LECTURE - Planning.ppt

Seminar/ Workshop
Preparation of PPMP and APP:
Concepts, Principles and
Techniques
(Association of Government Internal Auditors)

PHASES OF PROPERTY AND SUPPLY
MANAGEMENT
 ACQUISITION/Procurement
 UTILIZATION/ Custodianship
 DISPOSITION/Destruction or Sale

Government Procurement
Reform Act (Rep. Act 9184)
“An Act providing for modernization,
Regulation and Standardization of the
Procurement Activities of the Government and
for other Purposes”

Coverage Of RA 9184 :
From Procurement Planning to Payment of
Deliverables.
Responsibilities of each official involved –
clear and legally identifiable.
MANAGEMENT
ACQUISITION/PROCUREMENT
Governed by RA 9184 and its IRR

 Purchase/Procurement ( RA 9184 )
 Transfer
 Donation
 Confiscation, Seizure and Foreclosure
 Production/Manufacture :
natural and industrial fruits
MANAGEMENT
MODE OF ACQUISITION

Philippine Procurement Paradigm
Importance/Advantages
2016 IRR of RA 9184
PROCUREMENT PLANNING

Procurement Planning
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

Includes deciding on:
-Whether to procure
-What to procure
-How to procure
-Where to procure
-How much to procure
-When to procure

The following competencies are required:
 knowledge of the items to be procured
 accounting, audit and budget rules and
regulations
 warranty and contract laws, and
 scheduling.

10
END USER
BUDGET OFFICE
APPROVING
AUTHORITY/HoPE
BIDS AND AWARDS COMMITTEE (BAC) &
AND BAC SECRETARIAT
TECHNICAL WORKING
GROUP (TWG)
10
ACTORS IN PROCUREMENT PLANNING

Philippine Procurement Paradigm
NEEDS SATISFACTION
• Post/Advertise
opportunity
• Open and
evaluate bids
• Post-qualify
• Award and
enter into
contract
• Review studies
• Consolidate into
APP
• Decide procurement
method
• Approve APP
• Determine readiness
• Cost-benefit
analysis
• Feasibility
study
• Market study
• PPMP
• Oversee
implementation
• Inspect and
accept deliveries
• Release payment
Assess SELECTION
Implement
Identify
End user End-user
BAC
BAC Sec.
BUDGET
HOPE HOPE
BAC
TWG
BAC SEC

Advantages
• Effective, efficient and economical 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).
WHY PROCUREMENT PLANNING?

 What is an APP?
APP is the document that consolidates the various PPMPs
submitted by the various PE’s 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
ANNUAL PROCUREMENT PLAN (APP)

ANNUAL PROCUREMENT PLAN PREPARATION
END-USER
PREPARES PPMP
HOPE
END-USER
SUBMITS
BUDGET OFFICE
(inclusion in the
Budget proposal)
BAC -
SEC
CONSLIDATE
PPMPs TO
INDICATIVE APP
BAC
RECOMMEND
PROCUREMENT
MODALITY.
SUBMIT TO HOPE
LOCAL
SANGGUNIANG BAYAN/
PANGLUNGSOD/
PANLALAWIGAN FOR
BUDGET APPROVAL
APPROVED
PROPOSE AGENCY
BUDGET (APP, PS,
MOOE, ETC.)
SUBMITS GOCC/GFI
GOVERNING BOARD/
BOARD OF DIRECTORS
FOR BUDGET
APPROVAL
NATIONAL
CENTRAL OFFICES FOR
INCLUSION IN THE
PROPOSED NATIONAL
BUDGET
PREPARES PPMP BASED
ON APPROVED BUDGET
– APPROPRIATION
ORDINANCE /
CORPORATE BUDGET /
GAA
SUBMITS
BUDGET OFFICE
(inclusion in the
FINAL budget as
approved)
BAC -
SEC
Consolidates
Final PPMPs to
Final APP
HOPE
APPROVES
APPROPRIATION
ORDINANCE /
CORPORATE
BUDGET / GAA

 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.
Project Procurement Management
Plan
 t

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.
Minimize the practice of
doing short-cuts
 Important tool in resource
and financial managementnt

Plan
 t
Prepared by the end-user unit
during the budget preparation to
support the cost estimates in the
budget proposal
 The end-user units shall be
responsible for the preparation of
all documents necessary for the
procurement activity, to include
but shall not be limited to,
technical specifications, scope
of work or terms of reference
(Sec. 7.3.2, IRR, RA(9184)

Plan
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

Procedural Steps for Procurement
of Goods/Services–Public Bidding (2016 Revised IRR)
Pre-Procurement
Conf.
Advertise/Post ITB
Call/Hold Pre-Bid
Conference
Open Technical (with
eligibility documents)
Envelope
Open
Financial
Envelope
Receive the
Two (2)
Envelopes
Submission of
Additional Req.
Post-qualify
LCB
Issue
Notice to
Proceed
Pre-Bid C. at least 12 c.d. before bid opening
1 c.d.
1 c.d.
Within 45 c.d.
.Posting – 7 c.d.
within 7 c.d.
Prepare &
Sign Contract
Within 10 c.d.
Approve Resolution
/ Issue Notice
of Award - LCRB
Issue Bidding
Documents
Evaluate &
Rank Bid/s
Within 5 c.d.
Within 7c.d.
Within 15 c.d.

Procurement Timelines for Goods
Operational Timeline (Recommended Earliest Possible Time)
Adv’t/Posting of ITB (7 cd) Day 1 to 7
Issuance and availability of bid docs
(20 cd)
Day 1 to 20
Pre-bid Conference (1 cd) Day 8
Bid Submission/Opening (1 cd) Day 20
Bid Evaluation (1 cd) Day 21
Post-qualification (2 cds) Day 22 to 23
BAC Recom. Approval/NOA Issuance (1
cd)
Day 24
Contract Prep./Signing (1 cd) Day 25
Approval by Higher Authority
Issuance of NTP (1 cd) Day 26
TOTAL TIME 26 calendar days

23
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.

 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.
PROCUREMENT MONITORING

 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.
PROCUREMENT MONITORING

26
ANNUAL PROCUREMENT PLAN (APP)
Per GPPB Resolution No. 20-2015
1 2 3
4
5
6
7
1. Name of Procurement
Project;
2. Procurement
Management Office
(PMO)/end-
user/implementing unit;
3. Method of Procurement;
4. Schedule of identified
procurement activities;
5. Source of funds;
6. Indicative ABC;
7. Other relevant
descriptions of the
project, if applicable.

Annual Procurement Plan
(Procurement Form No. 2)
Procurement Form No. 2
Procuring Entity / Units:_________________________
Calendar Year:______________
Extent/Size of Contract
Scope/Packages J F M A M J J A S O N D
A. Procurement of
Goods/
Supplies/Materials
B. Procurement of Civil
Works
C. Procurement of
Consulting Services
D. Provision for
Emergency Purchases
TOTAL
Prepared by: Recommended by: Approved by:
Name and Signature
Position Position
Name and Signature of Head
of Procuring Entity
Position
Name and Signature
ANNUAL PROCUREMENT PLAN
Type of Contract
Procurement
Method
TIME SCHEDULE APPROVED BUDGET
FOR THE CONTRACT

Evaluation and award per lot or package
Bidder 1 Bidder 2 Bidder 3
Agency
Information
System Plan
1. Hardware
Components
13,499,244.32 12,088,044.23 13,440,153.20
2. Software Components 7,758,647 7,075,669.57 7,135,555.01
3. Training 680,000 204,000.00 170,000
4. Cabling/Installation/
Delivery
1,266,186.38 2,215,000 545,000
Total Bid Price/lot: Php23,204,077.70 Php21,582,713.80 Php21,290,708.21
3rd 2nd 1st
LOWEST CALCULATED
BID (LCB)
to undergo Post-qualification
FINANCIAL PROPOSAL
(Item & Specifications)

Evaluation and award per item
Bidder 1 Bidder 2 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
180,000 204,000 170,000
4. Ceiling mounted
Projector and
Interactive Board
1,266,186.38 No bid No bid
Php1,624,833.38 Php188,044 Php170,000
Lowest calculated &
responsive bid for items 2
& 4
FINANCIAL PROPOSAL
(Item & Specifications)
Lowest calculated &
responsive bid for item
1
Lowest calculated &
responsive bid for item
3
Possible Contract
Award to 3 bidders

LECTURE - Planning.ppt

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