Proper public procurement practicesdirectly reflect good governance. Transparent and effectiveprocurement practices minimize expenditure and createopportunity. Procurement is an enormous component in theprocess by which governments build infrastructure, such asschools and hospitals. It involves the management ofsignificant amounts of money and is therefore often thecause for allegations of corruption and governmentinefficiency. The difference between getting publicprocurement right and doing it wrong has the potential to beeither highly rewarding, or highly damaging. In somenations, reforms implemented to improve the efficiency ofpublic procurement have resulted in savings of 1% of acountry's gross domestic product. One can see whypublic procurement is so significant to the development of acountry and its people. Citizens have the right to expecttheir government to spend these funds for the good of thepeople. In the past, corruption, inefficiency, ignorance,and disorganization have resulted in billions of pesos worthof losses. It is with the importance of these issues in mindthat this report is produced to report on the state ofprocurement in the Philippines today. A 2012 CPAR actionplan integrating all the existing and proposed initiativesand recommendations to address the areas for improvement inthe Public Procurement System is presented at the end ofthis report. The action plan provides the road map andagenda for procurement reforms to be undertaken by thegovernment, together with its development partners during2013-2016. Some of the priorities focus on strengtheningmonitoring and enforcement and procurement capacity, andimproving procurement processes and practices, i.e., (i)implementation of the professionalization program, (ii)implementation of the Agency Procurement Compliance andPerformance Indicator, or APCPI and development ofmechanisms to enforce compliance, (iii) review and possiblerevision of the IRR to provide procedures for internationalcompetitive bidding, (iv) establishment of an independentcomplaints or protest review body and development of itsgoverning rules and procedures, and (v) development andimplementation of a framework to sustain and ensure CSOparticipation in procurement monitoring. The Philippinedevelopment forum sub-working Group on Procurement willcontinue to monitor the implementation of the action plan,ensure the availability of funding support and addressissues that may arise during implementation.
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