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    Narrative Report

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    Angelica Obregon
    The document discusses the linkage between procurement planning and budgeting in the Philippines. It outlines considerations for procurement planning within approved budgets and annual procurement plans. The key points are: 1) Procurement planning must be within approved budgets, judiciously done, and consistent with government fiscal measures to support crucial government functions. 2) No procurement can be undertaken without being included in the approved Annual Procurement Plan. 3) Cost estimates are prepared as early as the budget preparation phase to support agency budget proposals. Factors like market prices, taxes, and timeliness of estimates are considered in determining approved budgets for contracts.

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    Narrative Report

    Uploaded by

    Angelica Obregon
    86 views3 pages
    The document discusses the linkage between procurement planning and budgeting in the Philippines. It outlines considerations for procurement planning within approved budgets and annual procurement plans. The key points are: 1) Procurement planning must be within approved budgets, judiciously done, and consistent with government fiscal measures to support crucial government functions. 2) No procurement can be undertaken without being included in the approved Annual Procurement Plan. 3) Cost estimates are prepared as early as the budget preparation phase to support agency budget proposals. Factors like market prices, taxes, and timeliness of estimates are considered in determining approved budgets for contracts.

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    Procurement Planning and Budget Linkage

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    The document discusses the linkage between procurement planning and budgeting in the Philippines. It outlines considerations for procurement planning within approved budgets and annual procurement plans. The key points are: 1) Procurement planning must be within approved budgets, judiciously done, and consistent with government fiscal measures to support crucial government functions. 2) No procurement can be undertaken without being included in the approved Annual Procurement Plan. 3) Cost estimates are prepared as early as the budget preparation phase to support agency budget proposals. Factors like market prices, taxes, and timeliness of estimates are considered in determining approved budgets for contracts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    86 views3 pages

    Narrative Report

    Uploaded by

    Angelica Obregon
    The document discusses the linkage between procurement planning and budgeting in the Philippines. It outlines considerations for procurement planning within approved budgets and annual procurement plans. The key points are: 1) Procurement planning must be within approved budgets, judiciously done, and consistent with government fiscal measures to support crucial government functions. 2) No procurement can be undertaken without being included in the approved Annual Procurement Plan. 3) Cost estimates are prepared as early as the budget preparation phase to support agency budget proposals. Factors like market prices, taxes, and timeliness of estimates are considered in determining approved budgets for contracts.

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    Report Topic: Procurement Planning and Budgeting Linkage

    Reporter: Ma. Angelica O. Edar


    Subject: PM-503 – Financial Management

    Procurement Planning and Budget Linkage

    Considerations (Sec. 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
     The APP shall include provisions for foreseeable emergencies based on
    historical records.

    Sec. 7.2 of IRR

     No procurement shall be undertaken unless it is accordance with the approved


    Annual Procurement Plan (APP)
     Approval of the APP by the Head of Procuring Entity (HoPE) or designated
    second-ranking official is mandatory

    Procurement Planning Timeline

    Procurement Planning vis-à-vis Budget Cycle


    When are Cost Estimates Prepared?
    ❑ As early as Budget Preparation thru issuance of Budget Call, PEs are
    required to prepare cost estimates for its procurement activities for the
    succeeding year
    ❑ PPMPs of various divisions/units/offices are required to support budget
    proposal of government agencies

    Determining the ABC

    Factors to Consider in Determining the Approved Budget for the Contract


    1. Cost or market price of the product/service
    2. Inflationary factor
    3. Incidental expenses
    4. Quantities & Taxes
    5. Cost of spare parts and/or maintenance services

    Essential Factors to Consider


    1. Foreign Exchange and Local Currency Cost
     Component prices are likely to vary between local and international
    markets
    2. Timeliness
     If the date of the cost estimates is:
    o Less than 6 months – May still be acceptable.
    o 6-12 months - Should be revised by simple escalation factor,
    reflecting actual price changes since the date of cost estimates.
    Unless, project team concludes that base cost has not changed
    materially.
    o More than 12 months – should be reappraised, unless project
    team concludes base cost has not materially changed.
    What is “Technical Specification”?

    • Constitutes the “statement of the requirements”


    • The totality of the technical requirements contained in the dedicated part
    of the procurement documents, defining the characteristics required of:
    • a service to be performed,
    • a material or product to be supplied; or
    • works to be constructed

    It should be descriptive in such a way that they fulfil or reflect the use and purpose for
    which they are intended by the Procuring Entity.
    • states the needs to be satisfied by the procurement
    • defines what it wishes to buy
    • defines what the bidder is expected to supply or perform
    • establishes the standard against which inspections, test and quality checks are
    made
    • directly affects the quality and performance of the items purchased, works
    constructed or services provided and the price paid
    Technical Specification for each type of procurement
    Goods and Services Infrastructure Projects Consulting Services
    Technical Specifications Scope of Work (SOW) Terms of Reference (TOS)
    (TS)

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