OVERVIEW & GENERAL PROVISIONSWith the PERTINENT

2016 REVISIONS

• What role would a CPA

probably play in Public

procurement

• What would be the impact

of the RIRR on the

responsibilities of the CPA

in public procurement

Historical Background

PE

Historical ContextPrior to RA 9184

•Various laws governing procurement

•Lengthy bidding process

•Substantial loss due to rampant corruption in the procurement process

Consolidation of House Bill 4809 and Senate Bill 2248

Effect

•One comprehensive procurement law :

the Government Procurement Reform Act (GPRA) – An Act providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other purposes

•Totally replaced the separate procurement laws

Signed RA 9184

January 10, 2003 Signed into law

January 11, 2003 Publication

January 26, 2003 Effectivity date

October 8, 2003 IRR-A effectivity

August 3, 2009 Publication of Revised IRR

August 18, 2009 Effectivity of Revised IRR

August 29, 2016 Publication of 2016 Revised IRR

October 28, 2016 Effectivity of 2016 Revised IRR

EO 201 (2000) as amended by EO 262

(2000)

Goods and Services

EO 302 (1996)

PD 1594 (1978)

Infrastructure

RA 7160NEDA

Guidelines (1998)

E0 164

LGUs Consulting Services

Problems Solved

Confusion caused by fragmented legal system

Inconsistent policies, rules, and regulations and lack of standards

Lack of transparency

Key Reform measures of RA 9184

Created the Government Procurement Policy Board (GPPB)

Standardized bidding documents and prescribed generic procurement

manuals

Regular national training program/ capacity building on procurement for

government personnel and private sector

Established a professionalization program for procurement practitioners

Philippine Government Electronic Procurement System (PhilGEPS)

Participation of civil society

Lengthy bidding process ( timehas been cut to half)

Absence of Access to bidding infor-mation/documentation ( now very easy)Decrease in price ( 50% textbooks; 27% medicines)

RIRR Review and Revision

What triggered the recent revisions?❖ Under spending by government agencies in 2014❖ Reason – delay in procurement❖ Offshoot of Senate Investigations on delays in procurement(Senate Sub-Committee on Accountability of Public Officers, through its Chairperson Honorable Senator Aquilino Pimentel III, requested the GPPB to prepare the amendments to RA 9184.)

Basis of the 2016 revisions

❖ An IRR Review Committee (IRC) with an Inter-Agency Technical Working Group conducted in coordination with GPPB-TSO, various Focus Group Discussions (FGDs) with various spending government agencies to gather feedbacks, suggestions, and recommendations in order to review the IRR and propose amendments thereto.

❖ IRR review Workshops were also conducted to craft the revisions.

Review and Approval of IRR

The IRR Review Committee presented to the GPPB theproposed revisions of the IRR of RA 9184 during its meetingson 29 January 2016, 11 March 2016, 28 March 2016, 7 April2016, 20 April 2016 and 10 May 2016.

During the 7th GPPB and 5th IATWG Joint Meeting on 10 May2016, the Board approved the 2016 Revised IRR of RA 9184and on 29 August 2016 it was published to take effect 60days after,( 10/28/2016 )

All agencies and instrumentalities of government

namely:

1. National Government Agencies (NGAs)2. State Universities and Colleges (SUCs)3. Government Owned or Controlled Corporations (GOCCs)4. Government Financial Institutions (GFIs)5. Local Government Units (LGUs)

Scope and Coverage of RA 9184

Procurement

Planning

Contract

Implementation

All procurement activities regardless of source of

fund

1. Domestically-funded procurement; and

2. Foreign-funded procurement unless otherwise specified in treaty stipulations or international or executive agreement

Scope and Coverage of RA 9184

Goods and Services

- Supplies, and materials, equipment, furniture, needed in operations and includes general support services/contractual services, such as for:

•repair and maintenance of equipment and furniture;

• trucking, hauling, janitorial, security and other related and analogous services,

(not including consulting services)

Infrastructure Projects

- Construction, improvement, rehabilitation, repair/restoration of civil works components of :

• IT projects;

• irrigation;

• flood control and drainage;

•water supply;

• sanitation, sewerage and solid waste management;

•national buildings, hospital buildings; and

•other related construction projects of the Government.

Consultancy Services- External technical and

professional expertise that are beyond the capabilityand/or capacity of the organic employees of the Government agency such as, but not limited to:

•advisory and review services;

•pre-investment or feasibility studies;

•design;

•construction supervision;

•management and related services; and

•other technical services or special studies.

Mixed Procurement

- The nature of the procurement shall be determined based on the primary purpose of the contract.

- Determination shall be made by the procuring entity.

(The PE is in the best positionto determine primary purposeof a project and thus, thecorrect classification of itsprocurement, based on itsidentified needs and itsmotivation or intention in

pursuing the project.)

LIMITATIONS to & coverage of RA 9184

FOREIGN GRANTS – Procurement funded by foreign grants shall be covered by RA 8182 as amended by RA 8555

(ODA law).

FOREIGN LOANS – Procurement made through foreign loans shall be governed by the Loan Agreement.

Pacta sunt servanda - Any treaty or international or executive agreement shall be observed.

REAL PROPERTIES –governed by RA 8974 - An act to facilitate the acquisition of right-of-way, site, or

location for national government infrastructure projects and for other purposes.

PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS - RA 6957 - An act authorizing financing,

construction, operation and maintenance of infrastructure projects by private sector, as amended by RA 7718 (BOT Law).

DISPOSAL OF GOVERNMENT PROPERTIES – COA Circular No. 86-26 and National Budget Circular No.

425 on disposal of government properties which is outside the mandate of GPPB.

JOINT VENTURE PARTNERSHIPS OF GOVERNMENT CORPORATIONS AND PRIVATE ENTITIES - Joint

Venture Guidelines issued by NEDA

LEASE OF PUBLICLY-OWNED REAL PROPERTY FOR PRIVATE USE – Sec. 7, EO 301 s. 1987 and its guidelines.

Note: As long as lease out undertaking does not involve expenditure of public funds for the procurement of goods, works and consulting services, RA 9184, its IRR, and its associated rules will not apply (NPM 10-2014). The Implementing Guidelines for Lease of Privately-Owned Real Estate will only apply to lease by government agencies for official use of privately-owned real estate (NPM 50-2013 ).

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2

3

4

5

7

6

On Scope and Coverage of RA 9184

Varying interpretations on the coverage of RA 9184

Problem

Activities that are notconsidered as procurement

undertakings under RA 9184 and its IRR:

•Direct financial or material assistance to

beneficiaries

•Participation to scholarships, trainings etc.

•Job order workers

Revision

Clarification on the applicability of RA 9184 and

its IRR

Impact

2016 IRR Revision

- responsibility/ answerability over actions/ decisions

-both public officials & private parties directly & indirectly involved may be investigated and held liable (C,C, A)

- equal opportunity to all those qualified & eligible

- public posting of bid opportunities and all awards made

- Open Public Bidding or wide dissemination of bid opportunities and participation of pertinent NGOs as observers

- made simple and uniformly applicable to all through use of generic manuals and standard forms geared towards efficiency and effectiveness of the process

- awareness and vigilance of the public

-CSO observers until implementation

14

Governing Principles of Government Procurement

Public Monitoring Accountability

Competitive-

ness

Transparency Streamlining and Use of

Modern Technology in

Procurement

Key Features of RA 9184

Covers procurement of ALL government

agencies

GENERAL RULE:Public/

Competitive Bidding

Strengthened post-qualification

Arbitration: RA 876

(Arbitration Law)

Increased transparency in

procurement

Professionalizationof procurement

officials

ALTERNATIVE Methods: only in

HIGHLY EXCEPTIONAL cases

SIMPLIFIED PRE-QUALIFICATION;

Non-discretionary criteria for

qualification

Use of LCRB/ HRRBApproved Budget for the Contract (ABC): Ceiling for

the bid price

Disclosure of relations:

Up to 3rd degree

Inclusion of penaland civil liabilities

Protest Mechanism: within 7 days after

receipt of denial of MR by the BAC

1. What role would a CPA

probably play in Public

procurement ?

17

KEY PLAYERS IN PUBLIC

PROCUREMENT

HOPE

BAC

BAC

Secretariat

TWG

Observers

Others concerned::

• Auditors

- internal

- external

• Budget/finance

officials

18

I. HEAD OF PROCURING ENTITY (HOPE)

HOPE

2)Approves the APP

3)

3)Approves/ disapproves recommen-dations of the BAC

)

5.Resolves protests

Approves/

1)Establish the BAC

and appoint its members

Ensures:

a. BAC Members give

utmost priority to

duties; and

b. Professionalization of

members of the

procurement

organization

A discretionary act – lapse of period does not convert

an originally discretionary act to a ministerial one.

To argue otherwise would mean that the HOPE will be obligated to approve the recommendation of the BAC despite the existence of possible irregularities in the bidding process,

which is not the intention of RA 9184. NPM 115-2014

4) Approves/ disapproves

contract award

RESERVATION CLAUSE: The HOPE reservesthe right to reject any and all bids, declare afailure of bidding, or not to award the contract ifthe BAC is found to have failed in following theprescribed bidding procedures among othergrounds. (Section 41 of the RIRR of RA 9184)NPM 115-2014

Upon receipt of the BAC’s Resolution recommending award of contract, approve or disapprove the recommendation within seven (7) CDs.

FUNCTIONS :

- assigned by RA 9184 to perform specific functions related to government procurement.

II. BIDS AND AWARDS COMMITTEE (BAC)

1.Recommend the Mode/Method of

Procurement

2. Create a Technical Working Group (TWG)

from a pool of technical, financial, and/or legal

experts to assist in the procurement process

3. Conduct the bidding activities1

5. Resolve motions for

reconsideration

6. Recommend the imposition of sanctions in

accordance with Rule XXIII

4.Invite observers during all stages of the

procurement process (at least 5 days before the date of procurement

activity)

4.Conduct due diligence review or verifications of the qualifications of

observers

6. Prepares and submit to GPPB in printed and

electronic format within 14 days after the end of

each semester, a Procurement Monitoring

Report

FUNCTIONS OF THE BAC

Bidding Activities

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;

f. Undertake post-qualification proceedings;

g. Recommend the award of contract to the bidder with the LCRB/HRRB;

h. Notify the losing bidders of the decision to award the contract within 7 CDs; and

i. Post the Notice of Award within 3 CDs from its issuance.

re : bac responsibility

Unauthorized use of another bidder’s name or license

Problem being solved

SEC 25.6 - The BAC shall notify in writing all bidders whose bids it has received.

Revision(Additional function)

Transparency and accurate representation

of the actual bid submission.

Impact

2016 IRR Revision

The Local Chief Executive shall designate the Chairman andVice-Chairman as well as members of the BAC who shall berepresentative

The Local Chief Executive shall designate the Chairmanand Vice-Chairman as well as members of the BAC who shallbe representatives of the following from the following offices:The Local Chief Executive shall designate the Chairman andVice-Chairman as well as members of the BAC who shall berepLochief Executive shall designate the Chairman and Vice-Chairman as well as members of the BAC who shall berepresentatives of the following from the following offices:e-Chairman as well as members of the BAC who shall berepresentatives of the following from the following offices:The Local Chief Executive shall designate the Chairman andVice-Chairman as well as members of the BAC who shall berepresentatives of the following from the following offices:the following from the following offices:

BAC COMPOSITION

At least 5 but not more than 7 members who are permanent officials of unquestionable integrity designated by the HOPE

REGULAR MEMBERS

• Chairperson (3rd Ranking Permanent Official);• Member representing the Legal or

Administrative areas (5th Ranking PermanentPersonnel);

• Member representing the Finance Area (5th

Ranking Permanent Personnel);

PROVISIONAL MEMBERS

• Officer possessing Technical expertise relevant to the procurement; and

• End user unit Representative.

Barangay BACBarangay BAC shall be composed of at leastfive(5) but not more than seven (7) regularmembers of the Sangguniang Barangay, exceptthe Punong Barangay.

The Punong Barangay shall designate theChairperson, Vice-Chairperson and members ofthe BAC

LGU BACThe Local Chief Executive shall designate the Chairman and Vice-Chairman as well as members of the BAC who shall be representatives of the following from the following offices:

Members:1. Administrator’s Office2. Budget Office3. Legal Office4. Engineering Office5. General Services Office6. End User Office

re : bac composition

Limited number/lack of officials who qualify as BAC Member to constitute the BAC

Problem

SEC. 11.2.2 - Allows designation of an officer of the next lower rank, in case of unavailability of 5th ranking permanent official, except for BAC Chairperson.

SEC. 11.2.2 (b) - At least a 5th ranking (3rd ranking in case of bureaus ) permanent official, or if not available, official of next lower rank;

SEC. 11.2.3 - In LGUs, the Chairperson and Vice-chairperson shall be designated by the local chief executive.

SEC. 11.2.2 (e) - In case of procurement outsourcing, a representative from the Procuring Entity may be designated as a provisional member of the BAC.

Revision

This shall increase the pool of incumbent officials from which regular BAC members/ BAC Sec. Head may be designated

.

Impact

2016 IRR Revision

ALTERNATE BAC MEMBERS(Sec 11..2.4)

Same qualifications as their principals1

Same term as the principal2

Presence of alternate BAC members in BAC meetings in representation of the Principal, are

considered for purposes of quorum3

The relationship of the principal and the alternate is of co-equal nature, rather than

hierarchical4

Shall be entitled to the corresponding honoraria for attendance in meetings5

Permanent MEMBERS

▪ DOES NOT refer to whether the person is contractual, regular, or co-terminous with the appointing authority.

▪ REFERS to whether the position exists within the organizational structure of the procuring entity or not.

▪ Therefore, a 3rd ranking officer occupying aposition under a temporary/co-terminousappointment, is eligible to become theChairman of the BAC for as long as the officehe/she is occupying is an existing plantillaposition.

▪ A Municipal Administrator may be designatedas BAC Chair if his position is found in theplantilla of the municipality.

(Non Policy Matter 024-2011, NPM 034-2011,NPM 035-2011, NPM 28-2012)

re : bac accountability

Tendency of both the Regular member or the Alternate absent to evade liability

Problem being solved

SEC. 11.2.4 - Deletion of the phrase “The accountability of the principal and the alternate member shall be limited to their respective acts and decisions”

Revision

This emphasizes that the BAC is a collegial body. Accountability as to individual member’s acts may still be subject to defensesin court.

Impact

2016 IRR Revision

BACGENERAL RULE: HOPE must create a single BAC. However, separate BACs may be created

under any of the following conditions:

1.Separate BACs are required according to the nature of the procurement; items to be procured are complex or specialized; or

2.A single BAC cannot reasonably manage the procurement transactions as shown by delays beyond the allowable limits.

TERMS OF MEMBERSHIP

In case of resignation, retirement, separation,transfer, re-assignment,

or removal of a BAC member, the HOPE shall designate a replacement

that has similar qualifications as the

official replaced.

BAC members shall be designated for a term of one (1) year only, reckoned from

the date of designation.

However, the HOPE may

renew or terminate such designation at his discretion.

The replacement shall serve for the unexpired term. In case of leave or

suspension, the replacement shall serve only for the duration of

the leave or suspension.

The Chief Accountant or Head of the Accounting Department

OFFICIALS DISQUALIFIED FROM BEING A BAC MEMBER

HOPE

ApprovingOfficial

Chief Accountant

The approving official of procurement contracts

The Head of Procuring Entity

o To avoid any conflict of interest between theperson who takes part in a procurementactivity and the one approving the resultingtransactions.

o Consequently, such prohibition does not applyto approving authorities where this conflict ofinterest is not present.

unless the accounting department is the end-user unit/ designated as end-user member (COA Circular 2003-004 dated July 30, 2003)

re : bac capacity development

Lack of training of HOPE, BAC,

Secretariat and TWG

Problem

The HoPE shall ensure that the BAC, itsSecretariat and TWG members, includingother relevant procurement personnel aresent to attend procurement training orcapacity development program.

Within six (6) months upon designation, theBAC, its Secretariat and TWG membersshould have satisfactorily completed suchtraining or program conducted, authorizedor accredited by the GPPB through itsTechnical Support Office.

Revision

Procurement Professionalization

Impact

2016 IRR Revision

The HOPE shall or designate an ORGANIC or PERMANENT Office within the Procuring Entity as BAC Secretariat to be the main support unit of the BAC to ensure an orderly management of procurement actions and records, to facilitate continuity,and to promote and strengthen professionalization of procurement functions.

BAC SECRETARIAT

There is no minimum or maximum number of members required for the BAC Secretariat.Head of the BAC

Secretariat

Head Offices 5th Ranking Permanent Employee

Bureaus/Regional Offices3rd Ranking Permanent

Employee

Barangay - Kagawad

QualificationsFunctionsProvide administrative support to the BAC

Organize and make all necessary arrangements for BAC meetings and conferences

Prepare minutes of meetings and resolutions of the BAC

Take custody of procurement documents and other records

Manage the sale and distribution of Bidding documents

Advertise and/or post bidding opportunities and notices of awards

Assist in managing the procurement processes

Monitor procurement activities and milestones for proper reporting to relevant agencies when required

Consolidate PPMPs to prepare the APP

Act as the central channel of communications for the BAC

re : bac SECRETARIAT

Lack of full-time BAC Secretariat to support the BAC in every procurement activity

Problem

Allows designation of an officer ofthe next lower rank, in case ofunavailability of 5th rankingpermanent official as Head of theBAC Secretariat.

In cases where the BAC Secretariat is ad hoc, the HOPE shall assign a full-time support staff in its BAC Secretariat (Sec. 14.2)

Revision

Fast-track procurement

Impact

2016 IRR Revision

TECHNICAL WORKING GROUP (TWG)– A pool of technical, financial and/or legal experts created by the BAC to assist in the procurement process.

BAC may create separate TWGsto handle different procurements.

*Need not come from the procuring agency of LGU itself.

NPM 26-20121. Assist BAC in:

❖ Preparation of bidding documents

❖ Eligibility check/short-listing

❖ Bid evaluation and preparation of reports

❖ Post-qualification❖ Preparation of post-

qualification summary report

2. Assist BAC and BAC Secretariat in preparing BAC Resolutions

FUNCTIONS

re :TWG functions

Lack of clarity as to the Role of the TWG

Problem

Duties of the TWG(12.1) :

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; and7.) Resolution of Request for

Reconsideration

Revision

Clarification of

the functions of

the TWG ;

Avoids

pinpointing of

responsibilities

Impact

2016 IRR Revision

Only for successfully completed procurement projects

honoraria

Php3,000.00BAC

Chairperson

Php2,000.00BAC Secretariat

and TWG

Php2,500.00BAC Members

Total in a month not to exceed 25% of the BMS

NOT to be paid for shopping, direct contracting, repeat order, and negotiated proc except when negotiation is a result of two failed biddings

Per Budget Circular No. 2004-5

dtd. March 23, 2004

As amended by Budget Circular

No. 2007-3 dtd. Nov. 29, 2007

Limited to procurement that involves competitive bidding

Granted to BAC Chairperson/ Members or the TWG by thePE concerned

FUNDING SOURCES

a. Proceeds from:Sale of bid documentsFees from contractor/ supplier registry Fees charged for copies of minutes of bid openings, BAC resolutions and other BAC documentsProtest feesBid security forfeiture

b. Savings realized from the CY specific budget of the agency under the GAA

BC No. 2004-5 dtd. Mar. 23, 2004

BC No. 2004-5A dtd. Oct. 7, 2005

BC No. 2007-3 dtd. Nov. 29, 2007

To enhance the transparency of the process, the BAC shall, in all stages, invite representative of the COA and at least 2 observers to sit in the proceedings.

ObserversOBSERVERS

SECTION 13.1

Observers represent the public, the taxpayers who are interested in seeing to it that procurement laws are observed and irregularities are averted.

Low-turn out of procurement

observers

Problem

Increased the period of notice from

3 to 5 days

SECTION 13.3

They shall be invited at least five (5)calendar days before the date of thescheduled opening of the bids.

Revision

Impact

Increase turn-out of observersparticipating

re : OBSERVER PRESENCE

confusion, complaints; low turn-out of observers

Problem

Revision

Provides for

clarification on which

stages of the

procurement process

the presence of an

observer is required

thus, avoiding conflict

between PEs and

Observers.

Impact

2016 IRR Revision

“All stages of the procurement process” refers to the • pre-bid conference; • eligibility screening; • preliminary examination of bids; • bid evaluation; and • post-qualification (Sec. 13.1 to Sec. 13.3)

If there is no observers’ report within 7 days from activity, there is a presumption that the BAC followed the correct procedure (Sec. 13)

Fundamental only to the extent of guaranteeing documentary integrity and transparency in the bidding process

Cannot participate or be actively involved in the bidding “as this would be tantamount to exercising pre-audit functions and encroaching into the government agency’s management prerogatives”

Upon the agency that called for the bidding, therefore, rests the burden of ensuring that the process undertaken is above-board and that the outcome thereof is most advantageous to the government.

The ultimate responsibility in the bidding process falls on the BAC members.

Villanueva v. COAG.R. No. 151987. March 18, 2005

COA Representative

2 Observers other than the

COA Auditor

One (1) shall come from a duly recognized private group in a sector or

discipline relevant to the procurement at hand.

Goods

A specific relevant chamber-member of the Philippine Chamber of Commerce and

Industry (PCCI)

Consulting Services

A project-related professional organization accredited or duly

recognized by the PRC or the SC, such as, but not limited to: (1) Philippine

Institute of Civil Engineers (PICE); (2) PICPA; and (3) Confederation of Filipino

Consulting Organizations

Infrastructure Projects

National associations of constructors duly recognized by the Construction Industry Authority of the Philippines(CIAP), such as, but not limited to: (1) Philippine Constructors Association, Inc.; (2) National Constructors Association of the Philippines, Inc.; and (3) PICE

The 2nd observer shall come from a non-government organization

(NGO) duly registered with the SEC or the CDA.

Criteria Responsibilities

OBSERVERS

Upon receipt of invitation, the observer entity should:

Inform the procuring entity if a representative will be sent, stating the name and herposition in the organization.

Inquire about what transpired during the previous stage(s)

Request for documents and list of BAC observers in the previousstage(s) not attended by him/her, in order to be guided accordingly.

Observers shall be allowed access to thefollowing upon request, subject to signingof a confidentiality agreement:

1. Minutes of BAC meetings;2. Abstract of Bids;3. Post-qualification summary report;4. APP and related PPMP; and5. Opened proposals

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Observer’s Rights

1. Attend any or all stages of the procurement process.

2. Record what they have observed during any of the procurement proceedings.

3. Access procurement-related documentssuch as:✓Annual Procurement Plan and PPMP

✓Minutes of the BAC meetings

✓Abstract of bids

✓Opened proposal

✓ Post qualification summary report

Prohibited Acts by Observers

1. Conflict of interest2. Kickbacks and acceptance of

gratuities3. Disclosure of detailed information,

such as but not limited to:✓Advance information✓Confidential or proprietary

information about other bidders✓Technical information✓Updates on decisions of

the BAC

✓ Updates on the decisions made by the BAC

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Observer’s Report

Shall contain:1. An assessment of the extent of the BAC’s compliance with the provisions of

the IRR of the GPRA; and 2. Areas of improvement in the BAC’s proceeding

NOTE: If no report is submitted by the observer, then it is understood that the bidding activity

conducted to the BAC followed the correct procedure.

Difficulty on part of Observers in preparing a Report

Lack of confidentiality on information accessed by observers

Problem

A template for the Observers’ Report is

provided

Acces to Procurement documents is

subject to signing of a Confidentiality

Agreement

RevisionFacilitates preparation of the Observer’s Report;Protects trade secrets and nationalSecurity information

Impact

2. What would be the

impact of the RIRR

on the responsibilities

of the CPA in public

procurement ?

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✓ Updates on the decisions made by the BAC

Impact of the RIRR on the Role of the CPA as a

Procurement Practitioner

(Member of the BAC, TWG, Observer or Auditor)

1. Ensures mandatory education on RA 9184 of the CPAs who are

designated as members of the BAC or the TWG, or

designated/invited as Observers;

2. Provides the CPA who is a procurement practitioner detailed

guidance on how to implement RA 9184;

3. Reduces fear, hesitation and anxiety over participation by the

CPA in the procurement process.

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✓ Updates on the decisions made by the BAC

Impact of the RIRR on the Role of the CPA as a

Procurement Practitioner

(Member of the BAC, TWG, Observer or Auditor)

4. Minimizes mistakes and delays committed by the CPA as a

procurement practitioner;

5. Lessens the probability of incurrence of civil, criminal and

administrative liability of procurement practitioners who are

CPAs, arising from violations committed unwittingly.

6. Contributes to good governance in the discharge of the

procurement function in the Procuring Entity where he /she

serves.

1. Whether to procure or not (necessity)

2. What to procure (R quantity & quality)

3. How to procure

4. Where to procure ( R source)

5. How much to procure ( R price)

6. When to procure ( R time)

PROCUREMENT PLANNINGPROCUREMENT PLAN - map or chart of the entirety of the procurement activities that will have to beundertaken by the Procuring Entity within the calendar year

PLANNING SCOPE

Why meticulous and judicious procurement planning? Consistent with government fiscal measures

Only those considered crucial to the efficient discharge of government

functions shall be included in an APP

Required for the day-to-day operations

In pursuit of the principal mandate of the procuring entity

concerned [Sec.7.1.IRR])

Ensure that goods, infrastructure projects, and consulting services that

will be procured have been included in the approved APP

Ensure that the overall goal of a particular project will be effectively and

efficiently achieved by having all logistical requirements available when

needed

Preclude unnecessary government purchases and circumvention of the

prescribed procurement procedures (advance deliveries ; suki system;

unwarranted resort to alternative methods procurement )Ensure that all acquisitions are done within the approved budget

Preparation of PPMP and APP (Section 7.3, IRR)

1. Evaluates each PPMP

2. If warranted, includes the amount of the PPMP in the Agency Budget proposal

3. Furnishes Copy of approved budget proposal and corresponding PPMPs to the BAC Secretariat for review and consolidation into the proposed Indicative APP

Consolidates the different PPMPs into the proposed Indicative APP which shall be submitted together w/ the proposed Agency Budget for approval of the HOPE

Prepares the Project Procurement Management Plan (PPMP) and submits to the procuring entity’s Budget Office

The LINK between Procurement Planning and Budgeting

BAC/Secretariat

Budget Office

End User

SECTION 7.3 - PREPARATION OF PPMP AND APP

Division C

PPMP

PPMP

PPMP

Consolidation by BAC Secretariat

APP

SECTION 7.3 PREPARATION OF PPMP AND APP

Approval by HOPE

Division B

Division A

Division C

The LINK between Procurement Planning and Budgeting

Bu

dg

et O

ffic

e

Budget

The ABC to be reflected in the APP shall be at all times be consistent with the appropriations/ COB / Appropriation Ordinances (Annual and Supplemental Budgets) enacted by the Congress /BOD/ Sanggunian

SECTION 7.3

PPMP

End-User Unit

• Revises and adjusts the PPMP to reflect budgetary allocation, as soon as the GAA, corporate budget, or appropriation ordinance is approved

• Resubmits the revised PPMP to the BAC, through Secretariat

BAC/Secretariat

• Finalizes the indicative APP initially submitted to legislative body to conform with the approved budget

• Submits the finalized APP for approval again by the HOPE

The LINK between Procurement Planning and Budgeting

ADJUSTMENT OF THE PPMP AND THE APP PURSUANT TO THE APPROVED

APPROPRIATION/BUDGET

SECTION 7.4

Every six (6) months or as often as may be required by the HOPE

Responsibility of respective and End-User units

Consolidation of the updates in the PPMPs and revision of the APP is the responsibility of the BAC Secretariat.

Approved – by the HOPE

UPDATING OF THE PPMP AND THE APP

The Annual Procurement Plan (APP)Section 7, RA 9184

No government Procurement shall be undertaken unless in accordance with the

approved APP of the PE.

The APP shall include provisions

for foreseeable emergencies based on historical records.

For infrastructure projects – the APP shall consider the

appropriate timing of related project

activities to reduce/lower the

project costs (e.g. after detailed engineering

and acquisition of right of way)

The APP shall contains the following information:

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; and

Approved Budget for the Contract.

The Project Procurement Management Plan

CONTENTS

Name of the Project

General Description of the Project

Extent/Size of Contract/Scope/ Packages

Procurement Method

Time Schedule – Procurement Activity and Contract

Implementation

Approved Budget of the Contract (ABC)

re : PROC. OBLIGATIONAL AUTHORITY

❖Poor planning

❖Delay in budget approval

❖Delay in procurement

❖Under-spending

❖Splitting of contracts

Problem

Revision• This will enable the procurement of

a major project as a single multi-year contract covering the entire project life until its completion – instead of splitting the project into several single year- contracts.

• This will fast track procurement and result to efficiency because it assures continuous implementation of the project, prevent delays, reduce total project cost, avertdamage to unfinished phases, and provide for a single point of contractual responsibility.

Impact2016 IRR Revision

1. Inclusion of MYOA for multi-year projects (Sec. 5(b), 7.6);

2. Preparation of Indicative APP upon issuance of budget call or similar document (7.3)

3. Undertaking Procurement Short of Award (7.6)

4. Require submission of APP and changes thereto to GPPB (7.4)

Reasons❑ Compliance to R.A. 9184 and its

IRR

❑ Efficiency and Effectiveness

❑ Aid GPPB in crafting policies that address weaknesses and uphold strengths of the Philippine Procurement System

PROCUREMENT MONITORING

Monitoring- is the tracking on a regular basis

of the inputs, implementation and

results (outputs and outcomes) of

a procurement activity

❑ Allows public involvement of qualified and eligibleCivil Society Organizations (NGOs, PAs, academicinstitutions, and religious groups) to observe andmonitor the procurement process until contractimplementation

❑ Increased transparency of procurement transactions

PROCUREMENT MONITORING REPORT (PMR)

Prepared by the BAC in the form prescribed by the GPPB

Covers all procurement activities in the APP (on-going and completed) from the holding of the pre-procurement conference to the issuance of the notice of award, including the actual date for each major procurement activity

Approved and submitted by the HOPE to the GPPB in printed and electronic format within 14 CDs after the end of each semester

ANNEX B

(Name of Agency) Procurement Monitoring Report as of month/day/year

Pre-Proc

Confe-

rence

Ads/

Post of

IB

Pre-bid

Conf

Eligibility

Check

Sub/Ope

n of Bids

Bid

Evalua-

tion

Post

Qual

Notice of

Award

Contract

Signing

Notice to

Proceed

Delivery/

Comple-

tion

Inspec-

tion &

Accep-

tance

Total MOOE CO Total MOOE CO Pre-bid

Conf

Eligibi-

lity

Check

Sub/

Open

of Bids

Bid

Evaluat

ion

Post

Qual

Delivery/

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

0N-GOING PROCUREMENT ACTIVITIES

Prepared by: Recommended for Approval by: APPROVED:

BAC Secretariat BAC Chairperson Head of the Procuring Entity

Total Alloted Budget of On-going Procurement Activities

PMO/

End-User

Mode of

Procureme

nt

Total Alloted Budget of Procurement Activities

Total Contract Price of Procurement Actitvites Conducted

Total Savings (Total Alloted Budget - Total Contract Price)

Actual Procurement Activity Source

of Funds

Code

(UACS/P

AP)

Procurement

Program/

Project

ABC (PhP) Contract Cost (PhP) List of

Invited

Observers

Date of Receipt of Invitation Remarks

(Explaining

changes from the

APP)

Posting requirement

Submission to the GPPB and posting in the procuring entity's website following the

form and format downloadable from the GPPB website

APP

Submission to 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

PMR

Questions

Thank You for

your INTEREST

and

ATTENTION !!!