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APP and PPMP: The Requisites for Fund Allocation and Small Value Procurement (SVP)

By: Sandra U. Tarnate


There are two bases of fund allocation and procurement in the schools: The Project Procurement Management Plan (PPMP) and the Annual Procurement Plan (APP).


The Project Procurement Management Plan (PPMP)

Under Section 7.3.2 of the revised 2016 Implementing Rules and Regulations (IRR), it states that the end-user of the Procuring Entity shall formulate their respective Project Procurement Management Plans (PPMPs) for their different programs, activities, and projects (PAPs). The formulation of the PPMP will contain the list of items (goods, services, and projects/activities) and their estimated costs needed by the school to function for the whole calendar year. It also includes the projected monthly utility expense (electricity, water, internet) to be incurred within the given year. Hence, the PPMP serves as a guide in the procurement and contract implementation process and is a useful reference in procurement monitoring. Additionally, it provides flexibility for the school to optimize the allotted fund based on the needs of the teachers, students, and the school to continuously deliver its services.

How does the school formulate the PPMP?

Formulating the PPMP involves the following: 1) identifying the individual needs of teachers and students that are deemed necessary for teaching and learning, such as common use supplies, medical supplies, and semi-expandable property, among others; 2) identifying school needs for activities like graduation ceremonies, for safety materials like fire extinguishers, for maintenance and repairs, for janitorial supplies, and for utility expense; 3) determining the projects/activities/trainings proposed by project implementors with the estimated budget and the time schedule of implementation; and 3) determining the method of procurement through public bidding or through direct contract, depending on the presence or absence of specific conditions that justify the use of a particular method.


Once these requirements are identified, the supplies and materials expenses, services and utilities, trainings, repairs and maintenance of school buildings (minor), and their Approved Budget for the Contract (ABC) in the PPMP are then consolidated. This summary of consolidated PPMP is called the Annual Procurement Plan (APP).

Annual Procurement Plan (APP).

The APP is the requisite document that a school must prepare to reflect the necessary information on the entire procurement activities for goods and services and infrastructure to be procured that it plans to undertake within the calendar year. Specifically, the assigned Bids and Awards Committee (BAC) of the school is responsible for the consolidation and preparation of the said document. When the APP is submitted and approved, the division office will allocate the estimated budget indicated therein, which will be downloaded to the account of the school for the payment of procured goods or services through the release of checks.


In short, these two documents (APP and PPMP) go hand in hand. PPMP reflects the detailed needs of teachers, learners, and the school for procurement, and APP is the consolidated PPMP, that must be presented to the finance division for approval and downloading of funds.

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