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OUTLINE
1. Barangay BAC Composition

2. Procurement Planning
2.1 Importance of Planning
2.2 Preparing the PPMP
2.3 Preparing the APP

3. 2016 Revised IRR

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BAC COMPOSITION

BARANGAYS
Sec. 11.2.3.b.I, IRR, R.A. No. 9184

1. The BAC shall be

composed of at least five
(5), but not more than
seven (7) member of the
Sangguniang Barangay,
except the Punong
Barangay;
Capacity Development Division 4
BAC COMPOSITION

BARANGAYS
Sec. 11.2.3.b.II, IRR, R.A. No. 9184

2. The Punong Barangay,

being the Local Chief
Executive, shall designate
the Chairperson, Vice-
Chairperson, and
members of the BAC;

Capacity Development Division 5

 BAC COMPOSITION

– In no case shall the HoPE and/or approving authority be the

Chairperson or a member of the BAC; (Sec. 11.2.5, IRR, R.A. No.
9184)

– Members shall have a fixed term of one (1) year from the date of
appointment, renewable at the discretion of the HoPE; (Sec.
11.2.6, IRR, R.A. No. 9184)

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 FUNCTION OF THE BAC
(Sec. 12.1, IRR, R.A. No. 9184)

a. Advertise and/or post the invitation to

bid/request for expressions of interest;
b. Conduct pre-procurement and pre-bid
conferences;
c. Determine the eligibility of prospective
bidders;
d. Receive and open bids;
e. Conduct the evaluation of bids;

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 FUNCTION OF THE BAC
(Sec. 12.1, IRR, R.A. No. 9184)

f. Undertake post-qualification proceedings;

g. Resolve request for reconsideration;
h. Recommend award of contracts to the HoPE
or his duly authorized representative;
i. Recommend the imposition of sanctions in
accordance with Rule XXIII;

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 FUNCTION OF THE BAC
(Sec. 12.1, IRR, R.A. No. 9184)

j. Conduct any of the Alternative Methods of

Procurement;
k. Conduct periodic assessment of
procurement processes and procedures;
l. Perform such other functions including
creation of Technical Working Group (TWG);

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 FUNCTION OF TWG
(Sec. 12.1, IRR, R.A. No. 9184)

1. Review of the Technical Specifications, Scope

of Work, and Terms of Reference;
2. Review of Bidding Documents;
3. Shortlisting of Consultants;
4. Eligibility Screening;
5. Evaluation of Bids;
6. Post-Qualification
7. Resolution of Request for Reconsideration

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 QUORUM
(Sec. 12.3, IRR, R.A. No. 9184)

A total of the BAC composition as designated

by the HoPE shall constitute a quorum for the
transaction of business, provided that the
presence of a Chairperson or Vice-Chairperson
shall be required.

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PHILIPPINE PROCUREMENT PARADIGM

Assess • Review studies • Post/Advertise Procure

• Consolidate into opportunity
APP • Open and evaluate
• Decide procurement bids
method • Post-qualify
• Approve APP • Award and enter
• Determine readiness into contract

Identify • Cost-benefit analysis • Oversee Implement

• Feasibility study implementation
• Market study • Inspect and
• PPMP accept deliveries
• Release payment

Capacity Development Division 13

PLANNING

PLANNING
- refers to predetermined
course/s of action to
achieve a desired
end/goal.

Capacity Development Division 14

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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 BENEFITS OF 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

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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
• The APP shall include provisions for foreseeable emergencies
based on historical records.

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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

TECHNICAL WORKING
END USER BUDGET OFFICE GROUP (TWG)

BIDS AND AWARDS COMMITTEE (BAC) APPROVING

AND BAC SECRETARIAT AUTHORITY/HoPE
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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 Type and

budget Objective

PPMP
Time
Extent/size
schedule

Procurement
methods

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PPMP FORMAT

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 DEVELOPING PROJECT
Developing Project Requirements
REQUIREMENTS

Identify Identify the need

alternative of the PMO/End-
solutions/ user unit
products/
services

Compare the
alternatives Choose the Best
(consider Alternative - the
qualitative and one that is most
quantitative beneficial to the
factors) Procuring Entity

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 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.

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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.
 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
 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);
 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.
 Acquisition Cost
 Operation Cost
 Replacement/Repair Cost
 Disposal 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 exceed the appropriation.

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 LIFE CYCLE COSTING
 LCC – Life Cycle Costing

 “Cost” should consider all costs throughout the life-

cycle – acquisition cost, utility costs (energy/water
consumption, maintenance), and disposal costs.

 “Cradle to Grave” vis-à-vis “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.
 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

 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

When GAA,
Corporate Budget
Upon approval or Appropriation
of HOPE, Budget Ordinance
Submit Budget Office will becomes final,
Proposal to forward PPMPs PPMPs will be
HOPE to BAC finalized and
Secretariat for submitted to BAC
Submit to Consolidation Secretariat for
Budget Office into indicative consolidation and
for APP approval of the
evaluation HOPE.
Prepare Project
Procurement
Management
Plan (PPMP)

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 PPMP CONSOLIDATION

• Checking of • Recommendation
procurement of procurement
methods 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)

 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).

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

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 TIPS IN CONSOLIDATING PPMPS
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

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/Suppleme
ntal PPMP

Consolidate
PPMP to
APP/Supplemen
tal APP

Approve
Updated
APP/Supplemen
tal APP

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 5 RIGHTS IN PUBLIC
PROCUREMENT

Source
Value for Money

Time/
Quantity
Delivery

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. This document contains the following
information:

3.2.1. Name of the Procurement Project;

3.2.2. Procurement Management Office or end-user unit;
3.2.3. Method Procurement ;
3.2.4. Schedule of identified procurement activities as reflected
in the APP form approved by the GPPB;
3.2.5. Source of Finds;
3.2.6. Indicative ABC; and
3.2.7. Other relevant descriptions of the project, if applicable..

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 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
3. To verify if the APP contains the following information:
a. name of the procurement program/ project;
b. project management office or end-user unit;
c. general description of the procurement;
d. procurement method to be adopted;
e. time schedule for each procurement activity;
f. source of fund;
g. approved budget for the contract.

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 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

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 SUBMISSION & POSTING
REQUIREMENTS
• APP
– Submission to the GPPB (AO 222) and posting in the
procuring entity's website of its APP for CY 2012
(Section 1.1 of the IRR of EO 662), following the form
and format downloadable from the GPPB website

• GPPB Website

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 2016 Revised IRR
B. Preparation of Indicative APP upon issuance of budget
call or similar document (Section 7.3)
The APP formulation and revision based on the ff:
7.3.1 Upon issuance of the budget call in the case of NGAs, SUCs,
Constitutional Commissions or Offices, or similar document for GOCCs,
GFIs and LGUs, the Procuring Entity 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.
7.3.2 In the preparation of the indicative APP, the end-user or implementing
units of the Procuring Entity shall formulate their respective Project
Procurement Management Plans (PPMPs) for their different programs,
activities, and projects (PAPsPMPs) for their different programs, activities,
and projects (PAPs).

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 2016 Revised IRR

7.3.3 In order to hasten project implementation,

Procuring Entities which may not have the
proficiency or capability to undertake a particular
procurement, as determined by the HOPE concerned,
may outsource the procurement tasks by:

a.) Requesting other GoP agencies to undertake such

procurement for them, through the execution of a
memorandum of agreement containing specific
arrangements, stipulations and covenants, in
accordance with government budgeting, accounting
and auditing rules;

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 2016 Revised IRR

b. Engaging private procurement agents to directly

undertake the procurement for them, or

c. Recruiting or engaging consultants to assist them

directly and/or train their staff in the management
of the procurement function.

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 2016 Revised IRR

7.3.4 The PPMPs shall then be submitted to the

Procuring Entity’s Budget Office for evaluation in
order to ensure consistency with the Procuring
Entity's budget proposal and compliance with
existing budgeting rules.

The PPMPs included in the budget proposal shall be

forwarded to the BAC Secretariat for consolidation
into an indicative APP, and to the BAC for final
recommendation of the appropriate procurement
modality.

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 2016 Revised IRR

 As soon as the GAA, corporate budget, or appropriation

ordinance, as the case may be, becomes final, the end-user or
implementing units shall revise and adjust the PPMPs to
reflect the budgetary allocation for their respective PAPs.

 The revised PPMPs shall be submitted to the BAC, through

its Secretariat, for the final recommendation of the methods
of procurement.

 The 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 E.O. 662, series of 2007, as amended.
(Section 7.3.5)

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 2016 Revised IRR
Require submission of APP and changes thereto to GPPB
(Section 7.4)
 Changes to the individual PPMPs and the consolidated APP
may be undertaken every six (6) months or as often as may
be required by the HoPE.

 The respective end-user or implementing units of the

Procuring Entity 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, which shall be
subject to the approval of the HOPE.

 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.(a)

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 2016 Revised IRR

The ABC as reflected in the approved APP shall be at

all times 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.
(Section 7.5)

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 2016 Revised IRR
Undertaking Procurement Short of Award (Section 7.6)

 To facilitate the immediate implementation of procurement of

Goods, Infrastructure Projects or Consulting Services, even
pending approval of the GAA, corporate budget or
appropriations ordinance, as the case may be, the Procuring
Entity may undertake the procurement activities short of
award.

 NGAs, SUCs, Constitutional Commissions or Offices are

encouraged to start their procurement activities immediately
after the National Expenditure Program (NEP) has been
submitted by the President to Congress, provided that the
HOPE has approved the corresponding APP. This will
facilitate the awarding of procurement contracts after the
enactment of the GAA, enabling the timely implementation
and completion of programs and projects. 63
 2016 Revised IRR
 For a contract with a period not exceeding one (1) year,
the ABC shall be based on the amount in the indicative
APP as included in the proposed national budget
submitted by the President to Congress; for GOCCs, on
budget levels as proposed to the governing board; or for
LGUs, on budget levels as proposed in the executive
budget submitted to the Sanggunian.

 In the case of multi-year contracts, for which a MYOA or

an equivalent document is required, the ABC shall be the
amount reflected in the MYOA.

 No award of contract shall be made until the GAA,

corporate budget or appropriations ordinance has been
approved or enacted, as the case may be.

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 THANK YOU!!

Contact us at:

DBM Regional Office IV-A

2/F PLJ Bldg. 755 Gen. Solano St., San Miguel, Manila

TeleFax: (02)7361285
Email Address: [email protected]

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