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

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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 CommunityBased Procurement manual of the KALAHICIDSS (KC) including all its provisions, process and procedures;
(Section 4 of RA 9184)

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Legal Provision
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.

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 of items/works/service with the most cost or within the ;

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COMMUNITY PROCUREMENT 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

Principles:
FEETAFairness Effectiveness Economy Transparency Accountability

F E E Fairness or Fair-dealing

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

F E E Effectiveness

It should be simple and applicable to the community.

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.

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.

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.

 Procurement

for the sub-project shall be the responsibility of the community through the BSPMC. should be practiced in all stages of the procurement process. BSPMC shall use the Lowest Calculated AND Responsive Bid/Quotation as the criterion for selection of suppliers and contractors. Project prescribes the procurement methods and procedures to be used.

Transparency

The

The

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 communitys procurement activities. The World Bank Guidelines and the Loan Agreement take precedence over Local Guidelines, in case of conflict.

BARANGAY SUB-PROJECT ORGANIZATION STRUCTURE

Barangay Assembly
Barangay Development Council

Operation & Maintenance Committee (O & M)

Project Preparation Team (PPT)

Community Sub-project Implementation and Management Committee (CSPMIC)

Audit & Inventory Team (AIT)

Bids and Awards Committee (BAC)

Brgy. Treasurer Secretary Bookkeeper Project Implementation Team (PIT) Monitoring & Inspection Team (MIT)

Procurement Team (PT)

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.

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)

The Bids and Awards Committee (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 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.

1. 2. 3. 4. 5. 6.

Advertises and/or posts the invitation to bid Conducts pre-procurement and pre-bid conferences Determines eligibility of prospective bidders Receives bids Evaluate bids with the assistance of the TWG 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

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

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

For

Local Shopping Local Bidding Direct Contracting

Local Shopping Local Bidding Direct Contracting Community Force Account

Goods:

For

Works:

1. 2. 3. 4.

Local Shopping Local Bidding Direct Contracting Community Force Account

METHOD Local Bidding - Works - Goods Local Shopping - Works - Goods Direct Contracting - Works - Goods

THRESHOLD (PhP)

PRIOR REVIEW RPMO NPMO All except <2.5M >1M but <2.5M WB/ADB Above 2.5M Above 2.5M

1.25M & above 0.5M & above >0.5M but <1M

Below 1.25M Below 0.5M

>0.5M but <1.25M 0.5M but <1M

P250,000.0 Below P125,000.0 Below

ACT ACT Above 2.5M

Aggregated contracts 1M to 2.5M

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

Prepare Procurement Packages

PCPP POW

Voucher, Checks, Official Receipt

Delivery Receipts Inspection Report, Pictorials

Payment of Goods/Works
Minutes Of Meeting (date, mode)

Delivery of Goods/Works

Conduct PreProcurement Conference Serving of Canvass

Filled-up Canvass

Signed P.O.

Serving of Purchase Order

Sealed Canvass

Canvass opening
Abstract of Canvass
Minutes Of Meeting

Evaluation of Price offered

TWG Report Minutes Of Meeting

PERIOD OF ACTION OF PROCUREMENT ACTIVITIES (SHOPPING)

PERIODS

ACTIVITIES
Pre-procurement

DEADLINE

GOODS Minimum Max 1 CD 1 CD

WORKS Minimum Max 1 CD 1 CD

Serving of Canvass / w/in 7 days Invitation to Quote for works 5 days Contractors before bid Conference opening Submission and Opening of Bids Evaluation of Quotation Post Qualification Issuance of NOL and Notice to Award Signing of PO/ Prepn of Resolution to Award /Contract Preparation Issuance of PO/ Notice to proceed SUB-TOTAL

1 CD

2 CD

7 CD
1 CD

7 CD
1 CD

1 CD
1 CD

3 CD
1 CD

7 CD
1 CD 3 CD 3 CD

7 CD
3 CD 5 CD 7 CD

2 CD

2 CD

3 CD

5 CD

1 CD
7 CD 9 CD

1 CD
27 CD

2 CD
38 CD

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

PERIODS ACTIVITIES DEADLINE Min GOODS Max Min WORKS Max

SUB-TOTAL
Issuance of NOL

7 CD

9 CD

27 CD 5 (RPMO) 5 (NPMO) 15 (WB)

32 CD 3 CD 2 CD

38 CD 3-5 (RPMO)

SUB-TOTAL Issuance of Notice of Award Contract Preparation and Signing Issuance Notice Proceed of to

43 CD 7 CD 5 CD

1 CD

3 CD

TOTAL

38 CD

58 CD

Prepare/Review Procurement Packages

Voucher, Checks, Official Receipt PCPP POW Payment of Goods/Works

Delivery Receipts, Inspection Report, Pictorials, Testing Results

Conduct PreProcurement Conference

Final ITB Posting/ Publish Invitation To Bid

Minutes Of Meeting (date,mode) Draft Invitation To Bid (ITB) Sealed Bids Bid Security
Abstract Of Bids

Delivery of Goods/Works
Contract, NTP, Performance Bond

Signing of Contract
TWG Report BAC Resolution NOL issued Notice of Award

PreBid Conf.

Opening of Bids
Minutes Of Meeting Minutes Of Meeting

Evaluation Of Bids

Minutes Of Meeting

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

PERIODS ACTIVITIES Pre-procurement Advertisement/Post ing of Invitation Pre-bid Conference 7 CD before and Site visit deadline of DEADLINE Min 1 CD 7 CD 1 CD GOODS Max 1 CD 14 CD 1 CD WORKS Min 1 CD 7 CD 1 CD Max 1 CD 14 CD 1 CD

submission of bids
Issuance of bidding 2 weeks from 1st documents day of posting Submission and Opening of Bids 7 CD 1 CD 7 CD 1 CD 7 CD 1 CD 7 CD 7 CD

Bid Evaluation
Post Qualification SUB- T O T A L

1 CD
1 CD 19 CD

1 CD
3 CD 28 CD

1 CD
1 CD 19 CD

3 CD
5 CD 38 CD

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

PERIODS ACTIVITIES
SUB-T O T A L
Issuance of NOL DEADLINE

GOODS Min
19 CD
5 (RPMO) 5 (NPMO) 15 (WB) 24 CD 3 CD 2 CD

WORKS Max Min

19 CD
5 (RPMO) 5 (NPMO) 15 (WB) 24 CD 3 CD 2 CD

Max
38 CD
5 (RPMO) 10 (NPMO) 20 (WB) 48 CD 7 CD 5 CD

28 CD
5 (RPMO) 10 (NPMO) 20 (WB) 38 CD 7 CD 5 CD

SUB-T O T A L Issuance of Notice of Award Contract Preparation Signing

and
1 CD 3 CD 1 CD 3 CD

Issuance of Notice to Proceed

TOTAL

30 CD

53 CD

30 CD

53 CD

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

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 contractors B. 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 Activities Timeline to Responsible Complete the Volunteers Activity & Project (Inclusive Dates ) Staff Venue of meeting and Name of Resource Expected place/s to Potential Requireme Outputs/ Suppliers nt Remarks Conduct Procurement

1. Preparation of PCPP 2. Finalization of Packages & PCPP 3. Conduct of Preprocurement 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 Activities

Procurement Guidelines

Timeline to Venue of Complete Responsible meeting and the Activity Volunteers & place/s to (Inclusive Project Staff Conduct Dates ) Procurement

Name of Resource Potential Requirem Suppliers & ent Contractors

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: ________________________ Procurement Team Head

Approved by: Noted by: BSPMC Chairman Area Coordinator

 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
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