TACLOBAN CITY, Philippines — The state-run Procurement Service (PS) Depot plans to put up an outlet in each of the 82 provinces in the country before the end of 2010 in a bid to ensure compliance to the procurement reform law.
PS Executive Director Estanislao Granados said in an interview that the target is attainable if all the 13 Department of Budget and Management (DBM) regional offices will exert effort in opening one provincial depot every quarter starting 2009.
"We have 13 regional directors nationwide. If all of them will open just one provincial depot per quarter, we can put up 52 depots next year," Mr. Granados said.
He said many DBM regional offices have tied up with provincial governments in preparation for the setting up of sub-depots outside regional centers.
A regional PS depot maintains stocks level worth P4 million-P6 million. An outlet sells commonly used office supplies and materials like bond paper, clips, ink, pens, as well as janitorial supplies.
Under the plan, a local government provide space for the depot, the Procurement Service office in Manila delivers the supplies, while the DBM regional office supervises the operation.
"The national government will not spend anything in setting up provincial PS depots. It is a partnership between PS Manila, DBM regional office and LGUs. At the end of the year, the profit is divided between the three entities," Mr. Granados added.
PS charges 4% of sales of supplies to government offices. This is used to pay the salaries of employees, space rental and other common operating expenditures.
Through the depot, the government saves on the conduct of bidding procedures since it is now centralized at the DBM and it also cuts bureaucratic red tape because purchases are done directly and faster.
Prices at the depot are lower than market prices.
In 2007, PS depots nationwide earned P2 billion against a P3-billion income target.
Compliance to the procurement reform law is still low because most of the outlets started operations only two years ago. This year, the revenue goal was raised to P3.5 billion.
"I think we will be able to attain this, considering that we have less expense this year. There are only two regional PS depot buildings that were programmed for construction in 2008," Mr. Granados said.
The PS Depot was created by Republic Act 9184, also known as "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other purposes." The law was approved in 2003, but due to funding constraints, the PS Depot was officially set up in August 2005. — Sarwell Q. Meniano
PS Executive Director Estanislao Granados said in an interview that the target is attainable if all the 13 Department of Budget and Management (DBM) regional offices will exert effort in opening one provincial depot every quarter starting 2009.
"We have 13 regional directors nationwide. If all of them will open just one provincial depot per quarter, we can put up 52 depots next year," Mr. Granados said.
He said many DBM regional offices have tied up with provincial governments in preparation for the setting up of sub-depots outside regional centers.
A regional PS depot maintains stocks level worth P4 million-P6 million. An outlet sells commonly used office supplies and materials like bond paper, clips, ink, pens, as well as janitorial supplies.
Under the plan, a local government provide space for the depot, the Procurement Service office in Manila delivers the supplies, while the DBM regional office supervises the operation.
"The national government will not spend anything in setting up provincial PS depots. It is a partnership between PS Manila, DBM regional office and LGUs. At the end of the year, the profit is divided between the three entities," Mr. Granados added.
PS charges 4% of sales of supplies to government offices. This is used to pay the salaries of employees, space rental and other common operating expenditures.
Through the depot, the government saves on the conduct of bidding procedures since it is now centralized at the DBM and it also cuts bureaucratic red tape because purchases are done directly and faster.
Prices at the depot are lower than market prices.
In 2007, PS depots nationwide earned P2 billion against a P3-billion income target.
Compliance to the procurement reform law is still low because most of the outlets started operations only two years ago. This year, the revenue goal was raised to P3.5 billion.
"I think we will be able to attain this, considering that we have less expense this year. There are only two regional PS depot buildings that were programmed for construction in 2008," Mr. Granados said.
The PS Depot was created by Republic Act 9184, also known as "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other purposes." The law was approved in 2003, but due to funding constraints, the PS Depot was officially set up in August 2005. — Sarwell Q. Meniano
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