GENERALI OPERATING MANUAL Document...GENERALI OPERATING MANUAL Document #: GPWPPM_M0000600 Revision:...

GPWPPM_M0000600_Procurement_20080214.doc Printed 4/4/2008

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GENERALI OPERATING MANUAL Document #: GPWPPM_M0000600

Revision: 0

TITLE: PROCUREMENT PROGRAM of 27

Prepared & Issued By:

ORIGINAL SIGNED Procurement Program Team/ RMD

Reviewed By:

ORIGINAL SIGNED Chief Operating Officer

Approved By:

ORIGINAL SIGNED President/ Chief Executive Officer

REVISION HISTORY

REV Description of Change Author Effective

Date 0 Initial Release (process review initiated by COO, coordinated by Project &

Process Management; program formalized and operationalized by RMD; manual and program approved by CEO)

SMSañojr 20080401

1

2

3

REFERENCE DOCUMENTS

DOCUMENT #/ LOCATION DOCUMENT TITLE

Note: Should any referenced document conflict with provisions of the Generali Asia Operating Manual or the Assicurazioni Generali Operating Manual, the latter two shall take precedence.

Documents referenced in this procedure are applicable to the extent specified herein.


Revision: 0

TITLE: PROCUREMENT PROGRAM of 27 Prepared & Issued By:

Procurement Program Team/ RMD

Reviewed By:

Chief Operating Officer

Approved By:

President/ Chief Executive Officer

GPWPPM_M0000600_Procurement_20080214.doc Page 2 Printed 4/4/2008

TABLE OF CONTENTS 1. GENERALI CORPORATE POLICIES ON PROCUREMENT...........................................................................................3

1.1. Purpose .......................................................................................................................................................................3 1.2. Scope ..........................................................................................................................................................................3 1.3. Approval Authority .......................................................................................................................................................3 1.4. Definitions and Acronyms ............................................................................................................................................3

2. RESPONSIBILITIES.........................................................................................................................................................5 2.1. General Services Department (GSD) ..........................................................................................................................5 2.2. Information Technology Division (ITD).........................................................................................................................6 2.3. National Sales Support & Compliance Department (NSSC)........................................................................................6 2.4. Marketing Department .................................................................................................................................................6 2.5. Division Heads.............................................................................................................................................................6 2.6. Finance and Accounting Division (FAD) ......................................................................................................................6 2.7. Requesting Units/ Employees......................................................................................................................................7

3. IMPLEMENTING GUIDELINES AND PROCEDURES.....................................................................................................9 3.1. Who requests and who pays when we procure goods and services?..........................................................................9 3.2. Where do we send requests for goods or services? ....................................................................................................9 3.3. Stages of procurement: how does the process work? ...............................................................................................10 3.4. How do we manage our vendors and providers?.......................................................................................................11 3.5. How does Generali obtain goods and services from outside sources?......................................................................13

4. FORMS ..........................................................................................................................................................................20 4.1. Optional Purchase Order Cover Letter ......................................................................................................................20 4.2. Sample Purchase Order (PO)....................................................................................................................................22 4.3. Terms and Conditions of Purchase............................................................................................................................23 4.4. Procurement Request Form.......................................................................................................................................24 4.5. Vendor Accreditation Application Form......................................................................................................................25

5. Metrics............................................................................................................................................................................27 6. Records ..........................................................................................................................................................................27 7. Risk Management...........................................................................................................................................................27


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1. GENERALI CORPORATE POLICIES ON PROCUREMENT

1.1. Purpose

This manual establishes the policies and procedures for Generali procurement.

1.2. Scope

This manual applies to all Generali procurement activities, including requisitions and purchases for both goods and services, covering all Generali locations.

1.3. Approval Authority

Chief Executive Officer (CEO) and Chief Operating Officer (COO)

1.4. Definitions and Acronyms

These definitions are based on Philippine Republic Act 9184, the Government Procurement Reform Act, 10 January 2003.

1.4.1 Approved Budget for

the Contract (ABC) Refers to the budget for the contract duly approved by the Head of the Procuring Entity.

1.4.2 BAC Refers to the Bids and Awards Committee established for each competitive bidding process.

1.4.3 Bid Refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents.

1.4.4 Bid Price The amount proposed by a competing vendor as payment by Generali for goods and/ or services procured. Default currency is PHP (Philippine Pesos). Foreign currencies must be converted to PHP using the Bangko Sentral ng Pilipinas (BSP) exchange rate at the date of the transmission of the bid.

1.4.5 Bidding Documents Documents issued by the Procuring Entity as the basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.

1.4.6 Competitive Bid Threshold

The peso amount of required goods and services, above which competitive bidding must be used in gathering quotations.

1.4.7 Competitive Bidding A method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract.

1.4.8 Consulting Services Refer to services for infrastructure, business analysis and other types of projects or activities requiring adequate external technical and professional expertise that are beyond the capability and/ or capacity of Generali to undertake such as, but not limited to: (i) advisory and review services; (ii) pre-investment or feasibility studies; (iii) design; (iv)


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construction supervision; (v) management and related services; and (vi) other technical services or special studies.

1.4.9 Goods Refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of business or in the pursuit of any Generali undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplied provided by the procuring entity for such services.

1.4.10 Head of the Procuring Entity

Refers to the Head of any unit engaged in procuring goods or services.

1.4.11 Infrastructure Project Includes the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of offices, communication facilities, information technology projects, other related construction of technology implementation project.

1.4.12 Principal A provider of goods or services who actually manufactures the goods or actually performs the services. Sometimes they can be represented by a “Trader.” (See definition of “Trader.”) Examples of Principal: car manufacturer; furniture manufacturer; business consultant; subcontracted specialized computer programmer; owner of commercial real estate.

1.4.13 Procurement Acquisition of Goods, Consulting Services; contracting for Infrastructure Projects by the Procuring Entity; and evaluating the impact of the acquisition. Procurement includes the lease of goods and real estate, and requisitions without payment. Purchasing, which is limited to buying goods or services, is a subset of procurement. See Purchasing.

1.4.14 Procuring Entity Organization procuring Goods, Consulting Services and Infrastructure projects.

1.4.15 Purchaser Person or organization to whom something is sold.

1.4.16 Purchasing Buying goods or services from vendors; excludes requisition from General Services. Purchasing is a subset of procurement in both scope and process. See Procurement.

1.4.17 Request for Quotation An invitation to bid typically for transactions where price is the key factor in the purchasing decision.

1.4.18 Request for Proposal An invitation to bid typically for higher value and/ or complex transactions where factors in addition to price will be used to make the final purchasing decision.

1.4.19 Requisition Request for goods or services where an actual purchase does not occur; typically applies to General Services when providing office supplies to a department. Transfer of goods is reflected in a debit from the department’s budget and any check paid to vendors.

1.4.20 Trader A provider of goods or services who neither manufactures the goods nor performs the service, but rather represents the “Principals” who actually create the goods or services. See Principal. Examples of Trader: car


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dealer; furniture dealer; comprehensive software consulting firm that subcontracts specialists; real estate broker.

1.4.21 Unit in Charge Unit designated to process and handle procurement requests.

1.4.22 Vendor Person or organization selling goods or services.

2. RESPONSIBILITIES

Authorized procurement functions shall be performed by the following units, noting that GSD, ITD, NSSC and Marketing are units in charge of their respective procurement processing assignments:

2.1. General Services Department (GSD)

2.1.1. Processing procurement requests for:

2.1.1.1. Building, equipment and utilities (rent, fees, contracts)

2.1.1.2. Business permits, registrations, professional (non-Agency) licenses

2.1.1.3. Courier services

2.1.1.4. EDP supplies

2.1.1.5. Fixtures

2.1.1.6. Furniture

2.1.1.7. General services (maintenance & upkeep, security, janitorial, commissary, etc.)

2.1.1.8. Logistics (transportation, hauling, equipment, warehousing, etc.)

2.1.1.9. Motor vehicles

2.1.1.10. Office supplies

2.1.1.11. Printed forms & supplies (reprints)

2.1.1.12. Telecommunications

2.1.1.13. Travel

2.1.2. Issuing Purchase Orders (PO’s) to vendors on behalf of requesting units

2.1.3. Receiving deliveries of goods and services

2.1.4. Accreditation, evaluation and monitoring of vendors

2.1.5. Evaluation and monitoring of procured goods and services, and impact of their acquisition


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2.2. Information Technology Division (ITD)


2.2.1.1. Computer peripherals

2.2.1.2. Office machines/ microcomputers (e.g. desktops, laptops)

2.2.1.3. Mainframe/ midrange computers and terminals

2.2.1.4. Microcomputer software & services


2.2.3. Receiving deliveries of EDP/ computer-related equipment and services

2.3. National Sales Support & Compliance Department (NSSC)


2.3.1.1. Provincial procurement (Regional Offices)

2.3.1.2. Travel by Sales & Marketing Employees


2.3.3. Receiving deliveries of Sales & Marketing goods and services

2.4. Marketing Department


2.4.1.1. Corporate giveaways/ promotional items

2.4.1.2. Events/ events management

2.4.1.3. Printed matter for initial release or requiring new design

2.4.1.4. Signage

2.4.2. Coordinating with GSD on issuance of Purchase Orders (PO’s)

2.4.3. Receiving deliveries of Marketing-specific goods and services

2.5. Division Heads

2.5.1. Procurement for division special events

2.5.2. Review/ approval of department procurement requests

2.6. Finance and Accounting Division (FAD)

2.6.1. Authorize payments for externally-procured goods and services to vendors


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2.6.2. Facilitate splitting of shared payments according to GPIC-GPLAC proportions (GP Insurance Company and GP Life Assurance Company), based on one of more of the ff:

2.6.2.1. According to budget allocation of GPIC vs. GPLAC for particular item(s)

2.6.2.2. Amount to be allocated to one GP company and proportion to be charged later from the GP other company

2.7. Requesting Units/ Employees

2.7.1. Determine budget

2.7.1.1. Calculate remaining balance available for procurement (from monthly FAD budget)

2.7.1.2. For expenses shared between GPIC (GP Insurance Company) and GPLAC (GP Life Assurance Company), proper splitting of amounts based on one or more of the ff:

2.7.1.2.1. Budget allocation ratio of GPIC vs. GPLAC for the particular item(s)

2.7.1.2.2. Amount to be allocated to one GP company and proportion to be charged later from the GP other company

2.7.2. Requesting units or employees shall send all procurement requests to GSD, except:

2.7.2.1. Request the following from Marketing:

2.7.2.1.1. Printed matter for initial release or requiring new design

2.7.2.1.2. Corporate giveaways

2.7.2.2. Request the following from ITDTIM:

2.7.2.2.1. Office machines/ microcomputers (e.g. desktops, laptops)

2.7.2.2.2. Computer peripherals

2.7.2.2.3. Microcomputer software & services

2.7.2.2.4. Mainframe/ midrange computers and terminals

2.7.2.3. Request the following from NSSC:

2.7.2.3.1. Sales & Marketing office configuration

2.7.2.3.2. Sales & Marketing travel (transport, transfers, tickets, accommodations, meals, etc)

2.7.2.4. Provincial offices local procurement:

Provincial employees may procure the ff. locally without GSD, subject to Regional Office approval levels and GSD list of recommended products and vendors:

2.7.2.4.1. Consumable supplies (pens, plain paper, plain envelopes, folders, drinking water, computer-related consumables, etc)


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2.7.2.4.2. Local facilities/ services (building maintenance; phone, fax, copier repairs; storage/ warehousing)

2.7.2.4.3. Events (hotels, venues, public address systems, catering, etc.)

2.7.2.4.4. Courier service

2.7.2.4.5. EDP supplies

2.7.2.4.6. Vehicles: rental, etc.


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3. IMPLEMENTING GUIDELINES AND PROCEDURES

3.1. Who requests and who pays when we procure goods and services?

3.1.1. Every Procurement Request Form must have at least two sets of signatures:

3.1.1.1. Requesting employee

3.1.1.2. Approving authority/ authorities

3.1.2. Payment for procurement requests shall depend on the approving authority levels of the unit, department and divisions involved.

Request Amount Approving Authority/ Authorities

Up to PHP100,000 subject to petty cash rules

Department Head

Greater than PHP100,000 and up to PHP500,000

Division Head

Greater than PHP500,000 and up to PHP3,000,000

Division Head and any one signatory from Group “A” or “B” of Generali Secretary’s

Certificate

Greater than PHP3,000,000 Division Head and any one signatory from Group “A” of Generali Secretary’s Certificate

3.1.3. If no budget exists for the requested procurement, the requesting unit must first obtain approval for the budget. When the budget is approved, then the requesting unit can initiate the procurement process. Initiating procurement without funds will result in Code of Conduct proceedings being initiated by FAD Budget and Control under Part III section b) on misappropriating, withholding, misuse or gross negligence in the use or handling of company funds.

3.2. Where do we send requests for goods or services?

3.2.1. Requesting employees should observe the procurement rules outlined in section 2.7 Responsibilities of the Requesting Employee.


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3.2.2. Flowchart: where to send procurement requests

3.3. Stages of procurement: how does the process work?

3.3.1. Narrative: procurement process

3.3.1.1. Requesting Employee determines type of procurement (GSD, ITD, NSSC, Marketing). See 3.2 for this procedure.

3.3.1.2. Requesting Employee sends Procurement Request Form to the appropriate department or initiates own local procurement.

3.3.1.3. Department determines whether requested items are in stock.

3.3.1.3.1. If in stock, go to 3.3.1.4.

START

10. Provincial

procurement?

11. Office & computer

consumables, local facilities/

events?

12. Employee

sends request to

GSD

1. Printed matter?

2. Corporate

giveaways?

3. Employee sends

request to Marketing

4. Computer-related

equipment?

5. Employee sends

request to ITD

UNIT IN CHARGE: WHERE TO SEND PROCUREMENT REQUESTS

(determining type of procurement and corresponding unit in charge)

Y

N

Y Y

N N

N

Y

N

5. Sales & Marketing

travel?

6. Sales & Marketing

office configuration?

7. Employee sends

request to NSSC

30. Continuation of procurement

process…

13. Provincial employee

initiates own local procurement

Y

Y

N

Y N

20. Continuation of procurement

process…


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3.3.1.3.2. If not in stock, go to 3.3.1.5.

3.3.1.4. Department releases goods/ services to Requesting Employee.

3.3.1.5. Department obtains requested goods/ services. Go to 3.3.1.4.

3.3.2. Flowchart: stages of procurement

3.4. How do we manage our vendors and providers?

Through our Vendor Accreditation and Management (VAM) program. VAM ensures the quality of procured goods and services by holding vendors to a common standard.

3.4.1. Objective

The Vendor Accreditation and Management program ensures that all vendors who wish to supply GP are capable of providing quality goods or services, and have technical, commercial, and financial ability, adequate equipment and facilities, good service performance, or any other measures that will ensure quality and reliability in every purchase made.

3.4.2. Scope

START

STAGES OF PROCUREMENT

3. Unit in charge determines: in

stock?

5. Unit in charge obtains

requested goods/ services

4. Department releases goods/ services to requesting unit/

employee

END

2. Requesting unit/ employee sends Procurement Request Form to unit in

charge

Y N

1. Requesting unit/ employee determines type of

procurement (GSD, ITD, NSSC, Marketing)


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VAM shall cover all new vendors applying for accreditation and existing vendors of GP who seek to augment their existing product lines. Existing suppliers are assumed to be accredited for the goods and services they currently render. However, they must be accredited anew if they wish to expand their scope. Various GP offices can recommend candidates for Accreditation to GSD, which then makes final decisions.

3.4.3. Application for Vendor Accreditation

3.4.3.1. New vendors must personally apply for accreditation at the Generali Pilipinas General Services Department, where they will be provided with the Application for Vendor Accreditation Form containing the list of requirements. It must be noted that this application form will only be available in limited quantities.

3.4.3.2. The Application for Vendor Accreditation Form contains basic necessary information about the vendor's company, organization, product/services offered, lists of tools/equipment/machinery, etc. It also exhibits the "Company Aspects" section where new vendors must provide details on their resources (materials, human, and financial), management (market characteristics commercial attitude), and technology (information systems).

3.4.3.3. The General Services Department (GSD) shall endorse members of vendor accreditation committees focused on the type of goods and services being offered by the vendor. GSD shall select personnel representing:

3.4.3.3.1. Product user groups (if the products are known);

3.4.3.3.2. Financial Administration Division (FAD);

3.4.3.3.3. Other qualified nominees as determined by GSD.

3.4.3.4. Accreditation of Principals

3.4.3.4.1. Vendors who do not directly manufacture or create the goods and services that they sell (e.g. furniture dealers and installers; consultants who subcontract specialized tasks; computer hardware dealers), also known as “Traders,” will be responsible for facilitating the accreditation of their original manufacturers or subcontractors, also known as “Principals.” For more information, see glossary definitions of Principal and Trader.

3.4.3.4.2. Principals are accredited based on the commodity that they carry. The Traders, on the other hand, are accredited based on the principal that they represent.

3.4.3.4.3. Traders should be able to provide extra effort or value-added service such as warehousing; otherwise GP may:

3.4.3.4.3.1. Require certification as authorized dealer for the Principals;

3.4.3.4.3.2. Attempt to directly contact the Principals;

3.4.3.4.3.3. Exclude the Trader from accreditation.


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3.5. How does Generali obtain goods and services from outside sources?

When departments request procurement for goods or services that are not in stock, the unit in charge must obtain these goods or services from outside Generali. There are two ways of obtaining goods and services from external sources: (a) Procurement with competitive bidding; (b) Procurement without competitive bidding (through canvassing). Both as described as follows.

3.5.1. Guidelines and procedures

3.5.1.1. Types of Competitive Bidding: Generali has two clearly defined modes for soliciting competitive bids:

3.5.1.1.1. RFQ, or Request for Quotation, when price is the only factor in selecting the winning bidder;

3.5.1.1.2. RFP, or Request for Proposal, where factors in addition to price are considered in selecting the winning bidder. E.g. product quality, reputation, turnaround time, etc.

3.5.1.2. Narrative: Competitive Bidding

Regardless of mode, the following sections describe the competitive bidding process.

3.5.1.2.1. Requesting unit submits a completed Procurement Request Form (PRF) to unit in charge clearly indicating the goods and services to be purchased with estimated purchase price, and identifying potential sources of supply (if known). If requesting unit will split payment between GPIC and GPLAC, the PRF must state the proportion of the cost assigned to GPIC and GPLAC, based on one of the ff:

3.5.1.2.1.1. According to budget allocation of GPIC vs. GPLAC for particular item(s)

3.5.1.2.1.2. Amount to be allocated to one GP company and proportion to be charged later from the GP other company

3.5.1.2.2. Requesting unit and unit in charge establish evaluation criteria and weighting (if other than price) which will be used to evaluate bids and proposals.

3.5.1.2.3. Requesting unit and unit in charge establish the Bids and Awards Committee (BAC).

3.5.1.2.4. Unit in charge prepares the RFQ or RFP document for distribution.

3.5.1.2.5. Unit in charge transmits the RFQ or RFP to prospective suppliers. (For future implementation: Unit in charge shall post RFQ’s and RFP’s on an electronic tendering website for the Supplier community at large.)

3.5.1.2.6. GP must grant suppliers a reasonable period of time to submit a bid or proposal (based on the size and complexity of the proposed purchase) in response to the RFQ or RFP.

3.5.1.2.7. Once the RFQ or RFP period closes, unit in charge reviews all bids/proposals submitted before the deadline.


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3.5.1.2.8. The evaluators (BAC) must document the methodology for awarding/ deducting points prior to the review of responses, and use this methodology consistently in evaluating all responses received.

3.5.1.2.9. Each evaluator must create an evaluation summary document clearly showing the point scores awarded, and the reasons for the allocation of said points.

3.5.1.2.10. Based solely on the evaluation criteria, the BAC selects the preferred supplier. Unit in charge shall retain all evaluation documentation, which must clearly indicate the selected supplier as well as the items to be purchased.

3.5.1.2.11. Contracts. All contracts must be drafted by the requesting department and then be submitted to Legal and Compliance for official legal opinion BEFORE being presented to the vendor for examination and finalization. If requesting unit will split payment between GPIC and GPLAC, two contracts must be executed:

3.5.1.2.11.1. One contract must indicate “Generali Pilipinas Insurance Company” as procuring party. The price paid under this contract must follow the allocation for GPIC under this particular budgeted item (e.g. 15% of total agreed cost of the procurement transaction).

3.5.1.2.11.2. Another contract must indicate “Generali Pilipinas Life Assurance Company” as procuring party. The price paid under this contract must follow the allocation for GPLAC under this particular budgeted item (e.g. 85% of total agreed cost of the procurement transaction).

3.5.1.2.12. Unit in charge notifies the selected supplier and issues the Contract/Agreement and/or Purchase Order. If requesting unit will split payment between GPIC and GPLAC, two PO’s must be issued:

3.5.1.2.12.1. One PO must be issued with “Generali Pilipinas Insurance Company” as procuring party. The price paid under this PO must follow the allocation for GPIC under this particular budgeted item (e.g. 15% of total agreed cost of the procurement transaction).

3.5.1.2.12.2. Another PO must be issued with “Generali Pilipinas Life Assurance Company” as procuring party. The price paid under this PO must follow the allocation for GPLAC under this particular budgeted item (e.g. 85% of total agreed cost of the procurement transaction).

3.5.1.2.13. No goods and services are to be provided to the Company until a fully executed Contract/ Agreement and/or Purchase Order is in place. At the same time, all bids are considered final and non-retractable.

3.5.1.2.14. Any revisions/ corrections to Purchase Orders must be requested in writing by interested parties.

3.5.1.2.15. Receiving. Delivered goods must be received by the unit in charge. Other departmental representatives may be present, but the unit in charge must officially receive the goods.


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3.5.1.3. Narrative: No Competitive Bidding

With respect to procedure, the difference between having competitive bidding and not having competitive bidding is the absence of solicitations for proposals or quotations. The procuring person or unit obtains pricing information through other means, mainly canvassing.

3.5.1.4. Narrative: Procurement for Replenishing Consumable Supplies

Procurement for replenishing consumable supplies is a variation on the procurement process, whether through competitive bidding or canvassing. The difference is in the trigger to the process: for replenishables, the inventory level triggers the procurement. Therefore, in most cases it is the unit in charge of maintaining the supply of replenishables that acts as the requesting unit.

3.5.2. FLOWCHARTS

The following flowcharts describe the procurement processes in detail.


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3.5.2.1. Flowchart: Procurement with Competitive Bidding

1. START Use this process to obtain price quotations in lieu of canvassing

3. Requesting unit determines available budget from periodic FAD budget updates

4. Requesting unit submits to unit in charge: * Procurement Request Form * Latest FAD budget update or other proof of budget availability

2. Requesting unit determines type of procurement and unit in charge (GSD, ITD, NSSC, Marketing)

A

10. COMPETITIVE BIDDING PROCEDURE

B

11. Unit in charge prepares contract (agreement) or PO in triplicate

13. Predelivery payments required?

20. Vendor to unit in charge: Predelivery invoice

21. Unit in charge to FAD: Predelivery invoice

22. FAD issues payment check and stamps invoice “PAID”

23. FAD photocopies paid invoice and files payment documents

12. Unit in charge to FAD: Duplicate of PO or contract

24. Unit in charge triggers delivery, sends to supplier: Original PO or approved contract

25. Contract provisions satisfied?

26. Parties revise contract

30. Vendor completes sale

31. Vendor sends to unit in charge: * Sales Invoice * Delivery Receipt * Goods/ services

32. Unit in charge receives, inspects goods/ services and documents

33. Goods/ services in good order?

40. Unit in charge forwards to requesting unit: goods/ services

41. Unit in charge to FAD: * Sales Invoice * Delivery Receipt * Triplicate PO or contract

42. FAD issues payment check; stamps invoice “PAID”; files PO’s and payment documents

43. Postdelivery payments required?

51. FAD refers to postdelivery invoice and PO (or contract) for payment schedule

50. Unit in charge to FAD: Postdelivery invoice


61. END

60. FAD and unit in charge: close all PO’s and contracts

N

N

Y

Y

N

N Y

Y


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COMPETITIVE BIDDING

A

B

A1. Requesting unit to unit in charge: submit Purchase Request Form

A10. Suppliers submit to unit in charge: Formal, sealed bids

A2. RFP/ Request for Proposal needed?

A3. Requesting unit and unit in charge establish evaluation BAC/ Bids and Awards Committee, criteria and weighting (if other than price)

A4. Unit in charge prepares RFP

A5. Unit in charge solicits proposals from at least two accredited vendors/ suppliers

A6. Unit in charge prepares RFQ/ Request for Quotation

A11. Unit in charge stamps/ writes date on bid envelope

A12. RFQ/ RFP submission period closes

A13. Requesting unit and unit in charge open sealed bids

A14. BAC reviews and evaluates all bids, negotiating as necessary

A15. Unit in charge summarizes decision and collates all evaluation documents

A15. BAC selects winning vendor/ supplier

Y

N


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3.5.2.2. Flowchart: No Competitive Bidding (Canvassing Only)

1. START Use this process for canvassing-based procurement (no competitive bidding)

3. Requesting unit determines available budget from periodic FAD budget updates

4. Requesting unit submits to unit in charge: * Procurement Request Form * Latest FAD budget update or other proof of budget availability

2. Requesting unit determines type of procurement and unit in charge (GSD, ISSD, NSSC, Marketing)

11. Unit in charge prepares contract (agreement) or PO in triplicate

13. Predelivery payments required?

20. Vendor to unit in charge: Predelivery invoice

21. Unit in charge to FAD: Predelivery invoice


23. FAD photocopies paid invoice and files payment documents

12. Unit in charge to FAD: Duplicate of PO or contract

24. Unit in charge triggers delivery, sends to supplier: Original PO or approved contract

25. Contract provisions satisfied?

26. Parties revise contract

30. Vendor completes sale

31. Vendor sends to unit in charge: * Sales Invoice * Delivery Receipt * Goods/ services

32. Unit in charge receives, inspects goods/ services and documents

33. Goods/ services in good order?

40. Unit in charge forwards to requesting unit: goods/ services

41. Unit in charge to FAD: * Sales Invoice * Delivery Receipt * Triplicate PO or contract

42. FAD issues payment check; stamps invoice “PAID”; files PO’s and payment documents

43. Postdelivery payments required?

51. FAD refers to postdelivery invoice and PO (or contract) for payment schedule

50. Unit in charge to FAD: Postdelivery invoice


61. END

60. FAD and unit in charge: close all PO’s and contracts

N

N

Y

Y

N

N Y

Y

5. Unit in charge establishes selection criteria and canvasses at least two suppliers/ vendors

6. Unit in charge selects winning supplier/ vendor based on criteria


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3.5.2.3. Flowchart: Procurement for Replenishing Consumable Supplies

START

3. Supplies below desired level?

5. Unit in charge obtains requested goods/ services via canvassing or competitive bidding

END

Y N

1. Unit in charge performs inventory check


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4. FORMS

Forms required for this document:

Form Number Title

Procurement Request Form

Purchase Order (PO)

4.1. Optional Purchase Order Cover Letter

If deemed helpful, a cover letter with the ff. text can be attached to the first PO ever sent to a vendor.

GENERALI PILIPINAS

VENDOR NAME

Vendor Address

Tel: (07) 1234-5678 Fax: (07) 1234-8888

E-mail:

Date:

Purchase Order(s):

Dear Sir or Madam,

We are pleased to enclose/attach the above order(s). Our terms and conditions of purchase are as shown.

Please acknowledge immediately by returning a copy of the Purchase Order signed and/or stamped and dated. If it is not received within seven (7) days, we will assume that the Vendor has accepted the order(s) in full. Please advise us of any discrepancies that may occur in the merchandise description, price or delivery date, so that we may approve and incorporate the changes into the Purchase Order(s).

Please contact our General Services Department on all shipping matters including the selection of vessel for ocean shipment, flight for air shipment, or trucking or railroad company for land delivery. We stress the importance of close adherence to the delivery date. Your close cooperation is required in the processing of the enclosed/attached order(s).

Where the packing information is required for our order(s), please supply the information on the return copy of the order(s). Where the transferring bank charges (including commissions, fees, costs, or expenses) in respect of a letter of credit transfer are applicable, these shall be on Vendor's account.

We wish to state our company's strict policy that employees are prohibited to accept gifts or money that may be given by our Vendors or their subcontractors. Should such a case arise, the members of our staff will be


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subject to investigation and we will discontinue doing business with the Vendors concerned. Our decision to work with our Vendors rests on the suitability and quality of products offered to us and on-time delivery.

We look forward to your cooperation and continued support so that both our businesses can grow together for our long range mutual benefits.

Please sign and/or stamp and return copy of this letter for our records.

Sincerely yours,

Authorized signature/stamp

Acknowledged by Vendor

Authorized signature/stamp


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4.2. Sample Purchase Order (PO)

P.O.# :

Date :

Delivery Date :

Terms :

QTY UNIT UNIT COST TOTAL COST

-P -P

TOTAL AMOUNT : -P

NOTE: Please indicate GENERALI PILIPINAS INSURANCE COMPANY/ GENERALI PILIPINAS LIFE ASSURANCE COMPANY on SalesInvoice and Delivery Receipt DELIVERY ADDRESS: Gercon Plaza, 7901 Makati Ave., Makati City

THIS ORDER IS SUBJECT TO THE CONDITIONS OF PURCHASE ENDORSED ON THE REVERSE SIDE OF THIS FORM

P.R. Reference # :

TIN:

Approved By:Prepared By:

ITEM DESCRIPTION

P U R C H A S E O R D E R

Name:

Address:

Attention:

Gercon Plaza, # 7901 Makati Ave., Makati City, Philippines * Tel+63.2.886.5258 * Fax+6.32.893.5786 * www.generali.com.ph * [email protected]

Noted By:

Signature above Printed Name/ Date Signature above Printed Name/ Date

Signature above Printed Name/ Date Signature above Printed Name/ Date


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4.3. Terms and Conditions of Purchase

a. In case of non-delivery within the contracted time for shipment, the Vendor agrees to be held responsible for any consequences arising therefrom.

b. It is also distinctly understood and agreed as the basis of this contract that the description, quality, quantity and all other conditions stipulated must be strictly fulfilled, and that any inspection of the goods prior to shipment shall not constitute a waiver of any condition or an admission that any condition has been fulfilled.

c. The Vendor agrees to be held responsible for all claims arising on account of inferior quality and/or breaches of contract and/or any other reasons on presentation of any adequate evidence and/or any competent surveyor's and/or analyst's certified report who is to be appointed by the Purchaser or his/her consignee of the goods at destination. Expense for the return and re-shipment of defective and repaired merchandise shall be on Vendor's account.

d. The Vendor guarantees that the merchandise is not the subject of production by registration or established usage under trademark, copyright, design, license, or business name.

e. The Vendor agrees to assume full responsibility that the merchandise supplied conforms with the safety regulations of the importing country.

f. The freight measurements of the goods specified in this contract is based on the Vendor's given information, any additional freight charge incurred due to inexact freight measurements supplied will be on Vendor's account.

g. In the event of force majeure, strike, riot, civil commotion, war, epidemic, quota, embargo, interruption or congestion of transportation, inability to obtain shipping space, or other causes or circumstances beyond the control of the Purchaser, which interfere with the completion of this contract, the Purchaser on giving notice thereof to the Vendor shall be entitled to cancel this contract without paying to the Vendor any damages or compensations. The Purchaser reserves the right to postpone the shipment.

h. No name and address or marks of the Vendor and/or any other information disadvantageous to the Purchaser's interest shall appear on the goods, inner box, export package, and any packaging.

i. All disputes and differences of any description arising from or in connection with this contract or by reason of this contract having been entered into shall be referred to arbitration in the event that the attempted amicable settlements between (or among) parties concerned are futile. At the option of the Purchaser such arbitration shall be conducted either in [name of Exporter's country] or at the port of destination of the goods, and in the latter case shall be between the Purchaser for the account of the Vendor and the Consignee at such port. In the case of arbitration in [name of Exporter's country], such arbitration shall be conducted in accordance with the laws of the [name of Exporter's country] and in other case, in accordance with the laws of the port of destination. Such arbitration shall be final and conclusive and the Vendor shall be bound by any award in such arbitration.

j. All goods purchased are at [currency of exporting country]. When contracted at any foreign currency basis, its equivalent in [currency of exporting country] shall be calculated base on the exchange rate prevailing on the on board date of shipment.

k. Payment will be made by the Purchaser to the Vendor within seven (7) days after L/C negotiated or as otherwise mutually agreed upon. However, the Purchaser reserves the right to postpone the payment.

l. The Purchaser reserves the right to withhold payment on any delivery in settlement of outstanding claims and on any shipments made not to the Purchaser's satisfaction.

m. Where tax refund covering the duty paid on imported raw material is required, the Vendor must supply the accurate tax refund data and must not over declare the weight or other units concerned in the tax refund. Otherwise, the Vendor shall be solely held responsible for any consequences arising therefrom.

n. This contract shall be construed in accordance with the laws of the [name of Exporter's country]. In the event of any conflict, the English text only shall prevail.

o. This contract shall not be affected or varied by any acts or representations of any person employed by either party in connection therewith, whether done or made before or after the execution of such contract, or by any endorsement upon such contract or any part thereof, whether made by way of addition or substitution and whether made in English, [language of exporting country other than English] or any other languages, made by any other persons.


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4.4. Procurement Request Form

Copy for Accounting

Date:

DP# GPLAC: DP# GPIC:

PURPOSE:

Requisitioner/s: Approved by:

Reviewed by: Acct Description:

Acct Code:

Allocation: GPLAC % GPIC %

FINAL PAYMENT:

Copy for unit in charge

Date: #

DP# GPLAC: DP# GPIC:

PURPOSE:

Requisitioner/s: Approved by:

Reviewed by: Acct Description:

Acct Code:

Allocation: GPLAC % GPIC %

FINAL PAYMENT: Purchase Total:

P.R. Reference # :

INITIAL PAYMENT:

(Signature) (Dept/Division Head)

(Accounting/Budget)

7

8

5

6

3

4

1

2

ITEM# ITEM DESCRIPTION REQUEST QUANTITY

Department/ Code:

ITEM DESCRIPTION REQUEST QUANTITY

Requisitioner's Name:

PROCUREMENT REQUEST FORM

Requisitioner's Name:

Department/ Code:

(Office Supplies, Printed Forms, Office Equipment and Furniture)

Purchase Total:

(Signature) (Dept/Division Head)

ITEM#

1

PROCUREMENT REQUEST FORM(Office Supplies, Printed Forms, Office Equipment and Furniture)

INITIAL PAYMENT:

P.R. Reference # :

2

3

4

5

6

7

8

(Accounting/Budget)


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4.5. Vendor Accreditation Application Form

4.5.1. Vendor Accreditation Application Form Page 1

1. Registered Trade/Business Name _____________________________________

2. Business Address ____________________________________________________

3. Telephone Nos. ______________________________________________________

Fax No(s). ___________________________________________________________

Taxpayer Identification Number _______________________________________

4. Line of Business:

______________ Manufacturer ___________________ Dealer

______________ Exclusive Distributor ___________________ Others

(Specify)___________________

Principal Products/Services (Use additional sheets if necessary):

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

5. Form of Ownership:

______________ Single Proprietorship _____________ Corporation

______________ Partnership

6. Capitalization:

Authorized Capital ____________________________________

Subscribed Capital ____________________________________

Paid-up Capital _______________________________________

7. Present Net Worth ____________________________________________________

8. Name of Authorized Representative _____________________________________

Official Title/Position __________________________________________________

Page 2: Supplier Accreditation………


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4.5.2. Vendor Accreditation Application Form Page 2

I hereby certify that the above information and figures are true and correct to the best of my knowledge.

_______________________________

Signature of Proprietor / Manager

Res. Cert. No. :

Issued at :

Date Issued :

Republic of the Philippines)

City of Manila ) s.s

Subscribed and sworn to before me this ____________________ day of

_____________ 20____ affiant exhibiting to me his/her Government Issued Identification (or Residence Certificate)

as indicated above.

NOTARY PUBLIC

Doc. No. _____________

Page No. _____________

Book No. _____________

Series of _____________


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5. Metrics

To assess effectiveness of the procurement system, operational and financial patterns and trends shall be analyzed:

• Number of deviations from the process, and causes.

• Utilization levels of procured goods, particularly consumables.

• Number and nature of procurement transactions. Responsibility for tracking this information lies with the Approval Authority for this document.

6. Records

The following Records shall be generated and managed in accordance with this manual:

Required Record Storage/ Custodian Retention Disposition Protection

7. Risk Management

Identify, analyze and mitigate risks in this process.

# Risk Prob (%)

Impact (0-10)

Exposure Responses

(Mitigation/ Contingency) Trigger Owner

1

2

GENERALI OPERATING MANUAL Document...GENERALI OPERATING MANUAL Document #: GPWPPM_M0000600 Revision:...

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