SOP No: GS-PD04

SOP Library

SOP NO: GS-PD04 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: General Services (GS)

Activity: Purchasing/Inspection and Fixed Asset Disposition (GS-PD)

Title: Central Office Purchasing System

Date Approved/Issued: 06/01/1985

Date Effective: 06/01/1985

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

General Policies

1. All purchasing activities at Central Office shall be centralized at the Supply Management Division, GSD.

2. All requisition by user directorates and offices shalll be submitted to the Property Inventory and Control Section (PICS) which shall initially screen the requisitioned items and process the RIVs.

3. Storage function for supplies, materials, equipment and spare parts shall be centralized at the Property Storage and Disposal Section (PSDS) which shall maintain sufficient buffer stock of fast moving items.

4. PICS shall see to it thast the inventory of items at the PSDS is always at the safety stock level.

5. As a rule, no purchase shall be made without prior public bidding on canvass of prices in the market.

6. All purchases shall be made at the most reasonable cost to the agency taking into consideration the quality, design, price, delivery and after sales services warranty.

7. Materials to be purchased must conform with the approved standards for quality. Special materials, or those which do not conform with standards shall be procured only when their use has been justified by the head of the requisitioning directorate/office. In cases where the items are highly technical or when the items are not covered by the approve standard specifications set for supplies and equipment, specifications must be duly recommended for approval by the Technical Committee for Procurement.

8. When available, locally, materials shall be purchased from the local market unless buying them from foreign supply sources would be more practical and economical to the agency.

9. Bid prices shall be treated with utmost confidentiality.

10. No requisition for advance purchase of materials or equipment for a proposed program or project shall be given action until said program or project has been duly approved by the proper authorities.

11. No requisition for advance purchase of materials or equipment for a proposed program or project shall be given action until said program or project has been duly approved by the proper authorities.

12.

Purchase Order

Letter Order

Job Order

s (Exhibit 1-3) shall represent a contract between the agency and the supplier which shall be binding based on the terms and conditions specified therein.

13. All purchases/fabrication shall be subject to technical inspection by IAD and final acceptance by the requisitioning office.

14. Splitting of requisitions, purchase, vouchers, and other pursuant to COA Circular No. 76-41, dated July 30, 1976 shall be prohibited.

Specific Policies

1. Organization

1.1

Functional Relations

There are three (3) main function in the Property Management Structure that of procurement, storage and materials specifications and control. The separation of procurement, storage and materials specifications and control functions shall be made through a clear distribution and delineation of said functions among the composite sections of the Supply Management Divisioin of the Directorate for General Services which are primarily involved in the NFA Property Management System. A close interrelationship shall be established and maintained among these functional groups because they service each other.

1.2

Delineation and Distribution of Functions

The Supply Management Division of the Directorate for General Services serves as the working arm of management in developing sources of supply to effectively and efficiently purchase standard quality materials, services and equipment (e.g. post-harvest facilities, office equipment, machineries, aircraft, vechicles and their spare parts and accessories construction materials, etc.) in the right quantity and quality, at the right price, at the right time and from the right source. It also monitors and ensures the prompt and orderly delivery and payment of Purchase/Job/Letter Orders served to suppliers. It is also responsible in the safe and orderly storage of materials for stock and issue us well as disposition of the same to end-users. It also keeps control of all inventory of all serviceable equipment, furnitures and others including semi-dependables and the disposal of all unserviceable properties.

Purchasing Section

This action is further sub-divided into two (2) units, namely:

a.1

Canvassing Unit

- this unit is responsible for the survey of prevailing market prices by soliciting price quotation from accredited suppliers to be able to acquire the right materials and supplies at the most advantageous terms and price for the NFA.

a.2

Buying Unit

The Buying Unit is in charge of the preparation of

Purchase Order

Letter Order

s and

Job Order

s to effect the Purchase, delivery and payment of the goods and services called for.

Property Inventory and Control Section

This section is generally responsible in working towards an effective standardization program of supplies for the NFA and at the same time to determine the safety stock level/reorder point and the economic order quantity of such supplies.

It is composed of two (2) units, namely:

b.1

Monitoring Unit

- responsible for the control and monitoring of movements of NFA properties and other semi-expendable items from one person to another, one office to another and/or from one place to another.

b.2

Materials Control Unit

- this unit analyzes, evaluates and renders recommendation if the goods or services being requitioned are within the standards set by the management. It also adopts measures to control costs.

Property Storage and Disposition Section

Under the storage function, this section is responsible for the actual receipt of the materials and supplies procured and for the custody of the materials and issuing them to the requisitioners. It also evaluates, analyzes and recommends the proper disposition of absolete and unserviceable properties and also reviews existing policies and adopts certain measures to cut supplies expenses.

1.3

NFA Procurement Committee

The Procurement Committee is a special body directly under the Office of the Minister. The following shall compose of the Committee:

Chairman : Representative of the Minister's Office

Members : Representative/s, DAB/DTFM/AAFA Representative, Marketing Operations

The Procurement Committee shall be responsible for the review and evaluation of purchases with total cost of over P50,000.00. Same shall be responsible for entering into negotiated and bidded purchases.

Special committees created to undertake the evaluation process for Special projects

shall report to the Procurement Committee.

1.4

NFA Technical Committee on Procurement

The Technical Committee shall be responsible in the establishment of standard specifications for the purchase of highly technical supplies and materials e.g. laboratory; construction and production supplies and equipment, whose specifications are outside the established standard specifications for supplies and materials. This would likewise include item, although conforming to standards, which are referred by the PROCOM for further evaluation, and also the evaluation of the specifications of alternative items that are different from what are actually requisitioned.

The Technical Committee is an independent body from the Procurement Committee and shall be composed of the following:

Chairman : Representative, INF

Vice Chairman : Representative, GSD

Member : Representative, TRED

On Call : At least three (3) Ad-Hoc members from any of the directorate office which maybe called upon by the Chairman and permanent members to assist them in the performance of their duties.

Mode of Procurement

2.1

Purchase thru Bidding:

2.1.a

Public Bidding

As a general rule, no contract for public service, public works, furnishing supplies, materials and equipments shall be entered into without public bidding. Public bidding are held for the protection of the public, and to give the public the means of open competition among bidders. Purchases of over P500,000 shall be effected by means of public bidding.

2.1.b

Sealed Canvass Bidding

This is the conventional system of procurement employed by NFA, requiring at least three (3) quotations from accredited suppliers in the locality and applicable for purchases below P500,000. Sealed canvass bidding for purchases of P500,000 and above may be allowed upon recommendation from the Procurement Committee and approved by the Minister.

2.1.c

Open Canvass

For purchases amounting to P5,000 and below, canvass of prices may be done by the NFA canvasser by directly going to the supplier. Open Canvass from three (3) suppliers is likewise required under this scheme.

2.1.d

Phone Canvass

Purchase thru phone canvass and allowed for items amounting to P1,000.00 and below. This is accomplished by securing quotations by phone from accredited suppliers. The NFA Canvasser should indicate the telephone number/s of the supplier in the quotation forms for ready reference.

The above purchasing schemes may be relaxed under the following cases:

a. Purchases which re certified as urgently needed to meet an emergency (emergency purchase); and

b. purchases of supplies and equipments sold by an exclusive dealer or manufacturer (negotiated purchase).

2.2

Purchases Without Bidding:

2.2.a

Negotiated Purchase

Negotiated purchases dispense with the requirements for bidding. Negotiated purchases are made when the requisitioned articles are sold by an exclusive distributor or manufacturer who does not have sub-dealers selling at lower prices and for which no suitable sustitute can be obtained elsewhere at more advantageous prices to the agency. Negotiated purchases are made under the following cases:

a. Whenever the item under procurement has been unsuccessfully placed on bid for at least two consecutive times, either due to lack of bidders or the offers receivables in each instances were exorbitant or non-conforming to specifications;

b. Whenever the items are urgently needed to meet an emergency whichmay involve the loss of, or danger to life and/or property;

c. Whenever the items are to be used in connection with a project or activity which cannot be delayed without causing detriment to the public service;

d. Where the Procurement Committee on the basis of past experience believes that a public bidding may not bring a good result ;

e. In cases where it is apparent that the requisition of the needed suppliers through negotiated purchase is mot advantageous to the agency as determined by the Procurement Committee;

f. Whenever the purchase is made from an agency of the government; and

g. Whenever the purchase is made from a foreign government.

The conventional form of negotiated purchase involves the supply of a single order or one-time purchase. The NFA may opt to negotiate a continous supply line with the supplier for a specified period without sacrificing price and quality. This mode of procurement, termed "contracted purchasing" shall be covered by a memorandum of agreement.

a. Contracted Purchasing shall only be allowed for selected items/materials/services as deemed beneficial to the agency per evaluation b GSD. This, however, shall be limited only to items/services gold limited only to items/serviceablle gold/rendered by exclusive dealers/manufacturers.

b. Only NFA accredited manufacturers, exclusive distributors and authorized government dealers shall be allowed to enter into contract with NFA.

c. Contracted purchasing shall be covered by a

Memorandum of Agreement

(

Exhibit 4

) which shall embody provisions as to payment, delivery, penalties and other terms and conditions.

d. The existing LO/PO/JO documents shall be utilized to order the delivery of the items at required quantity and specifications. The LO/PO/JO shall be marked with "Contracted Purchase" to differentiate it from other procurement schemes, and shall not pass DAB for funds availability. Monitoring of distribursements pler item shall be done by Supply Management Division based on the approved fund allocation.

22.b

Emergency Purchase

This scheme is employed without the benefit of holding canvass public bidding whenever supplies, materials and equipment are exceptionally urgent or absolutely indispensable to prevent immediate changes or loss of life and/or property, or when the supplies are to be used in connnection with the project or activity which cannot be delayed. Emergency purchases shall be supported by a certificate of "Emergency Purchase" which shall state the justification for the urgency of the purchase.

2.2.c

Petty Purchase

Purchase worth P200 and below shall be considered as petty purchases. Purchasing documents under this scheme shall be simply stampmarked "PETTY PURCHASES" and shall not require the tedious process of canvassing of prices.

3. CANVASS OF PRICES

3.1

Means of Determining Prices of the Market

a. Public Bidding (See Annex A)

b. Use of

Request for Quotation

- price quotations shall be solicited from suppliers through canvass of prices using the

Request for Quotation

form (See Exhibit 5). The

Request for Quotation

shall be duly accomplished by the Purchasing Section by indicating the name and address of the prospective supplier and listing down the item being canvassed. These request for Quotation shall be served personally by the NFA Canvasser for NFA Accredited Suppliers. Sealed Quotation shall be required for purchases of P500,000 and below. However, for items worth up to P2,000, open canvass may be allowed.

c. Phone canvass shall be allowed on purchases worth P1,000 and below.

d. Price Confirmation on Repeat Orders

Items which have been canvassed and procured during the last three months based on the date of last purchase may verified by phone to ascertain from the supplier if the same price and terms are still being offered.

3.2

Submission of Sealed Quotation/Bids

Submission of sealed quotation shall be made either by mail or handcarried by the supplier or his duly authorized representative addressed to the NFA or picked-up by the authorized NFA Canvasser.

3.3 Opening of Sealed quotations shall be done on scheduled date and time in the presence of the following, regardless of the amount:

Team Leader : Representative of Procurement Committee

Asst. Team Leader : Chief, SMD

Members : Representative, ODAP

Representative, DLA

The Chief, PSMD shall be responsible in notifying the aforementioned participants at the opening of bids.

3.4

The Abstract of Canvass of Prices

Price quotations submitted by prospective suppliers shall be tabulated by the Purchasing Section i a prescribed form called as

Abstract of Canvass of Prices

(See Exhibit 6) in order to summarize the quotations showing which offer is most benefited to the agency.

The Abstract of Canvass shall be used as basis for selecting the winning supplier.

3.5

Exceptions - Purchase without Canvass

Materials and services may be procured without prior canvass of prices under the following cases:

a. For items with fixed prices or amounts of fixed by law i.e., stamps, gasoline;

b. Government to government purchases, except SOO Contracts;

c. Items/services sold by sole distributorship (must be certified by the Mother Company or must show any contract to ascertaint he sole distributorship) in some localities; and

d. Emergency and/or petty purchase.

PRICE INDEX CARD

(PIC)

4.1

Use of

Price Index Card

Prices of fast moving - regularly used items shall be monitored by the Purchasing

Section. The monitoring of prices shall be done in an auditable form to be made possible by maintaining a so called

Price Index Card

(See Exhibit 7).

Price Index Card

s shall be filed per commodity grouping and shall be maintained by the Purchasing Section. This shall provide immediate comparison of prices from competitive sources or for competitive materials.

4.2

rice Index Card

and its Relation to Canvassing Emergency Purchases and

Ordinary/Routine Purchases

The PIK shall minimize time scouting for prospective suppliers because it shall serve as an immediate reference for prices and supplies. It shall be the basis for evaluating the price behavior of commodities in the market.

4.3

Price Index Card

and its Relation to Public Bidding and Negotiated Purchases

The PIC shall serve as guide in the evaluation of bids or quotations based on the behavior of the market price of the item. It shall serve as basis for comparison of prices between the bids or quotation prices and the prevailing market price as reflected in the PIC.

4.4 Winning bids of suppliers who submitted their price quotations, or participated in the public bidding, or entered into negotiation with the NFA shall be used as basis in recording data into the

Price Index Card

5. REQUISITIONING AND ORDERING

5.1 To facilitate and expedite materials requisitioning and ordering the following shall be adopted in the NFA Purchasing System:

5.1.1

Commodity List

A systematic recording of items on storage based on commodity grouping shall be done through a Commodity List by the RICS to be certified by Property Storage and Disposition Seciton (PSDS) and approved by SMD Chief. Copies of the Commodity List shall be distributed to all NFA directorates and offices to serve as their guide and reference in requisitoning materials for issue.

The PSDS in coordination with PICS shall be responsible for updating the Commodity List. Issuance of updated lists shall be every beginning of the year.

NFA directorate and offices shall be notified byt he PSDS, of any change in the Commodity List through a "Commodity List Amendment Notice".

5.1.2

Commodity Grouping

Materials in storage shall be grouped according totheir classification, uses, specifications and descriptions. This shall enable the PSDS to have a systematic method of storing materials, inventory taking and expedient preparation for issuances.

5.1.3

Standardization

The Property Inventory and Control Section shall coordinate with the user directorates and offices to set up; standard/fixed sizes, types, designs, qualities, substances and measurements of supplies, materials and equipment to be used by the NFA.

5.1.4

Reorder Points

PICS shall establish a safety stock level for items in storage which shall be used as basis for reordering. To assure that there shall always be enough supply in storage, safety stock level shall be determined based on the consumption requirements and the earliest time of delivery for purchases.

5.2

The Use of

Requisition and Issue Vouchers

(RIVs)

All requisitions shall be documented using General Form No. 45 called as Requisition and Issue Voucher (Exhibit 8). To facilitate processing of requisitions, RIVs shal be classified into three, namely:

RIV

for Issue

Requisition for items which are available in stock listed in the Commodity List shall be made through an RIV marked RIV-A on the upper right hand corner of the form.

RIV

for Purchase and for Direct Issuance to User/Requisitioner

Requisition of items not available in stock shall be made through an RIV marked RIV-B o the upper right hand corner of the form.

RIV

for purchase and for Stock

Requisition made by the PSDS for purchase/replacement of supplies and materials for stock and issue shall be marked RIV-C.

Processing and actions taken by concerned officials/perrsonnel on each

RIV

shall be monitored thru the

RIV Tracking Sheet

(Exhibit 8) attached to each

RIV

for Purchase.

5.3

Letter Order

Purchase Order

Job Order

(LO/PO/JO)

The Purchase/Letter/

Job Order

shall serve as a formal purchase contract between the NFA and the supplier upon signing by both parties.

It shall bind the supplier to deliver to the NFA the items listed thereon in full compliance to description and specification at the specified place(s), date and time according to terms and conditions agreed upon.

The PO shall cover all purchases entered into by the agency with amount of P5,000 and above. Approved of the PO shall be based on established levels of authority.

On the other hand, a

Letter Order

(LO) shall be prepared in case the purchase is below P5,000.

The

Job Order

shall cover services to be rendered/purchased of materials and equipment especially fabricated for NFA by outside manufacturers/suppliers.

5.4

Time and Place of Delivery

Deliveries shall be made during office hours' at the place or places indicated in the order.

5.5

Urgent Requisitions

Requisitions for urgently needed items should be done in

RIV

s marked "RUSH". The date when the materials are needed should be specified on the

RIV

in addition to the purpose for which it is intended.

Rush requisitions for purchase shall be given an allowance of seven (7) days for delivery.

6. RECEIVING AND INSPECTION

6.1

Rules in Receiving and Inspection

6.1.1 The requisitioner shall immediately verify all deliveries. Any deficiency noted, as well as those noted by the Property Inspector of IAD shall be reported/referred to Purchasing Section. No deliveries shall be accepted by the requisitioner unless found to be complying with specifications/descriptions. If necessary, a test must be conducted.

6.1.2 All deliveries shall be subjected to immediate inspection by the Technical Audit Division, IAD and acceptance by the requisitioner, and reports thereof shalll be made immediately using the Inspection Report and Acceptance Report portions of the LO/PO/JO.(for details refer to SOP 05007 re: Inspection of Purchased Supplies and Materials.

6.1.3 Receipt of purchased equipment shal be documented by accomplishing the Fixed Asset Receiving Report by the Receiving Supply Officer.

6.1.4 Rejection of any delivery whether partial or total for non-conformity with the specifications shall confer the right upon the NFA to rescind the contract to th extent of the rejection and accordingly procure the items from other supply sources and charge to the defaulting supplier the 10% of undelivered items against his performance bond or any money due to the supplier, the absence of which will not prejudice the NFA to take legal actions against him.

The supplier may, however, be given a chance to replace the rejected deliveries the period of which shall be determined by TAD/IAD. Rejected form shall be forwarded to Purchasing for endorcement to supplier.

6.2

Significance of FA Receiving Report, Inspection Report and Acceptance Report

6.2.1 The FA Receiving Report establishes accountability of the Agency and the particular accountable officer on the receipt of procured items.

6.2.2 The Inspection Report confirms conformity of procured items to requisitioner which have been inspected and found to be in accordance with the required specifications.

7. PAYMENT FOR DELIVERED ITEMS

7.1

Allotment

7.1.1 Purchase of items (PO/JO) classified as Operations Expenses (i.e Supplies; and Materials) shall be coursed thru the Claims and Processing Division, DAB for Funds Availability . Such shall be charged to the procurement and expenses (PE) account.

7.1.2 Purchase of items classified as Capital Outlay (i.e. Fixed Assets) shall be coursed through the Budget Division, DAB for fund allotment . Such shall be charged to the Imported Cereal Collection (ICC) Account of General Fund Account as the case may be. Likewise, purchasse of office equipment shall require Malacanang exemption prior to any transaction.

7.1.3 Central Office Directorates shall be provided with quarterly fund allotment for supplies and materials to be utilized for the period. Capital outlays shall only be given fund allotment on a per item/project basis. No disbursement shall be allowed for purchases in excess of the allotment.

7.1.4 Unused fund allotment for the preceding quarter can be carried over to the next quarter within the fiscal year.

7.1.5 Purchases of items for the repair/renovation/maintenance of building facilities shall be charged to the concerned directorate.

7.2

Procurement Funds

7.2.1 Cash with Regular Disbursing Officer Procurement Expense Imprest Fund

Account

a. An imprest fund shall be maintained for cash payment of emergency purchases. The fund ceiling shall be based on the two weeks requirement. However, the fund ceiling shall not exceed P380,000.00.

b. Payment shall be disbursed from this fund as supported by duly processed and approved

CASH ADVANCE

SLIP (Exhibit 10). Same (7) working days from the availment.

7.2.2.

Cash with PNB-Procurement Expense Current Account

a. Check payment to suppliers for procured supplies, materials and equipment shall be withdrawn from this account as supported by duly processed and approved voucher.

b. Signing and countersigning of checks shall be based on Memo 104 dated 29 March 1983 re: Updated Specification of Authority for Financial Activities.

7.3

Payment Scheme

7.3.1

Cash Purchases

a. Cash purchases shall only be allowed for duly authorized emergency purchases and for purchases amounting P2,000.00 and below.

b. Cash amount to be used for the purchases can either be advanced by the employee or by utilizing a

cash advance

slip approved by the Director, GSD.

c. The amount of

cash advance

by the designated NFA Buyer shall not exceed P5,000 or one (1) week cash requirement, whichever is higher.

d. The beneficiary/designated NFA Buyer, shall liquidate his cash advance by preparing the voucher in behalf of the Sr. Disbursing Officer together with the necessary supporting papers and duly approved by the Director concerned within seven (7) days.

Non-liquidation of the

cash advance

within seven (7) days shall mean payroll deduction of the total amount advanced.

e. No

cash advance

shall be given unless for a legally authorized specific purpose mentioned in 7.3.1.a. A

cash advance

shall be reported on and liquidated as soon as the purpose for which it was given has been served. No additional

cash advance

shall be allowed to any official or employee unless the previous

cash advance

given to him is first settled or a proper accounting thereof is made by the Cashier and Buyer.

7.3.2

Check Purposes

a. Check purhases shall be applicable for purchases worth applicable for purchases worth P2,001 and above, under Contracted-Purchases, One-time Negotiated Purchase, Sealed/Open/Phone Canvass Bidding and Public Bidding.

b. Check payment shall be made only against properly approved vouchers which affirm the following:

1. There is sufficient money obligated to pay the vouchered

amount;

2. The voucher has been approved by-authorized agency official;

3. The voucher is supported by adequate documents which appear legal and proper.

c. Payment shall be made within 7 days from the date of the corresponding bill and submission of other papers evidencing delivery, inspections and acceptance.

8. DOCUMENTATION

Documents required for voucher processing and payment of claims shall be the following:

8.1

General Requirements

8.1.1 Request for purchase or requisition (RIV) of supplies, materials and equipment duly approved by proper authorities.

8.1.2 Original copy of

Letter Order

Purchase Order

Job Order

/Contract, duly approved by the officials concerned.

Inspection Report and Acceptance Report portion of LO/PO/JO accomplished by IAD Technical Inspector and requisitioner respectively.

8.1.3 Original copy of the dealers/suppliers invoice/delivery receipt (a) showing the quantity, description of the articles, unit and total value, duly signed by the dealer/representative, and (b) indicating acceptance of delivery by the PSDS.

8.1.4 Official Receipt of supplier in case voucher is for liquidation.

8.1.5

Taxpayer's certificate

for purchases from manufacturers/fabricator/exporter (

Exhibit 11

8.2

Additional Requirements for Specific Cases:

8.2.1

Public Bidding

a. Evidence that the invitation for Bids has been given wide publicity by either one or a combination of several or all of the following:

1. Advertisement in newspaper

2. Posted Invitation

3. Mailed Invitation

4. Telegraph, Radio, Television Announcements and/or

5. Personally delivered invitations

b. Winning bidder's offer or proposal.

c. Abstract of bids showing the lowest and most responsible bidder from among the other bidders who participated in the bidding.

d. Notice of Award

e. Performance Bond

f. Bidders Bond

8.2.2

Negotiated Purchase

a. Supplier's/manufacturer's quotation

b. Certificate of exclusive distributorship

8.2.3

Emergency Purchase

Certificate of Emergency Purchase

(Exhibit 12)

8.2.5

Petty Pu

rchases

a. General requirements uner 8.1 marked "Petty Purchases"

8.3 For purchase of spare parts immediately issued to requsitioner/user, the following are additional requirements:

a. Pre-repair inspection )

b. Post-repair inspection )

Exhibit 13

)

Report of Waste Materials

(Exhibit 14)

Certificate of Undertaking

(Exhibit 15) accomplished by the Division Chief/Requisitioner may be required in lieu of the Post-Repair Inspection and Waste Material Report. This shall be effected in order not to hamper ;payment to supplier due to NFA's delay in the installation/use of the spare parts. The PRI and WMR shall be submitted within two days after repair/installation and must be attached to the voucher pror to post-audit of the claims by COA.

8.4 For purchase of equipment, the Fixed Assets Receiving Report (FARR) and Malacanang Exemption shall support the claim.

9. LEVEL OF AUTHORITY

9.1 Approval of LO/PO/JO shall follow the given specification of authority:

P10,000 - below

approval Chief, Supply Management Division, GSD

Above P10,000 to 30,000

Recommendation Chief, SMD

Approval Asst. Director, GSD

Above P30,000 to P50,000

Recommendation Chief, SMD

Approval Director, GSD

Above P50,000 to P100,000

Recommendation Director, GSD/PRO-COM

Approval AAFA

Above P100,000 to P200,000

Recommendation Director, GSD/PRO-COM

Approval Deputy Administrator

Above P200,000

Recommendation Director, GSD/PRO-COM

Approval Minister

9.2 Approval of RIV

Approval Chief, Supply Management Division

9.3 Approval of

Cash Advance

Slips

Approval Director, GSD

Noted:

P5,000 and below Chief, Cash Division

Above P5,000

10,000 Asst. Director, DTFM

Above P10,000

P30,000 Director, DTFM

Above P30,000 AAFA

9.4

Certificate of Emergency Purchase

P5,000 and below

CE Requisitioning Director*

Above P5,000 to P30,000

Recommendation Requisitioning Director*/

AAFA

CE Deputy Administrator

9.5 Certification of Purchases (Voucher/Disbursement)

Sining* Director, GSD*

Designated officials with assterisks indicates that the Official next in rank (lower) is designated in the absence of the authorized official, except for the Deputy Administrator wherein the other Deputy Administrator can sign for and in behalf of the other.

III. RESPONSIBILITIES

Requisitioning and Ordering

Administrative Assistant/Requesting Directorate

1.1 Determine the requirement of the Directorate/Office and prepares

RIV

in copies indicating item specification Secures signature of the Director.

1.2 For emergency purchases, prepare

Certificate of Emergency Purchase

, secures signature of approving authorities.

1.3 Forwards purchasing documents to Property Inventory and Control Section (PICS), GSD.

1.4 If for office/building facilities and equipment, forwards

RIV

to OBMD, GSD.

PICS, Supply Management Division, GSD

2.1 Receives and evaluates

RIV

. If item is available at storage, secures signature of the Division Chief and forwards to storage for issuance of items to requesting directorate. If item is for purchase, forwards to Purchasing Section.

2.2 Provides support to the Technical Committee in the implementation of the standardization program of supplies, materials and equipment of NFA.

2.3 Sees to it that all requisioned items are in conformity with the standards; maintains record of their current valuations based on most recent purchases; and determine the safety stock level, the re-order point and the economic order quantity of the stocks.

OBMD, GSD

3.1 Evaluates and recommends specifications for office/building facilities and equipments.

3.2 Submits

RIV

with attached items specification to PICS for purchase.

Purchasing Section, Supply Management Div., GSD

4.1 Determines mode of procurement

1.1. If for public bidding

1.1.1 Effects publication of Invitatioin to Bid/

1.1.2 Secures from bidders their Bidder's Bond

1.1.3 Assists Procurement Committee in the conduct of pro-bidding/bidding proper

1.2 If for emergency and petty purchases

1.2.1 Effects preparation of

Cash Advance

Slip

1.3 If for contracted purchase/service

1.3.1 Identifies supplier/contractor with existing contract with NFA to supply the required item. If within the specified contract period and there are still balance in the contracted quantity, proceed with the order.

1.3.2 If there is no existing contractor for identified items, establishes new contracts with manufacturers/dealers based on set forth guidelines.

1.4 If for 'One Time' negotiated purchase.

1.4.1 Effects preparation of '

Request for Quotation

s' to the exclusive supplier/manufacturer carrying the item at required specification.

1.4.2 Secures quoted price of supplier/manufacturer.

1.5 If for sealed/open canvass bidding

1.5.1 Effects preparation of '

Request for Quotation

s' from at least three (3) suppliers carrying the item at required specification

1.5.2 Secures quoted price of suppliers and prepares Abstract of Canvass for the different quotations gathered; Determines lowest price for the item(s) at required specifications.

1.6 If for phone canvass bidding

1.6.1 Secures quotation from three (3) accredited suppliers by phone. Indicates phone numbers of the suppliers in the quotation form.

4.2 Takes charges of forwarding to the Procurement Committee results of canvass which need further negotiation/evaluation.

4.3 Answers queries of suppliers/manufacturers/fabricators who come to inquire on matters pertaining to requests for quotation issued to them.

4.4 Sees to it that all requisitions have complete specifications, samples or design.

4.5 Effects the prepration of LO/PO/JO addressed to the supplier-awardee and secures signature of all approving authorites. If it requires a Contract, coordinate with Contract Division, DLA in the preparation of such. Serves original copy of LO/PO/JO/contract to supplier. Follow up closely the delivery of goods.

4.6 Upon delivery of items and upon receipt of accomplished documents, facilitate preparation of voucher for the collectible amount attaching the required documents.

4.7 Entertaines queries and assit suppliers to whatever problems that may arise in the processing of papers from point of delivery up to the release of checks.

4.8 Serves as data bank of all purchases made.

Procurement Committee (PRO-COM)

5.1 For purchases amount to P50,000 above, evaluates quotations and recommends lowest quoted price to the PO/JO approving authority.

5.2 Conducts public bidding for purchases above P500,000. Evaluates bids based on guidelines set forth and recommends lowest bid to the proper approving authority.

5.3 In cooperation with the Directorate for General Services, reviews and evaluates matters relative to purchasing system whenever such matter are not covered by any existing policies.

Technical Committee on Procurement

6.1 Establishes, adopts and recommends standard specifications of highly technical materials, supplies and equipment to be utilized for the purposes of effective efficient and economical NFA operations.

6.2 Screens, evaluates, tests, classifies and recommends for the acquisition of materials, supplies and equipment requisitioned for purchase and/or materials, supplies and equipment which are newly recommended for use, consumption or acquisition in the agency's operation to determine their effectiveness, efficiency and economy.

6.3 Screens, evaluates, tests, classifies materials, supplies and equipment which are referred to by the NFA Procurement Committee.

Contracts Division (DL)

Drafts and finalizes contracts between NFA and the supplier/manufacturers. Reviews and checks the legal conditions of the contracts to assure that their provisions are equitable between the NFA and the supplier and that the contracts conform with the terms and conditions agreed upon during the negotiations.

Claims and Pre-Audit Division, DAB

Certifies on the "Funds Availability" portion of the PO/JO contracts.

Receiving and Inspectio

Supplier

1.1 Prepares materials/items for delivery and prepares Invoice/Delivery Receipt.

1.2 Delivers materials/items and secures signature of NFA Storage Officer/requisitioner at delivery portion of Invoice and at the original Copy of LO/PO/JO.

1.3 Submits to Purchasing Section, SMD additional documents as may be required.

PSDS

2.1 Receives deliveries from supplier. Secures three (3) copies of invoice and the original copy of the order.

2.2 Informs IAD on the receipt of items and requests for inspection.

2.3 If item is categorized as Fixed Asset, prepares Fixed Asset Receiving Report (FARR).

2.4 Issues item to Requesting Officer; secures signature of Requisitioning Officer on the Acceptance Report portion of LO/PO/JO.

2.5 Forwards documents required for voucher processing to purchasing.

Technical Audit Division, IAD

3.1 Inspects delivered items/materials and determines conformance to required specifications. If it doesn't conform, request for replacement, reduction in price or reject the delivered items.

3.2 Accomplishes inspection report portion of LO/PO/JO.

3.3 Conducts Pre/Post-repair inspection of equipment which requires purchase of spare parts.

Requisitioning Director/Administrative Asst.

4.1 Acknowledges receipt/acceptance of item purchased per LO/PO/JO Acceptance Report portion.

Payment of Delivered Items

Purchasing Section

1.1 After delivery of the items, following usual procedures on receipt and inspection, facilitates preparation of voucher attaching required documents for payment.

Claims and Pre-Audit Division, DAB

Processes voucher for the amount due.

IV. FLOW CHART
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EXHIBITS

Price Index Card

Purchase Order

Letter Order

Job Order

Abstract of Canvass of Prices

Report of Waste Materials

Agreement for the Supply of Spare Parts

Request for Quotation - Exhibit 5

RIV Tracking Sheet

Cash Advance - Exhibit 10

Taxpayer's Certificate

Certificate of Emergency Purchase

Request for Inspection

Certificate of Undertaking