TITLE OF ENTRY
“Shop here for a procurement-ready request. Do it the first time!”
THEMES
Government Operations, Government Process, Public Trust, Delay, Waiting, Process improvement, Maximizing Talent, Document storage, Supply Management, Duplication
OVERVIEW
This initiative aims to streamline government procurement processes, specifically in acquiring science and technology equipment, by minimizing delays and maximizing efficiency. The current procurement process often results in failed biddings, doubling the turnaround time from 36 to 72-90 days and increasing costs due to repeated procedures. The proposed solution includes creating a library of commonly requested equipment with standardized specifications and a detailed market survey to guide project leaders. This approach will drastically reduce time spent on meetings and evaluations by 83%, cutting both costs and processing time ensuring that projects are awarded successfully the first time they are published for bidding.
PRODUCTIVITY PROBLEM
In procuring science and technology equipment, the Bids and Awards Committee (BAC) usually experiences failed biddings to acquire needed equipment. Because of this, the turnaround time from the Purchase Request to the successful award to the supplier mostly doubles from the shortest period of 36 days to 72-90 days. Since the procurement team needs to do the same process, the cost of repeating the process also increases. Three stages of the process need to be repeated, which requires the attendance of 10 personnel and lasts at least 4 hours of meetings and deliberation. The agenda that prolonged the meeting is the review of the specifications of the requested product, which usually lasts 3-4 hours. A conservative total of 24 office hours per committee member is devoted to the repeated process. For each meeting, meals and snacks must be served with a budget of 375 per person or a total of P 22,500 for the complete process. The project deliverables were not completed on time due to the repeated process, which requires a request for an extension and return of an unutilized budget.
CHALLENGE STATEMENT
How might we efficiently conduct the procurement process to ensure a successful project is awarded the first time it is published for bidding?
PROPOSED SOLUTION
Develop a library of commonly requested science and technology equipment that can be the basis of specifications and an estimated budget for the project.
The project leaders should select the required equipment before creating the Line Item Budget.
This should also include recently acquired equipment
Requesting offices will select from the listed equipment.
Updates should be made regularly by the Technical Working Group in coordination with the project leaders.
The library should include a market survey of the availability of local supplies duly registered in the Philippines and with PhilGeps registration.
Develop a template/form of requirements under RA 9184 to be communicated to the requesting office to guide them in preparing the specification of equipment required.
A detailed market survey of recent prices, including tax and freight charges, should support the approved project budget.
Specifications should focus on the functionality and performance of the product, not referring to any brand.
Upon approval of the Memorandum of Agreement, the project leaders should immediately request the procurement of needed equipment. This will give the personnel enough time for the market survey and review.
BENEFITS / PRODUCTIVITY GAINS
In doing the “Shop here for a procurement-ready request. Do it the first time!” the project team will be able to prepare a procurement-ready Purchase Request. In this case, it will only take 1 hour to review the specifications during the pre-procurement and pre-bid process and 2 hours in bid opening and evaluation because all the details needed in preparing the documents are correct using the library of S&T equipment as a tool. This being the case, the committee can complete the procurement process within the shortest turnaround time of 36 days, avoiding the failure of bidding and repeating the whole process.
In addition, only snacks will be served for 150 per person, for a total of P 4,500, or an 80 percent reduction in cost. Office hours consumed will only be a maximum of four (4) hours per person for the three (3) mandatory meetings or a total of 40 hours for the whole committee, or a reduction of 83 percent in the office hours spent in the procurement process, maximizing the productivity of each member of the committee.
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Name: Cecile Dangawen
Position: Accountant III
Agency: University of the Philippines - Baguio
Address: Governor Pack Road, Baguio City