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procurement slides.pptx
1.
2. 2
Government Procurement Policy Board – Technical Support Office
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
3.
4. Review studies
Consolidate into APP
Decide procurement
method
Approve APP
Determine readiness
Post/Advertise
opportunity
Open and evaluate
bids
Post-qualify
Award and enter into
contract
Cost-benefit analysis
Feasibility study
Market study
PPMP
Oversee
implementation
Inspect and accept
deliveries
Release payment
Assess Procure
Identify Implement
5. refers to an act or process of
making predetermined course/s
of action to achieve a desired
end/goal.
6. “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”
7. 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
8. 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.
9. 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
11. What to procure
• Involves writing the technical specifications
How much to procure
• Determining the quantity
How to procure
• Determining the mode of procurement
When to procure
• Identifying the schedule of milestone activities of target implementation
12. WORK
AND
FINANCIAL
PLAN
• PROGRAMS
• PROJECTS
• ACTIVITIES
MONTHLY
DISBURSEMENT
PROGRAM
• ESTIMATED
BUDGET
• TIMELINE
SCHEDULE
(When
allocation
should be made
available for
disbursement)
PROJECT
PROCUREMENT
MANAGEMENT
PLAN
• CONTRACTING
ARRANGEMENT
• TYPE AND
OBJECTIVE
• EXTENT/SIZE
• PROCUREMENT
METHODS
• TIME SCHEDULE
• ESTIMATED
BUDGET
13. 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
14. Consolidation of
PPMPs to
Indicative APP by
BAC Sec and
recommendation
by BAC of modality
BAC &
Secretariat
HOPE/Approving
Body
During Budget Preparation/Budget Call
Prepare Project
Procurement
Management
Plan (PPMP)
Submit to
Budget Office
for evaluation
Submit Indicative
APP and budget
proposal to
HOPE/oversight
body for approval
Budget
Office
End-User
Unit
15. 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
17. 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.
18. 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.
19. 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
20. FUNCTIONAL DESCRIPTION
• description of the functions for which the Goods are to be utilized
• e.g. The ballpen is expected to write 1.5 km of straight, continuous lines.
PERFORMANCE DESCRIPTION
• refers to the manner that the Goods are required to perform the functions expected of them
• e.g. A ballpen that writes at 1.5 km continuously and smoothly.
DESIGN SPECIFICATION
• refers to the technical design or drawing of the goods being procured
• e.g. Ballpoint, gel ink, fine 0.5 tip
ENVIRONMENTAL INTERFACE
• refers to the environment in which the required functions are performed at the desired level
• The ballpen should be comfortable to use by left-hand writers.
21. BUS
• “a devise
capable of
conveying
children from
their school to
their homes”
CLEANING
• “provision of
cleaning
services for a
300 M2
carpeted
meeting room
with 25 tables
and 50 chairs”
CONSULTING
• “to conduct a
Green Energy
training
programme
for 75 staff in
3 Clusters”
FUNCTIONAL SPECIFICATIONS – purpose, duty, role or function
Source: Introductory Certificate in Public Procurement Level 2, CIPS
22. BUS
• “a devise to
convey children
from their school
to their homes
safely and within
an hour”
CLEANING
• “services
performed to the
highest industry
standards, EN
13549 or
equivalent”
CONSULTING
• “complete 3
training courses of
1-week and
conduct post post-
training
competency tests”
PERFORMANCE SPECIFICATIONS – capability, input/output
criteria, performance characteristics
23. BUS
• Min. 10 seats
• 4 doors
• 2-wheel drive
• Engine min. 2900 cc
• Petrol unleaded
• Colour: white
CLEANING
• Liquid Hand Wash
• 500ml bottle
• No perfume added
• Eco-friendly label
• Anti-bacterial
CONSULTING
• Reporting
language: English
• Formats: Slides
MS Powerpoint,
• Reports in MS
Word compatible
format
TECHNICAL SPECIFICATIONS - detailed physical characteristics
24. Specifications Minimum
Minimum dimensions L 4500 x H 1900 x W 1600 mm
Minimum volume 14 m3
Seats 10 seater; front 1 + 1 bench; rear 3 + 3 + 3
Number of doors 4
Transmission 5 speed
Floor breaks Front: disc, Rear: drum
Fuel type Petrol unleaded
Ground clearance 180 mm
Wheel base 2500 mm
Type 2-wheel drive
Engine Minimum 2900 cc, 4 cylinders
Color White
25. 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
26. 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.
27. LCC – Life Cycle Costing
“Cost” should consider all costs throughout the life-cycle – acquisition
cost, utility costs (energy/water consumption, maintenance), and
disposal costs.
“Cradle to Grave” vis-à-vis “Cradle to Cradle”
30. 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.
31. 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
32. 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.
33. 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
34. 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
35. 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.
36. 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 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
37. 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.
38. 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.
39. GAA, Corporate Budget or Appropriation
Ordinance Becomes Final
Budget
Office
End-User
Unit
BAC &
Secretariat
HOPE/Approving
Body
Provide
comments on
Indicative
PPMPs to end-
users
Finalize Project
Procurement
Management
Plans (PPMPs)
Consolidation of
PPMPs to APP by
BAC Sec and
recommendation by
BAC of modality
Approval of APP
by HOPE/
oversight body
42. 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
43. 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
44.
45. Sources of Funds
Mode of Procurement
Common Use Supplies
CSE NON-CSE
Check for Items which can be merged
i.e: IT Equipment, Design and Build projects, Office Furniture, etc
Sort by Type of Procurement
Goods Infra Consulting
47. 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
48.
49. Defined as:
Tracking of inputs, activities, outputs, and outcomes of the
procurement activity; and
Tracking results of current operations on a regular basis.
50. 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)
51. 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
52. 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
53. 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
54. 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
17 18 19 20 21 22 23
55. 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
24 25 26 27 28 29
30
31
56. APP
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)
57. 75
EARLY PROCUREMENT ACTIVITIES
Refer to posting until post-qualification
of bids and recommendation by the
Bids and Awards Committee (BAC) to
award the contract to the winning
bidder, in accordance with Section 7.6 of
the 2016 IRR of RA 9184 and the
General Provisions of the FY 2019 GAA
58. 76
76
• Enables the timely implementation and completion of
programs and projects
• Facilitates immediate implementation of procurement
projects, even pending approval of the GAA,
corporate budget or appropriations ordinance
• Avoid spill over of projects and reversion of unutilized
funds
EARLY PROCUREMENT
ENHANCES BETTER PLANNING
59. 77
77
Preparation of Indicative Annual Procurement Plan
(APP) upon issuance of budget call or similar
document (Section 7.3, IRR of RA 9184)
• Improved linkage of budget to procurement
• Provide correct technical specifications and costing
– use of market analysis; market sounding
– better/best and more options to the PE
– gives early information to prospective bidders on forthcoming bid
opportunities; not later during pre-bid conference
– prospective bidders are not forced to fit in their products to the
PE’s specifications
EARLY PROCUREMENT
ENHANCES BETTER
PLANNING
60. 78
78
Undertaking Procurement Short of Award
(Section 7.6, IRR of RA 9184)
• Only implementation ready projects are included in the
President’s proposed budget (all preparatory works,
feasibility studies etc are done or at least about to be
finished before inclusion in the proposed budget.
• As early as October of the previous year; in order for
contractors to finish on time and be paid on time under
the ACBA
EARLY PROCUREMENT
61. 83
83
GPPB Resolution No. 14-2019, dated 17 July 2019
• EPA is applicable for Procurement Projects undertaken
through Competitive Bidding and Alternative Methods of
Procurement, except for the following:
• Repeat Order
• Shopping
• Negotiated Procurement – Emergency Cases
• Negotiated Procurement – Take-over of Contracts
• Negotiated Procurement – Small Value Procurement
• PE shall expressly provide in the BD and through PhilGEPS
posting that Project is undertaken through EPA
EARLY PROCUREMENT
62. 84
EARLY PROCUREMENT ACTIVITIES
EPA shall only
commence upon
completion of the
following:
Securing of a MYOA from the DBM for
each multi-year project to start
implementation in FY 2019
Completion of appropriate preparatory
activities, such as the accomplishment
of feasibility studies, detailed
engineering designs, securing the
required regulatory clearances, and
right-of-way acquisitions for civil works
projects
63. 85
EARLY PROCUREMENT ACTIVITIES
EPA shall only
commence upon
completion of the
following:
The harmonization of the Indicative APPs
with the FY 2019 NEP
Approval of the HOPE of the Indicative APP.
Procuring Entities shall ensure that APPs
and its corresponding Indicative APPs
contain all the planned procurement
regardless of fund source or mode of
procurement
Posting of Indicative APP on Transparency
Seal Page of agency’s website
64. 86
EARLY PROCUREMENT ACTIVITIES
Procurement Identification Procurement Assessment
• Cost-benefit
analysis
• Feasibility study
• Market study
End-User Representative/Unit
Project
Procurement
Management Plan
(PPMP)
BAC & Secretariat
HOPE/
Approving
Authority
Approval of
Indicative APP
and budget
proposal
Consolidation of
PPMPs to
Indicative Annual
Procurement
Plan (APP)
Revision of
PPMP &
Indicative APP
based on NEP
BAC & Secretariat
65. 87
EARLY PROCUREMENT ACTIVITIES
Capacity Development Division 87
Procurement Procurement
•Advertisement
and Posting
•Open and
evaluate bids
•Post-qualify
BAC & Secretariat
Revision of
PPMP &
Indicative APP
based on GAA
BAC & Secretariat
Award of
Contract
BAC & Secretariat
Update PhilGEPS
postings for Early
Procurement by
posting the Approved
Contract and the Notice
to Proceed
BAC & Secretariat
66. 88
AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES
GPPB
CIRCULAR
NO. 09-
2018
Provided guidelines on the Award of
Contract under a Reenacted Budget for
procurement projects included under
the EPA or those procured on the basis
of the FY 2019 NEP short of award.
Effective 1
January
2019
GPPB
CIRCULAR
NO. 14-
2019
Provided guidelines on the
Implementation of EPA amending
relevant Sections of the IRR, GPM &
APP and PMR Formats
Effective 1
July 17
2019
67. 89
WHEN TO AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES?
Procurement projects covering recurring activities or
projects, hence appropriations therefor are included in both
the FY 2019 GAA and FY 2020 NEP, undertaken through
EPA under the FY 2020 NEP may be awarded on the basis of
the 2020 GAA or Reenacted Budget of previous year
Procurement projects undertaken through EPA covering
recurring activities or projects, hence appropriations therefor are
included in both the FY 2019 GAA and FY 2020 NEP but with a
higher ABC allowed under the FY 2020 NEP, may be
awarded if the contract amount to be awarded (LCRB) is
WITHIN the amount authorized in the 2019 Reenacted Budget.
68. 90
WHEN TO AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES?
New activities or projects that are included in the FY 2019
NEP, hence not part of the FY 2018 GAA, may be awarded on
the basis of the FY 2019 GAA; provided, the 15-day period for
the HoPE to approve the Resolution of the BAC and to issue the
Notice of Award provided under Sec. 37 and the 3-month period
within which to complete the procurement process under Sec. 38
of RA No. 9184 shall be tolled or suspended or shall not be
counted beginning January 1, 2019 until the effectivity of the
new GAA for FY 2019.
The period of time for the award of contract and termination of the
procurement process, as the case may be, shall begin to run
again upon the effectivity of the new GAA for FY 2019. The HoPE
has the remaining period or the period of time left for award of
contract and termination of the procurement process, as the case
may be, counted from the effectivity of the new GAA for FY 2019.
69. 91
WHEN TO AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES?
The validity of bids and, if applicable, the bid securities, shall be
extended, at the option of the bidder, to adjust to the new
procurement timeline in case the period is tolled pending the
enactment of the new GAA for FY 2019.
In all instances, the HoPE shall not award any procurement
project if the amount appropriated under the 2019 Reenacted
Budget or 2019 GAA is lower than the amount of contract to be
awarded in accordance with Section 41 of RA 9184 which
grants the HoPE the right not to award the contract if, for any
justifiable and reasonable ground, the award of the contract will
not redound to the benefit of the GoP, i.e., if the source of funds
for the project has been withheld or reduced through no fault of
the Procuring Entity.
70. 92
WHEN TO AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES?
In all instances, the HOPE has the authority, if he/she
deems necessary to exercise the reservation clause under
Section 41 of RA 9184, which grants the HoPE the right
not to award the contract if, for any justifiable and
reasonable ground, the award of the contract will not
redound to the benefit of the GoP.
71. 93
AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES
Tolling of Periods
For purposes of Awards of Contracts
under a Reenacted Budget, the following
periods shall be tolled or suspended:
3-month
period
15-day
period
for the HoPE to approve the
Resolution of the BAC and to
issue the Notice of Award
provided under Section 37
within which to complete the
procurement process, from the
opening of bids up to the award
of contract, under Section 38 of
RA No. 9184
72. 94
AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES
Tolling of Periods
– The tolling/suspension of the periods will begin on January
1, 2019 until the effectivity of the new GAA for FY 2019.
– The period of time for the award of contract (15 days) and
termination of the procurement process (3 months), as the
case may be, shall begin to run again upon the effectivity of
the new GAA for FY 2019.
– The HoPE has the remaining period or the period of time
left for award of contract and termination of the
procurement process, as the case may be, counted from
the effectivity of the new GAA for FY 2019.
73. 95
AWARD OF CONTRACT UNDER
EARLY PROCUREMENT ACTIVITIES
Tolling of Periods
– The period of time for the award of contract and
termination of the procurement process, as the case
may be would not commence anew upon the effectivity
of the new GAA for FY 2019 but rather, grants the HoPE
the balance of the remaining period to award the
contract or terminate the procurement process.
– A new 15-day period or 3-month period would not be
created by the enactment of the new GAA for FY 2019.
Editor's Notes
-Necessary step before any PE starts with its procurement activities
-When do we buy things?
-Wants vs needs
-Personal spending vs spending of government funds/taxpayer’s money
-When does planning come into the picture?
-GPPB assists/provides technical assistance in all stages
Procurement planning is the 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 planning effort
Starts with the Strategic Plan of the Procuring Entity
Mission & Vision
Key Result Areas (KRA) / Major Final Outputs (MFOs)
Identify Key Projects to achieve the Plan/KRA
Logical framework
Prioritize Projects (low hanging fruits)
Identify projects where procurement is necessary (Make or Buy)
KRA of our Social Contract:
1. Transparent, accountable and participatory governance;
2. Poverty reduction and empowerment of the poor and vulnerable;
3. Rapid, inclusive, and sustained economic growth;
4. Just and lasting peace and the rule of law;
5. Integrity of the environment and climate change adaptation and mitigation.
EO 43, s.2011
*With animation*
Local Treasurer - The Local Treasurer shall submit to the LCE a certified statement covering the income and expenditures of the preceding fiscal year, the actual income and expenditures of the first two (2) quarters of the current year, and the estimated income and expenditures for the last two (2) quarters of the current year (Section 315, RA No. 7160).
End User
person or organization that will use the project's end product
Responsible for formulating the requirement, i.e. the goods, services or works required or the budget from which the requirement will be purchased
As soon as the GAA becomes final, end-user units must refine the proposed PPMP to reflect the budgetary allocation for their respective PPAs, as provided in the ABM.
Submit the final PPMPs to the BAC Secretariat for the finalization of the proposed Procuring Entity’s APP
Budget Office
receives the work and financial plan from the offices
prepares the budget proposal to be sent to DBM
Provides copy of WFP and proposed PPMP to BAC
Bids and Awards Committee (BAC)
Consolidates the initial list of items / projects for procurement into the proposed APP
Submits the finalized APP of the procuring entity to the Head of the Procuring Entity for confirmation or approval
BAC Secretariat
Main support unit of BAC
Administrative support for BAC and TWG
Assist in managing the procurement process
Be the central depository of all procurement related information and continually update itself with the most current GPPB resolutions issuances, circulars and events, and downstream the same to all relevant officer, employees, and parties requiring information.
Make arrangements for the pre-procurement and pre-bid conferences and bid openings
Create, maintain and update the registry of suppliers, contractors, and consultants
Create, maintain and update a price monitoring list, if one is maintained by the Procuring Entity.
Technical Working Group (TWG)
Provide assistance to the BAC in terms of the technical, financial, legal and other aspects of the procurement at hand
Head of Procuring Entity (HoPE)
Approves all documents shall be approved by the Head of the Procuring Entity prior to any submission to other approving bodies.
Ensure that the APP is regularly prepared, reviewed, and updated by the PMOs and end-user units
Establish the BAC and the BAC Secretariat
Ensure that BAC and BAC Secretariat prioritizes BAC assignments over other duties and responsibilities
Ensure that the staff of the procurement unit/office and the members of the BAC, BAC Secretariat and TWG are given ample training on procurement and related matters
Ensure receipt of incentives of BAC and TWG
Impose administrative sanctions on errant members of the BAC Secretariat/BAC/TWG (Revised IRR RA 9184, Section 70)
Source: Chapter 1 of https://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC-112-BOM-inside%20pages-correct%20paging-FINAL.pdf
Source: Chapter 1 of https://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC-112-BOM-inside%20pages-correct%20paging-FINAL.pdf
Source: Chapter 1 of https://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC-112-BOM-inside%20pages-correct%20paging-FINAL.pdf
-Triggered by submission of PR and JOR
-Guides end user when to prepare and can help BAC Sec in notifying concerned end user that they need to prepare
-To prevent delays in procurement
Source: Chapter 1 of https://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC-112-BOM-inside%20pages-correct%20paging-FINAL.pdf
*With animation*
Contracted out, implementation by administration, consignment
Goods, infra, consulting
To prevent surplus/deficiency
Section 10 - PB as general mode, certain conditions warrant the resort to alternative methods (Sec. 48 to 54)
Appropriate timing/phasing of projects
Consistent with GAA, corporate budget or appropriation ordinance
1. Identify the need
2. Identify and compare alternatives
3. Choose the best alternative
Data gathering to study historical info, previous projects, standards.
SPMS
-Make use of available reliable resources, such as local and international standard-setting bodies/organizations
-Check standard product description with DTI, DOH, DND
-Make use of available reliable resources, such as local and international standard-setting bodies/organizations
-Check standard product description with DTI, DOH, DND
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GPPB Resolution No. 08-2019 – Authorizing the DBM and PS to issue specific procedural process for the operationalization of a centralized procurement of motor vehicles
GPPB Resolution No. 20-2019 Approving the delisting of Motor Vehicles in the list of common-use supplies and equipment of the PS
Regarding the functional requirement, the product or service is procured based on a particular function or functions.
Example is…
A product or service being procured may also be determined by its performance of particular expected functions.
Example…
Environmental interface in technical specifications refers to the environment in which the required functions are performed at the desired level.
Example…
Lastly is design or the technical design or drawing of the goods being procured.
Example…
-List of goods and services that the PE can buy for the budget year
-When BAC receives PR or JOR, check first whether it is included in the approved PPMP or APP
-List of goods and services that the PE can buy for the budget year
-When BAC receives PR or JOR, check first whether it is included in the approved PPMP or APP
-What is the BAC receives a PR or JOR not included in the APP? Say for example the agency received a foreign grant?
-When we revise the APP frequently because of changes in the GAA projects, what does it connote? Poor planning.
-Obtained maximum benefit from the goods and services it acquires and/ or provides, within the resources available to it.
-'three Es' - economy, efficiency and effectivenes
The APP is a document consisting of the entirety of procurement requirements of an agency for the whole year
Indicative APP is based on NEP
Provides bidders with advance information on procurement requirements of government for the following year
Market analysis – a way to consult suppliers even before the posting of bid opportunities
Market sounding – communication of information prior to the announcement of a bid opportunity in order to gauge the interest of prospective bidders and the conditions relating to it, such as specifications, volume or pricing
7.6 To facilitate the immediate implementation of procurement of Goods, Infrastructure Projects or Consulting Services, even pending approval of the GAA, corporate budget or appropriations ordinance, as the case may be, and notwithstanding Section 7.2 hereof, the Procuring Entity may undertake the procurement activities short of award.
NGAs, SUCs, Constitutional Commissions or Offices are encouraged to start their procurement activities immediately after the National Expenditure Program (NEP) has been submitted by the President to Congress, provided that the HoPE has approved the corresponding APP. This will facilitate the awarding of procurement contracts after the enactment of the GAA, enabling the timely implementation and completion of programs and projects.
For PBB – Agency should undertake procurement short of award of 50% (in volume) of their requirements for 2019
For multi-year projects, the issuance of Multi-Year Obligational Authority (MYOA) or any similar document as may be prescribed by the DBM is required prior to commencement of any procurement activity
For multi-year projects, the issuance of Multi-Year Obligational Authority (MYOA) or any similar document as may be prescribed by the DBM is required prior to commencement of any procurement activity
For a contract with a period not exceeding one (1) year, the ABC shall be based on the amount in the indicative APP as included in the proposed national budget submitted by the President to Congress; for GOCCs, on budget levels as proposed to the governing board; or for LGUs, on budget levels as proposed in the executive budget submitted to the Sanggunian. In the case of multi-year contracts, for which a MYOA or an equivalent document is required, the ABC shall be the amount reflected in the MYOA or equivalent document.
In accordance with Section 7.1 of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184, all planned procurement shall be included in the Annual Procurement Plan (APP). Procuring Entities shall ensure that APPs and its corresponding Indicative APPs contain all the planned procurement for FY 2019, regardless of fund source or mode of procurement.
A Procurement Project shall refer to a specific or identified procurement covering goods, consulting services, or infrastructure projects. A Procurement Project shall be described, detailed, and scheduled in the Project Procurement Management Plan prepared by the agency which shall be consolidated in the Procuring Entity's APP.
Procurement Projects included in the budget of an agency (source agency) but shall be released directly to another agency (recipient agency) pursuant to a special provision in the NEP (e.g. the Department of Education's Basic Educational Facilities for direct release to the Department of Public Works and Highways) shall form part of the Indicative APP of the recipient agency
Procurement Projects funded in the budget of an agency (source agency) which shall be implemented by another agency (recipient agency) shall be included in the Indicative APP of the recipient agency. Hence, the source agency should have entered into a Memorandum of Agreement with the recipient covering the Procurement Project, which shall be the basis for the conduct of EPA.
Procurement Projects funded by forthcoming sub-allotments from the Central Office shall be included in the operating unit's Indicative APP. Hence, Central Offices shall inform their operating units on the schedule of implementation for these projects, which shall be the basis for the conduct of EPA.
Procurement Projects that shall be undertaken through a procurement agent (e.g. DBM-Procurement Service) shall form part of the Indicative APP of the Procuring Entity.
In accordance with Section 7.1 of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184, all planned procurement shall be included in the Annual Procurement Plan (APP). Procuring Entities shall ensure that APPs and its corresponding Indicative APPs contain all the planned procurement for FY 2019, regardless of fund source or mode of procurement.
A Procurement Project shall refer to a specific or identified procurement covering goods, consulting services, or infrastructure projects. A Procurement Project shall be described, detailed, and scheduled in the Project Procurement Management Plan prepared by the agency which shall be consolidated in the Procuring Entity's APP.
Procurement Projects included in the budget of an agency (source agency) but shall be released directly to another agency (recipient agency) pursuant to a special provision in the NEP (e.g. the Department of Education's Basic Educational Facilities for direct release to the Department of Public Works and Highways) shall form part of the Indicative APP of the recipient agency
Procurement Projects funded in the budget of an agency (source agency) which shall be implemented by another agency (recipient agency) shall be included in the Indicative APP of the recipient agency. Hence, the source agency should have entered into a Memorandum of Agreement with the recipient covering the Procurement Project, which shall be the basis for the conduct of EPA.
Procurement Projects funded by forthcoming sub-allotments from the Central Office shall be included in the operating unit's Indicative APP. Hence, Central Offices shall inform their operating units on the schedule of implementation for these projects, which shall be the basis for the conduct of EPA.
Procurement Projects that shall be undertaken through a procurement agent (e.g. DBM-Procurement Service) shall form part of the Indicative APP of the Procuring Entity.
Scenario 1
Agency A has in its budget under the FY 2019 NEP the amount of 100 Million for the provision of Purchase of text books, which is also the amount of its ABC.
The amount of 100 Million is included or covered under the FY 2018 GAA.
Agency A may award on the basis of the FY 2019 Reenacted Budget.
Scenario 2
Agency A’s budget for the procurement of medicines is
100 Million Pesos in FY 2018. The budget for the same project is 110 Million Pesos, as allocated in the FY 2019 NEP. The ABC posted for the same is also 110 Million
After undertaking EPA, the contract to be awarded amounts to 100 Million Pesos (LCRB).
Agency A may award on the basis of the FY 2019 Reenacted Budget because the LCRB is within the budget authorized in the 2019 Reenacted Budget.
Scenario 3
Agency A has Project X in its FY 2019 NEP. Said project is a new procurement project for 2019 hence, not part of the FY 2018 GAA.
Agency A’s BAC issued its Resolution recommending the award of contract on December 28, 2018.
The 15 day period within which the HOPE shall approve/disapprove the BAC recommendation is tolled or suspended on January 1, 2019 (3 days from BAC recommendation) until the effectivity of the new GAA for FY 2019.
Hence, if the FY 2019 GAA is effective March 1, 2019, the HOPE has the remaining 12 days or until March 13, 2019 to approved/disapprove the BAC recommendation.
Another Scenario 3
Agency A has Project X in the FY 2019 NEP. Said project is a new procurement project for 2019 hence, not part of the FY 2018 GAA.
If Agency A’s BAC conducted the Opening of Bids on October 31, 2018, the 3-month period for the HoPE to issue the Notice of Award shall be tolled or suspended from January 1, 2019 until the effectivity of the new GAA for FY 2019.
Hence, if the FY 2019 GAA takes effect on March 1, 2019, the period of time left for the award of contract shall begin to run again on said date.
The HoPE has 29 days or until March 30, 2019 to issue the Notice of Award.
Scenario 3
Agency A has Project X in its FY 2019 NEP. Said project is a new procurement project for 2019 hence, not part of the FY 2018 GAA.
Agency A’s BAC issued its Resolution recommending the award of contract on December 28, 2018.
The 15 day period within which the HOPE shall approve/disapprove the BAC recommendation is tolled or suspended on January 1, 2019 (3 days from BAC recommendation) until the effectivity of the new GAA for FY 2019.
Hence, if the FY 2019 GAA is effective March 1, 2019, the HOPE has the remaining 12 days or until March 13, 2019 to approved/disapprove the BAC recommendation.
Another Scenario 3
Agency A has Project X in the FY 2019 NEP. Said project is a new procurement project for 2019 hence, not part of the FY 2018 GAA.
If Agency A’s BAC conducted the Opening of Bids on October 31, 2018, the 3-month period for the HoPE to issue the Notice of Award shall be tolled or suspended from January 1, 2019 until the effectivity of the new GAA for FY 2019.
Hence, if the FY 2019 GAA takes effect on March 1, 2019, the period of time left for the award of contract shall begin to run again on said date.
The HoPE has 29 days or until March 30, 2019 to issue the Notice of Award.