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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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 IRR Review and Revision
Primary Causes of Delays and Failure of Bidding*:

*Per 2011 and 2012 APCPI results

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 IRR Review and Revision
Delays in Procurement*:

* Per 2014 FGD with 11 agencies.

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PHILIPPINE PROCUREMENT PARADIGM

Assess Review studies Post/Advertise Procure

Consolidate into APP opportunity
Decide procurement Open and evaluate
method bids
Approve APP Post-qualify
Determine readiness Award and enter into
contract

Identify Cost-benefit analysis Oversee Implement

Feasibility study implementation
Market study Inspect and accept
PPMP deliveries
Release payment

Capacity Development Division 6

PLANNING

PLANNING
- refers to predetermined
course/s of action to
achieve a desired
end/goal.

Capacity Development Division 7

PROCUREMENT PLANNING

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

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 PROCUREMENT PLANNING
It is the governments fiduciary responsibility

protect the taxpayers interests

safeguard the resources allotted to each department

Involves 2 levels:

1. Procuring entitys 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.

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 WHY PROCUREMENT PLANNING

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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 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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 ACTORS IN PROCUREMENT
PLANNING

END USER TECHNICAL

BUDGET WORKING
OFFICE GROUP (TWG)

BIDS AND AWARDS

APPROVING
COMMITTEE (BAC)
AUTHORITY/HoPE
AND BAC SECRETARIAT
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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 Type and

budget Objective

PPMP
Time
Extent/size
schedule

Procurement
methods

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PPMP FORMAT

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 IDENTIFYING THE NEED

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.Es Strategic Plans;
5. Current supply inventory;
6. Other maintenance and operating needs.

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 TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

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.

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 TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

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

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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

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APPROVED BUDGET FOR THE CONTRACT (ABC)

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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 DETERMINING THE ABC

Cost Components which may be considered:

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;

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 DETERMINING THE ABC

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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 DETERMINING THE 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.

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 DETERMINING THE ABC

Acquisition Cost

Operation Cost

Replacement/Repair Cost

Disposal Cost

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 DETERMINING THE 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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 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.

Cradle to Grave vis--vis Cradle to Cradle

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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

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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 PPMP vs PR

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.

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 ANNUAL PROCUREMENT PLAN
(APP)
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)

All procurement should be meticulously and judiciously

planned by procuring entity

APP should be maintained and updated regularly

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 ANNUAL PROCUREMENT PLAN
(APP)

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

Upon issuance of the budget call, the Procuring

Entity (PE) 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 for the budget period.
(Section 7.3.1, RIIR)

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 PREPARATION OF APP

When GAA,
Corporate
Budget or
Submit the Appropriation
Submit the APP and Ordinance
BAC Budget becomes final,
Secretariat Proposal to PPMPs will be
Submit to for HOPE and finalized and
Budget Office consolidation oversight submitted to
for evaluation into an APP bodies BAC Secretariat
for consolidation
and approval of
Prepare Project the HOPE.
Procurement
Management
Plan (PPMP)

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 PPMP CONSOLIDATION

Checking of Recommendation
procurement of procurement
methods methods by the
BAC

Propose
procurement
methods (End-user)

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ANNUAL PROCUREMENT PLAN (APP)

Per GPPB Resolution No. 20-2015

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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

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)

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 APP vis-a-vis APP-CSE

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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APP-CSE

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 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).

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 TIPS IN CONSOLIDATING PPMPS

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

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

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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TIPS 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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REVISIONS ON APP

Update
PPMP/Supple
mental PPMP

Consolidate
PPMP to
APP/Suppleme
ntal APP

Approve
Updated
APP/Suppleme
ntal APP

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 5 RIGHTS IN PUBLIC
PROCUREMENT
Source

Value for Money

Time/
Delivery
Quantity

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.

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 COA GUIDE ON AUDIT OF
PROCUREMENT (GAP)
The APP 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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 COA GAP CHECKLIST

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

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 COA GAP CHECKLIST

3. To verify if the APP contains the following

information:

a. name of the procurement program/ project;

b. project management office or end-user unit;
c. general description of the procurement;
d. procurement method to be adopted;
e. time schedule for each procurement activity;
f. source of fund;
g. approved budget for the contract.

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 COA GAP CHECKLIST

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.

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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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 MONITORING AND EVALUATION

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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PROCUREMENT MONITORING REPORT
(PMR)

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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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 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;

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 COA GAP CHECKLIST

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

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 COA GAP CHECKLIST

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 on or before 30 January 2016 of the
covered year (e.g. APP CY 2017 must be submitted to GPPB-TSO on or
before 30 January 2017)
Posting in the procuring entity's website of its APP 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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SUBMISSION & POSTING REQUIREMENTS
APP-CSE
Submission to DBM-PS on or before 30 November prior to the covered
year (e.g. APP-CSE for CY 2017 must be submitted on or before 30
November 2016)

APCPI (Agency Procurement Compliance and Performance Indicator)

Annual submission

Certificate of Compliance (COC) to PhilGEPS Posting

- Submitted in compliance with the PBB Good Governance
requirements
- Annual submission

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 THANK YOU!!

Contact us at: Contact us at:

GPPB-TSO DSWD Procurement Service

Unit 2506 Raffles Corporate IBP Road, Constitution Hills,

Center Quezon City
F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605 Tel: (632) 951-7116 / 931-8101
local 121 to 124
TeleFax: (632)900-6741 to 44 Email address:
Email address: procurement@dswd.gov.ph
gppb@gppb.gov.ph
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