PROCUREMENT

OVERVIEW
LEARNING OBJECTIVE/S:
Provide a summary of important concepts
of procurement to establish a common
foundation for participants

Procurement
the acquisition of goods, consulting services, and the

contracting for infrastructure projects by the procuring

entity
R.A. No. 9184, Government Procurement Reform Act
(GPRA)

Government Procurement

Transparency

Competitiveness

Streamlined
Process

Accountability

Public
Monitoring

Procurement
Goods
Supplies, materials and general support services essential to the operation

of a government entity or needed in the performance of government

programs and projects

Consulting Services
Those which require adequate external and professional expertise beyond

the capability and/or capacity of the government to undertake

Infrastructure Projects
Include construction, improvement, rehabilitation, repair, restoration or

maintenance of roads, bridges, railways, airports, seaports, national

buildings, hospital buildings, and other related construction projects in the
government

Procurement
Competitive Bidding
Alternative

Availability of
Alternative Methods

Limited Source
Bidding
Direct
Contracting

Goods

Repeat Order

Shopping
Negotiated
Procurement

Consulting
Services

Infrastructure
Projects

Limited Source
Bidding
Direct Contracting
Repeat Order
Shopping
Negotiated
Procurement
Limited Source
Bidding
Negotiated
Procurement
Negotiated
Procurement

EXERCISES
Procurement Basics
As a group determine whether each item for procurement
is a good, consulting service, or infrastructure project.
Should such item/s be procured through competitive
bidding? If not, state your reasons and choose which type
of alternative procurement applies best.
Be ready to share your answers in 5 minutes.

CONSULTING
SERVICES
LEARNING OBJECTIVE/S:
Learn to distinguish consulting services from
other subjects of procurement
Become familiar with basic guidelines for hiring
of consultants

Consultant
Natural or juridical person
Hired based on expertise, experience and capability
Filipino consultants preferred if services required

are within their expertise and capability

Technology and knowledge transfer, when applicable
UMBRELLA ORGANIZATION OF CONSULTANTS
Accredit members based on types of services and
professional fields
Recognition to be done by GPPB

Services
Goods

on-personal or contractual
services

Consultancy

repair and maintenance of

equipment and furniture, as well as
trucking, hauling, janitorial, security
and related or analogous services
lease, purchase of office space,
media advertisements, health
maintenance services and other
services essential to operation

require adequate external technical

and professional expertise

beyond the capability of the

government to undertake

Kinds of Consulting Services

Advisory and
Review
Services

Pre-investment/
Feasibility
studies

Design
Services

Construction
supervision

Management
and related
services

Other technical
services or
special services

EXERCISES
A. Consultants
Read the case study.
Determine whether or not a consultant is needed for the
project. If so, what should be the qualifications of the
consultant? What other conditions will you impose?

B. Service as Goods or Consultancy

As a group determine whether each of the services fall under
goods or consultancy.
Be ready to share your answers after 5 minutes.
C. Kinds of Consulting Services
As a group determine the type of each consulting service
based on their description.
Be ready to share your answers after 5 minutes.

PROCUREMENT
PLANNING
LEARNING OBJECTIVE/S:
Understand the procurement planning process
Become familiar with important planning
documents
Formulate procurement strategies

Procurement Planning
Preparations for the next fiscal years procurement start at

the beginning of the fiscal year and inextricably tied to

planning annual projects and budgets
Each DOH Procuring Entity must judiciously plan its

procurement for the whole year.

Procurement planning should be within the Procuring

Entitys Budget Proposal reflecting its priorities and

objectives for the budget period.

Procurement Planning

Procurement Planning
DBM
Budget
Call

Prepare
WFP

Develope
PPMP

Consolida
te PPMP
to APP

Approve
APP

Milestones:
Preparing the Work Financial Plans (WFP)
Developing the Project Procurement Management Plans (PPMP)
Consolidating the PPMPs into the Annual Procurement Plan
Approval of the Annual Procurement Plans

PPMP: Project Procurement Management Plan

Contents:

1. Whether PAPs will be contracted out,

implemented by the administration, or consigned;
2. Type and objective of the contract to be
employed;
3. Extent or size of contract scope and packages;
4. Procurement method to be adopted, indicating if
the procurement is to be outsourced
5. Time schedule for each procurement activity and
for the contract implementation; and

6. Estimated budget for the general components of

the contract

The PPMP is a

document prepared
by the end-user units
that reflects the
different PAPs, as well
as the mode of
procurement to be
undertaken for the
succeeding calendar
year, in consideration
of the DOH Budget
Proposal.

PPMP: Project Procurement Management Plan

Consolidate
APP

Develop
Project
Requirements

Determine
ABC

Plot
Milestones

Preparing the PPMP:

1. Develop Project Requirements
2. Determine the Approved Budget for Contract (ABC)
3. Terms of Reference
4. Plot Procurement Milestones
5. Method of Procurement

Determine
Procurement
Method

APP: Annual Procurement Plan

The APP is the

PPMP
End-user A

document that
consolidates the various
PPMPs submitted by the
various PMOs and enduser units within the
Procuring Entity.

APP
PPMP
End-user B

It reflects the entirety of

PPMP
End-user C

the procurement
activities that will be
undertaken by the
Procuring Entity within
the calendar year.

APP: Annual Procurement Plan

Contents:
1. Name of the project/procurement;
2. PMO or end-user unit;

Include all

3. General description of the project/procurement

(general description of requirements and
quantities, where applicable);

Only crucial

activities for the

year
procurements

4. Procurement methods to be adopted, and

indicating if the procurement tasks are to be
outsourced

Factor

5. Time schedule for each procurement activity;

and,

Regularly

6. ABC.

foreseeable
emergencies
reviewed and
updated

Procurement Strategy
The procurement strategy is the
approach to be adopted by the
BAC in the procurement of items
included in the APP.

The BAC may also have to decide

on procurement through bid lots
and contract packages.

BAC should determine the extent

of diversity, quantities, quality, cost,
the supply market, and other
characteristics of the procuring
entitys requirements for the year.

The BAC, through the help of the

TWG and the Secretariat, shall
determine the best options for the
Procuring Entity.

EXERCISES
A. Procurement Planning Process
Without looking at the previous slides, outline the
procurement planning process.
B. PPMP and APP
Examine the sample PPMP/APP handed out.
Take note of the contents.
Determine procurement strategies which may be adopted.
Be ready to share your observations/answers.

PROCUREMENT
PREPARATIONS
LEARNING OBJECTIVE/S:
Become familiar with procurement
preparation process

Procurement Preparations

Procurement Preparations

Procurement
Planning

Preparation
of Bidding
Documents

Conduct of
Preprocurement
Conference

Step1: Procurement Planning

Prepare the draft terms of
reference

APP should already be

prepared and GAA for the

year enacted

Determine mode of procurement

Done before undertaking

Determine type of consultant to be
hired

the subject procurement

End-user prepares TOR

Determine ABC

TOR: Terms of Reference

Contents:
1. Objectives, scope and expected outputs and/or
results of the proposed contract;
The TOR is

2. The expected contract duration and/or time frame

3. Obligations, duties and/or functions of the
consultant and government counter parts and
staff, including working arrangement between the
consultant, its staff and counterpart staff;
4. The minimum qualifications of consultants, such
as track record to be determined by the Head of
the Procuring Entity; and
5. The services, facilities and data, of any, to be
provided to the consultants.

prepared by the
end-user and duly
approved by HOPE
or authorized
approving official
Assistance of

external/internal
technical experts
may be engaged
whenever needed in
drafting the TOR.

Step2: Preparation of Bidding Documents

Contents:
1.
2.
3.
4.
5.
6.
7.
8.

ABC
Request for Expression of Interest (REI)
Eligibility Requirements
Instruction to Bidders
Terms of Reference (TOR)
Scope of work
Plans/Drawings and Technical Specifications
Form of Bid, Price Form, List of Goods or Bill of
Quantities
9. Delivery Time or Completion Schedule
10. Form, Amount and Validity Period of Bid
Security
11. Form, Amount and Validity of Performance
Security and Warranty
12. Form of Contract and General and Special
Conditions

Documents issued by

the procuring entity as

the basis for bids,
furnishing all information
necessary for a
prospective bidder to
prepare a bid for the
consulting services.
This stage merely

requires that the bidding

documents be prepared
and made ready as they
are to be issued in the
course of the
procurement process.

Step3: Pre-Procurement Conference

Agenda
Confirm description and scope of
contract, ABC, contract duration
Ensure procurement in accordance
with project and APP
Determine readiness for procurement
at hand
Review, modify and agree on criteria
for eligibility screening and
shortlisting, bid evaluation and postqualification
Review and adopt schedule,
deadlines, timeframes
Reiterate confidentiality, and agree on
measures to ensure the same

EXERCISES
A. Procurement Preparations
When should procurement preparation start? What are the
requisite documents?
Identify the three steps in the procurement preparation.

B. Terms of Reference
Evaluate the sample TOR.
Determine the sufficiency of the information contained therein.
Enumerate options available to the procuring entity whenever
drafting the TOR for a highly specialized project proves to be
very difficult.
Be ready to share your answers in 15 minutes.