Procedure for the procurement of consulting service - DOH

DOH CUSTOMIZED PROCUREMENT MANUAL VOLUME 4 2010
Procurement planning entails ensuring that plans for procurement are linked to budgets, preparing
the PPMP and consolidating all PPMPs into the APP. Formulating the PPMP involves identifying
the procurement project requirements, writing the TOR, determining the ABC, identifying the
schedule of milestone activities, and determining the method of procurement.
The PPMP is then transformed into the bidding documents, which ought to contain all the
information a prospective bidder needs to prepare its bid. Therefore, in preparing the bidding
documents, one has to ensure that these accurately and comprehensively reflect the main
elements of the PPMP. One also has to make sure that the documents are of the kind and form
prescribed by the revised IRR and these Manuals.
The pre-procurement conference is the forum where all officials of the Procuring Entity involved in
the project, including the concessionaires, where necessary, meet to discuss all aspects of the
said project and to determine the readiness of the Procuring Entity to undertake the procurement.
The conference focuses on are the technical specifications, the ABC, the appropriateness and
applicability of the recommended method of procurement, and the availability of pertinent budget
releases, among others.
3. RULES AND GUIDELINES
3.1 APPROVED BUDGET FOR CONTRACT
The ABC is the approved budget for the contract duly approved by the HOPE, as
provided for in the budget of the procuring entity in the GAA.
Thus, the ABC referred to in R.A. 9184 and the revised IRR basically refers to the
proposed budget for the project approved by the Head of the Procuring Entity based on
the APP as consolidated from various PPMPs. 1
3.2 FACTORS TO BE CONSIDERED
In determining the ABC keeping in mind that contract prices are fixed prices, the Project
Management Office or end-user unit, with the assistance of the Technical Working Group
(when necessary), must consider the different cost components, namely:
a. The cost or market price of the service itself;
b. The cost of money, to account for government agencies usually buying on credit
terms; and
c. Inflationary factor, since the planning phase is usually done one year ahead of
the actual procurement date.
1
For FAPs, reference to the standard bidding documents for the project should be made to determine the applicability of the ABC.
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