The document discusses procurement planning and budgeting. It states that all procurement must be included in the Annual Procurement Plan (APP) and must be consistent with the approved budget. The APP is formulated based on Project Procurement Management Plans from implementing units and must be approved by the head of the procuring entity or their designee. The APP can be revised every six months and changes must be submitted to the Government Procurement Policy Board. Procurement can only be undertaken in accordance with the approved APP.

1. https://youtu.be/lxJv2ynllhg

2. PROCUREMENT
RULE II
Maria Mica Ella T. Buena
Jervin Deil Villanueva
CT 323
PLANNING

3. All procurement shall be within the approved budget of the Procuring Entity
and should be meticulously and judiciously planned by the Procuring Entity.
Consistent with government fiscal discipline measures, only those considered
crucial to the efficient discharge of governmental functions shall be included
in the Annual Procurement Plan (APP). For purposes of this IRR, a
procurement project shall be considered crucial to the efficient discharge of
governmental functions if it is required for the day-to-day operations or is in
pursuit of the principal mandate of the Procuring Entity concerned. The APP
shall include provisions for foreseeable emergencies based on historical
records. In the case of Infrastructure Projects, the APP shall consider the
appropriate timing/phasing of related project activities, such as, engineering
design and acquisition of right-of-way site or location, to reduce/lower project
costs.
SECTION 7.1
SECTION 7. PROCUREMENT PLANNING AND BUDGETING

4. SECTION 7.2
N O P R O C U R E M E N T S H A L L B E
U N D E R T A K E N U N L E S S I T I S I N
A C C O R D A N C E W I T H T H E A P P R O V E D
A P P , I N C L U D I N G A P P R O V E D C H A N G E S
T H E R E T O . T H E A P P M U S T B E
C O N S I S T E N T W I T H T H E D U L Y A P P R O V E D
Y E A R L Y B U D G E T O F T H E P R O C U R I N G
E N T I T Y A N D S H A L L B E A R T H E
A P P R O V A L O F T H E H O P E O R S E C O N D -
R A N K I N G O F F I C I A L D E S I G N A T E D B Y T H E
H O P E T O A C T O N H I S B E H A L F .

6. SECTION 7.3
The APP shall be
formulated and revised
only in accordance with
the following guidelines:
SECTION 7.3 SECTION 7.3.1
Upon issuance of the budget call in the
case of NGAs, SUCs, Constitutional
Commissions or Offices, or similar
document for GOCCs, GFIs and LGUs, the
Procuring Entity shall prepare its
indicative APP for the succeeding
calendar year to support its proposed
budget taking into consideration the
budget framework for that year in order
to reflect its priorities and objectives.

7. SECTION 7.3.2
In the preparation of the
indicative APP, the end-user or
implementing units of the
Procuring Entity shall
formulate their respective
Project Procurement
Management Plans (PPMPs) for
their different programs,
activities, and projects (PAPs).
The PPMP shall include:

8. SECTION 7.3.2
SECTION 7.3.2
Information on whether
PAPs will be contracted
out, implemented by
administration in
accordance with the
guidelines issued by
the GPPB, or consigned;
A) B) C)
the type and objective
of contract to be
employed;
the extent/size of
contract
scopes/packages;

9. SECTION 7.3.2
SECTION 7.3.2
Delivery of products and/or services
The quality of those products or
services
The beginning and end date of the
agreement and any renewal terms
Requirements for relationships, like
employment, partnerships, mergers or
acquisitions.

10. TYPES OF CONTRACTS
TYPES OF CONTRACTS
SALES AGREEMENTS
1) 2) 3)
NON-DISCLOSURE
AGREEMENTS
PROFESSIONAL
SERVICE AGREEMENTS-
FIXED-PRICE, TIME AND
MATERIALS, AND
RETAINER-BASED
CONTRACTS

12. SECTION 7.3.2
SECTION 7.3.2
the procurement
methods to be adopted,
and indicating if the
procurement tasks are
to be outsourced as
provided in Section 7.3.3
of
this IRR;
D) E) F)
the time schedule for
each procurement
activity and for the
contract
implementation; and
the estimated budget
for the general
components of the
contract.

13. SECTION 7.3.2
For purposes of this Section, consignment refers to an
arrangement where the following requisites are present: (a)
delivery of goods by their owner (consignor), without sale,
to a government agency (consignee); (b) consignee must try
to sell the goods and remit the price of the sold goods to
the consignor; (c) consignee accepts without any liability
except for failure to reasonably protect them from
damage; (d) no disbursement of government funds is
Involved; and (e) at terms not disadvantageous to the GoP.
Based on the specific needs, the end-user or implementing
units of the Procuring Entity 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.

15. SECTION 7.3.3
A)
In order to hasten project implementation, Procuring Entities which may not
have the proficiency or capability to undertake a particular procurement, as
determined by the HoPE concerned, may outsource the procurement tasks
by:
Requesting other GoP agencies to undertake such procurement for them,
through the execution of a memorandum of agreement containing specific
arrangements, stipulations and covenants, in accordance with
government budgeting, accounting and auditing rules;
As long as the procurement process was conducted in accordance with RA
9184, its IRR and associated issuances, recommendations to award a
contract made by the government procurement agent shall be accepted
by the requesting agency, subject to Section 41 of this IRR.

16. SECTION 7.3.3
B)
Engaging private procurement agents to directly undertake the
procurement for them, subject to the guidelines to be issued by the
GPPB; or
C)
Recruiting or engaging consultants to assist them directly and/or train
their staff in the management of the procurement function.

17. SECTION 7.3.4
The PPMPs shall then be submitted to the
Procuring Entity’s Budget Office for evaluation
in order to ensure consistency with the
Procuring Entity's budget proposal and
compliance with existing budgeting rules. The
PPMPs included in the budget proposal shall be
forwarded to the BAC Secretariat for
consolidation into an indicative APP, and to the
BAC for final recommendation of the
appropriate procurement modality. For this
purpose, the indicative APP shall include the
following:

18. SECTION 7.3.4
Name of
Procurement
Project;
A) B) C)
Procurement
Management
Office (PMO)/end-
user/implementin
g unit;
Method of
Procurement;

19. METHODS OF PROCUREMENT
COMPETITIVE
BIDDING
1) 2) 3)
DIRECT
CONTRACTING
SHOPPING

20. METHODS OF PROCUREMENT
SMALL VALUE
PROCUREMENT
4) 5) 6)
AGENCY TO
AGENCY
NEGOTIATED
PROCUREMENT

21. SECTION 7.3.4
Schedule of
identified
procurement
activities as
reflected in the APP
form approved by
the GPPB;
D) E) F)
Source of funds; Indicative ABC;
and

22. SECTION 7.3.4
SECTION 7.3.4
Other relevant
descriptions of
the project, if
applicable.
G)
The indicative APP and budget
proposal shall be
simultaneously submitted to
the HoPE and/or other
oversight bodies for approval.

24. As soon as the GAA, corporate budget, or appropriation
ordinance, as the case may be, becomes final, the end-user or
implementing units shall revise and adjust the PPMPs to reflect
the budgetary allocation for their respective PAPs. The revised
PPMPs shall be submitted to the BAC, through its Secretariat, for
the final recommendation of the methods of procurement. The
indicative APP shall then be revised and approved in accordance
with Section 7.2 of this IRR. The APP shall be submitted to the
GPPB on or before the end of January of the budget year, and
shall be posted in accordance with E.O. 662, series of 2007, as
amended.
SECTION 7.3.5

25. Changes to the individual PPMPs and the consolidated APP may be
undertaken every six (6) months or as often as may be required by
the HoPE. The respective end-user or implementing units of the
Procuring Entity 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, which shall be subject to the approval
of the HoPE.
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.
SECTION 7.4

26. Except for procurement projects undertaken through early
procurement activities (EPA), the ABC as reflected in the approved
APP shall be at all times 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 EPA, the posted ABC may be higher than the approved budget
as long as the contract price to be awarded is within the amount
authorized in the GAA, reenacted budget, appropriations
ordinance, corporate budget, or loan agreement, as the case may
be.
SECTION 7.5

27. SECTION 7.6
To facilitate the immediate implementation of procurement of Goods, Infrastructure
Projects or Consulting Services, even pending approval of the GAA, corporate
budget, appropriations ordinance or loan agreements in the case of FAPs, as the
case may be, and notwithstanding Section 7.2 hereof, the Procuring Entity may
undertake EPA.
Procuring Entities are encouraged to undertake EPA to ensure the timely delivery of
goods, implementation of infrastructure projects and rendition of consultancy
services. The conduct of EPA for nationally-funded procurement projects may
commence as early as the submission of the NEP to Congress, usually in July. No
EPA may be conducted without an indicative APP duly approved by the HoPE and the
MYCA issued by the DBM, in the case of multi-year projects. This will facilitate the
awarding of procurement contracts upon approval and effectivity of their respective
funding sources or the reenactment of the previous year’s budget which constitutes
the current year’s authorized budget, when authorized by the Constitution, law or
rules.

29. SECTION 7.6
For EPA, the indicative APP shall be based on the ABC in the proposed national
budget submitted by the President to Congress; for GOCCs, on budget levels as
proposed to the governing board; for LGUs, on budget levels as proposed in the
executive budget submitted to the Sanggunian; and for foreign-assisted projects
(FAPS), on the document issued by the foreign donor or financing institution
explicitly stating that a loan is to be made available to the Philippines or any of its
agencies or instrumentalities with borrowing authority.
No award of contract shall be made until the approval and effectivity of the GAA,
corporate budget, appropriations ordinance or the loan agreement in the case of
FAPs.
Notwithstanding the approval and effectivity of the GAA, reenacted budget,
appropriations ordinance, corporate budget or loan agreement, Procuring Entities
shall not award contracts for procurement projects requiring Special Allotment
Release Order or Sub-Allotment Release Order until the same has been issued,
secured or released.

30. SECTION 7.7
For procurement projects subject to
Framework Agreement as provided
in the Guidelines on the use of
Framework Agreement by all
Procuring Entities, the end-user unit
shall ensure that the Framework
Agreement List must be attached to
the APP submitted to the BAC to be
approved by the HoPE.

32. THANK YOU &
GOD BLESS