Procurement planning is crucial for the efficient and effective management of government spending. Section 7 of the New Government Procurement Act (NGPA) or RA 12009 mandates that all procurement shall be conducted with sufficient planning and preparation to ensure sound procurement decisions. This involves a detailed approach including market analysis, supply positioning, assessment of procurement methods, risk management, and disposal strategies.
The Government Procurement Policy Board – Technical Support Office identified in 2016 through the results of the submitted Agency Procurement Compliance and Performance Indicator (APCPI) that 50% of the causes of delays and failures of procurement attributed from poor cost estimates, problems on the technical specifications or terms of reference, and end-user’s late submission of Purchase Request which could have been addressed if the procurement project has been planned meticulously by the procuring entity. Thus, the NGPA underscores the critical role of strategic procurement planning as a proactive approach in ensuring efficient procurement process and effective project implementation.
The strategic procurement planning enables Procuring Entities to develop customized procurement strategies that address the specific needs of each project. It emphasizes creating approaches that are both fit-for-purpose and proportional approaches, considering the entire lifecycle of the procurement project. This comprehensive perspective includes evaluating economic, social, and environmental impacts to ensure alignment with sustainability objectives and value for money.
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