GREEN PUBLIC

PROCUREMENT

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 I Definition

II Basic Concepts and Benefit

The Philippine Green Public Procurement

III
(GPP) Roadmap

IV Use of Life Cycle Thinking

V Selecting Products for GPP

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without
the author’s approval is prohibited.
 Definition

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

Definition

Green Public Procurement (GPP) is a process whereby

public authorities seek to procure goods, services and

works with a reduced environmental impact throughout

Green
Procurement is
their life cycle when compared to goods, and services and Responsible
Procurement
works with the same primary function that would

otherwise be procured.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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“Green” means

Avoiding the use Prioritizing

of toxic substances alternative (greener)
materials Green
Procurement is
Responsible
Reducing energy and Recycling at the end Procurement
water consumption of life
during use

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
 Basic Concepts
and Benefits

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

Basic Concepts and Benefits

Who shall move first to “Green”?

Is it industry, private consumer or the government?

Green
Green
Procurement is
Procurement is
Responsible
Responsible
Procurement
Procurement

It is a question of demand and supply in a

market economy!

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Basic Concepts and Benefits

Why governments shall take the lead?

Green
Green
Procurement is
Using market forces Procurement is
Governments have Role model for Responsible
to stimulate greener businesses and Responsible
huge purchasing Procurement
power products and general consumers Procurement
services with
competitive prices

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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Basic Concepts and Benefits
Why we need a switch to ‘green’?
As defined by the Oslo Symposium in 1994, Sustainable
Consumption and Production (SCP) is about “the use of
services and related products, which respond to basic Green
Green
needs and bring a better quality of life while minimizing Procurement is
Procurement is
Responsible
the use of natural resources and toxic materials as well Responsible
Procurement
as the emissions of waste and pollutants over the life Procurement
cycle of the service or product so as not to jeopardize
the needs of further generations.”

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Basic Concepts and Benefits
What are the expected benefits of GPP?
Achieving financial
savings
Improving public
image and increase
Pursuing environmental legitimacy
Green
and health goals Green
Procurement is
Fostering the uptake of Procurement is
Responsible
green products and Responsible
Driving local innovation and Procurement
services
support the Procurement
local economy
Supporting green and
Increasing competitiveness sustainable growth
of local economy

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited.
 KNOWLEDGE
CHECK

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 The Philippine GPP
Roadmap:
Today and Beyond

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

The Intervention Logic of the Philippine GPP Roadmap

Green
Green
Procurement is
Procurement is
Responsible
Responsible
Procurement
Procurement

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited.
Overall Background

GPP is a good practice of public procurement.

Growing understanding and operationalization of

Sustainable Development since the Earth Summit in
1992. Green
Green
Procurement is
Governments are leading by example and use their Procurement is
Responsible
immense purchasing power to shape the patterns of Responsible
Procurement
growth, eventually achieving green growth. Procurement

Best practices show the individual nature of national GPP

programs and provide inspiration for the Philippine GPP.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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Brief History

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
The Philippine Approach

• A circumspect approach (issues and concerns, capacities,

best practices)

• A stepwise approach (gradually advancing)

Green
• Based on well-established public procurement processes Procurement is
• The best deal for the government (value for money) and Responsible
industry (getting a potent buyer for green products) Procurement
• Inspired by the logic that governments have to lead by
example in transforming the market

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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The Philippine Approach

The way to success

The best practice to develop a functional GPP program

Green
Stepwise implementation
Procurement is
Building on the existing public procurement Responsible
mechanisms Procurement
Easy-going tools instead of over-sophistication

Less could be more when it comes to green criteria;

focusing on core green specifications will pay off
ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY
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author’s approval is prohibited.
GPP in the Philippines

I. The legal and institutional situation II. Explicit entry points for GPP
- Existing legislation - Policy commitments to GPP
- Mechanisms and instruments - The avenue of technical
- Key stakeholders for GPP specifications

III. Building on and supporting existing policies IV. Issues and concerns
- Philippine Development Plan - Prudent spending
- International commitments and national - Costs versus value for money
legislation - Readiness of suppliers
- Capacity and awareness
- Verification of green supplies

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines
I. The legal and institutional situation
GPP will use existing legislation and rules
• Government Procurement Reform Act (Republic Act (RA)
9184, GPRA 2003) Green
• Implementing Rules and Regulations (IRR) Procurement is
Responsible
Key stakeholders and tools
Procurement

Department of Budget and Philippine Government

Management-Procurement Electronic Procurement System
Service (DBM-PS) (PhilGEPS)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines
Standard procedures remain unchanged

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines
II. Explicit entry points for GPP
The avenue of technical
Prior policy commitments
specifications in PBDs
to GPP
The PBDs allow the use of Green
• GPPB Resolution No. 15, ‘specifications’ that refer to the Procurement is
series of 2013 – Approval to physical description and
requirements of the items to be
Responsible
Support the Implementation
procured (regarding function, Procurement
of Sustainable and/or Green
performance, environmental
Public Procurement
interface and design) to
in the Government integrate green criteria (green
technical specifications)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines
III. Building on and supporting existing policies
Philippine Development Plan International commitments and national legislations
• The PDP 2017-2022 • Greening the industry roadmap; National Industry Cluster Program of DTI
aims to strengthen the • Ecological Solid Waste Management Act of 2000 (RA 9003)
• Toxic Substance and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969)
nation’s aspirations of
• An Act Mainstreaming Climate Change into Government Policy Formulations (RA 9729)
inclusive and • Philippine Green Jobs Act of 2016 (RA 10771)
sustainable • National Climate Change Action Plan 2011-2018
• DENR AO 2015: Euro 2 to Euro 4 (in accordance with Clean Air Act)
development through
• DOE AO 110: Procurement of Energy Consuming Equipment
national efforts; GPP is • DOE DC 2016-04-0005: Minimum Energy Performance Standards (MEPS)
one of the mechanisms. • The Philippines is committed to the new SDGs including SDG goal 12, target 12.7

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP in the Philippines
IV. Issues and Concerns

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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The Way Forward

5 Strategies
1 Policy commitment
Green
2 GPP for CSEs
Procurement is
Responsible
3 GPP for Non-CSEs Procurement
4 Communication & Awareness

5 Monitoring

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Commitment

GPP shall be the desirable norm of

public procurement
Green
A resolution shall adopt: Procurement is
• The first set of CSEs and the mechanisms Responsible
of the roadmap Procurement
• The first set of non-CSEs and the mechanisms
of the roadmap in this respect
• To establish and implement complementary measures
(capacity development, communication, monitoring)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP: Common-use Supplies and Equipment (CSEs)

GPP shall be the desirable norm of

ASSESSMENT MATRIX
public procurement
Market readiness
Environmental impact
Cost implications
Practicability
Support to government
Environmental objectives
Support to the local economy

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Gradual Advancement of GPP: CSEs

GPP shall be the desirable norm of

Short public procurement
Medium Long
Term Term Term Green
Procurement is
Responsible
Formulate green All CSEs equipped Procurement
Technical Select more CSEs, with green ‘Tech Specs’,
Specifications green ‘Tech Specs’. inclusion of social criteria
to prioritized CSEs towards SPP

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP: Non-Common-use Supplies and Equipment (Non-CSEs)

GPP shall be the desirable norm of

ASSESSMENT MATRIX
public procurement
Market readiness
Environmental impact
Cost implications
Practicability
Support to government
Environmental objectives
Support to the local economy

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Gradual Advancement of GPP: Non-CSEs

GPP shall be the desirable norm of

Short public procurement
Medium Long
Term Term Term Green
Procurement is
Responsible
Formulate green GPP will become More Non-CSEs equipped Procurement
Technical Specifications; mandatory for selected with green ‘Tech Specs’;
appoint champion Non-CSEs; more inclusion of social criteria,
stakeholders products are selected towards SPP.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited.
Communicating GPP

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Guidelines, Manuals and Training Tools

NEW!

GPP Technical Specifications

for Prioritized Product
Categories
(Annex to GPP Roadmap)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Monitoring of GPP Implementation

Compliance and progress Impact

� Market changes towards green with effects on jobs and

Ensuring the proper implementation
of rules income
and regulations and the � Entrepreneurs take up the green venture
effectiveness of GPP � Spill-over effect to private corporate procurement
through the Agency Procurement and household consumption
Compliance and Performance � Demand for green products lowers costs of green items
Indicator System (APCPI) � Reduced pressure on the environment (resources, emissions)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Stakeholders

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
GPP Horizon – Today and Beyond

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the
author’s approval is prohibited.
 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Use of Life Cycle
Thinking

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

The Life Cycle

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
The Life Cycle

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Life Cycle Assessment (LCA)
A Systems Approach to Environmental
Management and Sustainability

• A scientific tool for assessing the resource

use, environmental burdens, and human health
impacts connected with the complete life cycle
of products, processes, and activities

• A standardized procedure: ISO 14040:2006

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Life Cycle Costing (LCC)

The real costs of

a procured item
are more than
the initial
purchase

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Life Cycle Costing (LCC)

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Life Cycle Costing (LCC)

Initial purchasing costs

+ Operating costs
+ Maintenance/service costs
+ Disposal costs
LCC is a tool which
evaluates the costs of an
Note: LCC for GPP is not a whole life
asset throughout its life cycle cost assessment (WLCCA). It
cycle starting from its concerns the costs directly incurred on the
purchase to disposal side of the end users.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
 Selecting Products
for GPP

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

Life Cycle Costing (LCC)

A decision has to be made

At the end of the planning process stands a

decision Green
In addition: Procurement is
✔ Buy green or not? Responsible
Procurement
✔ Is it feasible?
✔ Does it make sense?

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Prioritizing Products for GPP

Which products? Based on which criteria?

The GPP Roadmap has identified and prioritized Green

a first batch of products Procurement is
Responsible
10 CSEs 10 Non-CSEs Procurement

… through an assessment based on distinct criteria

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Prioritizing Products for GPP

Main criteria* Optional criteria**

• Market readiness • Existing experiences Green
• Environmental impact
• Visibility to the public Procurement is
• Cost implications
• Additional benefits for users
Responsible
• Practicability Procurement
• Support to government’s • Driving innovation
environmental objectives
• …
• Support to the local economy
*Used for currently prioritized CSEs and **For future/optional
non-CSEs application

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Market Readiness

Is there a sufficient number of suppliers,

sufficient choice and sufficient product quality?
Green
Procurement is
A score is given between 1, if the market is not
Responsible
ready at all, for example because no suppliers
Procurement
exist, and 5, if the market is perfectly ready and
many suppliers, which offer a broad choice of
products, are available.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Environmental Impact

What is the direct environmental impact

through emissions and the individual
environmental pollution caused by each
product over its life cycle? Green
Procurement is
A score of 1 to 5 is given depending on a low or Responsible
very substantive positive environmental impact, if Procurement
conventional procurement is replaced by GPP.
Products, if procured green, which significantly
reduce pressure to the environment get a higher
score.
ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY
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author’s approval is prohibited.
Cost Implications

Are decreasing costs through lower operational

costs
for energy, water and disposal expected or
higher costs for example as a consequence of Green
higher product cost Procurement is
and higher product quality? Responsible
Procurement
A score of 1 to 5 is given depending on substantial
cost increases (low score) or notable savings (high
score).

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Practicability

Are decreasing costs through lower operational

costs
for energy, water and disposal expected or
higher costs for example as a consequence of Green
higher product cost Procurement is
and higher product quality? Responsible
Procurement
A score of 1 to 5 is given depending on substantial
cost increases (low score) or notable savings (high
score).

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Support to Government Objectives

Is there a weak or strong connotation with

existing government environmental objectives Green
(other than GPP)? Procurement is
Responsible
A score of 1 to 5 is given depending on a low or Procurement
high coherence
with other government policies.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Support to the Local Economy

Are there positive, neutral or critically negative

effects for the local economy to be expected?
Green
A score of 1 to 5 is given depending on the Procurement is
expected effects; a score of 5 would mean that Responsible
very positive effects are achievable. A low score Procurement
would apply, if procuring green is jeopardizing local
economy; a neutral score means that no difference
occurs.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Existing Experiences (Optional, Future)

Are there positive or critically negative

experiences recorded with GPP of the
concerned products? Green
Procurement is
A score of 1 to 5 is given depending on negative Responsible
(low score) or positive (high score) experiences. Procurement

Note: negative experiences could justify to take a product off

again from the priority list.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Visibility to the Public (Optional)

Would GPP of the concerned products have a

signal effect to the wider public?
Green
A score of 1 to 5 is given depending on the Procurement is
expected low or high signal effect. Responsible
Procurement

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Additional Benefits for Users (Optional)

Would the concerned ‘greener’ products

provide additional benefits for end-users, for
example through an increased service Green
function? Procurement is
Responsible
A score of 1 to 5 is given depending on the Procurement
anticipated better effects.

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
Driving Innovation (Optional)

Would the concerned ‘greener’ products foster

innovation efforts within local economy? Green
Procurement is
A score of 1 to 5 is given depending on the Responsible
anticipated low or high innovation effects. Procurement

ADVANCING PUBLIC PROCUREMENT TOWARDS GREEN AND SUSTAINABILITY

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author’s approval is prohibited.
 KNOWLEDGE
CHECK

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
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