02 Proc Planning & Monitoring - DAAM.05102018 - EDITED

PROCUREMENT
PLANNING &
MONITORING
Government Procurement Policy Board – Technical Support Office

OUTLIN
E
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
Government Procurement Policy Board – Technical Support Office 2
PROCUREMENT PLANNING
Preparation of PPMP and APP

PHILIPPINE PROCUREMENT
PARADIGM
 Review studies  Post/Advertise
Assess Procure
 Consolidate into APP opportunity
 Decide procurement  Open and evaluate
method bids
 Approve APP  Post-qualify
 Determine readiness  Award and enter into
contract
Identify  Cost-benefit analysis  Oversee Implement

 Feasibility study implementation
 Market study  Inspect and accept
 PPMP deliveries
 Release payment
NEEDS SATISFACTION

PLANNING
 refers to predetermined course/s of

action to achieve a desired end/goal.

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”

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

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.

SECTION 7.2 OF IRR
 No procurement unless in accordance with the Annual Procurement Plan (APP)
 Approval of the APP by the Head of Procuring Entity (HoPE) or designated

second-ranking official is mandatory

SECTION 7.2 OF IRR
END BUDGET TECHNICAL

USER OFFICE WORKING GROUP
BIDS AND AWARDS COMMITTEE (BAC) APPROVING

& AUTHORITY/HoPE
BAC SECRETARIAT
SECTION 7.2 OF IRR
Source: Budget Operations Manual for Local Government Units

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.
 Minimize the practice of doing short-cuts
 Each end-user unit shall prepare the PPMP 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

PREPARATION OF PPMP
During Budget Preparation/Budget Call
HOPE/Approving
Body
BAC &
Secretariat
Budget Submit Indicative

Office Consolidation of
APP and budget
proposal to
PPMPs to HOPE/oversight
Indicative APP by body for approval
Submit to BAC Sec and
End-User Budget Office recommendation
for evaluation by BAC of modality
Unit
Prepare Project
Procurement
Management
Plan (PPMP)

PPMP SAMPLE FORMAT
D o w n l o a d a b l e a t h t t p : / /w w w . g p p b . g o v . p h / d o w n l o a d a b l e s / S a m p l e F o r m s . h t m l

PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
Contracting Arrangement
PPMP Procurement
Estimated
Time
Extent/size
schedule
budget
Methods
Type and Objective

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/MFOs;
4. P.E’s Strategic Plans;
5. Current supply inventory;
6. Other maintenance and operating needs.

TECHNICAL SPECIFICATIONS,
SCOPE OF WORK, AND TERMS OF
 Consult Stakeholders
REFERENCE
 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.

TECHNICAL SPECIFICATIONS,
SCOPE OF WORK, AND TERMS OF
 Set CLEAR Specifications:
REFERENCE
- 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

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

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.

PROCUREMENT MILESTONES
http://www.gppb.gov.ph/timelines/timelines.htm

Factors to consider in identifying procurement timelines:
1. Budget rules, i.e. CSE – every quarter;
2. Nature of Procurement Projects, whether simple or complex
3. For shopping/small value procurement, give at least two weeks
4. Foreseen/Unforeseen Contingencies, i.e. frequent change in specifications,
etc.
5. Availability in the market.

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

PPMP vs Purchase Request
 Purchase Request (PR) – 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.

ANNUAL PROCUREMENT PLAN (APP)
 Legal Basis: Section 7 of the revised 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
issued 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 the approved

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 months 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.

1 2 3 4 5 6 7 8
Per GPPB Circular 07-2015

• Column 1 - Code (UACS/PAP)
• Column 2 - Procurement Program/Project
• Column 3 – PMO/End-user
• Column 4 – Mode of Procurement
• Column 5 – Schedule of Each Stage of the Procurement Activity
• Column 6 - Source of Funds
• Column 7 - Estimated Budget
• Column 8 - Remarks (Brief Description of the P/A/P)
D o w n l o a d a b l e a t h tt p : / / w w w . g p p b . g o v . p h / d o w n l o a d a b l e s / S a m p l e F o r m s . h t m l
Notes to Remember in Filling out APP!
 PE’s internal numbering system or use the Unified Account Codes (UACS)
may be used as PAP Codes. Please refer to Joint Circular No. 2013-1 COA-
DBM-DOF-Unified Accounts Code Structure.
 For the PMO/End-user column, multiple end-user units are allowed only if
the procurement activity was consolidated by the BAC to procure
requirements of the end-user units.
 Drop down lists are available for Mode of Procurement and Source of Funds
for ease of use.

Notes to Remember in Filling out APP!
 Specific schedule for Ads/Post of IB/REI (similar to RFQ), Sub/Open of
Bids, NOA and/or Contract Signing are automatically identified thru MS
Excel formula. Specific period (dates, month, quarter) for each procurement
activity should be indicated.
 Total ABC column cannot be edited but is automatically computed by filling

out the MOOE or CO columns. Ensure that amounts indicated are aligned
with budget documents.
 For MYOA projects, ABC shall be the full amount stated in the MYOA with
remarks on the amount to be disbursed on the particular FY.
PREPARATION OF APP
GAA, Corporate Budget or Appropriation
Ordinance Becomes Final HOPE/Approving
Body
BAC &
Secretariat
End-User
Unit
Approval of APP
by HOPE/
Consolidation of oversight body
Budget PPMPs to APP by
Office Finalize Project BAC Sec and
Procurement recommendation by
Management BAC of modality
Plans (PPMPs)
Provide
comments on
Indicative
PPMPs to end-
users

PPMP CONSOLIDATION
 Checking of  Recommendation
procurement of procurement
methods methods by the BAC
 Propose
procurement
methods (End-user)

PPMP CONSOLIDATION
Update/
Supplement End-User
PPMP
Consolidate
PPMP/s to BAC &
Updated/
BAC Secretariat
Supplemental
APP
Approve
Updated/
Supplemental HOPE
APP

Procurement Short of Award
 To facilitate the immediate implementation of procurement, even pending

approval of the GAA, corporate budget or appropriations ordinance, 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; or
on budget levels as proposed to the governing board for GOCCs or in the
executive budget for LGUs
 No award of contract shall be made until the GAA or corporate budget has
been approved

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

APP-
CSE

TIPS IN CONSOLIDATING PPMPS

5 RIGHTS IN PUBLIC
PROCUREMENT
Value for Money
PROCU
REMEN
T

PROCUREMENT MONITORING
Preparation of PMR

WHAT IS MONITORING?
Defined as:
 Tracking of inputs, activities, outputs, and outcomes of the procurement

activity; and
 Tracking results of current operations on a regular basis.

MONITORING AND EVALUATION
 It is the BAC who shall be responsible for ensuring that the procuring entity
abides by the standards set forth under R.A. 9184 and its IRR.
 BAC is required to prepare a PROCUREMENT MONITORING REPORT

(PMR) in the form prescribed by the GPPB.
 The PMR shall cover all procurement activities specified in the APP, whether
on-going and completed from holding of the pre-procurement conference to
the issuance of the notice of award and approval of the contract, including
the actual time for each major procurement activity.
 The PMR shall be approved and submitted by the HoPE to the GPPB in
printed and electronic format within 14 calendar days after the end of each
semester.
 ( Executive Orders 662, 662-A and 662-B, series of 2007)

WHY MONITOR?
 Checks compliance to R.A. 9184 and its IRR
 Assesses performance as to:

 Efficiency
 Effectiveness
 Ex-post evaluation examines the project outcomes and impacts. It is a

determination of the benefits derived from the project, the attainment of
specific targets for key indicators, and the sustainability of the project.
 Aids GPPB in crafting policies that address weaknesses and uphold strengths
of the Philippine Procurement System

PROCUREMENT MONITORING REPORT
(PMR)
Note:
 Latest version of PMR shows separate lists of Completed (top portion) and On-going Procurement Activities (bottom portion)
Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html

(PMR):
CLOSER LOOK
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
 Column 1 - Code (UACS/PAP)

 Column 2 - Procurement Program/Project
 Column 3 – PMO/End-user
 Column 4 – Mode of Procurement
 Column 5-16 – Actual Schedule of Each Stage of the Procurement Activity

(PMR):
CLOSER LOOK
17 18 19 20 21 22 23
 Column 17 - Source of Funds

 Column 18-20 - ABC
 Column 21-23 – Contract Cost (Awarded Price)
 Total Allotted Budget of all completed Procurement Activities
 Total Contract Price of all completed Procurement Activities
 Savings

(PMR):
CLOSER LOOK
24 25 26 27 28 29 31
30
 Column 24 - List of Invited Observers

 Column 25-30 - Date of Receipt by Observers of the Invitation
 Column 31 – Remarks explaining any changes from the APP

SUBMISSION & POSTING
 APP REQUIREMENTS
 1) Submission to the GPPB (AO 222) and 2) posting in the procuring entity's
website of its APP (Section 1.1 of the IRR of EO 662), following the form
and format downloadable from the GPPB website
 Changes in the APP, if any, for the budget year shall be submitted to the
GPPB in July of the current budget year, and in January of the following
budget year
 PMR
 1) Submission to the GPPB (Section 12.2 of IRR of RA 9184) and 2) posting
in the procuring entity's website of its approved Procurement Monitoring
Report within 14 calendar days after each semester, following the form and
format downloadable from the GPPB website (Section 1.2 of the IRR of EO
662)

TH A NK Y O U !
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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PROCUREMENT

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Identify  Cost-benefit analysis  Oversee Implement

Government Procurement Policy Board – Technical Support Office

 refers to predetermined course/s of

Government Procurement Policy Board – Technical Support Office

 “Process of identifying which

Government Procurement Policy Board – Technical Support Office

 Precludes occasions for unnecessary government purchases and circumventions

 However, it must be done within budgetary context

Government Procurement Policy Board – Technical Support Office

 Within approved budget of procuring entity

Government Procurement Policy Board – Technical Support Office

 No procurement unless in accordance with the Annual Procurement Plan (APP)

 Approval of the APP by the Head of Procuring Entity (HoPE) or designated

Government Procurement Policy Board – Technical Support Office

END BUDGET TECHNICAL

BIDS AND AWARDS COMMITTEE (BAC) APPROVING

Source: Budget Operations Manual for Local Government Units

Government Procurement Policy Board – Technical Support Office

 Tool allowing the PE the flexibility to optimize the

Government Procurement Policy Board – Technical Support Office

Budget Submit Indicative

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Type and Objective

Government Procurement Policy Board – Technical Support Office

1. Core functions of the end-user unit in the organization, i.e Accounting,

2. Historical data/Foreseen contingencies;

4. P.E’s Strategic Plans;

5. Current supply inventory;

6. Other maintenance and operating needs.

Government Procurement Policy Board – Technical Support Office

may engage the services of technical experts, whether in-house or consultants, to

objectives of the particular procurement.

Government Procurement Policy Board – Technical Support Office

- 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

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Factors to consider in identifying procurement timelines:

1. Budget rules, i.e. CSE – every quarter;

2. Nature of Procurement Projects, whether simple or complex

3. For shopping/small value procurement, give at least two weeks

4. Foreseen/Unforeseen Contingencies, i.e. frequent change in specifications,

5. Availability in the market.

Government Procurement Policy Board – Technical Support Office

 As a general rule, all procurement

 The selection of the method of

Government Procurement Policy Board – Technical Support Office

 Purchase Request (PR) – Request for purchase or requisition of supplies,

Government Procurement Policy Board – Technical Support Office

 Legal Basis: Section 7 of the revised IRR of RA 9184

Government Procurement Policy Board – Technical Support Office

 No procurement shall be undertaken unless in accordance with the approved

 All procurement should be meticulously and judiciously planned by

 APP should be maintained and updated regularly