Procurement is a process that involves a business, company, or organization obtaining goods or services essential to continue its daily operations. It refers to various steps, from bidding and negotiating with suppliers to documenting, purchasing, inspecting, and accepting goods. Therefore, the Department of Education (DepEd) issued DepEd Order 4 to help procure goods, delivery strategy, and contract implementation.
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This policy aims to strengthen the department’s logistic process, including inventory control and execution of contracts. It provides guidelines for administering the Supply and Delivery Strategy. DepEd Order 4 also consists of provisions about contract implementation, from pre-delivery inspection, acceptance of goods, payment, and recording of assets. Thus, all stakeholders are encouraged to adhere to the guidelines enclosed in DepEd Order 4, series 2024.
What is DepEd Order 4
Issued on March 11, 2024, the DepEd Order (DO) 4, series (s.) 2024, enclosed the Guidelines in the Procurement of Goods Using the Supply and Delivery Strategy and Contract Implementation of Procurement of Goods in the Department of Education. The Department of Education issued this policy to bolster the logistic solutions’ efficiency in moving, safekeeping, and accounting of procured goods. Hence, the policy guidelines ensure the promptness of contract execution and relevant inventory control.
Furthermore, it mandates program owners to administer the “Supply and Delivery Strategy of Procurement.” With this policy, the contractor should deliver the goods procured to the final destinations. It also aims to create a procurement and administrative policy requiring the payment of contract price after inspecting and accepting the goods purchased by DepEd or its authorized representatives. The policy also contains the appropriate structure to implement the Supply and Delivery Strategy by providing duties and responsibilities regarding applicable officials, personnel, and DepEd units.
Guidelines in the Procurement of Goods Using the Supply and Delivery Strategy and Contract Implementation of Procurement of Goods in the Department of Education
A. Supply and Delivery Strategy
- Procurement of goods should involve using the Supply and Delivery Strategy. This means the supplier should deliver procured goods to their final destinations. Hence, provide the payment after undergoing a proper inspection procedure and acceptance of goods at their final destinations.
- During the procurement planning phase, project owners should inquire at schools via the Schools Division Superintendent (SDS) to determine the types and quantity of needed goods to ensure all procurement is driven by demand, excluding those with specifications mandated by laws, rules, and regulations.
- Project owners should also supervise procurement records to guarantee the preparedness and completeness of the bidding documents.
- Within five (5) working days after signing the contract, project owners are entrusted to provide the final allocation list, delivery schedule, and technical specifications to schools or determine the drop-off point of the delivery via Regional Directors (RDs).
- The supplier should fully insure the goods or items subject to delivery through freely convertible currency against damage or loss due to handling, hauling, warehousing, and transportation.
- The image below shows the Flowchart for the Supply and Delivery Strategy:
B. Contract Implementation
1. Pre-Contract Implementation
- The first stage refers to the planning and preparing contract monitoring and inspection processes/tools. It also involves the Pre-Contract Implementation Meeting (PCIM) between the supplier and the Central Office (CO), considering the contract provisions and respective responsibilities.
- In collaboration with the Contract Management Division (CMD), project owners must administer at least one (1) PCIM within five (5) working days after signing a contract with a first-time DepEd supplier.
- The image below shows the composition of a team responsible for performing PCIM and the roles of each member:
2. Pre-Delivery Inspection
- Procured goods by CO to be delivered to schools, SDOs, ROs, or determine the drop-off point of delivery should go through the Pre-Delivery Inspection (PDI) inspection team of DepEd.
- The supplier should submit a PDI request to CMD at least seven (7) working days before the request date or period stated in the bidding documents, a copy furnished to the project owner.
- The CMD’s Chief Administrative Office should directly sign and issue the Notice of Inspection (NOI) to the supplier while preparing a copy of the NOI for the project owner based on the submitted inspection/PDI request.
- The team leader should prepare an inspection/PDI report within two (2) working days after performing the inspection.
- Aside from PDI, goods delivered to schools, SDOs, or ROs should go through Inspection and Acceptance performed by respective inspector/inspection teams and property custodians.
- Project owners should also identify applicable inspection techniques that teams should apply as stated in the bidding documents. These techniques apply by inspection sampling or item.
- The image below shows the general process flow for PDI:
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3. Inspection and Acceptance at Delivery Sites/Final Destination
In agreement with the existing COA Circular, the school inspection team and property custodian/supply officer should inspect and accept delivered goods to the recipient school. Nonetheless, inspection of procured foods with sensitive or confidential contents should be conducted in CO instead of the recipient schools, ROs, or SDOs. The image below indicates the composition of the Inspection Team:
4. Payment
The project owners should validate, confirm, and determine the completeness and authenticity of supporting documents upon receiving the supplier’s letter of payment request. Moreover, the project owner should prepare the Disbursement Voucher (DV) and Obligation Request and Status (ORS). The Accounting Division should also conduct pre-audit action, process the DV, or pay within the prescribed period or earlier than thirty (30) calendar days. Lastly, the Undersecretary or the highest official should sign all necessary documents for closing the project.
5. Recording of Assets
In this stage, the Asset Management Division (AMD) and property custodians/officers should record the inspected and accepted goods in stock/property card. It should also contain an inventory report distinguishing PPE, semi-expendable property, or inventory items of field offices and CO. The Division and Regional Offices should follow the same process and comply with this policy when conducting procurement projects.
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DepEd Order 4 Full Memo Download
If you want to download the full memo PDF file of DepEd Order No. 4, series of 2024, you can check out the downloadable file link below. direct link on this page. Simply click the download button below and get a copy of DepEd Order 4 in PDF format.
Full PDF DepEd 4 memo file – https://www.deped.gov.ph/wp-content/uploads/2021/10/DO_s2021_042.pdf
Video: DepEd, bumuo ng departamentong tututok sa procurement process | 24 Oras
As stated in the video, the Department of Education has performed the necessary steps to strengthen its procurement process before the recommendation of the Senate Blue Ribbon Committee regarding overpriced laptops. DepEd conducted live stream bidding to ensure transparency and established a department focusing on the procurement process. That’s why the issuance of DepEd Order 4 is crucial to guarantee transparent and efficient procurement of goods in the department.
Summary
Through the issuance of DepEd Order 4, series 2024, all concerned in the procurement of goods in the Department of Education can follow the enclosed guidelines. The policy will help in the logistic solutions by promoting efficiency and timeliness throughout the procurement process. Therefore, schools, project owners, and DepEd personnel/officers involved in the procurement of goods should adhere to the provisions and guidelines of this policy.