Chapter 4

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

The presentation, analysis and interpretation of data are undertaken according to

their sources. In regards to the study, it shall be noted that these vital information come

from the Local Government personnel, National Government representatives and

accredited suppliers. In general terms, the data gathered are analyzed and interpreted

independently before being contrasted with each other thereby coming up perspectives at

different levels which in effect will be relatively essential in designing appropriate

interventions to improve the City’s public procurement system.

Profile of Respondents

Educational Level

From Table 2, it shall be noted that majority of all the respondents at 59.337% or

seventy (70 ) to be exact are college graduates followed by those who got to college but

were not able to finish a course at 17.80% or twenty one (21). On the other hand, a total

of nineteen (19) respondents or 16.10% obtained post graduate courses, either able to

complete the academic requirements or had hurdled the required dissertation or had

earned units thereof. Some are graduates of Midwifery, Medicine, Computer Science

Technician and Vocational courses. Among the respondents, only four (4) or 3.34%

were in the secondary level. Based on these data, it can be surmised that all the

respondents by virtue of their educational background did not find it hard to articulate

their responses to the questions which were given to them for appropriate disposition.
Table 2: Educational level of Respondents

Educational Attainment Frequency %

Secondary Level 4 3.34
College Level 21 17.80
College Graduate 70 59.33
Post Graduate 19 16.10
Others (Midwifery,
Medicine, Computer
Science Technician,
Vocational) 4 3.34
T o t a l 118 100.00

Age Distribution

In terms of age distribution, among the respondents, 34.45% or forty one (41) are in the

31-40 bracket while a total of twenty nine (29) respondents or 24.57% are part of the

51-61 bracket. Moreover, twenty eight (28) respondents at 23.73% belong to the 41-50

age bracket. On the other hand, a total of nineteen (19) respondents or 16.16% belong

to the 21-30 age group while only one (1) or 0.80% is in the 61-above bracket.

Table 3: Age Distribution of Respondents in Years

Age Bracket (Years) Frequency %

1 - 30 19 16.16.
31 – 40 41 34.74
41 – 50 28 23.73
51 – 60 29 24.57
61 – Above 1 00.80
T o t a l 118 100.00
Civil Status

In terms of civil status, a great majority of 86.44% or one hundred two (102)

personnel are married while 12.76% or fifteen (15) others are still single. On the other

hand, among the respondents, only one (1) or 0.80% is a widow.

Table 4: Civil Status of Respondents

Civil Status Frequency %

Single 15 12.76
Married 102 86.44
Widow 1 00.80
T o t a l 118 100.00

Number of Years in the Agency and/or Establishment

In regards to the number of years of respondents in their agencies and

establishments, 34.73% or forty (40) belong to the 5 years-below bracket. Hence,

majority are relatively new, however, since the sets of questionnaires delved into the

procurement process that have a highly comprehensible operational implications, its is

ensured that they were able to articulate their responses.

Moreover, there are a total of twenty five (25) respondents or 21.18.% who had work

experiences ranging from 11-15 years. On the other hand, 18.64% or twenty two .(22)

respondents are those belonging to the 6-10 years bracket. Among them, a total of

thirteen (13) or 11.00% had gained experiences within the range of 21 years- above.
Table 5: Number of years of the respondents in the Agency or Establishment
(including years of service in the former municipalities of Samal, Babak and Kaputian
for local government personnel)

Number of Years Frequency %

5 – below 40 34.73
6 – 10 22 18.64
11 – 15 25 21.18
16 – 20 18 15.25
21-25 8 6.80
26 – 30 4 3.40
31-Above 1 0.80
T o t a l 118 100.00

Characteristics of the Current Procurement System

From the study it was revealed that the procurement system in the Island Garden City of

Samal is characterized by various processes in three (3) phases, as follows:

a. Pre-Procurement Phase

• Accomplishment of the Supplies Availability Inquiry (SAI)

This is the first step that has to be undertaken wherein the Requesting Office will have to

make a verification in the Accounting Office as to the availability of supplies or

materials being sought with the appropriate specifications based on the Annual

Procurement Plan. As soon as the Office concerned issues a certification thereof, the

Requesting Office can now prepare the Purchase Request.

• Preparation of Purchase Request

After the Supplies Availability Inquiry (SAI) had been accomplished, the

Requesting Office prepares the Purchase Request wherein all the needed supplies or
materials as the case maybe and as stipulated therein with the corresponding estimated

cost .

• Approval of Purchase Request

This is the stage where the Purchase Request after having gone through the first three (3)

stages will be approved by the Local Chief Executive (LCE) or City Administrator as

the case maybe.

• Preparation of allotment obligation slip (ALOBS)

This is the stage wherein the City Budget Office issues the Allotment and

Obligation Slip (ALOBS) based on the Purchase Request that signifies that funds had

already been allotted for the purpose and that obligation will then be effected.

b. Procurement Phase

• Evaluation, acceptance and recording of Purchase Request for transaction

Though already approved, the documents attached to the Purchase Request will still be

subjected to evaluation to determine if compliance to the requirements as set forth for

each type of transaction is already adequate to warrant acceptance for consummation.

These requirements include documents like Program of Work, Program, Project and

Activity Designs, Pre-repair inspections, certifications and other supporting documents

as maybe agreed upon by the all Department Heads. Further, the specifications of the

goods and services being requested for procurement are likewise evaluated. This is

strictly carried out considering that per experience in the past these are oftentimes the

cause of the delay in deliveries since suppliers used to deliver the goods and services
which were not the ones the Requesting Offices wanted due to vague specifications.

After this stage, the subject request may either be returned to the requesting parties in

cases where there are deficiencies or accepted for consummation if these complied with

all the requirements as set forth.

After the evaluation and that the requirements are already adequately complied

with, the Purchase Request will now be accepted and is duly entered into the records of

purchase requests as manifested by its assigned number. Thus, signals the

commencement of the transaction.

• Preparation and Serving of Canvass and/or Bid Forms

When the total cost of procurement including the ones being processed is not yet

over P50,000.00 which is the ceiling for fifth (5th), fourth (4th) and (third (3rd) class

cities, a canvass will be undertaken, otherwise, a bidding will be effected. These

documents are signed by the City General Services Officer ,the authorized signatory for

cities and then being served to prospective suppliers. In this connection, there is no limit

in terms of the number of forms for distributions to the suppliers.

• Conduct of Canvass and/or Bidding

This is a situation wherein interested suppliers tender their quotations to the

supplies and materials that are subject for procurement. In a canvass mode of

procurement, it only takes the suppliers to reflect their quotation in the prescribed form

upon which they submit it to the City General Services Office or any member of the

Committee of Awards. To some extent, authorized personnel to do the task retrieve the

same. The canvass forms will then be opened with or without the presence of the
participating suppliers. On the other hand, when the mode of procurement is through

public bidding, there is a defined venue and time and where in the presence of the

members of the Committee on Awards, tender of quotations is being opened and still

with or without the presence of the bidders. One distinct feature for this mode of

procurement is that the participating suppliers are required to post a bond equivalent to

5% of their total quotations.

Further, to consider the transaction for consummation, at least three (3) suppliers

for canvass and two (2) for bidding shall have to tender their quotations. Non-

compliance, hereto, renders the proceeding a failure.

• Preparation of Abstract of Quotation and Minutes if the Mode of Procurement is

Through Public Bidding

All the quotations tendered by the interested suppliers and/or bidders are properly

documented that constitute the abstract of quotations.

• Evaluation and Awarding

The action undertaken here is the assessment of the tendered quotations by the bidders as

well as the accompanying documents attendant thereto. This is to establish who among

them are the lowest complying supplier and/or bidder upon whom will be awarded the

right to supply the goods and services, which are the subject of canvass or bidding.

• Approval of the Abstract of Quotations

After evaluating the tender of quotations and awarding the same to the lowest

complying supplier or bidder, the members of the Committee on Awards manifest their

approval thereof by affixing their signatures in the Abstract of Quotations.

• Preparation of Purchase Order

This document is accomplished after the winning suppliers or bidders had already been

decided upon by the Committee on Awards. It serves as contract between the City

Government and the concerned suppliers upon which the terms and conditions are

stipulated therein that includes the specifications of the supplies and materials, the

winning quotations and period of delivery and place where its should be made.

• Approval of Purchase Order

After being cleared of any impediment, the Purchase Order is then forwarded to the City

Mayor’s Office for his approval or the City Administrator’s Office as the case maybe

being his authorized signatory.

• Serving of Purchase Order

As soon as the Purchase Order is approved, the same will be served to the concerned

suppliers of which upon receipt thereof, the countdown for the period of delivery starts

which is seven (7) days under normal conditions where the goods and services are

available in the local markets. Otherwise, the period of delivery may take place beyond

the prescribed number of days, however, the supplier is required to inform the proper

authorities when this condition prevails.

• Monitoring of compliance to the period of delivery

 This is a process of initiating a countdown as to the period the supplier is

particularly mandated to deliver the goods and services as stipulated in the purchase

order. This may vary from the minimum of seven (7) days upon receipt of the purchase

order or more depending on the arrangements made between the concerned supplier and

the city government.

• Delivery of goods and services

This is the stage wherein the supplier delivers the purchased goods and services and is

done within a specified period and in pursuance to whatever specifications had been

stipulated in the Purchase Order.

• Inspection and acceptance of goods and services

This is the stage where the Designated Supply Officer (DSO) of the Requesting Office

conducts an inspection on the delivered goods and services that are desired and evaluates

as to compliance to the specifications set forth in the Purchase Order. When found to be

in compliance thereof, acceptance is effected. To manifest that this stage had already

been undertaken the concerned personnel duly accomplish an Inspection Report and

Acceptance Form.

c. Post-Procurement Phase

• Preparation of documents required for payments of goods and services

This is the stage in the process where processing of documents required for payments of

the delivered goods and services are made. An attachment of documents from the initial

step of the process up to the inspection and acceptance stage is required.

• Post delivery inspection and evaluation

This takes place after the goods and services are already made use of. The objective

here is to determine whether or not there are problems and issues that cropped up

relative thereof that will serve as basis for future actions in regards to the procurement

process that took place.

Perception of Respondents on the City’s Public Procurement System

a. Level of Responsiveness

The general sentiment of the respondents vary from each other. In this connection, while

the Local Government respondents considered the public procurement system in the City

as responsive, however, from the view of those from the national government agencies,

this is just moderately responsive.

Actually, they differ their observations in the following areas which had been rated as

responsive by the local government respondents and moderately responsive by the

national government agencies representatives while sharing the same perspectives for

the rest of the processes:

• Accomplishment of supplies availability inquiry

• Preparation of purchase request

• Preparation of allotment obligation slip P

• Preparation and serving of canvass and bid forms

• Preparation of purchase order

• Preparation of documents required for payments of goods and services

On the other hand, the suppliers were not quite satisfied to the responsiveness of

some processes. These involved those which were rated only as moderately responsive.

One is on the conduct of canvass or bidding from the time the Purchase Request had

been accepted and recorded for transaction. This is critical considering that after this had

been undertaken, the lowest complying suppliers shall be determined and upon whom

shall be awarded the delivery of desired the goods and services. Of course this shall be

effected after a thorough evaluation which is done as far as the City is concerned on a

separate occasion.

Likewise, from the perspective of the Requesting Office, upon serving of the

canvass or bid forms, this implies that an impending delivery of the goods and services

that had been the subject of request will be effected. With this, any delay will cause

repercussion on the processes because of such expectation.. In effect, this is how this

stage is critical to the entire procurement process and to the Requesting Offices.

Timeliness of Response

For this area of concern, the local government respondents generally rated the

actions taken as timely. Yet, just like the concern on responsiveness, there are matters

worth considering if only to satisfy the demands for their timeliness in initiating actions

thereof. These include the following where the respondents rated as moderately timely in

regards to actions taken by the concerned personnel or officials:

• Preparation and serving of canvass and bid forms

• Approval of the abstract of quotation

• Preparation and serving of Purchase Orders

• Monitoring of compliance to period of delivery

• Delivery of goods and services

• Preparation of documents required for payments

• Post delivery inspection and evaluation

On the other hand, among the processes involved, it can be surmised that all those

which are under the pre-procurement phases are considered by the national government

respondents as carried out on time including a few ones under the procurement phase. In

general terms, these are part of the process but do not actually influence the delivery of

the goods and services on time. The overall rating of moderately timely in the action

being undertaken relative to the various processes speaks for it as observed by these

respondents. This observation reflect the weakness of the city procurement process as far

as timeliness is concerned in acquiring various goods and services. In effect, those

processes which were rated as timely carried out by the respondents include the

following:

• Accomplishment of Supplies Availability Inquiry (SAI)

• Preparation of Purchase Request

• Preparation of Allotment Obligation Slip (ALOBS)

• Approval of Purchase Request

• Preparation and serving of canvass and/or bid forms

• Evaluation and awarding

• Preparation of Purchase Order

As far as the suppliers are concerned, their general notion for this area of concern

is that the acts undertaken by those involved in the process is moiderately. Actually, for

them only two (2) processes based on their experience, are acted on a timely basis. These

are the approval of the Purchase Order and the inspection and acceptance of the goods

and services being delivered. The rest as they perceived are moderately timely acted by

those concerned.

Actually, the responses of all the foregoing respondents can be best illustrated in

their reactions as to the number of days of actions taken for each transaction as shown in

Table 8.

As can be observed in the said table, the accomplishment of the supplies

availability inquiry form or SAI which is the first stage in the procurement processes,

out of sixty four (64) local respondents, thirty eight (38) or 59.37% remarked that the

task is accomplished on a less than a day basis. On the other hand, twenty six (26) or

41.55% held that it was within the 1-15 days period. Relative hereof, sixteen or 72.72%

of the representatives from the National Government Agencies noticed that its

accomplishment is within the 1-15 days period compared to only six (6) or 27.28% who

observed that the task was finished in less than a day. This situation can be attributed to
the fact that the City Accounting Office is the one accomplishing the Supplies

Availability Inquiry and

given their voluminous work, sometimes it takes their personnel a little longer to

complete the task.

In essence, Table 8 reveals that there were no responses from the suppliers in the

same procurement phase. This is so since they are not in a position to determine its

characteristics for the reason that their concern starts upon receipt of the canvass or bid

forms for this is the stage they offer quotations to the desired goods and services.

Meanwhile, for the preparation of Purchase Request, thirty two (32) or 50.00%

among the Local Government respondents said that it is prepared on a less than a day

basis while thirty (30) or 46.87% cited among others that it is within the 1-15 days

period while two (2) others or 3.13% found it to be beyond fifteen (15) days. This

scenario brings about doubts why it takes that long when these documents are being

prepared by the Requesting Parties themselves. Relative hereof, the reason can be

attributed to the fact that this document is based on the entries of the supplies

availability inquiry form or SAI, hence, it is dependent on the accomplishment of this

document. In this regard, the same observations are being given by the representatives

from the National Government Agencies. From here, it can likewise be observed that the

pattern is the same for the preparation of the Allotment Obligation Slip (ALOBS) and

the approval of the Purchase Request thereof.

In terms of approval of the Purchase Request, it normally takes days because this

document has to be reviewed in reference to the specifications and price levels. In cases
where the Requesting Parties can provide accurate specifications on the goods and

services which are the subject of the request , then there are no issue of delays. For the

Allotment Obligations Slip, it is the considerable workload of those involved in the City

Budget Office that constrained them to act on these documents a few days after receipt

thereof. With this circumstance, it can be observed that no transaction can be realized on

time if it lacks appropriate system and procedures.

Under the procurement phase, particularly on the evaluation and recording for

transaction stage, only nine (9) or 14.06 % remarked that it is acted in less than a day.

But majority at fifty-five (55) or 85.94% noted that it takes time and within the 1-15

days period. Relative hereof, the pattern is more or less similar to the responses of those

from the National Government Agencies and the suppliers.. This is so since although the

Purchase Request is already approved, however, the existing experience reveals that

oftentimes these documents lacks the necessary attachments for its consummation like

the availability of the Annual Procurement Program which should have been submitted

to the City General Services Office for reference prior to the transaction. The price and

specification is likewise reviewed to ensure that the consummation of the said

transaction has no impediments.

Moreover, in the preparation of the canvass or bid forms, normally it takes days

due to the mandated number of days that have to lapse before pushing through with the

transaction. If there are those which are accomplished on a less than a day basis, this

involves canvassing of goods and services with an amount usually less than a thousand

pesos.
 Likewise, the conduct of canvass or bidding takes place within the 1-15 days

period. This is for the reason that there should be attained a wider publication as

espoused by existing rules and procedures.

From the preparation of the abstract of quotations up to the post-evaluation stages, it

shall be noted that the trend is the same as observed by the majority of the respondents

where they emphasized that these are undertaken within the 1-15 days period..

Normally, this is how it takes due to the standard operating procedures that have to be

followed.

Yet, what have to be given attention are those that takes place beyond 15 days. In

this regard, although majority of the local respondents observed the 1-15 days mark as

the period of response made for the various procurement processes, however, a

considerable number varying from sixteen (16), seventeen (17), twenty (20) and twenty

one (21) honestly cited that the delivery of goods and services, conduct of inspection

and acceptance thereof, preparation of documents for payments of the deliveries and

post delivery inspection and evaluation in that order, are effected beyond fifteen (15)

days.

On the other hand, respondents from the national government agencies identified the

processes like conduct of canvass and bidding from the time the Purchase Request had

been accepted and recorded for transaction, preparation of the abstract of quotations and

minutes if the mode of procurement is bidding and preparation of Purchase Order after

awarding to the lowest complying supplier as those which are acted beyond fifteen (15)

days. For suppliers, however, their interest is more on the preparation of documents
required for payments for the deliveries which they observed to take beyond the 1-15

days which obviously will affect their financial operations.

In its entirety it shall be noted that beyond fifteen (15) days maybe an allusion to a

number of months before the stages in the process as specifically mentioned above are

completed.

Hence, this circumstance is critical for it concerns already the deliveries of goods and

services which will be expected to cause negative repercussion if no appropriate

interventions will be initiated.

Significance of Timeliness to Agency and Establishment Operations

This has reference to the timeliness in the responses of the concerned personnel of

officials to the different procurement processes. In this regard, all the local government

and national agency respondents were one in noting down that

the timeliness of actions taken to all the stages in the procurement process are significant

to their operations. By this premise, the implication is that any lapse that maybe

committed in the process of acquiring the desired goods and services will have an effect

to the operations of the concerned agencies or establishments that may boil down to the

inefficiency in the delivery of services or attending to the need of their clients.

On the other hand, the supplier-respondents likewise affirmed that the same are

significant to their transactions obviously since these involved their financial standing

so that this will have bearing on their track record and in their future business

engagement with the city government.

Adequacy Level of Systems and Mechanisms

 In the course of the City Government effort of putting in place its public

procurement processes, it is instituting various systems and mechanisms. Yet, from the

purview of the local government respondents, still these are only moderately adequate

which is also observed by the representatives of national government agencies and the

suppliers themselves.

Although, there are initiatives which merited adequacy from their perspectives, yet,

these involved only a few of these systems and mechanisms. These include the tracking

system to facilitate monitoring of the flow of the procurement documents, policy

measures to preserve the integrity of the procurement processes, skills trainings for those

involved in the procurement processes and values formation for them. On the other

hand, other vital instruments of this area of government operations gained a rating of

lesser magnitude such that those which are only moderately adequate as far as the

respondents are concerned encompass such mechanisms as follows:

• Feedbacking among those involved in the procurement process

• Systems and procedures to fast track the procurement processes

• Measures to maintain timeliness, fair price and quality deliveries

• Measures to promote a professionalized relationship between and among the suppliers

and the City Government

• Post-procurement mechanisms to cover analysis as to compliance to procedures, price

level, quality and timeliness of deliveries and effects on office operations in the

context of service delivery

• Transparency and confidentiality

For the national government respondents, their overall outlook for all these systems and

mechanisms is that these are only moderately adequate. Notwithstanding though, there

are concerns which they believed had been adequately instituted, which are as follows:

• Tracking system to facilitate the monitoring of the flow of the procurement

documents

• Policy measures to preserve the integrity of the procurement process

• Skills trainings for those involved in the procurement process

• Values formation for those involved in the procurement process

• Measures to promote a professionalized relationship between and among the suppliers

and the City Government

Further, for the supplier-respondents, amid the fact that they shared their observation

with those from the local government and national government agencies that in general

terms the systems and mechanisms are only moderately adequate, however, they differ in

a few areas like the tracking system to facilitate the monitoring of the flow of

procurement documents which they rated as moderately adequate and where the other

respondents deemed as adequate. The same holds true for the values formation among

those involved in the procurement process which they considered as adequate but in the

perspectives of the local government and national government agencies respondents is

only moderately adequate

Effectiveness Level of the Systems and Mechanisms

This refers to the way the systems and mechanisms are being operationalized. In

this context, the observations of all the respondents reveal that generally these are just

moderately effective. The fact is that only a few among the variables are being rated as

effective. For the local government respondents, these include the tracking system to

facilitate the monitoring of the flow of the procurement documents and skills trainings

and values formation for those involved in the procurement process. On the other hand,

representatives of the national government agencies had a similar rating for the same

variables except for those related to skills trainings. As far as the supplier-respondents

are concerned, they appreciated as effective the skills trainings for those involved in the

procurement process, feedbacking mechanism and systems and transparency and

confidentiality.

Significant Difference on the Perceptions of Respondents

Using the t-test tool and as shown in Table 12, it is found out that at a=.05 the

values of .000 each for pre-procurement and procurement phases and at .008 for the

post procurement phase reveal that there is a significant difference in the perception on

the responsiveness in the three (3) phases of the public procurement system in the Island

Garden City of Samal between the local government and national agencies personnel.
Table 12. Significance difference of the respondents’ perceptions on the responsiveness of the

public procurement process in the three phases between local government and national agencies

personnel

Test Value = 3
T Df Sig: Mean 95% Confidence
(2- Difference Interval of the
tailed) Difference
Lower Upper
Pre-procurement 6.8884 85 .000 .7200 .4727 .9673 S R
Procurement 10.625 85 .000 .4071 .3278 .4863 S R
Post procurement 6.453 85 .008 .4900 .2463 .7313 S R

At a=.05

On the other hand, at a=.05, the value of .000 as illustrated in Table 13, manifests that

there is a significant difference in the perception on the responsiveness of the entire

public procurement system in the Island Garden City of Samal between the Local

Government and National Agencies personnel. In this regard, it follows that, the null

hypothesis is hereby rejected.

Table 13. Significance difference of the respondents’ perceptions on the responsiveness of the
entire public procurement process between local government and national agencies personnel

Test Value = 3
T Df Sig: Mean 95% Confidence
(2- Difference Interval of the
tailed) Difference
Lower Upper
City Procurement 1.958 85 .000 .4858 .4034 .5683 S R
System

At a=.05
 The reason why they differ in their perceptions is the fact that their experiences

attendant to the procurement system in the City likewise vary. For one, the Local

Government employees are already used to the process and over time they are able to

adjust to it. While some still has misgivings on the limitations

of the process but being part of the institution which is carrying out the same, the general

perspective is that it is their own process and they have to live with it. This does not

mean however, that just because it is their system, they want to conceal its inadequacies

before public scrutiny. On the contrary, being an insider so to speak, they are quite

liberal in dealing with these limitations.

On the other hand, the personnel from the National Agencies represent separate

institutions which also have their respective procurement systems. In this regard, based

on their views, it can be safely stated that their process may be better from what they

experienced in the City. They arrived at a different conclusion because their experiences

speak for it.

This perception from the representative of the national government agencies

maybe validated by the other group of respondents, the accredited suppliers who

rendered more or less a similar observation. Having a profit orientation in their dealings

with government institutions in the context of procurement of goods and services, they

are inclined to be critical when their financial status is at stake.