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Procurement jumping to next calendar year

Procurement jumping to next calendar year

ni Ronald Lizardo -
Number of replies: 6

What is the best course of action when faced with procurement of projects which will jump unto the next fiscal year. For example, the procurement for a certain project started December 2023, which include pre-procurement, market research, etc., however due to circumstances, the procurement activities such as opening of bid or issuance of NOA or other subsequent procurement activities will push through only on January 2024?
Is it better to continue the procurement process or redo the process again and add the project in the Supplemental APP for 2024, keeping in mind the reporting of budget at year-end with the DBM.

In reply to Ronald Lizardo

Re: Procurement jumping to next calendar year

ni Jessie Salvador -

May we know what particular problem or difficulty we encounter if the pre-bid is say in December 2023 and opening of bids is in January 2024?You can resort to early procurement activity if you already have Indicative APP in the prior year.

And why redo the process? Do you find that situation illegal or irregular? #jhezasking

 

In reply to Jessie Salvador

Re: Procurement jumping to next calendar year

ni Ronald Lizardo -
hello sir,
thank you for taking time in answering my question, the pre-bid actually started mid year of december and due to circumstances not disclosed by the end user units, they were telling us that the opening of bids might push through only in january the following year.

we are thinking of redoing the process due to the effects it might have on the books and reporting since we will close the books at the end of the year. further, the effects it might have on the FARs submitted to the DBM, if ever, the budget for such procurement will be under the continuing budget.
In reply to Ronald Lizardo

Re: Procurement jumping to next calendar year

ni Jessie Salvador -

You will have to be mindul only on the nature of the budget. If the budget is set to expire by end of December 2023, then you cannot proceed beyond that. If the budget is non-expiring and need not be declared as contiuing appropriations (such as trust funds), it will not matter. However, for other funds that needs to be included in continuing appropriations, I would suggest you wait until the funds are declared as such before you proceed.

In all instances, never forget Sec.7.2 of the IRR - "No procurement shall be undertaken unless in accordance with the approved APP, including approved changes thereto. xxx" 

In reply to Jessie Salvador

Re: Procurement jumping to next calendar year

ni Ronald Lizardo -
Thank you very much po sir?,

May I further inquire po, if the budget or GAA 2023 be considered as continuing appropriations for 2024 since the GAA for 2023 states that it may be used until 2024. As such, can we proceed with the procurement for the project until 2024 using the APP for 2023?
In reply to Ronald Lizardo

Re: Procurement jumping to next calendar year

ni Jessie Salvador -
Being able to use it for 2024 is one thing. Being included in the list if continuing appropriations is another.

To be sure, please contact DBM for a more precise answer.
In reply to Jessie Salvador

Re: Procurement jumping to next calendar year

ni Ronald Lizardo -
Thank you sir for this.

this is the thing we are considering, that's why we were thinking of redoing the procurement and adding the project in our supplemental app for 2024 since we are not sure if the budget for the project will be included in the continuing appropriations for 2024.