SESSION OUTLINE:

1. KC-NCDDP Roll-Out Pre-Deployment Training for ACTsCommunity-Managed Implementation of Sub-ProjectsCommunity Procurement

2. SESSION OUTLINE: Objectives and Key Messages Legal Bases Rationale of Community Procurement with emphasis on Emergency Procurement Emergency Procurement methods, threshold and prior-review Roles of Community Volunteers, BSPMC, BAC, PT ACT/MCT, SRPMO/RPMO and other stakeholders Procedures and forms

3. OBJECTIVES: • At the end of the session, the participants will be able to: • To articulate the legal bases of Community Based Procurement; • To describe and explain the principles and key features of the Community Based Procurement • Procurement Policies, Process, Methods, Threshold and others • Functions of Community based Procurement in the RPMO, SRPMO, ACT and Community Volunteers

4. KEY MESSAGES: • Procurement guidelines and procedures effectively discussed to CVs will facilitate efficient implementation. • Community procurement is a venue where CVs can be part of good governance. • Community-Based Procurement Manual is designed to deter corruption thru people empowerment

5. Republic Act 9184 also known as the Government Procurement Reform Act (GPRA) Versus “The Community-Based Procurement” R.A. 9184 authorized the use of Community-Based Procurement manual of the KALAHI-CIDSS (KC) including all its provisions, process and procedures; (Legal basis: Section 4 of RA 9184) Section 4.2 of the Government Procurement Reform Act, R.A. 9184 provides that“any treaty or international or executive agreement affecting the subject matter of this Act to which the Government of the Philippines is a signatory shall be observed.”

6. Legal Provision Procurement in KC-NCDDP is governed by the conditions of the Loan Agreement to follow the World Bank/ADB/MCC Procurement guidelines. Following this State Policy, the Loan Agreement for KALAHI CIDSS NCDDP, provides that for community projects,the procurement method should follow community participation method as provided in the World Bank/ADB/MCC Procurement Guidelines.Thus, the procurement procedures provided for in this Community Procurement Manual, as acceptable to the Bank, shall be followed.

7. Per Loan Agreement between the Gov’t of the Philippines and the MCC/World Bank/ADB, it stipulates and requires the provision of a Community-Based Procurement Manual • For info: • The KALAHI CIDSS – NCDDP is the only Foreign Assisted Project (FAP) that has a community-based procurement manual.

8. Community Procurement What is Procurement? Procurementis a process of: • acquiring/purchasing goods, supplies, materials, equipment and rental of equipment; • contracting the entire or portion of the works to contractor.

9. Why Community Procurement? • Community-driven development (CDD) gives control of decisions and resources to community groups. • CDD treats people as assets and partners in the development process, building on their institutions and resources;

10. Why Community Procurement? • Procurement is also a way of empowering Communities through their participation and management of the procurement activities; hence, COMMUNITY PROCUREMENT… kalahi.dswd.gov.ph

11. Why is Procurement important? • Acquire the best QUALITYof items/works/service with the most ECONOMICAL cost or within the BUDGET;

12. Community Procurement Principles: • F -Fairness • E -Economy • E -Effectiveness • T - Transparency • A -Accountability

13. Principles of procurement T E E A F Fairness or Fair-dealing Competitive by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. PANTAY PANTAY WALANG PABORITISMO

14. Principles of procurement E E T A F Effectiveness It should be simple and applicable to the community. SIMPLE AT EPEKTIBO

15. Principles of procurement E E T A F 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. PINAKA MURA AT NASA TAMANG KALIDAD

16. Principles of procurement E E T A F Transparency Transactions during procurement process and implementation must be transparent. There should be openness and clarity on procurement policy and its delivery. All transactions must be known by the public. WALANG TINATAGO AT BUKAS PARA SA LAHAT

17. Principles of procurement E E T A F Accountability 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 BSPMC, when warranted by circumstances, investigated and held liable for their actions relative thereto. MAY RESPONSIBILIDAD AT PANANAGUTAN

18. Procurement Policies: • Procurement for the sub-project shall be the responsibility of the community through the BSPMC. • Transparency should be practiced in all stages of the procurement process. • The BSPMC shall use the Lowest Calculated and Responsive Bid/Quotationas the criterion for selection of suppliers and contractors. • The Project prescribes the procurement methods and procedures to be used.

19. Cont’n…Procurement Policies • Violations of the prescribed procurement policies, methods and procedures shall hold the participating communities liable for sanctions. • The Community-Based Procurement Manual shall be the basis of the government auditors, the World Bank, and other bodies exercising oversight functions in determining the legality, propriety and regularity of the community’s procurement activities. The World Bank/MCC Guidelines and the Loan Agreement take precedence over Local Guidelines, in case of conflict.

20. TYPES OF PROCUREMENT What do we procure in KALAHI CIDSS-NCDDP? GOODS and SERVICES -These include supplies, materials and purchase of equipment, trucking and hauling. Examples:constructionmaterials, seedlings/seeds (for prevention of erosion), hand tools and including office supplies for use by the BSPMC in its operations. It also refers to non-personal 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.

21. TYPES OF PROCUREMENT What do we procure in KALAHI CIDSS - NCDDP? WORKS and INFRASTRUCTURE PROJECTS– 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.

22. TYPES OF PROCUREMENT What do we procure in KALAHI CIDSS-NCDDP? CONSULTING SERVICES for TRAININGS on Livelihood and Employment -refer to services provided by external technical service providers or professional expertise that are beyond the capacity of the BSPMC or Local Government Unit (LGU) staff to undertake such as but not limited to feasibility studies; design; construction supervision; services for capability building types of community projects; and, special studies.

23. Modes of Procurement/Community Participation in Procurement • By Contract: Involves hiring one or more contractors or suppliers to provide the needed materials, equipment and labor to complete the workdepending on the availability and capacity of the community to manage and supervise these works. May be done through community bidding, shopping or direct contracting. • By Administration or Community Force Account: Community itself executing the worksince it has the materials, equipment, labor and capacity to perform the work. Has a sufficient labor (skilled and unskilled) to undertake all or portions of the work, this can be done through pakyaw contracts.

24. Procurement Methods: • For Goods and Services: • Community Shopping • Community Bidding • Community Direct Contracting • For Works or Infrastructure projects: • Community Shopping • Community Bidding • Community Direct Contracting • Community Force Account

25. Procurement Methods: • Community Shopping • is a procurement method based on comparing quotations from at least 3 suppliers/contractors to assure competitive prices. • Community Bidding • open to participation by any interested party and which consist of the following processes: advertisement, pre-bid conference, receipt & opening of bids, evaluation of bids, post-qualification and award of contract.

26. BARANGAY/COMMUNITY SUB-PROJECT ORGANIZATION STRUCTURE Barangay/Community Assembly Barangay Development Council Barangay Subproject Management Committee (BSPMC) Project Preparation Team (PPT) Audit & Inventory Team (AIT) Operation & Maintenance Committee (O & M) Brgy. Treasurer Secretary Bookkeeper Project Implementation Team (PIT) Monitoring & Inspection Team (MIT) Bids and Awards Committee (BAC) Procurement Team (PT) Technical Working Group (TWG) Observers

27. ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM C/Barangay Sub-Project Management Committee (BSPMC) • Provides overall management of the community based sub-projects and oversees sub-project implementation, monitoring, completion. • Serves as the community procuring entity (CPE), has the authority to make decisions related to procurement and ensures the quality of the goods and services based on the technical specifications. • They also verify that the award is made using the criterion of Lowest Calculated and Responsive Bid/Quotation and makes sure that transparency and fair competition is observed among qualified contractors and suppliers.

28. ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM C/Barangay Sub-Project Management Committee (BSPMC) Chairperson • Acts for and in behalf of the barangay as Procuring Entity; • Establishes the BAC and the Procurement Team and ensures that members give priority to their assignments until the requirements are completed; • Ensures that the procurement procedures and requirements are in accordance with the Community Based Procurement Manual (CBPM); • Acts on the recommendations of the BAC and approves or disapproves the award of contracts and purchase orders;

29. ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM C/Barangay Sub-Project Management Committee (BSPMC) Chairperson • Reviews and signs Resolution to Award (RTA) • Issues Notice of Award (NOA) and Notice to Proceed (NTP) • For contracts requiring prior review, requests for clearance from the ACT to sign contracts and coordinates any assistance from the TWG relevant to the procurement on hand; • Imposes the necessary administrative sanctions on errant members of the PT and BAC and bidders in accordance with appropriate rules and regulations.

30. ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM The Procurement Team • Responsible for preparing the procurement requirements for the sub-project and for providing support to the Bids and Awards Committee (BAC) in ensuring that the appropriate procurement procedures are applied in accordance with this manual. • In charge of activities required to facilitate acquisition of all supplies, materials, equipment, labor from suppliers and contractors for the sub-projects. • Shall be composed of at least three members who are elected by the Barangay Assembly (BA) during the social preparation stage of the project cycle.

31. ORGANIZATION & FUNCTIONS OF THE PROCUREMENT TEAM The Procurement Team • Minimum Qualifications: • PT member should have completed a minimum of elementary or grade school studies. • Should be able to read, write, perform the procurement functions and are committed to performing the assigned tasks. • Must be a person known for his/her integrity within the community.

32. Specific Functions of the PROCUREMENT TEAM • Prepares procurement documents • Act as Canvassers /issue Request for Quotation (RFQ) • Prepare and finalize Community Procurement Plan (CPP) & Community Employment Record Sheet (CERS) with the assistance of the AC • Assists in the presentation of CPP 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 Plan (ACPP)

33. The Bids and Awards Committee (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.

34. The Bids and Awards Committee (BAC) Composition of the BAC: • Barangay Treasurer • Committee Head of Project Preparation Team (PPT) • One member to be elected by BSPMC Executive Committee Note: The BSPMC Executive Committee is composed of the BSPMC chairperson and heads of teams under the BSPMC

35. Composition of the BAC • The following officials are disqualified to sit as member of the BAC: • Elected barangay officials who are members of the Barangay Development Council as the Local Government Code (RA 7160) specifies that their principal function involve the monitoring and evaluation of local programs and projects; and; • The C/BSPMC Chairperson, as approving authority for all transactions. • The Barangay Treasurer is disqualified to act as BAC Chairperson since he/she will certify to the fairness and soundness of the transactions.

36. The Bids and Awards Committee • Advertises and /or posts the invitation to bid • Conducts pre-procurement and pre-bid conferences • Determines eligibility of prospective bidders • Receives bids • Conducts the evaluation of bids with assistance of the TWG • 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.

37. The Bids and Awards Committee • 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

38. Other Stakeholders in Community Procurement • C/BSPMC Bookkeeper: • Responsible for keeping records of procurement and financial management transactions and documents for the sub-project from planning to implementation stage • Monitoring and Inspection Team (MIT): • Responsible for signing the purchase order (PO) • Receiving and storing of goods procured for the project, • Preparing stock cards or records and; • Turning over these items to the Project Implementation Team (PIT).

39. Other Stakeholders in Community Procurement • Barangay Treasurer: • Responsible for certifying the availability of funds and preparation of disbursement vouchers and checks.

40. Other Stakeholders in Community Procurement • The LGU COA Auditor, Barangay Captain, AC/MC, Technical Facilitator/LGU Engineer and the Barangay Audit and Inventory Committee Head shall be invited to sit as non-voting members. Other interested parties are also encouraged to observe the BAC proceedings. • A Technical Working Group (TWG) shall be formed. The TWG shall assist the BAC in bid evaluation.

41. Composition of the TWG • Area/Municipal Coordinator or Technical Facilitator • Municipal Engineer/Municipal Agricultural Officer/CENRO/MENRO (depends on the type of contract) • Supervising Sub-Project Engineer / Lead person / Foreman (if municipal engineer is not available) • Municipal Financial Analyst • Volunteer professionals in the community (if any)

42. Roles of ACT/MCT members: Area / Municipal Coordinator • Checks and ensures all documentations to be in order • Acts as TWG member • Signatory • Issues Clearance to Community Direct Contracting for Goods • Provides actions regarding red flags of abnormalities Technical Facilitator/ LGU Engineer • Assists and reviews the Community Procurement Plan including the Community Employment Record w/ PTs • Conducts Procurement Training • Attends pre-bid conference and bid opening • Checks and ensures all documentations to be in order • Acts as TWG member • Provides actions regarding red flags of abnormalities

43. Roles of ACT/MCT members: • Municipal Financial Analyst: • Provide Technical inputs in all procurement transaction • Check and ensure all documentations to be in order • Act as TWG member • Maintain copies of all procurement documents at ACT/MCT

44. Roles of ACT/MCT members: Community Empowerment Facilitator • The COMMUNITY EMPOWERMENT FACILITATOR is task to conduct 100% procurement review of all procurement of each BSPMC. • Monitor red flags of abnormalities in the Procurement Process, • Provide guidance to the C/BSPMC in the preparation of minutes of meetings to ensure that the contents are in order and filed accordingly,

45. Roles of ACT/MCT members: Community Empowerment Facilitator • Conduct contract review to ensure the completeness of documents • May also assist the PTs during the first issuance of canvass or ITQs/ITBs and; • Help the communities to organize pakyaw groups

46. Roles of RPMO/SRPMO: • Regional Community Infrastructure Specialist (RCIS) • Responsible for assisting the Community Procurement Officer (CPO) in providing technical assistance to the ACTs/MCTs through on-the job-training and coaching • Attend the pre-bid conferences and bid openings as observer and; • Consolidate all action taken regarding findings of red flags and abnormalities on procurement.

47. Roles of RPMO/SRPMO: • Regional Project Manager (RPM) • Responsible for providing action regarding red flags and abnormalities not resolved by the ACT, • Issue clearance for direct contracting and appropriate actions for requests of No Objection Letters for Variation/Change Orders and; • Procurement actions in accordance with the specified prior review thresholds found in Chapter 4.3.

48. Roles of RPMO/SRPMO: • Regional Procurement Officer (RPO) • Responsible in overseeing the overall procurement at the RPMO and ACTs in accordance with the NCDDP procurement guidelines. • The RPO provides technical assistance to the CPOs in: • Training ACTs, LGUs, community volunteers on community based procurement processes; • Providing Technical Assistance (TA) to Sub-Regional Project Management Teams (SRPMT), ACTs and LGUs in setting-up systems and processes for community-based procurement management and fiduciary control;

49. Roles of RPMO/SRPMO: • Regional Procurement Officer (RPO) • Directly exercising Quality Assurance (QA) and Quality Control (QC) responsibilities over community procurement actions and activities; and • Coordinating procurement actions required from the National Project Management Office (NPMO) and providing consolidated procurement reports.

50. Roles of RPMO/SRPMO: • Community Procurement Officer (CPO) • Acts as the focal person for procurement, technical assistance and monitoring at the Sub-regional Project Management Office SRPMO), • Responsible for ensuring that the implementation of community procurement systems in the region is compliant with the CBPM.