A procurement management plan is a plan that defines requirements for a particular project

and lays down the steps required to get into the final contract. Here, the specific project
means the process required to purchase or acquire the products or services the organization
deals in.
Contract Type
(All items and services to be procured for this project will be solicited under firm-fixed price contracts.
The project team will work with the Agency Fiscal Office and Procurement staff to define the item types,
quantities, services and required delivery dates. The Request for Proposal (RFP) Coordinator will then
solicit bids from various vendors in order to procure the items within the required time frame and at a
reasonable cost under the firm fixed price contract once the vendor is selected.)

Process of PR
(The Senior Project Director along with Agency staff will meet with the CPO office to determine the type of
procurement model that best meets the need of the project. If necessary, a Request for Information (RFI) may be
released as a first procurement step to gather information. Based on the Vendor responses to the RFI, the CPO office and
the Agency will determine the procurement process that must be followed, such as non-competitive contract request,
competitive negotiation, alternative procurement, RFP cost only or RFP.

The procurement documents must be submitted for OIR endorsement for all technology projects, the Department of
Human Resources must approve training for State employees, and the CPO and Comptroller offices must provide the
final approval)

1 Preparing for Procurement of Goods and Services

The end user (AMD-PhilMech) is responsible for developing its own plans, activities, and projects
and incorporating them into the Project Procurement Management Plan (PPMP). Composing the
PPMP involves identifying the project requirements, writing the technical specifications, determining
the Approved Budget for the Contract (ABC), identifying the schedule of milestone activities and
determining the method of procurement. The PPMP will be evaluated by the Administrative Division
(AD) before being forwarded to the BAC Secretariat for consolidation into an Annual Procurement
Plan (APP).

1.1 Procurement Planning

 What are the factors to be considered in planning for the procurement of Goods?
The end-user should consider the following factors in planning:
1) Nature of the Goods to be Procured – can be categorized into:
a) Common-use supplies – products, materials, and equipment that are frequently
used in procuring entities' day-to-day activities in the implementation of the
activities
b) Inventory items – include common-use supplies, goods, materials and equipment
that are not in the Price List of the PS-DBM but are regularly used and kept on stock
by the Procuring Entity.
c) Non-common use supplies – may include equipment or supplies that are project-
specific
d) Services - refer to general support services, except consulting services and
infrastructure projects, which may be needed in support of the transaction of public
businesses or in the pursuit of any government undertaking, project or activity
2) Availability of the Goods or Services in the market.
The supply market can occasionally influence the mode of procurement. As a result,
the procurement unit or office should research the supply market to identify the goods'
availability. Universally available goods should be purchased through public bidding,
alternative procurement methods may, however, be appropriate in some circumstances.
3) Obsolescence, operation, and maintenance of equipment/non-consumable Goods.
 When purchasing equipment, the Procuring Entity must evaluate the commodities'
operating and maintenance requirements. These factors include the availability and
pricing of spare parts on the local market, as well as the skills required to operate and
maintain the equipment.

 “Technical Specifications”?
Defined as the physical nature of the goods or services, including the Procuring Entity's
needs in terms of the functional, performance, environmental interface, and design standard
requirements that the goods or services must meet. When products testing is required by the
contract, the technical specifications must include the testing parameters.

 Considerations in setting the technical specifications of good to be procured

The PMO or end-user unit must evaluate the project or procurement's objectives while
selecting the technical specifications of the items it will acquire, as well as the standards that
the goods must meet in terms of function, performance, and environmental impact, design
and/or user interface It should also perform a market survey that includes a review of
available products or services, industry advancements or standards, and product or service
standards set by an approved government organization such as the Bureau of Product
Standards, ISO9000, or other regional or worldwide organizations.
Philippine standards, as set forth by the Bureau of Product Standards, must be obeyed in
most cases. When there are no Philippine standards for a product, the standards of the
country of origin or another international agency may be used. Product information can be
found through product brochures, technical journals, industry newsletters, the industry
itself, and the Internet. It is highly recommended that do a comparison analysis of the market
possibilities and their relevance to the Project's requirements. Technical advice should also
be sought from in-house experts who are members of the TWG or the PMO.
It is vital to remember that the IRR-A forbids the use of brand names. Goods
procurement specifications must be based on relevant qualities and/or performance
requirements. As a result, a general product or service description should be used.

 “Approved Budget for the Contract” or the ABC

The ABC is the contract's budget, which has been approved by the Head of the Procuring
Entity.

 Factors that should be considered in determining the ABC

The PMO or end-user unit, with the help of the TWG (if necessary), must evaluate the
following cost components when determining the ABC:

1. The cost or market price of the product or service itself;

2. Incidental expenses like freight, insurance, taxes, installation costs, training costs, if
necessary, and cost of inspection;
3. The cost of money, to account for government agencies usually buying on credit terms;
4. Inflationary factor, since the planning phase is usually done one year ahead of the actual
procurement date;
5. Quantities, considering that buying in bulk usually means lower unit prices; and
6. The supply of spare parts and/or maintenance services, if these are part of the contract
package.

If the project or contract contains a foreign element, a currency valuation adjustment

factor should be included to account for fluctuations in exchange rates between the planning
phase and the actual procurement date. If available, the PMO or end-user unit may request
advise from the Bangko Sentral ng Pilipinas (BSP) or refer to BSP projections.

1.2 Preparing the Bidding Documents

 Bidding Documents
The Procuring Entity issues bidding documents to give prospective bidders with all of
the information they need to make their bids and define clearly as:
1. The objectives, scope and expected outputs and/or results of the proposed contract;
2. The technical specifications of Goods to be procured;
3. Expected contract duration, the estimated quantity in the case of procurement of
goods, delivery schedule and/or time frame;
4. The obligations, duties and/or functions of the winning bidder; and
5. The minimum eligibility requirements of bidders, such as track record to be
determined by the Head of the Procuring Entity. (IRR-A Section 17.2)

 Components of Bidding Documents

The Philippine Bidding Documents (PBDs) contain the following:
1. Invitation to Apply for Eligibility and to Bid (IAEB);
2. Instructions to Bidders (ITB);
3. Bid Data Sheet (BDS);
4. General Conditions of Contract (GCC);
5. Special Conditions of Contract (SCC);
6. Schedule of Requirements;
7. Technical Specifications of the Goods and Services to be procured; and
8. Sample Forms as annexed in the PBDs.

The bidding documents' specifications and other parameters must represent minimum
requirements. As a result, a bidder may be allowed to submit a superior offer. Thus, as a
result of this superior offer, no premium or bonus must be offered in the bid evaluation.

 In addition to properly crafted Bidding Documents, what other practices may a

Procuring Entity observe to ensure a successful procurement?

1. 1. All prospective bidders should be provided the same information, and should be
assured of equal opportunities to obtain additional information on a timely basis.
2. Procuring entities should provide reasonable access to project sites for visits by
prospective bidders.
3. For complex supply contracts, particularly for those requiring refurbishing existing
equipment, a pre-bid conference may be arranged whereby potential bidders may
meet with the Procuring Entity’s representatives to seek clarifications (in person or
online). Minutes of the conference should be provided to all prospective bidders (in
hard copy or sent electronically).
4. Any additional information, clarification, correction of errors, or modifications of
bidding documents should be sent to each recipient of the original bidding
documents in sufficient time before the deadline for receipt of bids to enable
bidders to take appropriate actions. If necessary, the deadline should be extended.

 Who shall participate in the preparation of the Bidding Documents?

1. The BAC;
2. The TWG;
3. The end-user unit/PMO;
4. Consultants, if any; and
5. The BAC Secretariat / Procurement Unit.

 When should be the preparation of the Bidding Documents?

The bidding materials must be prepared in advance of the pre-procurement conference.
It should be ensured that these documents are ready and available for issuance to
 prospective bidders on the day the Invitation to apply for Eligibility and to Bid (IAEB) is first
announced after the conference and before the advertisement and/or posting of the IAEB.

 What various types and sizes of contracts may be provided in the Bidding Documents?
The bidding documents should clearly specify the type of contract that will be entered
into and include the contract clauses that are appropriate for that form of contract.
Payments are made based on a lump sum, unit pricing, or a combination of both in the most
frequent types of contracts.

 Methodology: How are the Bidding Documents prepared?

 What is a Bid Security?
 What are the forms of Bid Security and the corresponding amounts required?
 Who determines the form of the Bid Security to be submitted by bidders?
 What is the period of validity of Bids and the corresponding Bid Security?
 In what currency shall the Bid Security be denominated?
 What happens if a bidder does not submit a Bid Security?
 When should Bid Securities be returned to the bidders?
 What is a Performance Security?
 When shall the Performance Security be posted by the Bidder with the LCRB?
 What are the forms of Performance Security and the corresponding amounts required?
 Who determines the form of the Performance Security to be submitted by winning bidder?
 In case of amendments in the contract price, will there be a corresponding change in the
amount of the Performance Security?
 When may the Performance Security be released?
 Who are the parties involved in the posting of the Performance Security?
 Methodology: How is the Performance Security posted?

1.3 Conduct of the Pre-Procurement Conference

 What is a Pre-procurement Conference?
 Why is a Pre-procurement Conference necessary?
 When do you conduct a Pre-procurement Conference?
 Who calls for a Pre-procurement Conference?
 Who are the participants of a Pre-procurement Conference?
 What should a Pre-procurement Conference achieve?

2 Instructions on the Procedural Steps for the Procurement of Goods and

Services
STEP 1 ADVERTISE AND POST INVITATION TO APPLY FOR ELIGIBILITY AND TO BID
 What is the Invitation to Apply for Eligibility and to Bid (IAEB)?
 Why do you post an Invitation to Apply for Eligibility and to Bid?
 What does an Invitation to Apply for Eligibility and to Bid contain?
 When, where, and for how long do you post an Invitation to Apply for Eligibility and to Bid?
 Which unit shall ensure that the advertising/posting requirements of the IAEB are complied
with?
 Methodology: How are IAEBs advertised and posted?

STEP 2 ISSUE THE BIDDING DOCUMENTS

 When should the bidding documents be made available to prospective bidders?
 How much must prospective bidders pay for the Bidding Documents?
 Methodology: How are the Bidding Documents issued?
 What are the responsibilities of a prospective bidder with regard to the Bidding Documents?
STEP 3 CALL A PRE–BID CONFERENCE AND, IF NECESSARY, ISSUE
SUPPLEMENTAL/BID BULLETINS
 What is a Pre-bid Conference?
 When do you hold a Pre-bid Conference?
 Who must attend the Pre-bid Conference?
 How should the participants conduct themselves during the Pre-bid Conference and other
stages of the procurement process?
 Methodology: How is the Pre-bid Conference conducted?
 What happens if there is a need for clarification or interpretation on the Bidding Documents
after the Pre-bid Conference had been held?
 Who are involved in the Issuance of the Supplemental/Bid Bulletin?
 Methodology: How is a Supplemental/Bid Bulletin issued?

STEP 4 RECEIVE AND OPEN THE ELIGIBILITY AND BID ENVELOPES

 Who may be eligible to participate in a public bidding for goods?
 Are foreign suppliers allowed to bid?
 When is a prospective bidder eligible to bid?
 What are the minimum eligibility requirements?
 What is the purpose of requiring an NFCC, a credit line or a certificate of a Holdout on Cash
Deposit that is equal to the ABC?
 What are the eligibility requirements of a prospective foreign bidder?
 How and when must the Eligibility Envelope be submitted?
 What happens if a bidder fails to submit its eligibility envelope and bid on the date, time and
place indicated in the IAEB?
 When should the eligibility envelope be opened?
 What is a Bid?
 What are the contents of the Technical Proposal?
 What are the contents of the Financial Proposal?
 When should Bids be submitted?
 Who are the parties involved in the receipt and opening of eligibility envelopes and bids?
 Methodology: How are the eligibility and bid envelopes opened?
 What happens if only one bidder submits its eligibility and bid envelopes?
 What can a prospective bidder do if it is found ineligible or declared non-compliant with the
technical or financial requirements?
 What happens if questions/doubts have been raised about the eligibility of a prospective
bidder after it had been declared as eligible?
 Manual of Procedures for the Procurement of Goods and Services
 What happens if only one bidder is declared eligible?
 What is disqualification?
 Other than a declaration of ineligibility, is there another way by which a manufacturer,
supplier or distributor may be disqualified from bidding?
 What happens if no prospective bidder is declared eligible?
 What happens if only one bidder passes the Preliminary Examination of Bids?
 What happens if a bidder fails to comply with the Technical and Financial requirements of
the Bid?
 Can a bidder withdraw its bid?

STEP 5 EVALUATE THE BIDS

 What is the purpose of Bid Evaluation?
 When should the bids be evaluated?
 Who are the participants in the Bid Evaluation Process?
  Methodology: How are bids evaluated?
 Are there special privileges for cooperatives in the supply of goods to government entities?
 What may be done if all prospective bidders are unable to comply with the requirement of
having a single contract whose value is at least fifty percent (50%) of the ABC of the project
to be bid?
 What happens if a bidder does not accept the arithmetical corrections done by the BAC on its
bid?
 What happens if no bid complies with all bid requirements?
 How shall Domestic Preference be applied during bid evaluation?
 How is the right to match undertaken in bidding of provincial projects?
 What rules govern the lease of Computers, Communications, Information and Other
Equipment?

STEP 6 POST-QUALIFY
 What is Post-qualification?
 What does Post-qualification entail?
 What is the Timeline for the conduct of Post-qualification?
 Who are involved in the conduct of Post-qualification?
 Methodology: How is Post-qualification conducted?
 What happens if the bidder with the LCB fails Post-qualification?
 What happens if all bidders fail Post-qualification?
 When may the Procuring Entity exercise its right to reject bids, declare a failure of bidding,
or not award the contract?

STEP 7 AWARD THE CONTRACT

 What is the rule on Contract Award?
 What is the Timeline for Contract Award?
 Who are involved in the Award of the Contract?
 Methodology: How is a contract awarded?

STEP 8 HAVE THE CONTRACT SIGNED AND APPROVED AND ISSUE THE NOTICE TO
PROCEED?
 When must the winning bidder and the Procuring Entity enter into a contract?
 What are the Timelines to be considered with respect to contract approval?
 When should the Procuring Entity issue the NTP?
 When is a contract “effective”?
 Who are the Parties involved in Contract Signing and Approval and Issuance of the NTP?
 What documents form part of the contract?
 Methodology:
 What are the rules governing the review and approval of government contracts?
 What happens if the bidder with the LCRB or SCRB refuses or is unable, through its own
fault, to post the performance security and sign the contract within the prescribed period?
 What happens if the failure of the bidder with the LCRB or SCRB to sign the contract within
the prescribed period is not its own doing?

1.0 VENDOR MANAGEMENT

The Project Leader is ultimately responsible for managing bidders. In order to ensure
the timely delivery and high quality of products from the company, the Project Leader or
his/her designee will meet weekly with the purchasing and contracts department along
with each bidder to discuss the progress for each procured item. The purpose of these
meetings is to review all documented specifications for each product as well as to review
the quality test findings. This forum will provide an opportunity to review each item’s
development or the service provided in order to ensure it complies with the requirements
established in the project specifications. It also serves as an opportunity to ask questions or
modify contracts or requirements ahead of time in order to prevent delays in delivery and
schedule. The project Leader will be responsible for scheduling this meeting on a weekly
basis until all items are delivered and are determined to be acceptable.
 Identifying the List of Equipment
PhilMech PMC HQ KOICA PH
Will prepare list of equipment Will review the list submitted; Will review the documents
for the procurement of goods for commments and suggestion submitted
and services To be submitted to KOICA PH Call for a meeting for issues
To be shared with PMC HQ and clarification

Prioritizing the List of Equipment for Procurement

PhilMech PMC HQ KOICA PH
Will make prioritization based Will review the priority list Will review the documents
on the commment and To be submitted to KOICA PH submitted
suggestion of PMC experts Call for a meeting for issues
To be shared with PMC HQ and clarification

Prioritizing the List of Equipment for Procurement

PhilMech PMC HQ KOICA PH
Will make prioritization based Will review the priority list Will review the documents
on the commment and To be submitted to KOICA PH submitted
suggestion of PMC experts Call for a meeting for issues
To be shared with PMC HQ and clarification