Procurement Planning and Monitoring - April 2015

PLANNING AND
MONITORING
PROCUREMENT PROJECTS
PROCUREMENT PLANNING
Philippine Procurement Paradigm
Legal Basis
Importance/Advantages
Philippine Procurement
Paradigm
HOPE
Assess
BAC
BAC Sec
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
Selection
HOPE
BAC
TWG
Budget
BAC Sec
End User
End User
Identify
NEEDS
Cost-benefit analysis
Feasibility study
Market study
PPMP
Oversee
implementation
Inspect and accept
deliveries
Release payment
Implement
SATISFACTIO
N
A
GOAL
without
a PLAN
is
simply
a wish
Legal Basis
All procurement should be meticulously and

judiciously planned by the procuring entity (PE)
(Section 7.1 IRR of R.A. 9184)
Only procurement projects considered crucial to

the efficient discharge of governmental functions
shall be included in the Annual Procurement Plan
(APP).
Included in the approved GAA
In line with the priority programs of the
GOCC
Legal Basis
NO
procurement
shall
be
undertaken
unless
it
is
in
accordance with the approved
annual procurement plan of the
procuring entity.
(Section 7.2 IRR of R.A. 9184)
Legal Basis
End-user units or Project Management Office

(PMO) shall prepare Project Procurement
Management Plan (PPMP) for their programs,
activities, and projects (PAPs). (Section 7.3.2)
Budget Office evaluates PPMPs and includes in

budget proposal for HOPE approval. (Section
7.3.3)
BAC Secretariat reviews and consolidates PPMPs

approved by the budget office into a proposed
APP. (Section 7.3.4)
Involves identifying which

project/program/activity needs of the
procuring entity can best be met by
procuring products or services. It includes
deciding:
Whether to procure
What to procure
How to procure
Where to procure
How much to procure
When to procure
Advantages
Effective and efficient achievement of project

goal.
Precludes
occasions
for
unnecessary
government purchases and circumventions of
the prescribed procurement procedures, such as
advance deliveries,
suki system, or
unwarranted resort to alternative methods
procurement (AMP).
Done within budgetary context reflecting the

Procuring Entity (PEs) priorities and objectives
for the budget period.
It
is
the
governments
fiduciary
responsibility to protect the taxpayers
interests and to safeguard the resources
allotted to each department.
The following competencies are required:
knowledge of the items to be procured

accounting,
warranty and contract laws, and
scheduling.
PREPARATION OF THE
PROJECT PROCUREMENT
MANAGEMENT PLAN
Procedures and Components of the
PPMP
Legal Basis
12
PROJECT PROCUREMENT
MANAGEMENT PLAN
Shall be prepared by the
PMO/End-user Units
Serves as a guide
document in procurement
and contract
implementation process.
It is a vital reference in
procurement monitoring
Important tool in resource
and financial management
13
PROJECT PROCUREMENT
MANAGEMENT PLAN
When is the PPMP prepared?

PPMP is prepared simultaneously with the budget
proposal
Why is the PPMP prepared?

PPMP is important in determining and projecting
the quantity and quality of the expected outputs of
the PAPs.
14
Program / Project / Activity

Structure
PROGRAM
homogenous group of activities necessary for
the performance of a MAJOR PURPOSE for
w/c the PE is established, for basic
maintenance of the PEs administrative
operations or for the provision of staff
support to the PEs administrative operations,
or PEs line functions.
Program /Project/ Activity

Structure
PROJECT
special undertaking w/c is carried out w/in a definite
time frame and which is intended to result in some
pre-determined measure of goods and services.
ACTIVITY
work process which is designed to contribute to the
accomplishment of specific objectives and to the
implementation of a program or project.
PROJECT PROCUREMENT
MANAGEMENT PLAN
Project Procurement Management Plan
Info whether contracted out/by admin/consigned
Contents
Name/Title and General Description of the Project

Extent/Size of Contract Scopes/Packages
Type and Objective of Contract
Procurement Method
Time Schedule / Procurement Milestones
Estimated Budget for the Contract
18
The Project Procurement Management Plan (PPMP)
Column 1: CODE
PROJECT PROCUREMENT
MANAGEMENT PLAN
CODE serves as reference number for projectspecific procurement
OPS1-001
Office code Offices under the
Office of the Planning Service
Office code Division under the
OPS
Chronological order of Proc

Project
Indicate Code in the Authority to Procure

20
9/5/16
PROJECT PROCUREMENT
MANAGEMENT PLAN
OFFICE OF THE PLANNING SERVICE
Code
OPS
OPS1
Planning and Programming Division
OPS2
Research and Statistics Division
OPS3
Project Development and Evaluation Division
OPS4
Physical Facilities and Schools Engineering Division
Complete List of Code Assignment
21
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Col. 2: Title of
Program/Activity/Project
22
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PROJECT PROCUREMENT
MANAGEMENT PLAN
Title of Program, Activity or Project
Procurement Project
CODE
TITLE OF PROGRAM, ACTIVITY OR PROJECT

CY 2013 School Furniture Program
OPS04001
Procurement of School Furniture for Public

Elementary and Secondary Schools under the
10% National Reserved Fund 2013
OPS04002
Procurement of School Furniture for Public

Elementary and Secondary Schools under the 10%
Unallocated Portion for Cooperatives formed by
PWD
23
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PROJECT PROCUREMENT
MANAGEMENT PLAN
CODE
TITLE OF PROGRAM, ACTIVITY OR PROJECT

Procurment of Test Materials (Printing, Processing &
Forwarding Services)
NETRC001
NETRC002
NETRC003
Philippine Educational Placement Test (PEPT)

2014 National Career Assessment Examination
(NCAE)
2014 Educational Management Test
Should be based on the entries in the WFP

must be specific, clear and concise
Col. 3: Type of Contract
PROJECT PROCUREMENT
MANAGEMENT PLAN
Types of Contract
A.
Goods
Items, supplies, materials & general

services, except consulting services
projects, which may be needed
transaction of public businesses or
pursuit of any government undertaking.
support
& infra
in the
in the
Includes, but is not limited to the following:

a)
equipment, furniture or stationary
b)
Construction materials
c)
personal property of any kind,
26
9/5/16
PROJECT PROCUREMENT
MANAGEMENT PLAN
Types of Contract
A. Goods
d)
non-personal or contractual services,

i. repair & maintenance of equipment/
furniture
ii. trucking, hauling, and courier
iii. janitorial, security and manpower
Can be classified into
1.
Expendable
2.
Non-Expendable
3.
General Support Services
27
4.
Related
or
Analogous
Services
9/5/16
PROJECT PROCUREMENT
MANAGEMENT PLAN
Types of Contract - Goods
9/5/16
Related or analogous services shall include, but not

limited to the following:
a) lease or purchase of office space
b) media advertisements
c) health maintenance services
d) other services essential to the operation of the
procuring entity
e) rental of venues and facilities
f) catering services
g) lease of computers, copiers and other
28
information technology equipment
Common Use Supplies and Equipment
All ordinary and regular office supplies and equipment

shall be procured from DBM-Procurement Service
Inventory Items
Non-common use/non-inventory supplies
To be included in the Annual Procurement Plan for
Common-use Office Supplies and Equipment (APPCSE), and included under the PPMP of Property
Division (PD).
Procurement of items not available at DBM-PS, to be
undertaken by the BAC, subject to a certification issued
by PD that item is not available at DBM-PS and
included in the APP-CSE.
29
Annual Procurement Plan for Common Use Supplies and

Equipment (APP-CSE)
Letter of Instructions 755 Series of 1978, Executive Order No.

359 Series of 1989 and Administrative Order No. 17 Series of
2011,
implementation of a government wide integrated procurement
system for supplies, materials and other items needed by the
government by the Procurement Service.
Department of Budget and Management Circular No. 2011-
06
and 2011-6A,
directs the preparation and submission of the procuring entitys
(PEs) Annual Procurement Plan for Common Use Supplies and
Equipment (APP-CSE), consistent with the objective of
strengthening the service delivery of the DBM-Procurement
Service.
DBM CL No. 2013-14, Nov. 29, 2013
30
B. Infrastructure Projects
Includes the following
Construction
Improvement
Rehabilitation
Demolition
Repair
Restoration
Maintenance
Roads and bridges/ Railways

Airports and seaports
Communication facilities
Civil works components of IT projects
Irrigation/ Water Supply
Flood control and drainage/ Sanitation
Sewerage and solid waste management systems
Shore protection
Energy/power and electrification facilities
Buildings (National, School, Hospital)
Other related construction projects
34
PROJECT PROCUREMENT
MANAGEMENT PLAN
C. Consulting Services (CS)
- services requiring adequate external technical and
professional expertise beyond the capability and/or
capacity of the agency to undertake
Advisory and Review Services

Pre-investment and Feasibility Studies
Design (For Infra Projects)
Construction Supervision
Management and Related Services
Other technical services or special studies
35
Col. 4: Procurement Method
PROCUREMENT
METHODS
General Rule: Public Bidding
APP provides sufficient lead

time for bidding
Resort to Alternative Methods

allowed
Highly exceptional cases
To promote economy and

efficiency
Justified by conditions specified

in IRR
Recommended by BAC
Approved By HOPE
Bidding Process for

of
Goods/InfraDistribution
Bid Docs
Advertise/ Post
Invitation to Bid
Bid Submission
Bid Evaluation
Opening of
Technical Proposal
(incl. eligibility docs)
Post-qualification
Contract Signing
3 months
Pre-Bid
Conference
Opening of
Financial Proposal
Issuance of NOA
Issuance of
NTP
Bidding Process for Consulting Services

Quality-Based
Evaluation
PreProcurement
Conference
from 1st day of

posting
not to exceed 20 c.d.
Opening of
Submission
Eligibility
of
Envelope
Eligibility
and
Requirements
Eligibility
Check
Issue
Eligibility
Requirements
Advertisement/Posting
7 c.d.
Shortlisting HOPE Approval
Submission of bid: Maximum 75 c.d. from last day of posting
Deadline for
Submission
of
Proposals
1 c.d.
Opening of
Technical
Proposal
& Preliminary
Examination
Technical Proposal
Evaluation
& Ranking
not more than 21 c.d.
+ 2 c.d. for HOPE approval
of ranking
Pre-Bid
Conference
Issue Bidding
Documents
at least 12 c.d.
before bid opening
from issuance of LIB
Notification for
Opening of
Financial
Proposal and
Negotiation w/
First-in-Rank
3 c.d. from HOPE approval
10 c.d. <
3 c.d. from notice
Negotiation
Submission
of Additional
Requirements
Award of
Contract
Post-qualification
7 c.d.
Bidding Process for Consulting Services

Quality-Cost Based
Evaluation
PreProcurement
Conference
from 1st day

of posting
not to exceed 20 c.d.
Opening of
Submission
Eligibility
of
Envelope
Eligibility
and
Requirements Eligibility
Check
Issue
Eligibility
Requirements
Advertisement/Posting
7 c.d.
Shortlisting HOPE Approval
Submission of bid: Maximum 75 c.d. from last day of posting
Deadline for
Submission
of
Proposals
1 c.d.
Opening of
Technical
Proposal
& Preliminary
Examination
Technical Proposal
Evaluation & Ranking
Notification & Opening
of Financial
Proposal & Ranking
not more than 21 c.d. + 2 c.d
for HOPE approval of HRB
Pre-Bid
Conference
Issue Bidding
Documents
at least 12 c.d.
before bid opening
from issuance of LIB
3 c.d. from HOPE approval
Notification for
Negotiation
10 c.d. <
3 c.d. from notice
Negotiation
Submission
of Additional
Requirements
Award of
Contract
Post-qualification
7 c.d.
PROCUREMENT
METHODS
5 Alternative Methods of
Procurement:
Limited Source Bidding
Direct Contracting
Repeat Order
Shopping
Negotiated Procurement
Col. 5 & 6: Estimated Budget

&
Source of Funds
Columns 7 to 18: Schedule/Milestones of

Activities
January to December
INCLUDE DATE OF PRE-PROCUREMENT
CONFERENCE
(at least 15 c.d. prior to advertisement )
43
9/5/16
Procurement Timelines for

Earliest Possible Time
Goods
Advertisement/Posting of ITB
Issuance and availability of bid

docs
Pre-bid Conference
Submission/Opening of Bids
Bid Evaluation
Post-qualification
19
12
1
1
1
BAC Recom. Approval/NOA

Issuance
Contract Preparation and

Signing
Approval by Higher Authority
Issuance of NTP
TOTAL TIME
28 calendar days

Latest Possible Time
Goods
Advertisement/Posting of
ITB
Issuance/availability of bid
docs
Pre-bid Conference
Submission/Opening of
Bids
Bid Evaluation
Post-qualification
Approval of BAC Recom.
For Award/Issuance of NOA
Contract Prep. and Signing
7
52
12 30
1
7
30
7
10
Approval by Higher
Authority
15
Issuance of NTP
9/5/16
3
45
Procurement Timelines
Timelines for the Procurement of Infrastructure Projects
with an ABC of above Php. 50 Million (Annex C)
Latest Allowable Time
Timelines for the Bidding Process of Infrastructure
Projects with an ABC of Php. 50 Million and below
(Annex C) Latest Allowable Time
Timelines for the Bidding Process of Infrastructure
Projects (Annex C) Earliest Possible Time

Earliest Possible Time
Consulting
Advertisement/Posting of REI
Eligibility Check and Shortlisting

Issuance and availability of bid
docs
Pre-bid Conference
Submission/Opening of Bids
Bid Evaluation/Approval of
ranking
Notification for Negotiation
Negotiation
Post-qualification
BAC Recom. Approval/NOA
Issuance
Contract Preparation and
Signing
3
23
12
1
2
1
1
1
2
2
Latest Possible Time
Advertisement/Posting of
REI
Eligibility Check and
Shortlisting
Issuance/availability of bid
docs
Pre-bid Conference
Submission/Opening of
Bids
Bid Evaluation/Ranking
Approvl
Notification for Negotiation
Negotiation
Post-qualification
Approval of BAC
Recom./Issuance of NOA
Contract9/5/16
Prep. and Signing
7
20
82
12
1
23
3
10
30
7
50
10
http://www.gppb.gov.ph/
NOTE: Technical Specifications, Scope

of Work, or Terms of Reference for
each Item/Project shall be submitted as
part of the Authorities to Procure.
PPMP is transformed into Bidding Documents

End-user and TWG provides BAC Secretariat all
the necessary documents and information
relative to the procurement request
Authority to Procure with budget allotment

(Purchase Request or Requisition Voucher)
Market Analysis, containing the specification
of the items and estimated cost,
validated/analyzed by TWG, if any
Clearance or recommendation from Clearing
House and Justification
PREPARATION OF THE
ANNUAL PROCUREMENT
PLAN
Procedures and Factors to Consider in
Developing the APP
Components of the APP
Revision/Updates
55
ANNUAL PROCUREMENT
What is an APP? PLAN
APP is the document that consolidates the various

PPMPs submitted by the various PEs end-user
units/PMOs.
Who prepares the APP?

APP is prepared by the BAC, through the BAC
Secretariat
Who approves the APP?

APP should be approved by the HOPE or its duly
authorized 2nd ranking official
56
Preparation of APP
APP
Budget Office
End-User Unit
Submit to
Budget
Office for
evaluation
Prepare
Project
Procurement
Management
Plan (PPMP)
Submit
Budget
Proposal to
HOPE
Upon
approval of
HOPE, Budget
Office will
forward
PPMPs to
BAC
Secretariat for
Consolidation
and Review
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
ANNUAL PROCUREMENT
PLAN
Factors to consider
in developing an APP?
Inclusion of all procurement activities planned

for the year;
Include provisions for a lump sum to cover
foreseeable
emergencies
or
contingencies
usually indicated by historical records;
Scheduling of procurement activities in the APP
should be done in such a manner that the BAC
and the other offices/units involved in the
procurement process in the procuring entity are
able to efficiently manage the conduct of
procurement transactions.
58
ANNUAL PROCUREMENT
How is the APP prepared
PLAN & maintained?
APP should be maintained and updated

regularly
In the consolidation of PPMPs, BAC may adopt

a strategy through which similar items of
procurement
are
packaged
into
one
procurement undertaking and under a single
PPMP, in which the original PPMPs shall be
consolidated and revised.
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.
Revisions on APP
End-user Unit
BAC Secretariat
HOPE
Update PPMP
Consolidate
PPMP to APP
Approve
Supplemental
APP
Annual Procurement Plan

(APP)
APP & PPMP

Upon confirmation of
availability of budget,
BAC Secretariat will
consolidate information
from PPMP to the APP
Similar projects shall be
consolidated into one
(1) entry in the APP
APP & PPMP
Procurement Delivery Schedule shall be as is with PPMP

However, other procurement activity schedules shall be merged to take
advantage of volume discounts.
APP & PPMP

Source funds shall
be identified.
Similar items with
different source of
funds shall be
separate entries
For items in the
PPMP that were
consolidated, the
budget shall be
totaled
TIPS IN CONSOLIDATING
PPMPs INTO AN APP AND
COA GAP CHECKLIST
65
Tips in consolidating PPMPs

1.
2.
3.
All procurement shall be separated whether

goods, civil works or consulting.
Civil works or consulting services are usually
distinct entries in the APP, unless PE finds merit
in merging infrastructure project scopes (civil
works) or deliverables (consultants)
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
Tips in consolidating PPMPs

4.
5.
6.
7.
All CSE whether for procurement from PS or not

shall be consolidated into an APP-CSE which
shall be submitted to the Procurement Service
For the APP, CSE shall be separated whether to
be bought from the PS and CSE which shall be
bought outside the PS
All partitions shall again be separated into mode
of procurement (public bidding or alternative
methods)
All entries can then be grouped by source of
funds
COA GAP Checklist

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.
3.2.2.
3.2.3.
3.2.4.
3.2.5.
3.2.6.
3.2.7.
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; and
Approved Budget for the Contract.
COA GAP Checklist

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. 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.
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
1.
Submission/Posting Requirements
In preparing the APP, use the GPPB prescribed

format
Post a copy of the APP in the PEs website and

the On-Line Monitoring Evaluation System
(OMES) in the GPPB website
www.philgeps.net philgeps website

www.gppb.gov.ph gppb website
70
PROCUREMENT
MONITORING
Procurement Monitoring Report
Procedures, Timelines and Other
Considerations for Developing a
Procurement Monitoring Report
Components of a Procurement
Monitoring Report
Legal Basis
71
PROCUREMENT MONITORING
What is Monitoring?
Tracking of inputs, activities, outputs, and
outcomes of the procurement activity; and
Tracking results of current operations on a
regular basis.
What is a PMR?
PMR is the document that reflects all of the
procurement activities undertaken by the
procuring entity, whether completed or on-going
Who prepares the PMR?

PMR is prepared by the BAC, through the BAC
Secretariat
Who approves the PMR?

PMR shall be approved by the HOPE & submitted
to the GPPB.
73
What does the PMR cover?

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.
When will the PMR be submitted?

After HOPE approval, the PMR shall be submitted
to the GPPB in printed & electronic format w/in 14
cd after the end of each semester.
74
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
Proc. Monitoring Report
PMR Project Description &

Mode of Procurement
These are the projects
in the APP that were
procured in the year.
Ongoing projects shall
still be included.
Reminders:
1. It is advised that the
PAP code from the
APP shall be the same
PAP code in the PMR.
2. Mode of procurement
in the APP should be
the same in the PMR
PMR Proc. Schedule
While it is not prescribed that the procurement schedule the APP

should match the procurement schedule in the PMR, a comparison
of the two may indicate the effectiveness of the planning activity.
PMR Budget/Contract Cost

This portion shows the
difference (if any) of
the ABC and the
contract amount and
shall be a good
indicator on capability
of the entity in setting
of the ABC amount
An additional column
should be added for
the winning bidder.
PMR - Observers
As mandated in Section 13 of the IRR, Observers shall be

invited in all stages of procurement.
This section of the PMR monitors the compliance of procuring
entities to this provision.
COA GAP Checklist

1. To verify if the BAC:
a. prepared a PMR in the GPPB prescribed form;
b. covering all procurement activities specified in
the 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 HOPE
for approval and submission to the GPPB in
printed and electronic format within 14 days
after the end of each semester
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
Submission/Posting Reqts
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
Why is the PMR prepared?
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.
84
Why is the PMR prepared?
It monitors the results of current operations on a

regular basis.
BAC shall ensure that the procuring entity abides
by the standards set forth under R.A. 9184 and its
IRR.
85
FACTORS TO CONSIDER IN
PREPARING TECHNICAL
SPECIFICATIONS AND
DETERMINING THE ABC
FOR THE PROCUREMENT
OF GOODS
86
Factors to Consider in Planning
1.
Nature of the Goods to be Procured.

Goods may be classified into different categories,
such as:
a.
Common-use supplies;
b.
Inventory items;
c.
Non-common use supplies (which may
include equipment or supplies that are
project-specific); or
d.
General Support Services or Other Related
and Analogous Services.
2.
Availability of the Goods or Services in the

Market.
.
Identification of the procurement method is

dependent on the supply market.
Goods that are universally available should be

procured through public bidding.
2.
Availability of the Goods or Services in the

Market.
.
Goods that are available seasonally, or to be

manufactured specially for the PE, would
require more intensive planning in terms of
timelines
for
procurement,
taking
into
consideration manufacturing lead time, e.g.
textbooks, school furniture.

3.
Obsolescence, operation, and maintenance

of equipment/non-consumable Goods.
In buying equipment, consider the operation
and maintenance requirements of the goods.
availability and cost of spare parts in the local
market,
If spare parts
and maintenance services
are not available locally, or, if available, are
very expensive, the PE may consider
buying,
instead,
the
substitute
or
equivalent product.
Skills required in operating and maintaining the

equipment, and similar considerations.
For high-technology items w/c cannot be

satisfactorily substituted by other products, PE
may
include
supply
of
spare
parts,
consumables and/or maintenance services for
a specified period of time, as part of the
contract package.
Obsolescence could also be a factor in deciding

whether to lease or to buy equipment.
It may be more economical to lease

equipment that are easily rendered
obsolete, like IT equipment.
Setting the technical specifications

PMO or end-user unit must consider the ff:
1.
Objectives of the project or the procurement

at hand,
Supply and Delivery;
Supply, Install and Training;
Procurement of Unit, cabling and

installation;
Servicing and Maintenance

1 (a) Goods: Supply only
Goods are supplied and delivered to
a designated place or site.
1 (b) Goods: Supply and install
Goods are supplied, delivered, installed, run,
and tested at a designated place or site.
1 (c) Goods: Supply, install and maintain
Goods are supplied, delivered, installed and
maintained at the designated place or site.
Evaluation and award per item

FINANCIAL PROPOSAL
(Item & Specifications)
Bidder 2
Bidder 1
Bidder 3
Refurbishment of
Conference
Room
1. 24-seater
Conference Table
199,244
188,044
190,153
2. 100 sq.m. Carpet
358,647
475,669
435,555
3. 50 pieces upholstered
chairs with arm rest
4. Ceiling mounted
Projector and
Interactive Board
180,000
204,000
170,000
1,266,186.38
No bid
No bid
Php1,624,833.38
Php188,044
Php170,000
Lowest calculated &

responsive bid for item
1
Lowest calculated &

responsive bid for item
3
Possible Contract
Award to 3 bidders
Lowest calculated &

responsive bid for items 2
&4
PMO or end-user unit must consider

the following:
Standards that should be met by the

goods in terms of
function,
performance,
environmental interface, and/or
design.
Functional Description
is the description of the functions for which the
Goods are to be utilized.
Example:
light bulb output = 315 lumens
voltage = 150V to 250V
Performance Description
refers to the manner that the Goods are
required to perform the functions expected of
them
Example:
light output = 750 lumens without flicker
efficacy = at least 50 lumens per watts
energy saving = up to 80% over

standard incandescent bulbs
Environmental Interface
refers to the environment in which the required
functions are to be performed at the desired level
Example:
Minimum starting temperature = 0C (32F)
Do not use in damp, water splashed areas
Not suitable for use with enclosed downlights
Not suitable for use with dimmers, electronic

switches or remote controls
Design
refers to the technical design of the goods being procured
Antique
Nostalgic
Heat
Lamp
Yellow
Bug
Twist
& Lock
Coil
Appliance
Ceiling
Fan
Decorative
Globe
Amusement
Light Bulb
3-way
Screwin
Standard
Colored
Party
Decorative
Chandelier
Medium
Base
Stringers
Air
Purifying
Reflector
S 14
Design
PictureExit
Nondimmable
Product Life
refers to the useful life of a product
Example:
average life = at least 6,000 hours
Engage services of technical experts/consultants,

if necessary.
Description should be clear and specific to avoid

confusion, facilitate evaluation and help Bidders
respond realistically and competitively to the PEs
requirements of without qualifying their bids.
Description should be generic and flexible, not

product-specific or seemingly tailored for a
particular
brand,
product,
contractor,
or
consultant, unless it involves intellectual property
rights or exclusively offered.
Specifications should require that all items,

materials and accessories are
1. New and unused,
2. Most recent or current models, and
3. include or incorporate all recent improvements
in design and materials unless otherwise
provided
Samples of specifications from previous similar

procurements are useful.
Care must be taken and ensure that specifications

are not restrictive.
Specifications must be prepared to permit the

widest possible competition and present a clear
statement
of
the
required
standards
of
workmanship, materials, and performance of the
goods and services to be procured.
1. Production/delivery schedule,
2. Manpower requirements, and
3. After-sales service/parts
Standardize General Technical Specifications and

incorporate them in a separate subsection
depending on the goods complexity and the
repetitiveness of the type of procurement
Conduct a market survey

industry developments or standards, product
or service standards specified by the
authorized government entity like the Bureau
of Product Standards, ISO9000 or similar local
or international bodies.
For products where there are no specified
Philippine standards, the standards of the
country of origin or other international body
may be considered.
Product brochures, technical publications,
industry newsletters, the industry itself, as
well as the Internet, are good sources of
product information.
Conduct a market survey
study of the available products or services,

The conduct of a comparative study of the
options available in the market and their
relevance to the requirements of the Project is
highly recommended.
Where appropriate, drawings, including site

plans as required, may be furnished by the PE
with the Bidding Documents.
Similarly, the
Supplier may be requested to provide drawings
or samples either with its Bid or for prior review
by the Procuring Entity during contract
execution.
Determine the ABC
ABC refers to the budget for the contract duly approved by

the HOPE, as provided for in the GAA, the corporate
budget for the contract approved by the governing board,
pursuant to E.O. No. 518, s.1979, in case of GOCCs and
GFIs (Section 5.b) and executive budget duly approved by
the local sanggunian, case of LGUs
ABC should not exceed approved budget.
Determine the ABC

Factors to consider in determining ABC:
1.
2.
3.
4.
Appropriation for the project or procurement;

The cost or market price of the product or
service itself;
Incidental expenses like freight, insurance,
taxes, installation costs, training costs, if
necessary, and cost of inspection;
The cost of money, to account for government
agencies usually buying on credit terms;
Determine the ABC

Factors to consider in determining ABC: (Cont.)
1.
2.
3.
Inflationary factor, since the planning phase is

usually done one year ahead of the actual
procurement date;
Quantities, considering that buying in bulk
usually means lower unit prices; and
The supply of spare parts and/or maintenance
services, if these are part of the contract
package.
Packaging the Contract
Most common types of contracts provide for payments on

the basis of a lump sum, unit price, or combinations thereof.
Size and scope of individual contracts will depend on the

magnitude, nature, and location of the project, for example:
1.
Projects requiring a variety of goods and works, separate

contracts may be awarded for the supply and/or
installation of different items
2.
Project requiring similar but separate items of equipment

or works, bids may be invited under alternative contract
options that would attract the interest of both small and
large firms, which could be allowed, at their option, to
bid for individual contracts (slices/items) or for a group
of similar contracts (package).

Incidental Services
performance or supervision of on-site assembly and/or

startup of the supplied Goods;
furnishing of tools required for assembly and/or

maintenance of the supplied Goods;
furnishing of a detailed operations and maintenance

manual for the supplied Goods;
performance or supervision or maintenance and/or repair

of the supplied Goods, for a period of time agreed by the
parties; and
training of the Procuring Entitys personnel.

Spare Parts
Spare parts required are included in the Contract Price.
Supplier shall carry sufficient inventories to assure exstock supply of consumable spares for the Goods for a
period of time.
Other spare parts and components may be supplied

through ordering agreement.
Ordering Agreement
GPPB Resolution 01-2012 dated 27 January 2012
Expands the application of Ordering Agreements to the

following:
Expendable and Non-expendable Goods
Services for Hotel Accomodation, Air Travel, and
Repair and Maintenance
APP shall indicate the types of items considered for inclusion

in the Order Agreement List (OAL)
OAL shall indicate: type of item, quantity, tech specs or scope

of service, estimated contract/item or service, total ABC/
product or services, and other appropriate info.
Ordering Agreement
PPMP
APP
Competitive
Bidding
Termination
Delivery
Order
Contract
Ordering
Agreement

Packaging
The Supplier shall provide instruction on packaging of the Goods
to prevent damage or deterioration during transit to their final
destination.
Packaging case size and weights. Consider the remoteness of
the GOODS final destination and the absence of heavy handling
facilities at all points in transit.
Marking, and documentation. Inside and outside the packages,
including additional requirements, if any, as ordered by the PE.
Example: The outer packaging must be clearly marked on at least
four (4) sides the following:
Name of the Procuring Entity

Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting or handling instructions
Any relevant HAZCHEM classifications
PREPARING FOR THE

PROCUREMENT OF
INFRASTRUCTURE
PROJECTS
12
Preparing for Infra. Projects
For Infrastructure Projects, the APP shall

consider the appropriate timing/phasing of
related project activities such as engineering
design and acquisition of ROW to reduce/lower
project costs
Detailed Engineering
No bidding and award should be made unless the

detailed engineering investigations, surveys and
designs, including acquisition of ROW have been
carried out
Exception: design and build schemes
Detailed Engineering work includes:

1.
Design standards in accordance with
appropriate standards and accepted detailed
engineering practice
2.
3.
Field Surveys and Investigations include aerial,

hydrographic, topographic, hydrologic, subsurface, monumenting and other surveys, to be
carried out in accordance with the design
guidelines, criteria and standards adopted by the
agency
Contract plans incorporating site development
plan, plans and profile sheet, typical sections and
details, drainage details, structural plans, and
other details which may be required

4.
5.
6.
7.
Quantities computed to a reasonable accuracy +/- 10%

Special provisions prepared for specific items of work or
methods of construction, measurement and payment, not
covered by standard construction and material specifications
adopted by the agency
Unit prices costs based on reasonable approved current
prices, projected over the proposed construction period
ABC projected movements in construction costs over the
period
8.
Bidding Documents
9.
Program of Work including estimates of the work, items,
Factors to consider in Determining ABC:

1.
Cost or market price of the service
2.
Incidental expenses (taxes, training costs

if necessary, cost of inspection)
3.
Cost of money (for agencies that usually

buy on credit)
4.
Inflationary factor
PREPARING FOR
CONSULTING SERVICES
12
Preparing for Consulting
Factors to consider in Determining ABC:

1.
2.
3.
Cost or market price of the service

Cost of money (for agencies that usually buy
on credit)
Inflationary factor
Preparing for Consulting
Computing the Cost of Consultancy based on

cost to the consultant of actual services to be
rendered plus a reasonable level of management
fee. It consists of:
1. Remuneration Cost paid to the consultants
staff who are directly engaged in the service
per manning schedule. Consists of:
a. Basic Rates
b. Billing Factor or Multiplier
Overhead Cost
Social Charges
Management Fee
Preparing for the Procurement of

Consulting Services
2.
Reimbursable Costs includes all other

expenses associated with the execution of the
service. May be classified into:
a.
Based on Agreed Fixed Rates paid to the

staff and includes:
b.
Based on Actual Cost supported w/ invoices
c.
Housing Allowance
Per Diems
For foreign consultants misc. intl travel
expenses
International Travel, Domestic Travel,
Domestic Transportation, Communication
Expenses, Office/ Engineering Suppliers, Field
Office, Equipment Rental, Software Licenses,
Other necessary items
Contingency

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PLANNING AND

All procurement should be meticulously and

Only procurement projects considered crucial to

End-user units or Project Management Office

Budget Office evaluates PPMPs and includes in

BAC Secretariat reviews and consolidates PPMPs

Involves identifying which

How much to procure

Effective and efficient achievement of project

Done within budgetary context reflecting the

The following competencies are required:

knowledge of the items to be procured

When is the PPMP prepared?

Why is the PPMP prepared?

Program / Project / Activity

Program /Project/ Activity

Name/Title and General Description of the Project

The Project Procurement Management Plan (PPMP)

CODE serves as reference number for projectspecific procurement

Chronological order of Proc

Indicate Code in the Authority to Procure

Planning and Programming Division

Research and Statistics Division

Project Development and Evaluation Division

Physical Facilities and Schools Engineering Division

Complete List of Code Assignment

The Project Procurement Management Plan (PPMP)

TITLE OF PROGRAM, ACTIVITY OR PROJECT

Procurement of School Furniture for Public

Procurement of School Furniture for Public

TITLE OF PROGRAM, ACTIVITY OR PROJECT

Philippine Educational Placement Test (PEPT)

Should be based on the entries in the WFP

The Project Procurement Management Plan (PPMP)

Col. 3: Type of Contract

Items, supplies, materials & general

Includes, but is not limited to the following:

non-personal or contractual services,

Types of Contract - Goods

Related or analogous services shall include, but not

Common Use Supplies and Equipment

All ordinary and regular office supplies and equipment

Annual Procurement Plan for Common Use Supplies and

Letter of Instructions 755 Series of 1978, Executive Order No.

Department of Budget and Management Circular No. 2011-

Roads and bridges/ Railways

Advisory and Review Services

The Project Procurement Management Plan (PPMP)

Col. 4: Procurement Method

General Rule: Public Bidding

APP provides sufficient lead

Resort to Alternative Methods

To promote economy and

Justified by conditions specified

Bidding Process for

Bidding Process for Consulting Services

from 1st day of

not to exceed 20 c.d.

Shortlisting HOPE Approval

Submission of bid: Maximum 75 c.d. from last day of posting

from issuance of LIB

3 c.d. from notice