Procurement Handouts

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KC Procurement

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<p>INTRODUCTION Procurement activity starts after thorough planning. It is assumed that technical designs/plans, detailed estimates, program of works and procurement packages are approved. DEFINITION OF TERMS:</p> <p>What is procurement? Procurement is a process of: </p> <p>acquiring/purchasing goods, supplies, materials, equipment and renting equipment; contracting the entire or portion of the works to contractor.</p> <p>What do we procure in KALAHI-CIDSS? GOODS -These include supplies, materials and purchase of equipment, trucking and hauling. Examples: construction materials, seedlings/seeds (for prevention of erosion), hand tools and including office supplies for use by the BSPMC in its operations. WORKS refers to civil/infrastructure and all types of physical works 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. CONSULTING SERVICES refers to services provided by external technical service providers or professional expertise that are beyond the capacity of the project/LGU staff to undertake such as but not limited to: feasibility studies; design; construction supervision; services for capability building types of sub-project; and, special studies. PRINCIPLES OF PROCUREMENT FE-E T- A Fairness/Fair-dealing competitive by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. Suppliers/contractors should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. The Community should not impose unnecessary burdens or constraints on suppliers or potential suppliers. PRINCIPLE</p> <p>Effectiveness - it should be simple and applicable to the community. The service provider/s should meet the commercial regulatory and socio-economic goals of the community in a balanced manner appropriate to the procurement requirement. The processes should be carried out as cost effective as possible. Economy - The BSPMC shall use the Lowest Calculated and Responsive Bid/Quotation and the most advantageous to the BSPMC as criteria for selection of service providers. T ransparency</p> <p>-</p> <p>Transactions during procurement process and implementation must be transparent. There should be openness and clarity on procurement policy and its delivery. All transactions must be known by the public.</p> <p>A ccountability the BSPMC and any official, directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with BSPMCs, when warranted by circumstances, investigated and held liable for their actions relative thereto.</p> <p>PROCUREMENT POLICIES Procurement for the sub-project shall be the responsibility of the community through the Barangay Sub-Project Management Committee (BSPMC). A Procurement Team composed of at least three community volunteers elected by the barangay assembly shall assist the BSPMC. 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. 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. 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. The Project prescribes the procurement methods and procedures to be used. These are contained in the manual and should be followed strictly by participating communities. 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. Following this State policy, the Loan Agreement for KALAHI-CIDSS project, Ln. No. 7147PH, provides that for community projects, the procurement method should follow community participation method.</p> <p>Thus, the procurement procedures provided for in the Community Procurement Manual, as acceptable to the Bank, shall be followed. Violations of the prescribed procurement policies, methods and procedures shall hold the participating communities liable for sanctions. Procurement made not in accordance with these guidelines shall be disallowed. Grant funds used shall be returned to the Project. Depending on the degree of violation, the sanctions can range from disallowance, suspension of further fund releases, withdrawal of the sub-project, or in the case of anomalous transactions, civil and/or criminal cases against the persons responsible. The Community-Based Procurement Manual shall be the basis of the government auditors, the World Bank, and other bodies exercising oversight functions in determining the legality, propriety and regularity of the communitys procurement activities. The World Bank Guidelines and the Loan Agreement take precedence over Local Guidelines, in case of conflict.</p> <p>Relevant provisions of RA 9184 and its Implementing Rules and Regulations (IRR) and its amendments shall apply whenever the Community-Based Procurement Manual is silent as regards certain procurement process and procedures</p> <p>PROCUREMENT ORGANIZATION &amp; FUNCTIONS OF THE PROCUREMENT TEAM The Barangay Assembly members elect at least three members of the Procurement Team (PT) and Bids ansd Awards Committee (BAC) during the Second Barangay Assembly meeting for KALAHICIDSS: KKB Project. The Procurement Team shall be in charge of activities required to acquire all the supplies, materials, equipment, labor from suppliers and contractors.</p> <p>The BAC shall, among others, determine the eligibility of prospective bidders, receive and open bids, conduct the evaluation of bids, undertake post-qualification proceedings, and recommend the award of contract.</p> <p>SPECIFIC FUNCTIONS OF THE PROCUREMENT TEAM Prepares procurement documents Act as Canvassers Prepare and finalize Planned Community Procurement Packaging (PCPP) &amp; 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 Act as Secretariat to the Bids and Awards Committee Assists in updating the status of Actual Community Procurement Packaging (ACPP)</p> <p>Functions of BAC The BAC shall be responsible for ensuring that the BSPMC abides by the standards set forth in the Community-Based Procurement Manual. The BSPMC Chairperson is the representative of the owner community. In effect, it represents the head of the procuring entity and approves contract with the Chairman being authorized to sign it. The BAC is a mere creation of the BSPMC. Responsibility therefore cannot be delegated to the BAC.</p> <p>Composition of the BAC Barangay Treasurer Head-Project Preparation Team One member to be elected by BSPMC Executive Committee (Brgy. Officials are disqualified)</p> <p>Note: The BSPMC Executive Committee is composed of the BSPMC chairperson and heads of teams under the BSPMC</p> <p>The BAC members shall elect the chairperson of the Bids and Awards Committee (BAC). The BSPMC Chairperson as approving authority on all transactions is disqualified to be a member of BAC. The Barangay Treasurer is also disqualified to head the BAC. The LGU COA Auditor, Barangay Captain, Area Coordinator, Deputy Engineer and the Barangay Audit and Inventory Committee Head shall be invited to sit as non-voting members. Other interested parties are also encouraged to observe the BAC proceedings. A Technical Working Group (TWG) shall be formed with the assistance of the Area Coordinating Team. The TWG shall assist the BAC in bid evaluation.</p> <p>ROLES OF THE TWG attend procurement training workshop provide technical assistance to BAC during evaluation of quotation and bids assist procurement team in drafting contract Composition of the TWG Area Coordinator or Deputy Area Coordinator Municipal Engineer/Municipal Agricultural Officer/CENRO/MENRO (depends on the type of contract) Supervising Sub-Project Engineer / Leadperson / Foreman (if municipal engineer is not available) Roving Bookkeeper (Financial Analyst) Volunteer professionals in the community (if any)</p> <p>ROLES OF THE AREA COORDINATING TEAM (ACT) Area Coordinator provide action regarding red flag of abnormalities issue clearance to direct contracting for goods</p> <p>Deputy Area Coordinator assist in the preparation of CPP conduct training on procurement to volunteers provide technical assistance during bid evaluation attend bid opening provide action regarding red flag of abnormalities as per instruction of AC.</p> <p>Community Facilitator attend procurement training workshop monitor red flag of abnormalities using CF Procurement Monitoring Form conduct contract review by ensuring completeness of documents using checklist</p> <p>Roving Bookkeeper/Financial Analyst Maintain copies of procurement documents at ACTs. 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. 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 separate package. 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, package the hardware materials and aggregates as one. Case 2: For common Work items such as Item 100 (Clearing and Grubbing), Item 102 (Excavation), Item 105 (Sub-grade Preparation), Item 200 (Aggregate Sub-Base Course), Item 201 (Aggregate Base Course), Item 311 (Portland Cement Concrete Pavement), Item 405 (Reinforcing Steelbars), Item 500 (Reinforced Co, 504, 505 and other items that are part of the contract, packaging can be done in two ways. First, define the items that can be undertaken by community force account and have it packaged as separate package then for items that requires heavy equipment, such items must be packaged separately. Second, if the community has no capacity to undertake any of the items of works as the contract calls for mechanized equipment and specialized skills, all the items must be packaged into one and undertake it by contract. 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.</p> <p>Sample Workshop 1 : Prepare an appropriate package of the following materials PARTICULARS Selected Filling Materials Aggregate Base Coarse Sand Boulders Portland Cement 16 mm dia. RSB x 6M 10 mm dia. RSB x 6M 2"x3"x10' Coco Lumber 1/4" thick Ord. Plywood 3 inches CWN POSSIBLE PACKAGING: PACAKGE 1: Selected Filling Materials Aggregate Base Coarse Sand Boulders PACKAGE 2: Portland Cement 16 mm dia. RSB x 6M 10 mm dia. RSB x 6M 1/4" thick Ord. Plywood 3 inches CWN Package 3: 2"x3"x10' Coco Lumber 500 Bd. Ft. 100 110 150 12 15 Bags Pcs Pcs Pcs kilos 50 40 30 20 Cu.M. Cu.M. Cu.M. Cu.M. QUANITITY 50 40 30 20 100 110 150 500 12 15 UNIT Cu.M. Cu.M. Cu.M. Cu.M. Bags Pcs Pcs Bd. Ft. Pcs kilos</p> <p>Note: In cases of areas where suppliers can supply all the listed materials, these groupsof materials can be packaged as one, otherwise this will be considered as splitting once package into several and serve into same suppliers. Sample Workshop 2: Prepare an appropriate packaging of the following items of works Item 105 Item 200 Item 201 Item 311 Item 500 Item 505 Sub-grade Preparation Aggregate Sub-Base Aggregate Base Coarse 300 Linear Meter Item 311 (PCCP) RCPC (0.61M dia.) Grouted Riprap</p> <p>Possible Packaging: 1. Option 1 is to package all the items as one if all thee items of works will be undertaken by contract thus, there will be only one package. 2. Option 2: Item 105 PACKAGE 1: Shopping/Bidding Item 200 Item 201 Sub-grade Preparation Aggregate Sub-Base Aggregate Base Coarse</p> <p>PACKAGE 2: CFA PACKAGE 3: CFA PACKAGE 4: CFA</p> <p>Item 311 Item 500 Item 505</p> <p>300 Linear Meter (PCCP) RCPC (0.61M dia.) Grouted Riprap</p> <p>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 because it can be undertaken by CFA and 1 or 2 Pakyaw group can undertake it. 2. Breaking of packages in this particular case using combined method of procurement is not considered SPLITTING since the purpose of undertaking the sub-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.</p> <p>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. Hereunder is the definition of the term and sample cases for clearer understanding.</p> <p>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 NOL requirement from the NPMT or the World Bank then there is Splitting of Package/Contracts. Case 2: In cases of perishable goods like cement that are intended for different items of works and the sub-project requires bulk purchase but it is not realistic to deliver in the barangay considering that there is no available storage and in most cases sub-project locations are located 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 upon 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...</p>