Professional Documents
Culture Documents
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PHILIPPINE PROCUREMENT PARADIGM
• Post/Advertise
• Review studies opportunity
• Consolidate into APP Procure
Assess • Decide procurement
• Open and evaluate bids
• Post-qualify
method • Award and enter into
• Approve APP contract
• Determine readiness
• Oversee
• Cost-benefit
Identify implementation
analysis
• Feasibility
• Inspect and Implement
accept deliveries
study
• Release payment
• Market study
• PPMP
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”
Involves 2 levels:
1. Procuring entity’s over-all
strategic plan
2. Project and/or operational
plans
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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
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PROJECT PROCUREMENT MANAGEMENT
PLAN (PPMP)
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PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
Contracting
Arrangement
PPMP
Time Extent
schedule /size
Procure-
ment
methods
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PPMP FORMAT
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DEVELOPING PROJECT
Developing Project Requirements
REQUIREMENTS
Identify
the need
Identify
alternative of the
solutions/
products/
PMO/End-
services user unit
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HOW TO WRITE TECHNICAL
SPECIFICATIONS?
Functional Description
– a pen is expected to write 1.5 km of straight, continuous
lines
Performance Description
– should do so continuously and smoothly, without
skipping, and with the color of the ink being consistent
Environmental Interface
– on pad paper or bond paper, but not necessarily on wood
or on a white board
Design
– Ballpoint, gel-tip, sign pen, technical pen, etc.
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APPROVED BUDGET FOR THE
CONTRACT (ABC)
The ABC reflected in the APP or PPMP shall be
consistent with the appropriations for the project
authorized in the GAA. For procurement short of award,
based on budget levels under the proposed national budget
(National Expenditure Program or NEP) submitted by the
President to Congress.
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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COST COMPONENTS
IN DETERMINING ABC
Cost or market price of the product or service itself;
Freight, insurance, taxes, and other incidental expenses
(For goods only);
Cost of money, to account for government agencies
usually buying on credit terms;
Inflationary factor (For goods only);
Quantities, considering that buying in bulk usually
means lower unit prices;
Supply of spare parts and/or maintenance services, if
part of the contract package (For goods only);
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COST COMPONENTS
IN DETERMINING ABC
Cost for securing all types and forms of securities other
than cash (e.g. premiums for surety bond, bank fees and
other charges to be incurred by the bidder in obtaining
bid, performance and warranty securities); and
Currency valuation adjustment for contracts with
foreign component.
Acquisition Cost
Operation Cost
Replacement/Repair Cost
Disposal Cost
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COST COMPONENTS
IN DETERMINING ABC
If the sum of the different cost components is lower than
the appropriation for the procurement, then the ABC
should be equal to the sum of the cost components.
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Procurement Planning
• Key steps
o Deciding what the government needs and
how to acquire it
• Market Research
• Deciding what procurement method to use
o Writing key tender documents
• Specifications
• Evaluation criteria for selecting the winner
– How will price be assessed?
– Will there be non-price evaluation criteria as well?
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 21
Which Procurement Method to Use
DEPARTMENT OF EDUCATION 22
Key Challenges
• Anti-competitive forces:
– Inertia – but what you have/know
– “expert” preferences – they know what they
want
– Corruption – buy from friends, donors, or
relatives
– Tension between contracting office and others
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 23
• Red flags
– Watch for:
• Excessive use of single-source contracts (direct
contracting)
• Specifications tied to one company:
– Either explicitly calling for a brand name, or
– Not mentioning a brand name, so creating the
appearance of competition, but the specifications, in fact
favor one company
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 24
Key Challenges
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 25
Key Challenges
DEPARTMENT OF EDUCATION 26
Key Challenges
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 27
Key Challenges
– Impact
• Unrealistically low estimate : Gov’t may
misevaluate bids with realistic prices
• Unrealistically high estimate: Gove’t may agree to
too high a price (especially if the ABC is disclosed)
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 28
Key Challenges
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 29
Market Research
DEPARTMENT OF EDUCATION 30
Market Research
• Purpose
• –To understand the nature of industry and
characteristic of potential suppliers to help
align government requirements and
procurement strategies with realities of the
industry.
• –To understand the differences in supplier’s
terms of offerings/solutions and pricing
methods, among others.
• –To help draft the requirements that best
meet the needs of the end-user with fair and
open competition.
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 31
Market Research
• Methodologies:
– Reading industry literature, attending
industry conferences, etc.
– Holding “industry days”
– Issuing requests for information
– Issuing draft tender documents
– Meetings with potential suppliers and
associations
– Using website to create a central knowledge
center
Source: Global Procurement Initiatives – USTDA & The George Washington University
DEPARTMENT OF EDUCATION 32
LIFE CYCLE COSTING
LCC – Life Cycle Costing
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PROCUREMENT MILESTONES
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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
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PPMP vs PR
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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
Schedule of Activities
No procurement shall be undertaken unless in accordance
with APP
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ANNUAL PROCUREMENT PLAN
(APP)
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PREPARATION OF APP
When GAA,
Corporate Budget
or Appropriation
Upon approval Ordinance
of HOPE, Budget becomes final,
Submit Budget Office will PPMPs will be
Proposal to forward PPMPs finalized and
HOPE to BAC submitted to BAC
Submit to
Budget Office Secretariat for Secretariat for
for Consolidation consolidation and
evaluation and Review approval of the
HOPE.
Prepare Project
Procurement
Management
Plan (PPMP)
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ANNUAL PROCUREMENT PLAN
(APP)
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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
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APP-CSE
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TIPS IN CONSOLIDATING PPMPS
1. Sort the procurement activities by type of procurement:
goods, civil works or consulting.
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TIPS IN CONSOLIDATING PPMPS
4. All CSE whether for procurement from PS or not shall be
consolidated into an APP-CSE which shall be submitted to
the Procurement Service
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TIPS IN CONSOLIDATING PPMPS
Mode of Procurement
Sources of Funds
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REVISIONS ON APP
Update
PPMP/Suppleme
ntal PPMP
Consolidate
PPMP to
APP/Supplemen
tal APP
Approve
Updated
APP/Supplemen
tal APP
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5 RIGHTS IN PUBLIC
PROCUREMENT
Source
Value for Money
Time/
Quantity
Delivery
Procurement
Price Quality
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COA – GUIDE ON AUDIT OF
PROCUREMENT (GAP)
3.2. Annual Procurement Plan (APP) – the requisite
document that the agency must prepare to reflect
the entire procurement activity (i.e., goods, services,
civil works to be procured) that it plans to
undertake within the calendar year. This document
contains the following information:
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COA – GAP CHECKLIST
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POSSIBLE CONSEQUENCES
3. Suspension of Officials
5. Project Delays
6. Project Failures
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WHAT IS MONITORING?
Defined as:
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MONITORING AND EVALUATION
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.
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WHY MONITOR?
Performance
– Efficiency
– Effectiveness
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PROCUREMENT MONITORING
REPORT (PMR)
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MONITORING AND EVALUATION
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COA – GAP CHECKLIST
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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
• 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)
• GPPB Website
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THANK YOU!!
Contact us at:
TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph
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