Republic of the Philippines

National Police Commission

NATIONAL HEADQUARTERS, PHILIPPINE NATIONAL POLICE
OFFICE OF THE CHIEF, PNP
Camp, Crame, Quezon City

October 24, 2016

MEMORANDUM CIRCULAR
NUMBER 2016-068

ADDENDUM TO PNP MEMORANDUM CIRCULAR NUMBER 2012-001

RE POLICY GUIDELINES AND PROCEDURES FOR THE DETERMINATION
OF APPROVED BUDGET FOR THE CONTRACT (ABC) IN THE
PROCUREMENT OF GOODS

1. REFERENCES:

a. R.A. 9184 entitled: Government Procurement Reform Act and its Revised IRR;
and
b. PNP Memorandum Circular No. 2012-001 dated January 9, 2012.

2. RATIONALE

This Memorandum Circular (MC) provides for the guidelines and procedures to be
undertaken by the Procurement Management Committee (PMC) in the formulation of the
consolidated Project Procurement Management Plan (PPMP) and the Bids and Awards
Committee (BAC) in the formulation, review and adjustment of the Annual Procurement
Plan (APP) of the Philippine National Police (PNP).

3. PURPOSE:

This MC sets forth the responsibility of the Bids and Awards Committee (BAC) to
review the terms, conditions, and specifications and if necessary adjust the Approved
Budget for the Contract (ABC) consistent with Sections 7 and 35 of Republic Act 9184
and its IRR. It aims to instill responsibilities and liabilities of the concerned officials in
connection with formulation and review of the PPMP. It also aims to streamline the
processes of goods in the Philippine National Police (PNP).

4. SCOPE:

This MC is applicable only to procurement of goods and will not apply to other
types of procurement.

5. DEFINITION OF TERMS:

a. DELEGATED PROCUREMENT - Refers to procurement of goods wherein a

PNP Bids and Awards Committee (BAC), upon approval of the Head of the
Procuring Entity (HOPE), requests other separate BACs of the PNP to
undertake a particular procurement for them, in order to hasten the
implementation of the project.

b. SEPARATE BAC – A BAC other than the NHQ BAC given authority by the
HOPE to procure goods for the PNP

132
 6. GUIDELINES AND PROCEDURES:

a. The PMC shall act as the oversight body in the formulation of the PPMP. It shall
review the PPMP as submitted by the end-user and consolidate the same for
submission to the BAC, through the Secretariat.

b. The consolidated PPMP shall be submitted by PMC to the BAC for formulation
of the Annual Procurement Plan (APP). The CPNP or its duly authorized official
acting as the HOPE or duly authorized official of the HOPE, respectively, shall
approve the APP for implementation.

c. During the procurement process, the BAC through its Technical Working Group
(TWG) shall, pursuant to Section 35.3 of the RIRR of RA 9184, revise the terms,
conditions, and specifications, and if necessary adjust the Approved Budget for
the Contract (ABC) subject to the required approval;

d. After adjusting the ABC, the procuring entity may conduct a re-bidding with
advertisement and/or posting as provided for in Section 21.2 of the RIRR of RA
9184; and

e. The HOPE or its duly authorized official shall approve and sign the updated or
supplemental APP prior to its adoption.

7. PENALTY CLAUSE:

Any violation of this MC shall be a ground for administrative/disciplinary action

under existing rules and regulations without prejudice to the filing of appropriate
administrative and criminal cases, if warranted against the erring PNP personnel.

8. REPEALING CLAUSE:

All policies, memoranda, issuances, and other circulars or portions thereof

inconsistent with this circular are hereby rescinded/repealed or modified accordingly.

9. EFFECTIVITY:

This MC shall take effect after 15 days from filing of a copy thereof at the University
of the Philippines Law Center in consonance with Section 3 and 4, Chapter 2, Book VII
of Executive Order No. 292, otherwise known as “The Revised Administrative Code of
1987”, as amended.

Original Signed
RONALD M DELA ROSA
Police Director General
Chief, PNP

133
Proposed MC re-Addendum to PNP MC Number 2012-001

FLOW CHART

PMC

 Consolidate PPMPs from PNP Units

 Formulate Indicative PPMP and submit to
NHQ BAC for formulation of Indicative APP

NHQ BAC

 Formulate/Prepare Indicative/Adjusted APP

 Endorse Indicative APP to (HOPE) for approval

HOPE

 Approve and Sign Indicative/Adjusted APP

(For Adjusted APP)

NHQ BAC

 Implement Indicative/Adjusted APP

through procurement of goods

YES NO

134