02 Procurement Planning and Budget Linkagegppb
02 Procurement Planning and Budget Linkagegppb
02 Procurement Planning and Budget Linkagegppb
Identify
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
Needs
Procure
Implement
Satisfaction
Capacity Development Division
OUTLINE
1.What is planning?
2.Nature of Planning
3.Procurement Planning
4. Procurement Monitoring
PROCUREMENT PLANNING
PLANNING
- refers to predetermined course/s of
action to achieve a desired end/goal.
PROCUREMENT PLANNING
It is the governments
responsibility
fiduciary
WHY PROCUREMENT
PLANNING
advance deliveries
suki system
unwarranted resort to alternative methods procurement
PROCUREMENT PLANNING
Involves 2 levels:
1.Procuring entitys over-all strategic plan
2.Project and/or operational plans
PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)
Contracting Arrangement
Estimated budget
PPMP
Extent/size
Time schedule
Procurement methods
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PPMP FORMAT
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DEVELOPING PROJECT
Developing
Project
Requirements
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
Capacity Development Division
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IDENTIFYING
THE NEED
Important Consideration
Suggested basis for identifying needs:
1.
2.
3.
4.
5.
6.
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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
Capacity Development Division
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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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PROCUREMENT
MILESTONES
Pre-Procurement
Conference
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
Advertisement
and Posting
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
PPMP vsand
PR Posting
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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PREPARATION OF APP
Budget Office
APP
When GAA,
Corporate
End-User Unit
Budget or
Appropriation
Upon
Ordinance
approval of
Submit
becomes
HOPE,
Budget
final, PPMPs
Budget
Proposal to Office will
will be
Submit to HOPE
finalized and
forward
Budget
submitted to
PPMPs to
Office for
BAC
BAC
evaluatio
Secretariat
Secretariat
Prepare
n
for
for
Project
consolidation
Consolidati
Procuremen
BAC
and
approval
on and
t
of
the
HOPE.
Review
Managemen
Secretariat
t Plan
(PPMP)
Capacity Development Division
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Eligibility
Documents
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)
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
Capacity Development Division
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Eligibility
Documents
APP-CSE
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TIPS IN
CONSOLIDATING
PPMPS
Eligibility
Documents
1.
2.
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REVISIONS ON APP
End-user Unit
BAC Secretariat
Update
PPMP
Consolidate
PPMP to
APP
HOPE
Capacity Development Division
Approve
Supplemen
tal APP
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5 RIGHTS IN PUBLIC
PROCUREMENT
Source
Time/
Delivery
Quantity
Procurement
Price
Quality
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TIPS IN
CONSOLIDATING
PPMPS
Eligibility
Documents
4.
5.
6.
7.
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TIPSTips
IN CONSOLIDATING
PPMPS
in consolidating PPMPs
Sort by Type of Procurement
Goods
Infra
Consulting
NON-CSE
Mode of Procurement
Sources of Funds
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COAEligibLE
GAP CHECKLIST
Bidders
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.
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COAEligibLE
GAP CHECKLIST
Bidders
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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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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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: [email protected]
Capacity Development Division
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