Page 423 - Manual-of-Operation-Merged

CvSU MANUAL OF OPERATIONS
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a. Procurement System
To a large extent, the cost and availability of supplies and
materials determine the salability and profitability of finished
products. Thus, an IGP must have a procurement system that
possesses the following characteristics:

▪ It must be reliable and fast.
▪ It must be cost and quality sensitive.

Speedy determination of where to purchase what items in what
quantities require that we do away with the usual government

bidding and awarding procedures. For capital expenditure, however,
the Manual suggests that the usual government procedure should be
observed. The same shall likewise apply to purchase of semi-
expendable purchases except when these are urgently needed by the
IGP.

In SUCs with many but small-scale IGPs it would be cost-
effective if centralized body within the facilitative staff will handle all
purchases based on the approved production levels. However, in
SUCs with several medium-to large-IGPs, a decentralized procurement
body under the Project Manager will probably be more efficient.

Whether the procurement system is centralized or
decentralized, its financial requirement will be made in the form of a
cash advance to be liquidated as soon as the supplies and materials
are produced. The amount of cash advance will depend on the type of
IGP and production level. The Imprest Fund System shall be used as
the standard procedure in granting cash advance. A checker or
quality control inspector will also have to be assigned from within the
facilitative staff to ensure that quality requirements are complied with.

Aside from the quality aspect, the checker or inspector will also
determine the appropriateness of the quantity and to a certain extent,
the price of the items produced particularly in purchases made
outside of the planned production level. In no case will purchased
items be admitted into production without passing through the
checker or inspector.

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