Community-Based Procurement Manual (Nov2011)

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PREFACE

This edition of the KALAHI-CIDSS Community Based Procurement Manual is

designed to be a user-friendly and comprehensive guide. Major revisionsaim to clarify some of the provisions and provide complete guidance toevery Community procurement activity.

The highlight of revisions include the following: definition of terms,elaboration on procedural steps, answers to frequently asked questions(FAQs) and clarification to guidelines.

This manual is intended for the Barangay Sub-project ManagementCommittee (BSPMC) particularly the Procurement Team (PT) and the Bidsand Awards Committee (BAC) as guide in their procurement activities. Thismanual will also be used by the Area/Municipal Coordinating Teams(A/MCTs) and Regional Project Management Teams (RPMTs) in providingTechnical Assistance on Community Procurement to the BSPMC; likewise,external monitors in conducting fiduciary reviews.


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TABLE OF CONTENTS

DEFINITION OF TERMS 6-12ABBREVIATIONS; ACRONYMS 12-13

CHAPTER 1: INTRODUCTION 14Introduction 15Scope, Coverage, and Application 15-16Principles in Community-Based Procurement 16-17

CHAPTER 2: Possible Types of Community projects Requiring Procurement 182.1 Construction, repair and improvement 192.2 Common Service Facilities 192.3 Others 19

CHAPTER 3: PROCUREMENT POLICIES 20

CHAPTER 4: COMMUNITY CAPABILITY BUILDING ON PROCUREMENT 214.1 Orientation, Organization & Workshop 224.2 Skills Training & Preliminary Procurement 224.3 Coaching Jobs, Practicum 224.4 Community Procurement Technical Assistance 224.5 Procurement Monitoring of Red Flags 22

CHAPTER 5: PROCUREMENT ORGANIZATION AND FUNCTIONS 23


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LIST OF ANNEXES

INSTRUCTIONS TO BIDDERS 92-96CONDITIONS OF CONTRACT 96-102FORM OF BID 103FORM OF CONTRACT AGREEMENT 104-106BANK GUARANTEE FOR ADVANCE PAYMENT 107FORM OF BID SECURITY (BANK GUARANTEE) 108EVALUATION FORM PROCUREMENT OF WORKS 109RESOLUTION TO AWARD 110NOTICE OF AWARD 111

NOTICE TO COMMENCE 112PERFORMANCE SECURITY (BANK GUARANTEE) 113BIDDING DATA 114-115CANVASS FORM FOR GOODS 116ABSTRACT OF QUOTATION/CANVASS 117PURCHASE ORDER 118INVITATION TO QUOTE-FOR WORKS UNDER LOCAL SHOPPING 119-120ABSTRACT OF QUOTATION FOR WORKS 121INVITATION FOR DIRECT CONTRACTING FOR LABOR 122-123DIRECT CONTRACT AGREEMENT FOR LABOR 124-125INVITATION TO BID-FOR WORKS UNDER LOCAL BIDDING 126-127INVITATION TO BID-FOR GOODS 128-129ABSTRACT OF CANVASS FOR LOCAL SHOPPING 130EMPLOYMENT RECORD SHEET 131SUPPLEMENTAL AGREEMENTS (LS Goods for fuel only) 132CONTRACT AGRREMENT (LS for Works Fabrication Works) 133CANVASS FORM FOR LEASE OF EQUIPMENT (Goods) 134-135

PURCHASE ORDER (For equipment services) 136


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1-C Local Shopping of Works 196-1971-D Local Bidding of Goods 198

1-E Local Bidding of Works 1991-F Direct Contracting of Goods 2001-G Direct Shopping of Goods 201

CHAPTER 11: GUIDELINES AND CLARIFICATIONS 202

GUIDELINES ON THE USE OF DIRECT CONTRACTING OF LABOR 203-204

CLARIFICATION ON THE USE OF SPECIAL POWER OF ATTORNEY

(SPA) and SUB-CONTRACTING IN KALAHI-CIDSS: KKB PROJECT 205

REQUIREMENT FOR PHILIPPINE STANDARDS (PS) QUALITYAND/OR SAFETY CERTIFICATION MARK OF CONSTRUCTIONMATERIALS USED FOR COMMUNITY PROJECTS 206

CLARIFICATION ON THE METHOD OF PROCUREMENT TO BE USEDFOR RENTAL AND PROCUREMENT OF HAND TOOLS FOR COMMUNITYPROJECTS 207

CLARIFICATION AND ENHANCEMENT ON THE PROCUREMENT METHODFOR RENTAL OF EQUIPMENT USED IN COMMUNITY PROJECTS 208-209

GUIDELINES ON CONTRACT TERMINATION 210-216

GUIDELINES IN SUSPENSION / BLACKLISTING / DELISTING OF

CONTRACTORS MANUFACTURERS SUPPLIERS AND DISTRIBUTORS 217 225


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DEFINITION OF TERMS

Abstract of Bids/Record of Bid Opening The corresponding document prepared by theBAC after all bids have been received, opened, examined, evaluated and ranked.

Advance payment Refers to any payment made prior to the delivery and acceptance ofGoods, Works, or Consulting Services.

BAC The Bids and Awards Committee.

Bid (Bid proposal) is a signed offer coming from a supplier/contractor interested toprovide goods or undertake infrastructure work for the community.

Bid Evaluation The process of determining the Bidder with the Lowest Calculated andResponsive Bid/Quotation (LCRB/Q) or the Highest Rated Bid (HRB) in case of consultancyservices.

Bid Opening Date The date specified in the Invitation to Bid (ITB) for the opening ofbids.

Bid Security- is required to ensure that the successful bidder shall, within five calendardays from receipt of the Notice of Award, sign the contract with the BSPMC. It couldbe in the form of cash, check, bank draft, letter of credit or bank guarantee thatserves as a guarantee that the successful bidder shall not default on his offer, andshall enter into contract with the BSPMC and furnish the performance security.

The bid security shall be returned to the bidders only after the successfulbidd h i d th C t t d t d th f it t


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Calculated bid price The price of a bid, after taking into account minor arithmeticalcorrections to consider computational errors, omissions and discounts, if allowed.

Collusion An agreement between two or more persons, to commit acts to accomplish afraudulent or deceitful purpose.

Competitiveness A principle in KC procurement that allows broad participation by eligibleand qualified suppliers, contractors, consultants to put forward offers for a communityproject.

Competitive Bidding (Public Bidding) A method of procurement which is open to

participation by any interested party and which consists of the following processes:advertisement, pre-bid conference, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract.

Communication costs mail, internet rental, and fax costs, plus cost of advertising,meetings, internet/web posting, and other costs incurred for the dissemination ofinformation about the bidding.

Conference Notice A formal written communication sent to the participants of the

conference (such as the Pre-procurement, Pre-bid and Post-Award Conference) informingthem when and where the conference will be held.

Conflict of Interest a situation in which a public official's decisions are influenced by theofficial's personal interests.

Consulting Services refer to services provided by external technical service providers1 orprofessional expertise that are beyond the capacity of the BSPMC or Local Government Unit

(LGU) t ff t d t k h b t t li it d t f ibilit t di d i t ti


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Contractor One who undertakes to perform a work or service, or supply goods for apublic or private entity.

Contract Termination Ending of a contract prior to its completion.

Corrupt practice the offering, giving, receiving, or soliciting of any thing of value toinfluence the action of a public official in the procurement process or in contract execution.Compare fraudulent practice.

CostRecovery Component Direct and indirect costs accounted for in determining theprice of Bidding Documents to be sold to interested suppliers/contractors.

Defects Liability Period - refers to the period from the date of issuance of Certificate ofCompletion of the works as certified by the BSPMC Chairman up to the date withinwhich, the contractor shall still be liable for defects, shrinkage or other faults asdetermined by BSPMC. The contractor shall execute all such work needed to amend,reconstruct, or remedy at his own cost.

Development Cost Costs incurred in developing the original content of the documents,designs, plans and specifications. The design cost may be excluded if the same is to be

included in the capitalized cost of the project which is to be recovered from the usage of thecompleted project facility.

Direct Costs - Costs directly incurred such as development, reproduction, andcommunication costs allocated to the bidding activity.

Disclosure The act of disclosing, uncovering, or revealing.

Di lifi ti Th t f b i bidd f f th ti i ti i th t


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Goods These include supplies, materials and purchase of equipment, trucking and

hauling.

Examples: construction materials, seedlings/seeds (for prevention of erosion),hand tools and including office supplies for use by the BSPMC in itsoperations.

Incidental Services services supplementary to the supply of the Goods, such astransportation and insurance; installation, provision of technical assistance, training, andother such obligations of the Supplier covered under the contract or purchase order.

Indirect Costs - Costs indirectly incurred such as overhead, supervision, andadministrative costs allocated to the bidding activity. Compare Direct Costs.

Ineligible Bidder A contractor, manufacturer, supplier, distributor or consultant who failsto meet any or all of the eligibility requirements.

Infrastructure Projects (Civil Works) Include the construction, improvement,rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways,

airports, seaports, communication facilities, civil works components of informationtechnology projects, irrigation, flood control and drainage, water supply, sanitation,sewerage and solid waste management systems, shore protection, energy/power andelectrification facilities, national buildings, school buildings, hospital buildings, and otherrelated construction projects of the government.

Inspection Examination and/or testing of merchandise to determine whether it has beenreceived in the proper quantity and condition and to verify that it conforms to the applicablespecifications.


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Proposed timeframe of implementation does not conform to the requiredperiod

Bid contains provision to exempt the bidder from some critical provisions ofthe contract.

Motion for Reconsideration In procurement, it is an application made to the BAC forthe purpose of obtaining a rule or order setting aside a previous decision.

Negotiated Procurement An alternative method of procurement of goods, infrastructureprojects and consulting services, whereby the BSPMC directly negotiates a contract with atechnically, legally and financially capable supplier, contractor or consultant.

Notice of Award The document issued by the BSPMC to the bidder to whom the contractis awarded.

Notice of Post-qualification The document issued by the BAC to the bidder with LCB orHRB whose bid is found responsive subjected for post-qualification evaluation.

Notice to Proceed The document issued by the BSPMC to the winning bidder to proceedwith the implementation of the contract.

Observer One who is invited to attend and observe all stages of the procurement,especially: the pre-bid conference; opening of bids; bid evaluation; post-qualification;contract award; and special meetings of the BAC.

Patent Defect A defect that is apparent to the buyer on normal observation. An apparentor obvious defect.

Performance Security A security posted by the winning bidder to guarantee the faithful


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Procurement Package is a group of similar goods that can be purchased from onesupplier or work items that can be performed or implemented by a single contractor.

Protest A formal declaration made by a person interested or concerned in some act to bedone, or already performed, whereby he expresses his dissent or disapproval, or affirms theact against his will. The object of such declaration is usually to save some right which wouldbe lost to him if his implied anent could be made nil, or to exonerate himself from someresponsibility which would attach to him unless he express negatively his assent. (BlacksLaw Dictionary, 5th Ed.)

Reproduction cost labor, supplies and equipment rental costs incurred in thereproduction of the documents e.g. photocopying, blue printing, etc

Request for Clarification A written request submitted by the bidder to the BAC, askingthe latter to clarify a particular provision of the Bidding Documents.

Request for Proposal Bidding document for Consulting Services. Also called Request forQuotation.

Responsive bid is a solicited bid is determined to be in substantial conformance with theconditions, completion or delivery requirements, and specifications detailed in the

invitation-to-bid (ITB), request for proposals (RFP), request for quotations (RFQ), or requestfor tenders.

Retention Money - refers to the amount retained from progress payment to coveruncorrected discovered defects and third party liabilities. This is equivalent to 10%of all progress payments. Upon issuance of Certificate of Completion by the BSPMCthrough the recommendation of the Project Supervisor, 100% of the retentionmoney is returned to the contractor. It is understood that the Contractor is stillliable to BSPMC under Defects Liability Period provision of the contract.
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Technical Bid One of two components comprising a bid, the other being Financial Bid.

Tender See Bid.

Warranty An undertaking by the supplier, manufacturer or distributor to guarantee thatit will correct any manufacturing defects of the goods procured by the BSPMC.

ACRONYMS; ABBREVIATIONS

AC Area Coordinator

ACT Area Coordinating TeamAIT Audit and Inventory TeamBA Barangay AssemblyBAC Bid and Award CommitteeBDC Barangay Development CouncilBSPMC Barangay Community Project CommitteeCC Conditions of ContractCD Calendar DaysDAC Deputy Area CoordinatorDSWD Department of Social Welfare and DevelopmentCERS Community Employment Record SheetCF Community FacilitatorsCFA Community Force AccountCSO Civil Society OrganizationDA Department of AgricultureDAC Deputy Area CoordinatorDC Direct Contracting

f d l


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TWG Technical Working GroupRIE Regional Infrastructure Engineer

RPM Regional Project ManagerRPMO Regional Project Management OfficeRTA Resolution to AwardWB World BankWD Working Days


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CHAPTER 1 |

INTRODUCTIONScope, Coverage, and ApplicationPrinciples in Community-Based Procurement


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1.Introduction

Procurement

is one of the most critical activities incommunity project implementation. It refers to thepurchase of all the goods, supplies, and materialsneeded by the community project. It also refers tothe contracting of the entire or a portion of the worksin an infrastructure community project.

It is the most sensitive because it involvesdisbursement of funds.

Since the Kalahi-CIDSS Project (KC Project) aims toempower communities by giving them control overthe resources and implementation of communityprojectss, the communities through the BarangayCommunity Project Management Committee (BSPMC)

is responsible for procurement. They have theauthority to make decisions but they are alsoaccountable for ensuring the quality of the goods andservices are based on the technical specifications.

They also ensure that the award is made using the criterion of Lowest Calculated andResponsive Bid/Quotation. At the same time, they have to make sure that transparencyis observed and fair competition among qualified contractors and suppliers areundertaken.


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2.3. Application

The procurement procedures provided in this manual shall apply to the following:

1. Goods - These include supplies, materials, and purchase of equipment,lease of equipment2

3.Consulting Services refer to services provided by external technicalservice providers

, trucking and hauling.

Examples: construction materials, seedlings/seeds (for prevention oferosion), hand tools, and including office supplies for use by theBSPMC in its operations.

2.Works refer to civil/infrastructure and all types of physical workssuch as construction, improvement, upgrading, roads and bridges,irrigation, flood control and drainage, water supply, electrificationfacilities, buildings, fabrication of equipment and structural parts, NaturalResources Management (NRM) activities, solid waste management systemand physical works that require labor.

3

3. Principles in Community-Based Procurement

or professional expertise that are outside the capacity

of the BSPMC or Local Government Unit (LGU) staff to undertake such asbut not limited to feasibility studies; design; construction supervision;services for capability building types of community projects; and, specialstudies.


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CHAPTER 2 |


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The following are some examples of community projects which would involveprocurement.

2.1 Construction, repair and improvement / upgrading ofsmall scale infrastructure

1. Construction/Improvement/Upgrading of

Barangay roads and bridges2. Construction of Multi-purpose buildings3. Post harvest facilities4. Small-scale communal irrigation projects5. Classrooms for basic education

(Elementary and HighSchool)

6. Sanitation facilities (toilets)7. Barangay Health Station

8. Day care centers9. Flood control facilities10.Domestic water supply systems

a. Level I Water Systemb. Level II Water System


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CHAPTER 3 |PROCUREMENT POLICIES

3.1 Procurement for the community project shall be the responsibility of the communitythrough the Barangay Community Project Management Committee (BSPMC). AProcurement Team composed of at least three community volunteers elected by thebarangay assembly shall assist the BSPMC.

3.2 Transparency should be practiced in all stages of the procurement process. Fromthe public announcement of invitation to quote or to bid, awarding of contracts,contract implementation to payment to suppliers, contractors and local workers, theBSPMC should ensure that transparency is observed. This shall be achieved through

conduct of barangay assemblies and posting of notices and reports in the Kalahi-CIDSS: KKB billboards or bulletin boards within the barangay.

3.3 The BSPMC shall use the Lowest Calculated and Responsive Bid/Quotation as thecriterion for selection of suppliers and contractors. This criterion shall be publiclyannounced to the community and to all interested parties.

3.4 The Project prescribes the procurement methods and procedures to be used. Theseare contained in this revised manual and should be followed strictly by participating


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CHAPTER 4 |COMMUNITY CAPABILITY


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4.1 Orientation, Organization and Workshop

Prior to the Municipal Inter-Barangay Forum (MIBF), orientation, organization andworkshop on procurement are given to community volunteers, to enable them topackage and plan community procurement. The expected output of the workshop isthe Planned Community Procurement Package (PCPP).

4.2 Skills Training and Preliminary Procurement

In line with the readiness filter, preliminary procurement will be undertaken.

Skills training on procurement will be given to the volunteers with the Deputy AreaCoordinator (DAC) as the resource person.

4.3 Job Coaching and Practicum

In the implementation, the Deputy Area Coordinator (DAC) will conduct job coachingon the procurement. Practicum is required for the community volunteers.Popularization of Community Procurement Primers using local dialects is advised atthis stage.


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CHAPTER 5 |PROCUREMENT ORGANIZATIONAND FUNCTIONS OF THE


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This section elaborates on the formation of a Procurement Team within the BSPMC.

5.1 Procurement Team

BARANGAY SUBBARANGAY SUB--PROJECT ORGANIZATIONPROJECT ORGANIZATION

STRUCTURESTRUCTURE

B arangay Asse mbly

Ba rangay De velopment C ouncil

Brgy.

Representation

T eam (BRT )

Proj.

P reparationTeam (PPT)

B arangay S ub-

P roject Mg mt.C om. (B S PMC )

Audit &

Inventory

Team

(AIT)

Bids and

Awards

C omm ittee

(BAC)

S ec retary

Brgy. Treasurer

Bookkeeper

Procurement

Team (PT )

Project

ImplementationTeam (P IT)

Monitoring &

Inspection Team(MIT)

Op eration &

Maintenance

C ommittee(O & M)


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To be effective in their work, the Barangay Community Project ManagementCommittee Members and the Procurement Team members should undergo the

following:

1. Comprehensive Orientation Workshop on the Kalahi-CIDSS2. Procurement Training which covers the procurement policies, alternative

procurement methods and procedures, monitoring and reporting.3. Workshop of the preparation of Planned Community Procurement Packaging

(PCPP) should be conducted before Community Project Implementation.

The Regional Project Management Team shall provide technical assistance andmonitor the conduct of these activities.

5.2 Bids and Awards Committee (BAC)

Each BSPMC shall establish a single BAC for its procurement. The BSPMC may usethe existing BAC (previously created during Cycle 1 and Cycle 2) or create a new

BAC (for Cycle 2 and Cycle 3) with the following composition:1. Barangay Treasurer2. Chairperson of the Community Project Preparation Committee3. One member to be elected by BSPMC Executive Committee9

. Elected barangayofficials are disqualified. - Legal Reference: RA 7160, Section 109, Item Number 3, states that ... TheBarangay Officials shall Monitor and evaluate the implementation of national or local programs and projects.

The BAC members shall elect theBAC chairperson. The BSPMC


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2. Municipal Engineer/Municipal Agricultural Officer/CENRO/MENRO (depends on thetype of contract)

3. Supervising Community Project Engineer/Leadman/Foreman (if municipal

engineer is not available)4. Roving Bookkeeper5. Volunteer professionals in the community (if any)

5.3 Functions of the BAC

The BAC shall have the following functions:

1. Advertises and /or posts the invitation to bid2. Conducts pre-procurement and pre-bid conferences3. Determines eligibility of prospective bidders4. Receives bids5. Conducts the evaluation of bids with assistance of the TWG

6. Undertakes the post-qualification proceedings, including forwarding to the ACTTWG the contractors/suppliers for eligibility verification10

7. Recommends the award of contract to BSPMC Chairperson. When BSPMCChairperson disapproves the recommendation, such disapproval shall be basedon valid, reasonable and justifiable grounds to be expressed in writing, copyfurnished the BAC.

proceedings whereapplicable (For MCC-funded project/s only).

8. Performs such other related functions as may be necessary, including thecreation of Technical Working Group from a pool of technical, financial and/orlegal experts to assist in the procurement process


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CHAPTER 6 |


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6.1 Procurement PlanningProcurement Planning starts after the Community Project Preparation Committee hascompleted the detailed project proposal and budget, complete with technicalspecifications, drawings and bill of materials (for infra community projects). TheBSPMC shall prepare a procurement package called Planned CommunityProcurement Package (PCPP).

Procurement package

A procurement action plan (PAP) shall also be prepared indicating the timeline tocomplete the activity, responsible volunteers and project staff, venue of meeting andplace/s to conduct procurement, packages to be procured, and list of potentialservice providers

is a group of similar goods, works or services that can be

purchased from one supplier or work items that can be performed or implementedby a single contractor or a an activity that can be performed by a consultant.

11.

Procurement planning ensures that the overall goal of a particular community

project will be achieved effectively and efficiently. Through procurement plan, theBSPMC is able to effectively manage and track procurement all the way to contractimplementation. The procurement will allow the BSPMC to be cost efficient in itsprocurement.

Proper planning ensures that only goods, infrastructure projects, and consultingservices which have been included in the approved PCPP.

Procurement planning should be done within the approved estimated budget


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Example: Prepare a procurement package of the materials needed for thecommunity project with the following materials:

Particulars Quantity Unit

Selected Filling Materials 50 Cu.M.

Aggregate Base Coarse 40 Cu.M.

Sand 30 Cu.M.

Boulders 20 Cu.M.

Portland Cement 100 Bags

16 mm diameter RSB x 6M 110 Pieces

10 mm diameter RSB x 6M 150 Pieces

2"x3"x10' Coco Lumber 500 Bd. Ft.

1/4" thick Ordinary Plywood 12 Pieces

3 inches CWN 15 Kilos

Possible Packaging:

Package 1:

Selected Filling Materials 50 Cu.M.


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Example:

Prepare a package for a road community project with common work itemssuch as items 100 (Clearing and Grubbing), 105 (Sub-grade Preparation),Item 200 (Aggregate Sub-Base Coarse), Item 201 (Aggregate BaseCoarse), Item 311 (Portland Cement Concrete Pavement), Item 500(Reinforced Concrete Pipe Culvert), Item 505 (Grouted Riprap).

Option 1: Package all the items as one since all can be undertaken byone contractor.

Package 1:

Option 2:

PACKAGE 1: Item 105 Sub-grade Preparation

Item 105 Sub-grade Preparation

Item 200 Aggregate Sub-Base

Item 201 Aggregate Base Coarse

Item 311 300 Linear Meter Item 311 (PCCP)

Item 500 RCPC (0.61M diameter)

Item 505 Grouted Riprap


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The project does not allow splitting of goods and items of works. However, forselected goods, which are in extreme cases, considering the peculiarity of the

areas covered by the project, appropriate packing must be done.

Below are the definition and sample cases for clearer understanding:

Splitting is the act of dividing or breaking up of contracts into smallerquantities and amounts, or dividing contract implementation into sub-contracts;but it can be undertaken/procured as one contract to circumvent or subvert theprocurement method.

Case 1: If the goods to be acquired can be procured in the Municipality and themethod requires local bidding since it is within the threshold of biddingbut the contract package were divided into several packages to evade the

No-Objection-Letter (NOL) requirement from the National ProjectManagement Office (NPMO) or the funding donor (World Bank, MCA-Philippines, others) then there is Splitting of Package/Contracts.

Example:

Package 1 : 300 Linear Meter Item 311 (PCCP)

Estimated Budget for the Package : PhP. 941,219.78Contract Amount = PhP. 940,219.78

Package 2:Item 105 Sub-grade PreparationItem 200 Aggregate Sub-Base


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involved in the preparation must ensure proper packaging to avoid suchsanctions.

1. Conduct resource assessment to find out which of the items are available withinthe barangay or within the municipality. They can visit the towns commercialcenter and check for possible suppliers. If not available within the municipality,they inquire for other possible sources in the areas near the municipality or anyarea within the province. They can also refer to the ACT and RPMT inventory ofresource institutions, TA providers and suppliers. The Officer may already have alist of possible suppliers and the prevailing prices.

2. Review the Planned Community Procurement Packaging including the CommunityEmployment Record in consultation with the Project Preparation Team. TheDepartment of Social Welfare and Development (DSWD) will ensure that Deputy

Area Coordinator (DAC) assesses the overall feasibility of municipal and othercounterpart contributions during the detailed community project preparation.Community Monitoring Teams will ensure a record is kept of municipal inputs(cash, equipment and services) during the community project implementation toverify actual delivery against commitment. They will present this to thecommunity during the fifth barangay assembly. The Planned Community

Procurement Packaging will contain the following information:

A. For Community Projects to be Executed Under Community ForceAccount (CFA) Mode

Name of Community Project and Total Estimated Cost Community Project Duration LCC: In Cash, In kind. Package Number


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- Is the document that provides the detailed description of thedeliverables of the Supplier, Contractor or Consultant.

- Describes the physical characteristics of the material or product

being purchased, such as dimensions, grades of materials, physicalproperties, color, finish, and any other data that defines anacceptable product; may be supplemented by drawings or samples.

- Definition from the Philippine Institute of Supply Management(PISM)

2. Functional Specifications- defines the job to

be done rather thanthe method by

which it is to beaccomplished; donot limit thesupplier/contractorto providing specificsolution, thusenabling thesupplier/contractorto create the bestpossible solution;used to solicitsuppliers/contractors proposals for further evaluation by the BSPMC when a specificsolution is not known. (Definition from the Philippine Institute of SupplyManagement-PISM)

Examples: Works: Equipment that has capacity to excavate 360cubic meters per day - the contractor will provide either Backhoe


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3. the procurement documents should state that equipment, material orworkmanship meeting other standards, which promise at least substantialequivalent, should also be accepted.

The Use of Brand Name

- Use of Brand Name/s is not allowed as it limits competition and thus, increaseslikelihood of higher prices.

- May or may not improve the chances of receiving better quality; nevertheless,they typically cost more as a result of higher advertising cost to create the brandname.

6.2 Presentation to the Barangay Assembly

The Procurement Team Head or the BSPMC Chairperson presents the PlannedCommunity Procurement Packaging to the community during the fifth BA. This is

part of the presentation of the detailed community project proposal prior to itssubmission to the MIAC for Technical Review. This is also the same venue where thecommunity members finalize their decision on local counterpart contribution. Itwould be very helpful if representatives of the Municipal LGU, such as the MunicipalEngineer and Municipal Treasurer and other LGU technical staff who can providetechnical assistance are invited to this presentation.

The Presentation targets to achieve the following:


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submission to the MIBF. The Area Coordinating Team will retain a photocopy ofthe above documents after final approval of community projects by the MIBF.The final plan will be used during the implementation once the proposal is

approved by the MIBF.

3. The Barangay Treasurer prepares projected cash requirements using the PlannedCommunity Procurement Packaging as guide. This is important to DSWD so it canhave an accurate forecast of the funds flow.

4. The A/MCT-DAC can now prepare a consolidated monthly a disbursementschedule for all Community Projects for the municipality. This will form part oftheir disbursement target.

6.4 Implementation of the Planned Community

Procurement Packaging

1. While waiting for the grant funds, the Procurement Team should already start with

the preparatory procurement activities based on the approved plan and incoordination with the Community Project Implementation Team. It is clarified thatthe term start would mean approval of the PCPP by the RPMO thru the RCIS.

2. The Area Coordinating Team shall provide the BSPMC and other barangayvolunteers a skills enhancement training on Community Finance, CommunityProcurement and Basic Community Infrastructure.

GUIDES IN FILLING UP THE PLANNED COMMUNITY PROCUREMENT PACKAGE


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counterpart contribution (LCC) should also be a major consideration in preparing thePCPP.

2. Since most of KC projects are expected to be completed within 3-6 months, realisticprojections have to be kept in mind in preparing the procurement packages.Weighted percentage of possible work items to be completed per month has to bereflected at the Gantt chart to guide on the required physical accomplishmentsneeded for the requests of succeeding tranches.

3. Once it was decided that the works items listed on the initial months can trigger forthe requests of next tranches, start preparing the procurement packages.

For Goods: As a general rule, group similar materials that can be purchased frompossible suppliers in the locality. (Make use of the inventory of suppliers andconstruction materials sold).

For Works: As a general rule, group the works that can be performed orimplemented by a single contractor and group items of works that can beundertaken by community force account.

Based on the foregoing, the best way is to determine the items that can beundertaken by community force account (CFA) and have it packaged as separatepackage. If the community has no capacity to undertake any of the items of worksas the works requires mechanized equipment and specialized skills, all the itemsmust be packaged into one and undertake it by contract.

4. Once you have already identified the type of materials needed per package, reviewthe implementation schedule/Bar Chart, manpower capability output and determinethe required quantities of construction materials. Provide the unit cost per item


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7. Once the packages are determined, sum-up all the costs of each package todetermine the amount and percent of tranches to be requested. The normal trancheis 50%-40%-10% of the total KC Grant for the community project. Flexible tranches

as a result of appropriate packaging are allowed by the Project; 60-30-10; 70-20-10; or 80-10-10 for community project that will require big initial investment.

8. Schedules of local counterpart delivery must also be considered. If the community,barangay and municipal LCC can be delivered on the first, second tranches, it mustbe clearly indicated on the respective column and form (Cash and in-kind LCC).

9. Group the packages subject for shopping and bidding.

10.Based on the implementation schedule, determine the activities and correspondingpackage/s that will be needed to immediately start and will provide significantaccomplishment (will result to more than 30% which is the minimum requirementfor the second tranche) that the community or the contractor can undertake in thegiven timeline.

1 1 . Check the total amount of the package/s for the first tranche (with consideration tothe implementation schedule/Gantt chart). Th e t o t a l am o u n t o f p a ck a g e / s

g r o u p e d p a c k a g e s w i l l d i ct a t e t h e a m o u n t o f t h e f i r s t t r a n c h e .

If the amount needed for the first tranche exceeded the regular tranching which is50%-40%-10%, analyze the PCPP and draft a justification based on the PCPP whenrequesting for open tranche.

12.If the total amount of packages needed for the first tranche is below the regular 50-40-10 tranching, the regular tranching will be applied.

Example: COMMUNITY PROJECT : HEALTH STATION


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38 Community-Based Procurement Manual

B A R C H A R T S - C U R V E

ITEMNO.

DESCRIPTION QUANTITY UNIT

AMOUNT WEIGHT MONTH 1 MONTH 2 MONTH 3

PESO WEEK 1WEEK2

WEEK 3WEEK4

WEEK1

WEEK2

WEEK3

WEEK4

WEEK1

WEEK2

WEEK3

WEEK 4

I EARTHWORKS 2,310.00 sq.m. 7,808.00 0.831%

P 0.831%

A

IIFORMS ANDSCAFOLDINGS

18,429.00 cu.m.530,432.00

56.447%P 18.816

%18.816% 18.816

%

A

III MASONRY 74.00 cu.m.9,760.00

1.039% P 0.346% 0.346% 0.346%

A

IV CONCRETING 33.25 cu.m.3,600.00

0.383% P 0.096% 0.096% 0.096% 0.096%

A

VIROOFING/ROOF FRAMING

7,400.00 sq.m.6,896.00

0.734% P 0.183% 0.183% 0.183% 0.183%

A

VII PLUMBING 575.00 cu.m.94,700.00

10.078% P 5.039% 5.039%

A

VIII DOORS ANDWINDOWS 10.00 set 37,634.50 4.005%P 1.001% 1.001% 1.001% 1.001%

A

IX ELECTRICAL 1.00 lot69,047.00

7.348% P 7.348%

A

X SEPTIC VAULT 1.00 unit27,593.00

2.936% P 2.936%

A

XI PAINTING 150.00 sq,m,152,225.00

16.199% P 4.050% 4.050% 4.050% 4.050%

A

TOTAL 939,695.50100.00% P

A

C A L E N D A RWEEK 1

WEEK

2WEEK 3

WEEK

4

WEEK

5

WEEK

6

WEEK

7

WEEK

8

WEEK

9

WEEK

10

WEEK

11WEEK 12

MONTHLY PROGRESS

PLANNED P 0.83% 26.16% 24.20% 24.20% 1.44% 1.10% 1.28% 1.28% 7.17% 4.23% 4.05% 4.05%

ACTUAL A

CUMMULATIVEPLANNED P 0.83% 26.99%

51.20%75.40% 76.84% 77.94% 79.22% 80.50% 87.67% 91.90% 95.95% 100.00%

ACTUAL A


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In the given example, assuming that the community project can be completed in90 calendar days, based on the projection it may be noticed that at the end ofthe first month the accomplishment is 75.40%. This will determine the first

tranche that will be requested. The first tranche request could either be 70 or80%. It is safe to request 80% first tranche.

6.5 Monitoring Procurement Compliance

1. The Community Facilitator (CF) has been designated to conduct procurementreview in order to monitor procurement compliance. The purpose ofmonitoring procurement compliance is to ensure that all procurementtransactions are done in accordance with the Revised KALAHI-CIDSSCommunity Procurement Manual. The CF must have the working knowledge ofprocurement to help them detect the red flags and abnormalities. Thecommunity may also refer to the CF procurement issues and problems. The CFmust refer to the DAC engineering related issues and problems.

2. The CF will conduct procurement review 100% of all procurement of eachBSPMC. The objective of the procurement review is not to find faults incommunity procurement but to find areas where improvements can be madefor more efficient implementation.

What is procurement review?

Procurement review is the process of checking the conduct of procurement


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PROC.

STAGE

MATRIX OF PROCUREMENT FUNCTIONS OF COMMUNITY VOLUNTEERS, ACT & RPMT

Community PT Community BAC BSPMCBookkeeper

Storekeeper BSPMC Chairman BarangayTreasurer

PlanningStage

-Prepares CPP -approves CommunityProcurement Plan (CPP)

Pre-

ProcurementStage

-attends procurement

training workshop

-attends

procurementtraining workshop

-attends

procurementtrainingworkshop

-attend


-attends procurement training

workshop

-attends


ProcurementStage

-prepares canvass forms-delivers canvass formsto supplier-receives sealed envelop-prepares PO-delivers PO to supplier-prepares invitation toquote-delivers invitation toquote

-prepares Invitation toBid-posting of Invitation toBid

-advertise/postinvitation to bid-conduct pre-bidconference-determineseligibility ofprospectivebidders-conduct ofevaluation of bids

-undertake postqualification

-recordstransactionand files thedocuments(seechecklist ofprocurementdocuments )

-receive thegoods bysigning the PO-store thegoods andprepare stockcards.

-approves PO-review and sign Resolution toAward (RTA)-issue notice of award-issue Notice to Proceed-request clearance from AC priorsigning of PO ( for DC for goods )-request clearance from RPMTprior signing of PO ( For DC forworks )

-request NOL from RPMO forcontract above P 500,000.00

Certifies on FundavailabilityPreparesdisbursementvoucher andcheck

ContractReview

-make all procurementdocuments available


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PROC.STAGE

Community BAC-TWG CommunityFacilitator

RovingBook

keeper

Deputy AreaCoordinator

AreaCoordinat

or

RIE/DRIE/RPO

RegionalProject

Manager

PlanningStage

-assist in thepreparation ofCPP

Pre-ProcurementStage

-attend procurement trainingworkshop -attend procurementtraining workshop -conducttraining onprocurement tovolunteers

-conductcoaching onprocurement toACTs

ProcurementStage

-provide technical assistanceto BAC during evaluation ofquotation and bids.-assist procurement team indrafting contract

-monitor red flag ofabnormalities usingCF ProcurementMonitoring Form.

- provide guidance tothe BSPMC in thepreparation ofminutes of meetingand to ensure that

minutes are properlyprepared, in orderand filed.

-Maintaincopies ofprocurementdocumentsat ACTs.

-providetechnicalassistanceduring bidevaluation-attend pre-bidconference-attend bidopening-provide action

regarding redflag ofabnormalitiesas perinstruction ofAC.

-provideactionregardingred flag ofabnormalities-issueclearanceto directcontracting

for goods.

-attend all pre-bid conference-attend all bidopening.-consolidationof action takenregarding redflag ofabnormality

-provide actionregarding redflag ofabnormalitiesnot resolve inthe ACT.-issue clearancefor directcontracting forworks.

-issue noobjection letterto contractaboveP500,000.00

ContractReview

-conduct contractreview by ensuringcompleteness ofdocuments usingchecklist


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6.6 Billboards

It is a policy of the project that billboards should be installed for each communityproject for transparency purposes.

It must be placed at least 5 meters away from any commercial or politicalbillboard/s.

No p o l i t i c a l n am e s sh o u l d b e i n d i c a t e d .

The A/MCT will remind the BSPMC on monthly updating of billboards fortransparency purposes. Likewise, A/MCT should coach the volunteers on how topresent the rates of accomplishment for better understanding of all communitymembers and the public.


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CHAPTER 7 |MODE OF IMPLEMENTATION


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7.1 By Contract

One or more packages undertaken by one or more contractors using his availableresources will provide labor, materials and equipment in order to effect timelycompletion of the works. The BSPMC the representative of the owner community,will supervise the implementation of the community project.

7.2 Community Force Account

Community Force Account (CFA) refers to the community itself executing the

work. This mode is appropriate when the community has the resources andcapacity to perform the works. Portion of the work items maybe contracted ifthe community does not have capability and resources to undertake for the workitems.

What does capacity means under KALAHI-CIDSS?

Capacity means the community has the ability to manage theimplementation of the community project by hiring the services of skilledworker in the area. Technical Staff is available in the Community or they arewilling to engage the services of a service provider who will supervise theproject implementation.


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This can be provided by:

a. Municipal Engineer, Municipal Agriculturist or Municipal Agricultural

Officer (MAO), Community Environment and Natural Resources Officer(CENRO), Provincial Environment Officer (PENRO), MunicipalEnvironment Officer (MENRO)

b. Technical Advisers from national government agencies such as theNational Irrigation Administration (NIA), Department of Agriculture (DA),Department of Environment and Natural Resources (DENR), for certain

specialized14

community projects such as small water impounding orcommunal irrigation community project and Natural Resource

Management projects.

c. Community-hired private service provider/s using the budget of thecommunity project for the supervision or the Technical Assistance Fund(TAF)15

In the case of labor, it is important to know how the community project wasestimated and funded because it will be the basis for engaging workers for labor.The two possible cases are given below:Case 1: Labor Cost is not fully funded out of KALAHI-CIDSS funds or portion of

labor cost is part of community counterpart (Bayanihan or other form).This is the case in almost all community projects. The communities providelabor counterparts to increase the chances of being prioritized. Counterpart is either in a form of cash or in-kind.

Case 2: Labor Cost is 100% funded out of KALAHI-CIDSS funds or by the localcounterpart (w/ assistance from the LGU).

.


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CHAPTER 8 |


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The different procurement methods that may be used by the community incommunity project implementation are the following:

ExpenditureCategory

Conditions RecommendedMethods

Description

1. GOODS Goods are available locally andthere are several suppliers.Contract is valued at less than oraround PhP 500,000.001

Local Shopping Community solicits atleast three separate pricecanvass from suppliers.Among the factors to beconsidered in choosingthe potential suppliersare quality, availability,reliability and hauling

costs.

Same condition as above exceptthat value of the contract is andabove or more thanP500,000.00

Local Bidding Simplified biddingprocess.

Small amount of purchaserequired and only one localsupplier available. Cheaper topurchase because of reduced

transportation cost. Contract valuedoes not exceed P125,000.00

DirectContracting

Lone local supplier canbe chosen without anyshopping for goods,provided cost are in line

with local market ratesas shown in the RegionalProject ManagementTeam Unit CostDatabase. The AC shouldhave a copy of thisdatabase. Clearance fromAC is required prior tocontracting.

2 WORKS Small works amounting to not Shopping for Written quotations from


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request of No Objection Letter (NOL) together with the attached documents specified inthe NOL review report.

Any NOL issued by the RPMO is presumed to be thoroughly reviewed. Anycontract/purchase order perfected without prior review and without issuance of NOL willbe declared misprocured. The amount covered in the misprocurement will be deductedfrom the cost of the grant fund.

Before entering into Contracts with the Contractors or serving Purchase Order to thesuppliers the BSPMC shall secure NOL for the following:

1. Subject to prior review by the Regional Project Management Office

(RPMO).

Before the BSPMC issues Notice of Award and sign the contract or sign PurchaseOrder, all documents must first be submitted to the Regional Project ManagementTeam for review and if found to be in order, the Regional Project Manager shallissue No Objection Letter.

For GOODS:

a. Individual purchase order amounting to PhP 500,000 but not to exceed PhP1,000,000.

b. Aggregate POs amounting to more than PhP1,000,000.00 within theMunicipality proposed for award to a single supplier.

Sample Case: Two Barangays (say Barangays Poblacion East and PoblacionWest) conducted serving of Invitation to different suppliers within theMunicipality. Supplier X offered PhP560,000.00 to Poblacion East and offeredPhP550 000 to Poblacion West thus the aggregated amount is PhP1 110 000 In


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a. Individual PO under Local Bidding for Goods amounting to more thanPhP1,000,000.00 but not more than PhP2,500,000.

b. All Contract/s under Local Bidding for Works but not more than PhP2,500,000.

3. Subject to Fu n d i n g D o n o r s s No Objection.

Before the BSPMC issues Notice of Award and sign the contract, it must firstsecure the approval of the funding donor e.g. World Bank, MCA-Philippines ,through the Regional Project Management Team (RPMT). The RPMT shall reviewthe documents before forwarding them to the National Project ManagementTeam. In all cases, it shall be the National Project Management Team who shall

secure and coordinate with the funding donorfor NOL.

a. Individual Purchase Order/Contract amounting to more than PhP2.5 Million percommunity project.

b. Aggregate Contracts amounting to PhP2,500,000.00 or more within theMunicipality proposed for award to a single supplier.

For MCC-funded project/s: Contracts below PhP 2,500,000 generally do not need

prior approval by the MCA-Philippines but d u r i n g e a c h K a l a h i - CI D SS cy c l e , fifty(50) randomly-chosen community-based procurement contracts in part or whole areaof coverage, regardless of amount, shall be subject to MCA-Philippines reviewproceedings. The procurement Team should therefore make sure that all supportingdocuments of every contract are properly filed to facilitate submission in case it isselected for review.

4 P i iti i i f t t


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CHAPTER 9 |PROCUREMENT PROCEDURES

Local Shopping

Direct ContractingCommunity Force AccountLocal Bidding


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9.1 Local ShoppingThis procurement method is adopted when there are several local suppliers orcontractors and the value of each contract or procurement is:

1. Less than PhP500,000.00 for purchase of goods (materials, supply andequipment); and,

2. Less than or approximately PhP1.25 M for works {construction, NRM contractsand services (hauling, trucking, and equipment rental) }.

Given the ceilings for this procurement method, local shopping for goods is expectedto be the most frequently used among the different methods.

9.1.1 Local Shopping Goods Contract Less Than or Approx. PhP500,000.00)

PROCEDURES TIME FRAMERESPONSIBLE

UNITACT

PARTICIPATION

1. Conduct of pre-procurement conference.This is an internal meeting with the BSPMC.

1 CalendarDay (CD)

BSPMCProcurementTeam, BAC &PIT

CF will facilitatemeeting. DAC will actas resource person.(Particularly if thecommunity aresituated on a far flungareas.)

Tips in filing up canvass: date ( prepared & opening) by package/pick up date of canvassing &where to solicit dont forget to write specifications of

materials.


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UNITACT

PARTICIPATION

Prepares minutes of pre-procurement

conference.

Keeping of all documents

same day

Team

BSPMC-Bookkeeper

2. Solicits Sealed CanvassDelivers Canvass Forms to at least threesuppliers

a. Either wait for the supplier toaccomplish the form and seal it in anenvelope, or

b. Asks the suppliers to submit theirquotation in a sealed envelope to theBSPMC at the barangay hall within 3days. The PT should ask the supplier toacknowledge receipt of the canvassform by signing the acknowledgementreceipt.

The following should be written outside thesealed envelope:

2 CD @ least 2ProcurementTeam members

CF should accompanyduring the first servingof canvass.

NAME OF SUPPLIERADDRESS

Quotation for:_________________

KALAHI-CIDSS Barangay CommunityProject Management Committee

Address of Barangay


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UNITACT

PARTICIPATION

5. Deadline of submission and opening ofcanvass.

BAC to declare quorum before the openingof canvass. Open the padlock of the boxand open one by one the sealed envelopesand read aloud in public the name ofsupplier and the total amount of prices.BAC to initial the canvass forms.

Prepare minutes of opening of canvass


1 CD(On date and

time indicatedin thecanvass.)

same day

same day

BAC, PT(Invited: TWG,

AuditCommitteeHead ifnecessary)

PT

BSPMCB kk

CF observes theprocess.

If supplier/s submitted canvass after thedeadline of submission, the same will beautomatically rejected.

Q: What is a quorum?

A: The BAC is composed of a Head and2 members. Two (2) out of the 3persons constitutes a quorum.

Q: What if the BAC Head/Chairperson isnot present during the opening ofquotation?

A: It is not a requirement for thehead/chairperson of the BAC to bepresent. The requirement is 2 out of 3persons.


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UNITACT

PARTICIPATION

If during the deadline of submission ofquotation/s three envelopes were

received, the opening will pushthrough. If only one or two suppliersquoted on all items, the BAC will

proceed with the evaluation. If one ortwo supplier/s is found responsive, theBAC should recommend the award tothe supplier offering the lowestcalculated and responsive quotation. Ifthe lowest supplier refuses to acceptthe award, consider the second lowestquotation with the quoted price. If thesecond lowest refuses to accept theaward, re-canvass.

As a general rule, in order for theopening to be successful, the minimumof three envelopes should be received.The BAC should not declare failure ifone or two envelopes are notcompletely quoted. The BAC candeclare failure of opening if only oneor two envelopes were received (in thefirst attempt). However, in the secondattempt and still one or two envelopesare received, the opening will pushthrough provided more than three setsof canvass were served. The proof isthe acknowledgement receipt.

In cases of awards that are beingwaived by suppliers withoutacceptable/valid reasons, said


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UNITACT

PARTICIPATION

d. Keeping of all documents same day BSPMC-Bookkeeper

8. Prepares three (3) copies of Purchase Order(copy the specifications stated in thecanvass form)

a. Agree on date of delivery.

b. Certifies on Fund Availability

c. Approves Purchase Order

1 CD

same day

same day

14 CD

ProcurementTeam

MIT

BarangayTreasurer

BSPMCChairperson

9. Delivers Purchase Order to supplier 1 CD ProcurementTeam

10. Signs conforme and returns two copies tothe Procurement Team

Furnishes one copy to Brgy Bookkeeper

Furnishes one copy to MIT

same day Supplier

ProcurementTeamProcurementTeam

11. Delivery of the goods

Keeping of all the documents

1 CD(As scheduledin the PO)same day

Supplier

BSPMC-Bookkeeper

12. Inspects the goods against the deliveryreceipt and the purchase order.

Signs the Purchase Order if accepted &stamps Inspected on the delivery receipt,otherwise prepares report to the BSPMCChairperson (incomplete delivery or does

1 CD MIT withconcerned TWGmember(depends onthe type ofitems to beinspected)


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UNITACT

PARTICIPATION

community project implementationprocurement and finance document filing

checklist on top of the folder. Original copyof the documents compiled and reviewedby the CF will be turn-over to the MRB forreproduction at the ACT or RPMT.Distribution of the copies will be originalcopy for COA, duplicate copy for Barangayand Xerox copies for ACT and RPMT.

Bookkeeper

9.1.2 Local Shopping Works Contract Below PhP 1,250,000.00


UNITACT

PARTICIPATION

Preparation of Documents1. Conduct pre-procurement

conference. This is an internalmeeting with the BSPMC.

The objective of the Pre-

procurement Conference is toensure that the procurement is inaccordance with the approvedPCPP; properly schedule thesucceeding procurement activities;and, to determine the availabilityof the approved budget for thepackage. The activities involvedare:

2 CD

same day

BSPMC, PT &BAC

PT

CF will facilitatemeeting. DAC willact as resourceperson.


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UNITACT

PARTICIPATION

2. Review & signing

The entries in the invitation toquote will be reviewed before thesigning. The BSPMC Chairpersonwill sign the invitation.

The PT will prepare the minutes ofpre-procurement conference. Thedocuments must be filed and readyfor distribution.

Delivery of Invitation to Quote2. Delivers Invitation to Quote (with

attached specifications, drawings,bill of materials) to at least threelicensed contractors.

1 CD @ least 2members ofProcurement

Team

CF shouldaccompany duringfirst serving of

canvass. (Forcommunities thatare situated on far-flung areas.)

Contractors Conference3. Required for all contracts under local

shopping for works. To be done at least 5days before the deadline of submission ofquotation. The purpose of the contractorsconference is to discuss the details of the

1 CD BSPMC,BAC &PT

DAC to act asresource person

Things to remember:- Indicate the date prepared & schedule

of opening- Do not forget to attach the specification


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UNITACT

PARTICIPATION

Name of Works Procured:Name & signature of team member who

received the sealed envelope.

Deadline of submission and opening ofquotations

6. Convene in the Barangay Hall on theopening of quotations. Deliver the logbookand sealed quotations to the BAC. Declarequorum before the opening of quotation.Open the padlock of the box and open thesealed envelope and read aloud in publicthe name of the contractor and the amount

of quotation. The same procedure will bedone for the remaining sealed envelopes.

1 CD BAC, PT,BSPMC (InviteMun. COAAuditor, Mun.Engr., DAC,Contractors)

DAC to act asresource person.

If the contractor submitted quotationafter the deadline of submission, thesame will be automatically rejected.Name of late contractor must berecorded on the minutes of meeting.

In cases of conduct of shopping for

works in the second attempt, dueto failure in the first attempt andonly one (1) bidder/contractorsubmitted quotation in the secondattempt, the BSPMC has theoption to proceed with the openingand evaluation provided at leastth t t i it d


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UNITACT

PARTICIPATION

and responsive quotation.

A. EvaluationEvaluate if quotation is responsive,i.e.,: Specifications Pass/Fail Criteria

If quotation is not responsive declare thecontractor disqualified. Do not includedisqualified quotation in the ranking.

Prepares minutes of the evaluation ofquotation.


w/ in sameday

same day

PT

BSPMC-Bookkeeper

as reference. DACto act as resource

person.

9. Conducts post-qualification of the lowestcalculated responsive quotation byvalidating contractors documents. Submitspost-qualification report to BAC

within 3 CDaftercompletion ofbid evaluation

ProcurementTeam

DAC to provideassistance

P o s t - q u a l i f i ca t i o n is the process ofverifying, validating and ascertaining allthe statements made and documentssubmitted by the bidder with the LCRQ,which includes ascertaining the saidbidders compliance with the legal,financial and technical requirements ofthe bid.

W h o c o n d u c t s P o s t - q u a l if i ca t i o n


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UNITACT

PARTICIPATION

Chairperson

Prior Review by RPMT 1 CD BSPMCChairperson

13. Reviews contract and all supportingdocuments

14. Issues No Objection Letter (NOL)

3 CD

1 CD

RPMT (InfraEngr. for infracontracts.)

The RegionalProject Directoror the Regional

Project Managerin case the RPDis on officialtravel or onleave.

17. Issues Notice of Award (3 copies)

18. Delivers Notice of Award to Contractor

19. Signs Conforme and returns two copies to

Procurement team

1 CD afterreceipt of NOL

w/ in sameday

2 CD

BSPMCChairperson

ProcurementTeam

Contractor

DAC to providetechnical assistance

Posting of Performance SecurityIf contract is P1M or more:20. Contractor is required to post

Performance Security in the name ofBSPMC (Name of Barangay) in any ofthe following forms: Cash, cashiers check, managers

5 CD contractor DAC to provide T.A.


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UNITACT

PARTICIPATION

22. Furnish copy of the signed contract to LGU

COA Auditor and RPMO

1 CD Project

ImplementationTeam

Issuance of Notice to Commence23. Issues Notice to Commence

Immediatelyupon contractsigning

BSPMCChairperson

DAC to provide TA

Starts the work24. Mobilize equipment and workers

Within 7 CD Contractor DAC to certifymobilization ofequipment, workersand materials.

Advance Payment25. Contractor has the option to claim advance

payment equivalent to 15% of the contractprice subject to compliance of the followingrequirement: Certification from DAC that equipment

and materials are already mobilized onthe jobsite.

Bank guarantee equivalent to the amountrequested.

Within 3 CD MRB to review thedocuments

Inspection and Provision of TechnicalAssistance During ContractImplementation

26. Conduct regular visits to the project sitesand provide technical assistance

As frequent asnecessary

Mun. Engr.,DAC, RegionalInfra Engr.,AreaCoordinatingTeam.

Payment


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PERIOD OF ACTIONS of PROCUREMENT ACTIVITIES(LOCAL SHOPPING)

ACTIVITIESDEADLINE

PERIODSGOODS WORKS

Min Max Min Max

Pre-procurement 1 CD 1 CD 1 CD 1 CD

Serving of Canvass/ Invitation toQuote

w/in 7 daysfor works

1 CD 2 CD 7 CD 14 CD

Contractors

Conference

5 daysbefore

submission1 CD 1 CD

Submission andOpening of Bids

1 CD 3 CD 7 CD 7 CD

Evaluation ofQuotation

1 CD 1 CD 1 CD 3 CD

Post Qualification 3 CD 5 CD

Issuance of NOLand Notice to

Award

3 CD 7 CD

Signing of PO/Prepn ofResolution toAward /ContractPreparation

2 CD 2 CD 3 CD 5 CD

Issuance of PO /Notice to proceed

1 CD 1 CD 2 CD


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9.2 DIRECT CONTRACTING

9.2.1 Direct Contracting for Goods shall be used using the followingprocedures:

1. Draw up a list of qualified suppliers within the municipality2. Serve canvass or invitation to quote3. Opening of canvass/quotation4. Evaluation of canvass/quotation5. Approval of Purchase Order

Supporting documents:

1. DAC certification (that it is cheaper to purchase from a local supplier)2. ACT unit cost data base.

a. Only one exclusive distributor of the good to be procured.b. Repeat Order of additional goods of a similar nature previously acquired

through local shopping or bidding. Repeat Orders shall be subject to thefollowing conditions:

Unit prices of the repeat order must be the same as or lower thanthose in the original contract, provided that such contract is still themost advantageous to the BSPMC after price verification;

The repeat order may be availed of only within three (3) months fromthe date of the original purchase; andTh tit h ll t d th tit i th i i l t t


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PROCEDURES TIME FRAME RESP. UNITACTPARTICIPATION

Review and signing the canvass form.

Prepares minutes of the Pre-ProcurementConference

Keeping of all the records

same day

same day

ChairpersonPT

BSPMC-Bookkeeper

2. Delivers canvass form to the lone supplier

a. Either waits for the supplier toaccomplish the form and seals it in anenvelope.

b. Asks the supplier to submit thecanvass to BSPMC at the barangayhall.

The following should be written outside theenvelope;

1 CD PT

3. Fill up in canvass form and submit it insealed envelope

2 CD Supplier

4. Receives sealed envelope and place insidethe box. If submitted in the barangay hallbefore the deadline stipulated in thecanvass form Procurement Team member

1 CD Supplier

Name of SupplierAddress

Quotation

for:________________________KALAHI-CIDSS: Barangay Community


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PROCEDURES TIME FRAME RESP. UNITACTPARTICIPATION

9. Signs conforme and returns two copies tothe Procurement Team

Furnishes one copy to Brgy Bookkeeper

Furnishes one copy to MIT

Keeping of all records

1 CD

same day

same day

same day

Supplier

PT

PT

PT

Delivery of Goods10. Delivers the goods

As scheduledin the PO

Supplier

11. Inspects the goods against the delivery

receipt and the purchase order.

Signs the Purchase Order if accepted &stamps Inspected on the delivery receipt,otherwise prepares report to the BSPMCChairperson (if incomplete delivery or doesnot conform with specifications)

If accepted, turn over the goods to theStorekeeper

w/ in same

day

MIT with

concerned TWGmember(depends onthe type ofitems to beinspected)MIT

12. Receives the goods by signing the PurchaseOrder; stores the goods and prepares stockcards

Forwards PO and delivery receipt toBarangay Treasurer

w/ in sameday

w/ in sameday

Storekeeper

Storekeeper

13. Reviews the documents and processpayment on delivered items only.

1 CD Brgy Treasurer


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9.2.2 Direct Contracting For Works Application and Detailed Procedures

This involves small contracts at the community such as but not limited to: fabricationworks of steel trusses, doors and windows, construction of furniture, installation ofwater pump, fabrication and installlation of railings in buildings or bridge, and otheractivities that will boost economic activities at the community.

9.2.2.1 Direct Contracting for Works shall only be used under the followingcases

1. Only one local contractor (in the barangay/municipality or adjacentmuniicplaity) is available and the cost is in line with prevailing local market as

shown in the Regional Project Management Team (RPMT) unit cost database.RPMT NOL is required prior to contracting.

2. Contract under this method should not exceed PhP 250,000.00

3. Repeat Order of Works of a similar nature previously acquired through LocalShopping or bidding. Repeat Order shall be subject to the followingconditions:a. Unit prices of the repeat order must be the same as or lower than those in

the original contract, provided that such contract is still the mostadvantageous to the BSPMC after price verification;

b. The repeat order may be availed only within three (3) months from thedate of original contract;

c. The quantity shall not exceed the quantity in the original contract;d. Contract under this method should not exceed PhP 250,000.

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UNITACT

PARTICIPATION

2. Delivers Invitation to Quote (with attachedtechnical specifications, drawings) to thelone contractor.

Ask the contractor to submit their quotationin a sealed envelope to the BSPMC @ thebarangay hall. The following should bewritten outside the envelope.

1 CD

ProcurementTeam assistedby DAC

3. Fill up the Invitation to Quote and submit insealed envelope

1 CD Contractor

4. Receives sealed envelope and place insidethe box. If submitted in the barangay hall

before the deadline stipulated in theInvitation to Quote, Procurement Teammember records receipt in the logbook withthe following information:

2 CD (Asprovided in the

request)

ProcurementTeam

Name of ContractorAddress

Quotation

for:________________________KALAHI-CIDSS: Barangay CommunityProject Management CommitteeAddress of Barangay

Name of goods forprocurement:____________Name ofContractor:_____________________Date received:


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a. Minutes of pre-procurement conferenceb. Plans and Technical Specificationc. Quotation submitted by contractord. Draft Contracte. Post Qualification Report

Review by RPMT11. Review the documents and recommend

issuance of No Objection Letter

Review and issue No Objection Letter

3 CD

2 CD

Regional InfraEngr /concerned staffRegional ProjectManager

ACT to follow upNOL

Approves Notice of Award12. Approves Notice of Award 1 CD afterreceipt of NOL

BSPMCChairperson

Deliver Notice of Award (see pro-formapage)

13. Delivers Notice of Award (3 copies) toContractor

Signs Conforme and returns two copies toProcurement team

w/ in sameday

2 CD

ProcurementTeam

Contractor

Posting of Performance Security14. Since contract amount is below P1M, the

Contractor chooses between performancesecurity or retention money

a. If Contractor chooses to postPerformance Security, it should be inthe name of BSPMC (Name ofBarangay) in any of the following

5 CD Contractor


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PARTICIPATION

Payment20. Processes payment based on

accomplishments certified by the ProjectSupervisor noted by ProjectImplementation Team.

A. Processing @ BarangayDV & Check signing

B. Check signing @ ACT MRB review documents MRB to initial duplicate copy of

check to indicate documents in

order ACT sign the check

Signs voucher, logbook and issues OfficialReceipt

2 CD

1 CD

Immediatelyupon payment

Brgy Treasurer

MRBMRB

AC

Contractor

Filing of Procurement Documents21. Filing and Record Keeping.

Compilation of all documents withCommunity Project ImplementationProcurement and Finance Document Filing

Checklist on top of the folder. Original copyof the documents will be compiled andreviewed by the CF and turned-over to MRBfor reproduction at the ACT or RPMT.Distribution of the copies will be originalcopy for COA, duplicate copy for Barangayand photo copies for ACT and RPMT.

1 CD BSPMC-Bookkeeper

CommunityFacilitator


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Hand tools will be supplied by the BSPMC through the Project Supervisor. The Project Supervisor will be responsible for keeping the tools in workingorder by sharpening / repairing them. Tools will be issued by the workforce and the issuance will be documented in

the contract documents. Worn-out tools should be returned to the storekeeper for replacement. Theseshould be returned from the project site to the property custodian for write off orreplacement for tools lost. On completion of the Direct Contract Agreement all tools and implements,whether serviceable or not, shall be returned to the storekeeper. This shall bemade a condition for payment of the Contract Agreement. Any loss will bededucted at replacement value from the contract sum and the amount recovered

will be used for the purpose of replacement for the tools lost. No tools shall be offered or sold to the workers.

PAYMENT1.Before commencing the work, the barangay treasurer has to certify theavailability of funds.2.Payment will be made after the completion of the work only as certified by theProject Supervisor.

DIRECT CONTRACT DOCUMENTS.1.Proposal2.Direct Contract Agreement3.List of Tools to the provided to the Group


UNITACT

PARTICIPATION


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synchronized with the actualimplementation of the project

work starts

Start and implement program of works3. Start implementation and supervise the day

to day activities in the sites.As scheduled Project

Supervisor/Group Leader

Regular Inspection and Provision ofTechnical Assistance DuringImplementation

4. Conduct regular visits to the project sitesand provide technical assistance.

As frequent asnecessary

Mun. Engr.DAC, AreaCoordinating

Team, RIE

Payments for labor5. CASE 1. Prepares payroll and Community

Employment and Record Sheet every payday. Submit payrol

l and CERS to the Headsof PT, PIT and BSPMC Chairperson forsignature

CASE 2. Prepare payment after receipt ofrequest for payment from Direct

Contracting Group

6. Pays the workers based on agreed rates

7. Signs the payroll and CERSGive copy of signed payroll to BrgyTreasurer

8. Gives the payroll and CERS to the BrgyBookkeeper

Frequency asagreed by thecommunity

Brgy Treasurer

Brgy Treasurer

Brgy Treasurer

WorkersGroup Leader


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UNITACT

PARTICIPATION

Pre-Procurement Conference

1. Conduct of pre-procurement conference .This is an internal meeting with the BSPMC.

A. DiscussionBSPMC will discuss the items ofmaterials for procurement using thePlanned Community ProcurementPackage.

B. PreparationThe procurement team will prepare the

following forms.a.Invitation to Bidb.Abstract of Bidsc.Form of Bidd.Purchase Ordere.Form of Bid Security (Bank

Guarantee)f. Drawings (if applicable)g.Technical Specificationsh.Form of Performance Security (Bank

Guarantee)

i. Notice of Award

C. Review & signingReview & signing of the Invitation toBid.

Prepare minutes of Pre-ProcurementConference


1 CD

same day

same day

same day

same day

BSPMC, BAC &PT

PT

BSPMCChairperson

ProcurementTeam

BSPMC

CF to facilitatemeeting. DAC to actas resource person.

RESPONSIBLE ACT


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PARTICIPATION

Pre-bid conference must be conducted atthe community level

Records the minutes of the conference. Theminutes shall be issued to all bidders 5

days before the bid opening


5. Conducts group site visit (if this is criticalfor costing and delivery of goods)

The BSPMC to issue Certificate of SiteInspection (if required)

same day

same day

same day

ProcurementTeam

Bookkeeper

BAC, PT, PIT,MIT, Mun.Engr., DAC,bidders

What if the bidder did not attendthe pre-bid conference.?

Attendance in the pre-bid conference ofthe bidder is not compulsory and shouldnot be a ground for disqualification.

What if the bidder did not conductsite visit?

The conduct of site visit is compulsory.This will enable the bidder to make agood offer of bid price.

RESPONSIBLE ACT


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9. Prepares the barangay hall for the publicopening of bids.

A day beforebid opening

ProcurementTeam

10. Brings the logbook and sealed bid envelopesand place inside the bid box in thebarangay hall.

On the datespecified in theinvitation tobid.

ProcurementTeam

11. BAC to declare quorum16

before theopening of bids. Open the padlock of thebid box and open the first envelope, readaloud the name of the supplier, bid amount,amount and form of bid security and recordthe attached documents using the checklistof bidding documents. The same procedurewill be done for the remaining sealedenvelopes. Forwards bid documents toother BAC members for review.

Initial the bids and other supportingdocuments

Prepares minutes of Bid Opening

Review & sign minutes of bid opening


1 CD

same day

same day

same day

same day

BAC Chairman

BAC Chairman

PT

BSPMCChairpersonBookkeeper

What are grounds for automaticdisqualification?Late bids and no bid security attached tothe bid.

RESPONSIBLE ACT


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PARTICIPATION

Securities of the non-winning bidders willbe returned only after the winning bidderhas signed contract with the BSPMC.

Personal Check is not acceptable.

14. Evaluation of bids.Evaluate bid if it is responsive, i.e.,:1.1 Applied correction on prices1.2 Pass/fail Criteria1.3 Ranking of bids

If bid is not responsive declare the bidderdisqualified. Do not include disqualifiedbidder in the ranking.

Prepares minutes of the evaluation of bids


same day

same day

BACw/assistance ofTWG

PT

Bookkeeper

DAC to providetechnical assistance.

Post Qualification of Bidder withLowest Calculated and Complying Bid

15. Conduct post qualification to the lowestcalculated and complying bidder byvalidating bidders compliance with

qualification requirements (Technical,Financial and Legal). Submits post-qualification report to BAC

Passes Resolution to Award (RTA). The RTAwill indicate that the bidder is the LowestCalculated and Responsive Bid (LCRB).

Review and signs the RTA

2 CD (aftercompletion ofbid evaluation)

1 CD

W/ in sameday

ProcurementTeamBAC

BSPMChairperson

RESPONSIBLE ACT


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PARTICIPATION

Forms of performance security:a. Cash, certified check, cashiers check,

managers check, 5% of contract priceb. Bank guarantee, 10% of contract price

from receipt ofNOA

Signing of Purchase Order20. Approves the Purchase Order (three

copies)

Signs in the conforme on the PO andreturns two copies to Procurement Team

Forwards the PO together with the rest ofthe supporting documents to the BrgyBookkeeper

Files the documents

Uponsubmission ofPerformanceSecurity

w/ in 1 CDupon receipt ofPO

1 CD

1 CD

BSPMCChairperson

Supplier

ProcurementTeam

BrgyBookkeeper

Furnishing Contract Documents to LGUCOA and RPMO

21. Provides LGU COA, RPMO a duplicate copyof approved Purchase Order and supportingdocuments

2 CD ProcurementTeam

Start Delivery of Goods22. Delivers goods As provided in

the deliveryschedule.

Supplier

Monitoring

PROCEDURES TIME FRAMERESPONSIBLE ACT


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UNITACT

PARTICIPATION

reproduction at the ACT or RPMT.Distribution of the copies will be originalcopy for COA, duplicate copy for Barangay

and photo copies for ACT and RPMT.

9.4.2 Local Bidding For Works - Detailed Procedures


UNITACT

PARTICIPATION

Pre-Procurement Conference1. Conduct pre-procurement conference. This

is an internal meeting with the BSPMC.

A. Discussion.Discuss the item of works forprocurement using the PlannedCommunity Procurement Packaging(PCCP).

B. PreparationPrepare the following: Invitation to Bid for works Instruction to Bidders Bidding Data Conditions of Contract Contract Agreement Engineering Drawings Technical Specifications Form of Bid Form of Bank Guarantee for

Advance Payment Form of Bid Security(Bank

G t )

1 CD

same day

BAC,BSPMC,PT,TWG

ProcurementTeam

CF will facilitatemeeting. DAC willact as resourceperson.



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PROCEDURES TIME FRAMEUNIT PARTICIPATION

e. Forms of Contract Agreement (draft)f. Engineering Drawingsg. Technical Specifications

h. Form of Bidi. Form of Bank Guarantee for Advance

Paymentj. Form of Bid Security(Bank Guarantee)k. Form of Performance Security (Bank

Guarantee)

Pre-Bidding Conference4. Required for all contracts regardless of the

amount under Local Bidding for Works. Tobe done at least 10 days before thedeadline for submission of bids. Thepurpose of pre-bidding conference is todiscuss the details of the contract andclarify the bidding documents.

Records the minutes of the conference. Theminutes shall be issued to all bidders 5days before the bid opening

Keeping of all the records

5 C d t it i it

1 CD

same day

same day

BAC, PT, PIT,MIT,Invited:Mun,. Engr.,DAC, bidders

ProcurementTeam

BSPMC-Bookkeeper

If the bidder did not attend the pre-bid conference, is it a ground fordisqualification?

Attendance in the pre-bid conference isnot compulsory and should not be a

ground for disqualification.



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PROCEDURES TIME FRAMEUNIT PARTICIPATION

envelopedd. Keeps them in a locked filing cabinet

Bid Opening and Examination

8. Invites Mun. Engr. DAC, COA Auditor,concerned TWG member, RIE to attend thebid opening.

1 CD (Sendwritteninvitation one(1) weekbefore bidopening)

BAC

9. Prepares the barangay hall for the publicopening of bids.

1 CD (One daybefore bidopening)

ProcurementTeam

10. Brings the logbook and sealed bidenvelopes to the BAC in the barangay hall

Community-Based Procurement Manual (Nov2011)

Documents

Transcript of Community-Based Procurement Manual (Nov2011)