PROCUREMENT PLANNING

& MONITORING

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 OUTLINE

1. What is planning?
2. Nature of Planning
3. Procurement Planning
3.1 Importance of Planning
3.2 Preparing the PPMP
3.3 Preparing the APP
4. Procurement Monitoring
4.1 Importance of Monitoring
4.2 Preparing the PMR

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PROCUREMENT PLANNING
Preparation of PPMP and APP

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PHILIPPINE PROCUREMENT PARADIGM

• Review studies • Post/Advertise

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

Identify • Cost-benefit • Oversee Implement

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

NEEDS SATISFACTION

Capacity Development Division 4

PLANNING

PLANNING

- refers to predetermined
course/s of action to achieve a
desired end/goal.

Capacity Development Division 5

PROCUREMENT PLANNING

PROCUREMENT PLANNING

“Process of identifying which

project needs can be best met by
procuring products and services
outside the project organization
and should be accomplished
during the project planning
effort”

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 PROCUREMENT PLANNING

The following competencies are required:

 knowledge of goods,
 accounting,
 warranty and contract laws, and
 scheduling

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 PROCUREMENT PLANNING

Agencies and organizations must:

• apply the rules in procurement when planning

• know and understand the scope of their approved

purchasing authority and use appropriate
procurement methods

• protect the taxpayers’ interests and safeguard the

resources allotted to each department

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 WHY PROCUREMENT PLANNING

 Procurement Planning ensures that the overall goal of a

particular project will be effectively and efficiently
achieved.

 Precludes occasions for unnecessary government

purchases and circumventions of the prescribed
procurement procedures

− advance deliveries
− suki system
− unwarranted resort to alternative methods
procurement

 However, it must be done within budgetary context

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 SECTION 7.1 OF IRR

Procurement Planning and Budgeting Linkage

 Within approved budget of procuring entity

 Judiciously done
 Consistent with government fiscal measures
 Considered crucial to the efficient discharge of
governmental functions
o Required for the day-to-day operations
o In pursuit of the principal mandate of the procuring
entity concerned
 The APP shall include provisions for foreseeable
emergencies based on historical records.
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 SECTION 7.2 OF IRR

• No procurement unless in accordance with the Annual

Procurement Plan (APP)

• Approval of Head of Procuring Entity (HOPE) or

designated second-ranking official

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 ACTORS IN PROCUREMENT
PLANNING

TECHNICAL
END USER WORKING GROUP
BUDGET
OFFICE (TWG)

BIDS AND AWARDS COMMITTEE

APPROVING
(BAC) &
AUTHORITY/HoPE 12
AND BAC SECRETARIAT
 ACTIVITIES IN PROCUREMENT
PLANNING
• Encompasses activities related to the identification of
supply requirements of the procuring entity,
including work or product specification, quantity and
timing, or scheduling, as well as the search for
possible sources of supply

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 IDENTIFYING THE NEED

Suggested basis for identifying needs:

1. Core functions of the end-user unit in the

organization, i.e Accounting, Legal etc.
2. Historical data/Foreseen contingencies;
3. Identified purpose/goals/MFOs;
4. P.E’s Strategic Plans;
5. Current supply inventory;
6. Other maintenance and operating needs.

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 TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

 Consult Stakeholders
 In developing the project requirements and TS/SOW/TOR,
the Procuring Entity may engage the services of technical
experts, whether in-house or consultants, to ensure that the
requirements and the TS/SOW/TOR are adequate to achieve
the objectives of the particular procurement.
 Set clear Specifications:
– Generic and flexible
– Clear and unambiguous
– Reminder on Reference to Brand Names (Section 18)
– Updated, where technology is taken into account
– Fits the actual requirements of the PMO/End-user

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 Procurement of Goods and Services
TECHNICAL SPECIFICATIONS: FACTORS TO CONSIDER

1) Nature of Goods to be Procured

• common-use supplies

• inventory items

• non-common use supplies

• services

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 Procurement of Goods and Services
TECHNICAL SPECIFICATIONS: FACTORS TO CONSIDER

2) Availability in the Market

• determines the mode of procurement to implement

• seasonal or customized goods may require intensive

planning in terms of timelines

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 Procurement of Goods and Services
TECHNICAL SPECIFICATIONS: FACTORS TO CONSIDER

3) Operation and maintenance of equipment/non-

consumable goods

• consideration on the operation and maintenance

requirements of goods to be procured

• warranty requirements

Obsolescence of equipment/non-consumable goods

• crucial in deciding whether to lease or buy

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 Procurement of Goods and Services
TECHNICAL SPECIFICATIONS: FACTORS TO CONSIDER

• Procuring Entity’s requirements in terms of

functional, performance, environmental interface, and
design standard requirements

• must include the testing parameters for goods

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 Market Survey/Study

Uses
 defining requirements
 preparing budgets
 choosing procurement methods
 planning and scheduling of procurement
 evaluation of bids/proposal
 justify contract amendments

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 Market Survey/Study

CONDUCTED THROUGH:
• Internet
• Survey
• Interview
• Study

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 Market Survey/Study

EXPECTED RESULTS:
• Identification, interest and availability of
suppliers, contractor or services providers, their
technical capability and financial capacity
• Price trends

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Procurement of Infrastructure Projects

• Requires appropriate timing/phasing of related project

activities, such as engineering design and acquisition of
right-of-way to reduce/lower project costs, among others

• Detailed Engineering – establishes the technical viability of

the project and conformance to land use and zoning
guidelines prescribed by existing laws

• No bidding and award of contract for infrastructure

projects unless the detailed engineering investigations,
surveys and designs, including the acquisition of ROW,
are sufficiently carried out and duly approved, exception:
design and build scheme
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Procurement of Consulting Services

Drafting of Terms of Reference

• Describe the Output Expected from the

Consultancy as a Whole

• Prepare list of tasks or duties for individual

experts

• Indicate basic qualifications for each expert

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 APPROVED BUDGET FOR THE
CONTRACT (ABC)
 End user to conduct market study
 Market price, inflation and cost of money related to the
procurement time table must also be considered.
 In determining the ABC, the end-user unit, with the
assistance of the TWG (when necessary), must consider
the different cost components.

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 APPROVED BUDGET FOR THE
CONTRACT (ABC)
FACTORS TO CONSIDER
 The 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
 The 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

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 APPROVED BUDGET FOR THE
CONTRACT (ABC)
FACTORS TO CONSIDER
 Quantities, considering that buying in bulk usually
means lower unit prices (goods/services)
 The supply of spare parts and/or maintenance services, if
these are part of the contract package (goods/services)

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 APPROVED BUDGET FOR THE
CONTRACT (ABC)
 The ABC reflected in the APP and PPMP shall be consistent
with the appropriations for the project authorized in the
GAA, continuing and automatic appropriations, the
corporate budget, and the appropriations ordinance, as the
case may be.
 For multi-year contracts, for which a Multi-Year Obligational
Authority (MYOA) or an equivalent document is required, the
ABC shall be that incorporated in the project cost reflected
in the MYOA or equivalent document
 For Foreign-funded Procurement, the ABC refers to the cost
estimate prepared by the PE and approved by the foreign
government/foreign or international financing institution as
specified in the Treaty or International or Executive
Agreement
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PROCUREMENT MILESTONES

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 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

 Prepared by the end-user unit during the budget preparation to
support the cost estimates in the budget proposal.
 The end-user or implementing units shall be responsible for the
preparation of all documents necessary for the procurement
activity, including but shall not be limited to, the technical
specifications, scope of work, or terms of reference
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PPMP SAMPLE FORMAT

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PROCUREMENT MILESTONES

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 PROCUREMENT MILESTONES

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.

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 METHOD OF PROCUREMENT

 As a general rule, all procurement should be through

public bidding

 The selection of the method of procurement is

dependent on the presence or absence of specific
conditions of other methods of procurement in Sections
48 to 54 of the revised IRR

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 ANNUAL PROCUREMENT PLAN (APP)

 Legal Basis: Section 7 of the IRR of RA 9184

 Refers to the entirety of the procurement activities that will be
undertaken by the procuring Entity within the calendar year
using the prescribed format required by the GPPB.
 Shall be consolidated by the BAC Secretariat from the PPMPs
of end-user units. The BAC shall take into consideration the
following factors:
 One year planning perspective
 Emergency or Contingency Fund (e.g., lump-sum not
more than 4% of MOOE
 Schedule of Activities (involve all stakeholders)
 No procurement shall be undertaken unless in accordance
with APP
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ANNUAL PROCUREMENT PLAN (APP)
 All procurement should be meticulously and judiciously planned
by procuring entity

 APP should be maintained and updated regularly

 In the consolidation of PPMPs, the BAC may adopt a strategy

through where similar items of procurement are packaged into
one procurement undertaking.

 A review and updating of the individual PPMPs and the APP

shall be done regularly, at least once every 6 mos. or as often as
necessary. The end-user or implementing units shall be
responsible for the changes to the PPMPs, while the BAC
Secretariat shall be responsible for the consolidation of these
PPMPs into an APP

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 ANNUAL PROCUREMENT PLAN (APP)

1 2 3 5 7
4 6

Per GPPB Resolution No. 20-2015

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

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 PREPARATION OF APP

n
ra tio
a

g B u dg
et P re p
APP
n
uri
When GAA,
D Corporate
Budget or
Upon Appropriation
approval of Ordinance
Submit HOPE, becomes
Budget Budget final, PPMPs
Proposal to Office will will be
Submit to
HOPE forward finalized and
Budget
PPMPs to submitted to
Office for
BAC BAC
evaluatio
Secretariat Secretariat
Prepare n
for for
Project HOPE &
Procuremen Budget Office Consolidati consolidation
on and and approval
t Review
BAC of the HOPE.
Managemen
t Plan Secretariat
End-User
(PPMP)
Unit
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 PREPARATION OF APP

Procedure under the 2016 IRR of RA 9184

HOPE/Approvi
When GAA,
APP
ng Body Corporate Budget
BAC & or Appropriation
Secretariat Submit
Ordinance
becomes final,
Indicative
Budget PPMPs will be
APP and finalized and
Office Consolidati budget submitted to BAC
on of proposal to Secretariat for
PPMPs to
End-User Submit to Indicative
HOPE/oversigh consolidation, to
t body for BAC for final
Unit Budget APP by BAC approval recommendation
Office for Sec and
of modality and
evaluatio recommend
final approval of
Prepare n ation by
the HOPE
Project BAC of
Procuremen modality
t During Budget Preparation
Managemen
t Plan 39
 PPMP CONSOLIDATION

• Checking of • Recommendation
procurement of procurement
methods methods by the
BAC

• Propose
procurement
methods (End-
user)

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TIPS IN CONSOLIDATING PPMPS

Sort by Type of Procurement

Goods Infra Consulting

Check for Items which can be merged

i.e: IT Equipment, Design and Build projects, Office Furniture, etc

Common Use Supplies

CSE NON-CSE

Mode of Procurement

Sources of Funds

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 REVISIONS ON APP

End-User Update
/Supplement
PPMP

Consolidate
PPMP to
BAC & BAC Sec Updated/
Supplemental
APP

Approve
Updated
HOPE /Supplemental
APP
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ANNUAL PROCUREMENT PLAN (APP)
Procurement Short of Award
 To facilitate the immediate implementation of procurement ,
even pending approval of the GAA, corporate budget or
appropriations ordinance, as the case may be, the PE may
undertake the procurement activities short of award
 For a contract with a period not exceeding one (1) year,
the ABC shall be based on the amount in the approved
indicative APP as included in the proposed national budget
(NEP) submitted by the President to Congress; on budget
levels as proposed to the governing board for GOCCs
 No award of contract shall be made until the GAA or
corporate budget has been approved
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 APP vis-a-vis APP-CSE

 APP being referred to in the IRR of RA 9184 is different from

the APP-CSE

 APP-CSE serves as basis of DBM – PS in projecting its

inventory requirements, scheduling of activities, and over-all
management of the central procurement of common-use
goods (DBM Circular Letter 2011-6 & 2011-6a)

 Common-use supplies – refers to those supplies and materials

and equipment included in the price list of the PS which are
necessary in the transaction of the official business of the
procuring entity and consumed in its day-to-day operations

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APP-CSE

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 POSSIBLE CONSEQUENCES

1. Possible COA AOMs/Disallowances

2. Wastage of Government Funds

3. Suspension of Officials

4. Possible administrative/criminal liabilities

5. Project Delays

6. Project Failures

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PROCUREMENT
MONITORING
Preparation of PMR

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 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.

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 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 Head of the

Procuring Entity (HOPE) the GPPB in printed and electronic format
within 14 cd after the end of each semester.
( Executive Orders 662, 662-A and 662-B, series of 2007)

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 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

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PROCUREMENT MONITORING REPORT
(PMR)

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 MONITORING AND EVALUATION

 Monitoring entails tracking of inputs, activities,

outputs, and outcomes of the procurement activity

 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.

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 SUBMISSION & POSTING
REQUIREMENTS
• APP
– Submission to the GPPB (AO 222) and posting in the procuring
entity's website of its APP for CY 2012 (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
– Submission to the GPPB (Section 12.2 of IRR of RA 9184) and
posting in the procuring entity's website of its approved
Procurement Monitoring Report every semester, following the
form and format downloadable from the GPPB website (Section
1.2 of the IRR of EO 662)

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 THANK YOU!!
Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph

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