PROCUREMENT

PLANNING
 I Procurement Planning

II Procurement Planning and Budget Linkage

Project Procurement Management Plan (PPMP)

III

IV Annual Procurement Plan (APP)

V Early Procurement Activities

VI Simplified Posting and Electronic Submission of

Procurement Reports
WHAT IS PROCUREMENT?

It is the process of selecting

services from a supplier who
fits best the need.

It includes the process of

selecting products and
services that will provide value
for money.
WHO ARE THE PLAYERS IN PROCUREMENT
PLANNING?

Bids And Awards

Approving Committee (BAC) End-User
Authority/HoPE & Secretariat

Technical
Budget Office
Working Group
PHILIPPINE PROCUREMENT PARADIGM

2 ASSESS PROCURE 3
Review feasibility/ market studies
Post/Advertise opportunity
Consolidate into Annual
Open and evaluate bids
Procurement Plan (APP)
Post-qualify
Decide procurement method
Award and enter into contract
Approve APP
Determine readiness

1 IDENTIFY IMPLEMENT 4
Cost-benefit analysis Oversee implementation
Feasibility study Inspect and accept deliveries
Release payment
Market study
PPMP

NEEDS SATISFACTION
DELAYS AND FAILURES OF BIDDING

*Primary cause of delays and failure of bidding based on Agency Procurement Compliance
and Performance Indicators (APCPI) Confirmation Result of Participating Agencies.
CHALLENGES IN PROCUREMENT

2 ASSESS PROCURE 3
50% of Review feasibility/ market studies
Post/Advertise opportunity
Consolidate into Annual
Failure of Procurement Plan (APP)
Open and evaluate bids
bidding is Post-qualify
Decide procurement method
Award and enter into contract
attributed to Approve APP
POOR Determine readiness

PLANNING
1 IDENTIFY IMPLEMENT 4
Cost-benefit analysis Oversee implementation
Inspect and accept deliveries
Feasibility study
Release payment
Market study

PPMP

NEEDS SATISFACTION
WHAT IS PROCUREMENT PLANNING?

Process of determining the following:

What to buy? How many do

?
What are the
details?
you need?
R.A. 9184

When you How to

What is the need it? source it?
cost?
IT AIMS TO MANAGE THE EXPECTATIONS FOR FULFILLMENT
OF PROCUREMENT NEEDS.
PROCUREMENT PLANNING

Objective

For the Procuring Entity to schedule its procurement activities in advance,

consistent with its approved budget and its target date of implementation.
Ensures that the overall goal of a particular project will be achieved effectively
and efficiently.
Precludes occasions for unnecessary government purchases and
circumventions of the prescribed procurement procedures
Advance Deliveries
Suki System
Unwarranted resort to alternative methods procurement
Value for money
It must be done within
Fit for purpose budgetary context.
CHALLENGES IN PROCUREMENT
PLANNING

1 2 3
Proposed
projects set in Lack or limited
Lack of or the Project training or
insufficient Procurement experience in
proper market Management crafting TORs
study and Plan (PPMP) and/ or
cost-benefit not ‘planned’ technical
analysis oftentimes specifications
thought of after
the Budget is
enacted
EFFECTS IN PROCUREMENT

Failure of Bidding Delay in Procurement Ineffective Procurement

Failure D
of
IL E
F ABidding
Delay in
Procurement

11
PROCUREMENT PLANNING
AND BUDGET LINKAGE
PROCUREMENT PLANNING
AND BUDGET LINKAGE

Section 7.1 of IRR

All procurement shall be within the approved budget of the Procuring Entity
(PE) and should be meticulously and judiciously planned by the PE.
Consistent with government fiscal discipline measures

Considered crucial to the efficient discharge of government functions

• Required for the day-to-day operations; and

• In pursuit of the principal mandate of the procuring entity concerned.

The APP shall include provisions for foreseeable emergencies based on the
historical records.
PROCUREMENT PLANNING
AND BUDGET LINKAGE

Section 7.2 of IRR

No procurement shall be undertaken unless it is accordance with the

approved Annual Procurement Plan (APP)

Approval of the APP by the Head of Procuring Entity (HoPE) or designated

second-ranking official is mandatory
PROCUREMENT PLANNING TIMELINE

Procurement Identification Procurement Assessment

of prior fiscal year of prior fiscal year of prior fiscal year of prior fiscal year of prior fiscal year of current fiscal year

•Cost-benefit •Project •Consolidation •Approval of •Revision of •Revision of

analysis Procurement of PPMPs to Indicative PPMP & PPMP &
•Feasibility Management Indicative APP and Indicative Indicative
study Plan (PPMP) Annual budget APP based APP based
•Market study Procurement proposal on NEP on GAA
Plan (APP)

End-User Representative/Unit Bac & Secretariat Hope/Approving Bac & Secretariat

Authority
PROCUREMENT PLANNING TIMELINE
PROJECT PROCUREMENT
MANAGEMENT PLAN
(PPMP)
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

Each end-user unit shall prepare the PPMP during the budget preparation to support the cost
estimates in the budget proposal.

The end-user or implementing units shall be responsible for the preparation of all documents
necessary for the procurement activity, including but shall not be limited to, the technical
specifications, scope of work, or terms of reference
PPMP

Contracting Type and

Extent/Size
Arrangement Objective

PPMP

Procurement Time Estimated

Methods Schedule Budget
PREPARATION OF PPMP

During Budget Preparation/Budget Call

PPMP SAMPLE FORMAT

Downloadable at https://www.gppb.gov.ph/downloadables.php
IDENTIFYING THE NEED

Suggested basis for identifying needs:

1. Core functions of the end-user unit in the organization, i.e

Accounting, Legal etc.

2. Historical data/Foreseen contingencies;

3. Identified purpose/goals/MFOs;

4. P.E’s Strategic Plans;

5. Current supply inventory;

6. Other maintenance and operating needs.

APPROVED BUDGET FOR THE CONTRACT
(ABC)
The ABC reflected in the APP and PPMP shall be consistent with
the appropriations for the project authorized in the GAA, continuing
and automatic appropriations, the corporate budget, and the
Appropriations Ordinance, as the case may be.

For multi-year contracts, for which a Multi-Year Contracting Authority

(MYCA) formerly MYOA or an equivalent document is required, the ABC
shall be that incorporated in the project cost reflected in the MYOA or
equivalent document

For Foreign-funded Procurement, the ABC refers to the cost estimate

prepared by the PE and approved by the foreign government/foreign or
international financing institution as specified in the Treaty or
International or Executive Agreement
DETERMINATION OF ABC

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.
TOOLS IN PROJECT COSTING &
DETERMINATION OF ABC
ELEMENTS OF LIFE CYCLE COSTING
SPECIFICATIONS WRITING
SPECIFICATIONS WRITING
GREEN SPECIFICATIONS
METHOD OF PROCUREMENT

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
PURCHASE REQUEST

Purchase Request
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.
ANNUAL PROCUREMENT
PLAN (APP)
APP

The entirety of the procurement activities that will be undertaken

by the procuring Entity within the calendar year using the
prescribed format issued 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 Emergency or

Schedule of Activities
perspective Contingency Fund

Should be maintained and updated regularly

APP

No procurement shall be undertaken unless in accordance with the

approved APP

All procurement should be meticulously and judiciously planned by

procuring entity

APP should be maintained and updated regularly

APP

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 months or as often as necessary.
The end-user or implementing units shall be responsible for the changes
to the PPMPs, while the BAC Secretariat shall be responsible for the
consolidation of these PPMPs into an APP.
PREPARATION OF APP
PREPARATION OF APP
GAA, Corporate Budget or Appropriation
Ordinance Becomes Final
TIPS IN CONSOLIDATING PPMPs INTO APP

Sort by Type of
Procurement

Check for Items which

can be merged
Goods Infrastructure Consulting
i.e: IT Equipment, Design and Build
projects, Office Furniture, etc
Common Use Supplies

CSE NON-CSE
Mode of Procurement

Sources of Funds
1 2 3 4 5 6 7 8

Per GPPB Circular 07-2015

Column 1: Code (UACS/PAP) Column 5:Schedule of Each Stage of the Procurement Activity
Column 2: Procurement Program/Project Column 6:Source of Funds
Column 3: PMO/End-user Column 7:Estimated Budget
Column 4: Mode of Procurement Column 8:Remarks (Brief Description of the P/A/P)

Downloadable at https://www.gppb.gov.ph/downloadables.php
PREPARATION OF SUPPLEMENTAL APP
NOTES IN FILLING OUT APP

PE’s internal numbering system or use the Unified Account Codes (UACS)
may be used as PAP Codes. Please refer to Joint Circular No. 2013-1
COA-DBM-DOF-Unified Accounts Code Structure.

For the PMO/End-user column, multiple end-user units are allowed only if the
procurement activity was consolidated by the BAC to procure requirements
of the end-user units.

Drop down lists are available for Mode of Procurement and Source of Funds
for ease of use.
NOTES IN FILLING OUT APP

Specific schedule for Ads/Post of IB/REI (similar to RFQ), Sub/Open of

Bids, NOA and/or Contract Signing are automatically identified thru MS
Excel formula. Specific period (dates, month, quarter) for each
procurement activity should be indicated.

Total ABC column cannot be edited but is automatically computed by

filling out the MOOE or CO columns. Ensure that amounts indicated are
aligned with budget documents.

For MYCA projects, ABC shall be the full amount stated in the MYCA
with remarks on the amount to be disbursed on the particular FY.
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
APP-CSE
5 RIGHTS IN PUBLIC PROCUREMENT

Value for Money

Source

Time/
Quantity
Delivery

PROCUREMENT

Price Quality
EARLY PROCUREMENT
REGIME
EARLY PROCUREMENT ACTIVITIES
GPPB Resolution No. 14-2019
WHY CONDUCT EPA?
SCOPE AND APPLICATION

All types of procurement for goods, infrastructure projects and consulting

services.

National
Government

✔ General
Appropriations Act
Government ✔ Appropriations
State Financial ordinance
Universities Institutions ✔ Corporate Budget
✔ Loan Agreement
(Foreign-Assisted
Projects)

Government-owned Local
and/or Controlled Government
Corporations Units
SCOPE AND APPLICATION

A Procurement Project shall refer to a specific or identified procurement which shall

be described , detailed, and scheduled in the PPMP which shall be consolidated in
the APP.

EPA is applicable for Procurement Projects undertaken through :

✔ Competitive Bidding
✔ Alternative Methods of Procurement

Exception:
✔ Repeat Order
✔ Shopping
✔ Negotiated Procurement – Emergency Cases
✔ Negotiated Procurement – Take-Over of Contracts
✔ Negotiated Procurement – Small Value Procurement
PREPARATORY ACTIVITIES

All the appropriate preparatory activities shall be completed :

✔ Cost-Benefit Analysis
✔ Feasibility Studies
✔ Market Research
✔ For Civil Works: Detailed Engineering Designs, Regulatory
Clearances and Right of Way Acquisitions

APP must be approved by the Head of the Procuring Entity (HoPE) and must be
submitted to:

NGAs and GOCCs GOCCs under Governance LGUS

Commission for GOCCs
(GCG)
Department of Budget GCG Sanggunian
and Management
PREPARATORY ACTIVITIES

The indicative APP shall be posted on the agency’s Transparency Seal.

(DBM Circular Letter No. 2018-8 )

NOTE: The Certificate of Availability of Funds shall not be required prior to

the commencement of EPA. (GPPB Circular 05-2018, dated 18 May 2018)
Procurement Planning Processes/Requirements

The Certificate of Availability of Funds shall not be required.

(GPB Circular 05-2018)

The Bidding Documents and PhilGEPS posting shall expressly provide that the
procurement project is undertaken through EPA.
PREPARATORY ACTIVITIES

The Prospective Bidders shall be properly informed of the

following:

✔ Rules and procedure of EPA

✔ Fixed price rule
✔ Extension of the bid validity and security
✔ Validity of the eligibility requirements prior to the award of
contract
✔ Conditions of award
✔ Date of earliest delivery
IMPLEMENTING GUIDELINES
PROCUREMENT PROJECTS
o Nationally-funded
Procurement Projects
o Procurement Projects funded
by corporate and local funds
o Foreign-assisted Procurement
Projects
BASIS FOR COMMENCING THE CONDUCT OF EPA
• Submission of the NEP to Congress
(usually in July)
• No EPA may be conducted without:
- approved indicative APP
- MYCA, if multi-year
• From the time the proposed corporate or local
budget has been submitted to the approving
authority.
• From the approval of the NEDA Board as evidenced
by the official notice of approval issued by the NEDA
Secretariat; or
• Upon issuance of a document or instrument issued
by the foreign donor or financing institution explicitly
stating that a loan is to be made available to the
Philippines
IMPLEMENTING GUIDELINES

PROCUREMENT PROJECTS BASIS FOR COMMENCING THE CONDUCT OF EPA

o Projects that are included in

the budget of the Source
Agency but shall be released • The special provision in the NEP shall be the basis of
directly to the Recipient the recipient agency to conduct EPA
Agency pursuant to a special
provision in the NEP
o For Procurement Projects
• A Memorandum of Understanding (MOU) between
funded in the budget of the
the Source Agency and the Recipient Agency shall
Source Agency but to be
be the basis of the Recipient Agency for the conduct
implemented by the Recipient
of EPA.
Agency
o For Procurement Projects
funded by forthcoming • The written approval from the CO identifying and
sub-allotments from the authorizing the Implementing Unit to conduct an EPA
Central Office (CO) or shall be the basis for the undertaking said activity.
Centrally-Managed Items
BID VALIDITY

One Hundred Twenty (120) Calendar days

Extension:
✔ The PE may request the bidders to extend the validity of their bid
securities, prior to the expiration, if the funding source has yet to
be approved and made effective
✔ If the bidder refuses to extend, the PE shall reject the bid
submitted by the said bidder

Change in the Form:

✔ It is allowed if this is made prior to the expiration
PROCUREMENT TIMELINE

The conduct of EPA from posting to recommendation

of the BAC to the HoPE as to the award of the
contract shall observe the mandatory timelines set forth
in the 2016 Revised Implementing Rules and Regulations
of Republic Act No. 9184, including the period for
re-bidding which shall be within fifteen (15) days after
each declaration of failure of bidding, which may be
extended up to thirty (30) days upon approval of the
HoPE
REVISION OF THE INDICATIVE APP BEFORE
AWARD OF CONTRACT
As soon as the funding source for the Procurement Project has been
approved, regardless of the stage

Upon approval of the APP and the commencement of the running of the period
to award the contract and complete the procurement process, the HoPE may
approve or disapprove the recommendation of the BAC:

Approval Disapproval
HoPE shall issue the Notice of Award HoPE shall notify BAC and the bidder
to the Lowest calculated Responsive in writing of the decision and grounds
Bid or Highest Rated Responsive Bid
and thereafter sign the contract

The final approved APP shall be submitted to the GPPB on or before the end of
January of the budget year, and shall be posted in accordance with Executive
Order No. 662. series of 2007, as amended.
AWARD OF CONTRACT

To Award

Rule 1:
Notwithstanding the mandatory procurement timeline provided in Section 37
of RA No. 9184, Procurement Projects undertaken through EPA may be
awarded upon approval and effectivity of the GAA, reenacted budget,
appropriations ordinance, corporate budget or loan agreement, as the case
may be.

Example: NEP ABC LCRB GAA

1 Million 1 Million 1 Million 1 Million

However, in the case of a reenacted budget, the PE may only award the contract
for Recurring Procurement Projects and not for new Procurement Projects.
AWARD OF CONTRACT

To Award

Rule 2:
If the amount authorized for a Procurement Project has been reduced, the
PE may still make an award if the contract price to be awarded is within the
amount authorized in the GAA, reenacted budget, appropriations ordinance,
corporate budget, or loan agreement regardless of the posted Approved
Budget for the Contract (ABC).

Example: NEP ABC LCRB GAA

1.2 Million 1.2 Million 1 Million 1 Million
AWARD OF CONTRACT

Not to Award

Rule 1:
If the amount therefor has been withdrawn or in the event the amount
authorized in the GAA, reenacted budget, appropriations ordinance, corporate
budget, or loan agreement is lower than the amount of contract to be awarded.

Example 1 (Withdrawn): NEP ABC LCRB GAA

1.5 Million 1.5 Million 1.3 Million 0

Example 2 (Below the contract to be awarded)

NEP ABC LCRB GAA

1 Million 1 Million 900 Thousand 800 Thousand
AWARD OF CONTRACT

Not to Award

Rule 2:
In all instances, the HoPE has the authority to exercise the reservation clause
under Section 41 of RA No. 9184, which grants the HoPE the right not to award
the contract if, for any justifiable and reasonable ground, the award of the contract
will not redound to the benefit of the government.

Rule 3:
Notwithstanding the approval and effectivity of the GAA, reenacted budget,
appropriations ordinance, corporate budget or loan agreement, as the case may
be, PEs shall not award contracts for Procurement Projects requiring Special
Allotment Release Order or Sub-Allotment Release Order until the same has
been issued, secured or released.
TOLLING OF PERIODS

Pending approval and effectivity of the GAA, corporate budget

or appropriations ordinance, or the loan agreement in the case
of FAPs, the following periods shall be tolled or suspended:

✔ The fifteen-day (15 day) period for the HoPE to approve the
Resolution of the BAC and to issue the Notice of Award provided
under Section 37

✔ The three-month (3-month) period within which to complete the

procurement process, from the opening of bids up to the award of
contract, under Section 38 of RA No. 9184.
TOLLING OF PERIODS

The period of time for the award of contract and termination of

the procurement process, as the case may be, shall begin to
run again upon the approval and effectivity of the GAA,
reenacted budget, appropriations ordinance, corporate budget
or loan agreement, as the case may be.

It shall NOT commence anew but rather, grants the HoPE the
balance of the remaining period to award the contract or
terminate the procurement process.
TOLLING OF PERIODS
Sample Timeline:
17 days

Tolled
73 days Period
15 days

30 Jul 11 Oct 12 Oct 1 Jan 16 Jan 18 Jan

Approval To
BAC and HoPE to complete
Bid
Recommendation Effectivity Award the
Opening
of GAA Contract 3-month
process
TOLLING OF PERIODS
Let’s say:
Bid Opening BAC Start of Tolled
Recommendation Period
30 July 11 October 12 October

✔ The HoPE has seventeen (17) days to complete the procurement process from
the approval and effectivity of the funding source. This is the period remaining
from the 3-month period to complete the procurement process, i.e., 90 days less
23 days (or the period covering July 30 to October 11).

✔ If the approval and effectivity of the GAA is 1 January, the 3-month period to
complete the procurement process and the 15-day period for the HoPE to
approve the contract shall run again and the HoPE:
To Award To Complete the Process
16 January 18 January
MONITORING

Procurement Monitoring Report

Awards made under EPA shall be reported under a column separate

from the regular procurement activities

Agency Procurement Compliance and Performance

Indicators

PE’s compliance shall be adjusted in consideration of the tolling

period
POSTING AND SUBMISSION
OF REPORTS
REPORTORIAL REQUIREMENTS TO GPPB
ELECTRONIC SUBMISSION OF REPORTS
GPPB Resolution No. 11-2020
Mandatory submission through electronic mail

Procurement Reports Procurement Certification on Posting of APP/

in Microsoft Excel Reports in PDF PMR signed by BAC Sec Head

Mandatory posting of the APPs and PMRs in the agency website and
discontinuance of posting the same in the GPPB website
Extension of deadline for submission for APP for 2020:
Report Frequency Deadline of Submission
Changes within the 1st
FY 2020 APP 30 September 2020
Semester
(Updated/
Changes within the 2nd
Supplemental) 31 March 2021
Semester
FY 2021 APP First Submission 31 March 2021
 Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph