Overview of KC Community Procurement

OBJECTIVES:

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• Understand Community-Based Procurement Procurement Policies, Process, Methods,

Threshold and others Function of Community-based Procurement

with the ACT and the Community Volunteers

• Understand that Community Procurement and Finance are subject to Strict Audit by COA, World Bank and other external auditors

Regular COA audits and fiduciary reviews at the region

The activities involved in KALAHI-CIDSS procurement are part of the Community Empowerment Activity Cycle (CEAC)

Note:

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Subproject Dev’t Process Associated to Procurement

PSA AnalysisSurvey Data

Plans & Estimates

SP Concept Form

Inventory of Suppliers & Contractors

PCPP & PAP

Work Schedule & Methods

Procurement & Report

Draft Proposal

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LEGAL BASES:• Loan Agreement between the WB and the GOP• Republic Act 9184 also known as the

Government Procurement Reform Act

R.A. 9184 authorized the use of Community-Based Procurement manual of the KALAHI-CIDSS (KC) including all its provisions, process and procedures; (Section 4 of RA 9184)

Section 4 of the Government Procurement Reform Act, R.A. 9184 provides that “any treaty or international or executive agreement affecting the subject matter of this Act to which the Government of the Philippines is a signatory shall be observed.”

The Loan Agreement for KALAHI-CIDSS Project provides that for community projects, the procurement method should follow community participation. Thus, the procurement procedures provided for in the Community Procurement Manual, as acceptable to the Bank, shall be followed.

Legal Provision

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What is Procurement?

Procurement is a process of:- acquiring/purchasing

goods, supplies, materials, equipment and rental of equipment;

- contracting the entire or portion of the works to contractor.

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Why Community Procurement? Community-driven development (CDD)

gives control of decisions and resources to community groups.

CDD treats poor people as assets and partners in the development process, building on their institutions and resources; thus,

Procurement is also a way of empowering Communities through their participation and management of the procurement activities; hence, COMMUNITY PROCUREMENT…

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Why is Procurement important?- Acquire the best QUALITY of

items/works/service with the most ECONOMICAL cost or within the BUDGET;

What do we procure in KALAHI-CIDSS?

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 its operations.

WORKS – refers to civil/infrastructure and all types of physical works that require labor.Examples: construction/improvement of roads, bridges, irrigation, flood control and drainage, water supply,

electrification facilities, buildings.

COMMUNITY PROCUREMENT

What do we procure in KALAHI-CIDSS?

CONSULTING SERVICES - refer to services provided by external technical service providers or professional expertise that are beyond the capacity of the BSPMC or Local Government Unit (LGU) staff to undertake such as but not limited to feasibility studies; design; construction supervision; services for capability building types of community projects; and, special studies.

COMMUNITY PROCUREMENT

Community Procurement

Principles:F - FairnessE- EffectivenessE- EconomyT - TransparencyA - Accountability

F

Principles of procurement

E E T A

Fairness orFair-dealing Competitive by extending equal

opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding.

PANTAY PANTAY WALANG

PABORITISMO

F

Principles of procurement

E E T A

Effectiveness It should be simple and

applicable to the community. SIMPLE AT EPEKTIBO

F

Principles of procurement

E E T A

Economy The CSPIMC shall use the Lowest Calculated and

Responsive Bid/Quotation and the most advantageous to the BSPMC as criteria for selection of service providers.

PINAKA MURA AT NASA

TAMANG KALIDAD

F

Principles of procurement

E E T A

Transparency Transactions during procurement process and

implementation must be transparent. There should be openness and clarity on procurement policy and its delivery. All transactions must be known by the public.

WALANG TINATAGO AT BUKAS

PARA SA LAHAT

F

Principles of procurement

E E T A

Accountability The CSPIMC and any official, directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with BSPMCs, when investigated and proven guilty are held liable for their actions relative thereto.

MAY RESPONSIBILIDAD

AT PANANAGUTAN

Procurement for the sub-project shall be the responsibility of the community through the BSPMC.

Transparency should be practiced in all stages of the procurement process.

The BSPMC shall use the Lowest Calculated AND Responsive Bid/Quotation as the criterion for selection of suppliers and contractors.

The Project prescribes the procurement methods and procedures to be used.

Procurement Policies:

Violations on the prescribed procurement policies, methods and procedures shall hold the participating communities liable for sanctions.

The Community-Based Procurement Manual shall be the basis of the government auditors, the World Bank, and other bodies exercising oversight functions in determining the legality, propriety and regularity of the community’s procurement activities. The World Bank Guidelines and the Loan Agreement take precedence over Local Guidelines, in case of conflict.

Cont’n…Procurement Policies

BARANGAY SUB-PROJECT ORGANIZATION STRUCTURE

Barangay Assembly

Project Preparation Team (PPT)

Audit & Invento

ry Team (AIT)

Bids and Awards

Committee (BAC)

Secretary

Brgy. Treasurer

Bookkeeper

Operation &

Maintenance

Committee (O & M)

Monitoring &Inspection

Team(MIT)

ProjectImplementatio

nTeam (PIT)

ProcurementTeam (PT)

Community Sub-project

Implementation and Management

Committee (CSPMIC)

Barangay Development Council

• The Community Assembly members elect at least three members of the Procurement Team during the 3rd Barangay Assembly meeting for KALAHI-CIDSS Project

• The Procurement Team shall be in charge of activities required to acquire all the supplies, materials, equipment, labor from suppliers and contractors.

ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM

Prepare procurement documents Act as Canvassers /issue Request for Quotation (RFQ) Prepare and finalize Planned Community Procurement

Packaging (PCPP) & Community Employment Record Sheet (CERS) with the assistance of the DAC

Assist in the presentation of PCPP and CERS during Barangay Assembly

Receive and record bids/quotations Act as Secretariat to the Bids and Awards Committee Assist in updating the status of Actual Community

Procurement Packaging (ACPP)

Functions of the PROCUREMENT TEAM

The BAC shall be responsible for ensuring that the BSPMC abides by the standards set forth in the Community-Based Procurement Manual.

The BSPMC Chairperson is the representative of the owner community. In effect, it represents the head of the procuring entity and approves contract with the Chairman being authorized to sign it.

The BAC is a mere creation of the BSPMC. Responsibility therefore cannot be delegated to the BAC.

The Bids and Awards Committee (BAC)

Composition of the BAC:• Barangay Treasurer• Head of the Project Preparation Team• One member to be elected by BSPMC

Executive Committee (Brgy. Officials are disqualified)

Note: The BSPMC Executive Committee is composed of the BSPMC chairperson and heads of teams under the BSPMC

The Bids and Awards Committee (BAC)

The BAC members shall elect the chairperson of the BAC

The BSPMC Chairperson as approving authority on all transactions is disqualified to be a member of the BAC and the Barangay Treasurer is disqualified to head the BAC.

The LGU COA Auditor, Barangay Captain, AC/MC, DAC/LGU Engineer and the Barangay Audit and Inventory Committee Head shall be invited to sit as non-voting members. Other interested parties are also encouraged to observe the BAC proceedings.

A Technical Working Group (TWG) shall be formed. The TWG shall assist the BAC in bid evaluation.

Composition of the BAC

1. Advertises and/or posts the invitation to bid 2. Conducts pre-procurement and pre-bid conferences 3. Determines eligibility of prospective bidders 4. Receives bids 5. Evaluate bids with the assistance of the TWG 6. Recommends the award of contract to the BSPMC

Chairperson. When the BSPMC Chairperson disapproves the recommendation, such disapproval shall be based on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC.

The Bids and Awards Committee

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

The Bids and Awards Committee

Roles of ACT/MCT members:

Area / Municipal Coordinator• Checks and ensures all documentations to be in order• Acts as TWG member• Signatory• Issues Clearance to Direct Contracting for Goods• Provides actions regarding red flags of abnormalities

Deputy Area Coordinator / LGU Engineer• Assists and reviews the Planned Community

Procurement Packaging including the Community Employment Record with PTs

• Conducts Procurement Training• Attends pre-bid conference and bid opening• Checks and ensures all documentations to be in order• Acts as TWG member• Provides actions regarding red flags of abnormalities

Roles of ACT/MCT members:

Community Facilitator• The Community-Based Procurement Manual provided

that.. The COMMUNITY FACILITATOR will conduct 100% procurement review of all procurement of each BSPMC. • Monitor red flags of abnormalities

Municipal Roving Bookkeeper• Provides technical inputs in all procurement

transaction• Checks and ensures all documentations to be in

order• Acts as TWG member• Maintains copies of all procurement documents

at ACT/MCT

Procurement Methods:For Goods:• Local Shopping• Local Bidding• Direct Contracting

For Works:• Local Shopping • Local Bidding• Direct Contracting• Community Force Account

1. Local Shopping2. Local Bidding3. Direct Contracting4. Community Force Account

Methods of Procurement

Procurement Methods and Prior-review

METHODTHRESHOL

D(PhP)

PRIOR REVIEW

RPMO NPMO WB/ADB

Local Bidding

- Works 1.25M & above

All except <2.5M

Above 2.5M

- Goods 0.5M & above

>0.5M but <1M

>1M but <2.5M

Above 2.5M

Local Shopping

- Works Below 1.25M

>0.5M but <1.25M

- Goods Below 0.5M ≥0.5M but <1M

Direct Contracting

- Works P250,000.0 Below

ACT

- Goods P125,000.0 Below

ACT

Aggregated contracts 1M to 2.5M Above 2.5M

Procurement Activities:

• Procurement Conferences• Posting/Advertisement/Canvassing• Canvass or Bid opening• Bid Evaluation & post qualification• Awarding of Contract• Signing of Contract• Contract Management

PrepareProcurement

Packages

Conduct Pre-

ProcurementConference

Serving of

Canvass Evaluation of Price offered

Serving of Purchase Order

Delivery ofGoods/Works

PCPPPOW

Minutes Of Meeting(date, mode)

Minutes Of Meeting

TWG Report

Signed P.O.

Delivery ReceiptsInspection Report,Pictorials

Payment ofGoods/Works

Voucher, Checks,Official Receipt

Filled-up Canvass

Sealed Canvass

Minutes Of Meeting

Canvass opening

Abstract of Canvass

PERIOD OF ACTION OF PROCUREMENT ACTIVITIES (SHOPPING)

ACTIVITIES DEADLINE

PERIODSGOODS WORKS

Minimum Max

Minimum

Max

Pre-procurement 1 CD 1 CD 1 CD 1 CD

Serving of Canvass / Invitation

to Quote

w/in 7 days for works 1 CD 2 CD 7 CD 7 CD

Contractors Conference

5 days before bid opening

1 CD 1 CD

Submission and Opening of Bids 1 CD 3 CD 7 CD 7 CD

Evaluation of Quotation 1 CD 1 CD 1 CD 3 CD

Post Qualification 3 CD 5 CD

Issuance of NOL and Notice to

Award3 CD 7 CD

Signing of PO/ Prep’n of

Resolution to Award /Contract

Preparation

2 CD 2 CD 3 CD 5 CD

Issuance of PO/ Notice to proceed 1 CD 1 CD 2 CD

SUB-TOTAL 7 CD 9 CD 27 CD 38 CD

ACTIVITIES DEADLINE

PERIODS

GOODS WORKS

Min Max Min Max

SUB-TOTAL 7 CD 9 CD 27 CD 38 CD

Issuance of NOL

5 (RPMO)5 (NPMO)15 (WB)

3-5 (RPMO)

SUB-TOTAL 32 CD 43 CD

Issuance of Notice of Award

3 CD 7 CD

Contract Preparation and Signing

2 CD 5 CD

Issuance of Notice to Proceed

1 CD 3 CD

T O T A L 38 CD 58 CD

PERIOD OF ACTION (TIMELINE) OF PROCUREMENT ACTIVITIES(LOCAL SHOPPING)

Prepare/ReviewProcurement

Packages

Conduct Pre-

ProcurementConference

Posting/ Publish

Invitation ToBid

Signing of Contract

Delivery ofGoods/Works

PCPPPOW

Minutes Of Meeting(date,mode)

Minutes Of Meeting

AbstractOf Bids

Contract, NTP,Performance Bond

Delivery Receipts,Inspection Report,Pictorials, TestingResults

Payment ofGoods/Works

Voucher, Checks,Official Receipt

Draft Invitation ToBid (ITB)

Final ITB

Minutes Of Meeting

Opening ofBids

Sealed BidsBid Security

EvaluationOf Bids

TWG ReportBAC ResolutionNOL issuedNotice of Award

Pre-Bid Conf.

Minutes Of Meeting

PERIOD OF ACTION (TIMELINE) OF PROCUREMENT ACTIVITIES

(LOCAL BIDDING)

ACTIVITIES DEADLINE

PERIODS

GOODS WORKS

Min Max Min Max

Pre-procurement 1 CD 1 CD 1 CD 1 CD

Advertisement/Posting of Invitation

7 CD 14 CD 7 CD 14 CD

Pre-bid Conference and Site visit

7 CD before deadline of submission of bids

1 CD 1 CD 1 CD 1 CD

Issuance of bidding documents

2 weeks from 1st day of posting

7 CD 7 CD 7 CD 7 CD

Submission and Opening of Bids

1 CD 1 CD 1 CD 7 CD

Bid Evaluation 1 CD 1 CD 1 CD 3 CD

Post Qualification 1 CD 3 CD 1 CD 5 CD

SUB- T O T A L 19 CD 28 CD 19 CD 38 CD

ACTIVITIESDEADLIN

E

PERIODS

GOODS WORKS

Min Max Min Max

SUB-T O T A L 19 CD 28 CD 19 CD 38 CD

Issuance of NOL5 (RPMO)5 (NPMO)15 (WB)

5 (RPMO)10 (NPMO)

20 (WB)

5 (RPMO)5 (NPMO)15 (WB)

5 (RPMO)10

(NPMO)20 (WB)

SUB-T O T A L 24 CD 38 CD 24 CD 48 CD

Issuance of Notice of Award

3 CD 7 CD 3 CD 7 CD

Contract Preparation and Signing

2 CD 5 CD 2 CD 5 CD

Issuance of Notice to Proceed

1 CD 3 CD 1 CD 3 CD

T O T A L 30 CD 53 CD 30 CD 53 CD

PERIOD OF ACTION (TIMELINE) OF PROCUREMENT ACTIVTIES(LOCAL BIDDING)

Refers to the community itself executing the works.

This mode is appropriate when the community has the resources and capacity to perform the works.

Community Force Account

PROCUREMENT RED FLAGS…are Procurement indicators of “risks” that if not mitigated or managed will influence lapses, irregularities… that eventually may result to “misprocurement’”.

A. Preparation of detailed sub-project:◦ Over/under estimate compared to local prices◦ Quantity over estimated/under estimated◦ Existing usable materials/items still included in the list of

materials to be procured◦ Costing for Community Force Account is based on

previous contracts awarded to contractorsB. Packing/Canvassing:

◦ The contract cost is above the procurement mode threshold

◦ Canvass form not properly filled-up/signed◦ The same supplier/contractors are invited even there are

more qualified bidders in the area◦ Materials were not purchased based on the priority list◦ Some items are not appropriate for the package◦ Brand is specified on the technical specification

C. Submission of Quotation/Bid, Evaluation and Awarding of Contracts:

◦ Quotations/Bids are not sealed prior to opening date◦ Same supplier/contractor is getting majority of the contracts even it

has poor performance◦ The winning supplier/contractor is not the lowest bid offered◦ The date in the Quotation/Bid is beyond the deadline of date

submission◦ There are erasures on the quotations/bids◦ Signatures are doubtful/falsified ◦ Price quotations/bids are too close to each other◦ Hardware of supplier or office of the Contractor does not exist◦ Award was made even if there are only two quotations were received◦ Award was made to supplier/contractor that does not have the

capability to deliver/perform the contract◦ Procurement process moving too slow as compared to prescribed

time

D. Delivery of Goods/Works:◦ Non-delivery or incomplete delivery of

goods◦ Sub-standard deliveries or inferior quality

of works◦ Materials are not used for the sub-project

E. Payment◦ Payment to workers are not on agreed

rates◦ Payment made is not equivalent to

delivered goods or works accomplished◦ Payment is delayed

PROCUREMENT ACTION PLANNING

Procurement Action Planning

Procurement Activities

Timeline to Complete the

Activity (Inclusive Dates )

Responsible

Volunteers & Project

Staff

Venue of meeting

and place/s to Conduct Procuremen

t

Name of Potentia

l Supplier

s

Resource Requirem

ent

Expected

Outputs/

Remarks

 

1. Preparation of PCPP              

2. Finalization of Packages & PCPP

             

3. Conduct of Pre-procurement Conference

             

4. Preparation of Minutes of Meeting

             

5. Preparation of Procurement Documents

             

6. Serving of Canvass              

- Package # 1              

- Package # 2              

7. Opening of Canvass              

8. Preparation of Minutes of Opening of Canvass

     

Procurement GuidelinesProcurement Activities

Timeline to

Complete the

Activity (Inclusive Dates )

Responsible

Volunteers & Project

Staff

Venue of meeting

and place/s to Conduct Procuremen

t

Name of Potential Suppliers

& Contractor

s

Resource

Requirement

Expected Outputs/ Remarks

 

9. Evaluation of Canvass

             

10. Preparation of minutes of Evaluation of Canvass

             

11. Preparation of Purchase Order

             

12. Serving of PO/s (Package #)

             

13. Delivery of Materials

             

Prepared by:Approved by: Noted by:

 ________________________      

Procurement Team Head

BSPMC Chairman

Area Coordinator

 

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• Read the KC Community-Based Procurement Manual At least on the Local Shopping

procedure part

• Ensure to have a COMPLETE copy of all the procurement documents at the ACT office Have a separate folder for

procurement for each subproject• ACT must be hands-on

during the procurement process

ACs are also expected to be knowledgeable in Procurement not only DACs and MFAs