Overview of KC Community Procurement
Jan 21, 2016
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