KC - Procurement Manual May 2011

0 Community-Based Procurement Manual


PREFACE

This edition of the KALAHI-CIDSS Community Based Procurement Manual is designed to be a user-friendly and comprehensive guide. Major revisions aim to clarify some of the provisions and provide complete guidance to every 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 Management Committee (BSPMC) particularly the Procurement Team (PT) and the Bids and Awards Committee (BAC) as guide in their procurement activities. This manual will also be used by the Area/Municipal Coordinating Teams (A/MCTs) and Regional Project Management Teams (RPMTs) in providing Technical Assistance on Community Procurement to the BSPMC; likewise, external monitors in conducting fiduciary reviews. This edition has been made possible through the leadership and support of Assistant Secretary Camilo G. Gudmalin, Deputy National Project Director of KALAHI-CIDSS Project; Mr. Edgar G. Pato, National Project Manager; technical inputs from Engr. Benito Cesario Tingson, Chief Infrastructure Engineer, Engr. Abelardo Cea, Deputy NPMO Infra Engineer, and the contributions of all the Regional Community Infrastructure Specialsists (RCIS). The role of Engr. Alfredo D. Tucpi (KALAHI-CIDSS Procurement Specialist July 2006–15 May 2011), who was responsible for putting together the inputs from the various units, is also acknowledged. CORAZON JULIANO-SOLIMAN Secretary and National Project Director KALAHI-CIDSS Project 01 June 2011


TABLE OF CONTENTS DEFINITION OF TERMS 4-9 ABBREVIATIONS; ACRONYMS 10 CHAPTER 1: INTRODUCTION 11 Introduction 12 Scope, Coverage, and Application 12-13 Principles in Community-Based Procurement 13-14 CHAPTER 2: Possible Types of Community projects Requiring Procurement 15 2.1 Construction, repair and improvement 16 2.2 Common Service Facilities 16 2.3 Others 17

CHAPTER 3: PROCUREMENT POLICIES 18 CHAPTER 4: COMMUNITY CAPABILITY BUILDING ON PROCUREMENT 19 4.1 Orientation, Organization & Workshop 20 4.2 Skills Training & Preliminary Procurement 20 4.3 Coaching Jobs, Practicum 20 4.4 Community Procurement Technical Assistance 20 4.5 Procurement Monitoring of Red Flags 20 CHAPTER 5: PROCUREMENT ORGANIZATION AND FUNCTIONS 21 5.1 Procurement Team 22 5.2 Bids and Awards Committee 22 5.3 Functions of the BAC 23 CHAPTER 6: PROCUREMENT PROCESS 25 6.1 Procurement Planning 26 6.2 Presentation to the Barangay Assembly 32 6.3 Finalization of Planned Community Procurement Packaging 32 6.4 Implementation of the Planned Community Procurement Packaging 32 6.5 Monitoring Procurement Compliance 36 6.6 Billboards 39 CHAPTER 7: MODE OF IMPLEMENTATION 40 7.1 By Contract 41 7.2 By Community Force Account 41-42 CHAPTER 8: PROCUREMENT METHODS 43 8.1 Prior Review Requirements 44-46


CHAPTER 9: PROCUREMENT PROCEDURES BY METHODS 47 9.1 Local Shopping 48-59 9.2 Direct Contracting 60-65 9.3 Community Force Account 66-67 9.4 Local Bidding 68-85 CHAPTER 10: PROCUREMENT MONITORING 86 LIST OF ANNEXES INSTRUCTIONS TO BIDDERS 87-91 CONDITIONS OF CONTRACT 91-97 FORM OF BID 98 FORM OF CONTRACT AGREEMENT 99-101 BANK GUARANTEE FOR ADVANCE PAYMENT 102 G150 FORM OF BID SECURITY (BANK GUARANTEE) 103 EVALUATION FORM – PROCUREMENT OF WORKS 104 RESOLUTION TO AWARD 105 NOTICE OF AWARD 106 NOTICE TO COMMENCE 107 PERFORMANCE SECURITY (BANK GUARANTEE) 108 BIDDING DATA 109-110 CANVASS FORM FOR GOODS 111 ABSTRACT OF QUOTATION/CANVASS 112 PURCHASE ORDER 113 INVITATION TO QUOTE-FOR WORKS UNDER LOCAL SHOPPING 114-115 ABSTRACT OF QUOTATION FOR WORKS 116 INVITATION FOR DIRECT CONTRACTING FOR LABOR 117-118 DIRECT CONTRACT AGREEMENT FOR LABOR 119-120 INVITATION TO BID-FOR WORKS UNDER LOCAL BIDDING 121-122 INVITATION TO BID-FOR GOODS 123-124 ABSTRACT OF CANVASS FOR LOCAL SHOPPING 125 EMPLOYMENT RECORD SHEET 126 SUPPLEMENTAL AGREEMENTS (LS Goods for fuel only) 127 CONTRACT AGRREMENT (LS for Works – Fabrication Works) 128 CANVASS FORM FOR LEASE OF EQUIPMENT (Goods) 129-130 PURCHASE ORDER (For equipment services) 131 EQUIPMENT LEASE AGREEMENT (Works) 132-136 REQUEST FOR QUOTATION FOR TAF 137-138 SERVICE CONTRACT AGREEMENT 139-144 QUALIFICATION STANDARS FOR SERVICE PROVIDERS and TERMS OF REFERENCE 145-149 PASS/FAIL CHECKLIST 150 NOL REVIEW REPORT (LOCAL SHOPPING FOR WORKS and

BIDDING GOODS AND WORKS) 151-157 SUGGESTED FORMAT IN PREPARING POST-QUALIFICATION REPORT 158-159 PLANNED COMMUNITY PROCUREMENT PACKAGING FORM 160 SCHEDULE OF IN-KIND LOCAL COUNTERPART CONTRIBUTION 161 ACTUAL COMMUNITY PROCUREMENT PACKAGING 162 PROCUREMENT ACTION PLAN and FORM 164 ANNEX “A “ DIRECT CONTRACT AGREEMENT OF LABOR 165 BID BULLETIN SAMPLE FORMAT 166-167 ACKNOWLEDGMENT RECEIPT 168 SITE VISIT CERTIFICATE 169 CF PROCUREMENT RED FLAGS MONITORING FORMS 170


2-A Local Bidding for Goods 170-172 2-B Local Shopping for Goods 173-174 2-C Local Shopping for Works 176-178 2-D Local Bidding for Works 179-181 2-E Direct Contracting for Works 182-184 2-F Direct Contracting for Goods 185-187 RPMO No Objection Letter (Suggested Format) 188 DOCUMENTS FILING CHECKLISTS 1-A Community Force Account 190 1-B Direct Contracting of Works 191 1-C Local Shopping of Works 192 1-D Local Bidding of Goods 193 1-E Local Bidding of Works 194 1-F Direct Contracting of Goods 195 1-G Direct Shopping of Goods 196 CHAPTER 11: GUIDELINES AND CLARIFICATIONS 197 GUIDELINES ON THE USE OF DIRECT CONTRACTING OF LABOR 198-199 CLARIFICATION ON THE USE OF SPECIAL POWER OF ATTORNEY

(SPA) and SUB-CONTRACTING IN KALAHI-CIDSS: KKB PROJECT 200 REQUIREMENT FOR PHILIPPINE STANDARDS (PS) QUALITY

AND/OR SAFETY CERTIFICATION MARK OF CONSTRUCTION MATERIALS USED FOR COMMUNITY PROJECTS 201

CLARIFICATION ON THE METHOD OF PROCUREMENT TO BE USED FOR RENTAL AND PROCUREMENT OF HAND TOOLS FOR COMMUNITY PROJECTS 202

CLARIFICATION AND ENHANCEMENT ON THE PROCUREMENT METHOD FOR RENTAL OF EQUIPMENT USED IN COMMUNITY PROJECTS 203-205

GUIDELINES ON CONTRACT TERMINATION 205-210 GUIDELINES IN SUSPENSION / BLACKLISTING / DELISTING OF

CONTRACTORS, MANUFACTURERS, SUPPLIERS AND DISTRIBUTORS 211-220

GUIDELINES IN UDERTAKING VARIATION / CHANGE ORDER OF 219-222 COMMUNITY PROJECTS

GUIDELINES ON NEGOTIATED PROCUREMENT 223-225 GUIDELINES IN EVALUATING PERFORMANCE of SUPPLIERS and 226-230

CONTRACTORS GUIDELINES ON UNBALANCED QUOTATION/BIDS 231-234 GUIDELINES ON WARRANTY, LIABILITY and SANCTIONS in 235-237

KALAHI-CIDSS Procurement GUIDELINES: PROCUREMENT OPTIONS ON COMMUNITY PROJECTS 238

AFFECTED BY PRICE ESCALATION EVALUATION OF BIDS/QUOTATION USING EXCEL FORMAT 239-242


DEFINITION OF TERMS Abstract of Bids/Record of Bid Opening – The corresponding document prepared by the BAC after all bids have been received, opened, examined, evaluated and ranked. Advance payment – Refers to any payment made prior to the delivery and acceptance of Goods, Works, or Consulting Services. BAC – The Bids and Awards Committee. Bid (Bid proposal) – is a signed offer coming from a supplier/contractor interested to provide goods or undertake infrastructure work for the community. Bid Evaluation – The process of determining the Bidder with the Lowest Calculated and Responsive Bid/Quotation (LCRB/Q) or the Highest Rated Bid (HRB) in case of consultancy services. Bid Opening Date – The date specified in the Invitation to Bid (ITB) for the opening of bids. Bid Security- is required to ensure that the successful bidder shall, within five calendar

days from receipt of the Notice of Award, sign the contract with the BSPMC. It could be in the form of cash, check, bank draft, letter of credit or bank guarantee that serves as a guarantee that the successful bidder shall not default on his offer, and shall enter into contract with the BSPMC and furnish the performance security.

• The bid security shall be returned to the bidders only after the successful bidder has signed the Contract and posted the performance security, except if the bidder fails to comply with all the requirements and the bid is marked “failed”.

• Bidder, who wants to present cash as bid security, shall be instructed to deposit the amount to the community’s bank account and to attach the machine validated deposit slip to the bid documents to be placed in a sealed envelope.

Bid Validity – A period indicated in the bidding documents, but in no case shall exceed sixty (60) calendar days from the date of the opening of bids, wherein a Bid Security is considered valid. Bidder – An individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or other entity that submits a bid, such as agents, employees, and representatives. More specifically, a contractor, manufacturer, supplier, distributor and/or consultant competing for the award of a contract in any government procurement. Bidding Documents. – The documents issued by the BAC as the bases for bids, furnishing all information necessary for a prospective bidder to prepare a bid for the infrastructure projects, goods and/or consulting services required by the procuring entity. Blacklisting – To place on, or as if on, a list of persons or organizations that have incurred disapproval or suspicion or are to be boycotted or otherwise penalized.


Brand Name – A trade name or product name, which identifies a product as having been made by a particular manufacturer. Calculated bid price – The price of a bid, after taking into account minor arithmetical corrections to consider computational errors, omissions and discounts, if allowed. Collusion – An agreement between two or more persons, to commit acts to accomplish a fraudulent or deceitful purpose. Competitiveness– A principle in KC procurement that allows broad participation by eligible and qualified suppliers, contractors, consultants to put forward offers for a community project. 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 of information 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) informing them when and where the conference will be held. Conflict of Interest – a situation in which a public official's decisions are influenced by the official's personal interests. Consulting Services – refer to services provided by external technical service providers1

• A promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty.

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. Consolidated Blacklisting Report – A report issued by the GPPB that contains a list of people and/or organizations that are barred from participating in any Government procurement project. Contract – “a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.” Article 1305, New Civil Code, Republic Act No. 386

• An agreement, upon sufficient consideration, to do or not to do a particular thing.

• A promise enforceable by law. Contract Completion – Project sign-off or acceptance of the project/goods by the end-user. Contract Implementation – The execution of a contract, covering the following milestones: effectivity of the contract; contractor’s performance of his contractual obligations; procuring entity’s performance of its contractual obligations, as specified in

1 Service providers referred to in these guidelines pertain to suppliers, contractors and consultants.


the Contract; final acceptance or project sign-off; all other related activities; and payment by the Procuring Entity. Contractor – One who undertakes to perform a work or service, or supply goods for a public 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 to influence the action of a public official in the procurement process or in contract execution. Compare fraudulent practice. Cost Recovery Component – Direct and indirect costs accounted for in determining the price of Bidding Documents to be sold to interested suppliers/contractors. Defects Liability Period - refers to the period from the date of issuance of Certificate of

Completion of the works as certified by the BSPMC Chairman up to the date within which, the contractor shall still be liable for defects, shrinkage or other faults as determined 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 the completed project facility. Direct Costs - Costs directly incurred such as development, reproduction, and communication costs allocated to the bidding activity. Disclosure – The act of disclosing, uncovering, or revealing. Disqualification – The act of barring a bidder from further participation in the procurement at hand, even if, in some instances, it has initially been declared eligible or post-qualified. Eligible Bidder – A contractor, manufacturer, supplier, distributor or consultant who meets all the eligibility requirements issued by the BAC. Eligibility – Refers to the status of a Bidder in relation to its legal, technical and financial competence to comply with the requirements of the contract to be bid, as shown by eligibility documents submitted to and checked by the BAC. Eligibility Requirements - refer to qualifications set by the BAC for participating bidders.

Some examples of qualifications are: • Suppliers must have a SEC Registration, mayor’s permit or municipal

license, or the Cooperative Development Authority, if a cooperative; • Contractors for works must be either a duly licensed Filipino citizen or a

sole proprietorship, or a duly registered partnership or corporation; Estimated Budget for the Contract – The budget for the contract duly approved by the BSPMC which will serve as the agency estimate. Evaluated Bid - refers to the corrected bid after evaluation has been completed. Force Majeure – see Fortuitous events. Fortuitous events/Force majeure – An event which could not be foreseen, or which though foreseen, was inevitable.


Fraudulent practice – Misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the BSPMC. 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.

Incidental Services – services supplementary to the supply of the Goods, such as transportation and insurance; installation, provision of technical assistance, training, and other such obligations of the Supplier covered under the contract or purchase order. Indirect Costs - Costs indirectly incurred such as overhead, supervision, and administrative costs allocated to the bidding activity. Compare Direct Costs. Ineligible Bidder – A contractor, manufacturer, supplier, distributor or consultant who fails to 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 information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government. Inspection – Examination and/or testing of merchandise to determine whether it has been received in the proper quantity and condition and to verify that it conforms to the applicable specifications. Latent Defect – A defect that is not apparent to the buyer by reasonable observation. A latent defect is “hidden” or one that is not immediately determinable. Liquidated Damages – Damages agreed upon by the parties to a contract, to be paid in case of breach thereof. Minor Deviations – are deviations in the bid that can be corrected. Some examples are

the following: • Computational error such as when the total amount is not equal to the unit

cost times the number of units. In this case, it is the unit cost, which should be taken as the correct amount, and the total price should be corrected.

• Discounts which do not have pre-conditions should be applied to the total price to get the net amount

• Minor deviations shall be corrected and adjustments shall be computed to determine the calculated price.

Major Deviations - are deviations which affect in a substantial way the scope, quality or

performance of the works; which limits the community’s rights under the contract; or one that if corrected would affect unfairly the comparative position of other bidders.

The following are examples:

• Bid contains a different design that does not respond to the contract plans and specifications;


• Stipulates price adjustment when bid price should be fixed given the short duration of the contract;

• Proposed timeframe of implementation does not conform to the required period

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

Motion for Reconsideration – In procurement, it is an application made to the BAC for the purpose of obtaining a rule or order setting aside a previous decision. Negotiated Procurement – An alternative method of procurement of goods, infrastructure projects and consulting services, whereby the BSPMC directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant. Notice of Award – The document issued by the BSPMC to the bidder to whom the contract is awarded. Notice of Post-qualification – The document issued by the BAC to the bidder with LCB or HRB whose bid is found responsive subjected for post-qualification evaluation. Notice to Proceed – The document issued by the BSPMC to the winning bidder to proceed with 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 apparent or obvious defect. Performance Security – A security posted by the winning bidder to guarantee the faithful performance by the same of its obligations under the contract prepared in accordance with the bidding documents. Post-qualification – The process of validating and verifying the documents, information and statements made in the Eligibility Documents by the Bidder who submitted the Lowest Calculated and Responsive Bid/Quotation, as well as ascertaining the said Bidder’s compliance with the legal, financial and technical requirements of the bid. Post-qualification Report – The report prepared by the TWG containing the findings/results of the post-qualification conducted on the bidder with the LCRB or HRB, as the case may be. Pre-bid Conference – is the forum where the Procuring Entity’s representatives and the Prospective Bidders discuss the different aspects of the procurement at hand. Pre-procurement Conference – is the forum called by the BAC for procurements undertaken through public bidding, where all officials involved in the procurement meet and discuss all aspects of the transaction, including the technical specifications, the Estimated Budget for the Contract, the applicability and appropriateness of the recommended method of procurement and the related milestones, the bidding documents, availability of the pertinent budget release for the project / contract, among others. Procurement – The acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the BSPMC.


Project Implementation Unit – The unit created through an Executive Order that is primarily responsible for implementing and managing a community project. Procurement Package – is a group of similar goods that can be purchased from one supplier 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 be done, or already performed, whereby he expresses his dissent or disapproval, or affirms the act against his will. The object of such declaration is usually to save some right which would be lost to him if his implied anent could be made nil, or to exonerate himself from some responsibility which would attach to him unless he express negatively his assent. (Black’s Law Dictionary, 5th Ed.) Reproduction cost – labor, supplies and equipment rental costs incurred in the reproduction of the documents e.g. photocopying, blue printing, etc… Request for Clarification – A written request submitted by the bidder to the BAC, asking the latter to clarify a particular provision of the Bidding Documents. Request for Proposal – Bidding document for Consulting Services. Also called Request for Quotation. Responsive bid – is a solicited bid is determined to be in substantial conformance with the conditions, completion or delivery requirements, and specifications detailed in the invitation-to-bid (ITB), request for proposals (RFP), request for quotations (RFQ), or request for tenders. Retention Money - refers to the amount retained from progress payment to cover

uncorrected discovered defects and third party liabilities. This is equivalent to 10% of all progress payments. Upon issuance of Certificate of Completion by the BSPMC through the recommendation of the Project Supervisor, 100% of the retention money is returned to the contractor. It is understood that the Contractor is still liable to BSPMC under Defects Liability Period provision of the contract. For performance guarantees in the form of cash for contracts that are nearing thee end of KALAHI-CIDSS project, such guarantee shall be replaced with a bank guarantee from a reputable bank.

Spare parts – Refer to extra components, equipment, tools, instruments or parts of machinery or apparatus that replace the ones that are damaged or worn out. Specification - A description of what the purchaser requires and what a bidder must offer.

- A detailed description of design criteria for a piece of work or material.

Splitting of Contracts/Packages – is the act of dividing or breaking up of contracts into smaller quantities and amounts, or dividing contract implementation into sub-contracts but it can be undertaken/procured as one contract to circumvent or subvert the procurement method. Standard – The established and fixed measure used in assessing quality or performance. Subcontractor – One who takes a specific part of the work undertaken by the principal contractor. (Black’s Law Dictionary, 5th Ed.) Submitted bid price – The bid price as indicated in the financial proposal submitted by the bidder. Supplemental/Bid bulletin – A notice issued by the Procuring Entity to Prospective Bidders with respect to any clarifications or modifications in the Bidding Documents, including those affecting the technical specifications, eligibility requirements, procurement schedule, and other similar matters. 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 that it will correct any manufacturing defects of the goods procured by the BSPMC.

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ACRONYMS; ABBREVIATIONS

AC Area Coordinator ACT Area Coordinating Team AIT Audit and Inventory Team BA Barangay Assembly BAC Bid and Award Committee BDC Barangay Development Council BSPMC Barangay Community Project Committee CC Conditions of Contract CD Calendar Days DAC Deputy Area Coordinator DSWD Department of Social Welfare and Development CERS Community Employment Record Sheet CF Community Facilitators CFA Community Force Account CSO Civil Society Organization DA Department of Agriculture DAC Deputy Area Coordinator DC Direct Contracting DENR Department of Environment and Natural Resources DPWH Department of Public Works and Highways CPP Community Procurement Plan DC Direct Contracting GOP Government of the Philippines KALAHI- CIDSS Kapit-bisig Laban sa Kahirapan-Comprehensive and Integrated

Delivery of Social Services KKB Kapangyarihan at Kaunlaran sa Barangay LCCQ Lowest Calculated and Complying Quotation LCRB Lowest Calculated and Responsive Bid LGU Local Government Unit LS Local Shopping LB Local Bidding MAO Municipal Agricultural Officer MCA-P Millennium Challenge Account-Philippines MCC Millennium Challenge Corporation MIT Monitoring and Implementation Team NOA Notice of Award NOL No Objection Letter NPMO National Project Management Office NPMT National Project Management Team NRM Natural Resources Management NTP Notice to Proceed OR Official Receipt PIT Project Implementation Team PO Purchase Order POs Peoples Organizations POW Program of Works PT Procurement Team TWG Technical Working Group RIE Regional Infrastructure Engineer RPM Regional Project Manager RPMO Regional Project Management Office RTA Resolution to Award WB World Bank WD Working Days


CHAPTER 1 | INTRODUCTION Scope, Coverage, and Application Principles in Community-Based Procurement


1. Introduction

Procurement

is one of the most critical activities in community project implementation. It refers to the purchase of all the goods, supplies, and materials needed by the community project. It also refers to the contracting of the entire or a portion of the works in an infrastructure community project.

It is the most sensitive because it involves disbursement of funds. Since the Kalahi-CIDSS Project (KC Project) aims to empower communities by giving them control over the resources and implementation of community projectss, the communities through the Barangay Community Project Management Committee (BSPMC) is responsible for procurement. They have the authority to make decisions but they are also accountable for ensuring the quality of the goods and services are based on the technical specifications.

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

2. Scope, Coverage, and Application

2.1. Coverage The manual will be used for all procurement activities by the BSPMC for the KALAHI-CIDSS project and may be used for projects funded by other funding donors following the projects processes. 2.2. Scope The provisions shall apply to the procurement of goods, works, and consulting services whether the funds are local counterparts or from the grant. The provisions of this manual will only cover approved procurement packages based on the approved Planned Community Procurement Package (PCPP) and will not cover the acquisition of right-of-way site or location of infrastructure projects and leasing of government-owned facilities.


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 technical service providers

, 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.

2. Works – refer to civil/infrastructure and all types of physical works such as construction, improvement, upgrading, roads and bridges, irrigation, flood control and drainage, water supply, electrification facilities, buildings, fabrication of equipment and structural parts, Natural Resources Management (NRM) activities, solid waste management system and physical works that require labor.

3

3. Principles in Community-Based Procurement

Fairness (Fair dealing) - it is competitive by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public procurement. Service providers should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. A competitive procurement process treats service providers equitably and provides fair grounds for competition among themselves, thereby ensuring that no single service provider significantly influences the outcome of the procurement. Effectiveness – it should be simple and applicable to the community and the processes should be carried out as cost effective as possible.

or professional expertise that are outside 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.

Economy – The BSPMC shall use the Lowest Calculated and Responsive Bid4 / Quotation5

Transparency - transactions during procurement process and implementation must be transparent. There should be openness and clarity on procurement policy and its delivery. Toward this end, posting in the regional newspapers (for bidding) and in conspicuous places within the Region, Province, Municipality or Barangay, in television or radio stations or any other possible means, as the case maybe, is required for all procurements. Moreover, the BSPMC-BAC must invite the Technical

and the most advantageous to the BSPMC as criteria for selection of service providers.

2 When leasing for equipment, the nature of the activities will define if it is categorized as goods or works. Categorization and procedures are provided in the guidelines for Lease of Equipment to further understand the details when renting/leasing equipment. 3 Service providers referred to in this manual pertain to suppliers, contractors and consultants. 4 The term Bid applies to thresholds under local bidding. 5 The term Quotation applies to thresholds under local shopping.


Working Group (TWG) to provide technical assistance. The BAC shall also invite representatives from the LGU COA in the Municipality, Civil Society Organizations, local government officials, Area Coordinator, Deputy Area Coordinator, Head of the Barangay Audit and Inventory Committee and other interested members to observe any or all stages of the procurement process. Finally, each procurement transaction must be properly documented and such records must be maintained and made available at the BSPMC office/s. Accountability – all officials directly or indirectly involved in the procurement process as well as in the implementation of the contracts and the private parties when warranted by circumstances, investigated and held liable for their actions thereto.


CHAPTER 2 | POSSIBLE TYPES OF COMMUNITY PROJECTS REQUIRING PROCUREMENT Construction, repair and improvement Common Service Facilities Others


The following are some examples of community projects which would involve procurement.

2.1 Construction, repair and improvement / upgrading of small scale infrastructure

1. Construction/Improvement/Upgrading of Barangay roads and bridges 2. Construction of Multi-purpose buildings 3. Post harvest facilities 4. Small-scale communal irrigation projects 5. Classrooms for basic education

(Elementary and High School) 6. Sanitation facilities (toilets) 7. Barangay Health Station 8. Day care centers 9. Flood control facilities 10. Domestic water supply systems

a. Level I Water System b. Level II Water System

2.2 Common Service Facilities

1. Fabrication works 2. Manufacturing / Processing facilities (e.g. meat, vegetables, etc) 3. Equipment for common facilities for production, harvest, drying, processing,

storage

2.3 Others

1. All other approved community projects not mentioned above, provided it is not within the negative list6

.

6 Negative list includes acquisition of land; building or repair of government offices, meeting halls and places of worship; environmentally hazardous materials, such as, chainsaws, explosives, pesticides, herbicides, insecticides, asbestos and other potentially dangerous materials; international travel; and maintenance and operation of infrastructure built from project funds; assistance to, or training of, the military, police, national guard, or other quasi-military organization or unit; and to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions, to pay for the performance of involuntary sterilizations as a method of family planning or to coerce or provide any financial incentive to any person to undergo sterilizations; or any activity or funds relating to trafficking of person/s. Note: Any proposed projects intended to benefit commercial logging, (provided this shall not include tree removal incidental to the project), must be sent to the funding donor for review prior to project approval.


CHAPTER 3 | PROCUREMENT POLICIES

3.1 Procurement for the community project shall be the responsibility of the

community through the Barangay Community Project Management Committee (BSPMC). A Procurement Team composed of at least three community volunteers elected by the barangay assembly shall assist the BSPMC.

3.2 Transparency should be practiced in all stages of the procurement process. From the public announcement of invitation to quote or to bid, awarding of contracts, contract implementation to payment to suppliers, contractors and local workers, the BSPMC 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 the criterion for selection of suppliers and contractors. This criterion shall be publicly announced to the community and to all interested parties.

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

3.5 “Section 4 of 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.”

For MCC: The Compact Agreement signed between the funding donor (for MCC) and the Government of the Philippines provides that “Funding will be granted to DSWD to plan and implement community-chosen sub-projects in accordance with the Kalahi-CIDSS Project manuals approved by MCC.” Thus, the procurement procedures provided for in this Community Procurement Manual, as acceptable to MCC shall be followed.

3.6 Participating communities which violate the prescribed procurement policies, methods and procedures are liable for sanctions and will be penalized. Procurement that does not follow guidelines will be disallowed and grant funds used will be returned to the KC Project. Depending on the degree of violation, the sanctions can range from disallowance, suspension of further fund releases, and withdrawal of the community project. If there are anomalous transactions, persons responsible will be charged with civil and/or criminal cases.

3.7 Blacklisted and suspended suppliers, contractors and consultants by private and Government entities shall not be allowed to participate in KALAHI-CIDSS procurement.

3.8 For MCC-funded subproject/s: The Millennium Challenge Account-Philippines

must review the following contracts: (i) every procurement (for goods or works) amounting to PhP 2,500,000 or higher; and (ii) fifty (50) randomly-picked (by MCA-P) procurements from or within the whole area of KC-MCC coverage per cycle, regardless of amount. Where applicable, this review may take place at the same time as the prior review requirements listed in section 8 of this manual. Other procedures for eligibility verification, including review against the blacklist maintained by the Philippine Contractors Accreditation Board (“PCAB”) can be used.


CHAPTER 4 | COMMUNITY CAPABILITY BUILDING ON PROCUREMENT Orientation, Organization & Workshop Skills Training & Preliminary Procurement

Coaching Jobs, Practicum Community Procurement Technical Assistance Procurement Monitoring of Red Flags


4.1 Orientation, Organization and Workshop

Prior to the Municipal Inter-Barangay Forum (MIBF), orientation, organization and

workshop on procurement are given to community volunteers, to enable them to package and plan community procurement. The expected output of the workshop is the 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 Area Coordinator (DAC) as the resource person.

4.3 Job Coaching and Practicum

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

4.4 Community Procurement Technical Assistance

During the course of the implementation of the community project, the Deputy Area Coordinator (DAC) should provide technical assistance to the community volunteers relative to the procurement and contract management.

4.5 Procurement Monitoring Of Red Flags

The community volunteers will encounter red flag of abnormalities in the conduct of procurement activities. These red flags will provide a signal for the Area/Municipal Coordinating Team (A/MCT) and Regional Project Management Team (RPMT) to intensify supervision and undertake corrective measures. The community volunteers should be briefed regarding the Community Facilitator’s Red Flag Procurement Monitoring Form7

7 The Community Facilitator’s Red Flag Procurement Monitoring Form can be found in the procurement manual’s annexes.

.


CHAPTER 5 | PROCUREMENT ORGANIZATION AND FUNCTIONS OF THE PROCUREMENT TEAM Procurement Team Bids and Awards Committee Functions of the BAC


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

5.1 Procurement Team

The Barangay Assembly (BA) members elect at least three members of the Procurement Team during the Second Barangay Assembly (2nd BA).

While the membership is elected8

Specific Functions of the Project Procurement Team • Prepares procurement documents • Acts as Canvassers • Prepares and finalizes Planned Community Procurement Packaging (PCPP) & Community

Employment Record Sheet (CERS) with the assistance of DAC • Assists in the presentation of PCPP and CERS during Barangay Assembly • Receives and records bids/quotations • Acts as Secretariat to the Bids and Awards Committee • Assists in updating the status of ACPP and CERS

, the minimum qualification should be at least high school level or graduate. However, if there are elementary graduates that have experience in local procurement, they are also welcome provided they are dedicated to do the tasks. It is clarified that while the membership is elected, it does not mean that any member of the community can be a PT member. Furthermore, it is clarified that the selection with minimum qualification is not defeating the principle of inclusion but rather ensuring that fiduciary requirements are complied in accordance with this manual. The Procurement Team shall be in charge of activities required to facilitate acquisition of all supplies, materials, equipment, labor from suppliers and contractors.

• Prepares evaluation report of performance of suppliers/contractors

8 Elected in this statement to mean chosen from at least high school level or graduate.

BARANGAY SUBBARANGAY SUB--PROJECT ORGANIZATION PROJECT ORGANIZATION STRUCTURESTRUCTUREB arang ay As s embly

B a ranga y Deve lopment C ouncil

Brg y. Re pres e ntation

T e am (B RT )

P roj. P repa ra tion T ea m (P P T )

B arang ay S ub-P rojec t Mg mt. C om. (B S P MC )

A udit & Inve ntory

T e am (A IT )

Bids and A w ards

C omm ittee (BA C )

S ec reta ry

B rg y. T rea surer

B ookkeeper

P roc urementT ea m (P T )

P rojec tImplementa tionT ea m (P IT )

Monitoring &Inspec tion Tea m(MIT )

O peration & Maintenanc e C ommittee

(O & M)


To be effective in their work, the Barangay Community Project Management Committee Members and the Procurement Team members should undergo the following:

1. Comprehensive Orientation Workshop on the Kalahi-CIDSS 2. 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 and monitor 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 use the 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 Treasurer 2. Chairperson of the Community Project Preparation Committee 3. One member to be elected by BSPMC Executive Committee9

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

The BAC members shall elect the BAC chairperson. The BSPMC Chairperson, as approving authority on all transactions, is disqualified to be a BAC member and the Barangay Treasurer is disqualified to head the BAC. The LGU COA Auditor, Barangay Captain, Area Coordinator, Deputy Engineer and the Barangay Audit and Inventory Committee Head will be invited to sit as non-voting members. Other interested parties are also encouraged to observe the BAC proceedings.

For the procurement of Consultancy

services or service provider chargeable to the Technical Assistance Fund (TAF) especially the new municipalities where no established BSPMC composition yet, the BAC will be coming from the lead barangay comprising of the Treasurer, Project Preparation team (PPT) Chairperson and the Barangay Representation Team (BRT) Chairperson. A Technical Working Group (TWG) shall be formed with the assistance of the Area Coordinating Team. The TWG shall assist the BAC in bid evaluation and shall be composed of the following:

9 The BSPMC executive committee is composed of the BSPMC chairperson and heads of teams under the BSPMC.


1. Area Coordinator or Deputy Area Coordinator 2. Municipal Engineer/Municipal Agricultural Officer/CENRO/MENRO (depends on

the type of contract) 3. Supervising Community Project Engineer/Leadman/Foreman (if municipal

engineer is not available) 4. Roving Bookkeeper 5. 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 bid 2. Conducts pre-procurement and pre-bid conferences 3. Determines eligibility of prospective bidders 4. Receives bids 5. Conducts the evaluation of bids with assistance of the TWG 6. Undertakes the post-qualification proceedings, including forwarding to the ACT

TWG the contractors/suppliers for eligibility verification10

7. Recommends the award of contract to BSPMC Chairperson. When 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.

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

8. 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 BAC shall also be responsible for ensuring that the BSPMC follows the standards outlined in this Community-Based Procurement Manual. The BSPMC 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.

10 Eligibility verification follows the existing KALAHI-CIDSS Project. This mean that Contractors or Suppliers and Service Providers possessed the capacity to perform or deliver the Contract/s.


CHAPTER 6 | PROCUREMENT PROCESS Procurement Planning Presentation to the Barangay Assembly Finalization of Planned Community Procurement Packaging Implementation of the Planned Community Procurement Packaging Monitoring Procurement Compliance Billboards


6.1 Procurement Planning

Procurement Planning starts after the Community Project Preparation Committee has completed the detailed project proposal and budget, complete with technical specifications, drawings and bill of materials (for infra community projects). The BSPMC shall prepare a procurement package called Planned Community Procurement Package (PCPP). Procurement package

A procurement action plan (PAP) shall also be prepared indicating the timeline to complete the activity, responsible volunteers and project staff, venue of meeting and place/s to conduct procurement, packages to be procured, and list of potential service 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 implemented by a single contractor or a an activity that can be performed by a consultant.

11

Prior to the conduct of actual procurement, the PCPP must be approved by the RPMO. The A/MCT shall provide a copy of the PCPP to the Regional Community Infrastructure Specialist (RCIS) for review. The A/MCT can submit the PCPP electronically

. Procurement planning ensures that the overall goal of a particular community project will be achieved effectively and efficiently. Through procurement plan, the BSPMC is able to effectively manage and track procurement all the way to contract implementation. The procurement will allow the BSPMC to be cost efficient in its procurement. Proper planning ensures that only goods, infrastructure projects, and consulting services which have been included in the approved PCPP. Procurement planning should be done within the approved estimated budget.

12

• Meet with the Project Implementation Team (PIT) to discuss the different items that needs to be procured and their technical specifications and financial requirements.

to the RCIS for online review, comments and approval. Approval and/or comments should be provided to the ACT before the conduct of the procurement conference. The following are the activities of the Procurement Team:

• Group the items to be procured into procurement packages.

11 Service providers pertain to suppliers, contractors or individual or firms providing services to the BSPMC. 12 Either scanned copy for handwritten PCPPs or electronic copy. For Shopping and Bidding for works the POW must also be submitted as basis for review. The electronic means could save use of papers.


Sample Cases in Packaging Case 1: Hardware materials such as Cement, reinforcing steel bars, tie wires,

common wire nails and other hardware materials must be grouped as one package. Aggregates such as sand, gravel and boulders must be in a separate package.

Example: Prepare a procurement package of the materials needed for the community 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. Aggregate Base Coarse 40 Cu.M. Sand 30 Cu.M. Boulders 20 Cu.M.

Package 2:

Portland Cement 100 Bags 16 mm diameter RSB x 6M 110 Pieces 10 mm diameter RSB x 6M 150 Pieces 1/4" thick Ordinary Plywood 12 Pieces 3 inches CWN 15 Kilos


Package 3:

2"x3"x10' Coco Lumber 500 Bd. Ft. In areas where all the required materials can be taken from one supplier or if all suppliers in the locality can supply all the materials needed thus, package it as one.

Case 2: For works, the first step is to define the items that can be undertaken by community force account (CFA) and have it packaged as separate package. For items that require heavy equipment, such items must be packaged separately.

Example: Prepare a package for a road community project with common work items such as items 100 (Clearing and Grubbing), 105 (Sub-grade Preparation), Item 200 (Aggregate Sub-Base Coarse), Item 201 (Aggregate Base Coarse), 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 by one contractor.

Package 1:

Option 2:

PACKAGE 1: (It can be Shopping or Bidding depending on the threshold)

Item 105 Sub-grade Preparation

Item 200 Aggregate Sub-Base

Item 201 Aggregate Base Coarse

PACKAGE 2: CFA Item 311 300 Linear Meter (PCCP)

PACKAGE 3: CFA Item 500 RCPC (0.61M diameter)

PACKAGE 4: CFA Item 505 Grouted Riprap Notes: 1. This is a combined method of procurement. Items 105, 200 and 201

are mechanized so it will be undertaken by contract. Items 311, 500 and 505 were separated since it can be undertaken by CFA with 1 or 2 Pakyaw groups.

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


2. Breaking of packages in this particular case using combined method of procurement is not considered splitting since the purpose of undertaking the community project by contract and force account was based on the capacity of the community to implement it. Moreover, majority of the community can participate in the implementation and procurement process.

The procurement packages should consider the implementation schedule and the releases of Grant Funds by tranche and local counterpart. The work items should be packaged into one. Procurement Team must observe the approved threshold for the procurement.

The project does not allow splitting of goods and items of works. However, for selected 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 smaller quantities and amounts, or dividing contract implementation into sub-contracts; but it can be undertaken/procured as one contract to circumvent or subvert the procurement method. Case 1: If the goods to be acquired can be procured in the Municipality and the

method requires local bidding since it is within the threshold of bidding but the contract package were divided into several packages to evade the “No-Objection-Letter” (NOL) requirement from the National Project Management 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. 941,219.78 Contract Amount = PhP. 940,219.78

Package 2:

Item 105 Sub-grade Preparation Item 200 Aggregate Sub-Base Item 201 Aggregate Base Coarse Item 300 Surfacing Item 500 (1) - 0.60M diameter RCPC Item 505-Grouted Riprap Estimated Budget for the Package : PhP. 501,434.02 Contract Amount: PhP. 501,434.00

Total Amount of Contracts= PhP.1, 442,653.80.

Note: Obviously, the two packages can be combined but it was broken

into 2 packages to evade bidding. Case 2: In cases of perishable goods like cement that are intended for different

items of works and the community project requires bulk purchase but it is not realistic to deliver in the barangay given the lack of available


storage and the distance as locations are in far flung areas, the community can break the packaging for cement into several package depending on the condition of the area to avoid spoilage. Likewise, for fuel and oil, if the conditions of the contract agreement do not apply to the condition of the area, several packages can be made for fuel and oil.

Splitting under the KALAHI-CIDSS procurement guidelines depends on the purpose for which the contract is divided. If the purpose for the division of the contract/packages into artificial phases or subcontracts is to circumvent or evade the mandatory requirements as per Loan Agreement, the BSPMC is guilty of contract splitting thus, sanctions shall be imposed as per section 3.6 of the Procurement Policies. The service provider involved in the preparation must ensure proper packaging to avoid such sanctions.

1. Conduct resource assessment to find out which of the items are available within

the barangay or within the municipality. They can visit the town’s commercial center and check for possible suppliers. If not available within the municipality, they inquire for other possible sources in the areas near the municipality or any area within the province. They can also refer to the ACT and RPMT inventory of resource institutions, TA providers and suppliers. The Officer may already have a list of possible suppliers and the prevailing prices.

2. Review the Planned Community Procurement Packaging including the

Community Employment Record in consultation with the Project Preparation Team. The Department of Social Welfare and Development (DSWD) will ensure that Deputy Area Coordinator (DAC) assesses the overall feasibility of municipal and other counterpart 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 to verify actual delivery against commitment. They will present this to the community during the fifth barangay assembly. The Planned Community Procurement Packaging will contain the following information:

A. For Community Projects to be Executed Under Community Force

Account (CFA) Mode

• Name of Community Project and Total Estimated Cost • Community Project Duration • LCC: In Cash, In kind. • Package Number • Package Item • Procurement Method • Estimated Cost: 1st Tranche, 2nd Tranche, 3rd Tranche • Propose Implementation Schedule

B. Community Projects to be Executed Under Contract

• Contracting and implementation duration. • Duration the First Tranche will last? Second? Third?

During updating of status, the date of actual request and date funds received must be indicated in the Actual Community Procurement Packaging.

3. Update the Actual Community Procurement Packaging.


Writing the Technical Specifications, Scope of Work and Terms of Reference

The Technical Specifications (for Procurement of Goods), Scope of Works (for Infrastructure Projects) or Terms of Reference (for Consulting Services) shall be considered. Specification - A detailed description of design criteria for a piece of work or material. Types of Specifications to be considered:

1. Technical Specifications - Is the document that provides the detailed description of the

deliverables of the Supplier, Contractor or Consultant. - Describes the physical characteristics of the material or product

being purchased, such as dimensions, grades of materials, physical properties, color, finish, and any other data that defines an acceptable 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 than the method by which it is to be accomplished; do not limit the supplier/contractor to providing specific solution, thus enabling the supplier/contractor to create the best possible solution; used to solicit suppliers’/contractors’ proposals for further evaluation by the BSPMC when a specific solution is not known. – (Definition from the Philippine Institute of Supply Management-PISM)

Examples: Works: Equipment that has capacity to excavate 360 cubic meters per day - the contractor will provide either Backhoe or Bulldozer. For Goods: e.g. Compact bulb that can last for 1000 hours.

3. Performance Specifications

- describes the parameters of actual performance the item or service must meet; interested in results rather than method; can be described by a virtually unlimited choice of criteria and must be


capable of being expressed by some clearly stated metric. Example: 1. Rice Mill – must mill 20-30 Tons per day; 2. One (1)- Bagger Concrete Mixer that can continuously mix 90 bags per day.

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

Developing Standards: What are the considerations in setting the standards and technical specifications?

1. The standards and technical specifications quoted in procurement documents should promote the broadest possible competition, while assuring the critical performance or other requirements for the goods and/or works under procurement;

2. The BSPMC should specify accepted standards based on the Department

of Public Works and Highways (DPWH) with which the equipment or materials or workmanship should comply, except if such standard/s are unavailable or inappropriate, may be specified; and,

3. the procurement documents should state that equipment, material or

workmanship meeting other standards, which promise at least substantial equivalent, should also be accepted.

The Use of Brand Name - Use of Brand Name/s is not allowed as it limits competition and thus, increases

likelihood 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 brand name.

6.2 Presentation to the Barangay Assembly The Procurement Team Head or the BSPMC Chairperson presents the Planned Community Procurement Packaging to the community during the fifth BA. This is part of the presentation of the detailed community project proposal prior to its submission to the MIAC for Technical Review. This is also the same venue where the community members finalize their decision on local counterpart contribution. It would be very helpful if representatives of the Municipal LGU, such as the Municipal Engineer and Municipal Treasurer and other LGU technical staff who can provide technical assistance are invited to this presentation.

The Presentation targets to achieve the following:

1. The community should be able to identify which of the locally available items

can form part of the local contribution or can be accessed from the LGU, through the information of the Municipal Engineer and the Municipal Treasurer. (This would be the basis of the negotiation with the Mayor and the Municipal Council by the BSPMC and the Area Coordinating Team Leader.)


2. Draw out suggestions from the barangay members of possible suppliers and contractors, which can be added to the list prepared by the Procurement Team.

All issues raised and agreements reached should be reflected in the minutes of the Assembly Meeting. The Procurement Team should refer to this when finalizing the Planned Community Procurement Packaging and Community Employment Record.

6.3 Finalization of the Planned Community Procurement Packaging and Community Employment Record 1. Indicate items in the procurement packages included in the draft but which have

been agreed to form part of the community or LGU’s local contribution in kind or in cash.

2. Submit one copy of the final Planned Community Procurement Packaging and

Community Employment Record to the BSPMC ExeCOM and engineers for review. Once approved and signed by the BSPMC Chairperson, these shall form part of the documents attached to the community’s final community project proposal for submission to the MIBF. The Area Coordinating Team will retain a photocopy of the 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

Planned Community Procurement Packaging as guide. This is important to DSWD so it can have an accurate forecast of the funds flow.

4. The A/MCT-DAC can now prepare a consolidated monthly a disbursement

schedule for all Community Projects for the municipality. This will form part of their 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 in coordination with the Community Project Implementation Team. It is clarified that the 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 barangay volunteers a skills enhancement training on Community Finance, Community Procurement and Basic Community Infrastructure.

GUIDES IN FILLING UP THE PLANNED COMMUNITY PROCUREMENT PACKAGE (PCPP) References and documents at hand:

a. Program of works with detailed estimates and bill of materials, Construction and Schedule (Gantt or Bar Chart)


b. Manpower and equipment capability outputs c. Construction method d. Inventory of possible contractors for works e. Inventory of possible suppliers in the area (to include inventory available

materials they can supply) f. Community Employment Record Sheet (for Labor), Local Counterpart

Contribution Plan g. Certifications of local counterpart contribution/s (LCC)

Steps in Preparing the PCPP:

1. Based on the references and definition, the first step is to review the proposed construction method and match with the Gantt chart or work schedule. List down the subsidiary13

Implementation schedules should be a major consideration in preparing the PCPP. The implementation schedule will guide the programmer and volunteers in determining what applicable tranche will be requested. The release of the local counterpart contribution (LCC) should also be a major consideration in preparing the PCPP.

work items to complete the pay item and identify the required materials needed based on the detailed estimates and bill of materials.

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

3. Once it was decided that the works items listed on the initial months can trigger

for the requests of next tranches, start preparing the procurement packages.

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

For Works: As a general rule, group the works that can be performed or implemented by a single contractor and group items of works that can be undertaken by community force account. Based on the foregoing, the best way is to determine the items that can be undertaken by community force account (CFA) and have it packaged as separate package. If the community has no capacity to undertake any of the items of works as the works requires mechanized equipment and specialized skills, all the items must be packaged into one and undertake it by contract.

4. Once you have already identified the type of materials needed per package, review the implementation schedule/Bar Chart, manpower capability output and determine the required quantities of construction materials. Provide the unit cost per item materials and total the cost of packages to guide you on what procurement methods are applicable. (There will be work items that continue to be undertaken on succeeding months but will fall on next tranches and will require separate packaging.) Local Shopping Goods – package with total estimated cost of not more than P500, 000.00.

13 Items that are within the major item of work needed to accomplish that particular item e.g. Construction of Concrete Pavement for a Drying Pavement requires formworks. The formwork is the subsidiary item.


Local Bidding Goods – package with total estimated cost of more than P500,000.00. Direct contracting – package with total estimated cost of not more than P125, 000.00

5. If the proposed work items are not within the capacity of the community and municipality to implement, a package for works will be prepared and will observe the procurement method. Local Shopping works – package with an estimated cost not more than P 1,250,000. Local Bidding works – package with total estimated cost of more than P1,250,000. Direct Contracting – small package with total estimated cost not more than P250,000.00

6. It is important that the specifications of required materials for purchase are clearly indicated in the PCPP for the reason that other Procurement Team members that will prepare the canvass form and/or Invitation to Quote/Bid will copy the procurement packages.

7. Once the packages are determined, sum-up all the costs of each package to

determine the amount and percent of tranches to be requested. The normal tranche is 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 must be 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 corresponding

package/s that will be needed to immediately start and will provide significant accomplishment (will result to more than 30% which is the minimum requirement for the second tranche) that the community or the contractor can undertake in the given timeline.

11.Check the total amount of the package/s for the first tranche (with consideration to

the implementation schedule/Gantt chart). The total amount of package/s grouped packages will dictate the amount of the first tranche. If the amount needed for the first tranche exceeded the regular tranching which is 50%-40%-10%, analyze the PCPP and draft a justification based on the PCPP when requesting 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.

Shown in the succeeding page is an example in projecting the request for tranching (Estimator’s Guide)


B A R C H A R T S - C U R V E ITEM NO.

DESCRIPTION

QUANTITY

UNIT

AMOUNT WEIGHT MONTH 1 MONTH 2 MONTH 3

PESO

WEEK 1 WEEK 2 WEEK 3 WEEK

4 WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 1

WEEK 2

WEEK 3 WEEK 4

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

P 0.831%

A

II FORMS AND SCAFOLDINGS 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

VI ROOFING/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 AND WINDOWS 10.00 set

37,634.50 4.005%

P 1.001% 1.001% 1.001% 1.001%

A

IX ELECTRICAL 1.00 lot 69,047.00

7.348%

P 7.348%

A

X SEPTIC VAULT 1.00 unit 27,593.00

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

939,695.50 100.00% P

A

C A L E N D A R

WEEK 1 WEEK 2 WEEK 3 WEEK

4 WEEK 5

WEEK 6

WEEK 7

WEEK 8

WEEK 9

WEEK 10

WEEK 11 WEEK 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

CUMMULATIVE PLANNED 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

Example: COMMUNITY PROJECT : HEALTH STATION


In the given example, assuming that the community project can be completed in 90 calendar days, based on the projection it may be noticed that at the end of the 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 or 80%. It is safe to request 80% first tranche.

6.5 Monitoring Procurement Compliance

1. The Community Facilitator (CF) has been designated to conduct procurement

review in order to monitor procurement compliance. The purpose of monitoring procurement compliance is to ensure that all procurement transactions are done in accordance with the Revised KALAHI-CIDSS Community Procurement Manual. The CF must have the working knowledge of procurement to help them detect the red flags and abnormalities. The community may also refer to the CF procurement issues and problems. The CF must refer to the DAC engineering related issues and problems.

2. The CF will conduct procurement review 100% of all procurement of each BSPMC. The objective of the procurement review is not to find faults in community procurement but to find areas where improvements can be made for more efficient implementation.

What is procurement review? Procurement review is the process of checking the conduct of procurement activity if it was done in accordance to the KC Procurement Policies and its Procedure of Procurement Methods. There are two parts in the procurement review, namely:

a. Checking the completeness of the Procurement and Finance Documents by filling up the simplified Community Project Implementation Procurement and Finance Documents Filing Checklist.

b. Detecting the Red Flag of Abnormalities in order to provide signals for field and regional staff to intensify supervision and undertake corrective measures by filling up the CF Procurement Red Flags Monitoring Form.


PROC. STAGE

MATRIX OF PROCUREMENT FUNCTIONS OF COMMUNITY VOLUNTEERS, ACT & RPMT Community PT Community BAC BSPMC

Bookkeeper Storekeeper BSPMC Chairman Barangay

Treasurer Planning Stage

-Prepares CPP -approves Community Procurement Plan (CPP)

Pre- Procurement Stage

-attends procurement training workshop



-attend procurement training workshop



Procurement Stage

-prepares canvass forms -delivers canvass forms to supplier -receives sealed envelop -prepares PO -delivers PO to supplier -prepares invitation to quote -delivers invitation to quote -prepares Invitation to Bid -posting of Invitation to Bid

-advertise/post invitation to bid -conduct pre-bid conference -determines eligibility of prospective bidders -conduct of evaluation of bids -undertake post qualification

-records transaction and files the documents (see checklist of procurement documents )

-receive the goods by signing the PO -store the goods and prepare stock cards.

-approves PO -review and sign Resolution to Award (RTA) -issue notice of award -issue Notice to Proceed -request clearance from AC prior signing of PO ( for DC for goods ) -request clearance from RPMT prior signing of PO ( For DC for works ) -request NOL from RPMO for contract above P 500,000.00

Certifies on Fund availability Prepares disbursement voucher and check

Contract Review

-make all procurement documents available


PROC. STAGE

Community BAC-TWG Community Facilitator

Roving Book

keeper

Deputy Area Coordinator

Area Coordinat

or

RIE/DRIE /RPO

Regional Project

Manager Planning Stage

-assist in the preparation of CPP

Pre-Procurement Stage



-conduct training on procurement to volunteers

-conduct coaching on procurement to ACTs

Procurement Stage

-provide technical assistance to BAC during evaluation of quotation and bids. -assist procurement team in drafting contract

-monitor red flag of abnormalities using CF Procurement Monitoring Form. - provide guidance to the BSPMC in the preparation of minutes of meeting and to ensure that minutes are properly prepared, in order and filed.

-Maintain copies of procurement documents at ACTs.

-provide technical assistance during bid evaluation -attend pre-bid conference -attend bid opening -provide action regarding red flag of abnormalities as per instruction of AC.

-provide action regarding red flag of abnormalities -issue clearance to direct contracting for goods.

-attend all pre-bid conference -attend all bid opening. -consolidation of action taken regarding red flag of abnormality

-provide action regarding red flag of abnormalities not resolve in the ACT. -issue clearance for direct contracting for works. -issue no objection letter to contract above P500,000.00

Contract Review

-conduct contract review by ensuring completeness of documents using checklist


6.6 Billboards

It is a policy of the project that billboards should be installed for each community project for transparency purposes. It must be placed at least 5 meters away from any commercial or political billboard/s. No political names should be indicated.

The A/MCT will remind the BSPMC on monthly updating of billboards for transparency purposes. Likewise, A/MCT should coach the volunteers on how to present the rates of accomplishment for better understanding of all community members and the public.


CHAPTER 7 | MODE OF IMPLEMENTATION By Contract By Community Force Account


7.1 By Contract

One or more packages undertaken by one or more contractors using his available resources will provide labor, materials and equipment in order to effect timely completion 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 and capacity to perform the works. Portion of the work items maybe contracted if the community does not have capability and resources to undertake for the work items.

What does capacity means under KALAHI-CIDSS?

Capacity means the community has the ability to manage the implementation of the community project by hiring the services of skilled worker in the area. Technical Staff is available in the Community or they are willing to engage the services of a service provider who will supervise the project implementation.

Resources include available local materials, labor, equipment in the community and other resources they can mobilize from the LGUs and other donors.

Under the CFA mode of implementing, the barangay under the overall

supervision of the Barangay Community Project Management Committee undertakes the following activities:

1. Procurement of construction materials, NRM inputs, tools and equipment 2. Management of labor (skilled and unskilled) 3. Execution of some of the work items in the POW 4. Disbursement of Funds 5. Preparation of monitoring reports 6. Full Accounting to community members

Since implementation of an infrastructure community project involves certain highly technical work, the community will need assistance in: 1. Engineering design preparation, NRM planning; 2. Project supervision; and 3. Preparation of Physical and Financial Progress Reports.


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), Municipal Environment Officer (MENRO)

b. Technical Advisers from national government agencies such as the

National Irrigation Administration (NIA), Department of Agriculture (DA), Department of Environment and Natural Resources (DENR), for certain “specialized14

” community projects such as small water impounding or communal irrigation community project and Natural Resource Management projects.

c. Community-hired private service provider/s using the budget of the community 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 was estimated 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 provide labor counterparts to increase the chances of being prioritized. Counter part 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 local

counterpart (w/ assistance from the LGU). On both CASE 1 and 2, the community will purchase construction materials and inputs needed for community projects. This will be done through appropriate procurement method (e.g. local shopping, local bidding or direct contracting). For labor under CASE 1, the community (BSPMC) through the assistance of skilled worker will manage and supervise community workers participating in the implementation of the community project. The BSPMC will pay the workers in accordance with the agreed rate for skilled and unskilled labor. The actual cash to be paid and the equity (“bayanihan”) monetized cost will be indicated in the Community Employment Record. It is important that bookkeeper regularly tracks the monetized counterparts. For labor under CASE 2, the community (BSPMC) will invite interested laborers to work in the community project. Payment will be made by the BSPMC based on the actual accomplishments of the laborers. In both CASE 1 and 2, the BSPMC will utilize the technical assistance of municipal engineer and or technical service provider. It is important that records to monetize the services rendered by municipal/provincial staff is regularly updated by the community.

.

14 Specialized community projects are those that requires structural analysis for infra community projects and new technologies introduced by other agencies. 15 TAF eligibility and requirements shall be based on the guidelines set by the NPMO.


CHAPTER 8 | PROCUREMENT METHODS


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

Expenditure

Category Conditions Recommended Methods Description

1. GOODS

Goods are available locally and there are several suppliers. Contract is valued at less than or around PhP 500,000.001

Local Shopping Community solicits at least three separate price canvass from suppliers. Among the factors to be considered in choosing the potential suppliers are quality, availability, reliability and hauling costs.

Same condition as above except that value of the contract is and above or more than P500,000.00

Local Bidding Simplified bidding process.

Small amount of purchase required and only one local supplier available. Cheaper to purchase because of reduced transportation cost. Contract value does not exceed P125,000.00

Direct Contracting

Lone local supplier can be chosen without any shopping for goods, provided cost are in line with local market rates as shown in the Regional Project Management Team Unit Cost Database. The AC should have a copy of this database. Clearance from AC is required prior to contracting.

2. WORKS Small works amounting to not more than US$25,000 or PhP1.25M Several local licensed contractors are available. Rental of equipment and manufacturing works are under this method.

Shopping for Work

Written quotations from at least three qualified licensed local contractors shall be obtained.

Only one local licensed contractor is available and the value of contract is not more than P250,000.00 This procurement method is also applicable for the Direct Contracting of Labor only (Pakyaw).

Direct Contracting

Lone local contractor can be chosen without any shopping for works, provided within approved Program of Works (POW). Clearance from RPMT is required prior to contracting.

Several local licensed contractors are available but contract price exceeds P1.25M.

Local Bidding for Works

Simplified1 open bidding procedure.

Prior Review Requirements

Prior review of the procurement documents by RPMO, NPMO and World Bank, MCA-P, others, is a requirement for Contract/Purchase Order amounting to PhP 500,000 or more or different contracts/purchase orders but with the same supplier or contractor, whose total aggregate amount is PhP 500,000 or more. Review will be done by the RPMO, NPMO or MCA-P, depending on the threshold, upon submission by the BSPMC of the request of No Objection Letter (NOL) together with the attached documents specified in the NOL review report.

Any NOL issued by the RPMO is presumed to be thoroughly reviewed. Any contract/purchase order perfected without prior review and without issuance of NOL


will be declared misprocured. The amount covered in the misprocurement will be deducted from the cost of the grant fund.

Before entering into Contracts with the Contractors or serving Purchase Order to the

suppliers 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 Purchase Order, all documents must first be submitted to the Regional Project Management Team for review and if found to be in order, the Regional Project Manager shall issue “No Objection Letter”. For GOODS: a. Individual purchase order amounting to PhP 500,000 but not to exceed PhP 1,000,000. b. Aggregate POs amounting to more than PhP1,000,000.00 within the Municipality proposed for award to a single supplier. Sample Case: Two Barangays (say Barangays Poblacion East and Poblacion West) conducted serving of Invitation to different suppliers within the Municipality. Supplier X offered PhP560,000.00 to Poblacion East and offered PhP550,000 to Poblacion West, thus, the aggregated amount is PhP1,110,000. In this case, a NOL must be secured from the Regional Project Management Office (RPMO) before issuance or approval of Purchase Order. c. If the amount of a single PO/Contract is below PhP500,000, no need to secure NOL but the Area Coordinating Team shall ensure that the procurements made at the Barangay are done in accordance with the KC procurement procedures. For WORKS: a. Individual contract under Local Shopping of Works amounting to

PhP500,000.00 or more but not to exceed PhP 1,250,000.

b. All contracts under Direct Contracting for Works regardless of the amount. PO/Contracts under Local Shopping for Goods and Works below PhP500,000.00 do not need prior approval by the RPMT but one out of every five community-based procurement contracts nationwide shall be subject to post-review. The Procurement Team should therefore make sure that all supporting documents of every contract are properly filed to facilitate submission in case it is selected for post-review.

2. Subject to prior review by the National Project Management Office (NPMO). Before BSPMC issues Notice of Award and sign the contract, all documents must first be submitted to the National Project Management Office for review and if found to be in order, the NPMO shall issue “No Objection Letter”. a. Individual PO under Local Bidding for Goods amounting to more than

PhP1,000,000.00 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 Funding Donors’s No Objection.

Before the BSPMC issues Notice of Award and sign the contract, it must first secure the approval of the funding donor e.g. World Bank, MCA-Philippines , through the Regional Project Management Team (RPMT). The RPMT shall review the documents before forwarding them to the National Project Management Team. In all cases, it shall be the National Project Management Team who shall secure and coordinate with the funding donor for NOL. For MCC-funded project/s, MCA-P shall then conduct an eligibility verification procedure to determine whether the contractor or vendor is eligible to proceed with the proposed contract.

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

Million per community project.

b. Aggregate Contracts amounting to PhP2,500,000.00 or more within the Municipality 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 during each Kalahi-CIDSS cycle, fifty (50) randomly-chosen community-based procurement contracts in part or whole area of coverage, regardless of amount, shall be subject to MCA-Philippines’ review proceedings. The procurement Team should therefore make sure that all supporting documents of every contract are properly filed to facilitate submission in case it is selected for review. 4. Prioritizing review of contracts All contracts requiring the donor and NPMO NOLs must be prioritized for review at the BSPMC, A/MCT and at the RPMO since it will require longer period for the issuance of NOL considering the review at the A/MCT, RPMO and NMPO. Normally, 14 days is allotted for the review from the A/MCT (2-days), RPMO (5 days), NMPO (5-days) and 2 days transmission. In cases of deficiencies, compliance to such defects or clarification must be given priority and immediate action.


CHAPTER 9 | PROCUREMENT PROCEDURES Local Shopping Direct Contracting Community Force Account Local Bidding


9.1 Local Shopping

This procurement method is adopted when there are several local suppliers or contractors and the value of each contract or procurement is:

1. Less than PhP500,000.00 – for purchase of goods (materials, supply and

equipment); and, 2. Less than or approximately PhP1.25 M – for works {construction, NRM

contracts and services (hauling, trucking, and equipment rental) }. Given the ceilings for this procurement method, local shopping for goods is expected to be the most frequently used among the different methods.

9.1.1 Local Shopping – Goods Contract Less Than or Approx. PhP 500,000.00)

PROCEDURES TIME FRAME RESPONSIBLE UNIT

ACT PARTICIPATION

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

a. DISCUSSION Discuss the items of materials for procurement using the Planned Community Procurement Packaging

b. PREPARATION The BSPMC will discuss the preparation and filling up of the following forms: • Canvass forms at least three • Acknowledgement receipt • Abstract of Canvass • Purchase Order

c. REVIEW AND SIGNING

The entries in the canvass form will be reviewed before the signing.

Prepares minutes of pre-procurement

1 Calendar Day (CD) same day same day same day

BSPMC Procurement Team, BAC & PIT Procurement Team, BAC & PIT BSPMC Chairperson Procurement Team

CF will facilitate meeting. DAC will act as resource person. (Particularly if the community are situated on a far flung areas.)

Tips in filing up canvass: • date ( prepared & opening) • by package/pick up • date of canvassing &where to solicit • don’t forget to write specifications of

materials.

Tip: If the BSPMC has to procure goods with different packages, it is best to hold just one pre-procurement conference to save time. Things to remember in filling up the canvass: - Indicate Date (prepared & schedule of opening) - Indicate if the items will be procured by package/pick up - Date of canvassing & where to solicit - Do not forget to write specifications of the goods/ materials.



ACT PARTICIPATION

conference.

Keeping of all documents

same day BSPMC-Bookkeeper

2. Solicits Sealed Canvass Delivers Canvass Forms to at least three suppliers

a. Either wait for the supplier to

accomplish the form and seal it in an envelope, or

b. Asks the suppliers to submit their quotation in a sealed envelope to the BSPMC at the barangay hall within 3 days. The PT should ask the supplier to acknowledge receipt of the canvass form by signing the acknowledgement receipt.

The following should be written outside the sealed envelope:

2 CD

@ least 2 Procurement Team members

CF should accompany during the first serving of canvass.

3. Fill up Canvass Form and submit in sealed envelope

2 CD Suppliers

4. Receives sealed envelope at the barangay hall. If submitted in the Brgy hall before the deadline stipulated in the canvass forms. Procurement Team member records receipt in the logbook with the following information:

Name of Goods for procurement Name of Supplier Date Received Name & Signature of team member who received the sealed envelope The sealed envelope and the logbook will be kept inside the filing cabinet at BSPMC.

w/ in 3 CD upon signing acknowledgement receipt

Procurement Team

5. Deadline of submission and opening of canvass.

BAC to declare quorum before the opening

1 CD (On date and time indicated in the

BAC, PT (Invited: TWG, Audit Committee

CF observes the process.

If during the deadline of submission of quotation/s three envelopes were received but only one or two are responsive/complying (quoted all items), award the contract to the supplier offering the lowest calculated and responsive quotation. If the lowest supplier refuse to accept the quotation, consider the second lowest. If the second lowest refuse to accept, consider the third lowest quotation provided his quoted price is within 110% of the price of the second lowest, otherwise proceed to direct contracting or re-canvass.

NAME OF SUPPLIER ADDRESS

Quotation for:_________________

KALAHI-CIDSS Barangay Community

Project Management Committee

Address of Barangay



ACT PARTICIPATION

of canvass. Open the padlock of the box and open one by one the sealed envelopes and read aloud in public the name of supplier and the total amount of prices. BAC to initial the canvass forms.

Prepare minutes of opening of canvass


canvass.) same day same day

Head if necessary) PT BSPMC Bookkeeper

6. Evaluate canvasses and choose the supplier who offers the lowest calculated and responsive canvass based on the condition set forth on the canvass.

a. Evaluation

Evaluate if canvass is responsive, i.e.,: • Specifications • Delivery or pick up price • By package or by item

If canvass is not responsive declare the supplier disqualified. Do not include disqualified canvass in the ranking. Prepares minutes of the evaluation of canvass. Keeping of all documents

1 CD same day same day

BAC, TWG PT BSPMC-Bookkeeper

ACT to have local prices certification as reference. DAC to attend in the evaluation.

If supplier/s submitted canvass after the deadline of submission, the same will be automatically rejected. Q: What is a quorum? A: The BAC is composed of a Head and 2 members. Two (2) out of the 3 persons constitutes a quorum. Q: What if the BAC Head/Chairperson is not present during the opening of quotation? A: It is not a requirement for the head/chairperson of the BAC to be present. The requirement is 2 out of 3 persons.



ACT PARTICIPATION

7. Recommends the lowest calculated and responsive canvass.

a. Prepare Abstract of Canvass b. Encircle the name and amount of the

winning supplier in the Abstract of Canvass and affix signature.

c. Reviews and approves the Abstract of Canvass


Procurement Team BAC BSPMC Chairperson

DAC to ensure that the lowest calculated and responsive canvass is the one indicated in the minutes of evaluation of canvass.

If during the deadline of submission of quotation/s three envelopes were received, the opening will push through. If only one or two suppliers quoted on all items, the BAC will proceed with the evaluation. If one or two supplier/s is found responsive, the BAC should recommend the award to the supplier offering the lowest calculated and responsive quotation. If the lowest supplier refuses to accept the award, consider the second lowest quotation with the quoted price. If the second lowest refuses to accept the award, re-canvass. As a general rule, in order for the opening to be successful, the minimum of three envelopes should be received. The BAC should not declare failure if one or two envelopes are not completely quoted. The BAC can declare failure of opening if only one or two envelopes were received (in the first attempt). However, in the second attempt and still one or two envelopes are received, the opening will push through provided more than three sets of canvass were served. The proof is the acknowledgement receipt. In cases of awards that are being waived by suppliers without acceptable/valid reasons, said suppliers will be blacklisted in KALAHI-CIDSS future procurements or can be recommended for blacklisting to the Government Procurement Policy Board (GPPB).

If the supplier with lowest canvass waive, what will be the option? The BSPMC should ask the second lowest to accept the award at his quoted price.

If the second lowest refuse to accept, consider the third lowest quotation provided his quoted price is within 110% of the price of the second lowest, otherwise proceed to direct contracting.



ACT PARTICIPATION

d. Keeping of all documents same day BSPMC-Bookkeeper

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

a. Agree on date of delivery. b. Certifies on Fund Availability

c. Approves Purchase Order

1 CD same day same day 14 CD

Procurement Team MIT Barangay Treasurer BSPMC Chairperson

9. Delivers Purchase Order to supplier

1 CD Procurement Team

10. Signs conforme and returns two copies to the Procurement Team

Furnishes one copy to Brgy Bookkeeper Furnishes one copy to MIT

same day Supplier Procurement Team Procurement Team

11. Delivery of the goods

Keeping of all the documents

1 CD (As scheduled in the PO) same day

Supplier BSPMC-Bookkeeper

12. 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 BSPMC Chairperson (incomplete delivery or does not comply with specifications). If accepted, turn over the goods to the Storekeeper Keeping of all documents

1 CD MIT with concerned TWG member (depends on the type of items to be inspected) MIT BSPMC-Bookkeeper

13. Receives the goods by signing the Purchase Order; stores the goods and prepares stock cards

Forwards PO and delivery receipt to Barangay Treasurer Keeping of all documents

same day same day same day

Storekeeper Storekeeper BSPMC-Bookkeeper

14. Process Payment on delivered items. Reviews the documents.

a. Processing @ Barangay DV & cheque

signing b. Cheque signing @ ACT

• Review Documents • Initial duplicate copy of cheque to

Indicate documents in order • Sign cheque

Signs the Logbook and Issues Official Receipt. Keeping of all documents

1 CD same day 1 CD same day

Brgy Treasurer & BSPMC Chairperson Supplier BSPMC-Bookkeeper

MRB MRB AC

15. Filing and Record Keeping Compilation of all documents with community project implementation procurement and finance document filing

1 CD

BSPMC-Bookkeeper

Community Facilitator



ACT PARTICIPATION

checklist on top of the folder. Original copy of the documents compiled and reviewed by the CF will be turn-over to the MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and Xerox copies for ACT and RPMT.

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

PROCEDURES TIME FRAME RESPONSIBLE

UNIT ACT

PARTICIPATION • Preparation of Documents 1. Conduct pre-procurement

conference. This is an internal meeting with the BSPMC. The objective of the Pre-procurement Conference is to ensure that the procurement is in accordance with the approved PCPP; properly schedule the succeeding procurement activities; and, to determine the availability of the approved budget for the package. The activities involved are:

A. Discussion. Discuss the items of works for procurement using the Planned Community Procurement Packaging.

B. Preparation.

The Procurement Team will prepare the following forms: • Invitation to Quote • Abstract of Quotation • Notice of Award • Contract Agreement • Notice to Commence • Performance bank • Technical Specifications • Drawing (if applicable) • Bank Guarantee (Advance

Payment)


BSPMC, PT & BAC PT BSPMC Chairperson

CF will facilitate meeting. DAC will act as resource person.

Things to remember: - Indicate the date prepared & schedule of opening - Do not forget to attach the specification

Tip: If the BSPMC has to procure different/several packages, it is best to hold just one pre-procurement conference to save time.



ACT PARTICIPATION

2. Review & signing

The entries in the invitation to quote will be reviewed before the signing. The BSPMC Chairperson will sign the invitation. The PT will prepare the minutes of pre-procurement conference. The documents must be filed and ready for distribution.

• Delivery of Invitation to Quote 2. Delivers Invitation to Quote (with

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

1 CD @ least 2 members of Procurement Team

CF should accompany during first serving of canvass. (For communities that are situated on far-flung areas.)

• Contractor’s Conference 3. Required for all contracts under local

shopping for works. To be done at least 5 days before the deadline of submission of quotation. The purpose of the contractors’ conference is to discuss the details of the contract and clarify documents.

Ask the contractor to submit their quotation in a sealed envelope to the BSPMC @ the barangay hall. The PT should ask the contractor to acknowledge receipt of the Invitation to Quote by signing the acknowledgement receipt form

The following should be written outside the envelope

Prepare minutes of the conference.


BSPMC,BAC & PT PT PT

DAC to act as resource person

4. Fill up the Invitation to Quote and submit in sealed envelope.

5 CD Contractor

5. Receives sealed envelope in the barangay hall. If submitted in the barangay hall before the deadline stipulated in the Invitation to Quote, Procurement Team members record receipt in the logbook with the following information: Date and Time Received Name of Contractor: Name of Works Procured: Name & signature of team member who received the sealed envelope.

1 CD same day

BAC, PT, TWG

• Deadline of submission and opening of quotations

1 CD

BAC, PT, BSPMC (Invite Mun.

DAC to act as resource person.

Name of Contractor Address Quotation for:__________________ KALAHI-CIDSS Barangay Community Project Committee Address of Barangay



ACT PARTICIPATION

6. Convene in the Barangay Hall on the opening of quotations. Deliver the logbook and sealed quotations to the BAC. Declare quorum before the opening of quotation. Open the padlock of the box and open the sealed envelope and read aloud in public the name of the contractor and the amount of quotation. The same procedure will be done for the remaining sealed envelopes.

Prepares minutes of opening of quotation. Keeping of all records

same day same day

COA Auditor, Mun. Engr., DAC, Contractors) PT BSPMC-Bookkeeper

7. Document Examination Examine documents using the pass/fail criteria specified in the Instruction to Bidders:

I. Technical Documents; II. Legal Documents; and, III. Financial Documents except

Bid Security

If examination is not completed in one day, keeps all documents in a lock filing cabinet in the barangay hall.

1 CD (Immediately after the Bid Opening)

BAC & TWG, PT BAC

8. Evaluate the quotation and choose the contractor who offers the lowest calculated and responsive quotation.

A. Evaluation Evaluate if quotation is responsive, i.e.,: • Specifications

1 CD

BAC, TWG

ACT to have local prices certification as reference. DAC to act as resource person.

If the contractor submitted quotation after the deadline of submission, the same will be automatically rejected. Name of late contractor must be recorded on the minutes of meeting.

In cases of conduct of shopping for works in the second attempt, due to failure in the first attempt and only one (1) bidder/contractor submitted quotation in the second attempt, the BSPMC has the option to proceed with the opening and evaluation provided at least three contractor was invited as manifested by the Acknowledgement Receipt. If the quotation of the lone contractor is within the approved estimated budget for the contract and the contractor passed the post-qualification evaluation, award the contract.



ACT PARTICIPATION

• Pass/Fail Criteria If quotation is not responsive declare the contractor disqualified. Do not include disqualified quotation in the ranking. Prepares minutes of the evaluation of quotation. Keeping of all documents

w/ in same

day same day

PT BSPMC-Bookkeeper

9. Conducts post-qualification of the lowest calculated responsive quotation by validating contractor’s documents. Submits post-qualification report to BAC

within 3 CD after completion of bid evaluation

Procurement Team

DAC to provide assistance

10. Recommends award of contract to Lowest Calculated and Responsive Quotation.

A. Prepare Abstract of Quotation B. Encircle the name and the amount of

quotation of the winning contractor and affix signatures

C. Reviews and approves the Abstract of

Quotation

1 CD w/ in same day same day

BAC BAC BSPMC Chairperson

DAC to provide technical assistance.

If the lowest bidder will waive will the second lowest can match the price of the lowest? The BSPMC should ask the second lowest to match the price of the lowest bidder.

If the second lowest refuse to accept the price of the lowest then conduct another serving of quotations.

Post-qualification – is the process of verifying, validating and ascertaining all the statements made and documents submitted by the bidder with the LCRQ, which includes ascertaining the said bidder’s compliance with the legal, financial and technical requirements of the bid. Who conducts Post-qualification evaluation? Procurement Team with the assistance of TWG.



ACT PARTICIPATION

• Contract Preparation 11. Drafts contract 12. Reviews contract

1 CD same day

Procurement Team BSPMC Chairperson


• Prior Review by RPMT

1 CD

BSPMC Chairperson

13. Reviews contract and all supporting documents

14. Issues No Objection Letter (NOL)

3 CD 1 CD

RPMT (Infra Engr. for infra contracts.) The Regional Project Director or the Regional Project Manager in case the RPD is on official travel or on leave.

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 after receipt of NOL w/ in same day 2 CD

BSPMC Chairperson Procurement Team Contractor

DAC to provide technical assistance

• Posting of Performance Security If contract is P1M or more: 20. Contractor is required to post

Performance Security in the name of BSPMC – (Name of Barangay) in any of the following forms: • Cash, cashier’s check, manager’s

check – 5% of contract price • Bank guarantee – 10% of contract

price This is in addition to the 10% retention money on all progress billing.

If contract is less than P1M: Chooses between performance security or retention money. If security is in the form of cash or check, it should be deposited in the BSPMC account. Performance Securities in the form of cash or certified check (manager’s check or cashier’s check) must be deposited in the BSPMC Account. Retention money is 10% on all progress billing. Retention money will be replaced by a bank guarantee of equivalent amount after the 100% completion of the community project. Retention money will only be returned after the lapsed of the defects and liability period of six (6) months for community projects below one million and 12 months for above one million.

5 CD

contractor DAC to provide T.A.

• Contract Signing 21. Signs the contract

2 CD Contractor, BSPMC Chairperson with Punong Barangay & Area

AC to provide assistance



ACT PARTICIPATION

Coordinator as witnesses

22. Furnish copy of the signed contract to LGU COA Auditor and RPMO

1 CD Project Implementation Team

• Issuance of Notice to Commence 23. Issues Notice to Commence

Immediately upon contract signing

BSPMC Chairperson

DAC to provide TA

• Starts the work 24. Mobilize equipment and workers

Within 7 CD Contractor DAC to certify mobilization of equipment, workers and materials.

• Advance Payment 25. Contractor has the option to claim advance

payment equivalent to 15% of the contract price subject to compliance of the following requirement: • Certification from DAC that equipment

and materials are already mobilized on the jobsite.

• Bank guarantee equivalent to the amount requested.

Within 3 CD

MRB to review the documents

• Inspection and Provision of Technical Assistance During Contract Implementation

26. Conduct regular visits to the project sites and provide technical assistance

As frequent as necessary

Mun. Engr., DAC, Regional Infra Engr., Area Coordinating Team.

• Payment 27. Process Payment on accomplishments

certified by the Project Supervisor noted by the Project Implementation Team/Mun. Engr.

Reviews the documents A. Processing @ Barangay

DV & cheque signing B. Cheque signing @ ACT

• Review Documents • Initial duplicate copy of cheque to

Indicate documents in order • Sign cheque

Signs the Logbook and Issues Official Receipt Keeping of all documents

2 CD same day 1 CD same day

Brgy Treasurer & BSPMC Chairperson Contractor BSPMC-Bookkeeper

MRB MRB AC

• Filing of Procurement Documents 28. Filing and Record Keeping.

Compilation of all documents with community project implementation procurement and finance document filing checklist on top of the folder. Original copy of the documents compiled and reviewed by the CF will be turn-over to the MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and photocopies for ACT and RPMT.

1 CD

BSPMC-Bookkeeper



PERIOD OF ACTIONS of PROCUREMENT ACTIVITIES

(LOCAL SHOPPING)

ACTIVITIES DEADLINE

PERIODS GOODS WORKS Min Max Min 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 14 CD

Contractors Conference

5 days before

submission 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 Award

3 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

T O T A L 7 CD 9 CD 27 CD 45 CD


9.2 DIRECT CONTRACTING

9.2.1 Direct Contracting for Goods shall be used using the following procedures:

1. Draw up a list of qualified suppliers within the municipality 2. Serve canvass or invitation to quote 3. Opening of canvass/quotation 4. Evaluation of canvass/quotation 5. 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 the following conditions:

• 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 most advantageous to the BSPMC after price verification;

• The repeat order may be availed of only within three (3) months from the date of the original purchase; and

• The quantity shall not exceed the quantity in the original contract c. Purchase value under this method should not exceed PhP 125,000. d. If after failure of canvass, direct contracting is allowed subject to

amount in the threshold.

9.2.1 Direct Contracting For Goods – Detailed Procedures

PROCEDURES TIME FRAME RESP. UNIT ACT PARTICIPATION

• Pre-procurement Conference 1. Conduct of pre-procurement conference.

This is an internal meeting with the BSPMC.

B. Discussion BSPMC to discuss items of materials for procurement using the Planned Community Procurement Package. The Municipal Engineer and Deputy Area Coordinator will certify that there is only one supplier in the municipality.

C. Preparation

The Procurement Team will prepare the following:

• Computation it is cheaper to

purchase from the lone supplier compared to supplier outside the municipality.

• Canvass form • Purchase Order

D. Review and signing


BSPMC, BAC,PT,PIT PT BSPMC

CF will facilitate the meeting while DAC will act as resource person and will provide technical assistance DAC to provide technical assistance



Review and signing the canvass form. Prepares minutes of the Pre-Procurement Conference Keeping of all the records

same day same day

Chairperson PT BSPMC-Bookkeeper

2. Delivers canvass form to the lone supplier

a. Either waits for the supplier to accomplish the form and seals it in an envelope.

b. Asks the supplier to submit the canvass to BSPMC at the barangay hall.

The following should be written outside the envelope;

1 CD

PT

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

2 CD Supplier

4. Receives sealed envelope and place inside the box. If submitted in the barangay hall before the deadline stipulated in the canvass form, Procurement Team member records receipt in the logbook with the following information:

1 CD

Supplier

5. Deadline of Submission and Opening of Canvass BAC to declare quorum before the opening of canvass. Open the padlock of the box and open the sealed envelope and read aloud in public the name of supplier and the amount of canvass.

Prepares minutes of opening of canvass Keeping of all documents

1 CD (On the date & time indicated in the canvass) same day same day

BAC, PT (Invited: TWG, Audit Committee Head if necessary) PT Bookkeeper

CF observe the process

6. Evaluation of canvass. Evaluate canvass if it is responsive, i.e.,: a. Specification b. Delivery or pick up price c. By package or item award

1 CD BAC w/assistance of TWG

DAC to provide T.A.

• DAC to provide certification there is only 1 supplier

7. Approves Purchase Order

1 CDafter receipt of NOL

BSPMC Chairperson

8. Delivers Purchase Order to supplier 1 CD Procurement Team

9. Signs conforme and returns two copies to the Procurement Team

Furnishes one copy to Brgy Bookkeeper Furnishes one copy to MIT


Supplier PT PT

Name of Supplier Address Quotation for:________________________ KALAHI-CIDSS: Barangay Community

Name of goods for procurement:____________ Name of Supplier:_______________________ Date



Keeping of all records same day PT • Delivery of Goods 10. Delivers the goods

As scheduled in 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 BSPMC Chairperson (if incomplete delivery or does not conform with specifications) If accepted, turn over the goods to the Storekeeper

w/ in same day

MIT with concerned TWG member (depends on the type of items to be inspected) MIT

12. Receives the goods by signing the Purchase Order; stores the goods and prepares stock cards

Forwards PO and delivery receipt to Barangay Treasurer

w/ in same day w/ in same day

Storekeeper Storekeeper

13. Reviews the documents and process payment on delivered items only.

A. Processing @ Barangay

DV & Check signing of Treasurer & BSPMC Chairperson

B. Check signing @ ACT

• MRB review documents • MRB to initial duplicate copy of

check to indicate documents in order

• ACT signs the cheque.

Note: For the case of fuel the delivery of goods will be done on staggered basis. Withdrawal slip will be used each time withdrawal is made. Supplementary agreement (see page 113) between BSPMC and the gasoline dealer will be entered into. Withdrawal of fuel will be made per demand by the BSPMC. The stocks will be subject to spot checking by the BSPMC anytime.

1 CD

Brgy Treasurer

14. Filing and Record Keeping. Compilation of all documents with community project implementation procurement and finance document filing checklist on top of the folder. Original copy of the documents compiled and reviewed by the CF will be turn-over to the MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and photo copies for ACT and RPMT.

One day

BSPMC-Bookkeeper


9.2.2 Direct Contracting For Works – Application and Detailed Procedures

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

9.2.2.1 Direct Contracting for Works shall only be used under the following cases


1. Only one local contractor (in the barangay/municipality or adjacent

muniicplaity) 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 Local Shopping or bidding. Repeat Order shall be subject to the following conditions: 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 most advantageous to the BSPMC after price verification;

b. The repeat order may be availed only within three (3) months from the date 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.

PROCEDURE TIME FRAME RESPONSIBLE

UNIT ACT

PARTICIPATION • Pre-procurement Conference 1. Conduct of pre-procurement conference.


A. Discussion Discuss items of works for procurement using the Planned Community Procurement Package. The Procurement Team should submit certification to the BAC that there is only one contractor in the municipality.

B. Preparation

The Procurement Team will prepare the following: a. Computation it is cheaper to

purchase from the lone contractor compared to supplier outside the municipality.

b. Invitation to Quote c. Notice of Award d. Contract Agreement e. Technical Specifications f. Drawing (if applicable)

C. Review and signing

Review and signing of the Invitation to Quote before signing.

Prepares minutes of the Pre-Procurement Conference Keeping of all records

1 CD same day same day same day same day

BSPMC, BAC, PIT, PT Procurement Team BSPMC Chairperson PT BSPMC-Bookkeeper


2. Delivers Invitation to Quote (with attached technical specifications, drawings) to the lone contractor.

Ask the contractor to submit their quotation in a sealed envelope to the BSPMC @ the barangay hall. The following should be written outside the envelope.

1 CD Procurement Team assisted by DAC


PROCEDURE TIME FRAME RESPONSIBLE UNIT

ACT PARTICIPATION

3. Fill up the Invitation to Quote and submit in

sealed envelope 1 CD Contractor

4. Receives sealed envelope and place inside the box. If submitted in the barangay hall before the deadline stipulated in the Invitation to Quote, Procurement Team member records receipt in the logbook with the following information:

2 CD (As provided in the request)

Procurement Team

5. Deadline of Submission and Opening of Quotation BAC to declare quorum before the opening of Invitation to Quote. Open the padlock of the box and open the sealed envelope and read aloud in public the name of contractor and the amount of quotation.

Prepares minutes of opening of quotation

1 CD (on the date & time indicated in the Invitation to Quotation) same day

BAC, PT (Invited: TWG, Audit Committee Head if necessary) PT

CF observe the process

6. Evaluation of quotation. Evaluate quotation if it is responsive, i.e.,: a. Specification b. Pass/Fail Criteria

1 CD BAC w/assistance of TWG


7. Conducts post-qualification of the lowest calculated responsive quotation by validating contractor’s documents. Submits post-qualification report to BAC

3 CD after completion of bid evaluation

Procurement Team


8. Drafts contract 9. Reviews contract

1 CD same day

Procurement Team BSPMC Chairperson


10. Request NOL from RPMO prior to signing of contract (use-proforma contract for work). To be attached to the request are: a. Minutes of pre-procurement conference b. Plans and Technical Specification c. Quotation submitted by contractor d. Draft Contract e. Post Qualification Report

1 CD BSPMC Chairperson

ACT to provide assistance

• Review by RPMT 11. Review the documents and recommend

issuance of “No Objection Letter “

Review and issue “No Objection Letter”

3 CD 2 CD

Regional Infra Engr / concerned staff Regional Project Manager

ACT to follow up NOL

Name of Contractor Address Quotation for:________________________ KALAHI-CIDSS: Barangay Community Project Management Committee Address of Barangay

Name of goods for procurement:____________ Name of Contractor:_____________________ Date received:_________________ Name & Signature of team member who receive the sealed envelope.

If contractor submitted quotation after the deadline of submission, the same will be automatically rejected.



ACT PARTICIPATION

• Approves Notice of Award 12. Approves Notice of Award

1 CD after receipt of NOL

BSPMC Chairperson

• Deliver Notice of Award (see pro-forma page)

13. Delivers Notice of Award (3 copies) to Contractor

Signs Conforme and returns two copies to Procurement team

w/ in same day 2 CD

Procurement Team Contractor

• Posting of Performance Security 14. Since contract amount is below P1M, the

Contractor chooses between performance security or retention money

a. If Contractor chooses to post

Performance Security, it should be in the name of BSPMC – (Name of Barangay) in any of the following forms: • Cash, cashier’s check, manager’s

check – 5% of contract price • Bank guarantee – 10% of contract

price

Performance Securities in the form of cash or certified check (manager’s check or cashier’s check) must be deposited in the BSPMC Account.

b. If the Contractor chooses retention

money, 10% retention money will be retained on all progress billings.

5 CD

Contractor

• Contract Signing 15. Signs the contract

2 CD

Contractor, BSPMC Chairman, witnesses

16. Furnishes copy of signed contract to LGU COA Auditor and RPMO

same day Procurement Team

• Issuance of Notice to Commence 17. Issues Notice to Commence

1 CD upon contract signing

BSPMC Chairperson

• Starts the work 18. Mobilizes equipment and workers

Within 7 CD

Contractor




Mun. Engr., DAC, RIE, Area Coordinating Team.

• Payment 20. Processes payment based on

accomplishments certified by the Project Supervisor noted by Project Implementation Team.


DV & Check signing

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


• ACT sign the check

Signs voucher, logbook and issues Official Receipt

2 CD 1 CD Immediately upon payment

Brgy Treasurer MRB MRB AC Contractor



ACT PARTICIPATION

• Filing of Procurement Documents 21. Filing and Record Keeping.

Compilation of all documents with Community Project Implementation Procurement and Finance Document Filing Checklist on top of the folder. Original copy of the documents will be compiled and reviewed by the CF and turned-over to MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and photo copies for ACT and RPMT.

1 CD

BSPMC-Bookkeeper


9.3. Community Force Account - Detailed Procedures For

Procurement Of Labor and Materials

GUIDELINES ON THE USE OF DIRECT CONTRACTING OF LABOR

Direct Contracting of labor may be used under the following conditions: a. If the work requires more skilled workers of which the community could

not provide. b. If the laborers committed by the community in the Community

Employment Record Sheet did not materialize. Organization of the Group

1. The formation of Group should be the responsibility of the BSPMC with the assistance of the Community Facilitator.

Supervision

1. The Project Supervisor hired by the BSPMC will oversee the selection of the contract group and be a witness to the agreement. 2. The Project Supervisor / Foreman will ensure compliance with the design standards and specifications. 3. The group leader will assist the Project Supervisor in setting out the task and distributing tools; assure that the work the work is undertaken as directed.

Tools 1. Hand tools will be supplied by the BSPMC through the Project Supervisor. 2. The Project Supervisor will be responsible for keeping the tools in working order by sharpening / repairing them. 3. Tools will be issued by the workforce and the issuance will be documented in the contract documents. 4. Worn-out tools should be returned to the storekeeper for replacement. These should be returned from the project site to the property custodian for write off or replacement for tools lost. 5. On completion of the Direct Contract Agreement all tools and implements, whether serviceable or not, shall be returned to the storekeeper. This shall be made a condition for payment of the Contract Agreement. Any loss will be deducted at replacement value from the contract sum and the amount recovered will be used for the purpose of replacement for the tools lost. 6. No tools shall be offered or sold to the workers.


PAYMENT 1. Before commencing the work, the barangay treasurer has to certify the availability of funds. 2. Payment will be made after the completion of the work only as certified by the Project Supervisor.

DIRECT CONTRACT DOCUMENTS.

1. Proposal 2. Direct Contract Agreement 3. List of Tools to the provided to the Group


UNIT ACT

PARTICIPATION • Pre-procurement Conference 1. Convene and discuss the details of the

project to be implemented by the community under CFA.

a. Confirms the resources and capability

of the community.

b. Validate participation of project supervisor, Municipal Engineer, skilled and unskilled workers listed in the Community Employment Record

c. Discuss participation of “Direct

Contracting of Labor” (if any)

d. Timetable for the implementation and the payment arrangement

Prepares minutes of pre-procurement conference highlighting the execution of the community project using Community Force Account Mode

Approves minutes of the meeting

1 CD

BAC, PT, PIT, MIT, AIT Invited: Project Supervisor, Mun. Engineer, DAC Procurement Team BSPMC Chairperson

CF to facilitate the meeting. DAC as resource person

• Procurement of Materials Needed for the Project

2. Procure materials needed for the community project using the appropriate procurement method (see LS, LB or DC)

Delivery schedule of the materials shall be synchronized with the actual implementation of the project

Awarded 2 wks before the work starts Delivered 1 wk before the work starts

BAC PIT, PT

• Start and implement program of works 3. Start implementation and supervise the day

to day activities in the sites.

As scheduled

Project Supervisor/ Group Leader

• Regular Inspection and Provision of Technical Assistance During Implementation

4. Conduct regular visits to the project sites and provide technical assistance.


Mun. Engr. DAC, Area Coordinating Team, RIE

• Payments for labor 5. CASE 1. Prepares payroll and Community

Employment and Record Sheet every pay day. Submit payrol

l and CERS to the Heads of PT, PIT and BSPMC Chairperson for signature

Frequency as agreed by the community

Brgy Treasurer



ACT PARTICIPATION

CASE 2. Prepare payment after receipt of request for payment from Direct Contracting Group

6. Pays the workers based on agreed rates 7. Signs the payroll and CERS

Give copy of signed payroll to Brgy Treasurer

8. Gives the payroll and CERS to the Brgy

Bookkeeper 9. Records the transaction and files the

documents

Brgy Treasurer Brgy Treasurer Workers Group Leader Brgy. Bookkeeper

9.4. LOCAL BIDDING

This procurement method will probably be the least used procurement method given the high minimum amount set for its mandatory adoption. This method will be used when there are several local suppliers or contractors and the value of each contract is: 1. PhP 500,000 above for goods and

2. PhP 1.25 M and above for works Since under this method requires prior approval of the NPMT, the Regional Community Infrastructure Specialist (RCIS) or Deputy Area Coordinator (Municipal Engineer) should be invited in the important procurement activities in order to facilitate immediate issuance of No Objection by the NPMT. 9.4.1 Local Bidding For Goods - Detailed Procedures


ACT PARTICIPATION

• Pre-Procurement Conference 1. Conduct of pre-procurement conference .


A. Discussion BSPMC will discuss the items of materials for procurement using the Planned Community Procurement Package.

B. Preparation

The procurement team will prepare the following forms. a. Invitation to Bid b. Abstract of Bids c. Form of Bid d. Purchase Order e. Form of Bid Security (Bank

Guarantee)

1 CD same day

BSPMC, BAC & PT PT

CF to facilitate meeting. DAC to act as resource person.



ACT PARTICIPATION

f. Drawings (if applicable) g. Technical Specifications h. Form of Performance Security (Bank

Guarantee) i. Notice of Award

C. Review & signing

Review & signing of the Invitation to Bid.

Prepare minutes of Pre-Procurement Conference



BSPMC Chairperson Procurement Team BSPMC -Bookkeeper

• Posting and Direct Invitation (personal serving by PT) of Invitation to Bid

2. Posts Invitation to Bid in the provincial/municipal/ barangay hall billboards, Kalahi-CIDSS: KKB billboard or bulletin board, offices of MIAC and PIAC members, NGO offices and personal serving of Invitation to Bid to at least 3 suppliers

2 CD It must be posted for two weeks

Procurement Team

CF to ensure wider circulation

• Issuance of Bidding Documents 3. Issues bid documents to interested bidders

free of charge.

Contents of Bid Documents: (To be issued to bidders) a. Invitation to Bid b. Form of Bid c. Form of Bid Security (Bank Guarantee) d. Drawings (if applicable) e. Technical Specifications f. Form of Performance Security (Bank

Guarantee)

For a period of two weeks from date of posting of Invitation to Bid

Procurement Team

DAC to provide TA

• Pre-Bidding Conference 4. Required for all contracts under local

bidding for goods. To be done at least 7 days before the deadline for submission of bids. The purpose of pre-bidding conference is to discuss the details of the contract and clarify the bidding documents.

Pre-bid conference must be conducted at the community level Records the minutes of the conference. The minutes shall be issued to all bidders 5 days before the bid opening Keeping of all documents

5. Conducts group site visit (if this is critical

for costing and delivery of goods)

1 CD same day same day same day

BAC, PT, PIT, MIT Invited: Mun,. Engr., DAC, Bidders Procurement Team Bookkeeper BAC, PT, PIT, MIT, Mun. Engr., DAC, bidders

DAC to act as resource person

What if the bidder did not attend the pre-bid conference.? Attendance in the pre-bid conference of the bidder is not compulsory and should not be a ground for disqualification.



ACT PARTICIPATION

The BSPMC to issue Certificate of Site Inspection (if required)

• Preparation, submission and receipt of bids

6. Prepare and submit sealed bid

w/ in 7 CD

Contractor

7. Receives sealed bid by BSPMC-PT at the barangay hall. If submitted before the deadline stipulated in the Invitation to Bid, PT members record receipt in the logbook with the following information:

a. Date and Time Received b. Name of Goods for procurement c. Name of Supplier d. Name and signature of procurement

team member receiving the sealed enveloped

The sealed bids and logbook will be placed at BSPMC office inside the filing cabinet.

On or before the date and time specified on the Invitation to Bid.

Procurement Team

• Bid Opening and Examination 8. Invites Mun. Engr. DAC, COA

representative, concerned TWG member, Regional Infrastructure Engineer to witness the bid opening.

1 CD (Send written invitation one (1) week before bid opening)

BAC

9. Prepares the barangay hall for the public opening of bids.

A day before bid opening

Procurement Team

10. Brings the logbook and sealed bid envelopes and place inside the bid box in the barangay hall.

On the date specified in the invitation to bid.

Procurement Team

11. BAC to declare quorum16 1 CD same day same day same day

before the opening of bids. Open the padlock of the bid box and open the first envelope, read aloud the name of the supplier, bid amount, amount and form of bid security and record the attached documents using the checklist of bidding documents. The same procedure will be done for the remaining sealed envelopes. Forwards bid documents to other BAC members for review.

Initial the bids and other supporting

documents Prepares minutes of Bid Opening Review & sign minutes of bid opening

BAC Chairman BAC Chairman PT BSPMC

16 Quorum consists of 2 out of the 3 BAC composition.

What if the bidder did not conduct site visit? The conduct of site visit is compulsory. This will enable the bidder to make a good offer of bid price.

What if the bidder submitted late bid? Late bid is automatically rejected and returned to the bidder.



ACT PARTICIPATION


same day

Chairperson Bookkeeper

12. Prepares Abstract of Bids (see pro-forma)

a. Name of Contract and its location b. Time, date and place of bid opening c. Names of bidders and their bids d. Bid security

Right after bid opening

Procurement Team

13. Bid Examination Examines bid documents using the pass/fail criteria. • Bid security must conform to the

requirements. • Specifications must conform to the

requirements. • Bid Form is signed by the

bidder/representative. • DTI Business Name Registration/SEC

Registration • Authority of the signatory • Price Schedule • PS Mark License for pipes

If bid examination is not completed in one day, keeps all documents in a lock filing cabinet in the barangay hall. Note: Bid Securities in the form of cash or (manager’s check or cashier’s check) must be deposited in the BSPMC Account. Bank Guarantee as Bid Security shall be submitted as part of the bid documents. Bid Securities of the non-winning bidders will be returned only after the winning bidder has signed contract with the BSPMC. Personal Check is not acceptable.

1 CD (Immediately after the Bid Opening)

BAC & TWG, PT

14. Evaluation of bids. Evaluate bid if it is responsive, i.e.,: 1.1 Applied correction on prices 1.2 Pass/fail Criteria 1.3 Ranking of bids

If bid is not responsive declare the bidder disqualified. Do not include disqualified bidder in the ranking. Prepares minutes of the evaluation of bids Keeping of all documents

same day same day

BAC w/assistance of TWG PT Bookkeeper

DAC to provide technical assistance.

• Post Qualification of Bidder with Lowest Calculated and Complying Bid

15. Conduct post qualification to the lowest calculated and complying bidder by validating bidder’s compliance with qualification requirements (Technical, Financial and Legal). Submits post-qualification report to BAC

Passes Resolution to Award (RTA). The RTA will indicate that the bidder is the Lowest

2 CD (after completion of bid evaluation) 1 CD

Procurement Team BAC

What are grounds for automatic disqualification? Late bids and no bid security attached to the bid.



ACT PARTICIPATION

Calculated and Responsive Bid (LCRB).

Review and signs the RTA

W/ in same day

BSPM Chairperson

• Contract Preparation 16. Drafts Purchase Order

1 CD Procurement Team

• Prior Review by NPMT 17. All contract regardless of the amount under Local Bidding for Goods

a. Request NOL for RPMT or NPMT. To be

attached to the request are: Draft Purchase Order and all other supporting documents (send only photo copy except the request letter).

b. Reviews the Purchase Order and

supporting documents and recommends issuance of NOL

c. Issues No Objection Letter (NOL)

1 CD 2 CD 1 CD

BSPMC Chairperson NPMO Staff National Project Manager

• Approval and issuance of Notice of Award

18. Prepares Notice of Award

Approves Notice of Award Delivers the Notice of Award Signs Conforme on the Notice of Award and returns it to Procurement Team

1 CD (Immediately upon receipt of NOL) w/ in same day w/ in same day 1 CD

Procurement Team BSPMC Chairperson Procurement Team Supplier

• Posting of Performance Security 19. Posts Performance Security

Forms of performance security: a. Cash, certified check, cashier’s check,

manager’s check, 5% of contract price b. Bank guarantee, 10% of contract price

w/ in 5 CD from receipt of NOA

Supplier

• Signing of Purchase Order 20. Approves the Purchase Order (three copies)

Signs in the “conforme” on the PO and returns two copies to Procurement Team Forwards the PO together with the rest of the supporting documents to the Brgy Bookkeeper Files the documents

Upon submission of Performance Security w/ in 1 CD upon receipt of PO 1 CD 1 CD

BSPMC Chairperson Supplier Procurement Team Brgy Bookkeeper

• Furnishing Contract Documents to LGU COA and RPMO

21. Provides LGU COA, RPMO a duplicate copy of approved Purchase Order and supporting documents

2 CD

Procurement Team

• Start Delivery of Goods 22. Delivers goods

As provided in the delivery schedule.

Supplier

• Monitoring 23. Monitors delivery of goods

As scheduled

MIT with



ACT PARTICIPATION

assistance from Mun. Engr., concerned MIAC member, DAC (if necessary)

• Regular Inspection and Provision of Technical Assistance During Contract Implementation


25. Processes payment based on delivered item.






• ACT sign the check Signs voucher, logbook and issues Official Receipt

26. Filing and Record Keeping.

Compilation of all documents with Community Project Implementation Procurement and Finance Document Filing Checklist on top of the folder. Original copy of the documents compiled and reviewed by the CF will be turn-over to MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and photo copies for ACT and RPMT.

As often as necessary 2 CD same day Immediately upon payment 1 CD

Mun. Engr. DAC, AC Reg. Infra Engineer Brgy. Treasurer Contractor Brgy Treasurer BSPMC-Bookkeeper


9.4.2 Local Bidding For Works - Detailed Procedures


UNIT ACT

PARTICIPATION • Pre-Procurement Conference 1. Conduct pre-procurement conference. This

is an internal meeting with the BSPMC.

A. Discussion. Discuss the item of works for procurement using the Planned Community Procurement Packaging (PCCP).

B. Preparation

Prepare 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

Guarantee)

1 CD same day

BAC,BSPMC,PT, TWG Procurement Team




ACT PARTICIPATION

• Form of Performance Security (Bank Guarantee)

C. Review and signing

Review & signing of the Invitation to Bid. Prepare minutes of the pre-procurement

conference Keeping of all records


BSPMC Chairperson PT BSPMC -Bookkeeper

• Publication and Posting of Invitation to Bid and Direct Invitation (personal serving of Invitation by the PT)

2. Publish in regional newspaper minimum of 1 week and maximum of two weeks and post Invitation to Bid in the provincial/municipal/barangay hall billboards, or bulletin board offices of A/MCTMIAC and PIAC members, NGO/CSO offices and conspicuous public places e.g. bus, jeep, tricycle terminals, public markets, etc.

@ least 2 Procurement Team members

• Issuance of Bidding Documents 3. Issues bid documents to interested bidders

free of charge Contents of Bid Documents (to be issued to bidders) a. Invitation to Bid (for works) b. Instruction to Bidders c. Bidding Data d. Conditions of Contract e. Forms of Contract Agreement (draft) f. Engineering Drawings g. Technical Specifications h. Form of Bid i. Form of Bank Guarantee for Advance

Payment j. Form of Bid Security(Bank Guarantee) k. Form of Performance Security (Bank

Guarantee)

For a period of two weeks from date of posting of Invitation to Bid

Procurement Team

• Pre-Bidding Conference 4. Required for all contracts regardless of the

amount under Local Bidding for Works. To be done at least 10 days before the deadline for submission of bids. The purpose of pre-bidding conference is to discuss the details of the contract and clarify the bidding documents.

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

5. Conducts group site visit

1 CD same day same day same day

BAC, PT, PIT, MIT, Invited: Mun,. Engr., DAC, bidders Procurement Team BSPMC- Bookkeeper BAC, PT, PIT, MIT, Mun Engr,

If the bidder did not attend the pre-bid conference, is it a ground for disqualification? Attendance in the pre-bid conference is not compulsory and should not be a ground for disqualification.



ACT PARTICIPATION

Issue Certificate of Site Inspection (if applicable)

same day

DAC, Bidders Procurement Team

• Preparation, submission and receipt of bids

6. Prepare and submit sealed bid

w/ in 7 CD

bidders

7. Receives sealed bid at the barangay hall. Records the following in a logbook:

a. Date and Time Received b. Name of Bidder c. Name and signature of procurement

team member receiving the sealed enveloped

d. Keeps them in a locked filing cabinet

1 wd (On or before the date and time specified on the invitation of bid.)

Procurement Team

• Bid Opening and Examination 8. Invites Mun. Engr. DAC, COA Auditor,

concerned TWG member, RIE to attend the bid opening.

1 CD (Send written invitation one (1) week before bid opening)

BAC

9. Prepares the barangay hall for the public opening of bids.

1 CD (One day before bid opening)

Procurement Team

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

1 CD (Right after the deadline for submission of bid)

11. Declare quorum before the opening of bids. Opens the padlock of the bid box and open first envelope read aloud the name of the bidder, bid amount, amount and form of bid security. The same procedure will be done for the remaining envelope. Forwards bid documents to other BAC members

Initial the bids and the attached supporting documents. Prepares the minutes of Bid Opening Review and approve the Minutes of Bid Opening Keeping of all documents

1 CD (w/ in same day) same day same day same day same day

BAC BAC PT BSPMC Chairperson BSPMC-Bookkeeper

12. Prepares Abstract of Bids: a. Name of contract and its location

Right after bid opening.

Procurement Team

What if the bidder did not conduct site visit? Conduct of site visit is compulsory. This will enable the contractor to make a good offer of bid price. What if the contractor/s did not conduct the inspection during the scheduled pre-bid conference can they inspect on another day? YES. They can do it before the submission of bid proposal/s.



ACT PARTICIPATION

b. Time, date and place of bid opening c. Names of bidders and their bids d. Bid Security

• Bid Examination 13. Examines bids using the pass/fail criteria.

check the technical, legal and financial documents indicated in the Instructions to bidders

If bid examination is not completed in one day, keeps all documents in a filing cabinet in the barangay hall and locked. Prepare and fill-up the pass/fail criteria sheet Note: Bid Securities in the form of cash ,manager’s check or cashier’s check must be deposited in the BSPMC Account. Bank Guarantee as Bid Security shall be submitted as part of the bid documents. Bid Securities of the non-winning bidders will be returned only after the winning bidder has signed contract with the BSPMC.

1 CD (Right after the Bid Opening) same day

BAC & TWG, PT TWG

14. Evaluation of bids Evaluate bid if it is responsive, i.e.,: A. Applied correction on prices B. Pass/fail Criteria C. Ranking of bids

Prepares minutes of the evaluation of bids



BAC Procurement Team BSPMC-Bookkeeper

15. Conducts post-qualification of the lowest calculated and responsive bidder by validating on the documents. Submits post-qualification report to BAC Passes Resolution to Award (RTA). The RTA will indicate the Lowest Calculated Responsive Bid (LCRB). Review and signs the RTA

2 CD after completion of bid evaluation same day W/ in same day

Procurement Team with the assistance of TWG BAC BSPM Chairperson

What is a responsive bid? Responsive bid is a bid that has passed both in the Pass/Fail Criteria and in the post qualification evaluation. What if bid is not responsive? Declare the bidder disqualified. What if bidder is already disqualified? Do not include disqualified bidder in the ranking.



ACT PARTICIPATION

• Contract Preparation 16. Drafts Contract (use proforma contract for

works)

1 CD

Procurement Team with assistance from DAC

Prior Review by NPMT 17. Required for all contracts regardless of the

amount for all Local bidding for Works. a. Request for NOL from NPMO. To be

attached to the request are: RTA, draft contract, form of bids, bidding documents and all other supporting documents (send only photo copy except for request letter).

b. Reviews the contract and supporting documents and recommends issuance of NOL

c. Issues No Objection Letter (NOL)

1 CD 1 CD 5 CD

BSPMC Chairperson NPMO Staff NPM

• Issuance of Notice of Award 18. Prepares Notice of Award

a. Approves Notice of Award(NOA)

b. Delivers Notice of Award and contract

to successful bidder

c. Signs Conforme on the Notice of Award

1 CD upon receipt of NOL w/ in same day 1 CD 2 CD

Procurement Team BSPMC Chairman Procurement Team Contractor

• Posting of Performance Security 19. Posts Performance Security

Forms of performance security: a. Cash, certified check, cashier’s check,

manager’s check, 5% of contract price b. Bank guarantee, 10% of contract price

Note: If security is in the form of cash or check, then it should be deposited in the BSPMC account by the winning bidder and submit to BSPMC the deposit slip with bank validation.

5 CD from receipt of NOA

Contractor

Contract Signing/Approval 20. Signs the contract and returns it to BSPMC

Sign as witness Approves the Contract

5 WD upon receipt of NOA 1 CD 1 CD

Contractor witness BSPMC Chair

Post-qualification – is the process of verifying, validating and ascertaining all the statements made and documents submitted by the bidder with the LCRQ, which includes ascertaining the said bidder’s compliance with the legal, financial and technical requirements of the bid. Who conducts Post-qualification evaluation? Procurement Team with the assistance of TWG.

For performance guarantees in the form of cash for contracts that are nearing the end of KALAHI-CIDSS project, such guarantee shall be replaced with a bank guarantee from a reputable commercial bank.



ACT PARTICIPATION

• Issuance of Notice to Commence 21. Prepares Notice to Commence;

Signs Notice to Commence Delivers Notice to Commence Provides LGU COA, RPMO and Contractor copy of signed and notarized contract

1 CD 1 CD w/ in same day 1 CD

Procurement Team BSPMC Chairperson Procurement Team Procurement Team

• Mobilization and Starts of Works 22. Mobilizes and starts works

w/ in 7 days from receipt of Notice To Commence

Contractor

• Advance Payment 23. Contractor has the option to claim advance

payment equivalent to 15% of the contract price subject to compliance of the ff: requirement: a. Certification from DAC that equipment

and materials are already on the jobsite.

b. Bank guarantee equivalent to the amount requested.

Within 3 CD Barangay Treasurer

• Monitoring and Supervision 24. Monitor execution of the contract

daily

PIT, MIT



As often as necessary

Mun. Engr. DAC, RIE, AC

• Payment 26. Process payment based on accomplishment

approved by BSPMC Chairperson as recommended by PIT noted by Municipal Engineer A. Processing @ Barangay





• ACT sign the check Signs voucher, logbook and issues Official Receipt

2 CD same day Immediately upon payment

Brgy. Treasurer Contractor

MRB MRB AC

27. Filing and Record Keeping. Compilation of all documents with Community Project Implementation Procurement and Finance Document Filing Checklist on top of the folder. Original copy of the documents compiled and reviewed by the CF will be turn-over to MRB for reproduction at the ACT or RPMT. Distribution of the copies will be original copy for COA, duplicate copy for Barangay and photo copies for ACT and RPMT.

One day

BSPMC-Bookkeeper



PERIOD OF ACTIONS 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

7 CD 7 CD 7 CD 7 CD

Submission and Opening of Bids

1 CD 1 CD 7 CD 7 CD

Bid Evaluation 1 CD 1 CD 1 CD 3 CD Post Qualification

1 CD 3 CD 1 CD 3 CD

SUB- T O T A L 21 CD 28 CD 27 CD 38 CD

Issuance of NOL 5 (RPMO)

5 (NPMO) 15 (WB)

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



SUB- T O T A L 26 CD 38 CD 37 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 32 CD 53 CD 43 CD 53 CD

9.4.3 DEFINITION OF TERMS USED IN LOCAL BIDDING

1. Bid

Bid is a signed offer coming from a supplier/contractor interested to provide goods or undertake infrastructure work for the community.

2. Evaluated Bid

This refers to the corrected bid after evaluation has been completed.

3. Bid Security

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


b. The bid security shall be returned to the bidders only after the successful bidder has signed the Contract and posted the performance security, except if the bidder fails to comply with all the requirements and the bid is marked “failed”.

c. Bidder, who wants to present cash as bid security, shall be instructed to deposit the amount to the community’s bank account and to attach the machine validated deposit slip to the bid documents to be placed in a sealed envelope.

4. Defects Liability Period

This refers to the period from the date of issuance of Certificate of Completion of the works as certified by the BSPMC Chairman up to the date within which, the contractor shall still be liable for defects, shrinkage or other faults as determined by BSPMC. The contractor shall execute all such work needed to amend, reconstruct, or remedy at his own cost.

5. Eligibility Requirements

These refer to qualifications set by the BAC for participating bidders. Some examples of qualifications are:

a. Suppliers must have a SEC Registration, mayor’s permit or municipal

license, or the Cooperative Development Authority, if a cooperative; b. Contractors for works must be either a duly licensed Filipino citizen or

a sole proprietorship, or a duly registered partnership or corporation.

6. Minor Deviations

These are deviations in the bid that can be corrected. Some examples are the following:

a. Computational error such as when the total amount is not equal to the

unit cost times the number of units. In this case, it is the unit cost, which should be taken as the correct amount, and the total price should be corrected.

b. Discounts which do not have pre-conditions should be applied to the

total price to get the net amount.

c. Minor deviations shall be corrected and adjustments shall be computed to determine the calculated price.

d. For MCC-funded sub-project/s: Where applicable, contractors must also pass the revised eligibility verification review, which will ensure that the contractor is not prohibited from receiving U.S. funds.

7. Major Deviations

These are deviations which substantially affect the scope, quality or performance of the works; which limits the community’s rights under the contract; or one that if corrected would affect unfairly the comparative position of other bidders.

The following are examples:


a. Bid contains a different design that does not respond to the contract plans and specifications;

b. Stipulates price adjustment when bid price should be fixed given the short duration of the contract;

c. Proposed timeframe of implementation does not conform to the required period;

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

8. Retention Money Retention fee refers to the 10% amount retained from all progress billings to cover uncorrected discovered defects and third party liabilities. This is mandatory for all contracts with PhP 1M or more in addition to performance Security. For contracts with less than PhP 1M, retention fee is only deducted from the progress billing when there is no Performance Security posted. The retention fee, if not called shall be refunded to the contractor after the expiration of the warranty period. The refund shall not be subjected to Withholding Tax. In case where closing of community account is mandated by the project, the BSPMC shall require the Contractor to convert to Bank Guarantee or Manager’s Check or Cashier’s Check from a reputable bank. Upon receipt of the Bank Guarantee or Manager’s Check or Cashier’s Check, the treasurer shall prepare a Disbursement Voucher and issue a check equal to the amount of retention.

9.4.4 ADDITIONAL GUIDELINES ON LOCAL BIDDING (also applies to Shopping for Works)

1. On receiving sealed bids

a. The BSPMC Chairperson authorizes the Procurement Team members to

receive the sealed bids.

b. At least one Procurement Team member shall be stationed at the barangay hall to receive the bids.

c. Receiving Procurement Team member should be advised to accept

only bid documents that are contained in one sealed envelope with the name of the bidder written outside. Furthermore, that he/she is not authorized to open the envelope.

d. Bids received after the deadline set shall automatically be rejected.

2. Modification and Withdrawal of Bids

a. No bid shall be changed after the deadline for submission of bids.

b. Withdrawal of bid between the deadline for submission and of bids and the expiration of the validity of bid will result in the contractor being disqualified from participating in any KALAHI-CIDSS Project for two (2) years.


3. Bid Opening (On the same day just after the time set as deadline for submission of bids)

a. The Procurement Team prepares a checklist of all the documents

required to be submitted. There should be as many copies of the checklist as the number of participating bidders.

b. Bidders or their representatives and interested barangay residents may observe the bid opening.

c. Bids with incomplete requirements specified in the Invitation to Bid

shall be marked “failed”. All bids with complete requirements shall be marked “passed” and shall be considered for evaluation.

d. Bid security submitted by bidders whose bids were marked “failed”

should be returned.

4. Bid Evaluation

a. The TWG shall assist the BAC in the evaluation of bids. The TWG should explain fully every step in the evaluation process as part of the capacity building of the BSPMC.

b. The following shall be considered in the evaluation:

• The bid must be complete. This means that all the required

items in the bidding documents should be addressed.

• Bid security must conform to the requirements of the Instruction to Bidders, as to type, amount, form and wording, and validity period.

• Minor and major deviations from the terms and conditions

specified in the Instruction to Bidders.

5. Other Bids which should automatically be rejected

a. Late bid submission b. Unsigned bid (using the Form of Bid) c. No acceptable bid security submitted or attached or insufficient bid

security amount (if required) d. After examining all the bids, which have initially been marked

“passed”, and after correcting for minor deviations, the bids shall be ranked from the lowest calculated bid to the highest.

Let us clarify things: What if a calamity such as typhoon or flash flood or other fortuitous event happened during the scheduled submission opening of bids? In such cases, postponing or re-scheduling is allowed for all methods of procurement. However, a certification coming from the A/MCT signed by the Area/Municipal Coordinator shall be attached to minutes during the re-scheduled opening stating the reasons for postponement/re-scheduling. The BAC should give at least 2 days for shopping for goods, at least 5 calendar days to a maximum of 7 calendar days for bidding for goods, shopping for works and bidding for goods as allowance before the re-scheduled opening. The BSPMC Chair should then prepare a Supplemental or Bid Bulletin following the procedures for publication (for bidding for works), posting, personal dissemination to bidders or other possible means to inform service providers of the postponement/re-scheduling.


What if only one bidder submitted a bid? One of the principles of procurement is fairness to mean there should be fair competition

from amongst the service providers. The project would like to ensure that every service provider is given the opportunity to compete in KALAHI-CIDSS’-funded projects. It is then recommended that all possible efforts to invite service providers through publication to regional, local newspapers or even national newspapers, radio, television, internet posting, posting in bulleting boards at the adjacent Provincial, Municipal or Barangay where the community project is located. Personal serving is also encouraged. The BSPMC should not limit preparation of three invitations for quotations/bids. However, under circumstances where limited service providers or if they are disinterested to participate then a single//lone bid can be accepted. If a single/lone bid is submitted, it should not be a ground for declaring a failure of bidding and the BSPMC shall conduct the following:

The BAC will conduct bid evaluation. If bidder passed in the bid evaluation, the lone bidder will be subjected to post

Let us clarify things: What do we mean by late bid submission and what is the basis of the time? For example the time set is 10:00 in the morning and a bidder submitted a bid at 10:01 in the morning then it is clear that the bidder is late by 1 minute. The bid must be rejected by the BAC or the Procurement Team receiving the bids. The basis of time shall be based on a watch or clock at the Barangay agreed, set and synchronized during the pre-bid conference. There is no such thing as Filipino time!

Let us clarify things:

What do we mean by insufficient bid security? The project requires 2% Cash or Check (Manager’s Check or Cashier’s Check or 2% Bank Guarantee from a commercial bank based on the offered bid price. For example: If the bid amount offered is PhP 1,255,000 and the bidder enclosed/submitted/attached an amount of PhP 25,000.00. The amount is lacking by PhP 100.00 that was found out during the preliminary examination using the pas/fail criteria checklist, thus, the bid security is insufficient. The bid offered will be rejected and will not be subjected for evaluation.

Let us clarify things: What if the submitted bid security submitted is lacking by 1 peso? The term “insufficient” referred to in this community procurement manual means

below the minimum bid security requirement therefore, if it is lacking by 1 peso the bid security is INSUFFICIENT and should be rejected. It is however clarified that the limit of computation is in pesos so lacking 1 centavo to 99 centavos is negligible.

What if the bid security submitted was found to be insufficient as a result of

re-calculation during the bid evaluation? In this case, the submitted bid security can be considered since the shortage was not

intentional. The lacking amount shall be paid by the bidder or its representative to the BSPMC treasurer. Failure to pay the additional will be a ground for rejection. The treasurer will deposit the additional amount to the BSPMC account.


qualification evaluation. If he passed in the post qualification evaluation , he will be declared as the Lowest

Calculated and Responsive Bidder.

• If the bidder failed in the bid evaluation, failure of bidding will be declared. In this case, the BAC shall prepare a resolution declaring the failure stating among others, result of the evaluation and/or post-qualification evaluation. Re-bidding will be conducted.

6. Post-Qualification (Within three days after declaration of bidder

with the lowest calculated bid)

a. The BAC, assisted by the Procurement Team shall validate the truthfulness of the eligibility requirements submitted by the bidder with the lowest calculated price. This may involve verifying the availability and condition of the equipment to be used by the bidder. This should be completed within two days from the determination of the lowest calculated bidder. It should be noted that this post-qualification procedure will no longer include an eligibility check of the contractor against the blacklist maintained by the Philippine Contractors Accreditation Board (PCAB).

b. If the bidder passes the post qualification, he/she shall be declared as

the bidder with the Lowest Calculated and Responsive Bid (LCRB). If the bidder fails, the BAC shall immediately notify him in writing.

c. If the lowest bidder failed in the post-qualification, then the second

lowest bidder will be subjected to post qualification. If the second lowest bidder passed in the post qualification, it will be declared as the Lowest Calculated and Responsive Bid.

d. Even if there is a pending request for reconsideration, the BAC shall

undertake post qualification of the next in rank bidder.

e. If the post disqualified bidder submits a request for reconsideration, the BAC shall immediately convene to make a decision taking into consideration the justification or explanation of the bidder. The BAC shall notify the bidder of the decision in writing.

f. If the request for reconsideration is denied and the next in rank bidder

passes the post qualification, the latter shall be declared the bidder with the Lowest Calculated and Responsive Bid.

g. If the second lowest bidder fails in the post qualification, the process

will be repeated for the bidder with the next lowest calculated bid and again be repeated until a bidder is declared as the bidder with the LCRB.

h. If no bidder passes the post qualification, the bidding shall be declared

a failure. Re-bidding will be conducted. If the same situation results from the second bidding, the BSPMC can enter into negotiated contract.


7. Award of Contract (Within five days from post-qualification and declaration of bidder with Lowest Calculated and Responsive Bid) The Notice of Award should be issued within five days after the final declaration of the bidder with LCRB or a day after the receipt of the No Objection from the Regional Project Director. If the first in rank bidder has been disqualified, the BSPMC/BAC shall wait for seven days to determine if the bidder will file a request for reconsideration. If none is received on the eight day, and the next in rank has been post qualified, the Notice of Award can be issued on that eight day.

8. Can the contractor ask for an advance payment? The BSPMC should only allow this if the contractor posts a bank guarantee for the advance payment, which is usually 15% of the total approved contract price.

9. Progress Payments Progress Payment shall be made upon request for payment for every substantial accomplishment not below 20% of the whole contract price as certified by the Project Supervisor noted by Project Implementation Team and or Municipal Engineer and approved by the BSPMC.

What does Post Qualification entail? A: Post–qualification involves the BAC verifying, validating and ascertaining that the bidder satisfies the following: 1. LEGAL Requirements. The post-qualification process under this criterion involves the verification, validation and ascertaining of the contractor’s claim that ii is not included in any government “blacklist,” as well as all the licenses, permits and other documents it submitted, including the following: a. PCAB License; SEC registration or the DTI name registration; Mayor’s permit; BIR Certification which contains the TIN; Authority of the Signatory; contracts for the last 2 years, and, Affidavit of compliance with the Disclosure Provision and other documents specified in the invitation to bid. 2. TECHNICAL Requirements. The BAC would have to verify, validate and ascertain the veracity of the documents submitted by a contractor to prove compliance of the infra project it offered with the requirements of the contract and bidding documents. This involves the following:

a. Verification of the bidder’s stated competence and experience, as well as the competence and experience of its key personnel to be assigned to the project, to ensure that these meet the minimum requirements;

b. Verification of availability and commitment, and/or inspection and testing, of equipment units to be owned or leased by the bidder, as well as checking the performance of the bidder in its ongoing gov’t or private contracts, e.g. examine the Construction Schedule, Construction Methods, Equipment Utilization Schedule, List of projects undertaken or ongoing and to be started.

c. Verification if any bidder’s on-going contracts show: • A reported negative slippage of at least 15%; • Substandard quality of work per contract plans and specifications; • Unsatisfactory performance of his obligations as per contract terms and conditions, at

the time of inspection; or • That the minimum required experience of the bidder’s key personnel were not met;

All of which will be grounds for disqualification if found by the BAC to be due to the bidder’s fault or negligence.

d. Ascertain of the sufficiency of the Bid Security as to type, amount, form and wording, and validity period.

e. other documents specified in the invitation to quote.

3. FINANCIAL Requirements. The BAC ought to verify, validate and ascertain the bid price proposal of the bidder and, whenever applicable, the required bank commitment to provide a credit line to the bidder in the amount specified and over the period stipulated. It also means verifying, validating and ascertaining, the bidder’s stated net worth and liquid assets, net working capital , the value of all outstanding or unfinished works under ongoing contracts, and the bidders NFCC, as recalculated considering developments in the bidders’ other projects. This is also done to ensure that the bidder can sustain the operating cash flow of the transaction. The process involves:

a. Examination of the Bill of Quantities, Detailed Estimates and Cash Flow; b. Ascertaining of the sufficiency of the Bid Security (if required) as to type, amount, form and

wording, and validity period; c. Ascertain the NFCC, credit line, or cash deposit; and, d. Examination of the BIR-audited financial statement.


CHAPTER 10 | PROCUREMENT FORMS and MONITORING FORMS

The Barangay Sub-Project Management Committee Chairman shall submit to the Area Coordinating Team the Actual Community Procurement Packaging and Community Employment Record status on a monthly basis or when making a request for the release of funds. This shall be prepared by the Procurement Team, noted by SP Implementation Team and Brgy. Treasurer and approved by the BSPMC Chairperson. As part of enhanced oversight and support mechanisms, the Regional Project Management Office will also be conducting unannounced visits to barangays to ensure that the ACTs have sufficient support for any issues that may arise, and to conduct spot reviews to ensure correct implementation of KALAHI-CIDSS procedures, particularly with regard to procurement.


SECTION 1 – INSTRUCTIONS TO BIDDERS (for Works Contract Only)

1. Scope of Work: The Barangay Community Project Management Committee of (name of

Barangay), as the Owner, invites bids for the completion of the works indicated in the Invitation To Bid in accordance with the Conditions of Contract (CC). The successful contractor will be expected to complete the works by the Required Completion Date specified in the CC.

2. Eligibility to Bid: Filipino private registered or licensed single proprietors, partnerships or

corporations, or cooperatives engaged in construction of infrastructure projects can participate. Local Government Units or other agencies of government are disqualified from participating.

Each bidder shall submit only one Bid. All Bids submitted in violation of this rule

shall be rejected. In addition, bidders are subject to eligibility verification procedures to ensure that the bidder has not been blacklisted from receiving U.S. Government funds (for MCC-funded sub-project/s). Blacklisted Contractors or Suppliers under the PCAB are not allowed to participate.

3. Qualification of the Bidder: To qualify for award of the Contract, a bidder shall meet the following minimum

qualifying criteria (to be determined by the BSPMC): a) Experience in the work similar in nature to the works in this Invitation; b) Financial capability to successfully complete the works.

4. Site Visit: The Contractor is invited to a group site visit to examine the site of the works

and its surroundings and obtain all information that may be necessary for preparing the bid and entering into a contract.

5. Contents of Bidding Documents for Distribution to Interested Bidders: The set of bidding documents comprises the documents listed below:

Invitation to Bid Section 1 Instructions to Bidders Section 2 Conditions of Contract Section 3 Drawings Section 4 Specifications Section 5 Program of Works (Scope of Works/Bill of Quantities) Section 6 Form of Bid Section 7 Form of Contract Agreement Section 8 Form of Bank Guarantee for Advance Payment Section 9 Form of Bid Security (Bank Guarantee) Section 10 Form of Performance Security

6. Documents Comprising the Bid: The Bid to be submitted by the Contractor shall comprise the following documents (as applicable):


I. TECHNICAL DOCUMENTS

• Form of Bid (in prescribe form) • Program of Works • Plans • Detailed Estimates including summary sheet showing unit prices of

materials, labor rates and rentals • List of equipment owned/leased • Official Receipt (to support owning the equipment for equipment proposed

for use for the contract only) • Certificate of registration (to support owning the equipment for proposed

equipment for use for the contract only) • Schedule of utilization of equipment • List of similar projects undertaken for the last 2 years • Certification that each document submitted is an original or true copy of

the original • Certification from the bidder under oath of its compliance to labor laws

and standards and to utilize unskilled labor in the area • Notarized Affidavit for Defect Liability Commitment • List of Technical personnel • Site Visit Certificate • Detailed Construction method indicating the detailed methodology in

complying with Environmental Laws for the each Item of Work involved, Safety measures

• Bidding data sheet • Product Standard Certification Mark PS Mark License (for pipe materials)

II. FINANCIAL DOCUMENTS

• Latest Income Tax Return w/ audited statement with Taxpayer’s Identification Number

• NFCC • Bid Security – form, amount and validity period; only the following are

acceptable: Cash, cashier’s check, manager’s check, bank draft or irrevocable letter of

credit - 2 % of bid price Bank Guarantee – 2% of bid price

III. LEGAL DOCUMENTS

• Contractor’s License or Temporary Certificate of Renewal (for expired License)

• SEC registration w/ articles of Incorporation (for Corporations) • Authority of the signatory • Contracts (similar contracts for the last two years only) • Certificate of Acceptance (contracts for the last 2 years only) • Affidavit of Undertaking

7. Price Bid:

The Contract shall be for the whole works as described in the Invitation and shall be based on the unit and total price on portion of work items indicated in the Bill of Quantities. The Contractor shall fill in the rates and prices for all items of the Works described in the drawings and specifications listed in the Bill of Quantities. The Owner will not pay for items, which were left blank by the Contractor, if


executed. They shall be deemed covered by the other rates and prices in the Bill of Quantities. All fees and taxes payable by the Contractor under the Contract shall be included in the rates, prices, and total price bid submitted by the Contractor. The contract price quoted by the Contractor shall be fixed for the duration of the Contract and shall not be subject to any price adjustment.

8. Bid Security:

The Bidder shall furnish as part of the Bid, a Bid Security in local currency or in a freely convertible currency, in the amount specified in the Bidding Data.

• The Bid Security shall, at the Bidder’s option, be in the form of a certified

check, bank draft, or bank guarantee from a reputable bank located in the region of the BSPMC.

• Any bid not accompanied by an acceptable Bid Security of a joint venture

must be define as “bidder” all joint venture partners and list them in the following manner: a joint venture consisting of “_____:, “_______”, and “_______’.

• The Bid Security of unsuccessful bidders will be returned within 28 days of

the end of the Bid validity period specified in item 9 • The Bid Security of the successful Bidder will be discharged when the Bidder

has signed the Agreement and furnished the required Performance Security. • The Bid Security may be forfeited

a) if the Bidder withdraws the Bid after Bid opening during the period of Bid validity;

b) if the Bidder does not accept the correction of the Bid Price c) if the successful bidder fails to sign the contract within the specified time

limit to • sign the contract agreement; or • furnish the required Performance Security.

9. Validity of Bid:

The price bid shall remain valid for the period of sixty (60) calendar days counted from the date of the Bid. The BSPMC may request in writing the Contractor/s to extend the period of validity for a specified additional period. The Owner’s request and the Contractors’ responses shall be made in writing. A Contractor may refuse the request for extension of bid validity in which case he may withdraw his Bid without any penalty. A Contractor agreeing to the request will not be required or permitted to change its Bid.

10. Preparation and Sealing of Bids:

The Contractor shall prepare one original and one duplicate copy of the documents comprising the Price Bid. The contractor or person duly authorized by the contractor shall sign the original and duplicate copy of the Price Bid. The person or persons signing the Price Bid shall initial all the pages of the Bid where entries or amendments or corrections have been made. The Contractor shall seal the documents in one envelope addressed to the BSPMC at the specified address and shall provide a warning not to open before the specified time and date for Price Bids opening.


On the upper left-hand corner of the envelope, the contractor shall indicate his/her name and full address. If the envelope is not sealed and marked as above, the Owner will assume no responsibility for the misplacement or premature opening of the Price Bid.

11. Place and Deadline for Submission of Price Bids:

The Price Bids shall be delivered to the Owner NO LATER than ____________ (time, date) at the address given in the Invitation to Bid. Any Bid received by the Owner after the deadline will be returned unopened to the Bidder.

12. Modification and Withdrawal of Bids:

No bids shall be changed after the deadline for submission of Bids specified above. Withdrawal of a Bid between the deadline for submission of Bids and the expiration of the validity of the Bid as specified above will result in the forfeiture of his bid security.

13. Opening of Bids:

The BAC will open the Bids in the presence of the bidders’ representatives who choose to attend, at the time, date, and in the place specified in the Invitation to Bid. The BAC Chairperson shall announce the bidders’ names, the Bid prices, the total amount of each Bid, any discounts, and bid modifications and withdrawals at the Bid opening.

14. Late Bids:

Any Bid received by the BSPMC after the deadline prescribed will be returned unopened.

15. Process to be Confidential:

Information relating to the examination, clarification, evaluation and comparison of quotations and recommendation for the contract award shall not be disclosed until the award to the successful Contractor has been announced.

16. Evaluation and Comparison of Bids:

The BSPMC will award the Contract to the Contractor whose Bid has been determined to be responsive to the specifications of the contract and who has offered the lowest calculated price bid. In evaluating the bids, the BAC will determine for each proposal the calculated price bid by correcting the price bid for any arithmetic errors as follows: • if there is a discrepancy between amounts in figures and in words, the

amount in words will prevail; • if there is a discrepancy between the unit rate and the line item amount

resulting from multiplying the unit rate by the quantity, the unit rate as quoted will prevail;

• If a Contractor refuses to accept the correction, his Bid will be rejected. 17. Award Criteria.

The BSPMC will award the contract to the Bidder whose Bid has been determined to be the Lowest Calculated and Responsive Bid.


18. BSPMC’s Right to Accept Any Bid and to Reject any or all Bids:

The BSPMC has the right to accept or reject any bid/quotation, and to cancel the bidding process and reject all bids, at any time prior to the award of the Contract. The affected Contractor(s) will not hold the BSPMC liable. It is not also obliged to inform the affected Contractor(s) of the grounds for its decision.

19. Notification of Award and Signing of Contract:

The BSPMC shall notify the Contractor of the award in writing prior to the expiration of the validity period of the Bid. This Notice, together with a contract will state the amount that the BSPMC will pay the Contractor in consideration of the execution, completion, and maintenance of the Works by the Contractor as prescribed by the Contract.

20. Performance Security

20.1 Within 21 days after receipt of the Letter of Acceptance the successful Bidder shall deliver to the BSPMC a Performance Security in the amount stipulated in the Contract data and in the form stipulated in the bidding Data.

20.2 Failure of the successful bidder to comply with the requirement of item

20.1 shall constitute sufficient grounds for the cancellation of the award and forfeiture of the Bid Security.

20.3 Performance security in the form of cash or check withheld at the BSPMC account or by the treasurer as the case maybe, shall be replaced with Bank Guarantee or a Manager’s Check or Cashier’s Check after the completion of the contract.

21. Advance Payment:

The BSPMC will only consider providing an Advance Payment if the contractor posts a bank guarantee, or cash for such advance payment.

SECTION 2 – CONDITIONS OF CONTRACT (CC)

1. Definitions:

a) Owner refers to the Community through the Barangay Community Project Management Committee (BSPMC) as represented by its Chairman, a recipient community of KALAHI-CIDSS Project.

b) Contractor is a person, firm or corporate body whose Bid/Quotation to carry out the Work has been accepted by the BSPMC.

c) Bill of Quantities specifies BSPMC’s estimate quantity for each item of work.

d) Activity Schedule means the schedule of execution and completion for a

particular activity.

e) The Completion Date is the date of completion of the Works as certified by the BSPMC.

f) The Contract is the Contract between the BSPMC and the Contractor to

execute, complete, and maintain the Works as specified in the specifications or in other sections of the Contract. The name and identification number of the Contract is given in the Invitation to Bid/Quote.


g) The Contractor’s Price Bid is the completed document (Invitation to

Bid/Quote together with attachments) submitted by the Contractor to the BSPMC.

h) Contract Price is ___________________________ (P_________).

i) Days are calendar days; months are calendar months.

j) A Defect is any part of the Works not completed in accordance with the

Contract.

k) The Defects Liability Period for infrastructure projects shall be one year from project completion up to final acceptance by the BSPMC. During this period the contractor shall undertake the repair work at his own expenses, of any damage to the infrastructure projects on the account of the use of materials of inferior quality within 45 days from the time the BSPMC Chairperson has issued an order to undertake repair. In case of failure or refusal to comply with this mandate, the BSPMC shall undertake the repair works and shall be entitled to full reimbursement of expenses incurred thereon upon demand.

Any contractor who fails to comply with the preceding paragraph shall be perpetually disqualified from participating in any public bidding and his property or properties will be subjected to attachment or garnishment proceedings to recover the costs. All payable of the BSPMC, in the contractor’s favor shall be offset to recover the costs.

l) Equipment is the Contractor’s machinery and vehicles brought temporarily

to the Site to construct the Works. m) Materials are all supplies, including consumables, used by the Contractor for

incorporation in the Works.

n) Project Supervisor is the person appointed by the BSPMC and who is responsible for day to day supervising the execution of the Works and administering the Contract. • The designated Project Supervisor for this contract is

___________________

• The Required Completion Date is the date on which it is required that the Contractor shall complete the Works.

• The Required Completion date is __________________. The BSPMC may

agree to revise The Required Completion Date subject to prior clearance from the Regional Project Management Office (RPMO).

o) Specification means the description of the Works included in the Contract.

and any modification or addition made or approved by the BSPMC. p) The Site is ______________________________________________.

q) The Start Date is _________________________. It is the date indicated in

the Notice to Proceed for commencement of the Works.

r) The Variation is an instruction given by the BSPMC, which changes the scope of the original Work requirements. In case of materials and drawings alteration this should have prior clearance from RPMO.


2. Conformity to Government Regulations:

The Contract shall conform with the provisions of any national or local Government laws and regulations which may be applicable to the works Among such regulations or laws are: • Employment of unskilled local labor. 1OO% unskilled labor force shall

come from the barangay where the community project is located. The contractor shall also comply with the rules on hours and conditions of work, general health regulations, and safety and health precautions.

• Traffic regulations, including provision of adequate warning signs and traffic barriers.

• Environmental protection. The Contractor shall carefully plan and conduct his works in a manner, which will minimize the negative impact on the environment. In particular, the Contractor shall not interfere with or pollute in any way irrigation channels or watercourses. Borrow pits shall only be worked at the location and in particular, the pits shall be left in a condition that it is not a safety or a health hazard due to stagnant water collection.

3. Communications:

Communications between parties that are referred to in these Conditions shall be effective only when made in writing. A notice shall be effective only when it is delivered.

4. Contractor’s Risks:

From the Starting Date until the Project Supervisor has issued a certificate for the correction of any Defects, the risks of personal injury, death, and loss or damage to property and adjacent property (including, without limitation, the Works, materials and equipment) are Contractor’s risks.

5. Works to be completed by the Completion Date:

The Contractor shall start execution of the Works on the Start Date and shall carry out the Works in accordance with the work schedule submitted by the Contractor, as updated with the approval of the Project Supervisor, and complete them by the Required Completion Date.

6. Safety:

The Contractor shall be responsible for the safety of all activities on the Site.

7. Extension of the Completion Date:

The BSPMC shall extend the completion date subject to prior clearance from RPMO.

8. Delays Ordered by the Project Supervisor: The BSPMC may instruct the Contractor through the Project Supervisor to delay the start or progress of any activity within the Works, provided consultation has been made with the Regional Project Management Office (RPMO).

9. Defects:

The BSPMC shall give notice to the Contractor of any defects before the end of the Defects Liability Period, which begins at Project Completion and Acceptance. The Defects Liability Period shall be extended for as long as defects remain


uncorrected. Every time notice of a defect is given, the Contractor shall correct the notified defect within the length of time specified in the Project Supervisor’s notice. If the Contractor has not corrected a defect within the time specified by the Project Supervisor’s notice, the Project Supervisor will assess the cost of having the defect corrected. The Contractor will pay this amount. BSPMC shall recover these amounts by deducting from the amounts due to the Contractor. Failure by the Contractor to pay the BSPMC will be a ground to disqualify him from participating from other KALAHI-CIDSS community project.

After final acceptance of the project, the contractor shall be held responsible for structural defects and/or failure of the completed project within the warranty period (as provided in Sec 62 of the Revised IRR 9184) from final acceptance, except those occasioned by force majeure and those caused by other parties.

10. Program:

Within seven (7) days of the written notification of award, the Contractor shall submit to the Project Supervisor for approval a Program showing the general methods, arrangements, order, and timing for all activities of the Works. The BSPMC approval of the Program shall not change the Contractor’s obligations. The Contractor may revise the Program and submit it to the Project Supervisor again at any time. A revised Program will show the effect of the changes.

11. Activity Schedule:

The Contractor shall provide updated Activity Schedules within ten (10) days of being instructed by the Project Supervisor. The activities on the Activity Schedule will be coordinated with the activities of the Program.

12. Changes in Quantities:

The Contractor shall carry out all the activities and complete them in accordance with the scope of works specified in the Contract as part of the prices in the Activity Schedule, which shall not be subject to any change. In the case of unit rate contracts no adjustment in the unit rate shall be made if the variation in quantity does not exceed 25% of the entire estimated quantity. If the variation exceeds 25%, the Project Supervisor will determine if there is any justification to revise the unit price, based on information provided by the Contractor, and will fix such rate as he deems appropriate with the approval of the BSPMC. The BSPM shall secure clearance from RPMO prior to any changes in quantities.

13. Payment Certificate:

The Project Supervisor shall check the Contractor’s executed work and certify the amount to be paid to the Contractor. The value of work executed shall comprise the value of completed items of work or activities in the Activity Schedule.

14. Payments:

Payments shall be adjusted for deductions on account of advance payments and retention money. The BSPMC shall pay the Contractor the amounts certified by the Project Supervisor within thirty (30) days of the date of each certificate. The Contractor may request payment every substantial accomplishment not below 20% of total contract amount.


15. Retention:

Retention fee refers to the 10% amount retained from all progress billings to cover uncorrected discovered defects and third party liabilities. This is mandatory for all contracts with PhP 1M or more in addition to performance Security. For contracts with less than PhP 1M, retention fee is only deducted from the progress billing when there is no Performance Security posted. The retentionfee, if not called shall be refunded to the contractor after the expiration of the warranty period. The refund shall not be subjected to Withholding Tax. In case where closing of community account is mandated by the project, the BSPMC shall require the Contractor to convert to Bank Guarantee or Manager’s Check or Cashier’s Check from a reputable bank. Upon receipt of the Bank Guarantee or Manager’s Check or Cashier’s Check, the treasurer shall prepare a Disbursement Voucher and issue a check equal to the amount of retention.

16. Taxes:

The Contractor is responsible for all taxes in accordance with Philippine laws and ordinances of the local government units.

17. Advance Payment:

The BSPMC may make advance payment to the Contractor in the amount up to fifteen (15) percent of the Initial Contract Price only after the DAC had certified materials and equipment presence on site and the Contractor has provided Bank Guarantee of equal amount. If there is no Bank Guarantee posted by the Contractor, at his request the BSPMC may make payment directly to the supplier after the delivery and acceptance of materials.

The advance payment shall be repaid by making deductions for every progress billing with consideration that it is fully recoup upon reaching 80% physical accomplishment. The first recoupment shall start when accomplishment has reached 20% of the total contract price.

18. Completion and Taking Over:

The Contractor shall request the BSPMC to issue a certificate of completion of the Works. The Project Supervisor will recommend such a certificate when he determines that the work is satisfactorily completed. The BSPMC shall take possession of the site within seven (7) days upon issuance of certificate of completion of the Works.

19. Final Account: The Contractor shall supply the Project Supervisor with a detailed account of the total amount that the Contractor considers payable under the Contract before the end of the Defects Liability Period. The Project Supervisor shall issue a Defects Liability Certificate after the Contractor has fulfilled its obligation under the Contract to this end and certify any final payment that is due to the Contractor within fifteen (15) days of receiving the Contractor’s account if it is correct and complete. If it is not, the Project Supervisor shall issue within fifteen (15) days a schedule that states the scope of the corrections or changes that are necessary. If the Final Account is still unsatisfactory after it has been resubmitted, the Project


Supervisor shall decide on the amount payable to the Contractor and issue a payment certificate.

20. Suspension:

The Contractor may suspend the Contract if a payment certified by the Project Supervisor is not paid by the BSPMC to the Contractor within thirty (30) days of the date of the Project Supervisor’s Certificate

21. Termination:

The BSPMC or the Contractor may terminate the Contract if the either party causes a fundamental breach of the Contract. Fundamental breaches of Contract shall include, but shall not be limited to, the following: a) The Contractor stops work for ten (10) days when the stoppage has not been

authorized by the Project Supervisor;

b) The Project Supervisor gives notice that the Contractor has failed to correct a Defect within twenty one (21) days as determined by the Project Supervisor; and

c) The Contractor has delayed the completion of the works by thirty (30) calendar days.

d) If payment certified by the Project Supervisor is not paid by BSPMC within ninety (90) days.

e) If the contractor incurred a minimum of negative fifteen percent (-15%) slippage but remains dormant for 21 calendar days despite receipt of the warning letter from the BSPMC.

f) If the termination is due to failure of the contractor to complete the

works within the specified duration in the contract agreement or any extended period approved by the BSPMC, the performance security and retention money shall be forfeited in favor of the BSPMC and shall be used for the community project.

g) If the contractor is terminated due to breach of contract, the contractor

will be blacklisted in all DSWD- KALAHI-CIDSS-funded projects. The CIAP-PCAB will also be furnished about the termination.

Notwithstanding the above, the BSPMC with the concurrence of the RPMT may terminate the Contract for its convenience by giving the Contractor a fifteen (15) days notice in writing. If the Contract is terminated, the Contractor shall stop work immediately, make the Site safe and secure, and leave the Site within seven (7) days of the completion of the notice period.

22. Force Majeure:

Either party may terminate the Contract by giving a thirty (30) days notice to the other for events beyond the party’s control, such as Wars and acts of God such as earthquakes, floods, fires, etc.

23. Payment upon Termination:


If the Contract is terminated because of a fundamental breach of Contract by the Contractor, the Project Supervisor shall issue a certificate for the value of the work completed and for the materials already ordered LESS the advance payments received up to the date of the issue of the certificate. If the total amount payable to the BSPMC exceeds any payment due to the Contractor, the difference shall be a debt payable by the Contractor to the BSPMC. . As such, the performance security will be forfeited and shall be used by the BSPMC for the remaining works or for further improvement of the community project.

24. Property:

All materials and construction equipment on the site, temporary works, and Works shall be deemed to be the property of the BSPMC if the Contract is terminated because of the Contractor’s default.

25. Penalties:

Failure by the Contractor to complete the works within the implementation period or any extended period approved by the BSPMC shall render the Contractor liable to forfeit 1/10 of 1% of the value of uncompleted works per calendar day of delay. Total penalty shall not exceed 10% of the total contract price.

26. Resolution of Disputes:

The BSPMC and the Contractor shall make every effort to resolve amicably by direct negotiations any disagreement or dispute arising between them under or in connection with the Contract. The disagreement may also be presented to appropriate Grievance Officer/Unit of KALAHI-CIDSS. In case of further disagreement either party can take the matter to arbitration in accordance with the Law governing the Contract.

SECTION 3 – DRAWINGS TO ATTACH DRAWINGS

SECTION 4 – TECHNICAL SPECIFICATION TO ATTACH SPECIFICATIONS

SECTION 5 – PROGRAM OF WORKS /SCOPE OF WORK


SECTION 6 – FORM OF BID

Date: ___________________

To: Barangay Community Project Management Committee

Barangay Hall (Employer’s Address) Barangay _____________, Municipality of ___________________

Province of ___________________________ We offer to execute the _____________________________________________ (name of Community Project) in accordance with the Conditions of Contract accompanying this Bid for the Contract Price of ____________________________ (amount in words and in figures) (__________) Philippine Pesos. We propose to complete the Contract within a period of _______________ (words and numbers) _______________calendar days from the Start Date. This Bid and your written acceptance will constitute a binding Contract between us. We understand that you are not bound to accept the lowest or any Bid receive. We hereby confirm that this Bid complies with the Validity of the Bid required by the proposal documents. Address _________________________ Authorized Signature: _________________________ Name and Title of Signatory: _________________________ Name of Firm: _________________________ Address: _________________________ Phone Number: _________________________ Fax number _________________________


SECTION 7 – FORM OF CONTRACT AGREEMENT

FOR WORKS (PROCURED UNDER LS, LB, DC)

AGREEMENT

This Agreement, made the _____ day of ___________ 200__, by and between Barangay _________________________ (name of Barangay) Community Project Management Committee (BSPMC) with official address at __________________________________ (address) herein represented by ______________________ (name of BSPMC Chairperson) hereinafter called ‘the Owner”)

and

________________________________________________ (name of firm) with official address at __________________________________________________ _________________ represented by _____________________________ (name of manager) hereinafter called “the Contractor”) of the other part. Whereas the Owner is desirous that the Contractor execute the ______________________________________________________________________________________________________________________________________________________ (name of Contract hereinafter called “the Works”) And the Owner has accepted the bid/quotation submitted by the Contractor for the execution and completion of such Works and remedying of any defects therein. Now this Agreement witnesseth as follows:

1. In this Agreement, words and expressions shall have the same meanings as are

respectively assigned to them in the Conditions of Contract hereinafter referred to, and they shall be deemed to form and be read and construed as part of this Agreement.

2. The following document shall be deemed to form and be read and construed as

part of this Agreement, viz: (Note: select only appropriate method and applicable documents):

For Local Bidding (LB) For Local Shopping (LS) & Direct

Contracting (DC) - Form of Bid (incl. detailed costing) - Invitation to Quote - Invitation to Bid - Abstract of Quotation - Instruction To Bidders (for works) - Conditions of the Contract - Conditions of Contract (for works) - No Objection Letter (NOL) - Engineering Drawings - Notice of Award (with conforme) - Technical Specification - Notice to Proceed - Program of Works/Scope of Works - Performance Security - Bid Security - Bank Guarantee (if any) - Schedule of Construction - List of Equipment/Personnel - List of Equipment/Personnel - Resolution of Award - Abstract of Bids - No Objection Letter (NOL)


- Notice of Award (conforme signed) - Notice to Proceed - Performance Security - Bank Guarantee (if any) - Credit Line from Supplier/Bank (if req’d) - Addenda to Instruction (if any)

3. In consideration of the payments to be made by the Owner to the Contractor as hereinafter mentioned, the Contractor hereby covenents with Owner to execute and complete the works within ___ calendar days and remedy any defects therein inconformity in all respects with the provisions of the Contract.

4. The Owner hereby covenants to commits to pay the Contractor in consideration and completion of the Works and remedying of defects wherein the Contract Price or such other sum as may become payable under the provisions of the Contract at the time and in the manner prescribed by the Contract.

In Witness whereof the parties thereto have caused this Agreement to be executed this _____ day of _____________ 200_. For the Contract Group For the Owner _________________________ _________________________ Group Leader BSPMC Chairperson Funds Available _________________________ Barangay Treasurer


Republic of the Philippines Municipality of ____________

ACKNOWLEDGEMENT

BEFORE ME, Notary Public for and the Municipality of ____________________, personally appeared ___________________________ (name of BSPM Chairman) with residence certificate No. _________________ issued on _________________ at ________________________ in his capacity as Chairman of Community Project Management Committee of Barangay _______________________ (name of barangay) and ___________________________ (name of manager/owner) with residence certificate No. __________________ issued on _________________ at __________________________ in his capacity as manager/owner of _______________________ (name of firm) known to me to be the same person who executed the foregoing Contract and Agreement and they acknowledge to me that the same is their true act and deeds for and behalf of the party they represent. This instrument consists of (three) pages including this page on which the ACKNOWLEDGEMENT is written duly signed by the Contracting Parties and their witnesses. IN WITNESS WHEREOF, I have hereunto affixed my signature and seals this ______ day of _____________________, 200_ at ______________________. NOTARY PUBLIC Until December ___, 200___ PTR NO. ______________ Issued at ______________ Issued on ______________ Doc. No. ______________ Page No. ______________ Book No. ______________ Series of ______________


SECTION 8 – BANK GUARANTEE FOR ADVANCE PAYMENT Bank Letterhead

To: (Name of Owner) (Address of Owner) (Name of Contract) Gentlemen: 1. In accordance with the provisions of the above mentioned Contract,

___________________________ {name and address of the Contractor}(hereinafter called “the Contractor”) shall deposit in favor of ________________________ {name of BSPMC} a Bank Guarantee to guarantee his proper and faithful performance under the said Clause of the Contract in an amount of __________{amount of Guarantee} _______________________{amount in words}.

2. We, the _______________________ {Bank or Financial Institution}, as instructed by the Contractor, agree unconditionally and irrevocable to guarantee as primary obligator and not as Surety merely, the payment to ___________________________ {name of BSPMC} on his first demand without whatsoever right of objection on our part and without his first claim to the Contractor, in the amount not exceeding _______________________ {amount of Guarantee}______________________________ {amount in words}.

3. We further agree that no change or addition to or other modification of the terms of the Contract or of the Works to be performed under the Contract which may be made between ______________________ {name of BSPMC} and the Contractor, shall in any way release us from any liability under this Guarantee, and we hereby waive notice of any such change, addition, or modification.

4. The Guarantee shall remain valid and in full effect from the date of the advance payment under the Contract until ___________________{name of BSPMC} receives full payment of the same amount from the Contractor.

Yours truly,

SIGNATURE AND SEAL _________________________ Name of Bank/Financial Institution _________________________ Address _________________________ Date _________________________ NOTED: Authorized Signature of the Firm _________________________ Name of Contractor _________________________ Date _________________________


Bank Letterhead

ANNEX 7

FORM OF BID SECURITY (BANK GUARANTEE) WHEREAS, ___________________________________ (hereinafter called “the Bidder”) has submitted his bid dated _____________________ for the execution of _________________________________________ (name of contract) (hereinafter called “the Bid”) KNOW ALL MEN by these presents that We _________________________ (name of bank) having our registered office at ________________________________________________ (hereinafter called “the Bank”) are bound unto the __________________ Barangay Community Project Management Committee (hereinafter called “the Owner”) in the sum of _____________________________________ (P__________) for which payment well and truly to be made to the said Owner, the Bank binds himself, his successors and assigns by these presents. SEALED with the Common Seal of the said Bank this _____day of ________, 200_. THE CONDITIONS of this Obligation are: 1. If the Bidder withdraws his Bid during the period of bid validity specified in the Bid

Form; or

2. If the bidder having been notified of the acceptance of his Bid by the Owner during the period of bid validity:

a. fails or refuses to execute the Contract in accordance with the Bidding

Documents, if required; or b. fails or refuses to furnish the Performance Security, in accordance with the

Bidding Documents. 3. If the bidder refuses to accept the correction of error in his bid; We undertake to pay to the Owner up to the above amount upon receipt of his first written demand, without the Owner having to substantiate his demand, provided that in his demand, the Owner will note that the amount claimed by him is due to him owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions. This Guarantee will remain in force up to and including the date, ____________ 28 days after the closing date for submission of bids as stated in the Bidding Documents or as extended by you at any time prior to this date, notice of which extension to the Bank being hereby waived, and any demand in respect thereof should reach the Bank not later than the above date. Date: _________________________ Signature and Seal: _________________________ Name of Bank: _________________________ Address: _________________________ Witness: _________________________


ANNEX 8 KALAHI-CIDSS PROJECT

PROCUREMENT OF WORKS – EVALUATION FORM

Barangay: ___________________________ Municipality: ___________________________ Province: ___________________________

1. Community Project Title: _________________________ 2. Name Contract: _________________________ 3. Indicative Estimate: _________________________ 4. Contract Duration: _________________________ 5. Bidders

CONTRACTOR’S NAME SUBMITTED BID PRICE

EVALUATED BID PRICE RANKING

6. Any issues (to be) discussed or clarified with the bidder before finalization of

contract. Give details. Signatures of Evaluators:

TWG Members Present

_________________________ _________________________

_________________________ _________________________

_________________________ _________________________ Date: ___________________



BIDS AND AWARDS COMMITTEE


Date: ___________________

RESOLUTION TO AWARD

WHEREAS, the Invitation to Bid for this contract has been issued to interested bidders. WHEREAS, in response to the invitation, ___________ (number of contractors) submitted their bids. WHEREAS, the result of the evaluation is as follows: NAME OF BIDDERS BID AMOUNT AS EVALUATED 1. 2. 3. WHEREAS, the indicative estimate for this contract is _____________________________________________ (P_________). WHEREAS, in the evaluation of the BAC, the bid of _______________________________ in the amount of ____________________________________ (P _________) is found to be the lowest calculated and responsive bid, and is the most advantageous to the Barangay. WHEREAS, this community project is partly financed by the __________________ (state name of donor e.g. World Bank, Millennium Challenge Corporation, PODER, etc..).

NOW, THEREFORE, THE BIDS AND AWARDS COMMITTEE AFTER A THOROUGH DELIBERATION, RESOLVED TO RECOMMEND AS IT HEREBY RECOMMENDS TO ACCEPT THE BID AND AWARD THE CONTRACT TO: _____________________________________________________________________________________________________________ IN THE TOTAL AMOUNT OF ____________________________________________ PESOS (P__________). Done in the Barangay of __________________________ this _________ day of 200_. BIDS AND AWARDS COMMITTEE _________________________ BAC Chairperson Approved By:


_________________________ BSPMC Chairperson Date: ___________________



Date: ___________________

NOTICE OF AWARD

Sir/Madam: Contract Title: ___________________________ The above contract is hereby awarded to you according to the terms and conditions of your bid as contained in your proposal submitted to us in the of amount of _______________________________________________ (P________). In accordance with the provisions of the Tender Documents, you are instructed to enter into and execute the Contract Agreement with us and to furnish us the following documents, which will form part of the Contract Agreement within five (5) calendar days upon receipt of this Notice of Award. (If contract price is P1Million or more)

a. Performance Security shall be callable on demand, co-terminus with the community project and shall either be in the form prescribed as follows: i. Cash, Manager’s Check, Cashier’s Check, Irrevocable Letter of Credit – Five

Percent (5%) of the total contract price ii. Bank Draft/Guarantee – Ten Percent (10%) of the total contract cost price

b. Construction Schedule and S curve.

Very truly yours,

_________________________ Chairperson, Barangay Community Project Management Committee

CONFORME: _________________________



BARANGAY COMMUNITY PROJECTS MANAGEMENT COMMITTEE


Date: ___________________

NOTICE TO COMMENCE

Sir/Madam: Community Project Title: _________________________ Pursuant to your Contract Agreement dated ____________________ with the ____________________________ Barangay Community Project Management Committee for the _________________(Name of Community Project__________ under the Kalahi-CIDSS: KKB Project, you are hereby directed to start the work within 7 days upon receipt of this notice in accordance with the provisions of the Contract Documents. Please acknowledge receipt of this Notice to Commence. _________________________ BSPMC Chairperson Date: ___________________ Received Original on: _________________________ (Date) By: ________________________________________________ (Name, Signature and Position of authorized representative)


ANNEX 12 PERFORMANCE SECURITY

BANK GUARANTEE

To: The __________________________

Barangay Community Project Management Committee ______(Address of BSPMC)_______

__________________________

WHEREAS ________________________________ (Name and Address of Contractor), hereinafter called “the Contractor” has undertaken, in pursuance of Contract No. __________ dated _________________ to execute ______________________________________________________________ (Name of Contract and brief description of works), hereinafter called “the Contract”; AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his obligation in accordance with the Contract; AND WHEREAS we have agreed to give the Contract such a Bank Guarantee; NOW THEREFORE, we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of ____________________________________ ____________________ (amount of Guarantee in words), such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of ________________________________ (amount of Guarantee) as aforesaid without your needing to prove or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the demand. We further agree that no change or addition to or other modifications of the terms of the Contract or of the Works to be performed hereunder or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification. This guarantee shall be valid until the date of issue of the Defects Liability Certificate. Signature and Seal of Guarantor _________________________ Name of Bank _________________________ Address _________________________


Bidding Data

Name of Community Project: _____________________________________________

The Grantee is the Government of the Philippines

The Owner is the (Barangay Community Project Committee)

The Project Implementation Unit is the Barangay Community

Project Committee, LGU of __________________________. (Name of Mun./ City)

The project Engineer is ___________________________________________ ( Name of Engineer to be assigned)

III.b.2 Invitation to Bid Number (Project Number from POW )

III.a.1(a), III.a.1(b)

The Location of the Works is in: _________________________________________________ (Name of BSPMC-, Brgy. , Municipality/City, Province )

III.b.1(b) The works are:

Item No. Works Breakdown Structure Quantity ( Refer to the Approved Program of Work )

III.b.1 [ x ] Site Visit is Obligatory on ( exact date, time and place of assembly)

III.b.4 Bids must be address as follows

The BSPMC Chairperson Barangay Community Project Committee-Name of Barangay _________________ Municipality/ City/ Province Bids may be delivered by hand, mail, or messenger/courier and must be received by the above address not later than (Bidding Date and Time as published on the Invitation to Bid )

III.b.6© Alternative Proposal are not acceptable

III.c.2

The language of the bid shall be in English

III.c.3© Program to train very small contractor [ ] Yes [ ] No

III.c.4 The currency of the bid is Philippine Pesos


Payment will be made in [ X ] Local Currency Only

III.c.5 The period of Bid validity shall be [60] days after the deadline for Bid submission specified in the Bidding Data.

III.c.6 The minimum amount of Bid Security shall be [Bid amount as provided in the Invitation to Bid] or an equivalent amount in a freely convertible currency. Validity or bid security _______(date) _____________ [note: this should be 28 days after the validity period of the bids, as shown in III.c.5 Form of Bid Security shall be 2% Cash [ ]; manager’s Check[ ]; Bank Draft[ ]; Certified Check [ ]

III.d.1 Opening of Bids: ( Date, Time and place as indicated on the Invitation to Bid publication )

III.d.4(a) Minimum requirements for staff, plant & equipment and construction schedule: ( to be decided by the BSPMC -BAC ) itemized: Example 1. Staff 2. Plant and Equipment 3. Construction Schedule 4. others

III.c.2; IV.a.4 Bids should be offered in: [ ] Unit Prices [ ] Lump Sum [ ] Combination of both

III.f.3; IV.d.6(b)

[ ] Performance Security 10% of contract price using Bank Guarantee [ Retention of Payments

III.f.5(a) Advance Payment: 15% of contract price

III.Doc.#6(4) Bill of Quantity and IV.d.1(a)

Day works [No of days] should be quoted

Note: To be filled-up by the BSPMC before the Issuance of Invitation to Bid, issuance of bidding documents and will form part of the Tender Documents.

Figures on parenthesis (bold and italic) should be deleted and replaced with the required data.


Note: 1. Quotation must be valid for 15 calendar days. 2. Prices quoted must include taxes and other incidental expenses. 3. Price quoted must be fixed for 15 calendar days.

4. Cost of delivery: □ to include □ not to include 5. Award shall be made: □ on per item basis □ on per package basis

________________ BSPMC Chairperson

Canvass Submitted by: ______________________ Signature over Printed Name Owner/Manager Date: __________

KALAHI-CIDSS Project CANVASS FORM/Request for Quotation

(for GOODS)

Barangay: ___________________________ Municipality: _________________________ Province: ____________________________

DATE: ______________ To: _______________________ (Name of Supplier/Store) Address:______________________________ Tel. No. :______________________________ May we request you to indicate your prices for the items listed below? Please return this form to the canvasser in sealed envelope or submit it to the Barangay Community Project Management Committee at the Barangay hall on or before _______ (time), _____________ (date).Immediately after the deadline of submission, canvass will be opened.

Item No.

Description QTY Unit Unit Price

Total Price

TOTAL AMOUNT P MODE OF PAYMENT DELIVERY PERIOD : __________ cal. Days Canvassers Names and Signatures 1. _________________________________ 2. _________________________________


Kalahi-CIDSS Project ABSTRACT OF CANVASS/Quotation

(Local Shopping for Goods) Barangay: ___________________________ Municipality: _________________________ Province: ____________________________

Item No.

Description/Specifications Qty. Unit Name of Supplier Name of Supplier Name of Supplier Unit

Price Total Unit Price Total Unit

Price Total

1. 2. 3 4 5 6 7 TOTAL Encircled is/are the price/s evaluated to be the lowest calculated and responsive quotations/s Award is hereby recommended to this/these supplier/s. BIDS AND AWARDS COMMITTEE APPROVED BY: ____________________________ ____________________________ _________________________ BSPMC CHAIRPERSON ____________________________ DATE: ___________________ BAC Chairman


KALAHI-CIDSS PROJECT

Barangay: ____________________________ Municipality: ___________________________ Province: _____________________________

PURCHASE ORDER

Name of Supplier: P.O. No.

_________________ Address: Date:___________________ In accordance with the canvass dated ___________, the Community Project Management Committee (BSPMC) off Barangay ______________________________ requests you to supply and deliver the items detailed below:

Item No.

Description / Specification Quantity Unit Unit Price Total Amount

TOTAL AMOUNT OF THIS PURCHASE ORDER TERMS & CONDITIONS: Deliver to _______________ (Place) ________________________ on or before _______ (Date) __________. In case of delay in delivery, 1/10 of 1% of the price of each item not delivered will be deducted from the total amount due for each day of delay (weekends, and holidays included). Payment Mode is by Check upon acceptance of completed delivery. BSPMC reserves the right to accept or reject any part of the items delivered which are not in accordance with the specifications. Very truly yours, Chairperson, BSPMC Date

________ Funds Available: ___________________________________________ Date

________ Treasurer Conforme: ______________________________________________ Date ________ (Name and signature of Supplier) Inspected/Tested by:

___________________________________________

Date

Received by: ___________________________________________ Date


LOCAL SHOPPING FORM

Kalahi-CIDSS Project INVITATION TO QUOTE FOR WORKS CONTRACT


Date: _________________ To: _____________________________________________ _____________________________________________ Tel. No. __________________ Sir/Madam: Our community has received a grant from the Department of Social Welfare and Development’s KALAHI-CIDSS Project. The Barangay Community Project Management Committee invites you to submit a quotation to construct and complete, on behalf of the community and according to the conditions of this Invitation, the whole of the work items for said project broken down as follows: Name of Community Project: _____________________________________________________

Work Item No.

Scope of Works Qty Unit Unit Cost

Total

TOTAL To assist you in the preparation of your price quotation, we enclosed the necessary drawings and specifications. Your quotation should be sealed in an envelope and addressed to the undersigned at the following address: The Barangay Community Project Management Committee Attention: Bids and Awards Committee Barangay Hall, Barangay ______________________


Municipality of _________________, Province of ________________ Your quotation shall be valid for a period of forty five (45) days from the date of submission of the quotation. Quotation shall be fixed for four (4) months. Price quoted must include taxes and other incidental expenses. It is understood that the contractor shall complete all works enumerated at the total quoted price. Minor works not listed therein but are necessary to execute the work items are deemed part of these work items. Likewise, the contractor agree to utilize local labor incase the contract is awarded to the firm. A contractor who withdraws his quotation during the validity period and/or refuses to accept the award of the contract will be permanently disqualified from participating in any Kalahi-CIDSS funded community projects: Attached for your information and guidance is the Draft Contract with its Terms and Conditions. Your quotation should be received by the BSPMC on or before _______________ (date and time). The Quotations shall be opened in public in your or your representative’s presence if you choose to attend, on ___________________ (same date as deadline for bid submission) at ____ (time) (same as the deadline for bid submission) at the given address: Please attach to your quotation with the following documents: Please attach to your quotation with the requirements provided in the Instructions to Bidders containing the following:

I. Technical Documents; II. Legal Documents; and, III. Financial Documents except Bid Security

Very truly yours,

__________________________

BSMPC Chairperson Quotation Submitted by: ____________________ ________________________ ___________ Name of Firm Signature over Printed Name Date Owner/Manager


LOCAL SHOPPING for WORKS

ABSTRACT OF QUOTATION

Barangay: _____________________ Municipality: ___________________ Province: ______________________

Name of Project/Contract: _________________________________________

NAME OF CONTRACTOR

AMOUNT REMARKS

1.

2.

3.

4.

Based on the quotations opened on _________________ (date). The quotation submitted by ___________________________ (name of contractor) in the amount of ____________________________________________ (amount in words) P ______ (in figures) was determined after evaluation to be the lowest calculated complying quotation. Therefore, award of the contract is hereby recommended to the said contractor. BIDS AND AWARDS COMMITTEE __________________________ __________________________ __________________________ BAC Chairperson APPROVED BY:

__________________________ BSPMC CHAIRPERSON

Date: __________


CFA

KALAHI-CIDSS Project

INVITATION FOR DIRECT CONTRACTING OF LABOR


Date: __________________ To: _____________________________________________ _____________________________________________ Sir/Madam: Our community has received a grant from the Department of Social Welfare and Development’s KALAHI-CIDSS Project. The Barangay Community Project Management Committee invites you to submit a proposal to construct and complete, on behalf of the community and according to the conditions of this Invitation, the whole of the work items for said community project broken down as follows: Name of Project: ________________________________________________________

Work Item No.

Description of Works Qty Unit Unit Cost

Total

TOTAL To assist you in the preparation of your proposal quotation, we enclosed the necessary drawings and specifications. Your quotation should be sealed in an envelope and addressed to the undersigned at the following address: The Barangay Community Project Management Committee Attention: Bids and Awards Committee Barangay Hall, Barangay ______________________ Municipality of _________________, Province of ________________ Your proposal shall be valid for a period of forty five (45) days from the date of submission. Proposal shall be fixed for four (4) months. Price quoted must include taxes and other incidental expenses. It is understood that the Group shall complete all works


enumerated at the total quoted price. Minor works not listed therein but are necessary to execute the work items are deemed part of these work items. A Group who withdraws his proposal during the validity period and/or refuses to accept award or complete the contract will be disqualified from participating in any Kalahi-CIDSS: KKB funded community project for two years. Attached for your information and guidance is the Draft Contract. Your proposal should be received by the BSPMC on or before _______________ (date and time). The proposal shall be opened in public in your or your representative’s presence if you choose to attend, on ___________________ (same date as deadline for proposal submission) at ____ (time) (same as the deadline for bid submission) at the given address: The Contract Time for this contract is _____________ calendar days Please attach to your proposal the following documents:

• Composition of Group (with their names and signature, address, work assignment, rate per day)

It is understood that the Group shall coordinate with the BSPMC in the execution of the works herein indicated Very truly yours,

_________________________

BAC Chairman Proposal Submitted by: ____________________ ________________________ ____________ Name of Group Leader Signature Date Recommended by: BIDS AND AWARDS COMMITTEE __________________ __________________ ____________________ Member Member BAC Chairman Approved by: __________________ BSPMC Chairperson Date: ___________


CFA- DIRECT CONTRACT OF LABOR

AGREEMENT This Agreement, made this _____ day of ___________ 20___, by and between Barangay _________________________ (name of Barangay) Barangay Sub-project Management Committee (BSPMC) with official address at __________________________________ (address) herein represented by ______________________ (name of BSPMC Chairperson) hereinafter called ‘the Owner” (the party of the first part),

And ________________________________________________ (name of Group Leader) and with official address at Barangay _____________________ Municipality of ___________________________, Province of _____________________________ hereinafter called “Contract Group” (the party of the other part). Whereas the Owner is desirous that the Contract Group execute the works described in the Invitation issued on _______________________ (date) hereinafter called “the Works” And the Owner has accepted the proposal submitted by the Contract Group for the execution and completion of such Works and remedying of any defects therein. Now this Agreement witnesseth as follows:

1. In this Agreement, words and expressions shall have the same meanings as are

respectively assigned to them. 2. The following document shall be deemed to form and be read and construed as

part of this Agreement: - Approved Proposal (for Direct Contracting of Labor) - Composition of Contract Group - General Condition of Contract Agreement - List of Tools provided to the Contract Group - Engineering Drawings - Technical Specification

3. In consideration of the payments to be made by the Owner to the Contract Group as hereinafter mentioned, the Group hereby covenants with the owner to execute and complete the works and remedy any defects therein inconformity in all respects with the provisions of the Contract.

4. The Owner hereby covenants to commits to pay the Group in consideration and

completion of the Works and remedying of defects wherein the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.

5. The Owner shall pay the Group upon completion of the work; the check will be in

the name of the treasurer. 6. The Group commits to complete all the works within _______ (calendar days)


In Witness whereof the parties thereto have caused this Agreement to be executed this _____ day of _____________ 200_. For the Contract Group For the Owner ___________________________ ____________________________ Group Leader Chairperson BSPMC ____________________________ Witness Funds Available ___________________________ Barangay Treasurer


LOCAL BIDDING FOR WORKS

KALAHI-CIDSS PROJECT Office of the Barangay Community Project Management Committee

Barangay: _________________________ Municipality: ________________________ Province: __________________________

INVITATION TO BID

(For Advertisement in Regional Newspaper and Personal Delivery)

Date: __________________ The community of (Name of Barangay) has received assistance from the DSWD KALAHI-CIDSS Project. Interested bidders are requested to submit their offered price for the contract indicated below: Construction and completion of the works listed below: Name of Community Project: _____________________________________ Items

No. Items of Work/Description of

Work Qty Unit Unit

Cost Total

TOTAL P Amount in Words: We will only accept an offered price that is fixed and is not subject to any adjustment. Bid shall be valid for a period of sixty (60) days from the date of submission. Bidding documents may be obtained from the Barangay Treasurer in the Barangay Hall after payment of a non-refundable fee in the amount of ____________. A pre-bid conference will be held at the Barangay Hall on (date) ___________ at _________ (time). All bids must be accompanied by a bid security in any of the following forms: Cash, Cashier’s check, manager’s check, bank draft or bank guarantee = 2 % of bid price.


All bids must be received on _________________ (date and time) and will be opened in public in the presence of bidders’ representatives who choose to attend at the following address:

Kalahi-CIDSS: KKB Project Barangay Community Project Management Committee Barangay Hall Barangay ____________, Municipality of ________________ Province of _________________________________________

Please attach to your quotation with the requirements provided in the Instructions to Bidders containing the following:

I. Technical Documents; II. Legal Documents; and, III. Financial Documents

The community reserves the right to reject any bid or waive any defect or formality. The lowest calculated and responsive bid shall be used as the criterion in the selection of the contractor. The community will not reimburse any expenses related to the preparation of bids. (SGD.) ____________________________________ Chairperson, Barangay Community Project Management Committee BID SUBMITTED BY: ___________________________________ Signature Over Printed Name of Contractor Date: _______________


Local Bidding for Goods

KALAHI-CIDSS PROJECT Office of the Barangay Community Project Management Committee

Barangay: _________________________ Municipality: ________________________ Province: __________________________

INVITATION TO BID

FOR GOODS CONTRACT (For Posting and Personal Delivery)

Date: __________________ The community of (Name of Barangay) has received assistance from the DSWD KALAHI-CIDSS Project. Interested bidders are requested to submit their offered price for the supply of the items listed below: Items

No. Description/Specs of Items Qty Unit Unit

Cost Total

TOTAL P Amount in Words:

We will only accept an offered price that is fixed and is not subject to any adjustment. Bid shall be valid for a period of sixty (60) days from the date of submission. Bidding documents may be obtained from the Barangay Treasurer in the Barangay Hall after payment of a non-refundable fee in the amount of ____________. A pre-bid conference will be held at the Barangay Hall on (date) ___________ at _________ (time). The Bid shall include the following documents:

• Form of Bid (using prescribed form) • Price Schedule • Bid security - form, amount and validity period; only the followings are

acceptable: (i) Cash, cashier’s check, manager’s check, bank draft or irrevocable letter of

credit, or bank guarantee - (2% of bid price) • DTI Business Name Registration or SEC registration certificate • Authority of the signatory; • After Sales Service/Parts • Technical Specifications of the goods being offered (brochures/manual to be

attached) • Delivery Schedule


• Certification that each document submitted is an original or a true copy of the original

• Warranty/ • List of Service Centers (if applicable) • Other document required in the instruction to bidders (if any)

All bids must be received on _________________ (date and time) and will be immediately opened in public in the presence of bidders’ representatives who choose to attend at the following address:

Kalahi-CIDSS Project Barangay Community Project Management Committee

Barangay ____________, Municipality of ________________ Province of _________________________________________

The community reserves the right to reject any bid or waive any defect or formality. The lowest calculated and responsive bid shall be used as the criterion in the award. The community will not reimburse any expenses related to the preparation of bids. (SGD.) _______________________ Chairperson, BSPMC BID SUBMITTED BY: ___________________________________ Signature Over Printed Name of Supplier Date: _______________


LB for Goods & Works KALAHI-CIDSS PROJECT

ABSTRACT OF BIDS


Community Project: ___________________________

ITEMS

NO. DESCRIPTION QTY UNIT

NAME OF BIDDER NAME OF BIDDER NAME OF BIDDER BID AMOUNT BID SECURITY BID

AMOUNT BID SECURITY BID AMOUNT BID SECURITY

TYPE AMOUNT TYPE AMOUNT TYPE AMOUNT 1. 2. 3. 4. 5. 6. Total

BIDS AND AWARDS COMMITTEE APPROVED BY: _________________________ _________________________ BSPMC CHAIRPERSON _________________________ _________________________ DATE : ___________________ BAC Chairman


EMPLOYMENT RECORD SHEET FOR COMMUNITY FORCE ACCOUNT LABOR

AS END OF ____________, 200___ Community Project: ___________________________

Barangay: ___________________ Municipality: ___________________ Province: ___________________

NAME

GENDER TYPE: RATE PER NO. OF WORKING TOTAL PLAN PAYMENT ACTUAL PAYMENT (ACCUM.) SIGNATURE

MALE FEMALE SKILLED UNSKILLED HOUR DAY HOURS DAYS LABOR CASH BAYANIHAN CASH BAYANIHAN

1

2

3

4

5

6

7

8

9

10

TOTAL

NOTE: Rate - Is the rate per day or per hour of the community worker (cash plus "bayanihan" monetized) Cash - Is the cash amount to be paid to community members for labor Bayanihan- Cost of Labor not to be paid (Community Equity) Noted: Approved by: _________________________ _________________________ Head, Procurement Team Head, Project Implementation Team Brgy. Treasurer BSPMC Chairperson


LOCAL SHOPPING FOR GOODS (For fuel purchase only)

SUPPLEMENTAL AGREEMENT

This agreement, made the ______ day of ______ 200__ by and between BSPMC_________________________________ (Name of Barangay) ____________________________________ (Address) herein represented by _________________________________________ (Name of BSPMC Chairperson) herein after called “CONSUMER” as party of the first part

And

____________________________ (Name of Supplier) and company with official address at Barangay ___________ Municipality of _________________ province of _______________________ here in after called “DEALER” as party of the other part. Whereas the DEALER is the desirous to sell diesel fuel to the CONSUMER described in the canvass form. And the CONSUMER has accepted the proposal of the DEALER for the supply of the diesel fuel and remedying of any defects therein. Now this agreement witnesseth as follows:

1. In this agreement, words and expressions shall have the same meanings as respectively assigned to them.

2. The following document shall be deemed to form and be read and construed as part of this agreement:

- Canvass form - Abstract of Canvass - Minutes of evaluation of Canvass - Purchase Order

3. In consideration of the payments to be made in full amount by the consumer and of the fact that the CONSUMER does not have a safe depository tank for the flammable materials, the DEALER hereby covenants with the CONSUMER to supply and take custody of the stocks of diesel fuel and be held liable for whatever damages it may incur during its custody.

4. The DEALER allows partial withdrawal of stocks using withdrawal slip duly signed by the BSPMC Chairperson and inspected by the Monitoring and Inspection Team (MIT) and accepted by the storekeeper.

5. The DEALER allows on the spot reconciliation and checking of stocks by the Monitoring and Inspection Team (MIT).

In witness whereof the parties thereto have caused this Agreement to be executed this _______ day of _______ 200__. FOR THE CONSUMER FOR THE DEALER ______________________ ______________________ BSPMC Chairperson Gasoline Dealer Funds Available Witnesses ______________________ ______________________ Barangay Treasurer


LOCAL SHOPPING FOR WORKS (For Fabrication works)

CONTRACT AGREEMENT

This agreement, made this ______ day of ______ 200__ by and between BSPMC___________________________________________________ (Name of Barangay) ____________________________________ (Address) herein represented by _________________________________________ (Name of BSPMC Chairperson) herein after called “BUYER” as party of the first part

And

______________________________________ (Name of Contractor/Fabricator) and company with official address at Barangay ________________, Municipality of _________________, Province of _______________________ here in after called “FABRICATOR” as party of the other part. Whereas the FABRICATOR is desirous to execute the works described in the invitation to quote. And the BUYER has accepted the proposal of the FABRICATOR for the execution and completion of such works and remedying of any defects therein. Now this agreement witnesseth as follows:

1. In this agreement, words and expressions shall have the same meanings as respectively assigned to them. 2. The following document shall be deemed to form and be read and construed as part of this agreement:

a. Invitation to Quote b. Abstract of Quotation c. Minutes of evaluation of quotation d. Contract Agreement

3. In consideration of the payments to be made by the BUYER to the FABRICATOR

as hereinafter mentioned, the BUYER hereby covenants with the FABRICATOR to execute and complete the works within ______ calendar days and remedy any defects therein in conformity in all respects with the provision of the contract .

4. The FABRICATOR is allowed to collect partial payment or down payment equivalent to 15% of the contract after posting bank guarantee of equivalent amount.

5. The FABRICATOR is entitled to claim partial billing subject to the percentage of accomplishment of the work.

In witness whereof the parties thereto have caused this Agreement to be executed this_____ day of______201__ FOR THE BUYER FOR THE FABRICATOR ________________ ________________________ BSPMC Chairperson Fabricator Funds Available Witnesses: ________________________ ____________________ Barangay Treasurer


KALAHI-CIDSS Project CANVASS FORM FOR LEASE OF EQUIPMENT

(GOODS)

Barangay: ___________________________

Municipality: _________________________

Province: ____________________________ DATE: ______________ To: (Name of Contractor/Supplier/Owner) Address:_________________________________________ Tel. No. : ______________ May we request you to indicate your quotations for the rental of equipment indicated below. Please return this form to the canvasser in sealed envelope or submit it to the Barangay Community Project Management Committee at the Barangay hall on or before _______ (time), _____________ (date).Immediately after the deadline of submission, canvass will be opened. Item No.

/ Package

No.

Equipment Needed (Type of Equipment)

Number of equipment

/ No. of Unit

No. of (Days / Hours)

Unit Rate Per (Day / Hour)

Total Rental Cost

TOTAL AMOUNT P MODE OF PAYMENT DELIVERY PERIOD : __________ cal. Days Canvassers Names and Signatures 1. _________________________________ 2. _________________________________ 3._________________________________


EQUIPMENT LEASE Terms and Conditions:

1. In case of unacceptable/unreasonable delay in delivery of services as required, 1/10 of 1% of the rental will be deducted from the total amount due for each day of delay (weekends, and holidays included)

2. Quotation must be valid and fixed for 30 calendar days.

3. Prices quoted must include taxes and other incidental expenses.

4. The Equipment Operator’s wages cost of equipment maintenance and repairs

shall be for the account of the lessor. 5. The lessor shall ensure that the equipment is in operating condition at all

times during the duration of the contract agreement. 6. Fuel, oil and lubricants shall be supplied by the LESSOR. The lessor shall

ensure the equipment for third party liability and for total loss or partial damage to the equipment while on transport or at the designated area of operation.

7. The lessor binds itself to protect and immune the LESSEE from any suit or

liability resulting from claims of any nature, whether for death, injuries or damages that maybe suffered by the LESSOR’S Operator and/or third parties, arising from or in connection with the transport of the equipment or performance of the work.

8. Damages caused by the lessor’s party shall be charged/deducted from the

lessor.

9. Payment shall be through CHECK.

Signature over Printed Name Owner/Manager Date: __________

____________________

BSPMC Chairperson Date: __________ Canvass Submitted by: ______________________


PURCHASE ORDER (for equipment services)

Barangay: _____________________________ Municipality: ___________________________ Province: ______________________________

Name of Supplier: P.O. No. _________ Address: Date:___________________ In accordance with the canvass dated ___________, the Community Project Management Committee (BSPMC) off Barangay ____________________ requests you to provide services as stated below:

Item No. / Package No.

Equipment Needed (Type of Equipment)

Number of equipment

/ No. of Unit

No. of (Days

/ Hours)

Unit Rate Per (Day /

Hour)

Total Rental Cost

TOTAL AMOUNT OF THIS PURCHASE ORDER TERMS & CONDITIONS:

1. Provide the services at ___________________________________ (Location) on or before _____________________ (Date). In case of delay in delivery of services, 1/10 of 1% of the rental will be deducted from the total amount due for each day of delay (weekends, and holidays included).

2. Quotation must be valid and fixed for 30 calendar days. 3. Prices quoted must include taxes and other incidental expenses. 4. The Equipment Operator’s wages, cost of equipment maintenance and repairs shall be for the

account of the lessor. 5. The lessor shall ensure that the equipment is in operating condition at all times during the

duration of the contract agreement. 6. Fuel, oil and lubricants shall be supplied by the LESSOR. 7. The lessor shall insure the equipment for third party liability and for total loss or partial damage

to the equipment while on transport or at the designated area of operation. 8. The lessor binds itself to protect and immune the LESSEE from any suit or liability resulting

from claims of any nature, whether for death, injuries or damages that maybe suffered by the LESSOR’S Operator and/or third parties, arising from or in connection with the transport of the equipment or performance of the work.

9. Damages caused by the lessor’s party shall be charged/deducted from the lessor. 10. Payment shall be through CHECK.

BSPMC reserves the right to accept or reject the equipment if found not capable of delivering the required services.

Very truly yours, ________________________________ Chairperson, BSPMC Date: __________ Funds Available: ___________________________________________ Date

________ Treasurer Conforme: ______________________________________________ Date ________ (Name and signature of Lessor) Inspected / Tested by: ________________________________ Date: ________________ Received by: ________________________________ Date: __________________


EQUIPMENT LEASE AGREEMENT (FOR WORKS) KNOW ALL MEN BY THESE PRESENTS: This LEASE AGREEMENT, made and entered into this _____day of ___________, 200__ at _________________________________, _______________________, Philippines,

By and between: _______________________________________ (name of owner/construction firm) with its address at________________________________________ hereinafter referred to as the LESSOR.

-And-

The BARANGAY COMMUNITY PROJECT MANAGEMENT COMMITTEE

(BSPMC) of Barangay _______________________ with its principal office address at Barangay __________________________________, _____________________, represented herein by its BSPMC Chairperson, _____________________________ (name of Chairperson), hereinafter referred to as the LESSEE,

WITNESSETH THAT

WHEREAS, ____________________________________ (name of

owner/construction firm) owns the following equipments ___________________________ (type and description of equipment/s to be rented) that is for lease to any interested LESSEE;

WHEREAS, the BSPMC of Barangay ________________________ is in need

of a _______________________________ (type of equipment) for its _________________________ (type of community project);

NOW, THEREFORE, for and in consideration of the foregoing,

_____________________ (Lessor) and BSPMC have agreed as follows:

SECTION 1.0. TERMS and CONDITIONS:

1.1 The Equipment Operator’s wages, cost of equipment maintenance and repairs shall be for the account of the LESSOR.

1.2 The LESSOR shall ensure that the equipment is in operating condition at all

times during the duration of the contract agreement. 1.3 Fuel, oil and lubricants shall be supplied by the LESSOR. 1.4 The LESSOR shall insure the equipment for third party liability and for total loss

or partial damage to the equipment while on transport or at the designated area of operation.

1.5 The LESSOR binds itself to protect and immune the LESSEE from any suit or

liability resulting from claims of any nature, whether for death, injuries or damages that maybe suffered by the LESSOR’S Operator and/or third parties, arising from or in connection with the transport of the equipment or performance of the work.


1.6 Utilization of the equipment for the community project, the

________________________________ (name of community project) shall be under the supervision of the LESSEE; therefore, the LESSEE shall be responsible for the scope of work of the equipment.

1.7 The LESSOR shall have the right at any time to inspect his equipment. For this

purpose, the LESSEE agrees to provide free access and facilities to the LESSOR to accomplish such inspection.

1.8 The LESSEE shall not sublease, pledge, encumber, dispose or place the

equipment in the possession and/or use and supervision of any other person other than his duly authorized representative.

1.9 The Equipment Operator shall maintain a Daily Time Record to be checked and

signed by the PIT/BSPMC at the end of each day. This shall be part of the attachments for payment.

SECTION 2.0. SCOPE OF WORKS TO BE DONE BY THE EQUIPMENT/S:

Scope of Works

Equipment Needed

Unit Cost (Per Cubic/Sq.M.)

Total Rental Cost Item

Description Qty Unit

SECTION 3.0. CONTRACT AMOUNT: 3.1 The total contract amount shall be Pesos, not to exceed the amount of

____________________________________________________ pesos (PhP: ______________).

SECTION 4.0. TIME OF COMMENCEMENT AND END OF CONTRACT: 4.1 The contract shall commence on ______________________ (specific date) and shall terminate on _____________________________________________ (specific date). 4.2 The contract duration shall be ________________________________________

(number of calendar days), subject to the conditions in Section 5.0.

SECTION 5.0. TERMS OF PAYMENT 5.1 The LESSOR may request for partial payments up to fifteen (15) percent of the

Contract Price only after the DAC and/or Municipal Engineer had certified that the equipment is delivered at the project site; the equipment is in good running condition; and, the Lessor has submitted to the BSPMC a Bank Guarantee of equal amount. The advance payment shall be repaid by making deductions for every progress billing with consideration that it is fully recoup upon reaching 80% physical accomplishment. The first recoupment shall start when accomplishment has reached 20% of the total contract price.


5.2. Total Rental cost of the contracted equipment shall be based on the total actual quantity accomplished in the project specified herein.

SECTION 6.0. TERMINATION 6.1 The LESSOR shall have the right to terminate the Agreement and withdraw the

equipment for the following reasons:

a. If in LESSOR’S opinion continued operation will result in accelerated damage to the equipment.

b. If the LESSEE has violated any provision(s) of the Lease Agreement and/or

due to non-payment of the stipulated rental fees. 6.2 The LESSEE shall have the right to terminate this Agreement after giving for any of

the following causes:

a. The LESSOR fails to mobilize the contracted equipment as instructed by the BSPMC.

b. Failure of the LESSOR to fulfill its obligations such as non-operation due to

breakdown, absence of POL, or upon assessment of the lessee, the LESSOR cannot deliver the work on time;

c. Assignment of the equipment by the LESSOR to any job site other than the

_________________________________________ (name of the community project).

d. The LESSOR is willfully violating any of the material conditions, stipulations

and covenants of this Agreement. 6.3 In case of termination of this agreement due to the above stated causes, the cost of returning the equipment to the yard of the LESSOR shall be for the account of the LESSOR. 6.4 In cases where the Scope Works in the community project have been completed

ahead of the contract period and the equipment is not any more of use to the LESSEE, or where community project has to be terminated for reasons beyond its control, the LESSEE has the option to terminate this Agreement.

SECTION 7.0. BREACH AND VENUE 7.1 A material breach by either party of any of the warranty, representation of covenant herein made entitle the aggrieved party, at its option, to rescind the Agreement upon written notice to this effect. Any suit or legal proceeding which either party may in virtue of, or in relation to, or in any way connected with this Agreement, shall be filed with the proper courts of ___________________, _________________________. SECTION 8.0. EFFECTIVITY 8.1 This Lease Agreement shall take effect immediately upon signing of the Agreement. 8.2 The Notice to Commence shall be issued within three (3) calendar days upon signing of the contract agreement.


IN WITNESS WHEREOF, the parties aforesaid have hereunto affixed their signatures this ___ day of _________, 201__ at the Municipality of __________________, ___________________________________.

BARANGAY COMMUNITY PROJECT MANAGEMENT COMMITTEE BSPMC) OF BARANGAY__________________

____________________________ _____________________ Bspmc Chairperson Lessor

SIGNED IN THE PRESENCE OF:

__________________________ ______________________ Witness Witness


ACKNOWLEDGEMENT REPUBLIC OF THE PHILIPPINES MUNICIPALITY OF _____________, ______________

BEFORE ME, a Notary Public for and in the above jurisdiction, personally appeared this ____ day of __________, 20____ at ______________, ____________, Philippines.

Name Res. Cert. No. Date / Place Issued ___________________ ______________ _______________ ____________________ ______________ _______________ __________________ ______________ _______________

Known to me to be the same persons who executed the foregoing LEASE AGREEMENT consisting of five (5) pages including this page on which the Acknowledgement appears and they acknowledged to me that the same is their free and voluntary act and deed and those of the principals they respectfully represent.

IN WITNESS WHEREOF, I have hereunto set my hand and seal on the date and

at the place first abovementioned.

_____________________ Notary Public PTR No.______________

Until December 31, 200___ Doc. No. ____________; Page No. ____________; Book No. ____________; Series of ____________.


Request for Quotation for TAF

KALAHI-CIDSS Project REQUEST FOR QUOTATION

Technical Assistance for the __________________________________

(Name of Community Project)


Date: ___________________ To: _____________________________________________ _____________________________________________ Tel. / Cell phone No. __________________ Sir/Madam: Our community has received a grant from the Department of Social Welfare and Development’s KALAHI-CIDSS Project. The Barangay Community Project Management Committee invites you to submit a quotation for the preparation of _________________________________________ (name/type of activity); on behalf of the community. To assist you in the preparation of your price quotation, we enclosed the terms of reference (TOR) and qualification standards for your reference. Your quotation should be sealed in an envelope and addressed to the undersigned at the following address: The Barangay Community Project Management Committee Attention: Bids and Awards Committee Barangay Hall, Barangay ______________________ Municipality of _________________, Province of ________________ Your quotation shall be valid for a period of forty five (45) days from the date of submission of the quotation. Quotation shall be fixed within the period stated in the contract agreement. Price quoted must include taxes and other incidental expenses. It is understood that the consultant/service provider shall complete all activities enumerated at the total quoted price. The consultant/service provider agrees to use its own materials and resources to complete the activities in case the contract is awarded. A consultant/service provider who will not be able to provide the requirements during the validity of the contract will be permanently disqualified from participating in any DSWD-KALAHI-CIDSS - funded projects: Your quotation should be received by the BSPMC on or before _______________ (date and time). The Quotations shall be opened in public in your or your representative’s presence if you choose to attend, on ___________________ (same date as deadline for


bid submission) at ____ (time) (same as the deadline for bid submission) at the given address: Please attach to your quotation with the breakdown of your quotations and attach proof of your experience in similar activity. Very truly yours,

____________________________

BSMPC Chairperson Quotation Submitted by: ____________________________________ _______________ Signature over Printed Name of Consultant Date


SERVICE CONTRACT AGREEMENT This agreement made and entered this _______day of __________________ 201___ at _____________________ by and between Barangay ___________________ community, a barangay consisting of community residents thru its Project Preparation Team (PPT) Organized Committee, herein represented by its Chairperson ____________________ with official address at __________________________________________ herein represented by ______________________________ herein called “the Owner”

And

_______________________________________, a Filipino Citizen, a graduate of Bachelor of Science in _________________________________________ with official address at ________________________________________________ and business address at ____________________, hereinafter referred to as the “Service Provider”

WITNESSETH WHEREAS, the Owner will be providing assistance in rendering the necessary services for the preparation of complete technical assistance documents in relation to the proposed community projects; WHEREAS, the Owner to comply with the needed documents as required by the Municipal Inter-Barangay Forum, the Owner employ the assistance of the Service Provider to handle the engineering and other technical requirements needed as attachment to the packaged proposals for the following community projects:

1. ___________________________________ 2. ___________________________________ 3. ___________________________________

WHEREAS, the Owner has contracted the work to the Service Provider at the price in accordance with the Technical Assistance Fund; NOW WHEREFORE, for and in consideration of the foregoing premises, both parties have hereto agree and contract as follows:

SECTION I AGREEMENT DOCUMENTS

The following documents shall form part of this agreement:

a. BA Resolution requesting to avail of the TAF and its purpose; b. Accomplished TAF Eligibility Checklist; c. Complete detailed engineering drawings and specifications; d. Design computations ands considerations; e. Detailed estimates to include derivation of unit cost; f. Program of works

SECTION II

SCOPE OF WORKS 1. The Service provider agrees and binds itself to fully and faithfully provide for its

account all needed materials, instruments necessary or required to finish, and


complete the work, based on the given timeframe to complete the community project/s (Section II, Clause 2) and requirements stipulated in the Terms of Reference attached to this contract.

2. The work called for under this contract shall be completed and submitted on or before _________________, 2010. Failure to comply with the said date shall cause the Owner to impose the necessary penalty.

3. The Service provider shall provide and do everything necessary to conform to its obligation under the Agreement to the true intent and meaning of the other Agreement documents taken together, whether the same may or may not be shown or described particularly in the supporting documents as part of this contract (Section 1), provide that the same shall be informed there from. Should the Service Provider find any discrepancy in the said documents, he shall immediately refer the same to the Owner whose decision shall be followed.

4. The Service provider guarantees the quality of the workmanship of all its work under the Agreement and shall undertake at his own expense all revisions, adjustments as a result of the technical review of the Deputy Area Coordinator and Municipal Engineer relative to the work.

SECTION III

CONTRACT PRICE

The Owner and in consideration of the faithful performance by the service provider of the terms and conditions of this agreement, agrees to pay the service provider in a manner provided under Section IV of this Service Agreement, the amount of ______________________________________ (PhP _________). It is understood that any increase in the cost related to the service contract shall be the sole account of the service provider.

SECTION IV MANNER OF PAYMENT

1. Upon satisfactory completion and submission of the required documents by the

Service Provider as supported by the final acceptance of Project Preparation Team full payment will be released to the service provider.

2. It is the intention of the parties that there shall be no employer-employee relationship between the owner and the service provider, and between the service provider’s employees and / or laborers, it being understood that the relationship between the parties hereto shall be one of an independent contractor. In the event or any official or legislated increase in the minimum wage and / or compulsory allowances during the contract period, the same shall be likewise be for the account of the service provider.

SECTION V

PERIOD OF COMPLETION

1. The work stipulated in the Agreement shall be completed within the given period as provided in the Scope of Works (Section III)

In case the service provider encounters any justifiable cause or reason for delay, the same shall within two (2) days after encountering such cause of delay submit to the Owner in writing a request for time extension. Failure by the service provider to comply with this requirement will be considered an express waiver by the service provider for the owner not to grant the time extension.

2. Since time is of the essence in this Agreement, the completion period herein stipulated may be extended only for any of the following causes not attributable to the fault of negligence of the service provider, namely:


a. Natural calamities resulting from destructive earthquakes, typhoons,

prolong floods; b. Act of any government authority, domestic or foreign which has coercive

effect to law such as quarantines, embargoes and licensing controls; and, c. Acts which restrain or restrict preparation activities such as war

insurrection and rebellion.

3. If at any time the cumulative delay is all disruption in the normal progress of the works due to any cause, other than the Owner’s fault or negligence, shall be in excess of Five (5) days, the Owner shall have the right to terminate the Agreement and pay the service provider duly authorized representative and concurred by the service provider, less whatever damages may have been incurred by the Owner including liquidated damages as provided by Section VI.

The Owner and the service provider will negotiate in good faith as to the amount of payments due to the service provider. If the parties cannot agree within five (5) days after commencing discussions, either party may resort to arbitration proceedings pursuant to the Arbitration Law and / or judicial remedies if both parties could not resolve through the grievance redress system of the KALAHI-CIDSS project. This section is without prejudice to the Owner’s right of termination or other rights in case of delay or disruption of the normal progress of the work due to the fault or negligence of the service provider.

SECTION VI

LIQUIDATED DAMAGES

Failure by the Service Provider to complete the works within the implementation period or any extended period approved by the PPT shall render the Service Provider liable to forfeit 1/10 of 1% of the value of uncompleted works per calendar day of delay. Total penalty shall not exceed 10% of the total contract price. To be entitled to such liquidated damages, the Owner does not have to prove that it has incurred actual damages, such amount shall be deducted from any money due or which may become due the service provider under the Agreement and / or collect such liquidated from the final payment to the service provider. Incase the delay in the completion of the work exceed a time duration equivalent to twenty percent (20%) of the specified contract time plus any time extension duly granted to the service provider the first party may forfeit the second party’s due collectibles and take over the prosecution of the project and award the same to qualified service provider. In no case, however, shall the total sum of the liquidated damages exceed ten percent (10%) of the total contract price in which event the agreement shall automatically be taken over by the Owner or award the same to a qualified service provider through negotiation and the service provider’s accomplishments due for billing shall be forfeited. The amount forfeited due for billing shall be aside from the amount of the liquidated damages that the service provider shall pay the Owner under the provisions of this clause.


SECTION VII

COMPLETION AND FINAL ACCEPTANCE

1. When the work required and called for under this contract is totally completed, the service provider shall submit to the Owner through the Area/Municipal Coordinating Team for review and evaluation of the Deputy Area Coordinator and / or Municipal Engineer of the documents. The review shall be completed within two (2) days upon submission of the complete documents by the service provider.

2. Should the work be found satisfactory with the agreements, the Owner shall

within five (5) calendar days from the last day of review by the DAC, issue the Certificate of Final Acceptance of the submitted documents and the dull payment due to the service provider shall be paid immediately. Provided that no such certificate shall be issued the service provider has first submitted an affidavit attesting that any and all obligations /liabilities incumbent upon it have been fully satisfied and settled.

3. If the work is found unsatisfactory however, the first party shall within two (2)

working days from the last day of review, advice the service provider of the revisions to be done.

4. Upon the correction of the items, the service provider shall again submit to the

Owner the corrected documents.

5. Should the correction made by the service provider of the items be found satisfactory, payment found to be due to the service provider shall be paid immediately and the Owner shall not later than three (3) working days after the last day of submission issue the certificate of final acceptance.

SECTION VIII

ASSIGNMENT AND SUB-CONTRACTING

The service provider shall not assign, transfer or make any other disposition of the agreement any part or interest therein except with the written approval of the Owner. Approval of the sub-contract shall not relieve the service provider from any liability or obligation under its agreement with the Owner, nor shall it create any contractual relation between the sub-contractor and the Owner.

SECTION IX SERVICE PROVIDER’S DUTIES AND RESPONSIBILITIES

The service provider’s duties and responsibilities are found in the TOR in connection to this agreement to include the following:

1. Conduct site validation and survey The service provider shall solely responsible for all expenses to be incurred during the preparation of all pertinent required documents as stipulated in this contract agreement. 2. Supplies, Materials, Equipment, etc. The service provider shall be solely responsible in the provision of all required supplies, materials, equipment, machineries, transportation and or among others for the proper and satisfactory completion of the work in accordance to the content of this agreement. 3. Assistance to the Project Preparation Team (PPT)


The service provider shall be assisting the PPT during the preparation of the attachments for the package proposed by his/her attendance to the following:

a. Project Development Workshop b. Detailed preparation of Project Proposal c. Finalization of Community Project Concept d. Municipal Inter-Barangay Forum e. Special MIBF if necessary

The service provider shall also assist the Owner explain the content and details of the POW and design of the community project in the barangay assemblies to be conducted prior to the conduct of project approval.

4. Indemnification and Hold Harmless Agreement

The service provider agrees to indemnify and hold harmless the Owner and its constituents including the KALAHI-CIDSS employees from and against all claims, damages, losses and expenses including reasonable attorney’s fees in case any litigation arising out of the performance of the works herein.

SECTION X

GENERAL PROVISIONS The parties have herein agrees that the present agreement does not create any obligations, legal, financial or otherwise on the part of the Owner to any persons claiming entitlement to compensation or other remedies relating to personal injuries, economic-harm or otherwise including but not limited to any contractor, sub-contractor or beneficiary and / or other project user’s before, during and after the completion of the contract. In the event any claim is asserted against the Owner, the service provider shall defend the Owner from all costs occasioned thereby, including any assessment of damages or imposition of legal; obligations.

SECTION XI ARBITRATION

The parties hereto agree to settle any dispute arising from this agreement amicably in accordance to the Grievance Redress System of the KALAHI-CIDSS project. In the event that any judicial proceedings brought by either party against the other arising out from this agreement, the venue of the same shall be the appropriate Court in the area. IN WITNESS WHEREOF, the parties have hereunto signed this SERVICE AGREEMENT this _________________ of _______ 2010. BARANGAY ___________ COMMUNITY SERVICE PROVIDER The First Party Second Party _________________________ ______________________ BSPMC Chairperson Service Provider CTC No. _______________ CTC No. ________________ Issued On _____________ Issued On ______________ Issued at ______________ Issued at _______________ SIGNED IN THE PRESENCE OF: _____________________ _____________________ PPT Head/Chairperson Area Coordinator CTC No. _______________ CTC No. ________________


Issued On _____________ Issued on ______________ Issued at ______________ Issued at _______________

TERMS OF REFERENCE SERVICE PROVIDER

(Pre-Engineering Works for Water System)

An Individual or Engineering/Consulting Firm that can provide technical assistance in the implementation of community water supply projects in KALAHI-CIDSS areas. Technical assistance shall include specialized advice to implementers along preparation of appropriate designs and engineering plans, cost estimates and Program of Works. Specifically, the Service Provider will assist the project municipal staffs and community volunteers in the following areas:

1. Provide guidance and assistance to Project Preparation Team (PPT) on the conduct of the following specific activities to come-up with study, design and plans required for the proposed water supply project, to wit:

Execute detailed field survey (horizontal and vertical control) to

determine the following: i. Source of water available near the target service area. ii. Water sampling to determine its physical, chemical or bacteriological

properties iii. Demography and mapping of households

Preparation of engineering designs, technical drawings/plans drawn on a 500mm x 800mm tracing paper, with the following outputs; i. Hydraulic analysis showing design data and calculations ii. Location plan showing the vicinity map of the proposed system iii. Traverse plan showing the route/direction of pipelines; design pipe

sizes and specifications; length of pipes; location and description of the structures (i.e. intake, reservoir, supports/pedestals, etc);

iv. Profile plan showing elevation and grades of pipeline, reservoir, nodes/junctions;

v. Spot map showing the location of households and tapstands; vi. Detailed plans for reservoir, intake box and tapstand; vii. If elevated tank shall be constructed, provide structural analysis; viii. Detailed cost estimates showing quantity take-off and capability

outputs of labor and equipment, bill of materials for materials ix. Materials and construction specifications

Operation and maintenance activities should be considered in the choice of design options;

Consultation with community members and project staffs as to the existing cultural practices and user’s preference must be properly coordinated.

Close coordination with project technical staff as to the format of POW and other project standards.

2. Submit draft of design considerations and hydraulic analysis before the

finalization of engineering drawings and plans. In cases there are conflicts or unclear standard on technical parameters, KC standard designs shall prevail.

3. Prepare billing request together with the acceptable outputs as stated in parag. 1 for payment.

4. Payment/s will be made upon submission of acceptable outputs checked and reviewed by the DAC/Mun. Engineer and approved by the PPT Head and noted by the Area Coordinator.

QUALIFICATIONS STANDARD


1. A Civil Engineer with 3 years minimum relevant work experience on community water supply projects, preferably with formal training and knowledgeable on ground water-related projects

2. Skilled in computer operation with some knowledge on CAD softwares related to community water supply system design and spreadsheet.

DURATION : 1 ½ Months (1-week survey works and data gathering; 1 week preliminary design consideration/consultation; 3 weeks drafting of plans; 1 week preparation/finalization of cost estimates)


(Pre-Engineering for Road Construction community project)

An Individual or Engineering/Consulting Firm that can provide technical assistance in the implementation of rural road access in KALAHI-CIDSS areas. Technical assistance shall include specialized advice to implementers along preparation of appropriate designs and engineering plans, cost estimates and Program of Works. Specifically, the Service Provider will assist the project municipal staffs and community volunteers in the following areas:

1. Provide guidance and assistance to Project Preparation Team (PPT) on the conduct of the following specific activities to come-up with the project requirements for the approval of proposed improvement of barangay road, to wit:

Execute detailed field survey using instruments such as engineer’s transit,

theodolite, total station and other appropriate instruments to establish horizontal and vertical controls;

Preparation of engineering designs, technical drawings/plans drawn on a 500mm x 1000mm appropriate paper, with the following outputs; i. Location plan showing the vicinity map of the proposed road section ii. Traverse and Profile plan drawn on a half-section drawing paper

scaled at 1:100 vertical and 1:1000 horizontal. Plans must indicate the existing and proposed structures with corresponding station limits. The elements of curves, bench marks and match line of traverse plan must equal to the length of profile plan. Elevations of ground and design grade must be indicated on the profile plan.

iii. Cross-section plan at every 20 meter station interval drawn on full cross section with a scale of 1:100 (preferably). Actual ground elevation shall be indicated and inked. Designed ground elevation shall be indicated and penciled

iv. Detailed plans of road structures e.g. reinforced concrete pipe culverts (RCPC), reinforced concrete box culvert (RCBC) headwalls and cross-drains. At critical slope, provision of portland cement concrete pavement (PCCP) and slope protection as may be required;

v. Detailed cost estimates showing quantity take-off and capability outputs of labor and equipment, bill of materials for materials

vi. Materials specifications and method of construction; vii. Others that may be specified in the contract depending on the need

of the community. Type and traffic volume should be considered in the choice of design

options;


Close coordination with project technical staff as to the format of POW and other project standards.

2. Submit draft designs for review and approval before the finalization of

engineering drawings and plans. 3. Prepare billing request together with the acceptable outputs as stated in parag. 1

for payment. 4. Payment/s will be made upon submission of acceptable outputs, checked and

reviewed by the DAC/Mun. Engineer and approved by the PPT Head and noted by the Area Coordinator.


1. A Civil Engineer or Geodetic Engineer with 3 years minimum relevant work experience on the survey works and implementation of rural roads, preferably with formal training and knowledgeable road project design.

2. Preferably with skills in computer operation such as CAD operations and spreadsheet



(Pre-Engineering for Road Improvement community project)

KALAHI-CIDSS: KKB Project is assisting various rural communities to improve their governance through active participation to reduce poverty. One of the basic needs of these communities is access. The project allows the improvement of rural access to improve the delivery of services. Road improvement involves the implementation of selected work items only. This will not cover entire works for the rural road access (construction) but only those work items that will make the rural road access passable for vehicular traffic the whole year round. This can be applied on all roads that already exist and can be implemented in all types of terrain.

The Project is looking for an Individual or Engineering/Consulting Firm that can provide technical assistance in the improvement of rural barangay road access in KALAHI-CIDSS areas. Technical assistance shall include specialized advice to implementers along preparation of appropriate designs and engineering plans, cost estimates and Program of Works. Specifically, the Service Provider will assist the project municipal staffs and community volunteers in the following areas:

1. Provide guidance and assistance to Project Preparation Team (PPT) on the conduct of the following specific activities to come-up with the study, design options and plans required for the proposed improvement of barangay road, to wit:

Execute detailed field survey using instruments such as engineer’s transit, theodolite, total station and other appropriate instruments to establish horizontal and vertical controls;

Assess the existing road and evaluate the possible improvement, extension or expansion needed for the road to be passable for vehicular


traffic year round. Since the proposed road section will only requires improvement, it is expected that no major earthworks will be made.

Preparation of engineering designs, technical drawings/plans drawn on a 500mm x 1000mm appropriate paper, with the following outputs; i. Location plan showing the vicinity map of the proposed road section ii. Traverse and Profile plan drawn on a half-section drawing paper

scaled at 1:100 vertical and 1:1000 horizontal. Plans must indicate the existing and proposed structures with corresponding station limits. The elements of curves, bench marks and match line of traverse plan must equal to the length of profile plan. Elevations of existing ground and design grade must be indicated on the profile plan.

iii. Cross-section plan for selected stations that may require earth moving activities have to be drawn on full cross section with a scale of 1:100. Actual ground elevation shall be indicated and inked. Designed ground elevation shall be indicated and pencilled.

iv. Schedules and detailed plans of road structures e.g. reinforced concrete pipe culverts (RCPC), reinforced concrete box culvert (RCBC) headwalls and cross-drains. At critical slope, provision of portland cement concrete pavement (PCCP) and slope protection as may be required;


vi. Material’s specifications and method of construction; vii. Others that may be specified in the contract depending on the need

of the community. Type and traffic volume should be considered in the choice of design

options; Close coordination with project technical staff as to the format of POW

and other project standards.

5. Submit draft designs for review and approval before the finalization of engineering drawings and plans.


7. Payment/s will be made upon submission of acceptable outputs, checked and reviewed by the DAC/Mun. Engineer and approved by the PPT Head and noted by the Area Coordinator.



3. Skilled in computer operation with some knowledge on CAD operations and spreadsheet




(Pre-Engineering for Barangay Electrification community project)

An Individual or Engineering/Consulting Firm that can provide technical assistance in the implementation of rural electrification in KALAHI-CIDSS areas. Technical assistance shall include specialized advice to implementers along preparation of appropriate designs and engineering plans, cost estimates and Program of Works. Specifically, the Service Provider will assist the project municipal staffs and community volunteers in the following areas:

4. Provide guidance and assistance to Project Preparation Team (PPT) on the conduct of the following specific activities to come-up with the project requirements for the approval of proposed improvement of barangay road, to wit:

a. Execute detailed field survey using instruments such as engineer’s transit,

theodolite, total station and other appropriate instruments; b. Preparation of engineering designs, technical drawings/plans drawn on a

500mm x 800mm appropriate paper, with the following outputs; i. Location plan showing the vicinity map of the proposed site ii. Traverse plan or schematic plan drawn on a drawing paper scaled at

1:1000 horizontal. Plans must indicate the existing and proposed households with corresponding station limits. The elements of curves, bench marks and match line of traverse plan must equal to the length of profile plan. Elevations of ground and design grade must be indicated on the profile plan.

iii. Cross-section plan with a scale of 1:100 (preferably). Actual ground elevation shall be indicated and inked. Designed ground elevation shall be indicated and penciled

iv. Detailed plans of road structures e.g. reinforced concrete pipe culverts (RCPC), reinforced concrete box culvert (RCBC) headwalls and cross-drains. At critical slope, provision of portland cement concrete pavement (PCCP) and slope protection as may be required;


vi. Materials and construction specifications; vii. Others that may be specified in the contract depending on the need

of the community. c. Operation and maintenance activities should be considered in the choice

of design options; d. Consultation with community members and project staffs as to the

existing cultural practices and user’s preference must be properly coordinated. Close coordination with project technical staff as to the format of

POW and other project standards.

5. Submit draft of design considerations before the finalization of engineering drawings and plans.



7. Payment/s will be made upon submission of acceptable outputs, checked and reviewed by the DAC/Mun. Engineer and approved by the PPT Head and noted by the Area Coordinator.



9. Skilled in computer operation with some knowledge on softwares related to community water supply system design

10. Skilled in computer operation involving spreadsheet and other related softwares 11. Experience in foreign-assisted projects is an advantage

MONTHLY RATE : P ________ (Prevailing rate at the local level) DURATION : 1 ½ Months (1-week survey works and data gathering; 1 week preliminary design consideration/consultation; 3 weeks drafting of plans; 1 week preparation of cost estimates)


PASS/FAIL CHECKLIST

Form to be used in conducting Preliminary Examination of Bidding Documents (For shopping for works and bidding of works)

Name of Contractor: ________________________________

REQUIREMENTS PASS or FAIL? Remarks

I. TECHNICAL DOCUMENTS i. Form of Bid (in prescribe form) ii. Program of Works of the bidder iii. Plans iv. Detailed Estimates including summary sheet showing unit prices of materials, labor rates and rentals ( submitted by the bidder)

v. List of equipment owned/leased proposed for use for the sub-project

vi. Official Receipt (to support owning the equipment proposed for use for the sub-project)

vii. Certificate of registration (to support owning the equipment)

viii. Schedule of utilization of equipment ix. List of similar projects undertaken for the last 2 years x. Certification that each document submitted is an original or true copy of the original

xi. Certification from the bidder under oath of its compliance to labor laws and standards and to utilize unskilled labor in the area

xii. Notarized Affidavit for Defects Liability Commitment

xiii. Certificate of Site Inspection xiv. List of Technical personnel xv. Construction method with detailed procedures in complying environmental laws for every item

xvi. Bidding data sheet (for Bidding only) xvii. PS Mark License (for pipe materials) II. FINANCIAL DOCUMENTS • Income Tax Return w/ audited statement and TIN Number

• NFCC • Bid Security (for Bidding only) III. LEGAL DOCUMENTS • Contractor’s License / Temporary Certificate of Renewal (for expired License)

• SEC registration w/ articles of Incorporation • Authority of the signatory

• Contracts (similar contracts for the last two years) • Certificate of Acceptance (similar contracts for the last 2 years)

• Affidavit of Undertaking Note: In case one is missing based on the checklist, verification can be done during the post-qualification evaluation. If the missing requirement is the bid security, it will be a ground for automatic disqualification.


No Objection Letter (NOL) REVIEW REPORT

(For Local Shopping for Works & all Local Bidding) A. DOCUMENTS SUBMITTED

Item No.

Date submitted @ ACT

DOCUMENTS REMARKS

TECHNICAL Approved POW, DE & Approved Engineering Plans Minutes of the Pre-Procurement Conference Invitation to Quote/Bid (Newspaper clippings or a

copy of the posted invitation)

Official Receipt (Of the Publication) Affidavit of Publication (From the Newspaper

Company)

Minutes of Pre-Bid Conference Minutes of Bid Opening Abstract of Bids Minutes of the Evaluation of Bids Post qualification Report Form of bid Program of Works of Recommended

Contractor/Bidder to include summary sheet showing unit prices of materials, labor rates and rentals

Plans Official Receipt (equipment proposed to be used for

the contract)

Certificate of registration (to support owning the equipment for proposed equipment to be used)

Schedule of Utilization of Equipment List of similar projects undertaken for the last two

years

Certification that each document submitted is an original or true copy of the original

Certification from the bidder under oath of its compliance to labor laws and standards and to utilize unskilled labor in the area

Notarized Affidavit for Defects Liability Commitment Certificate of Site Inspection (Of the bidder

recommended for award)

List of Technical Personnel Construction Methods (itemized and wwith with

safety procedures)

Bidding Data Sheet PS Mark License (for Pipes)

FINANCIAL ITR Audit Statement( Of the bidder recommended

for award )

Bid Security (of the bidder recommended for award )

NFCC (Prepared by the bidder recommended for award )


Credit Line (For bidder recommended for award who did not passed NFCC )

LEGAL Contractor’s License or Temporary Certificate of

Renewal (For expired license)

Resolution to Award SEC Registration with Articles of Incorporation (for

Corporations)

Authority of the Signatory (in case of representative)

Contracts (To support projects undertaken for the last 2 years )

Certificate of Acceptance (To support projects undertaken for the last 2 yrs )

Affidavit of Undertaking ( To support in the list of Technical Personnel )

Other Pre- C Documents of the bidder recommended for award as specified below: ________________________________ ________________________________ * include PRE-C of lower bidders in case the contract was not awarded to lowest.

B. COMMUNITY PROJECT INFORMATION:

I. Background A. Name of Community Project: _________________________________________________ B. Physical Description/Indicators: _______________________________________

C. Location: _________________________________________________________ D. Items/Package Procured subject for NOL:

Item No.

Description of Work or Goods Quantity

Unit

E. Method of Procurement Used:

__________________________________________ F. Approved Budget for this package: P

____________________________________ G. Name of bidder recommended for award:

_________________________________ H. Amount in this contract:

P_____________________________________________ I. Aggregate Contract Amount for this contractor as of ____________:

P __________


: RPMO NOL NPMO NOL WB/MCA-P NOL

II. Pre-Procurement Conference

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (To be taken from the minutes of the pre-procurement conference. Capture all the necessary information like items to be procured, method of procurement, dates of procurement processes, etc.)

III. Invitation to Bid

_________________________________________________________________ (Date of Publication, Name of Newspaper, Details of Pre-bid Conference & Bid Opening)

IV. Pre-bid Conference

__________________________________________________________________________________________________________________________________ (To be taken from the minutes of the Pre-bid Conference. Capture all the necessary information like the technical requirements of the bidding, date and place of the pre-bid conference)

V. Opening of Bids

__________________________________________________________________________________________________________________________________

(To be taken from the minutes of the Bid Conference. Capture all the necessary information like what transpire in the bidding like are there late bidders, are there complaints, date and place of the bid opening, etc.)

Name of Bidders

Bid Offered Bid Security REMARKS

Amount Form

VI. Evaluation of Bids

(To be taken from the minutes of the Evaluation of Bids. Capture all the necessary information like are there disqualified bidders, bid security not conforming to the requirement, etc) Name of Bidders

Price Corrected

Pass/Fail Criteria

Bid Evaluation Remarks

Conclusion


VII. Post-Qualification Evaluation

____________________________________________________________________________________________________________________________________ (What, Who, When, Where, How was the post qua conducted? Summarize the post-qualification activity conducted, indicate pour overall assessment and conclusion). Attach minutes/Proceedings of Post-Qualification Evaluation.

VIII. Recommendation of Award

____________________________________________________________________________________________________________________________________

(To be taken from the Resolution to Award) What are the bases for award or disqualifying the bidders? Mention the circumstances why it was not awarded to the lowest, second lowest, etc. as the case maybe.)

C. OBSERVATION/S

____________________________________________________________________________________________________________________________________ (Are there complaints? what are they? Is the procurement process followed? If not what are the deviations? What other information/s you want to know? )

Prepared by: Note:

_______________ ________________________ Deputy Area Coordinator/LGU Engineer Area Coordinator Date: ______________ Date: ___________________

DRCIS/RCIS SECTION:

VALIDATION REPORT: __________________________________________________________________________________________________________________________________________________________________________________________________________________

RECOMMENDATION: ____________________________________________________________________________________________________________________________________________

Reviewed:

__________________

RCIS Date: ______________ Endorsed by: _________________________________ Community Procurement Specialist Date: ______________


GUIDES IN FILLING UP NOL REVIEW FORM:

A. Indicate what are the technical, financial and legal documents submitted by the bidder in reference to the checklist of documents for NPMO/MCAP NOL.

B. I.

a. Indicate the title of the community project and its project type b. Describe the physical aspect of the community project and its indicators

(How many units, what is the length, thickness, width, etc….) c. Indicate the barangay, municipality and province. d. Indicate the item number, Description of the Items of Work, Quantity and

Unit of the package/s procured subject for NOL. e. Indicate the method of procurement used f. Indicate the approved budget for the package/s subject for NOL g. Indicate the name of the bidder recommended for award h. Indicate the amount in this contract i. Indicate the aggregate amount (Total amount of contracts of the bidder

recommended for award from the previous KALAHI contracts within the municipality to include this contract subjected for NOL.

j. Indicate if the NOL issuance is for RPMO, NPMO or World Bank.

II Extract from the minutes of the Pre-Procurement Conference useful information such as items to be procured, method of procurement, dates for the publication of the ITB, dates of the pre-bid conference, dates of the opening of bids, etc…… )

III Describe what newspaper it was published, check if all of the items of

works subjected for NOL was published, official receipt of the publication, affidavit from the publisher that it was published.

IV Extract from the minutes of the pre-bid conference useful information such

as date, time and place of the bid opening, technical requirements of the bidding, agreement made, criteria for the award, etc….

V Extract from the minutes of the bid opening useful information such as late

bidders, bid offered, bid security, complaints, date and time of actual bidding, etc…..

Fill up in the matrix with the name of bidders, bid offered, bid security (amount & form), remarks (other information not found in the matrix)

VI Extract from the minutes of the Evaluation of Bids necessary information

such as criteria for award, disqualified bidders and its reason for disqualification, etc….

Fill up in the matrix with name of bidders, bid price corrected, results of the pass/fail criteria, result on the bid evaluation, remarks (other information not found in the matrix)

Make a conclusion regarding the process and result of the bid evaluation. VII Post-Qualification


Examples:

Documents Based on Documentary Review

Based on Post-Qualification.

Status ( Pass/fail )

I.TECHNICAL a. List of Community Projects undertaken

Check if the community projects undertaken are supported with contract and certificate of acceptance

Interview the client if it is true that the bidder has a project with them and what is his performance.

Pass: If the bidder was able to support with contract and certificate of acceptance for every community project undertaken and if it is true upon validation that he has a project undertaken based on the list and has a positive feedback from their client. Fail: If the bidder was not able to support with contract and certificate of acceptance of the community projects undertaken and if found out in validation that he has no project undertaken or if there is negative feedback from their client.

b. List of Technical Personnel

Check if it is supported with affidavit of undertaking from the persons listed in the Technical Personnel

Interview with the person listed in the Technical Personnel, if it is true that they connected to the bidder.

Pass: If the bidder was able to support with affidavit of undertaking for every person listed in the Technical Personnel and if found out in the validation that they are employed to the bidder. Fail: If the bidder was not able to support with affidavit of undertaking and found out in the validation that the persons listed are not employed to the bidder.

c. List of Equipment Owned

Check if there is a deed of sale, Official Receipt and Certificate of Registration ( For dump trucks and other equipment which is registered in the LTO )

Check with the LTO if equipment in the list are registered.

Pass: If bidder was able to support with deed of sale, Certificate of Registration and Official Receipt. Fail : If bidder failed to support it with deed of sale, Certificate of Registration (For Dump Truck) and Official Receipt (For DT)

d. List of equipment lease

Check if supported with lease contract and Official Receipt and Certificate of Registration.

Interview the lessor if the rental is true.

Pass: If bidder was able to support it with Lease Contract, Official Receipt (For DT & others ), Certificate of Registration (For DT & others)

II. FINANCIAL a. Income Tax Return

Check if supported with Financial Audit Statement

Check BIR if the Income Tax Return Copy is authentic.

Pass: If bidder has an authentic ITR


Fail: If bidder failed to support it with Audit Statement and has inauthentic ITR.

b. Bid Security Check if the form and amount is acceptable.

Check it with the bank or bonding company if the bid security is authentic

Pass: If the bidder has submitted an acceptable and authentic bid security. Fail: If the bidder has not submitted acceptable and authentic bid security.

c. Net Financial Contracting Capacity ( NFCC )

Check the computation, if his NFCC is equal or more than the contract for bid.

Check if bidder has on-going community project not included in the computation, ITR and Audit Statement are authentic.

Pass: If the NFCC is equal or more than the contract for bid. Fail: If NFCC is less than the contract for bid, then require credit line.

d. Credit Line Check its substance and amount should not be less than 10% of the contract

Check with the bank the authenticity of the credit line

Pass: If the bidder has an authentic and acceptable credit line Fail: If the bidder has no authentic and acceptable credit line.

III. LEGAL a. Contractor’s License

Check if the contractor’s license is expired and if expired did he attach certificate of temporary renewal of license.

Check if bidder has license and if expired license he has certificate of temporary renewal.

Pass: If the bidder has contractor license and if expired it was supported with certificate of temporary renewal of license. Fail: If the bidder has no license or expired license but not supported with certificate of temporary renewal.

b. SEC Registration

Check if supported with articles of incorporation

Check if in the articles of incorporation its business is within their primary and secondary purpose.

Pass: If the SEC registration is supported with Articles of Incorporation and validated that their business is within their primary and secondary purpose.

c. Authority of the signatory

Check if the authority of the signatory is signed by the owner if owned by the individual or board resolution if it is a corporation.

Validate if the owner has issued an authority or if corporation has issued a board resolution allowing its employee to represent the corporation.

Pass: If validated that the owner has issued an authority or corporation has issued a board resolution allowing employee to represent the corporation. Fail: If validated that the owner has not issued an authority or board of directors has not issued a resolution allowing employee to represent.


SUGGESTED FORMAT IN PREPARING THE POST-QUALIFICATION REPORT

I. INTRODUCTION (optional) • State the facts why a post-qualification will be done

II. METHODOLOGY

A. Satisfy the ff:

1. WHO? • Who authorized the conduct of post-qua (the

BSPMC Chair) • Name/s of the contractor/s to be evaluated • The team composition (the TWG and volunteers)

2. WHEN? • Date and time • Duration

3. HOW? • Courtesy visit to the Contractor’s office • Conduct interview (owner, project manager,

personnel/workers) • Check authenticity of submitted documents

(company’s records, financial records, conduct inspection of its premises, construction equipment, tools and facilities)

B. Check the ff:

• Check recently completed projects (for the past 2 years) that are similar to the project to be undertaken if they were completed satisfactorily according to plans, specifications and duration

• Check with local banks where the contractor’s account/credit line facilities are maintained to determine if he/she has access to funds to finance the execution of the contract

II. RESULTS OF INVESTIGATION

A. Test of Contractor’s Qualification

• Conduct review of awardees’ general eligibility qualifications based on the Instruction to Bidders

• B. Test of Contractor’s Technical & Organizational Capability

• Check the minimum construction personnel, tools, equipment and required schedule

• Contractor’s experience (2 years) in similar project

C. Test of Contractor’s Financial Capability • Check the NFCC (NFCC should be more than Contract Cost)

D. Contractor’s Reputation in the Community

• Check if the contractor has a good standing/reputation in the community or nearby Municipalities

• Check with the local courts and local arbitration commission (if there were cases, was he cleared?)

Form to be filled up in conducting the Post-Qualification Evaluation:


REQUIREMENTS

Documentary Review (Check whether the document submitted matches the

original documents or in accordance w/ required

documents)

POST-QUALIFICATION (Review computation, validate the submitted documents at the office

who issued the documents, and others)

PASS or FAIL?

I. TECHNICAL DOCUMENTS

i. Form of Bid (in prescribe form)

ii. Program of Works

iii. Plans

iv. Detailed Estimates including summary sheet showing unit prices of materials, labor rates and rentals (submitted by the bidder)

v. List of equipment owned/leased

vi. Official Receipt (to support owning the equipment)

vii. Certificate of registration (to support owning the equipment)

viii. Schedule of utilization of equipment

ix. List of similar projects undertaken for the last 2 years

x. Certification that each document submitted is an original or true copy of the original

xi. Certification from the bidder under oath of its compliance to labor laws and standards and to utilize unskilled labor in the area

xii. Notarized Affidavit for Defects Liability Commitment

xiii. Certificate of Site Inspection

xiv. List of Technical personnel

xv. Construction method

xvi. Bidding data sheet

xvii. PS Mark License (for pipe materials)

II. FINANCIAL DOCUMENTS • Income Tax Return w/ audited statement and TIN Number

• NFCC

• Bid Security III. LEGAL DOCUMENTS

• Contractor’s License / Temporary Certificate of Renewal (for expired License)

• SEC registration w/ articles of Incorporation

• Authority of the signatory

• Contracts (similar contracts for the last two years)

• Certificate of Acceptance (contracts for the last 2 years)

• Affidavit of Undertaking


PLANNED COMMUNITY PROCUREMENT PACKAGING Date Prepared: _____________ Barangay : __________________ Name of proposed community project : ____________________________________ Municipality : __________________ Total Estimated Cost : _______________ KC Cost : __________ Province : __________________ Community Project Duration: _______________ LCC (Cash): __________

Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Tranche _______________

Mode of Implementation: CFA BY CONTRACT

PA

CK

AG

ES

PACKAGE

ITEMS QTY. UNIT TOTAL

PROC. METH

OD

ESTIMATED COST INVOLVED and SCHEDULE OF DELIVERY PROPOSED

IMPLEMENTATION SCHEDULE

1ST Tranche 2ND Tranche 3RD Tranche TOTAL Month/Weeks

Grant LCC Cash Grant LCC

Cash Grant LCC Cash

Grant

LCC Cash 1 2 3 4 5 6

Pack

age

1

Pack

age

2

TOTAL

Workshop output of: Reviewed by: Submitted by: _____________________ ________________________ ___________________

Procurement Team Head DAC/Municipal Engineer BSPMC Chairperson (Name and Signature)


SCHEDULE OF IN-KIND LOCAL COUNTERPART CONTRIBUTION

Date Prepared: _______________ Barangay : __________________ Name of proposed community project : _______________________________________ Municipality : __________________ Total Estimated Cost : _______________ Province : __________________ Community Project Duration : _______________ LCC (In-Kind) : __________ Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Tranche ______________ Mode of Implementation: CFA BY Contract

PA

CK

AG

ES

PACKAGE

ITEMS QTY. UNI

T TOTAL

PROC. METHOD

ESTIMATED COST INVOLVED and SCHEDULE OF DELIVERY PROPOSED

IMPLEMENTATION SCHEDULE

1ST Tranche 2nd Tranche

3rd Tranche TOTAL Month/Weeks

In-Kind In-Kind In-Kind 1 2 3 4 5 6 7 8

Pack

age

1

Pack

age

2

TOTAL

Workshop output of: Reviewed by: Submitted by:

_____________________ _______________ _______________ Procurement Team Head DAC/Municipal Engineer BSPMC Chairperson


ACTUAL COMMUNITY PROCUREMENT PACKAGING Date Prepared: ____________________ Barangay: _____________ Name of proposed community project: _______________ Municipality: __________ Total Estimated Cost: ______________________ KC Cost: ______________ Province: _____________ Community Project Duration: ______________________ LCC: _________________ Estimated Cost: 1st Tranche ______________ In-kind: _________ 2nd Tranche ______________ Cash: _________ 3rd Trance _______________ Mode of Implementation: CFA BY CONTRACT

PA

CK

AG

ES

PACKAGE ITEMS

QTY. UNIT TOTAL PROC.

METHOD

ESTIMATED COST INVOLVED and SCHEDULE OF DELIVERY

PROPOSED IMPLEMENTAT

ION SCHEDULE

1ST Tranche 2ND Tranche 3RD Tranche TOTAL Month/Weeks

Grant LCC Cash Grant LCC Cash Grant LCC

Cash Gran

t LCC Cash 1 2 3 4 5 6

Pack

age

1

Pack

age

2

TOTAL

Workshop output of: Reviewed by: Submitted by:

_____________________________ ________________________ ________________ Procurement Team Head DAC / Municipal Engineer BSPMC Chairperson Name and Signature


Guides in filling up the Procurement Action Plan (PAP) 1. The Procurement Action Plan (PAP) will be prepared in lieu of the required readiness filter documents for SPs undertaken by CFA. This will be supported by the Planned Community Procurement Packages (PCPP). Inappropriate packaging or splitting must be avoided to facilitate processing of grant funds. 2. The PAP and PCPP will be the basis of procurement monitoring and scheduling the post fiduciary review. 3. Schedules should be observed by the community volunteers and project staff. The PAP should be prepared following procurement activity duration of the procurement manual. 4. Specific name of responsible volunteers and project staffs who will participate and undertake the activity must be indicated on the plan. This is to observe the principle of accountability. Please take note that during Ex-post fiduciary review, the names should match with the corresponding documents such as the names of the PT members, canvasser on the canvass, otherwise, representation or justification has to be made for the deviations. 5. Venue of meetings and places where procurement activities are to be conducted must be specific. Locations of potential suppliers where canvasses per package are to be submitted must be indicated on the plan. It is very important that inventory of suppliers and contractors are done during the identification stage for proper guidance. This will observe the transparency principle of the project. 6. Under resource management, transportation expenses, reproduction costs that are chargeable under administrative cost must also be indicated for monitoring and accounting. These will practice the economy and effectiveness principle. 7. Under the remarks column, if the activities are already done prior to the submission, provide comments or observation of the activity conducted. 8. Dates for the serving of P.O.s under the first tranche and other activities must be specific while other packages under succeeding tranches must rationally follow the implementation schedule as indicated on the PCPP. 9. If the package falls on Local Bidding for Goods and will require RPMT or NPMT NOL, Purchase Order must not be issued unless No Objection Letter is issued. The transaction will be declared miss-procured once the provision is ignored. 10. In cases where direct contracting for Works is required, (e.g. fabrication of steel trusses, other specialized pay items), appropriate procurement procedures must be observed and RPMT NOL must be secured first before the issuance of contract. 11. It is expected that the documentations like the preparation of minutes of meeting will be more accurate and clear enough to understand what transpired during the activity and the agreements and actions are clearly captured on the minutes. 12. Posting of the Procurement Action Plan at the BSPMC office is a must. This will guide the volunteers on the activities to be performed on the given dates. This will also observe the principle of transparency.


PROCUREMENT ACTION PLAN

Procurement Activities Timeline to Complete the Activity (Inclusive

Dates )

Responsible Volunteers & Project Staff

Venue of meeting and place/s to Conduct

Procurement

Name of Potential Suppliers & Contractors

Resource Requirement

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 - Package # 3 7. Opening of Canvass and Quotation 8. Preparation of Minutes of Opening 9. Evaluation of Canvass 10. Preparation of minutes of Evaluation 11. Conduct of Post Qualification Evaluation (LSW , LBG)

12. Prep’n of Minutes of Evaluation (Post-qua) 13. Issuance of RPMT NOL 14. Preparation of Purchase Order 15. Serving of PO/s or Award (Package #) 16. Delivery of Materials Prepared by: Checked by: Approved by: Noted by: ____________________________ _____________________

Procurement Team Head Deputy Area Coordinator Municipal Engineer BSPMC Chairman Area Coordinator


ANNEX “A “ DIRECT CONTRACT AGREEMENT OF LABOR

LIST OF TOOLS PROVIDED TO THE DIRECT CONTRACT GROUP BY THE PROJECT ENGINEER

ITEM QUANTITY Axe * Bolo (multi-purpose) * Brush Hook* Grass Cutting Bolo* Grass Cutter * Crow Bar * Shovel * Hoe * Forked Hoe* Pick Mattock* Pickaxe* Sledge Hammer&* Rake Spreader* Hand Rammer* Wheel Barrow* * Including Handles I certify that the above tools have been received by me in behalf of the CONTRACT GROUP. ________________________ GROUP LEADER I certify that the above tools have been returned by the PAKYAW GROUP in acceptable condition. ________________________ Project Supervisor Form for Bid Bulletin (for change in schedule)


KALAHI-CIDSS Project Office of the Barangay Community Project Management Committee

Barangay _________________ Municipality of _____________

Date: ____________

BID BULLETIN Bid Bulletin No. _____ for the ________________________ (Name of Community Project) To: All concerned participating prospective bidders: The BSPMC-BAC of ____________________________________ (name of Barangay) hereby announces the postponement of opening of bids on _______________ (date) and hereby rescheduled the same on __________________ (date) at ______________ (time) at ____________________________________ (venue). All other provisions not herein modified shall remain in full force and effect. For guidance and information of all concerned. Truly yours, _____________________________ BSPMC Chairperson


Form for Bid Bulletin (for change in quantities or specifications)

KALAHI-CIDSS Project Office of the Barangay Community Project Management Committee

Barangay _________________ Municipality of _____________

Date: ____________

BID BULLETIN Bid Bulletin No. _____ for the _______________________ (Name of Community Project) To: All concerned participating prospective bidders: This BID BULLETIN NO. _____ is hereby issued for your information and guidance in connection with the above-mentioned bidding. The following are the revisions: A revised Invitation to Bid and Bid Form are issued due to changes in ________________ (quantity or specifications) of some items as follows:

Item Description Unit Original (Quantity /

Specifications)

Revised (Quantity /

Specifications)

This BID BULLETIN NO. ___ shall form an integral part of the bid documents for this public bidding. All other provisions not herein modified shall remain in full force and effect. For guidance and information of all concerned. Truly yours, _____________________________ BSPMC Chairperson Date: __________________


ACKNOWLEDGEMENT RECEIPT

This is to acknowledge receipt of the canvass form/Invitation to Quote served by ______________, ______________, _________________ Procurement Team members of BSPMC ______________________________________ (Name of Barangay /Municipality). ________________________ Name & Signature of Contractor / Supplier Date Served _________________ _________________________ Name & Signature of Contractor /Supplier Date Served_________________ _________________________ Name & Signature of Contractor /Supplier Date Served_________________ _________________________ Name & Signature of Contractor /Supplier Date Served _________________ ___________________________ Name & Signature of Contractor /Supplier Date Served _________________ _________________________ Name & Signature of Contractor /Supplier Date Served ________________ _________________________ Name & Signature of Contractor /Supplier Date Served _________________


SITE VISIT CERTIFICATE

This is to certify that the bidder together with the Barangay Community Project Management Committee (BSPMC) of Barangay ___________ , Municipality of ______________,Province of _____________________,has conducted joint site visit in the ______________________ (Name of Project). This is to certify further that the bidder has also visited the known source of aggregates and other indigenous construction materials and has scouted labor force available in the area This certification is issued to support his intent to bid the above community project _________________________ BSPMC Chairperson Date: __________________


ANNEX 2-A CF PROCUREMENT RED FLAGS MONITORING FORM (LOCAL BIDDING FOR GOODS)

(To be filled up by CF in two (2) copies of which one copy to be retained @ BSPMC and the other copy to be kept in ACT. RPMT will be furnished a photocopy.) Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS Estimate within prevailing local prices

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ B. PACKAGING1

PACKAGE ITEMS TOTAL COST

REMARKS W/IN THRESH HOLD

ABOVE THRESH HOLD

Package #1

Package #2

Package #3

Package #4

Package #5

Package #6

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ C. BID DOCUMENTS PREPARATION YES NO OBSERVATIONS OBSERVATIONS Invitation to Bid prepared Invitation to Bid posted in Barangay Hall Bidding Documents prepared using pro-forma Pre-bid conference conducted


D. SUBMISSION OF BIDS 2

YES NO OBSERVATIONS REMARKS Bids submitted place on sealed envelope Sealed envelope place on bid box

Bids submitted on or before deadline of submission E. BID OPENING YES NO OBSERVATIONS REMARKS Bid opening immediately after the deadline of

submission of bids

Bids are placed inside bid box Bids are read aloud in public Minutes of bid opening prepared

F. SCRUTINY OF BIDS YES NO OBSERVATIONS REMARKS Bid securities conform to the requirements Bids are initialed by BAC members Specifications conform to the requirements Bids that comply are ranked from lowest to highest Abstract of Bids was prepared

G. AWARDING YES NO OBSERVATIONS REMARKS

Post – qualification conducted to lowest calculated bidder

Passes Resolution to Award

Purchase Order prepared

No Objection Letter (NOL) issued

Acceptable Performance Security posted by winning supplier.

H. DELIVERY OF GOODS YES NO OBSERVATIONS REMARKS The goods were delivered to site. Goods inspected by MIT Delivery receipt received by the Storekeeper Acceptance report by Storekeeper/MIT issued.

I. PAYMENT YES NO OBSERVATIONS REMARKS

Payment made after the delivery of goods

Checks were prepared before the delivery of goods.


II. COMMUNITY FINANCE RED FLAGS YES NO OBSERVATION REMARKS Request for the release of 1st Tranche has been

received by the ACT from BSPMC ten (10) days after 2nd MIBF approval of the community project.

RFR has stayed in particular station based on the standard period for review.

Grant fund balance is 10% of the amount released and RFR has been prepared and/or submitted by the BSPMC within 5 days.

Actual delivery of LCC committed and reflected in the detailed POW meet at least 50% when requesting for the release of the 2nd tranche.

There is fund utilization one month after the release of grant funds.

Variance of physical and financial accomplishment did not exceeds 15%

Prepared by: Noted by: _________________________ _________________________ Community Facilitator Area Coordinator Date: ___________________ * Barangay’s certification need not have AC notation Note: DAC to fill up this portion in the copy of report for the region. Name & Signature of DAC


ANNEX 2-B CF PROCUREMENT RED FLAGS MONITORING FORM

(LOCAL SHOPPING FOR GOODS)

(To be filled up by CF in two (2) copies, one copy to be retained @ BSPMC and the other copy to be kept in ACT. RPMT will be furnished a photocopy.) Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS Estimate within local prices




ABOVE THRESH HOLD

Package #1 Package #2 Package #3 Package #4 Package #5 Package #6 Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ C. CANVASSING YES NO OBSERVATIONS REMARKS Canvass forms served to at least three separate

supplier for one package

Technical specifications is specified instead of brand

Canvass served by designated canvasser of the Procurement Team

D. SUBMISSION OF CANVASS2


YES NO OBSERVATIONS REMARKS Canvasses are sealed prior to opening. Canvasses are placed inside bid box with lock or

makeshift box sealed or lock inside the cabinet.

Canvasses are personally hand carried by at least two(2) PT members.

Canvasses are submitted by owner or representative.

E. OPENING OF CANVASS. YES NO OBSERVATIONS REMARKS Opening of canvass was conducted with the BAC in

quorum and presence of witnesses

Opening was conducted the day after the deadline of submission except on Saturday, Sunday, & Holidays

F. SCRUTINY OF CANVASS YES NO OBSERVATIONS REMARKS Erasures of Canvass are initialed Canvass Forms are signed by at least two PT

members

Canvass Forms are signed at least three copies per package

Canvass Forms are initialed by BAC members G. AWARDING OF CANVASS YES NO OBSERVATIONS REMARKS Awarded to lowest calculated responsive canvass. Winner conforms to specifications Is the material to be supplied tested for quality?

For material to be supplied by informal suppliers, they should also be tested for quality.

Awards are made to legitimate supplier3 (w/ business permit). If no, explain in remarks why?

H. DELIVERY OF GOODS YES NO OBSERVATIONS REMARKS Goods are completely delivered on site as per

purchase order

Goods delivered in accordance to specification Goods delivered are used in the project Goods delivered are inspected by MIT Goods delivered are accepted by storekeeper I. PAYMENT YES NO OBSERVATIONS REMARKS Payment is on time Payment made only to goods delivered Signatories of check are BSPMC, Brgy. Treasurer &

Area Coordinator

Is the penalty observed for late deliveries? (1/10 of 1% per day)


II. COMMUNITY FINANCE RED FLAGS YES NO OBSERVATIONS REMARKS Request for the release of 1st tranche has been

received by the ACT from BSPMC ten (10) after 2nd MIBF approval of the community project



Actual delivery of LCC committed and reflected in the detailed POW meet at least 50% when requesting for the release of 2nd tranche.


Variance of physical and financial accomplishment did not exceeds 15%.

Prepared by: Noted by: _________________________ _________________________ Community Facilitator Area Coordinator Date: ___________________ * Barangay’s certification need not have AC notation Note: DAC to fill up this portion in the copy of report for the region. Name & Signature of DAC


ANNEX 2-C CF PROCUREMENT RED FLAGS MONITORING FORM

(LOCAL SHOPPING FOR WORKS) (To be filled up by CF in two (2) copies of which one (1) copy to be retained @ BSPMC other copy to be kept in ACT. RPMT will be furnished one (1) photocopy.) Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS Estimates within prevailing local prices




ABOVE THRESH HOLD

Package #1

Package #2

Package #3

Package #4

Package #5

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ C. QUOTATION


YES NO OBSERVATIONS REMARKS Quotations served to at least three (3) contractors. Technical specifications are specified on the plans.

D. SUBMISSION OF QUOTATIONS2

YES NO OBSERVATIONS REMARKS Quotations are sealed during submission Quotations are submitted by owner or

representative

Quotations are placed inside bid box with lock or makeshift box sealed or locked inside cabinet

E. OPENING OF QUOTATION YES NO OBSERVATIONS REMARKS Opening of quotation was conducted with BAC in


Opening was conducted immediately after the deadline of submission

Quotations are sealed prior to opening Open sealed envelopes and read aloud in public the

name of contractor and the documents attached.

F. SCRUTINY OF QUOTATION YES NO OBSERVATIONS REMARKS Erasures of quotations are initialed Quotations are signed by BSPMC Chairperson Quotations are initialed by BAC Documents are complete as per checklist Quotations of at least three (3) contractors.

G. AWARDING OF QUOTATION YES NO OBSERVATION REMARKS Abstract of Quotation prepared Awarded to lowest calculated responsive quotation. Winner conforms to specifications Award made to legitimate (with license) contractor 3

H. CONTRACT PREPARATION YES NO OBSERVATIONS REMARKS No Objection Letter (NOL) secured if required (RPMT

threshold is above P 500,000.00)4

Notice of Award issued Required Performance Security posted.

I. CONTRACT IMPLEMENTATION YES NO OBSERVATIONS REMARKS Notice to Proceed issued by BSPMC

Retention money withheld Bank Guarantee for Advance Payment appropriate

form

Technical assistance provided by RIE and DAC Payments made based in actual percentage of

physical accomplishment

Payments are made w/complete supporting documents attached.


II. COMMUNITY FINANCE RED FLAGS

YES NO OBSERVATIONS REMARKS Request for the release of 1st tranche has been







Prepared by: Noted by: _________________________ _________________________ Community Facilitator Area Coordinator Date: __________________ * Barangay’s certification need not have AC notation Note: DAC to fill up this portion in the copy of report for the region. Name & Signature of DAC


ANNEX 2-D CF PROCUREMENT RED FLAGS MONITORING FORM

(LOCAL BIDDING FOR WORKS) (To be filled up by CF in two (2) copies of which one copy to be retained @ BSPMC and the other copy to be kept in ACT. RPMT will be furnished one photocopy). Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS

Estimate within prevailing local prices



W/IN THRESH HOLD

ABOVE THRESH HOLD

REMARKS

Package #1

Package #2

Package #3

Package #4

Package #5

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ C. PRE – PROCUREMENT YES NO OBSERVATIONS REMARKS Pre-procurement conference conducted by the

Procurement Team

Bidding documents prepared by PT Invitation to Bid posted at the Barangay Hall


billboards Pre-bid conference conducted Letters sent to COA inviting them to attend Invitation to Bid announced at local radio stations.

D. SUBMISSION OF BIDS 2

YES NO OBSERVATIONS REMARKS All bids are submitted on or before the deadline All bids are placed inside bid box with lock All bids are placed in sealed envelopes

E. OPENING OF CANVASS YES NO OBSERVATIONS REMARKS Opening was made when BAC is in quorum Bids are sealed prior to opening deadline Opening was done in the place stipulated in the

Invitation to Bid.

Opening was done in public All bids are complete as per checklist of documents Bid security is in acceptable form

F. EVALUATION YES NO OBSERVATIONS REMARKS Erasures of bid are initialed by concerned

contractor.

Bid documents are initialed by BAC Technical Working Group (TWG) provided technical

assistance

Abstract of Bids prepared Specification conforms to the requirement Complying Bids were ranked from lowest to highest

G. CONTRACT

YES NO OBSERVATIONS Award of contract was given to the lowest calculated

responsive bidder

NOL secured/issued Performance Security posted acceptable Notice to Proceed issued

H. IMPLEMENTATION

YES NO OBSERVATIONS REMARKS Bank Guarantee for Advance Payment posted is

acceptable

Technical assistance provided by DAC and RIE Progress report made base by actual physical

accomplishment

Payments were made with complete documents. II. Community Finance Red Flags




Grant fund balance is 10% of the amount released and RFR has been prepared and/or submitted by the


BSPMC within 5 days. Actual delivery of LCC committed and reflected in

the detailed POW meet at least 50% when requesting for the release of 2nd tranche.



Prepared by: Noted by: _________________________ _________________________ Community Facilitator Area Coordinator Date: __________________ * Barangay’s certification need not have AC notation Note: DAC to fill up this portion in the copy of report for the region. Name & Signature of DAC


ANNEX 2-E CF PROCUREMENT RED FLAG MONITORING FORM

(DIRECT CONTRACTING FOR WORKS) (To be filled up by CF in two (2) copies of which one copy to be retained @ BSPMC and the other copy to be kept in ACT. RPMT will be furnished a photocopy.) Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS Estimate within prevailing local prices

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ B. PACKAGING


REMARKS W/IN THRESHHOLD

ABOVE THRESHHOLD

Package 1 Package 2 Package 3 Package 4

C.QUOTATION YES NO OBSERVATIONS REMARKS Quotation served to lone supplier Technical Specifications are specified

D. SUBMISSION OF QUOTATIONS YES NO OBSERVATIONS REMARKS Quotation is sealed during submission Quotation is submitted by owner Quotation is placed inside bid box

E. OPENING OF QUOTATION YES NO OBSERVATIONS REMARKS Opening of Quotation was conducted with BAC in


Opening was conducted immediately after the deadline of submission


Open sealed envelop and read aloud in public the name of the contractor and the documents attached.

G. SCRUTINY OF QUOTATIONS YES NO OBSERVATIONS REMARKS Quotations are signed by BSPMC Chairperson Quotations are initialed by BAC Documents are complete as per checklist

H. AWARDING OF QUOTATION YES NO OBSERVATIONS REMARKS Awarded to lowest calculated responsive quotation Winner conforms to specifications Award made to legitimate (with license) contractor.

I. CONTRACT PREPARATION YES NO OBSERVATIONS REMARKS RPMT Clearance secured

J. CONTRACT IMPLEMENTATION YES NO OBSERVATIONS REMARKS Notice to Proceed issued by BSPMC Retention money withheld Bank guarantee for Advance Payment in appropriate

form

Technical Assistance provided by RIE and DAC Payments made based in actual percentage of

physical accomplishment

Payments are made with complete supporting documents attached.









Prepared by: Noted by: _________________________ _________________________ Community Facilitator Area Coordinator Date: __________________ * Barangay’s certification need not have AC notation


Note: DAC to fill up this portion in the copy of report for the region Name & signature of DAC


ANNEX 2- F CF PROCUREMENT RED FLAG MONITORING FORM

(DIRECT CONTRACTING FOR GOODS) (To be filled up by CF in two (2) copies of which one copy to be retained @ BSPMC and the other copy to be kept in ACT. RPMT will furnished a photocopy) Name of Community Project: _________________________ Location: _________________________ Date of Monitoring: _________________________ I. PROCUREMENT A. COST ESTIMATES/POW YES NO OBSERVATIONS REMARKS Estimates within prevailing local prices

Others: _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ B. PACKAGING


REMARKS W/IN THRESHOLD

ABOVE THRESHHOLD

Package 1 Package 2 Package 3 Package 4

C. CANVASSING YES NO OBSERVATIONS REMARKS Canvass form serve to lone supplier Technical Specification is specified instead of brand Canvass served by designated canvasser of the

Procurement Team

D.SUBMISSION OF CANVASS YES NO OBSERVATIONS REMARKS Canvass are sealed prior to opening Canvass are placed inside bid box Canvass are personally hand carried by at least two

(2) PT members

Canvass are submitted by the owner representative E. OPENING OF CANVASS YES NO OBSERVATIONS REMARKS Opening of canvass was conducted with the BAC in


Opening was conducted on the date specified in the canvass forms


F. SCRUTINY OF CANVASS YES NO OBSERVATIONS REMARKS Erasures of canvass are initialed Canvass form is signed by at least two (2) PT

members

Canvass form is initialed by BAC members G. AWARDING OF CANVASS YES NO OBSERVATIONS REMARKS Awarded to the lowest calculated responsive

canvass

Winner conforms to specifications Is the material to be supplied tested for quality? For

materials to be supplied by informal suppliers, they also be tested for quality.

Awards are made to legitimate supplier(with business permit). If no, explain in remarks why?

H. DELIVERY OF GOODS YES NO OBSERVATIONS REMARKS Goods are completely delivered on site as per

Purchase Order

Goods delivered are in accordance to specifications Goods delivered are used in the project Goods delivered are inspected by MIT

I. PAYMENT YES NO OBSERVATIONS REMARKS Payment is on time Payment made only to goods delivered Signatories of check are BSPMC Chair, Brgy

Treasurer & Area Coordinator

Is the penalty observed for the late deliveries? (1/10 of 1% per day)









Prepared by: Noted by:


_________________________ _________________________ Community Facilitator Area Coordinator Date: __________________ * Barangay’s certification need not have AC notation Note: DAC to fill up this portion in the copy of report for the region Name & Signature of DAC


(Suggested format for RPMO NOL)

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT _______________________________________

(Address of Field Office) Date: ___________________ Mr. / Mrs. / Ms. ______________________ Barangay _____________, ______________,(Municipality), ____________(province) BSPMC CHAIRPERSON

Thru: ______________________ Area/Municipal Coordinator Field Office _____ From : Director ________________________

Regional Project Director or Manager KALAHI-CIDSS Project Subject: Request for No Objection Letter (NOL) Dear Mr. / Mrs. / Ms. ______________: This is to acknowledge receipt of your request for No Objection Letter for _____________(name of sub-project) community project of Brgy. __________, ________________(Municipality), ____________(Province), Region ___________. ….(if no deficiencies, the following will be stated) Upon thorough review of all submitted documents, we found out that the procurement was done in accordance with the KC Procurement Guidelines, therefore, we interpose no objection to the award of contract to ________________________ (supplier/contractor) in the amount not to exceed PhP. ________________ (amount of contract). … If with with deficiencies, the following will be stated…

Based on your submission, the boxes with check are the documents we received, we would like to clarify the following:

(State the clarification and/or lacking documents/information that needs to be submitted).

Please comply the remaining requirements to facilitate the processing of your NOL.

Very Truly yours, _________________________ Regional Project Director or Regional Project Manager


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENTS FILING CHECKLIST (ANNEX 1-A)

Procurement Method: Community Force Account Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING

CHECK MARKS DOCUMENTS PERSON

RESPONSIBLE REMARKS

Daily Rate Basis Laborers Disbursement Voucher Employment Record Sheet Daily Time Record Pakyaw Contracts Disbursement Voucher List of Workers Certification of Accomplishment Honoraria To Committee Members Disbursement Voucher Employment Record Sheet Time Sheets Training Expenses Disbursement Voucher Training Completion Report

Contract with the trainers(if applicable)

Training Design and Budget

Petty Cash Fund (Establishment) Disbursement Voucher

Minutes of BSPMC Executive Committee Meeting

Reimbursement of Petty Cash Fund Disbursement Voucher Petty Cash Liquidation Summary Petty Cash Voucher w/supporting documents

Payment of Goods to Non-registered Suppliers

Reimbursement Expense Receipt Disbursement Voucher

Certification from the Project Engineer. (Materials delivered on site and in accordance to specs.

Certification from Punong Barangay(a.) No legitimate or registered supplier in the area; b.) Buying the materials from legitimate supplier’s in other areas would entail additional cost not provided in the POW)

Purchase Order Abstract of Canvass Canvass Forms


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE

DOCUMENTS FILING CHECKLIST (ANNEX 1-B)

Procurement Method: Direct Contracting of Works Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING

CHECKMARKS DOCUMENTS PERSON

RESPONSIBLE REMARKS

1. Approved Program of Works

BSPMC Chairperson/Com. Bookkeeper (CB)

2 . Planned Community Procurement Packaging Procurement Team/CB

3. Actual Community Procurement Packaging Procurement Team/CB

4. Data Base of Prices ( Regional Office) DAC/CB 5. Minutes of Pre-Procurement Conference PT/CB 6. Invitation to Quote PT/CB 7. Minutes Opening of Quotation PT/CB 8. Contractor’s License PT/CB 9. Minutes of Evaluation of Quotation PT/CB

10. RPMT NOL and MCA-Philippines eligibility verification letter as applicable

BSPMC Chairperson/CB

11. Notice of Award PT/CB 12. Conditions of Contract DAC/CB 13. Contract of Agreement PT/CB 14. Performance Security PT/CB 15. Drawing/Plan/Specifications DAC/CB

16. Notice to Commence BSPMC Chairperson/CB

17. CF Proc Red Flag Monitoring Form DAC/CB

18. Contractor’s Billing Barangay Treasurer

19. Joint Inspection Report PIT/CB

20. Disbursement Voucher with attached photocopy of cheque

Barangay Treasurer

21. Official Receipt Barangay Treasurer

Note: 1. Items 1-15 to be attached to first payment only (or refer to finance manual) 2. Second and succeeding payments require items 17-21 only(or refer to Finance manual)


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENT FILING CHECKLIST (ANNEX 1-C)

Procurement Method: Local Shopping of Works Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING


RESPONSIBLE REMARKS

1. Approved Program of Works BSPMC Chairperson/CB

2 . Planned Community Procurement Packaging Procurement Team /CB


4. Pre-Procurement Conference (Minutes) Procurement Team /CB

5. Invitation to Quote Procurement Team/CB

6. Abstract of Quotation Procurement Team/CB

7. Minutes of Opening of Quotation PT/CB 8. Contractor’s License DAC/CB 9. Minutes of Evaluation of Quotation PT/CB

10. RPMT NOL (If applicable) BSPMC Chairperson/CB

11. Notice of Award BSPMC Chairperson/CB

12. Condition of Contract BSPMC Chairperson/CB

13. Contract of Agreement PT/CB 14. Performance Security PT/CB


16. Bank Guarantee for Advance Payment Barangay Treasurer/CB

17. Drawing/Plan/Specification PT/CB 18. CF Proc Red Flag Monitoring Form PT/CB

19.Contractors Billing Barangay Treasurer

20.Joint Inspection Report DAC/CB

21. Disbursement Voucher w/ photocopy of cheque

Barangays Treasurer/CB

22. Official Receipt Barangay Treasurer/CB

Note: 1. Items 1-17 to be attached to first payment only 2. Second and succeeding payments require items 18-22 only


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENT FILING CHECKLIST (ANNEX 1-C)

Procurement Method: Local Shopping of Works Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING


RESPONSIBLE REMARKS

Finance Documents 1. Official Receipt 2. Disbursement Voucher

3. Sales/Charge Invoice or Statement of Accounts

4. Delivery Receipts 5. Contract 6. Abstract of Quotation 7. Invitation to Quote Procurement Documents 1 Approved Program of Works BSPMC Chairman

2 Community Procurement Plan Procurement Team (PT)

3 Pre-Procurement Conference (Minutes) Procurement Team (PT)

4 Invitation to Quote Procurement Team (PT)

5 Instruction to Bidders DAC/PPT/PT 6 Conditions of Contract DAC/PPT/PT 7 Drawings/Plan DAC 8 Technical Specification DAC 9 Contractor's License DAC

10 Minutes of Opening of Quotation Procurement Team (PT)

11 Abstract of Quotation BAC/PT

12 Minutes of Evaluation Quotation Procurement Team (PT)

13 Contract Agreement BSPMC Chairman 14 No Objection Letter BSPMC Chairman 15 Notice to Proceed BSPMC Chairman 16 Performance Security BSPMC Chairman

17 Bank Guarantee for Advance Payment Barangay Treasurer

18 CF Proc Monitoring Form CF 19 Request for Fund Release BSPMC Chairman 20 Physical Accomp. Reports (monthly) PIT


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENT FILING CHECKLIST (ANNEX 1-D)

Procurement Method: Local Bidding of Goods Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING

CHECKMARK DOCUMENTS PERSON

RESPONSIBLE REMARKS

1 Approved Program of Works BSPMC Chairperson/CB

2 Planned Community Procurement Packaging BSPMC Chairperson/CB

3. Actual Community Procurement Packaging BSPMC Chairperson/CB

4. Minutes of Pre-Procurement Conference PT/CB

5 Invitation To Bid Procurement Team /CB

6 Minutes of Pre-Bid Conference Procurement Team/CB

7 Minutes of Bid Opening Procurement Team /CB

8 Forms of Bid Procurement Team /CB

9 Bid Security Barangay Treasurer/CB

10 Certificate of Business Registration Procurement Team/CB

11. Minutes of Evaluation of Bids Procurement Team/CB

12. Abstract of Bid Procurement Team/CB

13.Post qualification Report PT/CB 14.Resolution to Award PT/CB

15. MCA-Philippines Eligibility Verification Letter; No Objection Letter (NPMT)

BSPMC Chairperson/CB

16. Performance Security Procurement Team/CB

17. Notice of Award BSPMC Chairperson/CB

18. CF Proc Red Flag Monitoring Form Procurement Team/CB

19. Purchase Order PIT/CB

20. Sales/Charge Invoice or Statement of Accounts and/or Delivery Receipt

Barangay Treasurer/CB

21. Certificate of Inspection and Acceptance* MIT/CB

22. Disbursement Voucher w/ attached photocopy of cheque


23.Official Receipt Barangay Treasurer/CB

*Certificate of Inspection could be indicated in the Purchase Order or Delivery Receipt.


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENT FILING CHECKLIST (ANNEX 1-E)

Procurement Method: Local Bidding of Works Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING


RESPONSIBLE REMARKS

Finance Documents


2.Planned Community Procurement Packaging BSPMC Chairperson/CB

3. Actual Community Procurement Packaging BSPMC Chairperson/CB

4 Minutes of Pre-Procurement Conference Procurement Team /CB

5 Invitation To Bid Procurement Team/CB

6. Minutes of Pre-bid conference Procurement Team/CB

7. Minutes of Bid Opening Procurement Team/CB

8. Instruction to Bidders PT/CB 9. Drawings/Plan PT/CB 10. Technical Specifications PT/CB

11. Forms of Bid Procurement Team/CB

12. Bid Security Barangay Treasurer/BCB

13 Minutes of Bid Evaluation PT/CB 14 Abstract of Bids PT/CB 15. Contractor’s License PT/CB 16 Post Qualification Report PT/CB

17 Resolution to Award BSPMC Chairperson/CB

18 No objection Letter (NPMT); BSPMC Chairperson/CB

19 Notice of Award BSPMC Chairperson/CB

20. Contract Agreement/Conditions of Contract BSPMC Chairperson/CB

21. Performance Security BSPMC Chairperson/CB


23. Bank Guarantee for Advance Payment Barangay Treasurer/CB

24. CF Proc Red Flag Monitoring Form CF/CB

25. Contractor’s Billing Barangay Treasurer/CB

26. Joint Inspection Report Barangay Treasurer/CB

27. Disbursement Voucher w/ photocopy of cheque


28.Officicial Receipt Barangay Treasurer/CB

Note: 1. Items 1-24 to be attached to first payment only 2. Second and succeeding payments require items 25-28 only


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE

DOCUMENT FILING CHECKLIST (ANNEX 1-F) Procurement Method: Direct Contracting of Goods Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING


RESPONSIBLE REMARKS


2. Planned Community Procurement Packaging Procurement Team/CB


4. Data Base Price( Regional Office) DAC/CB 5. Minutes of Pre-Proc Conference PT/CB

6. Certification from Procurement Team that no other supplier is available in the area


7. Canvass form PT/CB 8. Minutes of Opening of Canvass PT/CB 9.Minutes of Evaluation of Canvass PT/CB

10. No Objection Letter (RPMT) BSPMC Chairperson/CB

11. Purchase Order PIT/CB 12. CF Proc Red Flag Monitoring Form CF/CB

13. Sales/Charge Invoice and/or Delivery Receipt


14. Certificate of Inspection and Acceptance* Barangay Treasurer/CB



16. Official Receipt Barangay Treasurer/CB

*Certificate of Inspection and Acceptance could be indicated in the Purchase Order or Delivery Receipt


COMMUNITY PROJECT IMPLEMENTATION PROCUREMENT AND FINANCE DOCUMENT FILING CHECKLIST (ANNEX 1-G)

Procurement Method: Direct Shopping of Goods Name of Community Project: ___________________________ Location: ___________________________

DATE OF

FILING


RESPONSIBLE REMARKS


2. Planned Community Procurement Packaging PT/CB 3. Actual Community Procurement Packaging PT/CB 4. Minutes of Pre-Procurement Conference PT/CB 5. Canvass form PT/CB 6. Minutes of Opening of Canvass PT/CB 7. Minutes of Evaluation of Canvass PT/CB 7. Abstract of Canvass PT/CB

8. No Objection Letter (RPMT) BSPMC Chairperson/CB

9. Purchase Order Barangay Treasurer/CB

10. CF Proc Red Flag Monitoring Form CF/CB

11. Sales/Charge Invoice and/or Delivery Receipt


12. Certification of Acceptance and Inspection* MIT/CB



14. Official Receipt Barangay Treasure/CB

*Certificate of Inspection and Acceptance could be indicated in the Purchase Order and Delivery Receipt


CHAPTER 11 | GUIDELINES AND

CLARIFICATIONS


GUIDELINES ON THE USE OF DIRECT CONTRACTING OF LABOR Direct Contracting of labor may be used under the following conditions:

c. If the work requires more skilled workers of which the community could not provide

d. If the laborers committed by the community in the Community Employment Record Sheet did not materialized

Organization of the Group

The formation of Group should be the responsibility of the BSPMC with the assistance of the Community Facilitator.

Supervision 4. The Project Supervisor hired by the BSPMC will oversee the selection of the

contract group and be a witness to the agreement. 5. The Project Supervisor / Foreman will ensure compliance with the design

standards and specifications. 6. The group leader will assist the Project Supervisor in setting out the task and

distributing tools; assure that the work the work is undertaken as directed.

Tools 7. Hand tools will be supplied by the BSPMC through the Project Supervisor. 8. The Project Supervisor will be responsible for keeping the tools in working order

by sharpening / repairing them. 9. Tools will be issued by the workforce and the issuance will be documented in the

contract documents / Annex “A “ 10. Worn-out tools should be returned to the storekeeper for replacement. These

should be returned from the project site to the property custodian for write off or replacement for tools lost.

11. On completion of the Direct Contract Agreement all tools and implements, whether serviceable or not, shall be returned to the storekeeper. This shall be made a condition for payment of the Contract Agreement. Any loss will be deducted at replacement value from the contract sum and the amount recovered will be used for the purpose of replacement for the tools lost.

12. No tools shall be offered or sold to the workers Payment

6. Before commencing the work, the barangay treasurer has to certify the

availability of funds. 7. Payment will be made after the completion of the work only as certified by the

Project Supervisor. Direct Contract Documents

4. Proposal 5. Direct Contract Agreement. 6. List of Tools to the provided to the Group.


ANNEX “ A “ DIRECT CONTRACT AGREEMENT OF LABOR

LIST OF TOOLS PROVIDED TO THE DIRECT CONTRACT GROUP BY THE PROJECT ENGINEER.

ITEM QUANTITY Axe * Bolo (multi-purpose) * Brush Hook* Grass Cutting Bolo* Grass Cutter * Crow Bar * Shovel * Hoe * Forked Hoe* Pick Mattock* Pickaxe* Sledge Hammer&* Rake Spreader* Hand Rammer* Wheel Barrow*

* Including Handles I certify that the above tools have been received by me in behalf of the CONTRACT GROUP. ______________________ GROUP LEADER I certify that the above tools have been returned by the PAKYAW GROUP in acceptable condition. ______________________ Project Supervisor


CLARIFICATION ON THE USE OF SPECIAL POWER OF ATTORNEY (SPA) and SUB-CONTRACTING IN KALAHI-CIDSS PROJECT It has been observed that various community procurement of civil works for KALAHI-CIDSS community community projects, are resorting to the use of Special Power of Attorney (SPA).In some cases, SPAs are used for ‘sub-contracting’ a project to one another Contractor. Hence the need to clarify, to wit: Section 4 of the government procurement Reform Act or R.A. 9184 provides that ‘Any treaty or international or executive agreement affecting the subject matter of this act to which the Philippines is a signatory shall be observed’. For MCC-funded project/s: The Compact Agreement signed between MCC and the Government of the Philippines provides that “MCC Funding will be granted to DSWD to plan and implement community-chosen sub-projects in accordance with the Kalahi-CIDSS Project manuals approved by MCC.” Thus, the procurement procedures provided for in this Community Procurement Manual, as acceptable to MCC shall be followed. It includes this directive and other addendum provisions to the Community Procurement Manual. A Special Power of Attorney (SPA) is basically a contract known as Agency. By the contract of Agency, a person binds himself to render some service or to do something representation or on behalf of another, with the consent or authority of the latter (See; Art.1868, Civil code of the Philippines). Accordingly, in a contract of Agency, the principal allows an agent (Attorney-in-Fact) to do acts, service, or things for him as if personally present in certain transactions. Although the execution of an SPA is allowed under the law, the KALAHI-CIDSS: KKB Project ONLY allows the SPA authorizing the Attorney-in-Fact to represent the principal during the conduct of procurement transactions (i.e. submit bid, attend pre-bid conference, bid opening); BUT NOT in the implementation and execution of the contract, including bidding or shopping for works or goods. Moreover, the Attorney-in-Fact should be legally connected to or part of the Supplier’s/Contractor’s firm. Under an SPA, therefore, the Attorney-in-Fact is ONLY an AGENT of the PRINCIPAL and is only authorized to represent the Principal during procurement proceedings in cases the Principal is not available. As such, the Agent SHOULD ONLY USE THE ELIGIBILITY, TECHNICAL, LEGAL and FINANCIAL DOCUMENTS OF ITS PRINCIPAL as required by R.A. 9184 and its IRR-A, and by KALAHI-CIDSS Community-Based Procurement Manual. It should NOT be allowed to use other documents/requirements (including his own) to prove the eligibility, technical and financial capacity of its principal. Even during Contract implementation, the principal should be the one directly and entirely responsible for the execution of the contract. While sub-contracting may be allowed under the Civil Works Generic Procurement Manual (See GPM Vol. III, p. 82) if given consent by the Procuring Entity, KALAHI-CIDSS does not ALLOW sub-contracting in any form, hence direct engagement to the legitimate contractor/supplier shall be observed. Procedures on procurement planning, packaging, implementation of the Planned Community Procurement Packaging (PCCP), and monitoring procurement compliance are clearly stipulated in the Community Procurement Manual. In cases where there is contradiction of provisions and procedures, between, R.A. 9184 and the KALAHI-CIDSS: KKB Community Procurement Manual, the latter and its addendum provisions shall be observed.


Requirement for Philippine Standards (PS) Quality and/or Safety Certification Mark of Construction Materials used for Community Projects Relative to the implementation of community projects, quality of construction materials purchased are seldom verified if it passed the Philippine National Standard. As a result, community projects making use of low-grade materials are at risk in terms of safety and sustainability. As an example, for potable water system community projects, communities using High Density Polyethylene (HDPE) Pipes or Polyethylene (PE) pipes since it is easy to haul and install, but without PS Mark may cause harm to the water users. In this connection, we sought technical assistance from the Department of Trade and Industry-Bureau of Product Standards (DTI-BPS), they cautioned us not to acquire materials that did not pass BPS inspection, testing and certification requirements, as these products are considered unsuitable if it does not bear PS Mark. The PS Mark reveals a manufacturer’s compliance to the requirements of a Philippine National Standard (PNS). As such, the BPS authorizes a manufacturer to affix the PS mark on its product or its product’s packaging material, to let the buying public know that the marketed product has successfully passed DTI requirements. As a PS License holder, a manufacturer has shown evidence that it maintains a system according to the National Standard. This assures the consumers that the PS License holder can consistently satisfy them by making only safe and quality products. In view of the foregoing, you are hereby directed to include the PS Mark License when procuring goods especially pipes for potable water as a minimum requirement in the eligibility of the supplier/manufacturer. The intent of requiring the PS Mark License is to ensure product QUALITY, SAFETY and RELIABILITY. This is line with the KALAHI-CIDSS: KKB principle of sustainability and safeguard to ensure that materials supplied to the community projects complied with the National Standards.


CLARIFICATION ON THE METHOD OF PROCUREMENT TO BE USED FOR RENTAL AND PROCUREMENT OF HAND TOOLS FOR COMMUNITY PROJECTS

Fiduciary reviews revealed that there were confusions on what method of procurement to be used in renting hand tools for use in community projects. Form used is either Canvass or Lease of Equipment. It was also observed that there were rentals for hand tools that are more expensive than procuring such tool/s. Hand tools such as Planer, Sander, Grinder, Drill/Drivers, Routers, Screw Gun, Rivet Gun, and the like, are commonly used in the construction of building community projects and these are normally included in the program of works. Some tools are needed for a few days and some are to be used in the entire duration of the community project. However, there are tools that costs more than the allowed budget for the tools provided in the ACT manual that is PhP. 4,000.00 per community project for buildings, thus, the community resorts to renting the needed tools. In view of the foregoing, we would like to reiterate that tools are considered goods as cited in the procurement manual (please refer to the example provided in the procurement manual). Hence, the proper form to be used is Canvass for Goods. For rental, the quantity indicated in the canvass form shall be in terms of the Estimated number of hours or days that the tool/s will be utilized while the Unit of measure to be used shall be in terms of hour/s or day/s. Using Canvass for goods requires less paper works rather than using Lease of Equipment which requires longer period of time and more paper works such as invitation to quote, contract, supplemental agreement, among others. In cases of rental of hand tools that are more expensive than the cost of the tool/s, it is recommended that said equipment will be procured chargeable to either LCC or grant. Provided, however, that Operation and Maintenance of the tool/s is established; and, a cost comparison is submitted/attached as part of the readiness filter. Provided further that utilization is discussed during Barangay Assemblies to discuss among others, turn over to the association/organization or the BLGU after the completion of works. In contrast, it is also reiterated that procurement of hand tools for water system community projects such as pipe wrench, threaders, and other tools for pipe installation is allowed for Operation and Maintenance.


CLARIFICATION AND ENHANCEMENT ON THE PROCUREMENT METHOD FOR RENTAL OF EQUIPMENT USED IN COMMUNITY PROJECTS

Fiduciary reviews revealed that there were confusions on what procurement method should be used for the rental of equipment. Under the provisions of the Community-Based Procurement Manual, rental of equipment except for trucking for the delivery of goods, is categorized as works. In the procurement process, documentary requirements for both light and heavy equipment are the same. For rental of equipment, the requirements include among others, the Invitation to Lease, Lease Agreement and Conditions of Contract.

However, there are cases where categorization varies depending on the need as specified in the program of works. Categorize as follows: Equipment Rental as Goods – if the equipment is to be used on an hourly or daily basis inclusive of fuel, oil, lubricants and operator–fully operated for heavy equipment e.g. bulldozer, grader, pay loader, etc… The procurement form to be used in renting any equipment categorized as goods shall be Canvass and Purchase Order (please see attached format). This shall also apply to rental of light equipment such as concrete mixer, portable/plate compactor, water pump, concrete vibrator, chain block, welding machine, drilling machine, bar cutter, generator set, acetylene set, chain saw, and the like that are commonly used in the community projects. The unit and unit rate for any type of equipment shall be dependent on the requirement. Trucking/hauling as defined in the enhanced procurement manual is considered as goods. The unit and unit rate used shall be in terms of the quantity to be hauled e.g. 20 pieces Reinforced Concrete Pipes at PhP. 200 per piece, 50 rolls HDPE Pipes at PhP. 100 per roll, 40 cubic meters sand at PhP. 250 per cubic meter. The purchase order form used for trucking shall be the same as provided in this guideline. For purchase order amounting to PhP. 20,000.00 and below, payment shall be made upon delivery/completion. For amount of purchase order amounting to more than PhP. 20,000.00, the following conditions may be allowed:

1. The Lessor has the option to claim for advance payment up to fifteen (15) percent provided a Bank Guarantee of equal amount from a reputable bank is submitted to the BSPMC and a certification from the DAC or the Municipal Engineer (if there is no DAC in the Municipality) the equipment is delivered at the project site. 2. The Lessor can claim partial payment if the accomplishment is at least twenty (20) percent without submitting a bank guarantee provided the DAC or the Municipal Engineer (if there is no DAC in the Municipality) certified that the equipment is being utilized on the date claimed.

Equipment Rental as Works - if the utilization of the equipment is based on the quantity of the item/s of work/s. Payment for rental under works is based on an output that the equipment will complete. Similar with Equipment Rental as Goods, equipment should be fully operated. The procurement form to be used in renting any equipment categorized as works shall be Invitation to Lease Equipment and Equipment Lease Agreement for Works (please see attached format).

For contract amounting to PhP. 30,000.00 and below, payment shall be made upon completion of the contract. For contract amounting to more than PhP. 30,000.00 and above, the BSPMC may make advance payment to the Lessor in the amount up to fifteen (15) percent of the Contract Price only after the DAC had certified that the


equipment is delivered at the project site and the Lessor has submitted to the BSPMC a Bank Guarantee of equal amount. The advance payment shall be repaid by making deductions for every progress billing with consideration that it is fully recoup upon reaching 80% physical accomplishment. Progress payment is allowed. The first recoupment shall start when accomplishment has reached 20% of the total contract price. Full payment shall be made only upon completion of the services with certification of the DAC and approval of the BSPMC. There shall be no retention money withheld on any progress billing for rental of equipment.

It is reiterated that the detailed procedures as provided in the manual shall be strictly followed.

The threshold for the issuance of No Objection Letter shall also be strictly followed.


GUIDELINES ON CONTRACT TERMINATION I. RATIONALE One of the causes of delay in the implementation of contracted community projects is the poor performance of the contractor/s or suppliers in delivering the expected output as provided in the contract. This includes workmanship or poor quality of goods, delay in the execution of works or delivery of goods, abandonment of works, and others. Despite the existence of a provision on termination of the contract, such provision has not been strictly enforced because of the absence of specific guidelines and procedures on how to implement it. Hence, the need to reiterate the Project guidelines in the implementation of Contract Termination. With reference to the provisions of Annex “A” of the Government Policy Procurement Board (GPPB) Resolution No. 018-2004 dated December 22, 2004, hereunder are the implementing guidelines.

II. PURPOSE, SCOPE, AND APPLICATION

This guideline aims to promote fairness in the termination of procurement contracts and to prescribe contract conditions and measures to enable BSPMC to protect its interests. For this purpose, policies and procedures relating to the whole or partial termination of BSPMC procurement contracts of goods and infrastructure projects (works) are herein established. III. DEFINITION OF TERMS 1. Coercive Practice means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract. 2. Collusive Practice means a scheme or arrangement including practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels to prevent free and open competition.

3. Corrupt Practice means the offering, giving, receiving or soliciting of anything of value to influence the action of a public official in the selection process or in contract execution. It also means entering, on behalf of the BSPMC, into any contract or transaction manifestly and grossly disadvantageous to the same, whether or not the public officer profits or will profit thereby; and similar acts as provided in Republic Act 3019 also known as the Anti-Graft and Corrupt Practices Act. 4. Fraudulent Practice means a misrepresentation of facts in order to influence a selection process or the execution of a contract to the detriment of the BSPMC. 5. Head of the BSPMC refers to the Chairperson of the BSPMC; 7. Termination in Part means the termination of a part but not all, of the work that as not been completed and accepted under a contract. 8. Termination in Whole means the termination of all of the work that has not been completed and accepted under a contract.


9. Show Cause refers to a notice which the BSPMC is required to issue prior to terminating a contract. The purpose of a show cause notice is to enable the contractor to present its position why the contract should not be terminated. 10. Verified Report refers to the report submitted by the Technical Working Group to the BSPMC Chairperson setting forth its findings as to the existence of grounds or causes for termination and explicitly stating its recommendation for the issuance of a Notice to Terminate. IV. GROUNDS FOR TERMINATION OF CONTRACTS A. Termination for Default 1. In contracts for Goods:

The BSPMC shall terminate a contract for default when any of the following conditions attend its implementation: a) Outside of force majeure17

(b) The Project Supervisor gives notice that the Contractor has failed to correct a Defect within twenty one (21) days as determined by the Project Supervisor;

, the Supplier fails to deliver or perform any or all of the Goods within the period(s) specified in the contract, or within any extension thereof granted by the BVSPMC pursuant to a request made by the Supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contact price; b) As a result of force majeure, the Supplier is unable to deliver or perform any or all of the Goods, amounting to at least ten percent (10%) of the contract price, for a period of not less than sixty (60) calendar days after receipt of the notice from the BSPMC stating that the circumstance of force majeure is deemed to have ceased; or c) The Supplier fails to perform any other obligation under the Contract.

2. In contracts for Infrastructure Projects (Works): The BSPMC may terminate the Contract for “”breach of contract.” Fundamental

breaches of Contract shall include, but shall not be limited to, the following:

(a) The Contractor stops work for ten (10) days when the stoppage has not been authorized by the Project Supervisor;

(c) The Contractor has delayed the completion of the works by thirty (30)

calendar days;

(d) If the contractor incurred a minimum of negative fifteen percent (-15%) slippage but remains dormant for almost two months despite receipt of the warning letter from the BSPMC; and,

(e) The Contractor:

17 Force majeure (French for "greater force") is a common clause in contracts which essentially frees one or both parties from liabilities when an extraordinary event beyond the control of the parties, such as flood, war, riots, acts of God, et cetera prevents one or both parties from fulfilling their obligations under the contract.


i. Abandons the contract works, refuses or fails to comply with a valid instruction of the BSPMC or fails to proceed expeditiously and without delay despite a written notice by the BSPMC;

ii. Does not actually have on the project site the minimum essential

equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project;

iii. Does not execute the Works in accordance with the contract or

persistently or flagrantly neglects to carry out its obligations under the contract; or

iv. Neglects or refuses to remove materials or to perform a new work

that has been rejected as defective or unsuitable.

Notwithstanding the above, the BSPMC with the concurrence of the Regional Project Management Team (RPMT) may terminate the Contract for its convenience by giving the Contractor a fifteen (15) days notice in writing. If the Contract is terminated, the Contractor shall stop work immediately, make the Site safe and secure, and leave the Site within seven (7) days of the completion of the notice period.

3. Sanctions for contracts terminated by Default The rescission18 (cancellation/termination) of the contract shall be accompanied by the confiscation by the BSPMC of the contractor’s performance security. The contractor will also be recommended for blacklisting. The contractor shall be paid on a “quantum meruit19

The BSPMC may terminate the contract in case it is determined prima facie

”

B. Termination for Convenience The BSPMC may terminate the Contract, in whole or in part, at any time for its convenience. The BSPMC Chairperson may terminate a contract for the convenience of the BSPMC if it determined the existence of conditions that make Project Implementation economically, financially or technically impractical and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and national government policies. C. Termination for Insolvency The BSPMC shall terminate the Contract if the Supplier/Contractor is declared bankrupt or insolvent as determined with finality by a court of competent jurisdiction. In this event, termination will be without compensation to the Supplier/Contractor/Consultant, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the BSPMC and/or the Supplier/Contractor. D. Termination for Unlawful Acts

20

18 Rescission - the cancellation/termination of a contract and the return of the parties to the positions they would have had if the contract had not been made; " rescission may be brought about by decree or by mutual consent" 19 Quantum meruit – is the amount that should be paid as merited by the extent and quality of the original service performed in a contract or the reasonable value of services rendered. 20 Prima Facie - is a Latin word meaning “at first sight,” a fact presumed to be true until disproved.

that the Supplier/Contractor has engaged, before or during the implementation of the contract,


in unlawful deeds and behaviors relative to contract acquisition and implementation. Unlawful acts include, but are not limited to, the following:

a) Corrupt, fraudulent, collusive and coercive practices; b) Drawing up or using forged documents; c) Using adulterated materials, means or methods, or engaging in production contrary to rules of science or the trade; and d) Any other act analogous to the foregoing.

E. Termination by Contractor 1. In contracts for Infrastructure Projects: The Contractor may terminate its contract with the BSPMC if the works are completely stopped for a continuous period of at least thirty (30) calendar days through no fault of its own, due to any of the following reasons:

a) Failure of the BSPMC to deliver, within a reasonable time, its obligations stated under the terms of the contract (e.g. materials, right of way, non-payment of billings and related others; or b) The prosecution of the work is disrupted by the adverse peace and order situation, as certified by the Armed Forces of the Philippines Provincial Commander.

V. PROCEDURES FOR TERMINATION OF CONTRACTS 1. Verification. The Project Implementation Team (PIT) and/or the Monitoring and Inspection Team (MIT) shall inform the BSPMC Chairperson that delivery of goods/works has stopped based on the above conditions. The BSPMC Chairperson will convene for an Executive Committee meeting to discuss the acts or causes which may constitute ground(s) for termination as aforementioned. The BSPMC Chairperson shall order the Procurement Team with assistance of the TWG to conduct within a period of five (5) calendar days, verify the existence of such ground(s) and cause the execution of a Verified Report, with all relevant evidence attached. 2. Notice to Terminate. Upon recommendation by the Procurement Team with assistance of the TWG, the BSPMC Chairperson shall terminate contracts only by a written notice to the Supplier/Contractor conveying the termination of the contract. The notice shall state:

a) That the contract is being terminated for any of the ground(s) afore-mentioned, and a statement of the acts that constitute the ground(s) constituting the same; b) The extent of termination, whether in whole or in part; c) An instruction to the Supplier/Contractor to show cause as to why the contract should not be terminated; and d) Special instructions of the BSPMC, if any. The Notice to Terminate shall be accompanied by a copy of the Verified Report.

3. Show Cause. Within a period of seven (7) calendar days from receipt of the Notice of Termination, the Supplier/Contractor shall submit to the BSPMC Chairperson a verified position paper stating why the contract should not be terminated. If the Supplier/Contractor/Consultant fails to show cause after the lapse of the seven (7) day period, either by inaction or by default, the BSPMC Chairperson shall issue an order terminating the contract.


4. Rescission of Notice of Termination. The BSPMC may, at anytime before receipt of the Supplier’s/Contractor’s verified position paper to withdraw the Notice to Terminate if it is determined that certain items or works subject of the notice had been completed, delivered, or performed before the Supplier’s/Contractor’s receipt of the notice. 5. Decision. Within a non-extendible period of seven (7) calendar days from receipt of the verified position paper, the BSPMC Chairperson shall decide whether or not to terminate the contract. It shall serve a written notice to the Supplier/Contractor of its decision and, unless otherwise provided, the Contract is deemed terminated from receipt of the Supplier/Contractor of the notice of decision. The termination shall only be based on the ground(s) stated in the Notice to Terminate. 6. Contract Termination Review Committee (CTRC). The BSPMC Chairperson shall assign the Procurement Team with the assistance of the TWG to assist him in the discharge of his function under this Guideline. All decisions recommended by the Procurement Team shall be subject to the approval of the BSPMC Chairperson. 7. Take-over of Contracts. If a BSPMC terminates the contract due to default, insolvency, or for cause, it may enter into a negotiated procurement pursuant to Section 53(c) of R.A. 9184 and its Revised IRR or guidelines provided by the project. 8. BSPMC’s Options in Termination for Convenience in Contracts for Goods. The goods that have been performed or are ready for delivery within thirty (30) calendar days after the Supplier’s receipt of Notice to Terminate shall be accepted by the BSPMC at the PO/contract terms and prices. For goods not yet performed or ready for delivery, the BSPMC may elect:

a) To have any portion delivered or performed and paid at the contract terms and prices; and/or b) To cancel the remainder and pay to the Supplier an agreed amount for partially completed or performed goods and for materials and parts previously procured by the Supplier. If the Supplier suffers loss in its initial performance of the terminated contract, such as purchase of raw materials for goods specially manufactured for the BSPMC which cannot be sold in open market, it shall be allowed to recover partially from the contract, on a “quantum meruit” basis. Before recovery may be made, the fact of loss must be established under oath by the Supplier to the satisfaction of the BSPMC before recovery may be made.

9. Notice by Contractor. The Contractor must serve a written notice to the BSPMC of its intention to terminate the contract at least fifteen (15) calendar days before its intended termination. The Contract is deemed terminated if it is not resumed in thirty (30) calendar days after the receipt of such notice by the BSPMC. Attached is a matrix showing the period of action for termination. VI. BLACKLISTING The project reserves the right to blacklist suppliers/contractors as determined through the guidelines provided by the project. The blacklisted suppliers shall be recommended to the Government Procurement Policy Board - Technical Support Office (GPPB-TSO) and blacklisted contactor shall be referred to the Philippine Contractors Accreditation Board (PCAB) for license suspension/revocation. VII. AMENDMENTS 1. In the implementation of this Guideline, the NPMO may introduce modifications hereto through the amendment of its specific provisions as the need arises.


2. Any amendment to this Guideline shall be applicable to community projects advertised for bid after the effectivity of the said amendment.

PERIOD OF ACTION FOR TERMINATING CONTRACTS DUE TO DEFAULT BY SUPPLIER/CONTRACTOR

(GOODS and WORKS)

Note: CD – Calendar Days

ACTIVITIES Responsible Person

PERIOD OF ACTION (Calendar Days)

Minimum Max. Min. Max.

GOODS

WORKS Report of non-delivery of expected goods/services as provided in the grounds for termination

Project Implementation Team and/or the Monitoring and Inspection Team

1 CD

1 CD

1 CD

1 CD

Verification

Procurement Team with assistance of the Technical Working Group

Within 2 CD

Within 5 CD

Within 2 CD

Within 5 CD

Issuance of Notice of Termination Procurement

Team

1 CD

1 CD

1 CD

1 CD

Show Cause Order (The Supplier/Contractor will submit to the BSPMC a position paper why the contract should not be terminated)

The Supplier/Contractor

Within 7 CD

Within 7 CD

Within 7 CD

Within 7 CD

Rescission of Notice of Termination (The BSPMC may, at anytime before receipt of the Supplier’s/Contractor’s verified position paper to withdraw the Notice to Terminate if it is determined that certain items or works subject of the notice had been completed, delivered, or performed before the Supplier’s/Contractor’s receipt of the notice.

The BSPMC Chairperson to be delivered by the Procurement Team

1 CD

1 CD

1 CD

1 CD

Decision (The BSPMC Chairperson shall decide whether or not to terminate the contract)

The BSPMC Chairperson

Within 2 CD

Within 7 CD

Within 2 CD

Within 7 CD

Blacklisting The BSPMC

Chairperson or the RPD/RPM

Within 2

CD

Within 2 CD

Within 2 CD

Within 2 CD

Take-over of the Contract The BSPMC

1 CD

1 CD

1 CD

1CD

MINIMUM NUMBER OF DAYS 17 CDs 17 CDs

MAXIMUM NUMBER OF DAYS 25 CDs

25 CDs


GUIDELINES IN SUSPENSION / BACKLISTING / DELISTING OF CONTRACTORS, MANUFACTURERS, SUPPLIERS AND DISTRIBUTORS 1. RATIONALE One of the major causes of the delay in the implementation of community project is the withdrawal of contractors or overdue implementation of the contract/s. In like manner, untimely delivery of goods by the manufacturers, suppliers and distributors is also contributing in the delay in the completion of the community projects. Despite penalizing the contractors, manufacturers, suppliers and distributors by imposing liquidated damages and forfeiture of performance security, the expected quality and timely delivery services are not delivered.

Moreover, it has been discovered during the bidding process and fiduciary reviews that Contractors, Manufacturer, Suppliers and Distributors are in cahoots as evidenced by the bid documents submitted. Contractors, Manufacturer, Suppliers and Distributors artificially create semblance of competition during the bidding process. Hence, a need to impose sanctions to erring Contractors, Manufacturers, Suppliers and Distributors. 2. PURPOSE This guideline is issued to authorize the BSPMC through the RPMO (Regional Director or Regional Project Manager) and to authorize the RPMO to issue blacklisting or suspension orders to erring Contractors, Manufacturers, Suppliers and Distributors participating in KALAHI-CIDSS: KKB funded projects. 3. RULES & REGULATIONS 3.1 The BSPMC shall submit the following within seven (7) calendar days from its issuance.

A. Blacklisting Order duly signed by BSPMC Chairperson thru the Regional Director or the Regional Project Manager; and,

B. Delisting Order duly signed by the blacklisting BSPMC or RPMO following the procedures blacklisting.

3.2 The RPMO should also submit the abovementioned requirement with attached supporting documents within two (2) calendar days to the following:

A. For Suppliers, Manufacturers, and Distributors to the Government Procurement Policy Board (GPPB), through the GPPB-Technical Support Office (TSO), Unit 2506, Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas Center, Pasig City TeleFax: (632) 900-6741-44; and

B. For Constructors, to the Construction Industry Authority of the Philippines

(CIAP), 4F Jupiter 1 Bldg., 56 Jupiter St., Bel Air, Makati City. Fax:. 897.9336.

4. SCOPE


This guideline shall govern the blacklisting of manufacturers, suppliers, distributors and contractors involved in KALAHI-CIDSS: KKB Project for offenses or violations committed during competitive bidding and contract implementation. This guideline shall apply to all KALAHI-CIDSS: KKB FUNDED Projects. 5. PROHIBITION ON BLACKLISTED PERSONS/ENTITIES TO PARTICIPATE IN THE BIDDING OF KALAHI-CIDSS: KKB PROJECTS/CONTRACTS A person/entity that is blacklisted by a procuring entity and/or included in the Government Procurement Policy Board (GPPB) Consolidated Blacklisting Report shall not be allowed to participate in the bidding of all KALAHI-CIDSS: KKB funded projects during the period of disqualification unless it is delisted as provided for in these guidelines. 6. DEFINITION OF TERMS 6.1 Appellate Authority. The BSPMC with concurrence of the RPMO. 6.2 Award. A written notice from the BSPMC accepting a bid or proposal. 6.3 Blacklisting. An administrative penalty disqualifying a person or an entity from participating in any KALAHI-CIDSS: KKB procurement for a given period. 6.4 Suspension. The administrative penalty imposed for infractions21

21 Infraction - means a violation of a rule, regulation, promise, obligation, or contract.

committed by a contractor during the competitive bidding stage, whereby such contractor is prohibited from further participation in the bidding process of an agency. 6.5 Consolidated Blacklisting Report. A report prepared by the GPPB containing the list of suppliers, manufacturers, distributors, contractors or consultants blacklisted by procuring entities. 6.6 Contract Implementation. A process of undertaking a project or contract in accordance with the contract documents. 6.7 Termination of Contract. Extinction of contract by reason of resolution or rescission under Articles 1191, 1380, 1381 of the Civil Code, Section 68 of the Revised IRR of R.A. 9184 and provision of the Community-Based Procurement Manual and other applicable laws arising from the default of the contractor. 6.8 Delist. Removal of a person/entity from the Consolidated Blacklisting Report. 6.9 Blacklisted Person/Entity. A person/entity who was disqualified by an agency and/or is included in the GPPB Consolidated Blacklisting Report. 7. SANCTIONS AND GROUNDS FOR BLACKLISTING 7.1 Competitive Bidding Stage During the competitive bidding stage, the BSPMC shall impose on bidders or prospective bidders the penalty of suspension for one (1) year for the first offense, suspension for two (2) years for the second offense from participating in KALAHI-CIDSS bidding process, without prejudice to the imposition of additional administrative sanctions as the internal rules of the BSPMC may provide and/or further criminal prosecution, as provided by applicable laws, for the following violations:


1. Submission of eligibility requirements containing false information or falsified documents.

2. Submission of Bids that contain false information or falsified documents, or the concealment of such information in the Bids in order to influence the outcome of eligibility screening or any other stage of the public bidding.

3. Unauthorized use of one’s name, or using the name of the name of another for purpose of public bidding.

4. Withdrawal of a bid, or refusal to accept an award, or enter into contract with the BSPMC without justifiable cause, after he had been adjudged as having submitted the Lowest Calculated Responsive Bid.

5. Refusal or failure to post the required performance security within the prescribed time.

6. Refusal to clarify or validate in writing its Bid during post qualification within a period of seven (7) calendar days from receipt of the request for clarification.

7. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.

8. All other acts that tend to defeat the purpose of the competitive bidding, such as but not limited to: an eligible contractor not buying bid documents or not complying with the requirements during bid evaluation, and contractors habitually withdrawing from bidding.

In addition to the penalty of suspension, the bid security posted by the concerned bidder or prospective bidder shall also be forfeited.

7.2 Contract Implementation Stage Pursuant to the provisions of the Guidelines on Contract Termination, and without prejudice to the imposition of additional administrative sanctions as the internal rules of the BSPMC may provide and/or further criminal prosecution as provided by applicable laws, the BSPMC shall impose on contractors after the termination of the contract the penalty of suspension for one (1) year for the first offense, suspension for two (2) years for the second offense from participating in the public bidding process, for violations committed during the contract implementation stage, which include but not limited to the following:

a) Failure of the contractor, due solely to his fault or negligence, to mobilize and start work or performance within the specified period in the Notice to Proceed (NTP);

b) Failure by the contractor to fully and faithfully comply with its contractual obligations without valid cause, or failure by the contractor to comply with any written lawful instruction of the procuring entity or its representative(s) pursuant to the implementation of the contract. For the procurement of infrastructure projects, lawful instructions include but are not limited to the following:

i. Employment of competent technical personnel, competent engineers and/or work supervisors; ii. Provision of warning signs and barricades in accordance with approved plans and specifications and contract provisions;


iii. Stockpiling in proper places of all materials and removal from the project site of waste and excess materials, including broken pavement and excavated debris in accordance with approved plans and specifications and contract provisions; iv. Deployment of committed equipment, facilities, support staff and manpower; and v. Renewal of the effectivity dates of the performance security after its expiration during the course of contract implementation.

c) For the procurement of goods, unsatisfactory progress in the delivery of the goods by the manufacturer, supplier or distributor arising from his fault or negligence and/or unsatisfactory or inferior quality of goods, as may be provided in the contract;

f) For the procurement of infrastructure projects, poor performance by the contractor or unsatisfactory quality and/or progress of work arising from his fault or negligence as reflected in the Constructor's Performance Evaluation System (“CPES”) rating sheet provide by the GPPB. In the absence of the CPES rating sheet, the existing performance monitoring system of the KALAHI-CIDSS shall be applied. Any of the following acts by the constructor shall be construed as poor performance:

i. Negative slippage of 15% and above within the critical path of the project due entirely to the fault or negligence of the contractor; and ii. Quality of materials and workmanship not complying with the approved specifications arising from the contractor's fault or negligence.

g) Willful or deliberate abandonment or non-performance of the project or contract by the contractor resulting to substantial breach thereof without lawful and/or just cause.

In addition to the penalty of suspension, the performance security posted by the contractor shall also be forfeited. 8. PROCEDURE FOR SUSPENSION AND BLACKLISTING DURING THE COMPETITIVE BIDDING STAGE 8.1 Initiation of Action Any bidder/prospective bidder or duly authorized observer may initiate the suspension and blacklisting proceedings by filing a written complaint with the Bids and Awards Committee (BAC). The BAC may also by itself commence the proceedings upon prima facie22

22 Prima Facie - is a Latin word meaning “at first sight,” a fact presumed to be true until disproved.

(self-sufficient) determination that the contractor as a bidder or prospective bidder has committed any of the grounds for blacklisting during the competitive bidding stage. At the option of the BSPMC, a reasonable fee may be required for initiating the suspension and blacklisting proceedings. 8.2 Notification Upon verification of the existence of grounds for blacklisting, the BAC shall immediately notify the contractor concerned in writing, advising him that:

a) a complaint for suspension and blacklisting has been filed against him, or he has been considered by the BAC for suspension and blacklisting, stating the grounds for such;


b) he has the opportunity to show cause why he should not be suspended and blacklisted;

c) a hearing shall be conducted before the BAC, upon his request, where he may present documentary evidence, verbal testimony and cross-examine the witnesses presented against him; and

d) the consequences of being suspended and blacklisted.

Within seven (7) calendar days from receipt of notification, the contractor shall submit its written answer with documentary evidence to the BAC with a manifestation for request of hearing to determine questions of fact, if he so desires. No time extension shall be allowed. Should the contractor fail to answer within the same period, the BAC shall issue a resolution recommending to the BSPMC Chair to be assisted by Area Coordinating Team or the Municipal Inter-Agency Committee to be concurred by the RPMO thru the Regional Director or Regional Project Manager the immediate suspension of the contractor from participating in any bidding process in any KALAHI-CIDSS funded project and the forfeiture of his bid security. 8.3 Hearings If a hearing is requested, the BAC shall immediately set the date and time for hearing. The hearing shall be non-litigious and shall be terminated within five (5) calendar days. The BAC may also invite a representative from a duly recognized private group, NGOs, NGAs, religious group or discipline relevant to the procurement at hand as an observer for each hearing. If no request is made, the BAC shall make a determination of the case based on the complaint, answer, documentary evidence submitted and facts verified. If the BAC is convinced that the contractor is at fault, it shall issue a resolution recommending to the BSPMC Chairperson (assisted by Area Coordinating Team or the Municipal Inter-Agency Committee) to be concurred by the RPMO thru the Regional Director or Regional Project Manager the suspension of the contractor from participating in any bidding process of the agency and the forfeiture of his bid security. 8.4 Decision The BSPMC Chairperson shall, within five (5) calendar days from receipt of the resolution and the records of the BAC proceedings, determine whether reasonable cause exists for the suspension of the contractor and the forfeiture of the latter’s bid security. If the BSPMC Chairperson determines that such reasonable cause exists, he shall issue a decision suspending the contractor from participating in any bidding process of the KALAHI-CIDSS project, and further declaring that his bid security is forfeited. Otherwise, he shall dismiss the case. The decision shall clearly and distinctly state the facts, evidence and the law on which it is based, as well as the date of effectivity of the penalty, if any. The BSPMC Chairperson may delegate to the BAC the authority to impose the corresponding sanction(s) provided for in these guidelines. In case a contractor commits more than one offense or a combination of offenses for the same project/contract in a particular KALAHI-CIDSS area, each violation shall be meted the corresponding penalty. 8.5 Notice of Decision The BSPMC Chairperson shall furnish the suspended Contractor, Manufacturer, Supplier and Distributor a copy of the decision immediately from its promulgation.


8.6 Effect of Decision A Contractor, Manufacturer, Supplier and Distributor is suspended upon receipt of the notice of decision prohibiting him from participating in the bidding process in any KALAHI-CIDSS project. The suspension shall remain in effect during the period of motion for reconsideration and protest and shall terminate only upon a reversal of the decision by the BSPMC or appellate authority. If no motion for reconsideration or protest is filed, the decision shall become final and executor after the lapse of seven (7) calendar days from the receipt of the notice of decision. Thereafter, the BSPMC shall issue a Blacklisting Order with concurrence of the RPMO disqualifying the erring contractor from participating in the bidding of all KALAHI-CIDSS projects. 8.7 Motion for Reconsideration A Motion for Reconsideration may be filed by the suspended person/entity within seven (7) calendar days from receipt of the notice of decision and shall be for either or both of the following causes, provided that only one (1) Motion for Reconsideration shall be filed with the blacklisting BSPMC or Regional Project Management Office (RPMO):

a) The decision is not in conformity with the evidence and/or facts presented; and b) Newly discovered evidence or facts which could not be discovered and produced at the investigation and which when presented would probably alter the result of the investigation.

The BSPMC shall resolve with finality the motion for reconsideration within five (5) calendar days from the filing thereof and furnish suspended contractor a copy of the resolution immediately from its promulgation. 8.8 Protest from Decision A protest may be filed by the suspended contractor/manufacturer/supplier/distributor with the appellate authority within seven (7) calendar days from receipt of the resolution on the Motion for Reconsideration. 8.9 Finality of Decision The decision of the BSPMC shall become final and executory after the lapse of seven (7) calendar days from the receipt of the notice of decision or resolution on the motion for reconsideration. If a protest is filed, the affirmed, modified or reversed decision shall become final and executory upon receipt thereof by the project and person/entity concerned. Upon finality of the decision suspending the contractor, the BSPMC shall issue a Blacklisting Order with concurrence of the RPMO disqualifying the erring contractor from participating in the bidding of all government projects. 9. PROCEDURE FOR BLACKLISTING DURING THE CONTRACT IMPLEMENTATION STAGE Upon termination of contract due to default of the contractor / manufacturer / supplier / distributor, the BSPMC or the RPMO shall immediately issue a Blacklisting Order disqualifying the erring contractor from participating in the bidding in all KALAHI-CIDSS Projects. The performance security of said contractor shall also be forfeited. 10. STATUS OF BLACKLISTED PERSON/ENTITY Before the issuance of a Blacklisting Order, the erring contractor / manufacturer / supplier / distributor may participate in the procurement of any government project except in KALAHI-CIDSS unless otherwise blacklisted by any Government institution.


But if Blacklisting Order is issued prior to the date of the notice of award (“NOA”), the blacklisted person/entity shall not be qualified for award and such project/contract shall be awarded to another bidder pursuant to Community-Based Procurement Guidelines. If the Blacklisting Order is issued after award of a government project/contract to the blacklisted person/entity, the awarded project/contract shall not be prejudiced by the said order. Provided, however, that the said offense(s) committed by the blacklisted person/entity is/are not connected with the awarded project/contract. 11. DELISTING 11.1 A blacklisted person/entity shall be automatically delisted after the period for the penalty shall have elapsed, unless the blacklisting agency requests the GPPB to maintain the blacklisted person/entity in the GPPB Consolidated Blacklisting Report due to justifiable reasons. In the latter case, the blacklisted person/entity shall be delisted only upon the blacklisting agency’s issuance of a Delisting Order. 12. METHODOLOGY FOR NOTIFICATION TO THE GPPB 12.1. Unless otherwise provided in these guidelines, the blacklisting agency concerned shall submit to the GPPB, within seven (7) calendar days after the issuance of the blacklisting order/delisting orders made by the agency, the following documents:

a) Blacklisting Order duly signed by the BSPMC Chairperson or RPMO/appellate authority containing, among others, BSPMC-BAC Resolution number, name and address of the blacklisted person/entity, license number, if applicable, Authorized Managing Officer (“AMO”), name of project/contract and location/amount, specific ground(s)/offense(s) committed, sanction imposed and its date of start and completion, date of issuance of the order to blacklist, and other conditions which can extend duration of sanctions in Sections 7 (Sanctions and Grounds for Termination) hereof.

b) Delisting Order duly signed by the blacklisting BSPMC/RPMO containing, among others, BSPMC-BAC Resolution or RPMO Order, name and address of the blacklisted person/entity, name of project/contract and location, specific sanction being lifted and the number of previously issued blacklisting Department/Office Orders or Board Resolutions, effectivity date of delisting, and date of delisting approval.

12.2 In the case of procurement of infrastructure projects, should a blacklisting BSPMC/RPMO decide to refer the case of its blacklisted person/entity to the Philippine Contractors Accreditation Board (PCAB) for license suspension/revocation, it shall submit to PCAB a copy of the decision accompanied with supporting documents. 13. AMENDMENTS 13.1 In the implementation of these guidelines, the project may introduce modifications thereto through the amendment of its specific provisions as the need arises. 13.2 Any amendment to these guidelines shall be applicable to all KALAHI-CIDSS funded community projects posted/advertised to be procured after the effectivity of the said amendment


PERIOD OF ACTION FOR BLACKLISTING CONTRACTORS, MANUFACTURERS, SUPPLIERS and DISTRIBUTORS DURING:

I. THE COMPETITIVE/BIDDING STAGE

ACTIVITIES Responsible Person PERIOD OF ACTION (Calendar Days) MINIMUM MAXIMUM

Initiation of Action

The BAC commence the proceedings to determine the grounds for blacklisting 1 CD 1 CD

Notification The BAC to notify the contractor, manufacturer, supplier or distributor

Within 3 CD to deliver the notice Within 7 CD

Hearings (Non-

Litigious)

The BAC (can invite duly recognized groups, NGOs NGAs, religious group)

If the BAC is convinced that the contractor/supplier/distributor is at fault, it shall issue resolution recommending to the BSPMC Chairperson the suspension. The ACT/MIAC shall assist the BAC and BSPMC.

Within 2 CD Within 5 CD

Decision

The BSPMC to decide of the suspension and declare forfeiture of the bid security/performance security. Otherwise, he shall dismiss the case.

The BSPMC Chairperson may delegate to the BAC the authority to impose corresponding sanctions.


Notice of Decision

The BSPMC Chairperson shall furnish the suspended contractor / manufacturer / supplier / distributor

Within 1 CD

Within 1 CD

Effect of Decision

The contractor / manufacturer / supplier / distributor is suspended upon receipt of the notice of decision prohibiting him in participating in the bidding process in any KC project


SUB-TOTAL NUMBER OF DAYS 10 Cal. Days 20 Cal. Days

Motion for Reconsideration

The contractor / manufacturer / supplier / distributor may file motion for reconsideration to the BSPMC

The BSPMC shall resolve with finality the motion for reconsideration from date of filing

Within 7 CD from filing + 5 Calendar days to resolve from the filing date

Within 7 CD from filing + 5 Calendar days to resolve from the filing date

Protest from Decision

The contractor / manufacturer / supplier / distributor may protest with the appellate authority (BSPMC)

Within 7 CD from receipt of the resolution on the motion for reconsideration

Within 7 CD from receipt of the resolution on the motion for reconsideration

Finality of Decision and submission to the GPPB/CIAP

The BSPMC’s decision shall be final and executory.

1 CD after the lapse of 7 CD from receipt of Notice of Decision

1 CD after the lapse of 7 CD from receipt of Notice of Decision

TOTAL NUMBER OF DAYS 30 Cal. Days 40 Cal. Days II. DURING CONTRACT IMPLEMENTATION STAGE Upon termination of contract due to default of the contractor, the BSPMC or the RPMO shall immediately issue a Blacklisting/Delisting Order disqualifying the erring contractor / manufacturer /


supplier / distributor from participating in the bidding in all KALAHI-CIDSS Projects. The performance security of said contractor shall also be forfeited. GUIDELINES IN UNDERTAKING VARIATION / CHANGE ORDER OF COMMUNITY PROJECTS

Fiduciary reviews and audit conducted by the Commission on Audit (COA) revealed that variations orders/change orders were made during the course of implementation of community projects. It was found out that there were changes in quantities in the actual implementation due to inadequate planning/validation and some with considerable reasons. Variation/Change Order is allowed under KALAHI-CIDSS project only in extreme cases and when deemed necessary to complete the community project. For a better comprehension on Variation/Change Order, hereunder are the implementation guidelines: I. VARIATION ORDERS – CHANGE ORDER / EXTRA WORK ORDER / SUPPLEMENTAL AGREEMENT

1. Variation Orders may be issued by the BSPMC to cover any increase/decrease in quantities, including the introduction of new work items that are not included in the original contract or reclassification of work items that are either due to change of plans, design or alignment to suit actual field conditions resulting in disparity between the preconstruction plans used for purposes of bidding and the "as staked plans" or construction drawings prepared after a joint survey by the contractor and the BSPMC after award of the contract, provided that the cumulative amount of the Variation Order does not exceed ten percent (10%) of the original project cost. The addition/deletion of works should be within the general scope of the project as bid and awarded. A Variation Order may either be in the form of a change order or extra work order.

2. A Change Order may be issued by the BSPMC Chairperson to cover any

increase/decrease in quantities of original work items in the contract.

3. An Extra Work Order may be issued by the BSPMC Chairperson to cover the introduction of new work necessary for the completion, improvement or protection of the project which were not included as items of work in the original contract, such as, where there are subsurface or latent physical conditions at the site differing materially from those indicated in the contract, or where there are duly unknown physical conditions at the site of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent in the work or character provided for in the contract.

4. Any cumulative Variation Order beyond ten percent (10%) shall be subject of another contract to be bid out if the works are separable from the original contract. In exceptional cases where it is urgently necessary to complete the original scope of work, the BSPMC may authorize the variation order beyond ten percent (10%) but not more than twenty percent (20%) subject to the guidelines to be determined by the NPMO: Provided, however, That appropriate sanctions shall be imposed on the designer, service provider, consultant or official responsible for the original detailed engineering design which failed to consider the Variation Order beyond ten percent (10%).

5. In claiming for any Variation Order, the contractor shall, within seven (7)

calendar days after such work has been commenced or after the circumstances leading to such condition(s) leading to the extra cost, and within fifteen days (15) calendar days deliver a written communication giving full and detailed particulars of any extra cost in order that it may be


investigated at that time. Failure to provide either of such notices in the time stipulated shall constitute a waiver by the contractor for any claim. The preparation and submission of Variation Orders are as follows:

a. If the Project Engineer, DAC or Municipal Engineer (in cases of community projects without KALAHI-CIDSS staff) and RIE, believes that a Change Order or Extra Work Order should be issued, he shall prepare the proposed Order accompanied with the notices submitted by the contractor, the plans therefore, his computations as to the quantities of the additional works involved per item indicating the specific stations where such works are needed, the date of his inspections and investigations thereon, and the log book thereof, and a detailed estimate of the unit cost of such items of work, together with his justifications for the need of such Change Order or Extra Work Order, and shall submit the same to the Regional Project Manager.

b. The Regional Project Manager, upon receipt of the proposed Change Order or Extra Work Order shall immediately instruct the technical staff of the Region to conduct an on-the-spot investigation to verify the need for the work to be prosecuted. A report of such verification shall be submitted directly to the Regional Project Manager.

c. The Regional Project Manager, after being satisfied that such Change Order or Extra Work Order is justified and necessary, shall review the estimated quantities and prices and forward the proposal with the supporting documentation to the BSPMC for consideration.

d. If, after review of the plans, quantities and estimated unit cost of the items of work involved, the DAC and RIE to review and evaluate Change Orders or Extra Work Orders recommends approval thereof, the BSPMC, upon endorsement of the RPMO that the Change Order or Extra Work Order to be in order, shall approve the same.

e. The timeframe for the processing of Variation Orders from the preparation up to the approval by the procuring entity concerned shall not exceed twenty one (21) calendar days.

II. ADDITIONAL / EXTRA WORK COSTING

1. For Variation Orders, the contractor shall be paid for additional work items whose unit prices shall be derived based on the following:

a. For additional/extra works duly covered by Change Orders involving work items which are exactly the same or similar to those in the original contract, the applicable unit prices of work items original contract shall be used.

b. For additional/extra works duly covered by Extra Work Orders involving new work items that are not in the original contract, the unit prices of the new work items shall be based on the direct unit costs used in the original contract (e.g. unit cost of cement, rebars, form lumber, labor rate, equipment rental, etc.). All new components of the new work item shall be fixed prices, provided the same is acceptable to both the BSPMC and the contractor, and provided further that the direct unit costs of new components shall be based on the contractor's estimate as validated by the procuring entity concerned via documented canvass in accordance with existing rules and regulations. The direct cost of the new work item shall then be combined with the mark-up factor (i.e. taxes and profit) used by the contractor in his bid to determine the unit price of the new work item.


2. Request for payment by the contractor for any extra work shall be accompanied by a statement, with the approved supporting forms, giving a detailed accounting and record of amount for which he claims payment. Said request for payment shall be included with the contractor's statement for progress payment.

III. CONDITIONS UNDER WHICH CONTRACTOR IS TO START WORK UNDER VARIATION ORDERS AND RECEIVE PAYMENTS

1. Under no circumstances shall a contractor proceed to commence work under any Change Order or Extra Work Order unless it has been checked by the DAC and the RIE and approved by the BSPMC Chairperson. Exceptions to the preceding rule are the following:

a. The Regional Project Manager may, subject to the available community project funds, authorize the immediate start of work under any Change or Extra Work Order under any or all of the following conditions:

1. In the event of an emergency where the prosecution of the work is urgent to avoid detriment to public service, or damage to life and/or property; and/or

2. When time is of the essence;

Provided, however, That such approval is valid on work done up to the point where the cumulative increase in value of work on the project which has not yet been duly fully approved does not exceed five percent (5%) of the adjusted original contract price whichever is less;

Provided, further, That immediately after the start of work, the corresponding Change Order or Extra Work Order shall be prepared and submitted for approval in accordance with the above rules herein set. Payments for works satisfactorily accomplished on any Change Order or Extra Work Order may be made only after approval of the BSPMC Chairperson.

b. For a Change Order or Extra Work Order involving a cumulative amount exceeding five percent (5%) of the original contract, no work thereon may be commenced unless said Change Order or Extra Work Order has been approved by the National Project Manger.

IV. ADVANCE PAYMENT 1. The procuring entity shall, upon a written request of the contractor which shall

be submitted as a contract document, make an advance payment to the contractor in an amount equal to fifteen percent (15%) of the total contract price, to be made in lump sum or, at the most two, installments according to a schedule specified in the Instructions to Bidders and other relevant Tender Documents.

2. The advance payment shall be made only upon the submission to and acceptance by the procuring entity of an irrevocable standby letter of credit of equivalent value from a commercial bank, or a bank guarantee callable upon demand, issued by reputable bank and confirmed by the BSPMC.

3. The advance payment shall be repaid by the contractor by deducting fifteen percent (15%) from his periodic progress payments.

V. PROGRESS PAYMENT


1. Once a month, the contractor may submit a request for payment for work accomplished. Such request for payment shall be verified and certified by the PIT, DAC and RIE concerned. Except as otherwise stipulated in the Instruction to Bidders, materials and equipment delivered on the site but not completely put in place shall not be included for payment.

2. The procuring entity shall have the right to deduct from the contractor's progress billing such amount as may be necessary to cover third party liabilities, as well as uncorrected discovered defects in the project.

VI. RETENTION MONEY FOR VARIATION/CHANGE ORDER

1. Progress payments are subject to retention of ten percent (10%) referred to as the "retention money." Such retention shall be based on the total amount due to the contractor prior to any deduction and shall be retained from every progress payment until fifty percent (50%) of the value of works, as determined by the BSPMC, are completed. If, after fifty percent (50%) completion, the work is satisfactorily done and on schedule, no additional retention shall be made; otherwise, the ten percent (10%) retention shall be imposed.

2. The total "retention money" shall be due for release upon final acceptance of the works. The contractor may, however, request the substitution of the retention money for each progress billing with irrevocable standby letters of credit of from a commercial bank, or bank guarantees callable on demand, of amounts equivalent to the retention money substituted for and acceptable to the BSPMC, provided that the project is on schedule and is satisfactorily undertaken. Otherwise, the ten percent (10%) retention shall be made. Said irrevocable standby letters of credit or bank guarantees, to be posted in favor of the BSPMC shall be valid for a duration to be determined by the concerned BSPMC and will answer for the purpose for which the ten percent (10%) retention is intended, i.e., to cover uncorrected discovered defects and third party liabilities.

VII. CONTRACT COMPLETION Once the project reaches an accomplishment of ninety five (95%) of the total contract amount, the inspectorate team to make preliminary inspection and submit a punch-list to the contractor in preparation for the final turnover of the project. Said punch-list will contain, among others, the remaining works, work deficiencies for necessary corrections, and the specific duration/time to fully complete the project considering the approved remaining contract time. This, however, shall not preclude the procuring entity's claim for liquidated damages.


GUIDELINES ON NEGOTIATED PROCUREMENT During the procurement stage, cases of failure of bidding may happen. Likewise, in the implementation of the contract, cases of contract termination may also happen. Hence, as mentioned in the additional guidelines in this manual, negotiated contracting may be undertaken. Conditions and Requirements for the use of the Negotiated Procurement The selection of contractor through Negotiated Procurement is justified only in any of the following cases:

i. If there is twice failure of bidding; ii. If the contract was terminated or rescinded; and, iii. If there is variation order e.g. additional work iv. If time is of the essence to avert an imminent danger to life or property or

to restore destroyed community project arising from natural or man-made calamity or emergency as declared by appropriate authorities23

Failure of bidding occurs in any of the following instances:

.

• No bids are received; •All prospective bidders are declared ineligible; •All bids fail to comply with all the bid requirements or fail-post qualification; •The bidder with the lowest calculated and responsive bid refuses, without justifiable cause, to accept the award of contract.

Contract termination may happen in any of the following instances:

• There is breach of contract or termination for default (either BSPMC or the contractor/supplier).

• If the contract is abandoned by contractor. • The BSPMC terminated the contract for convenience, in whole or in part, at any

time for its convenience. The BSPMC Chairperson may terminate a contract for the convenience of the BSPMC if it determined the existence of conditions that make Project Implementation economically, financially or technically impractical and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and national government policies.

• Due to unlawful acts to include, but are not limited to, the following: a) Corrupt, fraudulent, collusive and coercive practices; b) Drawing up or using forged documents; and, c) Any other act analogous to the foregoing.

Procedures in negotiated contracting: 1. In cases of failure of bidding

1.1. The BSPMC thru the BAC shall directly invite or get quotations/bid proposals from at least three or more licensed contractors within the municipality or adjacent municipalities that has satisfactorily completed a contract of the same nature. This procedure will exempt the requirement

23 Appropriate authorities to mean the Sanggunian in the Municipality or Province declaring state of calamity inn the area where the sub-project is located.


for advertising or publication in the newspaper (in the case if bidding). It is important to keep minutes of the two failed biddings as reference in future audits. It is advised that the PT and BAC shall not limit invitation to only 3 bidders to ensure wide competition. In case of failure or no bid proposal submitted on the date specified, the BAC can negotiate with an interested or single bidder. It is reiterated that minutes of the failed bidding be kept at the BSPMC office. In the event that there is till failure after undertaking the above, the BSPMC thru the TWG shall review the program of works. If it requires re-programming, the process of negotiated procurement will apply.

1.2. In comparison with the Revised IRR of RA 9184, it allows disclosure of the approved budget for the contract (ABC). In KALAHI-CIDSS, it is clarified that the estimated budget for the contract should not be disclosed. Hence, the invitation to quote/bid should not include the estimated budget for the contract so the bidders will competitively prepare their own bid proposal.

1.3. The BSPMC shall allow at least 7 calendar days for bidders to prepare a detailed bid proposal and thereafter, the timelines specified in each procurement activity from opening to award of contract shall be strictly followed to facilitate immediate implementation.

1.4. The invitation to quote/bid issued must contain specific requirements such as the date, venue and complete documents to be submitted.

2. In cases of abandoned or terminated contract (also known as Take-Over of

Contract)

2.1 The contract may be negotiated starting from the second lowest rated bidder under consideration at the bidder’s original price.

2.2 If negotiation fails, then negotiation shall be done with the third lowest calculated rated bidder at his original price. If the negotiation fails again, a short list of at least three (3) eligible contractors shall be invited to submit their bids, and negotiation shall be made starting with the lowest calculated rated bidder.

2.3 The BSPMC shall allow at least 7 calendar days for bidders to prepare a detailed bid proposal and thereafter, the timelines specified in each procurement activity from opening to award of contract shall be strictly followed to facilitate immediate implementation.

3. If there is variation order In the preceding guidelines, a procedure for variation order is provided. In the event of a change order e.g. Extra Work order, the guidelines on undertaking change order shall be followed. Limits and conditions shall also be referred to said guidelines. Negotiation with the same contractor may be allowed in the following instances:

• The extra or additional work is adjacent or contiguous to the ongoing contract/community project.

• The subject contracted item to be negotiated has similar or related scopes of work.

• If the item or works is within the contracting capacity of the contractor. • The contractor uses the same unit price or lower unit price as in the original

contract less mobilization cost24

• The amount involved does not exceed the amount of the ongoing contract. .

• If the contractor has no negative slippage/delay.

24 Mobilization cost for extra work orders should not be considered since it is assumed to be incorporated in the original contract.


• Any cumulative Variation Order beyond ten percent (10%) shall be subject of another contract to be bid out if the works are separable from the original contract. In exceptional cases where it is urgently necessary to complete the original scope of work, the BSPMC may authorize the variation order beyond ten percent (10%) but not more than twenty percent (20%) subject to the guidelines to be determined by the NPMO: Provided, however, That appropriate sanctions shall be imposed on the designer, service provider, consultant or official responsible for the original detailed engineering design which failed to consider the Variation Order beyond ten percent (10%).


GUIDELINES IN EVALUATING PERFORMANCE of SUPPLIERS and CONTRACTORS Rationale The KALAHI-CIDSS is a fast-paced/time-bounded project. Community community projects are funded as these are immediate needs of the communities. Therefore, in the provision of goods and services, service providers such as suppliers and contractors should comply strictly with the provisions of the contract to immediately expedite the completion of the community projects. In order to facilitate management of suppliers and contractors doing business with the communities, the project shall establish procedures for evaluating, documenting, and reporting the supplier/contractor’s performance under a contract for purchase of goods, performance of services, consulting, construction or improvement of facilities. These procedures shall include a process for performance appraisal, communication of feedback to vendors, forms and documentation requirements. Why Evaluate the Supplier/Contractor?

1. To improve communication and relationship with suppliers/contractors; 2. To improve supplier performance by way of awareness and feedback on key

performance criteria and service improvement areas; 3. To have more reliable material quality and availability and/or better service; 4. To document supplier performance to be used as basis for future transactions

and discussions with the supplier Purposes

1. To provide the BSPMC with objective information on which judgments relating to source selection can be based; and,

2. To enable the BSPMC to provide the supplier with an indication of his performance rating and where improvements, if any, are required.

Criteria for Evaluation

1. Quality 2. Delivery 3. Price 4. Technical Support 5. Management Attitude

Who will Evaluate? The evaluators will come from the heads of the Procurement Team, Monitoring and Inspection Team and from the Project Implementation Team. The evaluation report will be approved by the BSPMC Chairperson to be collected by the CF and submitted to the DAC for consolidation. The Rating The rating to be used will be a combination of weighted-point system and categorical method. Depending on the established range based on the points assigned in each criterion, a corresponding category will be assigned based on the total number of points.


Assigned Points:

Criteria Points Quality 40 Delivery 20 Price 20 Compliance to Environmental Laws 10 Technical Support 5 Management Attitude 5

Total 100 Categorical Rating: Very Good - 90-100 Satisfactory- 50-89 Unsatisfactory - 0-49 Blacklisting The purpose of blacklisting is to protect the project from risks associated with awarding contracts to persons or firms having exhibited an inability or unwillingness to fulfill contractual obligations, and to protect the project’s interests and the integrity of the procurement process by preventing individuals or firms who have displayed improper conduct from participating on project requirements for specific periods of time. Sanction/s

1. Any supplier/contractor that has incurred an UNSATISFACTORY rating in a particular barangay shall not be allowed to participate in any procurement in that barangay;

2. Any supplier/contractor’s that has incurred two (2) UNSATISFACTORY ratings

in a particular Municipality shall not be allowed to participate in any KALAHI-CIDSS procurement in that Municipality; and,

3. Any supplier/contractor’s that has incurred three (3) UNSATISFACTORY ratings

in a particular region shall not be allowed to participate in any DSWD - KALAHI-CIDSS procurement in any region.

Discussion The evaluation procedures must be discussed with the suppliers and or contractors during contractors’ conference/meeting or pre-bidding conferences. The Form and Guides in Filling-up The evaluation form and guides is found on the succeeding page.


SUPPLIER / CONTRACTOR EVALUATION FORM Date : ___________________ Barangay : ___________________ Municipality : _________________ Province : ___________________ Region : _________________ Contract for : ____ GOODS ______WORKS (Please check what type of contract) Method of Procurement Used: _______ Shopping ______(Bidding) Name of Supplier/ Contactor : _________________________________________________ Address of Supplier/Contactor: _________________________________________________

Assigned Points:

Criteria Points Rating Quality 40 Delivery 20 Price 20 Compliance to Environmental Laws 10 Technical Support 5 Management Attitude 5

Total 100 Categorical Rating: Very Good - 90-100 Satisfactory - 50-89 Unsatisfactory - 0-49

Rated by: __________________________________________ Head, Procurement Team (Name & Signature) __________________________________________ Head, Project Implementation Team (Name & Signature) ___________________________________________ Head, Monitoring & Inspection Team (Name & Signature) Approved by: ___________________________________________ BSPMC Chairperson


Guides in Rating:

1. Quality = 40 points A. FOR GOODS:

BASIS Corresponding Points

• If the goods (materials) delivered are in accordance with specifications (size or dimension, weight, with Product Standards Certification Mark if required, etc…) the maximum of 40 points can be given.

40

• If goods were delivered on time but there were rejected items during the delivery

35

• If there are significant rejection (say 80% or 8 out of 10 items)

25

• If half of the total items were rejected and replaced (say 5 out of 10 items)

20

• If no delivery 0

B. FOR WORKS : BASIS Corresponding

Points • If the items under contract were constructed in accordance

with plans and specifications and on time

40 Any of the following: • If all works are completed but there are unacceptable

outputs based on the community and engineers assessment;

• If there replacements/repairs done during construction as a result of inspection;

• If completion is only 90% based on timeline

35

• If completion is only 71-89% based on contract timeline 30 • If completion is only 50-70% based on contract timeline 20 • If accomplishment is ranging from 1-49%; or • If no accomplishment; or, • If test result shows that the quality did not pass

0

2. Delivery

A. GOODS


• If the goods are delivered within schedule 20 • If the goods were delivered but 1 – 3 days delayed 15 • If the goods were delivered but 3-5 days delayed 10 • If the goods were delivered but more than 6 days delayed 5 • If the goods were not delivered 0

B. WORKS


• If the works were undertaken within schedule (to include 20


extension, if any, with approval of BSPMC) • If the works completed but 1-2 weeks delayed 15 • If the works completed but 3-4 weeks delayed 10 • If the works completed but more than 1 month delayed 5 • If the goods were not delivered 0

3. Price – Applies to Goods and Works

BASIS Corresponding Points • If the amount of quotation/bid is within 80-85% of the

estimated budget (with savings generated) 20

• If the amount of quotation/bid is within 86-95% of the estimated budget (less savings generated)

15

• If the amount of quotation/bid is above 96% of the estimated budget (none or less savings generated)

10

4. Compliance to Environmental Laws

BASIS Corresponding Points • If the supplier/contractor delivered the materials on the

designated drop points and no disturbance to or adverse effect to the environment

10

• If the supplier/contractor delivered the materials on the designated drop points but has disturbance to the environment example: canals were clogged, road were inaccessible due to the improper dumping, the delivery truck was very noisy, there were vegetations damaged, etc…

5

• If the environmental compliance were not implemented 0 5. Technical Support


• Did the owner show concern with the BSPMC on the immediate delivery?

• Did the workers of the supplier or contractor assisted the volunteers in terms of handling, proper installation, or provided instructions in the usage of materials

5

• If during the delivery there were no efforts shown by the owner and their workers

1

6. Management Attitude


• Is the owner or their personnel provided quality service by to the volunteers? Are they humble enough? If yes, give the maximum score.

• Do they give importance to the volunteers when they are transacting business with the firm/company/office?

5

• If they show less concern to the volunteers 1


GUIDELINES ON UNBALANCED QUOTATION/BIDS Some community projects require services of contractors if the community does not have the capacity to undertake the works. However, it was observed that some quotations/bid proposals submitted by contractors are unbalanced and it is disadvantageous to the BSPMC. Awarding a contract to the lowest bidder in a case where the bid is clearly unbalanced has the potential in certain circumstances to expose the BSPMC to an unnecessary and unacceptable financial risk. It is the responsibility of BAC to evaluate all bids appropriately to ensure that the community’s interests are protected.

Purpose of the Guidelines In KC-1, there is no policy which precludes the submission of an unbalanced bid by a bidder, nor is there any provision explicitly disqualifying any bid which may be unbalanced. Thus, this guideline will provide provisions for disqualifying quotations or bid proposals that are proven unbalanced. Definition: Unbalanced Quotation/Bid- is the shifting of a part of the cost of one work item to another item of work. It occurs in circumstances where a bidder on a contract places an unreasonably high price on certain items in a unit price contract and an unreasonably low price on other items within the same bid. Two Types of Unbalanced Quotation/Bid 1. A mathematically unbalanced bid - is one that contains lump sum or unit bid items that do not appear to reflect reasonable actual costs plus a reasonable proportionate share of the bidder's anticipated profit, overhead costs, and other indirect costs, which he/she anticipates for the performance of the items in question. A common example is Front End Loading

, wherein activities scheduled to be performed early in the project (Example: Clearing and Grubbing for a road community project) have values quoted with an excessive proportion of planned overhead costs and anticipated profit. This case shows and “advance payment” characteristic that is objectionable. If excess funds are paid at an early stage of the contract, the potential exists for an inadequate amount to properly complete the project and protect the owner’s (BSPMC) interests.

2. Materially unbalanced Bid - is one "based on prices significantly less than cost for some work and prices which are significantly overstated in relation to cost for other work, and . . . there is a reasonable doubt that the bid will result in the lowest overall cost."

There are reasons why a Bidder may want to unbalance a Bid. The following are some reasons: i. To get more money at the beginning of the Project by overpricing the Work done

early in the Project. This is called “front loadingii. To maximize profits. This is done by overpricing bid items the Bidder believes will be

used in greater quantities than estimated and underpricing items that will be used in significantly lesser quantities

” the Contract.

The BAC and TWG shall use the following guidelines when evaluating Bids to identify materially unbalanced Bids:

• After Bid Opening, evaluate all bid item prices, as submitted by the Bidders, for unreasonable deviations from the Engineer’s Estimate. The BSPMC deserves the right to review all Bids for material unbalancing regardless of the deviation from the Engineer’s Estimate.

• If bid item prices deviate more than a reasonable amount from the Engineer’s Estimate, re-check the bid item quantities.


Items that may contribute to material unbalancing are:

• Obvious errors in the Plans or estimates. • Front-end loading where the Bids indicate that the Contractor will receive

disproportionate payment for work done during early stages of the Project. • Anticipated underruns or overruns of items. • Bids which indicate that the Bid(s) are disproportionately higher than the value of the

work to be done under the Contract. Example: Name of Community Project: Improvement of Farm to Market Road

Per Approved POW and PCPP F.B. Night Construction

Item No. Description Qty Unit Unit

Price Total Amount Cost Difference

Percentage (Cost Differenc

e)

102 Roadway & Drainage

Excavation 6,762.39 Cu.

m. 70.39 476,004.63 625,000.00 -148,995.37 -31.30%

105 Sub-Grade Preparation 9,812.00 Sq.

M. 14.69 144,138.28 221,000.00 -76,861.72 -53.32%

200 Aggregate Sub-Base

Coarse 1,417.80 Cu.

m. 225.81 320,153.42 224,000.00 94,153.42 29.41%

201 Aggregate Base Coarse 1,471.00 Cu.

m. 253.36 372,692.56 242,000.00 130,692.56 35.07%

TOTAL 1,312,988.89

1,312,000.00

In the above example, assuming that profit, overhead costs and other considerations were incorporated, it is clear that the bid is unbalanced as unit bid prices are front loaded in Items 102 and 105 of the contract with minimal unrealistic costs attributed to work required for Items 200 and 201 of the contract. The risk in the above example is: What if the contractor abandoned the contract after completing Item 102 and 105? Can the remaining amount complete the remaining items of work? Accuracy of Estimated Quantities:

When items are bid unusually high or low in relationship to the engineer's estimate, the accuracy of the estimated quantities should be checked. If, after examination, the estimated quantities are determined to be a reasonably accurate representation of actual anticipated needs, then the low bid should be further evaluated for unbalancing.

On the other hand, in cases where it is concluded, after examination, that the estimated quantities are not a reasonably accurate representation of actual anticipated needs, the BAC with assistance of TWG should consider rejecting all bids, correcting the quantities, and re-advertising. However, an error in estimated quantities should not cause an automatic rejection of bids. Two factors need to be considered: (1) whether the community’s interest would be best served by making the award and, (2) whether any bidder would be treated in an unfair manner if the award were made.

Bid Analysis: An analysis of unbalanced bids should be properly undertaken by the BAC and TWG. However, the final analysis should not preclude the use of engineering judgment


especially at the RPMO who will issue NOL or in some cases endorsing procurement documents for issuance of NOL at the NPMO or MCA-Philippines.

In analyzing bids, the following should be considered:

1. Is the bid mathematically unbalanced? Are the unit bid prices in reasonable conformance with the engineer's estimate and other bids?

2. If awarded, what effect will unbalanced bid items have on the total contract amount?

3. If quantities are incorrect, will the contract cost be increased when the quantities are corrected?

4. On items where the quantities may vary, will the lower bidder remain as low bidder?

5. If the bid is unbalanced, will the unbalance have a potential detrimental effect upon the competitive process or cause contract administration problems after award?

In cases where obvious unbalanced bid items exist, the BAC's recommendation to award or reject a bid needs to be supported by written justification or stating clearly in the minutes of evaluation. The justification should include the detrimental effect or lack of detrimental effect. However, prior to concurrence in the award of any mathematically unbalanced bid which is not materially unbalanced, the RPMO or NPMO, as the case maybe, should determine the reason for the unbalancing and, when warranted, take appropriate steps to protect the project. Hence, it is important that details of the evaluation is clearly indicated in the minutes of evaluation. The action may take the form of concurrence or no objection whether or not to award the contract to the submitter of the unbalanced low bid.

A unbalanced bid analysis will be performed under two circumstances:

1. If the BSPMC becomes aware of an error in a quantity of an item shown in the bidding documents; and,

2. If an item is found to be both significant to the contract and significantly unbalanced.

The Unbalanced Bid Analysis shall consist of the following steps:

• The estimated unit price for all items identified as being significantly unbalanced will be reviewed for correctness. Corrections will be made as needed and the low bidders unit price will re-evaluated to determine if the item remains significantly unbalanced.

• Quantities for all items found to be significant to the contract will be checked

and verified. Quantities will be determined based upon the bidding documents and the construction methodologies depicted in the plan. These quantities will be used only for the purpose of performing the Unbalanced Bid Analysis.

Finally, if unbalancing is found to be caused in part by questionable specifications or procedures, the BSPMC should work with the A/MCT or RPMO to facilitate appropriate and timely revisions.

Rejection of unbalanced bids

The bids should be rejected if the community’s interest would be best served in canceling the defectively estimated proposal; and/or, if awarding the contract to the apparent low bidder using a corrected quantity estimate would be unfair to the other bidders.


Proposals will be considered irregular and may be rejected if the TWG or RPMO determines that any of the unit bid prices are significantly unbalanced to the potential detriment of the KALAHI-CIDSS project.

BAC and TWG performing bid analysis should be aware that signs of apparent unbalancing in bidding may be an indication of more serious criminal activities such as collusion and bid rigging. Studies of collusion and bid rigging show that such activities are often accompanied by suspicious bidding patterns such as bids: "front loading," "identical bidding," "complimentary bidding."

An item will be considered significantly unbalanced if the following are observed:

1. The quotation/bid is higher by 25% against the approved engineers estimate; or, if the quotation/bid is lower by 75% against the approved engineers estimate.

2. During evaluation, a comparison of the calculated gross sum totals show that the calculated gross sum for the contract low bid is found to be higher than the calculated gross sum of another bidder, the low contract bid proposal shall be determined to be materially unbalanced. If the calculated gross sum of the contract low bid proposal is found to be less than the calculated gross some of all other bidders, that bid shall be determined to be not materially unbalanced.

3. If the initial contract low bid proposal is found to be not materially unbalanced, the contract will be considered for award at the bid contract amount in accordance to the Standard Specifications. The contract will be based upon the bid amount and the quantities shown in the bidding documents.

4. If the initial low bid contract proposal is found to be materially unbalanced it will be considered irregular and will be rejected as non-responsive as reasonable doubt exists that the bid does not represent the lowest cost to the BSPMC.

5. If the initial low bid contract proposal is found to be materially unbalanced and rejected, the BSPMC may award to the next low bid contract proposal at the bid contract amount or may elect to reject all bids and re-let/re-bid. Decisions will be made in the community’s interest and will consider consequences of re-letting/re-bidding the project.


GUIDELINES ON WARRANTY, LIABILITY and SANCTIONS in KALAHI-CIDSS Procurement 1. Warranty

1.1. For the procurement of goods, in order to assure that the manufacturing defects shall be corrected by the supplier, manufacturer, or distributor, as the case maybe, a warranty shall be required from the contract awardee for a minimum period of three (3) months, in the case of supplies, and one (1) year, in the case of equipment, after performance of the contract. The obligation for the warranty shall be covered by either retention money or in an amount equivalent to at least ten percent (10%) of every progress payment or a special bank guarantee equivalent to at least ten percent (10%) of the total contract price. The said amounts shall only be released after the lapse of the warranty period. Provided however, that the goods supplied are free from patent and latent defects and all the conditions imposed under the contract have been fully met.

1.2. For the procurement of infrastructure projects, the contractor shall assume full

responsibility for the contract work from the time project construction commenced up to final acceptance by the community and shall be held responsible for any damage or destruction of the works except those occasioned by “force majeure.” The contractor shall be fully responsible for the safety, protection, security and convenience of his personnel third parties, and the public at large, as well as the works, equipment, installation and the like to be affected by his construction work and shall be required to put up a warranty security in the form of cash, bank guarantee or letter of credit callable on demand in accordance with the following schedule:

Form of Warranty Minimum amount in % of Total Contract

Price 1. Cash deposit, cash bond or letter of credit

Five percent (5%)

2. Bank Guarantee Ten percent (10%)

The warranty security shall be stated in Philippine Pesos, shall remain effective during the applicability warranty period and shall be returned only after the lapse of warranty period.

2. Liability (under contract) The defects liability period for infrastructure projects shall be one year from

project completion up to final acceptance by the community. During this period, the contractor shall undertake the repair works, at his own expense of any damage to the infrastructure projects on account of the use of materials of inferior quality within ninety (90) days from the time the BSPMC has issued order to undertake repair. In case of failure or refusal to comply with this mandate, the BSPMC shall undertake such repair works shall be entitled to full reimbursement of expenses incurred therein upon demand.

Any contractor who fails to comply with the preceding paragraph shall suffer

perpetual disqualification from participating in any public bidding and his property shall be subject to attachment or garnishment proceedings to recover


the costs. All payables of the BSPMC in his favor shall be offset to recover the costs.

3. Sanctions against Bidders 3.1. The BSPMC being the representative of the barangay as the lowest political

structure in the government should impose administrative penalties to the prospective bidders. The sanctions of one (1) year suspension for the first offense, suspension of two (2) years for second offense from participating in the public bidding process as well as disqualification from further participating in the public bidding being undertaken by the project, for the following violations:

2 Submission of eligibility requirements containing false information or falsified documents.

3 Submission of Bids that contain false information or falsified documents, or the concealment of such information in the Bids in order to influence the outcome of eligibility screening or any stage of public bidding.

4 Withdrawal of a bid, or refusal to accept award, or enter into contract with the BSPMC without justifiable cause, after he had been adjudged as having submitted the Lowest Calculated Responsive Bid.

5 Refusal or failure to post the required performance security within the prescribed time.

6 Termination of the contract due to the default of the bidder. 7 Any documented unsolicited attempt by a bidder to unduly

influence the outcome of the bidding in his favor. 8 All other acts that tend to defeat the purpose of the competitive

bidding, such as an eligible contractor participating in the pre-bid conference which does not buy bid documents and contractors habitually withdrawing from bidding or submitting letters of non-participation for at least three (3) times within a year, except for valid reasons.

3.3 In addition to the penalty of suspension, the Bid Security or the Performance

Security posted by the concerned bidder or prospective bidder shall also be forfeited.

3.4 The BSPMC Chair may delegate to the BAC the authority to impose the aforementioned administrative penalties.

3.5 The procedures for the blacklisting of manufacturers, suppliers, distributors, contractors, or consultants for the Government projects shall be undertaken in accordance with the guidelines issued by the project.

4. Sanctions against the BSPMC members

4.1. Since most of the community projects are implemented by the community volunteers and some barangay officials, there is a possibility of procurement violation. In order to safeguard the integrity of the procurement process adopted by the Project, appropriate sanctions and penalties should be imposed to them.

Sanctions and penalties may depend on the magnitude of offenses committed

by the BSPMC members. Accidental mistakes made by the BSPMC members must be immediately corrected. Succeeding similar mistakes or offenses will warrant for the imposition of sanctions and penalties to the individual, BSPMC or the Barangay as a whole.


Listed below are some of the common mistakes that the BSPMC may commit and must be address by the concerned ACTs or Procurement Officers to avoid penalties and sanctions.

Under the Local Bidding/Shopping Method

a. Sets of Canvass Form were served or given to only one (1) or two suppliers.

b. Opening of canvass without proper quorum of the BAC. c. The awarding of contract or Purchase Order (PO) with only one (1) or two

(2) canvass received during the opening. d. Payment was made before the delivery of materials and works. e. Non-observance of the penalty to be imposed to supplier/contractor for

delayed delivery of materials and works. f. Payroll padding of Labor payment. g. Favoring supplier or contractor. h. Awarding contract without posting the required performance security. i. Purchasing without following our prescribed procurement method and its

detailed procedures.


GUIDELINES: PROCUREMENT OPTIONS ON COMMUNITY PROJECTS AFFECTED BY PRICE ESCALATION Incessant price increases maybe experienced anytime and may have effect to approved community projects. These include prices of construction materials resulting to high quotations/bids of suppliers/contractors exceeding the programmed cost. The 5% mark-up in the estimates and 10% contingency costs may not be able cover such escalation. To somehow address the above, a revised the readiness filter replacing the procurement requirements into a procurement action plan (PAP) to eliminate cases on non-conformance of suppliers when the purchase order is served. This is effective when the procurement benchmark/timeline (within 7-9 calendar days) is observed when shopping for goods. For shopping of works, bidding of goods and works, that will need 27-35 calendar days to complete the procurement process that are affected by price escalation and the resultant quotations or bids exceeds the approved estimated cost, automatic re-bidding should NOT be the immediate action. There is a need to review whether the bids are reasonable, i.e. within market ranges. If the BAC and TWG are convinced that the prices are within market ranges and that the increase is based on the current trend, the following shall be undertaken to augment the difference:

i. Use the savings/balance from other packages (if there are); ii. Use the allotted contingency; iii. If there are no savings/balances from other package/s and no allotted contingency or if the contingency is not enough to cover the deficit, supplement the budget by sourcing out additional LCC; iv. If no LCC is produced, the last resort will be to reduce the scope of works to fit within available budget. In reducing the scope of works below are suggested considerations: a. For buildings: Deletion of painting works, amenities such as chairs and tables or other possible items that will not affect stability of the building; b. For Roads: Reduction of the physical length may be necessary or deletion of items of works that may be covered by future operation and maintenance like provision of Item 201 (Aggregate Base Coarse) if Item 200 (Aggregate Sub-Base Coarse) will be provided, Item 311-Portland Cement Concrete Pavement (PCPP), Item 504 (Grouted Riprap) in non-critical sections, etc… c. For Water System: the engineer/s to review the hydraulic analysis to check possible reduction of pipes that were overly designed and possible reduction of overly designed reservoir or other structures, otherwise, increase labor counterpart contribution; and, d. For other type of community projects where there are no scope of work/s to be reduced, reduction of programmed labor to be paid is recommended. It is reiterated that whenever there is reduction in scope of works, it should be properly deliberated with the Barangay Assembly for transparency purposes. The community must also agree to shoulder reduced scope of works as part of the operation and maintenance activities. It should be considered that


whenever there is reduction of scope, the community project should be functional.

In using any of the above provisions as basis for recommending the award to a particular service provider (supplier/contractor), said basis must be properly captured/indicated in the minutes of evaluation. If there is substantial reduction (say more than 20%), a re-bidding with reduced scope of works may be the best solution.

EVALUATION OF BIDS/QUOTATION USING EXCEL FORMAT Background An excel format of Abstract of Bids is prepared to simplify evaluation of quotation/bids for both goods and works. This may not be applicable to all Municipalities since technology may be limited especially in the far-flung areas. However, for those areas with computers it is recommended to use the formulated evaluation sheets to fast track evaluation and submission. Reminder Quotation or Bid Examination has two levels, first is the preliminary examination using the pass/fail criteria and the second is the evaluation proper. At the first level, as provided in the procurement manual, quotations/bid proposals that are not compliant to the requirement based on the checklist will not be evaluated. Thus, to be fair, quotations or bid proposals that have lacking documents should not be evaluated and should be marked “failed”. Bid proposals that have passed the pas/fail criteria will be evaluated and rated. The examples presented are established forms in the procurement manual. The example presented is for bidding for goods and works but can be enhanced for shopping by replacing the title Abstract of Bids to Abstract of Canvass and deleting the columns for bid security since it is not required for shopping. The evaluation process We have 2 examples presented (1 for goods and 1 for works). With the assumption that all documents were complied by the 3 bidders based on the pass/fail criteria, cost evaluation will now take place. Before going to the details of the evaluation25

Per Approved POW and PCPP

, it is suggested that the evaluators should review the contents of the package (based on the PCPP) in consideration. The example shows 3 major columns with several sub-columns. Rows vary on the number of items to be procured. The sub-columns under “Per Approved POW and PCPP” have 6 sub-columns which are: Item Number, Description, Quantity, Unit, Unit Price and Total were taken from the PCPP. For purposes of understanding, let us cut out the first major column in example number 2 (abstract for works):

25 The evaluation mentioned is based on the process in checking the required Technical, Financial and Legal documents and other requirements indicated in the invitation for bids.


Item no. Description Qty Unit Unit Price Total

102 Roadway & Drainage Excavation 6,762.39 Cu.m. 70.39 476,004.63

105 Sub-Grade Preparation 9,812.00 Sq.M. 14.69 144,138.28

200 Aggregate Sub-Base Coarse 1,417.80 Cu.m. 225.81 320,153.42

201 Aggregate Base Coarse 1,471.00 Cu.m. 253.36 372,692.56 Total 1,312,988.89

The above data can be linked to the abstract of bids from the PCPP. Since the above data are fixed and to avoid retyping during the evaluation, it is suggested that during the programming the abstract of canvass and abstract bid form should prepared. It can also be copied from the file to be uploaded thru the KC yahoo group ([email protected])26

ABC DEVELOPMENT CONSTRUCTION

used by the project staff. The second column is the bid/quotation offered by the contractor/supplier (as the case maybe) with 4 sub columns namely: Unit Price, Amount, Type of Bid Security and Amount of Bid Security. Below is the cut out columns and rows:

Unit price Amount Bid Security

Type Amount

47.36 320,250.00

Cash 12,500.00 10.86 106,558.32 280.42 397,579.48 288.47 424,339.37

1,248,727.17 The figures found under the column amount was easily be taken using the excel formula by pressing the equal sign (=) in each cell then multiplying the quantity (from the PCPP) times the unit price in each row then press enter. The third column is the cost analysis with 3 columns namely: within or above budget, Percentage (cost difference) and Remarks as shown below:

C O S T A N A L Y S I S

Within or Above Budget?

Percentage (Cost Difference)

Remarks ( in terms of cost)

Within Budget 48.64% Responsive

Within Budget 35.27% Responsive Above Budget -19.47% Not Responsive Above Budget -12.17% Not Responsive

Within Budget 5.15% The result in each column has formula to automatically state whether it is within or above budget, Percentage difference based on the approved cost and the remarks will say if each item cost is responsive or not in terms of cost. It is however clarified that the term responsive or not responsive as being evaluated in the abstract sheet/form is only limited to the cost and not pertaining to the whole

26 A KC Procurement website will be created to directly answer queries (online).

mailto:[email protected]�


evaluation process. It is further clarified that when we say RESPONSIVE, to mean that the solicited bid is determined to be in substantial conformance with the conditions, completion or delivery requirements, and specifications detailed in the invitation-to-bid (ITB). For better understanding of the formula, please proceed to the example presented and click in each cell. The formula will be shown what column and row is involved. There are limitations however in cases where a blank cell is not filled up especially the unit price. If this is the case, the answer could either be error or may accept the formula and will show a positive result which is wrong!

http://www.businessdictionary.com/definition/bid.html�

http://www.businessdictionary.com/definition/substantial.html�

http://www.businessdictionary.com/definition/conformance.html�

http://www.businessdictionary.com/definition/condition.html�

http://www.businessdictionary.com/definition/completion.html�

http://www.businessdictionary.com/definition/delivery.html�

http://www.businessdictionary.com/definition/requirements.html�

http://www.businessdictionary.com/definition/specification-spec.html�

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LB for Goods & Works

ABSTRACT OF BIDS

Barangay: Tomabe

Municipality: Villareal

Province : Samar

Name of Community Project: Improvement of Barangay Road

Items

No. Description Qty Unit Unit

Price Total

ABC HARDWARE C O S T A N A L Y S I S

Unit price Amount

Bid Security Within or Above

Budget?

Percentage (Cost

Difference)

Remarks Type Amount

1 Selected Borrow 335 cu.m. 650 217,750.00 575.00 192,625.00

Managers Check 20,805.00


2 Ready Mixed Aggregates (Item 201)

1630 cu.m. 800 1,304,000.00 750.00 1,222,500.00 Within Budget 6.67% Responsive

3 Washed Sand 77 cu.m. 700 53,900.00 770.00 59,290.00 Above Budget -9.09% Not Responsive

4 Washed Gravel (G-1) 139 cu.m. 850 118,150.00 1,450.00 201,550.00 Above Budget -41.38% Not Responsive

5 24" RCPC 36 pcs 850 30,600.00 1,750.00 63,000.00 Above Budget -51.43% Not Responsive

6 Portland Cement 1260 bags 230 289,800.00 240.00 302,400.00 Above Budget -4.17% Not Responsive

7 10 MM RSB 230 pcs 315 72,450.00 130.00 29,900.00 Within Budget 142.31% Responsive 8 #16 Tie wire 20 kilos 70 1,400.00 90.00 1,800.00 Above Budget -22.22% Not Responsive 9 3" CWN 18 kilos 60 1,080.00 85.00 1,530.00 Above Budget -29.41% Not Responsive 10 4" CWN 30 kilos 60 1,800.00 85.00 2,550.00 Above Budget -29.41% Not Responsive 11 1 1/2" CWN 8 kilos 60 480.00 88.00 704.00 Above Budget -31.82% Not Responsive

12 11/4 Thick

Ord. plywood

8 pcs 325 2,600.00 300.00 2,400.00 Within Budget 8.33% Responsive

Total 2,094,010.00 2,080,249.00 Within Budget 0.66%


________________________________ BSPMC CHAIRPERSON

Date: ___________________


Local Bidding for Goods & Works

ABSTRACT OF BIDS Barangay: _________________, ______________(Municipality), ________________(Province)

Name of Community Project: Improvement of Barangay Road

Items

No. Description Qty Unit Unit

Price Total

KEN GENERAL TRADING C O S T A N A L Y S I S

Unit price Amount Bid Security Within or

Above Budget?

Percentage (Cost

Difference) Remarks

Type Amount

1 Selected Borrow 335 cu.m. 650

217,750.00 450.00

150,750.00

Managers Check 20,339.00


2 Ready Mixed Aggregates (Item 201)

1630 cu.m. 800 1,304,000.00

760.00 1,238,800.00 Within Budget 5.26% Responsive

3 Washed Sand 77 cu.m. 700

53,900.00 800.00

61,600.00 Above Budget -12.50% Not Responsive

4 Washed Gravel (G-1) 139 cu.m. 850

118,150.00 1,200.00


5 24" RCPC 36 pcs 850 30,600.00

1,500.00


6 Portland Cement 1260 bags 230

289,800.00 250.00


7 10 MM RSB 230 pcs 315 72,450.00

165.00

37,950.00 Within Budget 90.91% Responsive

8 #16 Tie wire 20 kilos 70 1,400.00

104.00


9 3" CWN 18 kilos 60 1,080.00

75.00


10 4" CWN 30 kilos 60 1,800.00

75.00


11 1 1/2" CWN 8 kilos 60 480.00

75.00

600.00 Above Budget -20.00% Not Responsive

12 11/4 Thick

Ord. plywood

8 pcs 325 2,600.00

340.00


Total 2,094,010.00 2,033,900.00 Within Budget 2.96%


__________________________ ________________________ _________________________ ___________________________ BAC Member BAC Member BAC Chairperson BSPMC Chairperson

KC - Procurement Manual May 2011

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Transcript of KC - Procurement Manual May 2011