The Department of Budget and Management (DBM) has issued Circular Letter No. 2018-8 which prescribes guidelines on the conduct of Early Procurement for Fiscal Year (FY) 2019 National Expenditure Program (NEP) on July 30, 2018. 

 “All government entities covered by the Circular shall undertake Early Procurement activities, from October to December 2018, upon submission of the FY 2019 NEP to Congress,” the document states. 

This is in line with the shift to the annual cash-based appropriations from the two-year obligation-based budgeting system. Under the new scheme, contracts should be fully delivered by the end of the FY, which effectively shifts implementation to a one-year horizon. 

The annual appropriations for 2019-onwards shall likewise be limited to the requirements for payments for goods delivered, services rendered, and infrastructure projects completed by the end of a fiscal year. 

The Circular thus warrants for all single-year projects to be fully implemented within the validity period of the FY 2019 national budget.

“As we are entering a cash-based budgeting regime, we are encouraging our agencies to undertake timely procurement planning and Early Procurement activities to ensure efficient implementation of programs, activities, and projects,” DBM Sec. Benjamin Diokno said.

Early Procurement activities refer to: (a) pre-procurement conference; (b) advertisement of the opportunity to bid; (c) opening of bids; (d) bid evaluation; (e) post-qualification; and (f) recommendation by the Bids and Awards Committee (BAC) to award the contract to the winning bidder. The award and notice to proceed will be signed after the President signs into law the General Appropriations Act (GAA). 

This is in accordance with Section 7.6 of the revised 2016 Implementing Rules and Regulations (IRR) of RA 9184 and Section 19 of the General Provisions of the FY 2019 NEP. 

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