Presentation on theme: "One UP. One University. One Procurement System."— Presentation transcript:
1One UP. One University. One Procurement System. Isagani L. BagusActing Chief, UP System SPMOUP Manila25 November 2014
2House Rules Turn off or put in silent mode all mobile phones Take phone calls outside the Conference RoomAddress questions/clarifications to the speakerActive participation is highly encouragedStay awake
3Training ObjectivesTrain the UP Manila personnel on procurement process as per Republic Act 9184 Implementing Rules and Regulations;To have a uniform interpretation on the procurement process and procedures; andGather feedback that shall serve as a guide to help UP improve the system on procurement in all aspects and improve the quality of service that University is providing.
4Is Procurement a Problem in UP Manila? Question?Is Procurement a Problem in UP Manila?
6Common Questions in all CUs Why procurement process is very long?Why it took procurement more than a year?Why specifications is wrong?Why failed bid?Why wrong posting in PhilGEPS.Announcement?Why … Why …. Why
7Solution to the Questions? B. L. A. M. E.BakitLagiAko angMaliEh di naman
8P.B.B. on ProcurementPProcurementProcessBBestPRACTICE
9P.B.B. on ProcurementPProcurementProcessBBadPRACTICE
11Present Status on Procurement of UP: Policy Implementation
12Constituent U’s of UP UP Min UP Cebu UP System UPD UPM UPLB UPV UPB UPOUUP MinUP Cebu
13UP: One UP. One University. One Procurement System UP SystemUPDUPMUPLBUPVUPBUPOUUP MinUP Cebu
14Republic Act 9184? Procurement Law of the Philippines Includes the following:Implementing Rules and Regulations on ProcurementProcurement Policy and Procedures of the PhilippinesExecutive OrdersGovt. Procurement Policy Board (GPPB) ResolutionsPhilGEPS RequirementsOthers: COA, UP, DBM, Procurement Service
16Nature of Procurement Infra Services Goods Example: equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, procurement of supplies and materials, etc.InfraExample: construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, etc.ServicesExample: requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the GOP to undertake 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.
21End-User Prepare the following: PPMP Technical Specifications ParticularsRemarksSpecifications- Consult the expertComplete and generic (No brand please/equivalent)Do not copy brochure/catalogue being issued by supplierRange for minimum and maximumAfter SalesWarrantyInsuranceTraining of personnelDelivery periodBe realistic
22End-User Approved Budget Ceiling Particulars Remarks Cost Do not copy the brochure/catalogue provided by supplierValue Added TaxIncluded 12% VATAdditional WarrantyRequest for a costing if there is additional warrantyBid DocumentsCost of Bid documents might also consider in computing ABCValue for MoneyDo not delay payment to supplier/s
23Budget Officer Issue Budget Clearance / Availability of Funds DBM Funds, UP Funds, or other source of fundsExpiration / End of Life of SARO / Budget Clearance
24SPMO / BAC Secretariat Assist the BAC in the conduct of its functions Serve as the main support unit of BACPost the Invitation to Bid in PhilGEPS, Bulletin Board, Website, and Newspaper (if necessary)Receive suppliers queries/questions and other documents address to BACPrepare the bidding documents (before and after procurement)
25Members of the BAC Advertise and/or post the Invitation to Bid Conduct pre-procurement and pre-bid conferencesDetermine the eligibility of prospective biddersReceive bidsConduct the evaluation of bidsUndertake post qualification proceedingsRecommend award of contracts the event to the HOPE
26Technical Working Group Review the specifications submitted by end-user during pre-procurement conferenceConduct evaluation on the specifications submitted by end-userEvaluate the proposal of supplier on technical specificationsConduct ocular inspection if necessary
27Accountant Issued Availability of Funds Evaluate the NFCC submitted by bidder/sObligate the funds after deliveryPrepare other COA requirements
28Internal Auditor Serve as observer of the Public Bidding Re-examined the procurement if compliant with Republic Act 1984 and COA provisions
29ObserversTo enhance the Transparency of the procurement process, the BAC shall in all stages of the procurement process, invite, in addition to the representative of the COA at least two (2) observers to sit in procurement proceedingsThe observer should meet the criteria of observer as set forth in the IRR
30Head of Procuring Entity Approved or Disapprove the recommendation of the BACConstitution of BAC membersto award the contract to the winning bidderBAC Resolutions
31Delineation of Authority Delegated Approval CeilingsBoard of RegentsConstruction and repair, including construction management servicesPurchase of equipment, materials, supplies, and servicesAbove Php75MPresidentPhp75MChancellorsUPD, UPLB, UPM, UPV:Php25MUPB, UPMin, UPOU, and UP CebuPhp15M
35What is Small Value Procurement? Where the procurement does not fall under Shopping in Section 52 of the IRR and the amount involved does not exceed the thresholds prescribed in IRRRequirements: Three (3) quotations from Bona fide SuppliersThresholds: Below Php50, and below
36Flow Chart for Small Value P50,000 and below Purchase RequestEnd-UserBudget ClearanceBudget OfficePosting to PhilGEPSSPMO/BAC Sec.Delivery and PaymentPreparation of Procurement DocumentsSPMO
37NEW Flow Chart for Shopping P50,000 and below Purchase RequestEnd-UserBudget ClearanceBudget OfficePosting to PhilGEPSSPMO/BAC Sec.Delivery and PaymentPreparation of Procurement DocumentsSPMORequest for3-Quotations
39ShoppingShopping is a method of procurement of goods whereby the procuring entity simply request for the submission of price quotations for readily available off the-self goods or ordinary/regular equipment to be procured directly from the supplier of know qualificationsRequirements: at least three (3) price quotations from bona fide suppliers; Purchase Request, Budget Clearance, Complete specifications (note: no brand name, and lock-in to a certain brand/specifications)
40Shopping PRESENT Flow Chart for P100,000 up to P499,999.99 Purchase RequestEnd-UserBudget ClearanceEnd-User (at least 2 days)Posting to PhilGEPSSPMO (at least 7 – 9 days)Delivery and PaymentPreparation of Procurement DocumentsSPMO (within 3 days)
42Public BiddingAll procurement shall be done through competitive bidding, except as provided in Rule XVI of RA 9184 – IRRAmount subject to Public Bidding: Php500, and aboveRequirements:Budget Clearance (dont use catalogue price as much as possible, includes cost of bid documents, value added tax)Purchase Request (conduct intial canvass from bonafide supplier)Complete Specifications (dont copy the catalogue specifications, no lackin)If infrastructure/renovation: plans are needed, bill of quantities of materials, complete specifications)If services (Terms of Reference)PhilGEPS posting (Newspaper posting if Php2M and above)
43Public Bidding: ABC Php500 to P2 Million Purchase RequestEnd-UserBudget ClearanceBudget OfficePosting to Phil GEPSSPMO1-dayPublic BiddingBAC(12 days)Pre-Bidding Conf.(7-days)Pre-Proc. Conf.SPMO3-days
44Public Bidding: ABC Php2 Million and Above Purchase RequestSpecificationsProposed BudgetBudget ClearanceBUS/BURAvailability of FundsPre-Proc.SPMO/BAC Sec.BACPhilGEPS/ Newspaper/ Bulletin Board- SPMO/BAC SecPre-Bidding ConferenceTWG/E.U/Observer- BAC/BAC Sec.Public Bidding
45Simple Question and Answer Can we bid less than Php500,000.00?Answer:YesWhy?The Default of procurement is public bidding, when in doubt ….. Public bid
47NegotiatedProcuring entity directly negotiates a contract with a technical. Legally and financially capable supplier, contractor or consultantCases to undergo Negotiated:Two Failed BiddingEmergency casesTake-over of contractsAdjacent or contiguousAgency to AgencyProcurement AgentHighly Technical Consultants
48Repeat Order Procurement of goods from the previous winnig bidder Unit price of the repeat order must be the same as or lower than those in the original contractNot result to splitting of contractsWithin six (6) months from the effectivity of the contract stated in the NTPNot to exceed 25% of the quantity of each item in the original contract
49Emergency PurchaseIn case of imminent danger to life or property during a state of calamity, or when the time is of the essence arising from natural or man-made calamities or other causes, where immediate action is necessaryActors in Emergency Purchase: Argentinian and Russian
50Flow Chart End-User BAC Chair Write a letter of Request for Emergency Purchase after purchasing of Goods, Transportation,And other expensesSPMORecommend or not to recommend the request for emergency purchaseBAC ChairApprove or dis-approve the request for emergency purchaseAccounting
51New Flow Chart: Emergency Purchase End-User Prepare for Voucher with supporting documentsAccounting Office Evaluate the reimbursementCash Office Payment
53Annual Procurement Plan (APP) Procurement Planning and the Preparation of the Annual Procurement Program/Plan and Amendatory/Supplementary Program/Plan
54Annual Procurement Plan Procurement Planning is the first step in the procurement process. This may consist of the preparation of a procurement plan or procurement program.An APP refers to the itemized list prepared by the Head of the Agency showing the kind, estimated quantity, estimated cost, description of supplies together with the balance on hand, if any, required by the agency for the ensuing fiscal year.
55Applicable Laws on APPSection 3.2 of the IRR of E.O No. 302 dated Feb. 19, (Procurement Planning)Procurement of goods shall be undertaken according to a procurement plan that the agency concerned shall formulate to ensure that the goods to be procured are available when needed.Section 424 of GAAMAn Annual Procurement Program showing itemized quantity, description and estimated cost of supplies/materials/equipment required for a fiscal year shall be prepared by all agencies of the national government
56The APP shall include provisions forforeseeable emergencies based on The APP shall include provisions forforeseeable emergencies based on historical recordsNo procurement shall be undertaken unless it is in accordance with the approved APPThe end-user units shall prepare the respective Project Procurement Management Plan (PPMP) for the different programs, activities, and projects (PAPs)Updating of the PPMPs and the consolidated APP shall be undertaken every 6 mons or as often as may be required by the HOPE.
57Forms of PPMP and APPPPMP PPMP.docAPP APP Format.xls
62UP System APP and PPMP Php103,281,338.03 UPS Office Goods Service InfralTOTAL72,752,671.333,528,666.7027,Php103,281,338.03
63Illustrative Case Nature: Purchase of medicines Annual Procurement ProgramDecision No.:COA Decision No dated Dec. 1, 1992.
64Illustrative CaseParticulars: This is an appeal dated January 20, 1992 of the Executive Director, Philippine Trade Training Center (PTTC) to lift the disallowance on the purchase of medicines amounting to P4, The amount was disallowed by the Auditor for lack of legal basis for the charging of the expenditure to Fund 101 object codes 07(supplies) and 19(representation expenses). The Executive Director, in his appeal cited the provision of Occupational Safety and Health Standards Law which states that every employer including the government shall keep in the workplace a minimum medical facilities listed in Table 47 of the law.
65Illustrative CaseThe facilities listed therein maybe substituted with other comparable medicines. The appeal was granted. The cost of the medicines/medicinal supplies purchased can be validly charged against the allotment for supplies and materials (07) under Fund 101 as long as these medicinal supplies are included in the Annual Procurement Program of the agency in support of the Work and Financial Plan of the agency as approved by the Department of Budget and Management (DBM) or to the allotment for extraordinary and miscellaneous expenses (18) authorized under Section 26 of the 1991 General Appropriations Act.
66Benefits of PPMP and APP An effective plan saves time and moneyAn effective plan serves as a conduit to achieving entity’s objectivesAn effective plan ensures compliance with regulatory policiesAn effective plan provides a framework to guide procurement officers in the achievement of their tasks and duties.
70Guidelines on Ordering Agreement GPPB Resolution dated 27 January 2012Expands the application of Ordering Agreements to the following:Expendable and Non-expendable GoodsServices for Hotel Accomodation, Air Travel, and Repair and Maintenance
71Guidelines on Ordering Agreement Ordering Agreement – written agreement in the nature of an option contract between the PE and the winning bidder granting the PE the option to either place an order for any of the Goods identified in the Order Agreement List or not buy at all, within a given period of time.Order Agreement List (OAL) – list of Goods, and their corresponding technical specifications, scope of work, projected quantities, and fixed prices, subject of the Ordering Agreement.
72Guidelines on Ordering Agreement Delivery Order Contract – contract that authorizes and obligates a supplier/service provider to deliver certain quantity or render a particular service within an agreed period and at a fixed price per unit, item or identified service pursuant to an Ordering Agreement.
73Guidelines on Ordering Agreement PPMPAPPCompetitive BiddingOrdering AgreementDelivery Order ContractTermination
74Policy relative to DOLE DO 18-A DOLE DO 18-A (14 November 2011)Issued to address unscrupulous undercutting of contract rate by service providers (e.g., security and janitorial)Requires that administrative cost should not be less than 10% of the total contract cost
75Sample STANDARD COMPUTATION Payable Directly to Servicemen: 6,500.00 a. Basic Salaryb. Night Differentialc. Emergency COLAd. 13th Month Paye. Service Incentive Leave PayPayable as Employee’s Share:500.00a. Social Security Premiumsb. Philhealth Premiumsc. ECC Insurance Premiumsd. Pag-ibig Fund ContributionTotal Cost6,000.0010% Administrative Cost600.00Possible Bid Price6,600.00
76Policy relative to DOLE DO 18-A GPPB PM dated 30 November 2012Section 9 (b) (ii) of DOLE DO 18-A prohibits bidders from offering bids lower than the sum of the Total Reimbursable Costs and 10% Administrative Cost.Scenario results in the imposition of floor in bid prices.Runs counter to Section 31 of RA 9184.GPPB is of the view that Section 9 (b) (ii) of DOLE DO 18-A should be considered INVALID, and thus, cannot be a source of any right, duty, obligation, or power.Reiterated in GPPB PM dated 11 April 2014
78Bid Securing Declaration GPPB Resolution dated 27 January 2012Adopts Bid Securing Declaration as an additional form of bid securityA document/undertaking signed by the bidder committing to pay the corresponding fine and be suspended for a period of time from being qualified to participate in any government activity in the event of violation of any of the conditions stated therein as required by the GPPB Guidelines.
79Bid Securing Declaration Section 27, RA 9184All Bids shall be accompanied by a Bid Security, which shall serve as a guarantee that, after receipt of the Notice of Award, the winning bidder shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security. The specific amounts and allowable forms of the Bid security shall be prescribed in the IRR.
81Bid Securing Declaration Period of EffectivityReasonable period determined by the HOPENot to exceed 120 calendar days from the date of opening of bids (unless duly extended by the bidder upon the request of the HOPE)
82Bid Securing Declaration Automatic ExpirationBid validity period or any extension expiresAll bidders are declared ineligible or post-disqualified (no request for reconsideration filed/waiver is filed)LCRB/HRRB furnishes the Performance Security and signs the contract
83Bid Securing Declaration Grounds for EnforcementWithdraws bid during bid validity period; orFails or refuses to accept award and enter into contract or perform any and all acts necessary to the execution of the contract, in accordance with the bidding documents, after having been duly notified of the acceptance of its bid during the bid validity period
84Bid Securing Declaration PenaltiesAutomatic blacklisting for 2 years in ALL government procurement activities, andPayment of fineFor multiple bidders: difference between the evaluated bid prices of LCRB/HRB with the next LCRB/HRB.In case bidder is the LCRB/HRB, the amount shall be based on the difference between the evaluated bid price and ABC.For a single bidder: difference between the evaluated bid price and ABC.
85Payment of Fine Approved Budget for the Contract Penalty of 3rd Lowest or SingleThird Lowest or SinglePenalty of 2nd LowestSecond LowestPenalty of LowestLowestPhP 10,300,000.00PhP 700,000.00PhP 9,600,000.00PhP 400,000.00PhP 9,200,000.00PhP 99,001.00PhP 9,100,999.00Back
87Sale of Bidding Documents GPPB Resolution dated 24 February 2012Provides standard rates for the sale of bidding documentsRationalizes the feesRegulates price of Bidding DocumentsLessens the exercise of discretion of PEsEncourages market participation and competition
88Sale of Bidding Documents Approved Budget for the ContractMaximum Cost of Bidding Documents in PhP500,000 and below500.00More than 500,000 up to 1 Million1,000.00More than 1 Million up to 5 Million5,000.00More than 5 Million up to 10 Million10,000.00More than 10 Million up to 50 Million25,000.00More than 50 Million up to 500 Million50,000.00More than 500 Million75,000.00
90Policy on TWG Membership GPPB Resolution dated 27 April 2012Adopts an official position relative to HB 5366HB 5366 seeks to amend RA 9184 by appointing a “third party” from either a recognized academic institution or from a government office that is not part of the organizational structure of the procuring entity as a BAC member with respect to the procurement of highly technical equipment by the AFP and the PNP“Third party” seen to help in evaluation of eligibility of bidders and technical specifications imposed by the bidding documents
91Policy on TWG Membership GPPB Circular dated 3 August 2012Section 12.1 of the revised IRR of RA 9184 allows the BAC to create a TWG from a pool of technical, financial, and/or legal experts to assist in the procurement processTWG need not be limited to the employees or officials of the PEBAC may engage the assistance of other government personnel and officials, and consultants from the private sector and academe with proven expertise
94Submission of Letter of Intent GPPB Resolution dated 23 November 2012Deletes Sections and of the Revised IRR of R.A. 9184Provisions requiring the submission of a written LOI and/or application of eligibility together with the latest Class “A” Documents in case the procuring entity maintains a registry system using the PhilGEPS or its own electronic system.Rationale:Harmonize with the rules on the use of the GOP-OMRPrevent collusion among bidders
95Submission of Statement of Ongoing and Completed Contracts
96Submission of Statement of Ongoing and Completed Contracts GPPB Resolution dated 23 November 2012Amends Section 23.1(a)(iii)Statement of the prospective bidder of all its ongoing government and private contracts, including contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to the contract to be bid, within the relevant period as provided in the Bidding DocumentsStatement identifying the bidder’s single largest completed contract similar to the contract to be bid, except under the conditions provided for in Section of the IRR, within the relevant period as provided in the Bidding Documents in the case of goods.
98Financial Eligibility Requirement GPPB Resolution dated 30 July 2013Amends Secs. 23.1(a)(vi), , and of the GPRA IRRCredit line commitment (CLC) is NO longer an acceptable financial eligibility requirementONLY the computation of the NFCC will now be acceptedThe values of the current assets and current liabilities shall be based on the data submitted by the bidder to the BIR through its EFPS
100Submission of Tax Clearance GPPB Resolution dated 30 July 2013Amends Secs. 23.1(a) and 24.1(a) of the GPRA IRR, ITB Clause 12.1(a) of both the PBDs for Goods and Infrastructure Projects, and Eligibility Documents Clause 2.1 of the PBDs for Consulting ServicesTax clearance per Executive Order 398, Series of 2005, as finally reviewed and approved by the BIR.Amends Sec of the GPRA IRR, ITB Clause 29.2 of the PBDs for Goods, ITB Clause 28.2 of PBDs for Infrastructure Projects, ITB Clause 27.2 of the PBDs for Consulting Services to delete the tax clearance requirement
102Options for Bid Security GPPB Resolution dated 30 August 2013Amends Secs. 27.2, 27.5 and 39.2 of the GPRA IRR and the corresponding Clauses in the PBDsThe procuring entity shall indicate in the Bidding Documents the acceptable forms of bid security that bidders may opt to use, which shall include the Bid Securing Declaration provided in Section 27.5 of this IRR and at least one (1) other form, the amount of which shall be equal to a percentage of the ABC in accordance with the following schedule: