PROCUREMENT PLANNING

and MONITORING
CAPACITY DEVELOPMENT DIVISION
GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)

Capacity Development Division

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
Capacity Development Division

PROCUREMENT PLANNING
Preparation of PPMP and APP

Capacity Development Division

PHILIPPINE PROCUREMENT PARADIGM

Assess

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

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

Capacity Development Division

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
It is the governments
responsibility

fiduciary

protect the taxpayers interests

safeguard the resources allotted to
each department
Capacity Development Division

PROCUREMENT PLANNING
Involves 2 levels:
1. Procuring entitys over-all strategic plan
2. Project and/or operational plans

Capacity Development Division

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
procurement

to

alternative

methods

However, it must be done within budgetary context

Capacity Development Division

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

Capacity Development Division

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

Capacity Development Division

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.
Capacity Development Division

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PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)

Capacity Development Division

PPMP FORMAT

Capacity Development Division

DEVELOPING
REQUIREMENTS
Developing PROJECT
Project Requirements

Identify
alternative
solutions/
products/
services

Compare the
alternatives
(consider
qualitative and
quantitative
factors)

Identify the need

of the PMO/Enduser unit

Choose the Best

Alternative - the
one that is most
beneficial to the
Procuring Entity

IDENTIFYING
NEED
Important THE
Consideration
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.Es Strategic Plans;
Current supply inventory;
Other maintenance and operating needs.

Capacity Development Division

15

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.
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
Capacity Development Division

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.
Capacity Development Division

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.
Capacity Development Division

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);
Capacity Development Division

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
component.

adjustment

for

Acquisition Cost
Operation Cost
Replacement/Repair Cost
Disposal Cost
Capacity Development Division

contracts

with

foreign

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.

Capacity Development Division

PROCUREMENT MILESTONES

Capacity Development Division

23

PROCUREMENT MILESTONES

Capacity Development Division

24

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.

Capacity Development Division

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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

Capacity Development Division

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Adveartisement
and Posting
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.

Capacity Development Division

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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
No procurement shall be undertaken unless in accordance
with APP
Capacity Development Division

ANNUAL PROCUREMENT PLAN

(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.

29

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
n
Prepare
for
for
Project
consolidation
Consolidati
Procuremen
BAC
and
approval
on and
t
of
the
HOPE.
Review
Secretariat
Managemen
t Plan
(PPMP)
Capacity Development Division

ANNUAL PROCUREMENT PLAN (APP)

Capacity Development Division

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

32

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

Capacity Development Division

33

TIPS INEligibility
CONSOLIDATING
Documents
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

Capacity Development Division

34

TIPS INEligibility
CONSOLIDATING
Documents
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

Capacity Development Division

35

TIPS IN
CONSOLIDATING
PPMPS
Tips
in consolidating PPMPs

REVISIONS ON APP

End-user Unit
BAC Secretariat

Update PPMP

Consolidate
PPMP to APP

HOPE
Capacity Development Division

Approve
Supplementa
l APP

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.
Capacity Development Division

39

COA GAP
EligibLE
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 secondranking official designated by the HOPE to act on his behalf
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.
Capacity Development Division

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COA GAP
EligibLE
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

Capacity Development Division

41

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

Capacity Development Division

3/5/15

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3/5/15

44

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PROCUREMENT
MONITORING

Preparation of PMR

Capacity Development Division

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.

Capacity Development Division

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)
Capacity Development Division

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

Capacity Development Division

PROCUREMENT MONITORING REPORT

(PMR)

Capacity Development Division

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.

Capacity Development Division

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
Capacity Development Division

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

Capacity Development Division

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
Capacity Development Division

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
Capacity Development Division