Procurement and Financial Performance of Selected National Government Agencies in Camarines Norte

Abstract

This study obtained information regarding the level of procurement and financial performance among selected National Government Agencies (NGA’s) in Camarines Norte. Specifically, the following objectives were addressed: 1) What is the profile of the respondents in terms of: position, years of experience in procurement, and trainings attended on procurement?; 2) What is the perceived level of procurement performance of the National Government Agencies (NGAs) on RA 9184 or Government Procurement Reform Act in terms of legislative and regulatory framework based on RA 9184, institutional framework and management capacity, procurement operations and management practices, and integrity and transparency of the management procurement system?; 3) Is there a significant relationship between the respondents’ profile and their perceived level of procurement performance of NGAs under RA 9184?; 4) What is the financial performance of the selected NGAs in terms of their budget utilization rate?; 5) What are the internal and external factors affecting the procurement performance of the selected NGAs as perceived by the respondents?; and 6) What intervention plan may be recommended to enhance the procurement performance of the selected National Government Agencies in Camarines Norte?
The study used quantitative with descriptive-correlational research design wherein primary data were gathered through a structured survey while secondary data from the NGAs Financial Accountability Reports were also obtained. The statistical tools were utilized in analyzing the data collected; Frequency, percentage and ranking technique to answer the profile of the respondents (SOP 1-2), weighted mean to answer the level of significance (SOP 3), finally, to test the relationship of variables, Somer’s Delta (d), and p-values were applied. There were a total of 45 respondents from three (3) National Government Agencies who participated in the study.
Based on the data gathered, the following are the findings of the study:
1) Out of the 45 respondents, the highest number are BAC Members and procurement staff with 11 & 12 respondents respectively, while only two (2) BAC Chairman participated. While majority of the respondents have 1-5 years of experience in procurement, one respondent has 16-20 years of experience. Further, 38 respondents have already attended trainings on RA 9184.
2) The level of procurement performance of the selected National Government Agencies across all four major indicators — (A) Legislative and Regulatory Framework based on RA 9184 (4.77), (B) Institutional Capacity (4.55), (C) Procurement Operations and Management Practices (4.37), and (D) Integrity & Transparency (4.37), obtained a rating of Very Satisfactory to Outstanding level of procurement performance. Indicator A achieving the highest performance rating, while Indicator C and D as the lowest;
3) The relationship between the respondents’ profile and their perceived level of procurement performance of NGAs under RA 9184 across all four indicators (A to D) of procurement performance, obtained no significant relationship. The corresponding p-values, all above 0.05 (0.623–0.831), revealed no significant relationship between training exposure and perceived procurement performance;
4) Only two out of the three selected NGA respondents were able to provide the necessary financial data for the study, with reported Budget Utilization Rates (BUR) of 95% and 60%, respectively.
5) The external factors received sum of ranks 162, slightly higher than that of the internal factors which is 161. This indicates that procurement is more significantly influenced and affected by external issues such as limited suppliers’ competition, price fluctuation and supply shortages.
6) The proposed intervention plan was formulated to address the areas that need improvement based from the results of the study.
Considering the findings of the study, the following conclusions were drawn:
1) The respondents occupied various procurement-related roles, indicating that procurement performance was assessed from a broad cross-section of agency functions. Most respondents had 1–5 years of procurement experience, reflecting frequent reassignment and role rotation within NGAs. Respondents generally attended at least one procurement-related training, but the frequency and depth varied;
2) NGAs in Camarines Norte exhibit outstanding compliance with RA 9184 requirements. However, Green Public Procurement remains the weakest aspect due to limited awareness and the absence of practical tools to guide agencies. Further, operations were rated very satisfactory, showing that procurement records, evaluations, and contract management are generally well-executed. However, the complaints mechanism and anti-corruption safeguards are not maximized, indicating areas for enhancement to fully strengthen procurement accountability;
3) There is no significant relationship between respondents’ position, years of experience, and number of trainings attended, and their perceived level of procurement performance across all indicators. This means procurement performance perceptions are consistent regardless of personal or professional background, reflecting the standardized and procedural nature of RA 9184 implementation in NGAs;
4) Only two out of three NGAs provided complete FY 2024 financial data, showing a reasonable BUR; however, the absence of the third NGA data, despite formal requests, demonstrates existing challenges in financial transparency and responsiveness. This aligns with respondents’ perception that certain transparency mechanisms require strengthening.
5) The factors affecting procurement performance dwells on both external and internal. Overall, while internal conditions matter, procurement challenges arise more strongly from external factors; and,
6) Based on the identified gaps, the study concludes that NGAs would benefit from practical and implementable interventions so that the level of procurement and financial performance will be enhanced.
Based on the conclusions, the following recommendations were made: 1) The NGAs may also integrate Green Public Procurement (GPP) into agency processes, ensuring that sustainability requirements are systematically incorporated in PPMPs and technical specifications; 2) NGAs may establish a Procurement Complaints and Feedback Quick-Response Desk with clear procedures for handling inquiries, concerns, and complaints from suppliers, observers, and internal stakeholders. This will ensure that procurement practice and implementation are at highest compliance and effectiveness among all its end-users; 3) The NGAs may formulate a Financial Catch-up Plan to monitor financial performance monitoring as well to accomplish high BUR; 4) The NGAs may conduct Suppliers’ conference or forum to formulate a Suppliers’ Directory for easier communication and access to the market ensuring competition among the available service and goods providers in the locality of Camarines Norte; 5) The NGAs may adopt the Intervention Program formulated by the Researcher so that the level of procurement and financial performance may be enhanced; and 6) For the future researchers, it is recommended to study the factors affecting the procurement performance of NGAs which are not covered in the study