PROCUREMENT PLANNING
Preparation of PPMP, APP and PMR
CAPACITY DEVELOPMENT DIVISION
Government Procurement Policy Board
Technical Support Office (GPPB-TSO)
Capacity Development Division
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Philippine Procurement Paradigm
Assess
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Review studies
Consolidate into APP
Decide procurement method
Approve APP
Determine readiness
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Identify
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Cost-benefit analysis
Feasibility study
Market study
PPMP
• Oversee implementation
• Inspect and accept deliveries
• Release payment
Post/Advertise opportunity
Open and evaluate bids
Post-qualify
Award and enter into contract
Needs
Procure
Implement
Satisfaction
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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
3.2.1 Identifying the need
3.2.2 Developing project requirements
3.2.3 Technical Specifications
3.2.4 Costing (Determining the ABC)
3.2.5 Procurement Timelines
3.2.6 Procurement Methods
3.2.7 PPMP format
3.3 Consolidating PPMPs into APP
3.3.1 Techniques in consolidating items in the APP
3.4 Updating the PPMP and APP
4. Procurement Monitoring
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PROCUREMENT PLANNING
PLANNING
- refers to predetermined course/s of action
to achieve a desired end/goal.
PROCUREMENT PLANNING

It is the government’s
responsibility
−
−
protect the taxpayers’ interests
safeguard the resources allotted to each
department
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fiduciary
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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
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
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PROCUREMENT PLANNING
Involves 2 levels:
1.Procuring entity’s over-all strategic plan
2.Project and/or operational plans
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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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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.
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PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
Contracting
Arrangement
Estimated
budget
Type and
Objective
PPMP
Time
schedule
Extent/size
Procurement
methods
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PPMP FORMAT
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DEVELOPING
PROJECT REQUIREMENTS
Developing
Project
Requirements
Identify the need
of the PMO/Enduser unit
Identify
alternative
solutions/
products/
services
Compare the
alternatives
(consider
qualitative and
quantitative
factors)
Choose the
Best Alternative
- the one that is
most beneficial
to the Procuring
Entity
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Important Consideration
IDENTIFYING
THE NEED
Suggested basis for identifying needs:
1.
2.
3.
4.
5.
6.
Core functions of the end-user unit in the organization,
i.e Accounting, Legal etc.
Historical data/Foreseen contingencies;
Identified purpose/goals/MFOs;
P.E’s Strategic Plans;
Current supply inventory;
Other maintenance and operating needs.
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TECHNICAL SPECIFICATIONS, SCOPE OF WORK,
AND TERMS OF REFERENCE
•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.”
•Description should be:
–
–
–
–
Generic and flexible
Clear and unambiguous
Updated, where technology is taken into account
Fits the actual requirements of the PMO/End-user
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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
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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Pre-Procurement
Conference
LIFE
CYCLE COSTING
LCC – Life Cycle Costing
“Cost” should consider all costs throughout the life-cycle – acquisition
cost, utility costs (energy/water consumption, maintenance), and
disposal costs.
 “C to G” vis-à-vis “C to C”
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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.
 If the resulting sum is higher than the appropriation, it is
advisable to review the technical specifications and the
computation of the ABC. In any case, the ABC should
not exceed the appropriation.
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PROCUREMENT MILESTONES
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PROCUREMENT MILESTONES
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Pre-Procurement MILESTONES
Conference
PROCUREMENT
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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Advertisement
and Posting
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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Adveartisement
andPR
Posting
PPMP vs
Purchase Request (P.R) – 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.
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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
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ANNUAL PROCUREMENT PLAN (APP)
No procurement shall be undertaken unless in accordance with 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.
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PREPARATION OF APP
APP
Budget Office
End-User Unit
Submit to
Budget Office
for evaluation
Submit Budget
Proposal to
HOPE
Upon approval of
HOPE, Budget
Office will
forward PPMPs to
BAC Secretariat
for Consolidation
and Review
Prepare Project
Procurement
Management Plan
(PPMP)
When GAA,
Corporate Budget
or Appropriation
Ordinance becomes
final, PPMPs will be
finalized and
submitted to BAC
Secretariat for
consolidation and
approval of the
HOPE.
BAC Secretariat
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ANNUAL PROCUREMENT PLAN (APP)
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Documents
APP Eligibility
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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Eligibility
Documents
APP-CSE
 In the case of foreign consultants, the
foregoing eligibility requirements under
Class “A” Documents may be substituted
by the appropriate equivalent documents.
NPM 42-2013
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Eligibility Documents
TIPS IN CONSOLIDATING
PPMPS
1.
Sort the procurement activities by type of procurement:
goods, civil works or consulting.
2.
Check which can be merged into one procurement activity
i.e Civil works or consulting services are usually distinct
entries in the APP, unless the PE finds merit in merging
infrastructure project scopes (civil works) or deliverables
(consultants).
3. Goods procurement can be separated into three categories:
common-use supplies (CSE) for the Procurement Service
(PS), common-use supplies (non-PS), other goods
procurement
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REVISIONS ON APP
End-user Unit
BAC Secretariat
Update PPMP
Consolidate
PPMP to APP
HOPE
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Approve
Supplemental
APP
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5 RIGHTS IN PUBLIC PROCUREMENT
Source
Value for Money
Time/
Delivery
Quantity
Procurement
Price
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Quality
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Eligibility Documents
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
5.
For the APP, CSE shall be separated whether to be bought
from the PS and CSE which shall be bought outside the PS
6.
All partitions shall again be separated into mode of
procurement (public bidding or alternative methods)
7.
All entries can then be grouped by source of funds
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TIPSTips
IN CONSOLIDATING
PPMPS
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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COA – GUIDE ON AUDIT OF
EligibLE Bidders
PROCUREMENT
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:
3.2.1. Name of the procurement program/project;
3.2.2. Project management office or end-user unit;
3.2.3. General description of the procurement;
3.2.4. Procurement method to be adopted;
3.2.5. Time schedule for each procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the Contract.
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EligibLECHECKLIST
Bidders
COA – GAP
1. To verify if the procuring entity has an Annual
Procurement Plan (APP)
2. To verify if the APP is approved by the HOPE or by a
second-ranking official designated by the HOPE to act
on his behalf
3. To verify if the APP contains the following information:
a.
b.
c.
d.
e.
f.
g.
name of the procurement program/ project;
project management office or end-user unit;
general description of the procurement;
procurement method to be adopted;
time schedule for each procurement activity;
source of fund;
approved budget for the contract.
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EligibLECHECKLIST
Bidders
COA – GAP
4. To verify if the APP is supported by PPMPs prepared by
the respective end-user units
5. To verify if the items in the approved APP were included
in the PPMPs
6. To verify if the APP matches the budget per GAA,
corporate budget, appropriation ordinance, as the case
may be
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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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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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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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PROCUREMENT MONITORING REPORT (PMR)
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COA – GAP CHECKLIST
1.
To verify if the BAC:
a. prepared a procurement monitoring report in the form
prescribed by the GPPB;
b. covering all procurement activities specified in the Annual
Procurement Plan (APP), whether on-going and completed,
from the holding of the pre-procurement conference to the
issuance of the notice of award and the approval of the
contract, including the standard and actual time for each
major procurement activity;
c. submitted the monitoring report to the Head of the
Procuring Entity (HOPE) for approval and submission to
the GPPB in printed and electronic format within 14 days
after the end of each semester
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COA – GAP CHECKLIST
2. To verify if the HOPE:
a. approved the Procurement Monitoring Report and
b. submitted it to the GPPB in printed and electronic format
within 14 days after the end of each semester
3. To verify if appropriate actions have been taken by the HOPE
in case of instances of noncompliance committed by the BAC,
BAC TWG, BAC Secretariat and/or bidders
4. To verify what actions have been taken by the GPPB in regard
to instances of noncompliance
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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:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasay City, Philippines 1605
TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph
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