the GAA-as-Release Document, the enacted Budget itself

serves as the allotment release for all budget items

except those contained in a negative list that are issued the

Special Allotment Release Orders (SAROs) after agencies
comply with the documentary requirements.
 Budget Execution

These contracts are subject to a transparent and competitive procurement process.

Budget Execution
Budget Execution
 Budget Execution

Disbursement
Throughout FY

Monies are paid out from the Treasury to settle obligations that government incurred
for the delivery of services to citizens.

To ease the payments process, the DBM introduced checkless and cashless
disbursement schemes.

The DoF-BTr also implemented the TSA to improve the management of the
government’s cash resources.
BUDGET ACCOUNTABILITY

• This phase happens alongside the

Budget Execution phase.

• Through Budget Accountability, the

DBM monitors the efficiency of
fund utilization, assesses agency
performance and provides a vital
basis for reforms and new policies.
Budget Accountability
Budget Accountability

Performance Targets
January of FY

Budget accountability starts with the setting of targets that agencies

are to be held accountable for.

With the Performance-Informed Budget, the GAA now contains the

targeted outcomes, outputs and performance indicators of each
agency.

These targets are also reflected in agencies’ BEDs, which effectively

serve as the agencies’ plans for the year.
Budget Accountability
Budget Accountability
Budget Accountability
Budget Accountability
Budget Accountability
 BUDGETING PRINCIPLES

Spending within our means

Investing in the right priorities

Delivering measurable results

Empowering citizens
through fiscal transparency,
accountability & participation

Republic of the Philippines

DEPARTMENT OF BUDGET AND MANAGEMENT
 BUDGETING REFORMS
Public Expenditure Management (PEM)
 an approach that ensures resource allocation is results-based,
and that government is accountable for its performance
PEM Objectives:
Aggregate Fiscal Discipline - Government must spend within its means.
Resources should be used in a planned and deliberate medium-term strategy.

Allocative Efficiency - Government must spend on the right priorities.

Spending should be aligned with socio-economic priorities, as spelled out in the Philippine
Development Plan.

Operational Efficiency - Government must ensure the best value for the people’s money.
All public goods and services must be provided at the most reasonable cost.
BUDGETING REFORMS
GENERAL OVERVIEW OF THE
GOVERNMENT PROCUREMENT
 ENACTMENT OF THE GOVERNMENT PROCUREMENT
REFORM ACT (GPRA) OR REPUBLIC ACT NO. 9184

10 • Government Procurement
Act (GPRA)
Jan
uary
200
3
Executive
Orders
08 • Implementing Rules and Administrative

Regulations (Part A)
Oct Issuances
ober
200
3

02
Sept
• Revised IRR Memorandum
emb Circulars
er
200
9
28
Oct • Revised IRR Implementing
Rules and
ober
201 Regulations
6
PURPOSE

To prescribe the necessary rules and regulations for

the:
 modernization,
 standardization, and
 regulation
of the procurement activities of the Government of
the Philippines (GoP)
SCOPE AND COVERAGE
 all procurement of any branch, agency, department, bureau,
office, or instrumentality of the GoP, including government-
owned and/or -controlled corporations (GOCCs),
government financial institutions (GFIs), state universities
and colleges (SUCs), and local government units (LGUs).

 Any Treaty or International or Executive Agreement.

 Foreign-funded Procurement of Goods, Infrastructure

Projects, and Consulting Services by the GoP.
GOVERNING PRINCIPLES ON
GOVERNMENT PROCUREMENT
GOVERNING PRINCIPLES

 Transparency in the procurement process and in the

implementation of procurement contracts
 wide dissemination of bid opportunities and participation
of pertinent non-government organizations.

 Competitiveness
 extending equal opportunity to enable private contracting
parties who are eligible and qualified to participate in
competitive bidding.
GOVERNING PRINCIPLES

 Streamlined procurement process

 uniformly apply to all government procurement
 simple and made adaptable to advances in modern
technology in order to ensure an effective and efficient
method.

 System of accountability
 both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of
procurement contracts and the private parties that deal with
GoP are, when warranted by circumstances, investigated and
held liable for their actions relative thereto.
GOVERNING PRINCIPLES

 Public monitoring of the procurement process and

the implementation of awarded contracts
 with the end in view of guaranteeing that these contracts
are awarded pursuant to the provisions of the Act and
this IRR, and
 that all these contracts are performed strictly according
to specifications
KEY CONCEPTS ON GOVERNMENT
PROCUREMENT
WHAT IS PROCUREMENT?

 Refers to the acquisition of goods, consulting

services, and the contracting for infrastructure
projects by the Procuring Entity.
WHAT IS GOODS?
 All items, supplies, materials and general support services, except Consulting Services
and infrastructure projects, which may be needed in the transaction of public
businesses or in the pursuit of any government undertaking, project or activity, whether
in the nature of:
 equipment,
 furniture,
 stationery,
 materials for construction, or
 personal property of any kind,
 including non-personal or contractual services, such as:
 the repair and maintenance of equipment and furniture,
 as well as trucking, hauling, janitorial, security, and related or analogous
services,
 as well as procurement of materials and supplies provided by the Procuring
Entity for such services.

The term “related” or “analogous services” shall include, but is not limited to, lease of
office space, media advertisements, health maintenance services, and other services
WHAT IS GOODS?
 All items, supplies, materials and general support services, except Consulting Services
and infrastructure projects, which may be needed in the transaction of public
businesses or in the pursuit of any government undertaking, project or activity, whether
in the nature of:
 equipment,
 furniture,
 stationery,
 materials for construction, or
 personal property of any kind,
 including non-personal or contractual services, such as:
 the repair and maintenance of equipment and furniture,
 as well as trucking, hauling, janitorial, security, and related or analogous
services,
 as well as procurement of materials and supplies provided by the Procuring
Entity for such services.

The term “related” or “analogous services” shall include, but is not limited to, lease of
office space, media advertisements, health maintenance services, and other services
WHAT IS INFRASTRUCTURE PROJECTS?
 Construction, improvement, rehabilitation, demolition, repair, restoration or
maintenance of:
 roads and bridges,
 railways,
 airports,
 seaports,
 communication facilities,
 civil works components of information technology projects,
 irrigation,
 flood control and drainage,
 water supply, sanitation,
 sewerage and solid waste management systems,
 shore protection,
 energy/power and electrification facilities,
 national buildings,
 school buildings,
 hospital buildings, and
 other related construction projects of the government.
WHAT IS CONSULTING SERVICES?
 Refer to services for infrastructure projects and other types of
projects or activities of the GoP requiring adequate external
technical and professional expertise that are beyond the capability
and/or capacity of the GoP to undertake such as, but not limited
to:
(i) advisory and review services;
(ii) pre-investment or feasibility studies;
(iii) design;
(iv) construction supervision;
(v) management and related services; and
(vi) other technical services or special studies.
PROCUREMENT ORGANIZATION
PROCUREMENT ACTORS

 Head of Procuring Entity (HoPE)

 Bids and Awards Committee (BAC)
 BAC Secretariat
 Technical Working Group (TWG)
 End-User
 Observers
HEAD OF PROCURING ENTITY (HoPE)

 Refers to:
 the head of the agency or body, or his duly authorized official, for
NGAs and the constitutional commissions or offices, and other
branches of government;
 the governing board or its duly authorized official, for GOCCs, GFIs
and SUCs; or
 the local chief executive, for LGUs

Provided, however, That in an agency, department, or office where the

procurement is decentralized, the head of each decentralized unit shall
be considered as the HoPE, subject to the limitations and authority
delegated by the head of the agency, department, or office.
Functions of the HoPE

 Establishes BAC and designates its members

 Ensures professionalization of the BAC, its Secretariat and
TWG Members
 Approves the Annual Procurement Plan (APP)
 Approves or Disapproves the Award of Contract
 Resolves Protest
 Ensure that the members of the BAC, its Secretariat and
TWG, shall give utmost priority to BAC assignments over all
other duties and responsibilities, until the requirements for
the said assignments at hand are completed
Officer-In-Charge as HoPE

 Powers and authority shall depend on the nature of the designation.

 Unless there is no reservation, OIC may approve or sign:

BAC Resolutions

Notice of Award
Notice to Proceed
 The incumbent HoPE may approve or disapprove the recommendation of the BAC so
long as he is neither the Chairman nor a member of the BAC who rendered the
recommendation
 The incumbent HoPE may sign the Notice to Proceed when he was a BAC member
but the contract must have been awarded by the previous HoPE.
Reservation Clause

 The HoPE reserves the right to reject any and all bids, declare a
failure of bidding, or not award the contract in the following situations:

a) If there is prima facie evidence of collusion between appropriate

public officers or employees of the Procuring Entity, or between the BAC
and any of the bidders, or if the collusion is between or among the bidders
themselves, or between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict,
suppress or nullify competition;

b) If the BAC is found to have failed in following the prescribed

bidding procedures; or
Reservation Clause

 c) For any justifiable and reasonable ground where the award

of the contract will not redound to the benefit of the GoP, as
follows:
(i) if the physical and economic conditions have significantly changed
so as to render the project no longer economically,
financially, or technically feasible, as determined by the HoPE;
(ii) if the project is no longer necessary as determined by the
HoPE; or
(iii) if the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.
BIDS AND AWARDS COMMITTEE (BAC)
 Composed of at least five (5) but not more than seven (7) members to
the BAC of unquestionable integrity and procurement proficiency.
 Regular Members:
 Chairperson, who is at least a third (3rd) ranking permanent official;
 Member representing the legal or administrative area (at least a 5th
ranking permanent official, or if not available, an officer of the next
lower rank)
 Member representing the finance area (at least a 5th ranking
permanent official, or if not available, an officer of the next lower
rank)

Provided, That in the case of bureaus, regional offices and sub-

regional/district offices, BAC members shall be at least a third (3rd)
ranking permanent personnel or if not available, an officer of the next
BIDS AND AWARDS COMMITTEE (BAC)
 Provisional Members:

 An officer who has technical expertise relevant to the

procurement at hand, and, to the extent possible, has
knowledge, experience and/or expertise in procurement; and

 A representative from the end-user or implementing unit

BAC QUORUM

 A majority of the total BAC composition as designated by the

HoPE shall constitute a quorum for the transaction of
business, provided that the presence of the Chairperson or
Vice-Chairperson shall be required.
 For purposes of determining a quorum, a member of the
BAC, which include the Chairperson or the Vice-Chairperson,
may be present, either in person or face-to-face through
videoconferencing, webcasting or similar technology for
procuring entities with such technology
BAC MEETINGS
 The Chairperson or, in his absence, the Vice-Chairperson,
shall preside at all meetings of the BAC. Meetings of the BAC
may be conducted electronically for procuring entities with
videoconferencing, webcasting, or similar technology
capability.
 The decision of at least a majority of those present, either in
person, face-to-face through videoconferencing, webcasting
or similar technology, or a combination thereof, at a meeting
at which there is quorum shall be valid and binding as an act
of the BAC.
 Provided, however, That the Chairperson or, in his absence,
the Vice-Chairperson, shall vote only in case of a tie.
FUNCTIONS OF THE BAC
(a) advertise and/or post the invitation to bid/request for expressions of
interest;
(b) conduct pre-procurement and pre-bid conferences;
(c) determine the eligibility of prospective bidders;
(d) receive and open bids;
(e) conduct the evaluation of bids;
(f) undertake post-qualification proceedings;
(g) resolve requests for reconsideration;
(h) recommend award of contracts to the HoPE or his duly authorized
representative:
FUNCTIONS OF THE BAC
(i) recommend the imposition of sanctions in accordance with Rule XXIII;
(j) recommend to the HoPE the use of Alternative Methods of
Procurement as provided in Rule XVI;
k) conduct any of the Alternative Methods of Procurement;
l) conduct periodic assessment of the procurement processes and
procedures to streamline procurement activities; and
m) perform such other related functions as may be necessary, including
the creation of a Technical Working Group (TWG)
n) Ensure that the Procuring Entity abides by the rules and regulations
o) Prepare Procurement Monitoring Report
BAC SECRETARIAT
 The HoPE shall create a Secretariat which will serve as the main
support unit of the BAC.
 An existing organic office within the Procuring Entity may also be
designated to serve as Secretariat.
 The HoPE may create procurement units that may serve concurrently
as BAC Secretariat in accordance with the guidelines issued by DBM.
 Head of the Secretariat shall be at least a 5th or 3rd ranking
permanent employee or, if not available, a permanent employee of
lower rank
 There is no minimum or maximum number of members of the BAC
Secretariat
FUNCTIONS AND RESPONSIBILITIES OF THE
BAC SECRETARIAT
a) Provide administrative support to the BAC and the TWG;
b) Organize and make all necessary arrangements for BAC and the TWG
meetings and conferences;
c) Prepare minutes of meetings and resolutions of the BAC;
d) Take custody of procurement documents and other records and
ensure that all procurements undertaken by the Procuring Entity are
properly documented;
e) Manage the sale and distribution of Bidding Documents to interested
bidders;
f) Advertise and/or post bidding opportunities, including Bidding
Documents, and notices of awards;
FUNCTIONS AND RESPONSIBILITIES OF THE
BAC SECRETARIAT
g) Assist in managing the procurement processes;
h) Monitor procurement activities and milestones for proper reporting to
relevant agencies when required;
i) Consolidate PPMPs from various units of the Procuring Entity to make
them available for review and prepare the APP; and
j) Act as the central channel of communications for the BAC with end-
user or implementing units, PMOs, other units of the line agency, other
government agencies, providers of goods, infrastructure projects, and
consulting services, observers, and the general public.
TECHNICAL WORKING GROUP (TWG)
 Pool of technical, financial, and/or legal experts
 Created by the BAC to assist in the following:
i. Review of the Technical Specifications, Scope of Work, and
Terms of Reference;
ii. Review of Bidding Documents;
iii. Shortlisting of Consultants;
iv. Eligibility Screening;
v. Evaluation of Bids;
vi. Post-Qualification; and
vii. Resolution of Request for Reconsideration.
END-USERS
 prepare actual requirement of the procurement project
 plan, prepare, finalize, revise PPMPs
 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
OBSERVERS
 To enhance the transparency of the process, the BAC shall invite, in
addition to the representative of the COA, at least two (2) observers:
 at least one (1) shall come from a duly recognized private group in
a sector or discipline relevant to the procurement at hand; and
 from a non-government organization (NGO)
 to sit in BAC proceedings and shall not have the right to vote during
the:
 eligibility checking,
 shortlisting,
 pre-bid conference,
 preliminary examination of bids,
 bid evaluation, and
 post-qualification,
PROCUREMENT PLANNING
WHAT IS PROCUREMENT PLANNING?
 Process of determining the following:
 What to buy?
 How many do you need?
 What are the details?
 What is the cost?
 When you need it?
 How to source it?

 Aims to manage the expectations for fulfillment of

procurement needs
PROCUREMENT PLANNING AND BUDGET LINKAGE
 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.
 Considered crucial to the efficient discharge of governmental
functions shall be included in the Annual Procurement Plan
(APP).
 The APP shall include provisions for foreseeable emergencies
based on historical records.
PROCUREMENT PLANNING AND BUDGET LINKAGE

 No procurement shall be undertaken unless it is in

accordance with the approved APP, including approved
changes thereto.

 The APP must be:

 consistent with the duly approved yearly budget of the Procuring
Entity and
 shall bear the approval of the HoPE or second-ranking official
designated by the HoPE to act on his behalf
PROJECT PROCUREMENT MANAGEMENT PLAN
(PPMP)

 A guide document in the procurement and contract

implementation process, as well as a vital reference in
procurement monitoring
 end-user or implementing units of the Procuring Entity shall
formulate their respective PPMPs for their different programs,
activities, and projects (PAPs)
 shall be consolidated by the BAC Secretariat into an APP
PROJECT PROCUREMENT MANAGEMENT PLAN
(PPMP)
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;
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.
PROJECT PROCUREMENT MANAGEMENT PLAN
(PPMP)

Downloadable at https://www.gppb.gov.ph/downloadables.php
ANNUAL PROCUREMENT PLAN (APP)

 The entirety of the procurement activities that will be

undertaken by the procuring entity within the calendar year
using the prescribed format issued by the GPPB
 shall be submitted to the GPPB on or before the end of
January of the budget year, and shall be posted in
accordance with E.O. 662, series of 2007, as amended
 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
ANNUAL PROCUREMENT PLAN (APP)

Column 1: Code (UACS/PAP) Column 5:Mode of Procurement

Column 2: Procurement Program/Project Column 6:Schedule of Each Stage of the Procurement Activity
Column 3: PMO/End-user Column 7:Source of Funds
Column 4: EPA or not Column 8:Estimated Budget
Column 9 Remarks (Brief Description of the P/A/P)

Downloadable at https://www.gppb.gov.ph/downloadables.php
CHANGES IN THE PPMP AND APP

 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
 BAC Secretariat shall be responsible for the consolidation of
these PPMPs into an APP, which shall be subject to the
approval of the HoPE.
PREPARATION OF PPMP AND APP

BAC &
END-USER HOPE
BAC SECRETARIAT

• Consolidates PPMP/s Approves

Prepares PPMP to APP
• Determines and
APP
Recommends
appropriate
procurement
modality
APP VIS-À-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
APP-CSE
METHODS OF PROCUREMENT
PROCUREMENT STANDARDS
 No procurement shall be undertaken unless it is in
accordance with the approved APP of the PE

 The method of procurement to be used shall be as indicated

in the approved APP

Mode of
Procurement
 WHAT ARE THE METHODS OF PROCUREMENT?

 Default Mode: (Section 10, IRR of RA No. 9184)

 COMPETITIVE BIDDING

 Exception: : (Section 48 to 54, IRR of RA No. 9184)

 ALTERNATIVE METHODS OF PROCUREMENT

WHAT IS COMPETITIVE BIDDING?

 Refers to a method of procurement which is open to

participation by any interested party and which consists of the
following processes:
 advertisement,
 pre-bid conference,
 eligibility screening of prospective bidders,
 receipt and opening of bids,
 evaluation of bids,
 post-qualification, and
 award of contract.
STANDARD BIDDING PROCEDURE FOR THE PROCUREMENT
OF GOODS AND INFRASTRUCTURE PROJECTS

Recommended Possible Period to Complete the Procurement Activity

Earliest Maximum

Goods 26 calendar days 136 calendar days

141 calendar days or

Infrastructure Projects 26 calendar days
156 calendar days
WHAT ARE THE ALTERNATIVE METHODS OF
PROCUREMENT (AMP)?

 Limited Source Bidding shall be resorted only:

 Direct Contracting  in highly exceptional
 Repeat Order cases

 Shopping  to promote economy and

efficiency
 Negotiated Procurement
 justified by conditions
specified in the IRR of RA
No. 9184
AMP – General Guidelines

 Refers to a method of procurement which is open to

participation by any interested party and which consists of the
following processes:
 advertisement,
 pre-bid conference,
 eligibility screening of prospective bidders,
 receipt and opening of bids,
 evaluation of bids,
 post-qualification, and
 award of contract.
AMP – General Guidelines
 No procurement shall be undertaken unless it is in
accordance with the approved APP of the PE

 The method of procurement to be used shall be as indicated

in the approved APP

Mode of
Procurement
AMP – General Guidelines
Prohibition on Splitting of Government Contract

Division or breaking up of government contracts into smaller quantities

and amounts, or dividing contract implementation into artificial phases
or sub-contracts for the purpose of evading or circumventing the
requirements of procurement rules & procedures is prohibited.

However, mere act of dividing a contract into smaller quantities or

phases does not automatically constitute splitting of contract.

PEs are authorized to divide a procurement project into lots to attract

the maximum competition but must ensure that doing so is not made to
circumvent any provisions of RA No. 9184 & its IRR.
- (NPM 020-2019)
AMP – General Guidelines
Reference to Brand Names

Reference to brand names shall not be allowed except for items or

parts that are compatible with the existing fleet or equipment of the same
make and brand and will maintain the performance, functionality and
useful life of the equipment.
This rule shall also apply to the goods component of infrastructure
projects and consulting services.

)
AMP – General Guidelines
Delegation of Authority

The conduct of the following may be delegated to End-user unit or any

other appropriate bureau, committee, or unit duly authorized by BAC
through a Resolution approved by the HoPE:
 Shopping
 Negotiated Procurement under Emergency Cases,
 Small Value Procurement and
 Lease of Real Property and Venue

)
AMP – General Guidelines
PhilGEPS Registration
 Manufacturers, suppliers, distributors, contractors, and/or consultants are
mandated to register with the PhilGEPS and provide a PhilGEPS Registration number
in the following alternative methods of procurement as a condition for award of the
contract:
1) Section 50 – Direct Contracting;
2) Section 52.1(b) – Shopping for ordinary office supplies and equipment not
available in DBM-PS;
3) Section 53.3 – Take Over of Contracts (Only for New Bidders, if any.);
4) Section 53.6 – Scientific, Scholarly or Artistic Work, Exclusive Technology
and Media Services;
5) Section 53.7 – Highly Technical Consultants;
6) Section 53.9 – Small Value Procurement; and
AMP – General Guidelines
Advertisement and Posting of Opportunity
 For alternative methods of procurement, the Procuring Entity may dispense
with the advertisement in the newspaper and posting requirement as
prescribed in Section 21.2.1 of the IRR of R.A. 9184.

 For the following alternative methods, however, the BAC, through its
Secretariat, shall post the procurement opportunity:
 Section 49 – Limited Source Bidding
 Section 52.1(b) – Shopping for ordinary office supplies and equipment
not available in the DBM-PS, for projects with ABC above ₱50,000.00
 Section 53.1 – Two Failed Biddings; and
 Section 53.9 – Small Value Procurement, for projects with ABC above
₱50,000.00;
 Section 53.11 – NGO Participation
AMP – General Guidelines
Advertisement and Posting of Opportunity

 the BAC, through its Secretariat, shall post the procurement

opportunity [e.g., Request for Quotation (RFQ) or Request for Proposal
(RFP)] for a period of at least three (3) calendar days in the:

 PhilGEPS website,
 the website of the Procuring Entity concerned, if available, and
 at any conspicuous place reserved for this purpose in the premises
of the Procuring Entity
AMP – General Guidelines
Posting of Posting of Notice of Award, Contract and Notice to Proceed

 NOA, Contract/PO, including the NTP if necessary shall be posted,

within 10 days from their issuance, in the following:

 PhilGEPS website,
 the website of the Procuring Entity concerned, if available, and
 at any conspicuous place reserved for this purpose in the premises
of the Procuring Entity

 Except for contracts with ABC of ₱50,000.00 & below.

AMP – General Guidelines
Timeline of Submission of Documentary Requirements

 The BAC shall indicate in the RFQ or RFP at what stage of the
procurement process to which the documentary requirements must be
submitted, i.e.,
 submission of offer/s,
 evaluation of offer/s,
 before issuance of Notice of Award or
 prior to payment.
.

)
Measures for Efficient Conduct of Procurement Activities during a State
of Calamity, or Implementation of Community Quarantine or Similar
Restrictions (GPPB Resolution No. 09-2020)

 Submission of procurement related documents, except for the

submission and receipt of bids, through electronic mail or facsimile shall
be allowed, subject to the submission of the printed copies as soon as
practicable, as determined by the BAC

 Use of videoconferencing, webcasting and similar technology in the

conduct of any of the meetings and determination of quorum by the
BAC

 Use of digital signatures in procurement related documents

 Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184,
the BAC, upon consultation with the end-user unit, shall be allowed to
cancel or terminate the conduct of procurement activities for any
justifiable reason
CONDITIONS, PROCEDURES & DOCUMENTARY
REQUIREMENTS OF SHOPPING AND SMALL
VALUE PROCUREMENT
SHOPPING
 method of procurement of goods whereby the Procuring Entity simply
requests for the submission of price quotations
 for readily available off-the-shelf goods or ordinary/regular equipment
 to be procured directly from suppliers of known qualifications

 This method of procurement shall be employed in any of the following cases:

a) When there is an unforeseen contingency requiring immediate purchase,
the amount shall not exceed ₱200,000 for NGAs, GOCCs, GFIs, SUCs,
and Autonomous Regional Government [Sec. 52.1(a)]

b) Procurement of ordinary or regular office supplies and equipment not

available in the DBM-PS, in the amount not to exceed ₱1,000,000
200,000 for NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional
Government [Sec. 52.1(b)]
PROCEDURE – Shopping under Sec. 52.1(a)
 The End-User unit or the duly authorized official or personnel shall
submit a purchase request to the BAC indicating the urgency to
address an identified need of the Procuring Entity and the unforeseen
contingency that caused its necessity
 The BAC shall immediately prepare the RFQ, indicating the
specifications, quantity, ABC, and other terms and conditions of the
contract.
 The RFQ may be sent directly to the supplier of known technical, legal
and financial qualifications.
 The BAC shall immediately validate the technical, legal and financial
capability of the supplier to supply and deliver the goods by requiring
the submission of relevant documents or through other verifiable
means to prove the capability of the Supplier.
PROCEDURE – Shopping under Sec. 52.1(a)

 Upon confirmation and ascertainment of such capability, the BAC

shall recommend to the HOPE the award of contract in favor of the
supplier with the Single or Lowest Calculated and Responsive
Quotation.
 In case of approval, the HOPE shall immediately enter into a contract
with the said supplier.
 PROCEDURE – Shopping under Sec. 52.1(a)

End-User unit or the duly

authorized official or Sends RFQ directly to the
personnel submits BAC prepares the RFQ supplier*
purchase request (PR) to
*may be 1
the BAC

BAC validates
Upon confirmation and
the technical,
Prepares ascertainment, the BAC Award the
legal and
Abstract of recommends to the contract to the
financial
Quotation/s HOPE the award of SCRQ/LCRQ
capability of the
contract
supplier
PROCEDURE – Shopping under Sec. 52.1(b)
 The End-User unit or the duly authorized official or personnel shall
submit a purchase request to the BAC relative to the goods to be
procured through Shopping.
 The BAC shall prepare the RFQ, indicating the specifications, quantity,
ABC, and other terms and conditions of the contract.
 Post RFQ for a period of at least three (3) calendar days in the
PhilGEPS website, website of the Procuring Entity, if available, and at
any conspicuous place reserved for this purpose in the premises of
the Procuring Entity, except for those with ABCs equal to ₱ 50,000.00
and below,
 The BAC shall send the RFQs to at least three (3) suppliers of known
qualifications, and at least three (3) price quotations must be
obtained.
PROCEDURE – Shopping under Sec. 52.1(b)

 The deadline for submission may be extended thrice, if none or less

than the required number of quotations are received.
 For ABCs more than ₱50,000.00, extensions of deadline shall likewise
be posted for a period of three (3) calendar days in the PhilGEPS, the
website of the Procuring Entity, if any, and at any conspicuous place
in the Procuring Entity’s premises.
 In case no supplier responded after the third extension, the BAC shall
conduct a mandatory review in accordance with Section IV(K) of this
Guidelines.
PROCEDURE – Shopping under Sec. 52.1(b)
 Upon receipt of at least three (3) quotations within the prescribed
deadline, the BAC shall prepare an Abstract of Quotations setting
forth the names of those who responded to the RFQ, their
corresponding price quotations, and the lowest calculated quotation
submitted.
 The BAC shall validate the technical, legal and financial capability of
the supplier to supply and deliver the goods.
 Upon confirmation and ascertainment of such capability, the BAC
shall recommend to the HOPE the award of contract in favor of the
supplier with the Lowest Calculated and Responsive Quotation.
 In case of approval, the HOPE shall immediately enter into a contract
with the said supplier.
 PROCEDURE – Shopping under Sec. 52.1(b)

End-User unit or the Post RFQ for a period of Sends RFQ

duly authorized BAC at least three (3) directly to at
official or personnel prepares calendar days least 3
submits purchase the RFQ suppliers*
request (PR) to the *Except for ABC of P 50k and below
*Receipt of at least 3
*Extend deadline if no quotation is
BAC received RFQs is mandatory

BAC validates
Upon confirmation and
the technical, Award the
Prepares ascertainment, the BAC
legal and contract to the
Abstract of recommends to the
financial supplier with
Quotation/s HOPE the award of
capability of the LCRQ
contract
supplier
DOCUMENTARY REQUIREMENTS: Shopping
under Sec. 52.1(b)

1. Mayor’s/Business Permit
2. PhilGEPS Registration Number

 Certificate of Platinum Membership may be submitted in lieu of the

Mayor’s Permit and PhilGEPS Registration Number.
 Procuring Entities already maintaining an updated file of any of the
bidder’s above-mentioned requirements, whether through the PhilGEPS
Certificate of Registration and Membership or its own records, may no
longer require its re-submission.

SHOPPING

Procedures Procedures

Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]

The RFQ may be sent

directly to the supplier of vs.
BAC shall send RFQs to at least
known technical, legal and
three (3) suppliers of known
financial qualifications.
qualifications, & at least three
Sending & receipt of one
(3) price quotations must be
(1) RFQ will suffice.
obtained.
Posting of the RFQ may be
dispensed with.
NEGOTIATED PROCUREMENT (NP)
 method of procurement of Goods, Infrastructure Projects and
Consulting Services, whereby the Procuring Entity directly
negotiates a contract with a technically, legally and financially
capable supplier, contractor or consultant in any of the following
cases:

 Two Failed Biddings;

 Emergency Cases;
 Take Over of Contracts
 Adjacent or Contiguous
 Agency-to-Agency
 Scientific, Scholarly or Artistic Work, Exclusive Technology
and Media Services;
NEGOTIATED PROCUREMENT (NP)

 Highly Technical Consultants;

 Defense Cooperation Agreement; Defense Inventory-Based Items
 Small Value Procurement
 Lease of Real Property and Venue
 NGO Participation
 Community Participation
 United Nations Agencies, International Organizations or
International Financing Institutions
 Direct Retail Purchase of Petroleum Fuel, Oil and Lubricant (POL)
Products and Airline Tickets
NP-SMALL VALUE PROCUREMENT

 Procurement of:

 (a) goods not covered by Shopping under Section 52 of

the IRR of RA 9184,
 (b) infrastructure projects, and
 (c) consulting services,

where the amount involved does not exceed ₱1,000,000

200,000 for NGAs, GOCCs, GFIs, SUCs, and Autonomous
Regional Government
PROCEDURE: NP-Small Value Procurement
 The End-User shall submit a request for SVP to the BAC, which
indicates the technical specifications, scope of work, terms of
reference, ABC and other terms and conditions
 The BAC shall prepare and send the RFQs/RFPs to at least three
(3) suppliers, contractors or consultants of known qualifications.
 Receipt of at least one (1) quotation is sufficient to proceed
with the evaluation thereof.
 Post RFQ for a period of at least three (3) calendar days in the
PhilGEPS website, website of the Procuring Entity, if available,
and at any conspicuous place reserved for this purpose in the
premises of the Procuring Entity, except for those with ABCs
equal to ₱ 50,000.00 and below,
PROCEDURE: NP-Small Value Procurement

 Pre-bid conference may be conducted at the discretion of the

BAC, in order to clarify and/or explain any of the requirements,
terms, conditions, and specifications stipulated in the RFQ/RFP.

 After the deadline for submission of quotations/proposals,

an Abstract of Quotations/Ratings shall be prepared setting
forth the names of those who responded to the RFQ/RFP,
their corresponding price quotations/ratings.
PROCEDURE: NP-Small Value Procurement

 The BAC shall recommend to the HOPE the award of

contract in favor of the supplier or contractor with the
Single or Lowest Calculated and Responsive Quotation (for
goods or infrastructure projects), or consultant with the
Single or Highest Rated and Responsive Proposal (for
consulting services).

 In case of approval, the HOPE shall immediately enter into

contract with the said supplier, contractor or consultant.
 PROCEDURE: NP-Small Value Procurement

Post RFQ for a

Sends RFQs/RFPs to
BAC period of at
End-User submits a at least 3 suppliers,
prepares least three (3)
request for SVP to contractors, or
the RFQ calendar days
the BAC consultants*
*Except for ABC of P 50k *Receipt of at least 1 RFQ will suffice
and below

BAC validates the Upon confirmation and Award the contract

Prepares
technical, legal and ascertainment, the BAC to the supplier or
Abstract of
financial capability of recommends to the contractor with the
Quotations /
the supplier, contractor, HOPE the award of LCRQ, or consultant
Ratings
or consultants* contract with the HRRP
DOCUMENTARY REQUIREMENTS:
NP-Small Value Procurement
1. Mayor’s/Business Permit
2. PhilGEPS Registration Number
3. Professional License /Curriculum Vitae (Consulting Services)
4. PCAB License (Infra.)
5. Income/Business Tax Return (For ABCs above P500K)
6. Omnibus Sworn Statement (For ABCs above P50K)

 Certificate of Platinum Membership may be submitted in lieu of the Mayor’s Permit

and PhilGEPS Registration Number.
 Procuring Entities already maintaining an updated file of any of the bidder’s above-
mentioned requirements, whether through the PhilGEPS Certificate of Registration
and Membership or its own records, may no longer require its re-submission.
119
Thank You!!!
CHRISTIAN G. MENDOZA
Chief Budget and Management Specialist
Department of Budget and Management
MIMAROPA Regional Office

2nd Floor CSP Bldg, 815 Quezon Avenue, Quezon City

Tel No.: (02) 374 7268 Tel./Fax No.: (02) 3747269
eMail: cmendoza@dbm.gov.ph