A father told his young son not to go

around the CORNER

Each time he did so, the father would

punish him and tell him not to go around
the CORNER

But the little boy kept on going in the

CORNER again
Finally after one such punishment, this
boy looked at his father with tear-filled
eyes and said, “what does ‘CORNER’
mean, daddy?
LESSON:
Some communication problems are
not the result of bad intent. It’s just
that people really don’t understand
 The Association of Government Internal Auditors, Inc

Objectives

1. Understand, apply and incorporate the

fundamentals of procurement planning

2. Identify the link between budget and

procurement
IT IS A PROCESS OF SELECTING PRODUCTS

& SERVICES THAT WILL PROVIDE
VALUE FOR MONEY
IT IS THE PROCESS OF

SELECTING PRODUCTS &
SERVICES FROM A SUPPLIER
WHO FITS BEST THE NEED

TWG
 
2 3

1 4

 Challenges of procurement
planning

1 lack or insufficient proper market study
and cost benefit analysis
50% of FAILURE OF
BIDDING IS
ATTRIBUTED TO
POOR PLANNING 
 Challenges of procurement
planning

2 proposed projects set in the PPMP not
planned oftentimes thought after the
budget is enacted or approved
Challenges of procurement
planning


3 lack or limited training or

experience in crafting TORs
and/or technical
specifications

 Question and Answer


Procurement Planning is the process
of identifying which project needs
can be best met by procuring products
& services within the project
organization

TRUE OR FALSE
 
PROCUREMENT
PLANNING AND
BUDGET LINKAGE
 
All procurement shall be within the
approved budget of the Procuring
Entity (PE) and should be
meticulously and judiciously
planned by the PE
 Hand Gestures Mean Different Things in
Different Countries (cont’d)

UNITED STATES

MALAYSIA

INDONESIA AND AUSTRALIA

EEXXHHI IBBI ITT11–9

11–9
(cont’d)
(cont’d)
© 2007 Prentice Hall Inc. All rights
reserved.
 COST ESTIMATE

DETERMINED USING EXPERIENCE AND
CALCULATING AND FORECASTING THE
FUTURE COST OF RESOURCES, METHODS AND
MANAGEMENT WITHIN A SCHEDULED TIME
FRAME
WHEN ARE COST ESTIMATES BEING PREPARED


 TOOLS IN COSTING

ANALOGOUS ESTIMATING TOP-DOWN OR HISTORICAL
COSTING

PARAMETRICS ESTIMATING HISTORICAL BID DATA IS USED,

USES UNIT COSTS
ANALYTICAL
BOTTOMS UP ESTIMATING WORK BREAKDOWN STRUCTURE
MOST ACCURATE & MOST
VERSATILE

LIFE CYCLE COSTING

 TOOLS IN COSTING

PARAMETRICS ESTIMATING

BASED ON ONE OR MORE

PROJECT BASED FACTORS

HISTORICAL BID DATA IS USED

 TOOLS IN COSTING

BOTTOMS UP ESTIMATING

ANALYTICAL

WORK BREAKDOWN STRUCTURE

MOST ACCURATE & MOST
VERSATILE
ELEMENTS OF LIFE CYCLE COSTING


DO THE COMPUTATION OF
UNIT COST EXERCISE


 TECHNIFICAL SPECIFICATION
- STATES THE NEEDS TO BE
SATISFIED

- DEFINES WHAT IT WISHES TO BUY

- DEFINES EXPECTATIONS

- ESTABLISHES THE STANDARDS

THAT AFFECT QUALITY AND
PERFORMANCE




EXERCISE



KNOWLEDGE CHECK:

Technical Specifications must be

prepared after posting or advertising.


True or False?

Lesson 1:

A sales rep, a clerk, and the manager are

walking to lunch when they find an antique
oil lamp. They rub it and a Genie comes
out.

The Genie says, "I'll give each of you just

one wish."
"Me first! Me first!" says the clerk. "I want to be in
the Bahamas , drive a speedboat.”

Puff! She's gone.

"Me next! Me next!" says the sales rep. "I want to
be in Hawaii, having a massage in the beach with
with love of my life."

Puff! He's gone.

"OK, your turn," the Genie says to the manager.

The manager says, "I want those two back in the

office after lunch."
Lesson of the story:

Always let your boss have the first

say.
 PPMP

It is a GUIDE DOCUMENT in procurement.

It is a TOOL allowing flexibility to optimize

the utilization of resources


 
PROJECT PROCUREMENT MANAGEMENT PLAN
END-USER/UNIT ____________________

GENERAL ESTIMATED SCHEDULE/MILESTONE OF ACTIVITIES

CODE QUANTITY PROCUREMENT
DESCRIPTION BUDGET METHOD Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

NOTE: Technical Specifications for each Item/Project being proposed shall be submitted as part of the PPMP

PREPARED BY: SUBMITTED BY:

____________________ _________________________

 

WHO SHALL
PREPARE?
_____________________

DOCUMENTS TO
PREPARE
_____________________
 Q&A

WHO MUST CONSIDER THE DIFFERENT
COST COMPONENTS IN DETERMINING THE
ABC

END USER
BAC
BUDGET OFFICE
TWG
ALL OF THE ABOVE
 
WHO SHALL
PREPARE?
- END USER

DOCUMENTS TO
PREPARE
- PPMP
- TECHNICALSPECIFICATIONS
- SCOPE OF WORK
- TERMS OF REFERENCE
PREPARATION OF
PPMP


 
REALIGNMENT OF PS
 
APP





 QUESTION AND ANSWER

 What is an APP?
APP is the document that consolidates
the various _______submitted by the
various PE’s end-user units/PMOs.
ANNUAL PROCUREMENT PLAN (APP)

 What is an APP?
APP is the document that consolidates
the various PPMPs submitted by the
various PE’s end-user units/PMOs.
 ANNUAL PROCUREMENT PLAN (APP)

 Who prepares the APP?

APP is prepared by the _____________
 ANNUAL PROCUREMENT PLAN (APP)

 Who prepares the APP?

APP is prepared by the BAC, through the
BAC Secretariat
ANNUAL PROCUREMENT PLAN (APP)

 Who approves the APP?

APP should be approved by the
_____________________
ANNUAL PROCUREMENT PLAN (APP)

 Who approves the APP?

APP should be approved by the HOPE
or its duly authorized 2nd ranking
official
UPDATING OF PPMP
ACTIVITY
 JANITORIAL SERVICES – Approved Budget for the Contract (ABC)


 COMPUTATION :
Daily Minimum Wage P 481.00
Days worked per week 6 days (8 hours)
Number of days per year 325.9
Number of Janitors 24
A. Total Amt. to Janitor & Govt. P 376,628.92
B. Supplies Provision per month P 45,958.30
C. Agency Fee = 10% (Contract Cost) P ________________
D. 12%VAT = [( A + B + C ) 12% ] P ________________
E. Contract Cost per Month P ________________
F. ABC = E x 12 P _________________
 ABC Computation

 VAT
 [(A + B + C) 12%]
 + 0.12 A + 0.12 B + 0.12(0.10) E

12% of A 12% of B 12% of C

A. Total Amt. to Janitor & Govt. P 376,628.92

B. Supplies Provision per month P 45,958.30

C. Agency Fee = 10% (Contract Cost) P

________________
 CONTRACT COST

E =A+B+C+D

 =A+B+C+D

 = A + B + C + [(A + B + C) 12%]

 = A + B + 0.1 (E) + 0.12 A + 0.12 B + 0.12(0.1) E

 = 1.12A + 1.12B + 0.1E + 0.012E

 = 1.12A + 1.12B + 0.112E

 E – 0.112E = 1.12A + 1.12B

 0.888 E = 1.12 (A+B)

 E = 1.12 (A+B)/ 0.888

 CONTRACT COST

 E = 1.12 (A+B)/ 0.888

 SUBSTITUTING THE VALUES, GIVES :


 E = 1.12 ( P 376,628.92 + P 45,958.30 ) / 0.888
 E = Contract Cost per Month = P 532,992.89

 F = APPROVED BUDGET FOR THE CONTRCT = ABC = E x 12

 = P 532,992.89 x 12
 ABC = P 6,395,914.70
SPECIFIC INSTRUCTIONS

5.1 All Purchase Requisition (PR) should be filed/process in
accordance with the approved Project Procurement Management
Plan (PPMP) and annual Procurement Plan (APP), as a rule of law,
no PR will be processed which item/s for procurement is not
included in the APP.
 5.2 In requesting for Supplemental Budget, the operating unit


should identify the Funding Sources which may come from:
 a. Surplus (if any) – you may consult with the AFMD Manager
 b. New Source of funds – you may consult with the AFMD Dept.
Manager
 c. Or the end user have identified from his/her own
budget items for realignment to absorb the cause of the
Supplemental Budget as the case maybe.

 5.3 All realignments shall be in accordance with the Rules on

realignment as defined in the annual General Appropriations Act.

 
GAA
GENERAL PROVISION
Fiscal year 2023
 Sec. 80. Rules Modification in the Allotment. As a general
rule, departments bureaus and offices of the National
Government, including Constitutional Offices enjoying fiscal
autonomy and SUCs shall spend what is programmed in the

respective appropriations in this act, In exceptional
circumstances, agencies may modify the allotment issued
within an activity of project subject to approval of the
following ensued by the timely submission of reports by all
offices concerned:
 (a) The heads of Agencies or their duly authorized
representatives who shall be the official next-in-rank, for the
following:
 (i) change in the details of an activity or project without
changing its nature and within the same operating unit; and
 (ii) change in the object of expenditure (Travelling Expense
or Investment Outlays) within an allotment class (MOOE or
Capital outlays);
 (b) The DBM, in the following Modifications:
(i) from one allotment class to another;

(ii) from one operating unit to another;
(iii) within a special purpose funds; and

 (c) The President of the Philippines, for the payment of

intelligence funds within the Executive branch.

 All Modification in the allotment shall not entail any

increase in the total amount appropriated for an activity
of project,
Zamboanga City Water District

Preparation of Performance

Commitment, Annual Budget and
Performance Reports
Budget and Plan Preparation All units July 1-31

Budget submission to BCMD


All units 1st week of August

Budget consolidation BCMD 2nd and 3rd weeks of August

Budget/ Plan Deliberations All units / BCMD 4th week of August to 1st week
of September

Ceiling Determination / AFMD 2nd week of September

Budget Ceiling Distribution (as
needed)
Budget / Plan Revision All Units 3rd to 4th week of September
Budget / Plan Deliberations
(revision and resubmission)

All Units 1st to 2nd weeks of October

Budget / Plan Consolidation Budget and Cash Management 3rd week of October
and Finalization Division
 Submission to the OGM
Budget Deliberation and
Adoption
Budget Submission and
Presentation to the Board of
Directors
Submission of all PPMPs to
BAC Secretariat
Submission of G/DPCR to
CorPlan-PMD
Distribution of approved COB
to: Board of Directors, OGM,
OG, TSG,FG,AG
Submission of approved COB
to COA and DBM

Budget and Cash Management
Division
Executive committee
4th week of October
1st week of November
Budget and Cash Management 2nd week of November
Division
3rd week of November
4th week of November
Budget and Cash Management 4th week of November
Division
Budget and Cash Management Not later than last business
Division day of every December






