PROCUREMENT PLANNING &

MONITORING

1
PLANNING 101
 OUTLINE
1. What is planning?
2. Nature of Planning
3. Procurement Planning
3.1 Importance of Planning
3.2 Preparing the PPMP
3.3 Preparing the APP
4. Procurement Monitoring
4.1 Importance of Monitoring
4.2 Preparing the PMR

3
PROCUREMENT PLANNING

Preparation of PPMP and APP

4
PLANNING
PLANNING

Refers to
predetermined
course/s of action
to achieve a
desired end/goal.

Capacity Development Division 5

PROCUREMENT 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”
6
 WHY PROCUREMENT PLANNING
 Procurement Planning ensures that the overall goal
of a particular project will be effectively and efficiently
achieved.
 Precludes occasions for unnecessary government
purchases and circumventions of the prescribed
procurement procedures
−advance deliveries
−suki system
−unwarranted resort to alternative methods
procurement
 However, it must be done within budgetary context
7
 SECTION 7.1 OF IRR
Procurement Planning and Budgeting Linkage
 Within approved budget of procuring entity
 Consistent with government fiscal measures
 Meticulously and judiciously done
 Considered crucial to the efficient discharge of
governmental functions
o Required for the day-to-day operations
o In pursuit of the principal mandate of the
procuring entity concerned
 SECTION 7.2 OF IRR

• No procurement unless in accordance with

the Annual Procurement Plan (APP)

• Approval of Head of Procuring Entity (HOPE) or

designated second-ranking official

9
 ACTORS IN PROCUREMENT
PLANNING

END USER BUDGET TECHNICAL WORKING

OFFICER GROUP (TWG)

BIDS AND AWARDS COMMITTEE

(BAC) & BAC SECRETARIAT APPROVING
AUTHORITY/HoPE
10
Procurement Planning Process

APP
Annual
Procurement
Plan

PPMP
Project Procurement
Management Plan

Capacity Development Division

 PROJECT PROCUREMENT MANAGEMENT
PLAN (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
12
 PROJECT PROCUREMENT MANAGEMENT
PLAN (PPMP)

 Prepared by the end-user unit 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
13
 PROJECT PROCUREMENT
MANAGEMENT PLAN (PPMP)

Contracting Arrangement

Procurement
Type
Estimated
Time
Extent/size
andschedule
Objective
budget
methods

PPMP

14
 PPMP SAMPLE FORMAT
PROJECT PROCUREMENT MANAGEMENT PLAN (PPMP)
END-USER/UNIT: _______________________

GENERAL QUANTITY/ ESTIMATED MODE OF SCHEDULE/MILESTONE OF ACTIVITIES

CODE
DESCRIPTION SIZE BUDGET PROCUREMENT J F M A M J J A S O N D

NOTE: Technical Specifications for each Item/Project being proposed

shall be submitted as part of the PPMP
Prepared By: Submitted By:
________________________ ____________________________
Head of End-user Unit

Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html
15
 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. Procuring Entity’s Strategic Plans;
5. Current supply inventory;
6. Other maintenance and operating needs.

16
 TECHNICAL SPECIFICATIONS, SCOPE OF
WORK, AND TERMS OF REFERENCE

• Consult Stakeholders
• Engage Technical Experts
• Set clear Specifications
 Generic and Flexible
 Clear and unambiguous
 Reminder on Reference to Brand Names (Sec. 18)
 Updated, where technology is taken into
account
 Fits actual requirements of the PMO/End-user

17
 Technical Specifications (Sample)
 Functional Description
– a pen is expected to write 1.5 km of straight,
continuous lines
 Performance Description
– should do so continuously and smoothly, without
skipping, and with the color of the ink being
consistent
 Environmental Interface
– on pad paper or bond paper, but not necessarily on
wood or on a white board
 Design
– Ballpoint, gel-tip, sign pen, technical pen, etc.
Capacity Development Division
 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.

19
 APPROVED BUDGET FOR THE
CONTRACT (ABC)
 For multi-year contracts, for which a Multi-Year
Obligational Authority (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
20
 APPROVED BUDGET FOR THE
CONTRACT (ABC)
Factors in determining the 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.

21
PROCUREMENT MILESTONES

22
PROCUREMENT MILESTONES

23
PROCUREMENT MILESTONES
Factors to consider in identifying procurement
timelines:
• Budget rules, i.e. CSE – 2 month-requirement;
• Nature of Procurement Projects, whether
simple or complex
• For shopping/small value procurement, give
at least two weeks
• Foreseen/Unforeseen Contingencies, i.e.
frequent change in specifications, etc.
• Availability in the market.
24
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
25
 PPMP vs PR
 Purchase Request (P.R.) – 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.

26
Procurement Planning Process

APP
Annual
Procurement
Plan

PPMP
Project Procurement
Management Plan

Capacity Development Division

 ANNUAL PROCUREMENT PLAN (APP)

 Refers to the entirety of the procurement

activities that will be undertaken by the
procuring Entity within the calendar year
using the prescribed format required by the
GPPB.

 Document that consolidates the various

PPMPs submitted by the various end-user
units or the PMO within the PE.
 Approved by the HOPE.

28
 ANNUAL PROCUREMENT PLAN (APP)

 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 perspective
 Emergency or Contingency Fund
 Schedule of Activities

 In the consolidation of PPMPs, the BAC may

adopt a strategy where similar items of
procurement are packaged into one
procurement undertaking.
29
TIPS IN CONSOLIDATING PPMPS

30
APP Format

1 2 3 4 6 8
5 7

Per GPPB Circular 07-2015

• Column 1 - Code (UACS/PAP)
• Column 2 - Procurement Program/Project
• Column 3 – PMO/End-user
• Column 4 – Mode of Procurement
• Column 5 – Schedule of Each Stage of the Procurement Activity
• Column 6 - Source of Funds
• Column 7 - Estimated Budget
• Column 8 - Remarks (Brief Description of the P/A/P)
Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html
31
 Notes to Remember 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.

32
 Notes to Remember 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 MYOA projects, ABC shall be the full amount
stated in the MYOA with remarks on the amount to be
disbursed on the particular FY.

33
 PREPARATION OF PPMP to APP
During Budget Preparation/Budget Call
HOPE/Approving
Body
BAC &
Secretariat

Budget Submit Indicative

Office Consolidation of APP and budget
PPMPs to proposal to
Indicative APP HOPE/oversight
Submit to by BAC Sec and
End-User Budget recommendation
body for
approval
Unit Office for by BAC of
evaluation modality
Prepare
Project
Procurement
Management
Plan (PPMP)
34
 PREPARATION OF APP

GAA, Corporate Budget or Appropriation

Ordinance Becomes Final
HOPE/Approving
BAC & Body
Secretariat
End-User
Unit Approval
Consolidation of of final
Budget PPMPs to APP by APP by
BAC Sec and HOPE/
Office Finalize Project
recommendation oversight
Procurement by BAC of modality
Management body
Provide comments Plans (PPMPs)
on Indicative
PPMPs to end-
users
35
 ANNUAL PROCUREMENT PLAN (APP)
 Shall include provisions for foreseeable
emergencies based on historical records.

 Should be maintained and updated regularly

 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
39
 REVISIONS ON APP
Update/
End-User Supplement
PPMP

Consolidate PPMP to
BAC & BAC Sec Updated/ Supplemental APP

Approve Updated/
HOPE Supplemental APP

40
 ANNUAL PROCUREMENT PLAN (APP)
Early Procurement (Procurement Short of Award)
 To facilitate the immediate implementation of procurement,
even pending approval of the GAA, corporate budget or
appropriations ordinance, as the case may be, the PE may
undertake the procurement activities short of award
 For a contract with a period not exceeding one (1) year,
the ABC shall be based on the amount in the approved
indicative APP as included in the proposed national budget
(NEP) submitted by the President to Congress; on budget
levels as proposed to the governing board for GOCCs
 No award of contract shall be made until the GAA or
corporate budget or appropriation ordinance has been
approved
41
 ANNUAL PROCUREMENT PLAN (APP)
Early Procurement (Procurement Short of Award)
DBM Circular Letter No. 2018-8, July 30, 2018
(Prescribing Guidelines on the Conduct of Early Procurement for
FY 2019 NEP)
AO 25 IATF MC 2018-1 (Guidelines on the Grant of FY
2018 PBB
– Agency should ensure that at least 50% of the
volume of number of the planned procurement for
FY 2019 should undergo Early Procurement, after
strategizing those activities and projects it needs to
implement in the first semester and those
procurement activities it deems difficult or risky
– Each agency shall submit a Certification of
Compliance to the GPPB
42
 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

43
APP-CSE

44
 OUTSOURCING OF
PROCUREMENT TASKS (Sec. 7.3.3)
For PE’s with NO proficiency or capability to
undertake a particular procurement:
1. Request other GoP agencies to undertake
procurement through a Memorandum of
Agreement
2. Engage private procurement agents to
directly undertake procurement
3. Recruit or engage consultants to assist
them directly and/or train staff in the
management of procurement function
45
 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

46
PROCUREMENT MONITORING
Preparation of PMR

47
 WHAT IS MONITORING?

Defined as:

 Tracking of inputs, activities, outputs, and

outcomes of the procurement activity; and

 Tracking results of current operations on a

regular basis.

48
 WHY MONITOR?
 Checks compliance to R.A. 9184 and its IRR
 Assesses performance as to:
 Efficiency
 Effectiveness

 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.
 Aids GPPB in crafting policies that address weaknesses
and uphold strengths of the Philippine Procurement
System
49
MONITORING AND EVALUATION

 It is the BAC who shall be responsible for

ensuring that the procuring entity abides by
the standards set forth under R.A. 9184 and
its IRR.

 BAC is required to prepare a PROCUREMENT

MONITORING REPORT (PMR) in the form
prescribed by the GPPB.

50
 PROCUREMENT MONITORING REPORT
(PMR)
 Contents: all procurement activities specified
in APP
 ongoing and completed
 from the holding of pre-procurement
conference to issuance of Notice of Award
and approval of contract
 including the standard and actual time for
each major procurement activity

 Shall be approved and submitted by the HOPE

to the GPPB in printed and electronic format
within 14 c.d. after the end of each semester
51
 PROCUREMENT MONITORING REPORT (PMR)

PMR Format (Per GPPB Resolution No. 08-2017)

ANNEX B
(Name of Agency) Procurement Monitoring Report as of month/day/year
Code Procurement PMO/ Mode of Actual Procurem ent Activity Source of ABC (PhP) Contract Cost (PhP) List of Invited Date of Receipt of Invitation Remarks
(UACS/PA Program/Project End-User Procurement Funds Observers (Explaining changes from
Pre-Proc Ads/Post of Pre-bid Conf Eligibility Sub/Open of Bid Evaluation Post Qual Notice of Contract Notice to Delivery/ Inspection & Total MOOE CO To tal MOOE CO Pre-bid Eligibility Sub/Open of Bid Post Qual Delivery/
P) the APP)
Conference IB Check Bids Award Signing Proceed Com pletion Acceptance Conf Check Bids Evaluation Completion/
Acceptance
(If applicable)

COMPLETED PROCUREMENT ACTIVITIES

0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0

Total Alloted Budget of Procurement Activities

Total Contract Price of Procurement Actitvites Conducted
Total Savings (Total Alloted Budget - Total Contract Price)

0N-GOING PROCUREMENT ACTIVITIES

Total Alloted Budget of On-going Procurement Activities

Prepared by: Recommended for Approval by: APPROVED:

BAC Secretariat BAC Chairperson Head of the Procuring Entity

Downloadable at http://www.gppb.gov.ph/downloadables/SampleForms.html
52
 SUBMISSION & POSTING
REQUIREMENTS
• APP
– Submitted to the GPPB on or before the
end of January of the budget year (AO
222) and posted in the procuring entity's
website of its APP (Section 1.1 of the IRR
of EO 662), following the form and format
downloadable from the GPPB website
– Changes in the APP, if any, for the budget
year shall be submitted to the GPPB in
July of the current budget year, and in
January of the following budget year
53
 SUBMISSION & POSTING
REQUIREMENTS

• PMR
– Submitted to the GPPB within 14 c.d. after
the end of each semester (Section 12.2 of
IRR of RA 9184); and

– posted 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)
54
 SUBMISSION & POSTING
REQUIREMENTS

• APP and PMR submission to GPPB-TSO

email to
app@gppb.gov.ph

pmr@gppb.gov.ph
Note: For APPs and PMRs, please ensure that the electronic copies
submitted are approved and signed by the Head of Procuring Entity.

55
 SUBMISSION & POSTING
REQUIREMENTS

• APP-CSE to Procurement Service

email to
National Government Agencies
(central and regional offices)
ps.app.nga@gmail.com
State Universities and Colleges
(main and other campuses)
ps.app.suc@gmail.com
GOCCs
(central and regional offices)
ps.app.gocc@gmail.com
Primary and secondary schools ps.app.deped@gmail.com
Local Government Units ps.app.lgu@gmail.com
56
57
 THANK YOU!!
Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph

58