NPM 137-2004

Requesting Entity: National Irrigation Administration

Issues Concern: Approval by the Government Procurement Policy Board of the Supplemental Annual Procurement Plan



Whether or not Supplemental Annual Procurement Plans are subject to the approval of the GPPB.

In view of the requirement under the Implementing Rules and Regulations Part A (IRR-A) of Republic Act 9184 (R.A. 9184) that “no government procurement shall be undertaken unless it is in accordance with an approved Annual Procurement Plan (APP),” procuring entities are mandated to update its APP by reflecting additional procurement activities they intend to conduct. In addition, the APP shall “bear the approval of the head of the procuring entity or second-ranking official designated by the head of the procuring entity to act on his behalf, and must be consistent with its duly approved yearly budget.”

Based on the foregoing, it is incumbent upon the head of the procuring entity to approve or disapprove his agency’s APP, including any amendments or revisions thereto. R.A. 9184 and its IRR-A do not require the submission of the APPs of procuring entities to the GPPB, much more its approval.

As such, we are of the opinion that it is not necessary for the GPPB to issue a favorable opinion for the NIA Board of Directors Resolution 7280-04 to be effective. The approval of such Supplemental APP is enough to make the conduct of the subject procurement project valid. Lastly, please note that consistent with government fiscal discipline measures, the APP shall include only those that are required for the day-to-day operations or are in pursuit of the principal mandate of the procuring entity concerned.