Re p u b l ic of th e Ph il ip p i n es

GOVERNMENT PROCUREMENT POLICY BOARD

TECHNICAL SUPPORT OFFICE

NPM No. 001-2022

17 January 2022

HEADS OF PROCURING ENTITIES

Re: Submission of Annual Procurement Plan and Conduct of Early

Procurement Activities as requirements for the grant of Performance-
Based Bonus

Dear Sir/Madam:

In anticipation of requests for clarification on the requirements to submit the approved

Annual Procurement Plan (APP) and to undertake Early Procurement Activities (EPA) for the
grant of Performance-Based Bonus (PBB), the Government Procurement Policy Board-
Technical Support Office (GPPB-TSO) is issuing this opinion to guide Procuring Entities (PEs)
in their APP submission and conduct of EPA for eligible Procurement Projects.

The APP is required to be submitted to the GPPB in accordance with Section 7 of the
2016 revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184.

On the other hand, the conduct of EPA is dependent on the PEs’ sound discretion
taking into consideration the complexity of the project, its delivery period, and other factors
affecting the procurement of the said projects which is planned for implementation for the
succeeding fiscal year. Thus, PEs are encouraged to undertake EPA to facilitate the
procurement of Goods, Infrastructure Projects, or Consulting Services, even pending the
approval of the General Appropriations Act, corporate budget, appropriations ordinance, or
loan agreements in case of Foreign-Assisted Projects, as the case may be.1 The specific
guidelines in the conduct of EPA is found under GPPB Circular No. 06-2019.2

The foregoing rules should be contradistinguished with the Inter-Agency Task Force
(IATF) on the Harmonization of National Government Performance Monitoring, Information
and Reporting Systems Memorandum Circular (MC) Nos. 2021-13 and 2021-24 which provide
incentive to the covered PEs that will be able to submit their APP to the GPPB and conduct
EPA, among other requirements, for the grant of the PBB.

To ensure clarity and to respond to various inquiries raised to the GPPB-TSO, please
refer to the frequently asked questions and answers below:

1
See Section 7.6 of the 2016 revised IRR of RA No. 9184.
2
Dated 17 July 2019 as approved under GPPB Resolution No. 14-2019 entitled, “Approving the Issuance of the Circular
on the Implementation of Early Procurement Activities and Amending Sections 7.5, 7.6 and 20.1(c)(i) of the 2016 revised
IRR of RA No. 9184, the affected clauses in the Generic Procurement Manuals, and the Annual Procurement Plan and
Procurement Monitoring Report Formats”
3
Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year (FY) 2021 under Executive Order No.
80, s. 2012 and Executive Order No. 201, s. 2016 dated 3 June 2021
4
Supplemental Guidelines on the Grant of the Performance-Based Bonus (PBB) for Fiscal Year (FY) 2021 under
Executive Order No. 80, s. 2012 and Executive Order No. 201, s. 2016 dated 25 October 2021
FREQUENTLY ASKED QUESTIONS (FAQs)

I. Submission of Annual Procurement Plan for purposes of PBB

1. What is an APP?

Answer (A): The APP is a document that contains all planned procurement of a PE in
which they intend to undertake within the fiscal year. The APP is also referred as the
APP-non CSE in the PBB Guidelines.

2. Where can one find the prescribed format for APP?

A: The GPPB prescribed format is available for download through this link:
https://www.gppb.gov.ph/downloadables/forms/NEW%20APP%20Format%20
(RA-11469).xlsx.

3. What are the types of APP?

A: The following are the types of APP:

a. Indicative APP5 - the consolidation of indicative Project Procurement

Management Plans (PPMPs) in support of the budget proposal for the
succeeding fiscal year.6 The Indicative APP must be revised consistent with
the National Expenditure Program (NEP), or similar document, once the
same is approved. The Indicative APP in accordance with the NEP is the
basis for the conduct of EPA of the PE.
b. APP - the consolidation of the revised PPMPs upon the approval of and in
accordance with the General Appropriations Act, corporate budget, or
appropriations ordinance, as the case may be.
c. Updated APP - reflects the changes made in the APP.

4. For purposes of PBB, what type of APP should be submitted to the GPPB?

A: PEs7 shall submit the APP, consistent with its approved budget and as
approved by the Head of the Procuring Entity (HoPE) or his/her second ranking
designated official, to the GPPB on or before January 31 of the budget year
through electronic mail (e-mail) at [email protected].

5. How does one know if the APP is successfully sent to the GPPB?

A: PEs should be able to receive an auto-generated acknowledgment8 from the

GPPB-TSO upon submission. The acknowledgment e-mail shall serve as the
proof of submission. In case of non-receipt of the auto-acknowledgment within
one (1) hour after submission, PEs shall re-submit the APP to the same e-mail
address. If no acknowledgment is still received, the PE may opt to call the

5
Note that the Indicative APP should not be submitted to the GPPB, instead, it should be submitted to the Department of
Budget and Management (DBM) as part of the budget proposal and posted in the Transparency Seal in the agency
website.
6
The issuance of the Budget Call by the DBM in the case of National Government Agencies, State Universities and
Colleges, Constitutional Commissions, or similar document for Government-Owned and/or Controlled Corporations,
Government Financing Institutions, and Local Government Units. Budget call usually happens during the 1st Quarter of
the preceding budget year.
7
PEs shall check with the Guidelines on the Grant of PBB issued by AO 25 annually the applicability of the requirements
whether for the whole PE or responsible unit/individual.
8
See Section 4.3 of GPPB Circular 02-2020 dated 20 May 2020
 GPPB-TSO at (02) 7900-6741 to 44 to confirm and to request for the
acknowledgment receipt of the submitted APP.

6. What are the requirements to be considered compliant with the APP requirement
for purpose of PBB compliance?

A: The GPPB-TSO shall consider PEs compliant with the APP requirement for the
grant of PBB upon compliance with the following:

a. Submission of the APP on or before 31 January of the budget year using

the prescribed format, both in Portable Document Format (PDF) and
Microsoft Excel files, through e-mail at [email protected];
b. The submitted APP is based on the GAA, corporate budget, or
appropriations ordinance, as the case may be, and not on the proposed
budget (i.e., NEP or similar document);
c. The APP submitted has been duly approved by the HoPE or his/her duly
designated second ranking official; and
d. Submission of a Certification9 stating that the PE has complied with the
posting requirement (i.e., posting in the designated section of the agency
website or in the absence thereof, at any conspicuous place reserved for
this purpose within the premises of the PE).10

II. Conduct of Early Procurement Activities for purposes of PBB11

1. What is EPA?

A: EPA refers to the conduct of procurement activities from the posting of

opportunity, if required, until recommendation of the Bids and Awards
Committee (BAC) to the HoPE to award the contract,12 pending approval of the
funding source.13 Its purpose is to facilitate the immediate implementation of
the procurement of Goods, Infrastructure Projects, or Consulting Services. The
rules for the conduct of EPA are governed by GPPB Circular No. 06-2019.14

2. Which PEs are covered by the EPA requirement for purposes of the grant of
PBB?

A: PEs receiving budgetary support from the National Government, based on the
NEP, are covered by the EPA requirement for the grant of PBB. However, for
purpose of validation, all PEs that would like to be eligible for the grant of
PBB must submit the corresponding certification to the GPPB-TSO.

9
Template in Appendix “1” of GPPB Resolution No. 11-2020 dated 20 May 2020
10
See Section 3.1 of Government Procurement Policy Board (GPPB) Circular 02-2020 dated 20 May 2020
11
See Annex “A” (Guidelines in the Conduct of Early Procurement Activities as a Requirement for the Grant of the
Performance-Based Bonus) of the IATF MC No. 2021-2
12
See Section 3.1 of GPPB Circular 06-2019 dated 17 July 2019
13
See Section 3.1 of GPPB Circular 06-2019 dated 17 July 2019
14
Guidelines on the Implementation of Early Procurement Activities (EPA) dated 17 July 2019
 3. If a PE is not receiving budgetary support from the National Government, can it
still undertake EPA?

A: Yes. All PEs are allowed and even encouraged to conduct EPA to ensure the
timely delivery of goods, implementation of infrastructure projects, and
rendition of consultancy services.15

4. What are the eligible Procurement Projects for EPA?

A: Eligible Procurement Projects (EPPs) shall refer to Goods, Infrastructure

Projects, and Consulting Services reflected in the PE’s indicative APP based
on the NEP to be undertaken through Competitive Bidding and Alternative
Methods of Procurement under RA No. 9184 and its revised IRR, except for
the following:

a. Repeat Order (Section 51);

b. Shopping (Section 52);
c. Negotiated Procurement – Emergency Cases (Section 53.2);
d. Negotiated Procurement – Take-Over of Contracts (Section 53.3); and
e. Negotiated Procurement – Small Value Procurement (Section 53.9).16

In addition to the above exceptions, procurement of Common-Use Supplies

and Equipment (CSE) from the Department of Budget and Management-
Procurement Service (DBM-PS)17 is also excluded in the EPA requirement.

5. What is the percentage of the value of EPP required to be undertaken for

purposes of EPA in order to be eligible for the grant of PBB?

A: PEs18 are required to successfully undertake EPA for at least fifty percent
(50%) of the total value of EPPs included in its Indicative APP19 consistent with
the NEP.

6. How is the required fifty percent (50%) computed?

A: The fifty percent (50%) compliance requirement for the conduct of EPA shall
be computed using this formula:

Amount20 of Successful EPA projects21 % of Successful

x 100 = EPA projects
Total Amount of EPPs22

15
Section 3.3 of the GPPB Circular No. 06-2019
16
See Section 1.4 of GPPB Circular 06-2019
17
DBM-PS is tasked for the centralized procurement of Common-Use Supplies for the Government of the Philippines in
accordance with Letters of Instruction No. 755, s. 1978 and Executive Order No. 359, s. 1989.
18
PEs shall check with the Guidelines on the Grant of PBB issued annually by AO 25 the applicability of the requirements
whether for the whole PE or responsible unit/individual.
19
The Indicative APP shall be posted on the agency Transparency Seal pursuant to Department of Budget and
Management Circular Letter 2018-8 dated 30 July 2018. The Indicative APP is not submitted to the GPPB.
20
Value in Philippine Peso
21
Recommended for award of contract
22
Total Amount in the Indicative APP based on NEP less exceptions
 7. What document should be submitted by the PEs in order for the GPPB-TSO to
validate if the EPA requirement is successfully undertaken or not?23

A: All PEs shall submit an EPA Certification under Oath to the GPPB-TSO, as
the case may be, thus:

Status Description EPA Certification

Template
Successfully The PE has undertaken EPA and Certification of
undertaken recommended for award of contract undertaking or non-
at least fifty percent (50%) of the undertaking
total amount of the EPPs.
(Template in Annex “A-
Not successfully The PE has undertaken EPA, 1” of the IATF
undertaken however, only less than fifty percent
Memorandum Circular
(50%) of the value of EPPs were 2021-2 dated 25
recommended for award of contract. October 2021)
Not undertaken The PE did not undertake EPA
despite the existence of EPPs.
Not covered by The PE has no EPPs for the conduct Certification of
the EPA of EPA as required for the grant of Exception from EPA
requirement PBB.
(Template in Annex “A-
2” of the IATF
Memorandum Circular
2021-2 dated 25
October 2021)

8. When and where to submit the required EPA Certification for purposes of the
grant of PBB?

A: The EPA Certification under Oath shall be submitted to the GPPB-TSO on or

before 31st of January of the fiscal year through e-mail at
[email protected]. Given the limited mobility and in
consideration of health and safety protocols being implemented to avoid the
transmission of Corona Virus Disease 2019, submissions in printed copy shall
not be accepted. In case the deadline falls on a weekend or a regular or special
holiday, the deadline shall be on the next business day.

9. What are the requirements to be considered compliant with the EPA requirement
for purpose of the grant of PBB?

A: The GPPB-TSO shall consider PEs compliant with the EPA requirement for the
grant of PBB upon:

a. Submission of the applicable EPA Certification under Oath using the

applicable prescribed template24 on or before 31st of January of the fiscal
year;

23
Per Section 5 of IATF MC 2021-1, agencies should submit the requirement to the concerned oversight agency.
24
See Annex “A-1” and “A-2” of the IATF MC No. 2021-2
 b. The Certification submitted shows that the PE has either successfully
undertaken EPA for at least fifty percent (50%) of the total amount of EPPs
for the conduct of EPA or the PE is not covered by the EPA requirement
(i.e., procurement projects do not receive budgetary support from the
National Government or are to be undertaken through the exempted
modalities); and
c. The Certification is signed by the HoPE or his/her duly authorized official.

For the information and guidance of all.

Date:
2022.01.17
19:53:09 +08'00'
ROWENA CANDICE M. RUIZ
Executive Director V

//pmda3