DBM sees new procurement units facilitating spending

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THE Department of Budget and Management (DBM) has directed all government agencies to create their own procurement units to fast-track disbursements and address underspending.

Under the National Budget Circular 2015­558, all agencies and departments must have single Bids and Awards Committee (BAC), as well as the procuring units to support them, the DBM announced on Monday.

The guidelines also cover state universities and Colleges (SUCs), government­-owned and -­controlled corporations (GOCCs) and government financial institutions (GFIs).

In line with Administrative Order 46 and Republic Act 9184 or the Government Procurement Reform Act, the guidelines aim to facilitate procedures that support swifter government disbursement and more efficient public spending, the department noted.


Agencies with major procurements requirements, like the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd), may also create multiple BACs with the
procurement support based on the number and complexity of goods and services they need.

The department said the support procurement units will be created at the central offices of line departments and agencies, bureaus, SUCs, GOCCs, and GFIs.

“Last year’s underspending revealed to us the importance of having the appropriate structure to support the agencies’ procurement efforts. AO 46 laid out long­term strategic fixes to bureaucratic weaknesses in government procurement, via the creation of procurement support units,” Budget Secretary Florencio Abad, said.

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