PNP Procurement ABC Policy Guidelines 2012

Establishes policies and procedures specific to PNP's procurement planning focusing on determination of the Approved Budget for the Contract (ABC).
Emphasizes procurement planning that is focused, coordinated, integrated, and cost-effective.
ABC determination requires prior establishment of unit prices for intended goods before arrival at final budget.

Ensure well-planned procurement to fulfill law enforcement and public safety functions.
Prescribe procedures for ABC preparation consistent with government procurement principles.
Safeguard appropriations for intended use per program.
Enhance transparency and enforce accountability in procurement.

Approved Budget for the Contract (ABC): Budget approved by head of procuring entity per General Appropriations Act; determined based on unit prices and may be adjusted before procurement.
Annual Procurement Plan (APP): Consolidation of PPMPs defining procurement activities and schedules; approved by PNP Chief.
Goods: Items or equipment procured using capital outlay funds.
Procurement Management Committee (PMC): Committee chaired by Deputy Director for Logistics tasked with formulating consolidated PPMP.
Project Procurement Management Plan (PPMP): Procurement plan from end-user units detailing contract types, scopes, methods, schedules, and budget.

All procurement must be within the approved PNP budget and aligned with the approved APP.
Adjustments to ABC allowed upwardly only upon:
- Two failed public biddings.
- Modification of project terms/specifications unless project is indivisible.
Downward ABC adjustments permitted to reflect actual market prices or project conditions.
Re-bidding required after ABC adjustment.
Contract price escalation rules shall be followed.
Unit price determination considers:
- Cost or market price.
- Incidental expenses (freight, insurance, taxes, installation).
- Cost of money (credit terms).
- Inflation factors.
- Quantity discounts.
- Spare parts and maintenance costs.
- Currency valuation adjustments for foreign components.
Currency valuation and inflation factors guidance from Bangko Sentral ng Pilipinas (BSP).
Imported goods subject to import duty, VAT (12%), and potentially Ad Valorem Tax.
Estimators must maintain updated and realistic price information with cost analysis and revise estimates if necessary.

Price Per Unit Determination:
- Identification of procurement projects based on budget framework and priorities.
- End-users prepare their PPMPs (Table A-1).
- Supply Management Division canvasses at least three suppliers for prevailing retail prices (Table B-1).
- Use of past procurement prices with inflation adjustment if current canvass unavailable.
- Foreign warehouse prices used if local prices unavailable, considering additional costs.
- Determination of per unit price with discounts and costs (Table B-2).
- Volume Quantity Discount (VQD) considering fiscal and economic conditions.
- Cross-check with other government agencies' price data (Table B-3).
Price Per Unit and Target Budget:
- Submission to PMC for determination of exact quantities relative to target budget.
- Consolidated PPMP formulated.
Consolidated PPMP and ABC Approval:
- Submission to NHQ-BAC for preparation of APP.
- Chief, PNP approves APP for implementation.

Chief, Supply Management Division (SMD) responsible for price estimation and recommendations.
Procurement Management Committee collectively responsible for review, approval, and recommendation of PPMP.
NHQ-BAC collectively responsible for integrating prices with target budget, GAA, SARO, and recommending APP for Chief, PNP approval.

Violations of provisions subject to administrative or disciplinary actions.
Potential filing of administrative and criminal charges against offending PNP personnel.

Inconsistent previous PNP issuances partially or wholly repealed or amended accordingly.

Circular effective 15 days after filing with University of the Philippines Law Center, consistent with EO No. 292 Revised Administrative Code 1987.