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OUTLINE 1. Wha What is is pla plan nning ning?? 2. Natu Naturre of Plan Planni ning ng 3. Proc Procur urem emen entt Plan Planni ning ng 3.1 Importance of Planning 3.2 Preparing the PPMP 3.2.1 Identifying the need 3.2.2 Developing project requirements 3.2.3 Technical Technical Specifications 3.2.4 Costing (Determining the ABC) 3.2.5 Procurement Timelines 3.2.6 Procurement Methods 3.2.7 PPMP format 3.3 Consolidating PPMPs into APP 3.3.1 Techniques Techniques in consolidating items in the APP 3.4 Updating the PPMP PPMP and APP
4. Procurement Monitoring 2
OUTLINE 1. Wha What is is pla plan nning ning?? 2. Natu Naturre of Plan Planni ning ng 3. Proc Procur urem emen entt Plan Planni ning ng 3.1 Importance of Planning 3.2 Preparing the PPMP 3.2.1 Identifying the need 3.2.2 Developing project requirements 3.2.3 Technical Technical Specifications 3.2.4 Costing (Determining the ABC) 3.2.5 Procurement Timelines 3.2.6 Procurement Methods 3.2.7 PPMP format 3.3 Consolidating PPMPs into APP 3.3.1 Techniques Techniques in consolidating items in the APP 3.4 Updating the PPMP PPMP and APP
4. Procurement Monitoring 2
IRR Review and Revision Prim rimary ary Caus auses of Delay elayss and and Failu ailurre of Biddi idding ng**:
*Per 2011 and 2012 APCPI results
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Delays in Procurement*:
* Per 2014 FGD with 11 agencies.
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PHILIPPINE PROCUREMENT PARADIGM
Assess
• • •
• •
Identify
• • • •
Review studies Consolidate into APP Decide procurement method Approve APP Determine readiness
Cost-benefit analysis Feasibility study Market study PPMP
•
•
• •
•
•
•
Post/Advertise opportunity Open and evaluate bids Post-qualify Award and enter into contract
Oversee implementation Inspect and accept deliveries Release payment
Capacity Development Division
Procure
Implement
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PLANNING PLANNING - refers to predetermined course/s of action to achieve a desired end/goal.
Capacity Development Division
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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”
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PROCUREMENT PLANNING It
is the government’s fiduciary responsibility
− protect the taxpayers’ interests − safeguard the resources allotted to each department
Involves 2 levels: 1. Procuring entity’s over-all strategic plan 2. Project and/or operational plans
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WHY PROCUREMENT PLANNING
Procurement Planning ensures that the overall goal of a particular project will be effectively and efficiently achieved.
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WHY PROCUREMENT PLANNING
Precludes occasions for unnecessary government purchases and circumventions of the prescribed procurement procedures
− advance deliveries − suki system − unwarranted resort procurement
to
alternative
methods
However, it must be done within budgetary context
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SECTION 7.1 OF IRR
Within approved budget of procuring entity Judiciously done Consistent with government fiscal measures 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
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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
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ACTORS IN PROCUREMENT PLANNING
END USER
BUDGET OFFICE
BIDS AND AWARDS COMMITTEE (BAC) AND BAC SECRETARIAT
TECHNICAL WORKING GROUP (TWG)
APPROVING AUTHORITY/HoPE 14 14
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
Prepared by the end-user unit during the budget preparation to support the cost estimates in the budget proposal.
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PROJECT PROCUREMENT MANAGEMENT PLAN (PPMP) Contracting Arrangement
Estimated budget
Type and Objective
PPMP Time schedule
Extent/size
Procurement methods
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PPMP FORMAT
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IDENTIFYING THE NEED Suggested basis for identifying needs: 1. 2. 3. 4. 5. 6.
Core functions of the end-user unit in the organization, i.e Accounting, Legal etc. Historical data/Foreseen contingencies; Identified purpose/goals/MFOs; P.E’s Strategic Plans; Current supply inventory; Other maintenance and operating needs.
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TECHNICAL SPECIFICATIONS, SCOPE OF WORK, AND TERMS OF REFERENCE
Consult Stakeholders
In developing the project requirements and TS/SOW/TOR, the Procuring Entity may engage the services of technical experts, whether in-house or consultants, to ensure that the requirements and the TS/SOW/TOR are adequate to achieve the objectives of the particular procurement.
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TECHNICAL SPECIFICATIONS, SCOPE OF WORK, AND TERMS OF REFERENCE
Set clear Specifications: Generic and flexible Clear and unambiguous Reminder on Reference to Brand Names (Section 18) Updated, where technology is taken into account Fits the actual requirements of the PMO/End-user –
–
–
–
–
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APPROVED BUDGET FOR THE CONTRACT (ABC)
The ABC reflected in the APP or PPMP shall be consistent with the appropriations for the project authorized in the GAA.
For procurement short of award, based on budget levels under the proposed national budget (National Expenditure Program or NEP) submitted by the President to Congress.
End user to conduct market study 22
APPROVED BUDGET FOR THE CONTRACT (ABC)
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.
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DETERMINING THE ABC Cost Components which may be considered:
Cost or market price of the product or service itself;
Freight, insurance, taxes, and other incidental expenses (For goods only);
Cost of money, to account for government agencies usually buying on credit terms;
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DETERMINING THE ABC
Inflationary factor (For goods only);
Quantities, considering that buying in bulk usually means lower unit prices;
Supply of spare parts and/or maintenance services, if part of the contract package (For goods only);
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DETERMINING THE ABC
Cost for securing all types and forms of securities other than cash (e.g. premiums for surety bond, bank fees and other charges to be incurred by the bidder in obtaining bid, performance and warranty securities); and
Currency valuation adjustment for contracts with foreign component.
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DETERMINING THE ABC
Acqu Acquis isit itio ion n Cost Cost
Opera Operati tion on Cost Cost
Replac Replacement ement/R /Repa epair ir Cost
Disp Dispos osal al Cost Cost
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DETERMINING THE ABC
If the sum of the different cost components is lower than the appropriation for the procurement, then the ABC should be equal to the sum of the cost components.
If the resulting sum is higher than the appropriation, it is advisable to review the technical specifications and the computation of the ABC. In any case, the ABC should not not exc exceed eed the the appr approp opri ria atio tion.
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LIFE CYCLE COSTING
LCC LCC – Life Life Cycl Cycle e Cos Costing ting should consider all costs throughout the lifecycle – acquisition cost, utility costs (energy/water cons consum umpt ptio ion, n, main mainttenan enance ce), ), and and disp dispos osal al cost costs. s.
“Cost”
“Cradle
to Grave” vis-à-vis “Cradle “Cradle to Cradle”
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PROCUREMENT MILESTONES
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PROCUREMENT MILESTONES
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PROCUREMENT MILESTONES Factors to consider in identifying procurement timelines: 1. Budget rules, i.e. CSE – every quarter; 2. Nature of Procurement Projects, whether simple or complex 3. For shopping/small value procurement, give at least two weeks 4. Foreseen/Unforeseen Contingencies, i.e. frequent change in specifications, etc. 5. Availability in the market.
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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
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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.
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ANNUAL PROCUREMENT PLAN (APP)
Legal Basis: Section 7 of the IRR of RA 9184
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.
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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
No procurement shall be undertaken unless in accordance with APP
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ANNUAL PROCUREMENT PLAN (APP)
All procurement should be meticulously and judiciously planned by procuring entity
APP should be maintained and updated regularly
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ANNUAL PROCUREMENT PLAN (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 mos. or as often as necessary.
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PREPARATION OF APP Upon issuance of the budget call, the Procuring Entity (PE) shall prepare its indicative APP for the succeeding calendar year to support its proposed budget, taking into consideration the budget framework for that year in order to reflect its priorities and objectives for the budget period. (Section 7.3.1, RIIR)
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PREPARATION OF APP
Submit the BAC Secretariat for Submit to Budget Office consolidation for evaluation into an APP
Prepare Project Procurement Management Plan (PPMP)
Submit the APP and Budget Proposal to HOPE and oversight bodies
When GAA, Corporate Budget or Appropriation Ordinance becomes final, PPMPs will be finalized and submitted to BAC Secretariat for consolidation and approval of the HOPE.
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PPMP CONSOLIDATION
•
•
Checking of procurement methods
•
Recommendation of procurement methods by the BAC
Propose procurement methods (End-user)
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ANNUAL PROCUREMENT PLAN (APP)
Per GPPB Resolution No. 20-2015
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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)
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APP vis-a-vis APP-CSE
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
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APP-CSE
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TIPS IN CONSOLIDATING PPMPS 1.
Sort the procurement activities by type of procurement: goods, civil works or consulting.
2.
Check which can be merged into one procurement activity
i.e Civil works or consulting services are usually distinct entries in the APP, unless the PE finds merit in merging infrastructure project scopes (civil works) or deliverables (consultants).
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TIPS IN CONSOLIDATING PPMPS 3.
Goods procurement can be separated into three categories: common-use supplies (CSE) for the Procurement Service (PS), common-use supplies (non-PS), other goods procurement
4.
All CSE whether for procurement from PS or not shall be consolidated into an APP-CSE which shall be submitted to the Procurement Service
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TIPS IN CONSOLIDATING PPMPS 5.
For the APP, CSE shall be separated whether to be bought from the PS and CSE which shall be bought outside the PS
6.
All partitions shall again be separated into mode of procurement (public bidding or alternative methods)
7.
All entries can then be grouped by source of funds
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TIPS IN CONSOLIDATING PPMPS Sort by Type of Procurement
Goods
Infra
Consulting
Check for Items which can be merged i.e: IT Equipment, Design and Build projects, Office Furniture, etc
Common Use Supplies CSE
NON-CSE Mode of Procurement
Sources of Funds
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REVISIONS ON APP
Update PPMP/Supple mental PPMP
Consolidate PPMP to APP/Suppleme ntal APP
Approve Updated APP/Suppleme ntal APP
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5 RIGHTS IN PUBLIC PROCUREMENT Source
Value for Money Time/ Delivery
Quantity
Procurement
Price
Quality
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COA – GUIDE ON AUDIT OF PROCUREMENT (GAP) 3.2. Annual Procurement Plan (APP) – the requisite document that the agency must prepare to reflect the entire procurement activity (i.e., goods, services, civil works to be procured) that it plans to undertake within the calendar year.
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COA – GUIDE ON AUDIT OF PROCUREMENT (GAP) The APP contains the following information: 3.2.1. Name of the procurement program/project; 3.2.2. Project management office or end-user unit; 3.2.3. General description of the procurement; 3.2.4. Procurement method to be adopted; 3.2.5. Time schedule for each procurement activity; 3.2.6. Source of fund; and 3.2.7. Approved Budget for the Contract. 53
COA – GAP CHECKLIST 1. To verify if the procuring entity has an Annual Procurement Plan (APP) 2. To verify if the APP is approved by the HOPE or by a second-ranking official designated by the HOPE to act on his behalf
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COA – GAP CHECKLIST 3. To verify if the APP contains the following information: a.
b. c. d. e. f. g.
name of the procurement program/ project; project management office or end-user unit; general description of the procurement; procurement method to be adopted; time schedule for each procurement activity; source of fund; approved budget for the contract. 55
COA – GAP CHECKLIST 4. To verify if the APP is supported by PPMPs prepared by the respective end-user units 5. To verify if the items in the approved APP were included in the PPMPs 6. To verify if the APP matches the budget per GAA, corporate budget, appropriation ordinance, as the case may be
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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 57
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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.
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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. 62
MONITORING AND EVALUATION The
PMR shall cover all procurement activities specified in the APP, whether ongoing 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. 63
MONITORING AND EVALUATION The PMR shall be approved and submitted by the Head of the Procuring Entity (HOPE) the GPPB in printed and electronic format within 14 cd after the end of each semester. (Executive Orders 662, 662-A and 662-B, series of 2007)
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WHY MONITOR?
Compliance to R.A. 9184 and its IRR
Performance Efficiency Effectiveness –
–
Aid GPPB in crafting policies that address weaknesses and uphold strengths of the Philippine Procurement System
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PROCUREMENT MONITORING REPORT (PMR)
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MONITORING AND EVALUATION
Monitoring entails tracking of inputs, activities, outputs, and outcomes of the procurement activity
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.
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COA – GAP CHECKLIST 1.
To verify if the BAC: a. prepared a procurement monitoring report in the form prescribed by the GPPB; b. covering all procurement activities specified in the Annual Procurement Plan (APP), whether on-going and completed, from the holding of the pre-procurement conference to the issuance of the notice of award and the approval of the contract, including the standard and actual time for each major procurement activity;
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COA – GAP CHECKLIST c. submitted the monitoring report to the Head of the Procuring Entity (HOPE) for approval and submission to the GPPB in printed and electronic format within 14 days after the end of each semester
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COA – GAP CHECKLIST 2. To verify if the HOPE: a. approved the Procurement Monitoring Report and b. submitted it to the GPPB in printed and electronic format within 14 days after the end of each semester
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COA – GAP CHECKLIST 3. To verify if appropriate actions have been taken by the HOPE in case of instances of noncompliance committed by the BAC, BAC TWG, BAC Secretariat and/or bidders
4. To verify what actions have been taken by the GPPB in regard to instances of noncompliance
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SUBMISSION & POSTING REQUIREMENTS •
APP Submission to the GPPB on or before 30 January 2016 of the covered year (e.g. APP CY 2017 must be submitted to GPPB-TSO on or –
before 30 January 2017) –
•
Posting in the procuring entity's website of its APP following the form and format downloadable from the GPPB website
PMR Submission to the GPPB (Section 12.2 of IRR of RA 9184) and posting 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) –
•
GPPB Website 72
SUBMISSION & POSTING REQUIREMENTS •
APP-CSE –
•
APCPI (Agency Procurement Compliance and Performance Indicator) –
Submission to DBM-PS on or before 30 November prior to the covered year (e.g. APP-CSE for CY 2017 must be submitted on or before 30 November 2016)
Annual submission
Certificate of Compliance (COC) to PhilGEPS Posting
- Submitted in compliance with the PBB – Good Governance requirements - Annual submission
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