PROCUREMENT PROCUREMENT REFORMS REFORMS ALEXANDER A. PADILLA Undersecretary of Health Chairperson, Procurement Coordinating Committee & Central Office Bids & Awards Committee 1 st National Staff Meeting CY 2007, January 24-25, 2007, Clark Field, Pampanga
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PROCUREMENT REFORMS PROCUREMENT REFORMS ALEXANDER A. PADILLA Undersecretary of Health Chairperson, Procurement Coordinating Committee & Central Office.
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PROCUREMENT PROCUREMENT REFORMSREFORMS
ALEXANDER A. PADILLA
Undersecretary of Health
Chairperson, Procurement Coordinating Committee & Central Office Bids & Awards
Committee
1st National Staff Meeting CY 2007, January 24-25, 2007, Clark Field, Pampanga
Initial ChallengesPolicies
• Unresponsive(e.q Some drugs not included in PNDF)
1.Increase compliance to standard procurement procedures based on RA 9184
2.Enhance procurement systems and tools and integrate with IT, systems in logistic, warehousing and financial management
3.Promote transparency and accountability in procurement transactions
4.Adoption/application of Agency Procurement Performance Indicator (APPI) to benchmark and monitor performance and identify capacity gaps and subsequent improvements in DOH units
5. Promotion and socialization of the ethical framework and core values on procurement
On savings …………………
Gains and Accomplishments
Savings Specific savings on …
53% Various drugs & medicines
43% Equipment for electrification projects
42% Printing of letterheads
33% IT equipment & construction materials delivery
25% Supplies, materials, services
17% Electrical/mechanical supplies & equipment
15% Various office supplies & equipment
15% Vehicles & supplies/materials
Estimated savings realized by the Philippines as a result of posting procurement opportunities on the GEPS, 2004
Source; Government Electronic Procurement System in Harmonizing Donor Practices for Effective Aid Delivery: Volume 3: Strengthening Procurement Practices in Developing Practices , World Bank, OECD Publishing, 2005,
• No major vaccine stock-outs the past 2-3 years (excluding Hepa-B)
• Some medicines like anti-TB drugs, ARVs are more accessible
• Supplies and materials have become predictably available when requested/ required
Participation of civil society
Publication of all invitation to bid, bid results, price monitoring data, CO registered suppliers
Establishment of appeals, protests and blacklisting mechanisms
Establishment of Integrated development Committees
Formulation of the draft ethical framework for the selection, registration and procurement of medicines.
On increasing transparency and accountability and ensuring integrity of the procurement
process……………….
• Civil Society Forum on Transparency, Anti-Corruption and Citizen’s Participation on August, 2006
• COBAC recognized for its 100% compliance in posting in GEPS (Government Electronic Procurement System) of bidding opportunities and bidding results
• DOH recognized by GPPB & Civil Society as the agency that is most committed in correcting procurement mistakes/lapses
•
On increasing transparency and accountability and preserving integrity of the procurement
process………………
• Increasing requests for posting of bidding opportunities in DOH website of CHDs and hospitals without websites
• Formulation of the Delegation of authority- AO 2006-0034 for the central office, CHDs and hospitals
• Defined responsible personnel & officials for each procurement step
On increasing transparency and accountability and preserving integrity of the procurement
process………………
On increasing transparency and accountability and ensuring integrity of the procurement process……………….
Particulars based on COBAC data 2004 2005 2006
Letter of reconsideration during bidding process
6 16 5
Letter of reconsideration during contract implementation
3 10 11
Bidders complaints/observations 5 4 5
NAMFREL observations - 8 13
Blacklisted Suppliers(Document falsification, refusal to accept award, failure to post performance security)
2 3 3
• Establishment of appeals, protests & blacklisting of mechanisms
HEAD OF PROCURING ENTITY
SOH/CHD Director/MCC/HC
94Bids and Awards
Committees (BAC)
Integrity Development Committee
INTERNAL CONTROL/ OBSERVER
• DOH Internal Audit
• COA Field Office
Resident Ombudsman
EXTERNAL CONTROL/ OBSERVER
• NAMFREL
• Transparency and Accountability Network
• Procurement Watch
• COFILCO
• Other NGOs/ Private Sector
DOH Procurement Organizational Set-Up
Technical Working Groups
Subject Experts
Legal Office
Capability Development
• Training TARGETS:
• End-users/PMOs/AOs
• BAC, Secretariat, TWG Members, & Partners
• Rolled-out training on RA 9184 and use of Philippine Bidding Documents
• At least 300 participants or 31% of 1,500 target from 94 BACs
• Substantial CHD/hospitals’ initiated training
• Identified and oriented NAMFREL volunteers on red flags of corruption in procurement
Reforms in system, tools & procedures
• Mandated use of standard Philippine Bidding documents (edition II)
• Adoption of standard procurement forms
• Customized and tested at central office the DOH procurement manuals for goods and consulting services
Reforms in tools, systems & procedures
Clearing houses for item specifications & TOR for services
Creation of TWG Pool at the central office
Establishment of Simplified Suppliers’ Registration System
BFAD prioritization of DOH procured drugs and medicines testing
BFAD continuous strengthening of drug registration
Enhancement of feedback mechanism to end-users
Establishment of central office Depot for all common office supplies
Reforms tools,systems, and procedures
Institutionalization mechanism for reward to performing personnel involved in procurement
Granting honoraria to COBAC and TWG members pursuant to DBM Budget Circular No. 2004-5A and DOF-DBM-COA Joint Resolution No. 2005-2
2004 2005 2006
COBAC 96,000 209,000 393,000
TWG 168,750 192,000 378,000
Secretariat 264,770 25,079 324,981
Total 529,520 426,076 1,095,981
No cases filed against COBAC/TWG except 1 which is already dismissed
Legal assistance and even liability insurance is already a right which is not the same with regard co-government employees
On reward to performing personnel involved in procurement…………….
•
Reforms tools, systems and procedures
Development of automated systems to facilitate and further organize procurement process & enhance sharing of data/info
-Consolidation of the Annual Procurement Plans
-Guidelines for Health Commodities Reference Information System (HCRIS)
-Simplified Suppliers Registration System
-Price monitoring
• Use of Agency Procurement Performance Indicator (APPI)
• Tool to monitor and evaluate actual implementation at the agency/micro level of RA 9184
• To benchmark and monitor progress on procurement reforms
• Indicator for F1 Monitoring & Evaluation
BENCHMARKING, MONITORING & EVALUATION
• APPI – derivative of Baseline Indicator System (BIS)
• BIS - macro indicator used for assessment and comparison of national public procurement systems
• Applied in the Philippines
• Total score of 67.89% in 2004
• 68% score translated to level of achievement = ALL baseline indicators substantially met
• Basis to recalibrate the Phil. public procurement strategy
BENCHMARKING, MONITORING & EVALUATION
APPI tells you whether an agency has ….
A strategy for achieving an effective procurement program & whether this strategy is in line with the national procurement reform policy
An organizational structure and employee capacity to support the strategy in line with the national procurement reform policy
Internal procurement processes that supports the strategy in line with the national procurement reform policy and is in accord with its organizational set-up
Whether the agency is able to undertake its procurement in an effective manner
APPI Pillars
Pillar Major indicator Description & Weights
I Legislative and Regulatory Framework
Strategy to implement RA 9184 (6%)
II Central Institutional Framework & Management Capacity
Professionalization Measures (16%)
III Procurement Operations and Market Practices
Organization Structure(16%) Procurement Process (30%) Effectiveness (16%)
•Draft ethical framework and core values done with the selected hospital & CHDs and pharmaceutical industry
•Draft Code of Conduct on Procurement initiated by the Office of Ombudsman
Application of the Ethical Infrastructure for a Good Procurement System
1. Mainstreaming reforms, overcoming resistance to change
2. Narrowing the gaps and variations in procurement practices among DOH units
3. Adherence to the principle of transparency, efficiency, equity, economy, fairness & respect
4. Integration with logistics & financial management
5. Sustaining reforms
CURRENT CHALLENGES
MAINSTREAMING & CAPACITY BUILDING
1. Continuous capability building/training
2. Finalization and adoption of DOH customized procurement manuals
3. Development of procurement guidelines for drugs and medicines & other health products and services
4. Continuous promotion of transparency & accountability using GEPS and partnership with civil society
5. Automation/computerization of procurement systems and integration with logistics management and e-NGAs
CURRENT THRUSTS
Benchmarking, Monitoring & Evaluation
5. Adoption/application of APPI as a benchmarking and monitoring tool and basis for further improving procurement systems and practices among CHDs and hospitals
Ethical Framework on procurement
6. Finalization of the ethical framework & customization of the Code of Conduct for procurement