Procurement Planning

Planning of the procurement of goods and services shall be in accordance with the principles of government procurement as provided for under Section 3 Volume I of this Manual.

What are the factors to be considered in planning for the procurement of Goods?

The PMO or the end-user unit should consider the following factors which have an impact on contract packaging, the procurement method to be used, and other components of Procurement Planning as discussed in Volume 1 of these Manuals:

1. Nature of the Goods to be Procured. Goods may be classified into different categories, such as:

  1. common-use supplies;

  2. inventory items;

  3. non-common use supplies (which may include equipment or supplies that are project-specific); or

  4. services.

    �Common-use supplies� as defined in the IRR-A as those goods, materials, and equipment that are repetitively used in the day-to-day operations of procuring entities in the performance of their functions. For the purpose of the IRR-A, common-use supplies shall be those included in the Price List of the PS-DBM. (IRR-A Section 5 [g]) Common-use supplies should be procured from the PS-DBM on a quarterly basis.

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    On using the PS-DBM for procurement

    The Procuring Entity must consider the services of the PS-DBM in the procurement of all kinds of supplies. This will free it from the tediousness of attending to recurring transactions, and provide greater time for the procurement of high value, highly specialized requirements for its more significant projects.

    �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. Inventory items that are not �common-use supplies� may be procured from commercial sources, or suppliers other than the PS-DBM. The bulk purchase of these goods may be a good strategy to lower costs and achieve administrative efficiency. Likewise, it is a good practice to monitor the consumption of these items and identify when re-orders are necessary to ensure �round-the-clock� availability and to avoid overthe- counter purchases or purchases using petty cash funds.

    �Non-common use supplies� are those goods, materials, and equipment that are neither �common-use supplies� nor �inventory items�, and may include those goods, materials and equipment that are required by the Procuring Entity for a specific project only. Since these are not used regularly, and may even be highly specialized, these may be procured individually. There may be cases, however, when the APP will reveal that similar items are required for different projects, and in order to minimize costs, these may be procured under a single contract. For goods

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