Publish Date : 09-Jun-2015
To fast-track procurement procedures that will ultimately support swifter government disbursement and more efficient public spending, the Department of Budget and Management (DBM) has released the guidelines on the creation of procurement units in all departments and agencies, as well as State Universities and Colleges (SUCs), Government-Owned-or-Controlled Corporations (GOCCs), and Government Financial Institutions (GFIs).
In line with the marching orders set by President Aquino with Administrative Order (A.O.) No. 46 as well as Republic Act (R.A.) No. 9184 or the Government Procurement Reform Act, all agencies and departments will now have a single Bids and Awards Committee (BAC), as well as the procuring units to support them as per National Budget Circular (NBC) No. 2015-558.
“Last year’s underspending revealed to us the importance of having the appropriate structure to support the agencies’ procurement efforts. A.O. 46 laid out long-term strategic fixes to bureaucratic weaknesses in government procurement, via the creation of procurement support units,” Budget Secretary Florencio “Butch” Abad said.
Agencies with major procurements requirements—like the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd)—may also create multiple BACs with the appropriate procurement support, depending on the number and complexity of the goods and services they need.
These support procurement units will be created at the central offices of the departments and agencies, line bureaus, SUCs, GOCCs, and GFIs. Their organization level shall be determined by the level of the department or agency, as well as their average procurement budget for the last three years.
The organizational structure of the procurement units of the Procurement Management Service shall be divided into the following: Office of the Director, the Procurement Planning and Management Division, the BAC Secretariat Division, and the Contract Management Division.
On the other hand, the procurement units at the division-level shall be created under the Administrative Service or Finance Administrative Service with responsibilities on a smaller scale as compared to the service-level. Likewise, the procurement unit at the section-level will be created under the General Services Division or Administrative Division, but also on a smaller scale.
“Our introduction of reforms in the bureaucracy in the past years has revealed to us a better understanding of its weaknesses, as well as opportunities for improvement. We’re confident that with these new guidelines, agencies will not only spend more efficiently but also support us in attaining our growth targets,” Abad said.
Almost half of the 2014 spending deficit was revealed to be due to structural weaknesses, which includes issues of capacity within agencies and GOCCs. Because of this, the measures in A.O. No. 46 cover the establishment of better procurement practices, more effective monitoring and evaluation, and the involvement of dedicated officials and staff in ensuring faster disbursements in their respective agencies.
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