CBPM with Annex ECP Guidelines.pdf - NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROGRAM(NCDDP Department of Social Welfare and Development KALAHI-CIDSS

CBPM with Annex ECP Guidelines.pdf - NATIONAL COMMUNITY...

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Unformatted text preview: NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROGRAM (NCDDP) Department of Social Welfare and Development KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT (NCDDP) COMMUNITY BASED PROCUREMENT MANUAL VOLUME ONE (October 2014) ii PREFACE i TABLE OF CONTENTS Preface............................................................................................................................ Acronyms and Abbreviations ....................................................................................... i iv CHAPTER ONE: GENERAL PROVISIONS FOR COMMUNITY BASED PROCUREMENT 1.1. Purpose ..................................................................................................................... 1.2. Scope ........................................................................................................................ 1.3. Coverage .................................................................................................................. 1.4. Application ................................................................................................................. 1.5. Principles in Community Driven Procurement ........................................................... 1 2 2 3 3 3 CHAPTER TWO: PROCUREMENT ORGANIZATION AND CAPACITY BUILDING ...... 2.1. Organizational Structure at the Community Level ..................................................... 2.2. Barangay Sub-Project Management Committee ..................................................... 2.3. Bids and Awards Committee .................................................................................... 2.4. Procurement Team ................................................................................................... 2.5. Technical Working Group.......................................................................................... 2.6. Observers ................................................................................................................. 2.7. Functions and Responsibilities ................................................................................. 2.8. Other Procurement Stakeholders .............................................................................. 2.9. Capacity Building for Community Based Procurement Groups................................. 5 6 6 6 7 7 7 8 10 11 CHAPTER THREE: PROCUREMENT PLANNING FOR COMMUNITY BASED PROCUREMENTS ........................................................................................................... 3.1. Community Empowerment Activity Cycle (CEAC) ..................................................... 3.2. Procurement Planning ............................................................................................. 3.3. Preparation of the Program of Works ....................................................................... 3.4. Preparation of the Initial Community Procurement Plan ............................................ 3.5. Finalization of the Community Procurement Plan ..................................................... 13 14 14 15 17 22 CHAPTER FOUR: COMMUNITY BASED PROCUREMENT METHODS AND SUBPROJECTS ..................................................................................................................... 4.1. Community Participation in Procurement ................................................................. 4.2. Community Based Procurement Methods ................................................................ 4.3. Thresholds for the Use of Community-Based Procurement Methods and Prior Review Thresholds .......................................................................................... 4.4. Possible Types of Community Projects Requiring Procurement ............................... CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES .................... . 5.1. Community Shopping for Goods and Works ............................................................ 5.2. Community Direct Contracting for Goods and Works ............................................... 5.3. Community Repeat Order for Goods ........................................................................ 5.4. Small Value Procurement for Goods and Works ...................................................... 5.5. Pakyaw Contracts .................................................................................................... 5.6. Community Bidding .................................................................................................. 5.7. Consultant Qualification Selection/Single Source Selection and Individual Consultant Selection for Consulting Services ........................................... 23 24 24 25 26 30 31 39 46 48 51 54 76 CHAPTER SIX: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED GOODS AND SERVICES ............................................................................................................... 97 6.1. Warranty .................................................................................................................. 98 6.2. Amendment to Order ............................................................................................... 99 ii 6.3. Suspension of Delivery ............................................................................................ 101 6.4. Delays in Delivery and Liquidated Damages ............................................................ 102 6.5. Incidental Services ................................................................................................... 103 6.6. Spare Parts and Maintenance .................................................................................. 103 6.7. Prices....................................................................................................................... 104 6.8. Payments ................................................................................................................ 104 6.9. Subcontracts and Assignments ............................................................................... 104 6.10. Standards ............................................................................................................... 105 6.11. Inspection and Tests ................................................................................................ 105 6.12. Force Majeure .......................................................................................................... 105 6.13. Contract Termination ............................................................................................... 106 6.14. Blacklisting ............................................................................................................... 108 CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED WORKS …………………..………………………………………………………………………. 109 7.1.Subcontracting ............................................................................................................ 110 7.2. Contractor’s Program of Works ................................................................................ 111 7.3. Inspection and Tests ................................................................................................ 111 7.4.Dayworks .................................................................................................................... 112 7.5. Measurement of Works .............................................................................................. 112 7.6. Contractor’s Obligations and Responsibilities .......................................................... 113 7.7.Contract Price and Payment ....................................................................................... 113 7.8. Variation Orders ....................................................................................................... 115 7.9. Suspension of Work ................................................................................................... 117 7.10. Contract Time Extension .......................................................................................... 118 7.11. Delays in Work Completion and Liquidated Damages .............................................. 120 7.12. Contract Termination ............................................................................................... 120 7.13. Contract Completion ................................................................................................ 122 7.14. Warranty and Defects Liability Period ...................................................................... 123 7.15. Settlement of Disputes ............................................................................................. 124 CHAPTER EIGHT: COMMUNITY BASED PROCUREMENT MONITORING ................... 125 8.1. Importance of Community Procurement Monitoring .................................................. 126 8.2. Community Procurement Compliance Monitoring ..................................................... 126 8.3. Project Billboard ........................................................................................................ 127 8.4. Community Procurement Performance Monitoring .................................................... 128 8.5. Integrated Procurement Compliance and Performance Monitoring Report ................ 129 8.6. Procurement Post Review Assessment .................................................................... 129 GLOSSARY OF TERMS .................................................................................................. 130 PERIOD OF ACTION ON PROCUREMENT ACTIVITIES ................................................ 139 iii ACRONYMS, ABBREVIATIONS ACT BA BAC BDC C/BSPMC CBPM CD CDD CEAC CENRO CFA CFMS CIO COA CPO CPP CSO DSWD DA DENR DEPED DOH DPWH DTI DV ECPP GOP GPRA IB IPCPMR IRR ITB KALAHI- CIDSS KC-NCDDP LCB LCC LCCQ LCRB LCRQ LGC LGU MAO ME MENRO MFA MIAC MIBF MIT NDRRMC NFCC Area Coordinating Team Barangay Assembly Bids and Awards Committee Barangay Development Council Community/Barangay Sub-Project Management Committee Community Based Procurement Manual Calendar Days Community Driven Development Community Empowerment Activity Cycle Community Environment and Natural Resource Management Officer Community Force Account Community Financial Management System Community Infrastructure Officer Commission on Audit Community Procurement Officer Community Procurement Plan Civil Society Organization Department of Social Welfare and Development Department of Agriculture Department of Environment and Natural Resources Department of Education Department of Health Department of Public Works and Highways Department of Trade and Industry Disbursement Vouchers Emergency Community Procurement Plan Government of the Philippines Government Procurement Reform Act Invitation to Bid Integrated Procurement Compliance and Performance Monitoring Report Implementing Rules and Regulations Instruction to Bidders Kapit-bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services KALAHI-CIDDS National Community Driven Development Project Lowest Calculated Bid Local Counterpart Contribution Lowest Calculated and Complying Quotation Lowest Calculated and Responsive Bid Lowest Calculated and Responsive Quotation Local Government Code Local Government Unit Municipal Agricultural Officer Municipal Engineer Municipal Environmental and Natural Resource Office Municipal Financial Analyst Municipal Inter Agency Committee Municipal Inter-Barangay Forum Monitoring and Inspection Team National Disaster Rick Reduction Management Council Net Financial Contracting Capacity iv NOA NOL NPMO NPMT NRM NRQ NTP OR PCAB PCMR PDNA Phil-GEPS PIAC PIT PNS PO POW PPMR PPT PS PT RCIS RFQ ROW RPM RPMO RPMT RPO RTA SEC SOW SPA TA TAF TF TWG WB Notice of Award No Objection Letter National Project Management Office National Project Management Team Natural Resources Management Notice of Request for Quotation Notice to Proceed Official Receipt Philippine Contractors Accreditation Board Procurement Compliance Monitoring Report Post-Disaster Needs Assessment Philippine Government Electronic Procurement System Provincial Inter Agency Committee Project Implementation Team Philippine National Standards Purchase Order Program of Works Procurement Performance Monitoring Report Project Preparation Team Project Supervisor Procurement Team Regional Community Infrastructure Specialist Request for Quotation Right of Way Regional Program Manager Regional Program Management Office Regional Program Management Team Regional Procurement Officer Resolution to Award Securities and Exchange Commission Scope of Work Special Power of Attorney Technical Assistance Technical Assistance Fund Technical Facilitator Technical Working Group World Bank v CHAPTER ONE: GENERAL PROVISIONS FOR COMMUNITY BASED PROCUREMENT 1.1. 1.2. 1.3. 1.4. 1.5. Purpose Scope Coverage Application Principles in Community Driven Procurement 1 1.1. Purpose This Community Based Procurement Manual (CBPM) for the KALAHI-CIDSS1 National Community Driven Development Project (KC-NCDDP) is developed for the purpose of setting guidelines for community participation in procurement based on the experience gained from the first KALAHI-CIDDS project. It aims to provide community based officials and volunteers implementing planning and investment grants under the project with a clear and concise set of procedures to follow in its procurement activities. These procedures incorporate the relevant provisions of the “Government Procurement Reform Act” (RA 9184) and its implementing rules and regulations, the Local Government Code (LGC), and the procurement guidelines of international financing institutions involved in the project, among them, the Asian Development Bank (ADB) and the World Bank (WB). It also discusses important issues that may confront community based officials in the different stages of procurement. The Government Procurement Reform Act (GPRA) states that for foreign funded procurements, its implementing rules and regulations (IRR) shall apply, unless a treaty or international or executive agreement expressly provides for the use of the procurement procedures and guidelines of the foreign governments or international financing institutions. However, in case of conflict between the terms of the treaty or international or executive agreement and this IRR, the former shall prevail. (Section 4.2. IRR-A) Community driven development (CDD) is an approach that gives control over planning decisions and investment resources for development projects to community groups based on the principles of local empowerment, participatory governance, demand-responsiveness, administrative autonomy, greater downward accountability and enhanced local capacity. Procurement is one of the most critical activities in community project planning and implementation as it empowers communities to establish needs, identify activities to address such needs, and to take control of decision making in the judicious use and disbursement of limited resources. It can also help stir up the local economy through the purchase of goods and services from local entrepreneurs and the employment of local labor. It is, therefore, important to provide a standardized set of procurement procedures in accordance with the loan agreements to prevent confusion and ensure transparency among community officials and other stakeholders. Community based procurement provides equal opportunity for men and women to take part in all procurement activities. The CBPM is a harmonized version of the procurement and contract implementation procedures under the GPRA as well as the ADB and WB procedures on community participation in procurement based on the experience gained from the first KC project. This edition clarifies many gray areas that were not discussed in the previous manual and includes strengthened provisions on contract implementation and procurement monitoring. 1.2. Scope The CBPM shall apply to all community based procurement activities under the KC-NCDDP based on the approved Community Procurement Plan (CPP) regardless of source of funds. It shall not cover the acquisition of right-of-way site or location for infrastructure projects, leasing of government-owned facilities and those projects included in the negative list discussed in Section 4.4 of this manual. 1 KALAHI-CIDSS stands for Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social Services. 2 1.3. Coverage The procedures provided in this CBPM shall cover all procurements of goods and services, infrastructure or works projects and consulting services under the Community Empowerment Activity Cycle (CEAC) stages of social preparation; project identification, preparation, selection and planning; and implementation of sub-projects. 1.4. Application The procurement procedures provided in this manual shall apply to the following: 1. Goods and services – This refers to all items, supplies, materials, and general support services which may be needed in undertaking the project related activities or in the operations of the Community/Barangay Sub-Project Management Committee (C/BSPMC). This includes, among others, equipment (transport, production, post production, processing and storage), furniture, office supplies, construction materials, agricultural or aquacultural inputs, seedlings or trees, hand tools. It also refers to nonpersonal or contractual services such as fabrication, lease, repair and maintenance of equipment, trucking, hauling, security, rental of venues and facilities, hiring of short term resource persons or facilitators, catering services for workshops and trainings, attendance to external trainings and seminars and other short term services not considered as consulting services. 2. Works or Infrastructure Projects– This refers to undertakings to construct, improve, upgrade, rehabilitate, demolish, repair, restore, or maintain small scale infrastructure and all types of physical works such as construction, improvement, upgrading of barangay roads and bridges, buildings, classrooms, barangay health stations, day care centers, communal irrigation, flood control and drainage, water supply, sanitation, sewerage, solid waste, water shed protection and other natural resource management systems, shore and slope protection, energy/power and electrification and other common service facilities, as well as physical labor to complete such projects. 3. Consulting Services–This refers to services provided by external technical service providers2 or experts that are beyond the capacity of the C/BSPMC or Local Government Unit (LGU) staff to undertake such as but not limited to feasibility studies; engineering and architectural design; construction supervision; capacity building; and, special studies, among others. 1.5. Principles in Community Driven Procurement Community driven procurement under the KC-NCDDP shall be governed by the following principles: 1. Fairness (Fair dealing) - it should provide fair and equal opportunities to all competing bidders ensuring fair grounds for competition where no single bidder influences the outcome of the process. Competition should urge bidders to offer more beneficial terms to the community. Service providers should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. 2. Effectiveness– the processes must be simple and streamlined to encourage communities to plan and implement sub-projects that will redound to their benefit rather 2Service providers referred to in these guidelines pertain to suppliers, contractors and consultants. 3 than creating layers of bureaucratic red tape that will delay service delivery. Procurement should also be carried out in the most cost effective manner as possible. 3. Economy – it should ensure that communities obtain the optimal benefit from projects through processes that promote value for money approaches. Thus, award of contracts shall be based on th...
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