The Importance of Procurement Planning and Budgeting in Government Functions
Procurement planning and budgeting play a critical role in the efficient discharge of governmental functions. To ensure fiscal discipline, all procurements must be within the approved budget of the Procuring Entity and meticulously planned.
The Annual Procurement Plan (APP) is a crucial tool in this process. It outlines the procurement projects that are necessary for the day-to-day operations or in pursuit of the principal mandate of the Procuring Entity. The APP also includes provisions for foreseeable emergencies based on historical records.
Infrastructure projects require additional consideration in the APP. The timing and phasing of project activities, such as engineering design and acquisition of right-of-way site or location, are taken into account to reduce project costs.
No procurement should be undertaken unless it is in accordance with the approved APP. The APP must be consistent with the yearly budget of the Procuring Entity and approved by the Head of the Procuring Entity or their designated representative.
The formulation and revision of the APP follow specific guidelines. Upon issuance of the budget call, the Procuring Entity prepares its indicative APP for the next calendar year, reflecting priorities and objectives to support its proposed budget.
The end-user or implementing units of the Procuring Entity formulate their respective Project Procurement Management Plans (PPMPs) as part of the APP. These plans outline whether projects will be contracted out, implemented by administration, or consigned. They also specify the type and objective of contracts, extent/size of contract scopes/packages, and procurement methods to be adopted.
In certain cases, procurement tasks may be outsourced as provided in Section 7.3.3 of the IRR.
This survey aims to gather insights on the understanding and importance of procurement planning and budgeting in the efficient discharge of governmental functions.