THE government’s total savings in 2022 reached over P681 million in 2022 as a result of transparent procurement, the Department of Budget and Management (DBM) said on Tuesday.

In a statement, the DBM said the government generated around P681,198,056 in savings in 2022, the “highest” figure registered compared to PHP661.775 million reported in 2020 and P559.094 million posted in 2021.

“The savings are computed from the difference between the total market selling price and the PS (Procurement Service) – DBM’s selling price for each common-use supplies and equipment (CSE) item,” the DBM said.

“The total market selling price is based on the lowest price gathered in the conduct of price analysis or verification by PS-DBM prior to the conduct of procurement for each CSE item,” it added.

The DBM noted that for the past three years, the government has attained significant cost savings through bulk procurement and market price monitoring and validation.

PS-DBM executive director Dennis Santiago attributed high savings in 2022 to the government’s “competitive, transparent, and efficient” procurement system.

Santiago also gave the PS-DBM personnel credit for their hard work and sacrifice in ensuring competition, transparency and efficiency in the public procurement process.

“Under one PS-DBM, we look forward to achieving ‘procurement transformation,’ not only in processes, procedures and products that we procure, but the over-all transformation of PS-DBM relative to its structure, system and human resources. I want a solid and over-all transformation of PS-DBM,” Santiago said.

Santiago also thanked DBM Secretary Amenah Pangandaman for her full support and belief in the potential of PS-DBM.

He ensured that the PS-DBM would continue procurement reforms and elevate its level of service to “greater heights.”

Pangandaman expressed optimism that the PS-DBM’s reform initiatives would help the agency restore its good name.

“Continue to foster hard work, integrity and service to our people, and ensure that the Filipino people get the most of every peso entrusted to the government,” Pangandaman said.

The PS-DBM, established by virtue of Letter of Instructions No. 755 issued on Oct. 18, 1978, serves as an integrated procurement system for the national government and its instrumentalities.

The agency is mandated to serve as the central procurement arm for the common use of government supplies.

Its creation is consistent with the adoption of a policy of economic and efficient manner in purchasing government materials. Philippine News Agency