PMO-Managed Projects

This section of the operations manual is currently being redrafted and is expected to undergo major revisions. We welcome your comments and suggestions particularly on this section.

 5.1 Scope

This chapter presents the rationale for the establishment of separate project management offices (PMOs) within PIDS. It suggests some criteria for determining if research management could be devolved from the RSD to specially created PMOs. It also discusses the specific responsibilities and authorities that can be delegated to the PMOs. It provides principles and guidelines for designing the PMOs' organizational set-up. It also presents proposed research management procedures relating to project development, monitoring, evaluation, etc. that have to be put in place to effectively manage the research and research-related activities of the PMOs. Finally, it defines the relationships between the PMOs and the central PIDS management staff and delineates the lines of authority and responsibility.

5.2 Rationale for the establishment of PMOs

In many instances, the PIDS is tasked with implementing large-scale research projects. These projects are large-scale in terms of the scope and number of research studies and research-related activities that are carried out under them; the amount of human, financial, and other material resources that are marshalled for their implementation; and the complexity of the technical, administrative, and financial arrangements that have to be established.

Traditionally, the management and administration of PIDS projects has been centralized. Some centralization is desired to ensure the enforcement of uniform technical quality standards for all research outputs; optimize consistency and coherence among the Institute's research activities and research program; and to attain economies of scale in management, administrative, and financial resources needed to implement projects.

The present personnel structure of the RSD and the duties and responsibilities assigned to it, could hardly allow the RSD to handle the management and implementation of all PIDS major research projects. Every major research project involves the conduct of several research studies which are sub-contracted and/or prepared in-house. This entails doing a lot of administrative work aside from the technical functions relating to project development, project monitoring, and evaluation that have to be undertaken. In these cases, it is necessary that a PMO be established to expedite efficiently both the technical and administrative responsibilities required in the project.

Any one of the following conditions below shall provide sufficient basis from establishing a specialized management office for a project:

• The project is large-scale in terms of scope and size. Operationally, this can be defined as having a total project cost exceeding P5,000,000.
• The project requires complex administrative, organizational, management, and financial arrangements for effective implementation. These arrangements may arise due to donor regulations pertaining to procurement, reporting, and financial management. It may also result from inherent project design considerations, e.g., the project combines research, research dissemination, and advocacy activities.

The request for establishing a PMO shall be initiated by the prospective proponent or lead researcher through a memorandum to the Director for Research Services. The request shall provide the justification for establishing a PMO and outline the administrative and technical responsibilities and authorities to be devolved from PIDS proper to the PMO. The request shall be endorsed after review and consultations by the Research Services Department to the PIDS Management Committee for final decision.

5.3 Project Management Offices in the Context of Overall PIDS Organizational Structure

Notwithstanding the establishment of PMOs, ultimate responsibility and accountability for research projects lie with the Philippine Institute for Development Studies. The setting up of PMOs does not relieve the Institute through its main operating departments of their respective responsibilities and accountabilities. Correspondingly, final authority and decisions regarding research and research-related activities in projects rest with PIDS.

Accordingly, all activities circumscribed within a project are PIDS activities. All projects are PIDS projects. There are no inherently "PMO projects" with a distinct legal character; there are only PMO-managed and -administered projects.

Through the establishment of PMOs, selected responsibilities and authorities are devolved from PIDS to the project management offices. These responsibilities and authorities are limited to those which are necessary for efficient and effective implementation of projects. Thus, the devolved responsibilities and authorities are internal in character. The PMOs are responsible only internally to the PIDS management for the project. The Institute remains responsible to external agencies for the entire project. Because of this, the PIDS retains final oversight functions even for responsibilities and authorities devolved to PMOs. This ensures that all project activities and outputs meet all applicable PIDS standards, rules, and procedures.

5.3 Duties and Responsibilities of the PMO

The PMO shall be involved in the conduct of studies and shall be responsible for the day-to- day management and operation of the Project it is concerned with. Specifically, it shall be responsible for the following:

a. Prepares the Project's Implementation Plan (inception report/operations manual) and upon its approval by the Project's Steering Committee (PSC) or Council, take charge of its implementation;

b. Designs and implements an effective computer-based system which will: (1) monitor the activities of the various projects and activities using progress reports as inputs; (2) monitor the financial status of projects and studies using check disbursements as inputs; (3) provide a means for immediate inquiries on information regarding a particular research project and project study; (4) provide a means of projecting financial activities for a particular period of time, i.e., how much would be needed for disbursement in the coming month or weeks for a research project or study, and the corresponding outputs expected from the project or study; and (5) generate various general and bottom-line user reports such as research project summaries, research reports, notices for activity schedules, and various user defined reports;

c. Staffs, equips and manages a Project Secretariat which will review and recommend approval of activities;

d. Facilitates the approval of research proposals. In this regard, it will solicit, receive, screen, evaluate and review research proposals for consideration in accordance with the PIDS evaluation criteria for approving/accepting research proposals. It will also expedite contracting procedures for the implementation of approved proposals;

e. Facilitates the review/evaluation of research outputs (progress reports and final reports) following the PIDS standards/criteria for qualifying reports as acceptable and similarly coordinates with the researchers and/or contractors the results of the reviews conducted for revision of the reports;

f. Prepares the terms-of reference for all contractors;

g. Coordinates the data gathering efforts of various researchers and/or teams. Specifically, it will be responsible for conducting an inventory of the Project's data needs, and facilitate the design, pre-test and conduct of surveys whenever necessary. It will also assist researchers to having access to institutional sources of secondary data. It will design, implement and maintain a data base system for the Project which will be accessible to its researchers as well as other agencies as may be permitted;

h. Undertakes the following coordinative function: (1) arrange meetings/consultations between the different researchers/research teams; (2) integrate the results of the research studies and prepare the final report of the Project;

i. Acts as the Secretariat during the conduct of seminars/workshops and the like relating to the Project. It will schedule, prepare the agenda and the necessary papers to be presented and discussed, record the proceedings of the workshop, and perform other tasks as may be deemed important for the Project;

j. Provides the necessary logistic and administrative support to researchers and contractors;

k. Prepares annual work and financial plans as well as quarterly and annual reports;

l. Selects and contracts local and foreign resources for project implementation and ensure that all contracting is done in accordance with the PIDS regulations;

m. Controls and monitors disbursement to local and foreign resources involved in the implementation;

n. Evaluates and monitors mechanism for project activities and ensure that findings and lessons learned are fed back into the strategic planning for the Project (via the PSC) on a timely basis;

5.4 Project Management Office Structure

The PMO shall be under the supervision and control of the Project Steering Committee that will be established prior to the development of the PMO. The PSC will provide the strategic direction for the project and oversee the implementation of its different activities. It will meet on a quarterly basis and will constitute the critical policy and decision-making body for the project. The PSC shall be composed of members from the donor agency, the PIDS, and other organizations (public or private) whose operation directly or indirectly relates to the established objectives of the PMO project.

The PMO, on the other hand, shall be composed of the Project Director, Assistant Project Director, Administrative Officer, Finance Officer, Executive Assistant, Research Associates and/or Research Assistants (whenever necessary), and a Secretary. The PMO may not necessarily require its personnel composition to come purely outside of PIDS unless dictated by the donor agency. Oftentimes, the Project Director is tapped from the PIDS personnel. The rest of the personnel may also come within PIDS, particularly those personnel belonging to PIDS projects which are about to be finished. Personnel shall be hired on a contractual basis depending on the needs of the project. The Project Director will be responsible in implementing the policies and programs approved by the PSC. He will also be responsible for the Project's day-to-day operations as well as the supervision of the project staff.

The PMO will be supported by the PIDS Administrative and Operations Division on matters concerning its administrative operation.

5.5 Roles and Responsibilities - Project Steering Committee

The PSC will be comprised of senior representatives of concerned government/private organizations. The Chairman of the Committee will be elected by the members of the Committee. The PSC will meet on a quarterly basis and will constitute the critical policy and decision making body for the Project. Specific responsibilities of the PSC will include.

a. Approve criteria and process for selecting project activities in terms of their relevance and appropriateness to the Project's purpose and programming framework;

b. Proactively guide the identification and planning of project activities through which goal and objectives of the Project can be achieved;

c. Approve the inception report and operations manual whenever necessary, including the guidelines and procedures for the operation, management, and administration of the Project, and any revisions to the process of selecting project activities;

d. Review the coordination activities of the PMO with various participating researchers/organizations;

e. Review performance of PMO in project execution;

f. Provide advice to the PMO on strategic issues related to the management and implementation of the Project;

g. Approve application for funding for each project activity;

h. Review as necessary, consolidated progress and financial reports submitted by the PMO;

i. Review and approve all project reports as well as annual work and financial plans; and

j. Approve the project evaluation framework and terms of reference for the evaluation. The evaluation criteria may or may not adopt PIDS proposed evaluation criteria as described in Section 2.3.6.

5.6 Project Implementation

5.6.1 Preparation and Review of Research Proposals.

The procedures may adopt or improve the PIDS proposed Proposal and Development Review which is presented in detail in Section 2.0.

5.6.1.1 Requests for Research Proposal Preparation

1. PMO constitutes/activates Evaluation and Awards Committee (EAC). The EAC shall be composed of the Project Director as Chairman, the President of PIDS, the Director for Research, the external evaluators, and other concerned agencies/organizations.

2. PMO prepares Letter of Invitation or Request for Research Proposal signed by the Project Director.

3. PMO issues Request for Research Proposal to list of accredited contractors.

4. Contractors get Request for Research Proposal, prepares technical and financial proposal including workplan and submit to PMO.

5. PMO receives and forwards Research Proposal to Evaluation and Awards Committee.

6. EAC evaluates proposals within thirty (30) days after closing date of receipt of proposal.

7. Upon approval, preparation of contract subsequently follows.

8. If disapproved, another contractor is identified.

5.6.1.2 Advertisement in Local Newspaper

1. Prepares and submits to Project Director requirements of project for publication.

2. Project Director reviews requirements.

3. Upon approval, informs PMO to advertise requirement of project two (2) times in two (2) weeks in at least two (2) local newspaper of general circulation. Pre-qualification of Contractors immediately follows.

4. If disapproved, informs PMO of necessary revision.

5. PMO makes necessary revisions and re-submit to Project Director for consideration.

5.6.1.3 Pre-qualification of Contractors

1. PMO issues pre-qualification statement/form to interested contractors.

2. Contractors obtain and accomplish pre-qualification forms (see Exhibit ) and submit the forms together with the research proposal to PMO.

3. PMO receives pre-qualification forms together with the requirements needed and forwards the same to EAC.

4. Same as Section A.6

5.6.1.4 Contract Preparation

1. PMO, simultaneous with Section A.6, prepares draft contract for review of contractor and the Director for Research of PIDS.

2. Contractor and the Director for Research review the contract and forwards comments, if any to PMO.

3. PMO receives contract and makes corrections as needed.

5.6.1.5 Contract Signing and Approval

1. PMO finalizes and prepares four (4) original contracts, forwards contract to contractor for signing thru letter signed by the Project Director.

2. Contractor signs all four (4) contracts and returns them to PMO.

3. Project Director signs all four (4) contracts with a representative signing as witness.

4. PMO returns one (1) copy to contractor, gives one copy each to finance, record section, and to RSD. Keeps one (1) copy for file.

5.7 Project Reporting and Monitoring

5.7.1 Outline of the Financial and Project Management System to be Adopted for Project Implementation

The following guidelines are meant to address the need to effectively relate, evaluate, and monitor all financial information in connection with the operation and performance of the sub-components of the project and the project as a whole. The reports to be required thus aim to aid the Project Steering Committee (PSC) in associating the levels of project disbursement with the attainment of project goals and objectives as of certain point, i.e., quarter-end,year-end, and end-of-project.

As such, the timeliness in the preparation and submission of these required reports should enable the PSC to detect probable signals on the need to do a re- evaluation and possible revision of the financial plan (budget) as certain assumptions change in the course of the implementation of the project.

5.7.1.1 Annual Reports

5.7.1.1.1 Annual Financial Plan (AFP)

The first Annual Financial Plan (see Exhibit ), will be prepared as an attachment to the Annual Work and Financial Plan (AWFP) within six months of the signing of the Memorandum of Agreement (MOA) and annually thereafter.

The AFP will basically provide the following information:

- preparation of funding program for the incoming year;

- estimates of required resources and inputs to carry out the plan;

- financial requirements for the donor agency, PIDS, based on monthly and quarterly cash flow.

5.7.1.2 Quarterly Performance and Financial Reports

5.7.1.2.1 Quarterly Request for Advance Report

- The Quarterly Request for Advance Report (QRAP), as shown in Exhibit , shall have for all basis, the AFO with the amount of the advance based on the quarterly work plans showing the monthly breakdown of funding requirements of approved activities. Requests for cash advance shall be submitted to the donor agency within 30 days prior to the start of the quarter for which the advance is being requested.

- Subsequent requests for cash advance shall also be on a quarterly basis. PIDS shall submit requests for advance to the donor agency together with work progress reports and planned activities for each study or activity for the succeeding quarter as shown in the quarterly work plan.

5.7.1.2.2 Quarterly Expenditure Liquidation Report

- The Quarterly Expenditure Liquidation Report (QELR), as shown in Exhibit , shall be treated as a separate report from the request for an advance. The PMO/PIDS may therefore request for a second advance prior to the liquidation of the first advance. However, the donor agency shall not provide a third advance without the submission of the liquidation of the first advance and so on.

- To liquidate advances, the QELR should be submitted together with a certified report on expenditures for the quarter being liquidated, a copy of the Disbursement Vouchers (as shown in Exhibit ), as well as the supporting documents as attachments, to the PSC within one month following the close of each quarter. Expenditures shall be reported based on the line items in the approved annual financial plan (AFP).

- All applicable information required on the boxes and spaces on the copies of the disbursement vouchers so forwarded as attachments should be appropriately filled-up. The corresponding budget line item or account title should be easily derived and summarized from this disbursement vouchers.

5.7.2 Sub-activity Monitoring Strategy

Projects/activities which shall be implemented by other agencies or sub- contracted shall be monitored through:

1. The requirement of well-defined outputs and specific deadlines through every critical phase of the project/activity;

2. The submission of periodic reports in each critical phase of the project/activity; the reporting form shall whenever possible, conform closely to the existing forms used by PIDS to ease analysis and integration;

3. A sub-project PMO may be set up which shall report directly to the Project PMO;

4. Approval of all foreign training shall be by the PSC upon recommendation by PMO;`and

5. The use of field trips/spot checks by the project PMO for verification as necessary.

5.7.3 PIDS Monitoring and Control of PMO Performance

For easy monitoring of all PIDS research projects, especially for those projects managed and implemented by the PMO, all request for payments on all reports submissions should be coursed through the Director for Research, for acceptance and approval for release of payments. The Director for Research should be furnished with copies of all the reports submissions including the summary of the reviews conducted for reference and record. All final reports shall be forwarded by the RSD to the RID for working papers/books preparation.

Every end of the month, the PMO shall be required to submit a status report on all its ongoing research projects for integration into the overall status report on all PIDS ongoing research projects for submission to the MANCOM.

At the end of the project, the PMO performance shall be evaluated in terms of its capability to manage and implement the project.

5.8 Research Dissemination

The PMO shall closely work with the RID in the arrangement and conduct of seminar workshops in connection with the dissemination of the results of the research studies being undertaken under the project and in soliciting feedbacks/comments as to the validity of the data/information contained in the studies and the usefulness/soundness of the policy recommendations provided therein. At the end of the project, the PMO shall provide the RID with copies of the final reports for publications into working papers/books for research dissemination.