refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A. 9184)

refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A. 9184)

What is Procurement?

Items, supplies, materials & general support services, except consulting services & infra projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking. Includes, but is not limited to the following:a)equipment, b)furniture, c)stationery, d)materials for construction, e)personal property of any kind,f)non-personal or contractual services, i.repair & maintenance of equipment and furniture ii.trucking, hauling, and courieriii.janitorial, security and manpower

Goods and Services

Related or analogous services shall include, but not limited to the following:a)lease or purchase of office spaceb)media advertisementsc)health maintenance servicesd)other services essential to the operation of the procuring entityi.rental of venues and facilitiesii.catering servicesiii.lease of computers, copiers and other information technology equipment

Goods and Services

Infrastructure Projects• Construction

• Improvement• Rehabilitation• Demolition• Repair• Restoration• Maintenance• Roads and bridges• Railways• Airports and

seaports• Communication

facilities• Civil works

components of IT projects

• Irrigation

• Flood control and drainage

• Water supply• Sanitation• Sewerage and

solid waste management systems

• Shore protection• Energy/power and

electrification facilities

• Buildings (National, School, Hospital)

• Other related construction projects

Services for infrastructure projects and other types or activities of the Government requiring adequate external, technical and professional expertise that are beyond the capability and/or capacity of the Government to undertake, such as:

a) advisory and review services; b) pre-investment or feasibility

studies;c) design;d) construction supervision;e) management and related

services; orf) other technical services or

special studies.

What is Consulting Service?

Projects or related activities of such magnitude and/or scope as would require a level of expertise or attention beyond the optimum in-house capability

When Consulting Service is needed?

Why is procurement planning important?

to avoid:wastage of government funds possible criminal liabilitiesprocurement delays possible COA disallowancessuspension of officials

Why is procurement planning important?

to avoid:wastage of government funds possible criminal liabilitiesprocurement delays possible COA disallowancessuspension of officials

04/18/23Prospective Trainers' Orientation, Seminar and Workshop on RA 9184 and Latest Issuances

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The Commission on Audit has noted that “shopping” was frequently used in the procurement of goods and services in the City Government of Bogo (Cebu) due to the absence of an Annual Procurement Plan in violation of Republic Act 9184.

COA, in its 2012 audit report on the financial transactions of the city, said that the LGU made procurements in violation of the Section 7 of the IRR of the law.

Audit disbursements for various procurement of the city revealed the non-use of an APP. COA recommended that the City Administrator direct the BAC Secretariat to consolidate the procurement plans of all the departments in accordance with the provisions of the law.

(Source: The Freeman, September 1, 2013)


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The Office of the Ombudsman has found 3 Comelec officials guilty of simple neglect of duty, simple misconduct and conduct prejudicial to the best interest of the service in connection with the planned purchase of P690 million worth of ballot secrecy folders in 2010. They were ordered suspended for six months without pay.

The Ombudsman said as a general rule there should be public bidding, and this could only be done away with if several conditions are met. In awarding the contract to OTC, the BAC had said there was already a delay in the procurement of non-accountable forms, which was why no public bidding was held.

(Source: The PDI online, August 25, 2011)


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PNP chopper mess: Ombudsman affirms ruling dismissing 14 police officers, suspending 6 others who participated in the whole procurement process.

The Office of the Ombudsman's Special Investigating Panel found among other things that: (i) MAPTRA did not possess the technical and financial eligibility required by law; (ii) MAPTRA delivered only one brand new Robinson Raven II LPOH while the two delivered

Robinson Raven I LPOHs were actually pre-owned by the former FG Arroyo, and/or non-compliant with the set requirements such as endurance/ventilating system and valid/existing engine warranties, causing undue injury to the government in the amount of at least P34,632,187.50 representing the overpriced figure;

(iii) PNP entered into the helicopter supply contract with MAPTRA even before the completion of the post-qualification process; and

(iv) MAPTRA was just a marketing arm and not the authorized dealer of brand new R44 Raven 1 units. Aside from administrative sanctions, the respondents are also facing criminal charges before the Sandiganbayan.

(Source:By: Jaime Sinapit, InterAksyon.com November 22, 2012)


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The Sandiganbayan has sentenced a town mayor of Davao del Sur to a maximum of 10 years in jail for purchasing a generator worth more than P1.6 million that later proved to be useless.

The machine valued at P1,694,787.30 was supposed to supply electricity to the Municipal Hall of Jose Abad Santos but it was never used because its features were found to be incompatible with the building’s existing electrical wirings.

The Office of the Ombudsman filed charges against the mayor for making the purchase without the conduct of a technical engineering study or a project design to determine its viability.

(Source: PhilStar.com, Oct. 13, 2009)


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Two lawmakers have sought to stop the bidding for the supply of eight fire trucks valued at P50 million even as they have point to the alleged anomaly in the Bureau of Fire Protection’s plan to purchase 150 more fire trucks that will entail billions of pesos in public funds.

Cong. Palmones, whose party advocates the promotion of science and local inventions to include Philippine-made fire trucks, earlier filed a resolution calling for an investigation on the fire bureau’s “questionable circumstance behind the change of the technical specifications” of the trucks to be bidded out and which allegedly tended to favor foreign-made fire trucks.

(Source: Manila Standard Today, Jul 25, 2011)


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Allegations of government officials asking for kickbacks from ZTE officials hounded the awarding of the $329-million construction contract to the Chinese telecommunications firm in 2007 for the proposed government-managed National Broadband Network (NBN). Then-President Gloria Macapagal-Arroyo had to cancel the contract after the issue broke out and became the subject of congressional inquiries.

(Source: GMA News Online Sept 1, 2011)

Section 7, R.A. No. 9184:

All procurement should be within the approved budget of the Procuring Entity;

Should be meticulously and judiciously planned by the Procuring Entity concerned;

Only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP).

Section 7, R.A. No. 9184:

All procurement should be within the approved budget of the Procuring Entity;

Should be meticulously and judiciously planned by the Procuring Entity concerned;

Only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP).

Section 7, R.A. No. 9184 (cont.):

• No government Procurement shall be undertaken unless it is in accordance with the approved APP of the Procuring Entity;

• The APP shall be approved by the Head of the Procuring Entity (HOPE) and must be consistent with its duly approved yearly budget;

• The APP shall be formulated and revised only in accordance with the guidelines set forth in the IRR.

Section 7, R.A. No. 9184 (cont.):

• No government Procurement shall be undertaken unless it is in accordance with the approved APP of the Procuring Entity;

• The APP shall be approved by the Head of the Procuring Entity (HOPE) and must be consistent with its duly approved yearly budget;

• The APP shall be formulated and revised only in accordance with the guidelines set forth in the IRR.

APP should be maintained and updated regularly

In the consolidation of PPMPs, the BAC may adopt a strategy through which similar items of procurement are packaged into one procurement undertaking and under a single PPMP, in which the original PPMPs shall be consolidated and revised.

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;

APP should be maintained and updated regularly

In the consolidation of PPMPs, the BAC may adopt a strategy through which similar items of procurement are packaged into one procurement undertaking and under a single PPMP, in which the original PPMPs shall be consolidated and revised.

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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*PPMP – Project Procurement Management Plan*APP – Annual Procurement Plan

PROCUREMENT PLANNING

End User Budget OfficeBAC Sec /

BACApproving Authority

Prepare PPMP

Evaluate PPMP and include in

budget proposal

Review and consolidate

PPMP into APP

Approve GAA/

Corporate Budget/

Ordinance

Revise PPMP

Finalize procurement

mode

HOPE or 2nd in rank

approves APP

*PPMP – Project Procurement Management Plan*APP – Annual Procurement Plan




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Form A Procurement of common use Supplies, Materials and Equipment (SME) from Procurement Service, DBM (PS,DBM)

Form B Procurement of SMS not available from PS,

DBM Form C Goods and Services for Programmed Projects

Must be in accordance with the existing accounting and auditing rules and regulations.

Procurement Planning

Reminders:

Guidelines for the Prevention and disallowance of Irregular Unnecessary Excessive Extravagant or Unconscionable

(IUEEU) expenditures or uses of government funds and properties (COA Circular 2012-003 dated 11/29/2012

Procurement Planning

Reminders:

Irregular Expenditures

Guidelines for the Prevention and disallowance of Irregular, Unnecessary, Excessive, Extravagant or Unconscionable (IUEEU) expenditures or uses of government funds and properties (COA Circular 2012-003 dated 11/29/2012GAAM , NGAS, PD1445

The term “irregular expenditure” signifies

an expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognitions in laws.

incurred if funds are disbursed without conforming with prescribed usages rules and discipline.

A transaction conducted in a manner that deviates or departs from, or which does not comply with standards set

UnnecessaryExpenditures


The term pertains to expenditures which could not pass the test of prudence or the diligence of a good father of a family. Thereby denoting non-responsiveness to the exigencies of the service. Unnecessary expenditures are those not supportive of the implementation of the objectives and missions of the agency relative to the nature of its operation. An expenditure that is not essential or that which can be without loss or damage to property. The mission and the thrusts of the agency incurring the expenditures must be considered in determining whether or not an expenditure is necessary.

ExcessiveExpenditures


The term “excessive expenditures” signifies unreasonable expense or expenses incurred at an immoderate quantity and exorbitant price. It also includes expenses which exceeds what is usual or proper, as well as expenses which are unreasonable high and beyond just measure or amount. They also include expenses in excess of reasonable limits.

ExtravagantExpenditures


The term “ extravagant” signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. The expenditures are immoderate, prodigal, lavish, luxurious, grossly excessive and injudicious.

Unconscionable Expenditures

The term “unconscionable expenditures” pertains to expenditures which are unreasonable and immoderate, and which no man in his right sense would make, nor a fair and honest man would accept as reasonable, and those incurred in violation of ethical and moral standards.


Honoraria paid to member of Bids and Awards (BAC) Committe and Technical Working Group (TWG) in excess of the rates provided under DBM Circular No. 2004-5A dated October 7, 2005 and for the procurement activities pertaining to the contracts not yet awarded to the winning bidder (Joseph Peter Sison, et.al. Vs. Rogelio Tablang, et al.. . . GR No. 177011 dated June 5, 2009)

Cases that are considered “Irregular”


Expenses for advertisements of anniversaries, etc. In news papers, TV or radio merely for publicity or propaganda purposes except when the nature of the agency’s mission would require such expenses as in the case of promotion of trade and business

Cases that are considered “Irregular

expenditure”

Cases that are considered “Unnecessary expenditure”Hiring of consultants rendering services not

aligned/related to the mandate/thrusts of the hiring Agency and/or the agreed consultancy period including renewals.

Construction of buildings and/or procurement of equipment not actually needed or without any intended purpose, not completed and could not be properly maintained or operations sustained.

Continuous repair of vehicles and equipment already considered beyond economical repair as evidenced by frequent breakdown and non-use after repair.

Cases that are considered “Excessive expenditure”Overpricing of purchases, characterized by grossly exaggerated or inflated quotations, in excess of the current and prevailing market price by a 10% variance from the purchased item.

Payment of repair of government equipment at a cost exceeding 30% of the current market price of the same or similar equipment.

Provision of mobile phone, whether postpaid line subscription or prepaid, in excess of one unit for each entitled officials which should not be lower than Division Chief rank.

Cases that are considered “Extravagant expenditure”Purchase of wines, liquors, cigars and

cigarettes, except when served during state functions and government-sponsored international conferences and conventions.

Payment for rent of expensive halls or rooms in luxury hotels or restaurant used for meetings/seminars and other official functions.

Conduct out -of-town meeting which can be made within the office premises.

Procurement and use of luxury vehicles by government officials, except those allowed under Section 6 of AO No.3 issued February 27, 2001

Cases that are considered “Unconscionable expenditure”

Live-in seminar in five star hotels which significant number of participants and unreasonable period of time.

Overpricing in significant amount exceeding 100% of the current and prevailing market value

What do we do if we don’t know the

specifications of the item we need to

procure?

The End-user is responsible for the terms of reference, specifications and

all the details about the item they needed.

The end-user may request assistance

from the people who have knowledge about the item/project. The

Technical Working Group (evaluators) that

could share their expertise and knowledge.

The Procurement Office can also

recommend possible sources or suppliers who have expertise

about the item.

The procurement office must maintaine suppliers registry

Whatever the end-user and TWG have agreed upon:

prepare Market Analysis (Supported by at least three quotations) then attach it to your Project Procurement Management Plan (PPMP).

indicate the general description of the item that you are requesting for. Major Specifications, such as product usage, size, features that you are looking for, number of people who will use it and where the item will installed or connected, must be indicated in the PPMP. The Procurement Office will use this information in preparation of Annual Procurement Plan (APP).

Dr. Carina S. Cruz

[email protected] Floor DILG NAPOLCOM CenterEdsa corner Quezon Avenue, West Triangle, Quezon City

Documents

refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A. 9184)