Ncddp-revised-cbpm-ver-april-15-20141.pdf

PREFACE

Department of Social Welfare and Development

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT (NCDDP)

COMMUNITY BASED PROCUREMENT MANUAL (RevisedApril2014)

TABLE OF CONTENTS Preface ................................................................................................................................. i Acronyms and Abbreviations............................................................................................ vii 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 3 3 3 4 4

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 ...................................

7 9 9 9 10 10 10 11 13 14

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. Preparation of Procurement Action Plan (PAP) ........................................................... 3.6. Finalization of the Community Procurement Plan ....................................................... 3.7. Planning for Emergency Procurement ..........................................................................

17 19 19 20 22 27 27 28

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..................................

29 31 31 32 33

CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES...................... 37 5.1. Community Shopping for Goods and Works ............................................................... 39 5.2. Community Direct Contracting for Goods and Works .................................................47 5.3. Community Repaet Order for Goods............................................................................55 5.4. Small Value Procurement for Goods and Works .........................................................57 5.5. Pakyaw Contracts......................................................................................................... 60 5.6. Community Bidding .......................................................................................................63 5.7. Qualification/Single Source and Individual Consultant Selection for Consulting Services ........................................................................................................................ 85 5.8. Emergency Procurement..............................................................................................89 CHAPTER SIX: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED GOODS AND SERVICES ....................................................................................................................107

6.1.Warranty...........................................................................................................................109 6.2. Amendment to Order ....................................................................................................110 6.3. Suspension of Delivery .................................................................................................112 6.4. Delays in Delivery and Liquidated Damages ...............................................................113 6.5. Incidental Services .......................................................................................................114 6.6. Spare Parts and Maintenance ......................................................................................114 6.7. Prices ............................................................................................................................115 6.8. Payments .....................................................................................................................115 6.9. Taxes, Duties, Insurance, Transportation ....................................................................116 6.10. Subcontracts and Assignments ...................................................................................116 6.11. Standards .....................................................................................................................117 6.12. Packaging .....................................................................................................................117 6.13. Inspection and Tests ....................................................................................................117 6.14. Contract Termination ....................................................................................................118 6.15. Blacklisting ....................................................................................................................120 CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED WORKS …………………..……………………………………………………………………….121 7.1.Subcontracting .................................................................................................................123 7.2. Contractor’s Program of Works ...................................................................................124 7.3. Inspection and Tests ....................................................................................................124 7.4.Dayworks .........................................................................................................................125 7.5. Measurement of Works ..................................................................................................125 7.6. Contractor’s Obligations and Responsibilities..............................................................125 7.7.Contract Price and Payment............................................................................................126 7.8. Variation Orders ...........................................................................................................128 7.9. Suspension of Work .......................................................................................................130 7.10. Contract Time Extension ..............................................................................................131 7.11. Delays in Work Completion and Liquidated Damages ................................................133 7.12. Contract Termination ....................................................................................................133 7.13. Contract Completion .....................................................................................................135 7.14. Warranty and Defects Liability Period ..........................................................................136 7.15. Settlement of Disputes .................................................................................................137 CHAPTER EIGHT: COMMUNITY BASED PROCUREMENT MONITORING....................139 8.1. Importance of Community Procurement Monitoring......................................................141 8.2. Community Procurement Compliance Monitoring ........................................................141 8.3. Project Billboard .............................................................................................................142 8.4. Community Procurement Performance Monitoring.......................................................143 8.5. Integrated Procurement Compliance and Performance Monitoring Report .................143 8.6. Procurement Fiduciary Assessment .............................................................................144 GLOSSARY OF TERMS ......................................................................................................145 PERIOD OF ACTION ON PROCUREMENT ACTIVITIES ..................................................155 ANNEXES: Sample Procurement Forms and Bid Documents .......................................159 ANNEX A: Procurement Planning Forms.........................................................................161 ANNEX B: Community Shopping and Negotiation Forms for Goods and Works........167 ANNEX C: Small Value Procurement Forms ..................................................................193 ANNEX D: Standard Bidding Documents for Goods and Works ..................................203 ANNEX E: Community Bidding Forms for Goods and Works ........................................283 ANNEX F: Procurement Monitoring Forms......................................................................315

ACRONYMS, ABBREVIATIONS CFA CIO COA CPO CPP CSO DAC DSWD DA DENR DEPED DOH DPWH DTI DV GOP GPRA IB IPCPMR IRR ITB KALAHI- CIDSS KC-NCDDP LCB LCC LCCQ LCRB LCRQ LGC LGU MAO ME MENRO MFA MIAC MIBF MIT NFCC NOA NOL NPMO NPMT NRM NRQ NTP OR PAP PCAB PCMR Phil-GEPS

Community Force Account Community Infrastructure Officer Commission on Audit Community Procurement Officer Community Procurement Plan Civil Society Organization Deputy Area Coordinator 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 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 saKahirapan-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/Canvass 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 Net Financial Contracting Capacity 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 Procurement Action Plan Philippine Contractors Accreditation Board Procurement Compliance Monitoring Report Philippine Government Electronic Procurement System

PIAC PIT PNS PO POW PPMR PPT PS PT RCIS RFQ RIE ROW RPM RPMO RPMT RTA SEC SOW SPA TA TAF TWG WB WD

Provinical 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 Regional Infrastructure Engineer Right of Way Regional Project Manager Regional Project Management Office Regional Project Management Team Resolution to Award Securities and Exchange Commission Scope of Work Special Power of Attorney Technical Assistance Technical Assistance Fund Technical Working Group World Bank Working Days

CHAPTER ONE: GENERAL PROVISIONS FOR COMMUNITY BASED PROCUREMENT -

Purpose Scope Coverage Application Principles in Community Driven Procurement

1.1.

Purpose

This Community Based Procurement Manual (CBPM) for the KALAHI-CIDDS1 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 thatmay 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 community officials 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 government rules and regulations to prevent confusion and ensure transparency among community officials. 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. 1.3. 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 1 KALAHI-CIDSS

Services.

stands for Kapit-Bisig Laban saKahirapan Comprehensive and Integrated Delivery of Social

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 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 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. 2. Worksor 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 refer to services provided by external technical service providers 2 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 biddersensuring 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 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.

2Service

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

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 the Lowest Calculated and Responsive Bid/Quotationfor community bidding and bids or quotations that are most advantageous to the community. The community’s ownership of the project encourages its responsible use, extends the project life, thereby maximizing its beneficial value to the community. 4. Transparency –procurement policies and procedures should be clear and should be open in its implementation.The community should be made aware of importantdecisions ensuring that the rationale behind such decisions and actions are understood. Financial management of project funds is open and shared with the entire community. Toward this end, posting of contract award and implementation information including payments to suppliers, contractors and local workers must be well disseminated. Bid opportunities shall be published in regional or provincial newspapers (for Community Bidding) and in conspicuous places within the Region, Province, Municipality or Barangay, in television or radio stations or any other possible means, as applicable, for all procurements. Other procurement related information shall be reported through the conduct of barangay assemblies or the posting of such reports in the KC-NCDDP designated billboards or bulletin boards within the barangay.The BAC shall also invite observers 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 C/BSPMC office/s. 5. Accountability – all roles and responsibilities as well as liabilities of community officials directly or indirectly involved in the procurement and implementation of contracts and private parties that deal with the community shall be made clear and legally identifiable. When warranted by circumstances, they shall be investigated and held liable for any unfavorable actions and decisions.Participatingcommunities 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-NCDDP. 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.Blacklisted and suspended suppliers and contractors by the KC-NCDDP and the Government of the Philippines (GOP) shall not be allowed to participate in project related procurement.

CHAPTER TWO: PROCUREMENT ORGANIZATION AND CAPACITY BUILDING - Organizational Structure at the Community Level - Barangay Sub-Project Management Committee (C/BSPMC) - Bids and Awards Committee (BAC) - Procurement Team - Technical Working Group - Observers - Functions and Responsibilities - Other Procurement Stakeholders - Capacity Building for Community Based Procurement Groups

2.1. Organizational Structure at the Community Level Barangay Assembly

Barangay Development Council

Barangay Representation Team (BRT)

Barangay Sub-Project Management Comm ittee (BSPMC)

Project Preparation Team (PPT)

Audit and Inventory Team (AIT)

Barangay Treasurer Secretary Bookkeeper

Project Implementation Team (PIT)

Bids and Aw ards Com m ittee (BAC)

Procurement Team (PT)

Operation and Maintenance Team(OMT)

Monitoring and Inspection Team (MIT)

Technical W orking Group

Observers

Figure 1: Barangay Sub-Project Organization Structure At the community level, the KC-NCDDP works with the Barangay Assembly (BA) in the planning and implementation of community based projects. For procurement related activities, the following are the important units involved: 2.2. Barangay Sub-Project Management Committee (C/BSPMC) The Barangay Sub-Project Management Committee (C/BSPMC) provides overall management of the community based sub-projects and oversees sub-project implementation, monitoring, completion. The C/BSPMC 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. It is in charge of the Procurement Team (PT). They make sure that the procurement processes used for sub-projects are in accordance with this Community Based Procurement Manual (CBPM). 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. 2.3. Bids and Awards Committee (BAC) Each C/BSPMC establishes a single Bids and Awards Committee (BAC) for its procurement. The C/BSPMC may use the existing BAC (from previous KALAHI CIDSS projects) or create a new BAC with the following composition: 1. Barangay Treasurer 2. Chairperson of the Barangay Sub-Project Preparation Committee 3. One member to be elected by C/BSPMC Executive Committee3.

The BSPMC executive committee is composed of the BSPMC chairperson and heads of teams under the BSPMC as shown in Figure 1. 3

The BAC members shall elect the BAC chairperson. The following officials are disqualified to sit as member of the BAC: (a) elected barangay officials who are members of the BDC as the Local Government Code (RA 7160) specifies that their principal function involve the monitoring and evaluation of local programs and projects; and (b) 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 . The simple majority (two members) of the BAC membersconstitutes a quorum, provided that the Chairperson is present in all meetings and deliberations. The Chairperson presides over the meetings. In his absence, any one of the two members present may preside. All BAC decisions are embodied in resolutions duly signed by at least amajority of the members. 2.4. Procurement Team The Procurement Team (PT) is 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. It is in charge of activities required to facilitate acquisition of all supplies, materials, equipment, labor from suppliers and contractors for the sub-projects. The Procurement Team 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. In order to qualify for selection, a PT member should have completed a minimum of elementary or grade school studies. They should be able to read, write, perform the procurement functions and are committed to performing the assigned tasks. Members who automatically meet the minimum qualifications must also be able to comply with all the documentary and other requirements specified in this manual and must be a person known for his/her integrity within the community. 2.5. Technical Working Group The BAC shall form a Technical Working Group (TWG) with the assistance of the Area Coordinating Team (ACT) to provide technical, financial or legal support in the procurement process. The TWG shall be created based onthe required expertise and nature of the procurement. The TWG shall assist the BAC in bid evaluation and shall be composed of the following: 1. Area Coordinator or Deputy Area Coordinator 2. Municipal Engineer/Municipal Agricultural Officer/CENRO/MENRO (depending on the type of contract) 3. Supervising Community Project Engineer/Leadman/Foreman (if municipal engineer is not available) 4. Municipal Financial Analyst 5. Volunteer professionals in the community with expertise related to the sub-project (if any) 2.6. Observers To enhance the transparency of the procurement process, the BAC shall invite any of the following to act as observers: the LGU Commission on Audit (COA) Auditor, Barangay Captain, local government officials, Area Coordinator, Deputy Area Coordinator, Regional Infrastructure Engineer, Barangay Audit and Inventory Committee Head, or where available representatives from Civil Society Organizations (CSOs). They shall sit as non-voting members and shall observe any or all stages of the procurement process. Other interested parties are also encouraged to observe as long as they have knowledge, experience or

expertise in procurement or in the subject matter of the contract to be bid and have no direct or indirect financial interest in the contract to be bid.The mere non-attendance ofobservers does not invalidatethe proceedings. The community through the Barangay Assembly or the municipality through the mayor may also designate community observers composed of volunteers who are not involved in any of the NCDDP related activities and whose function is to observe whether the procedures followed by the C/BSPMC, BAC, PT and TWG are in accordance with those discussed in this manual. The community observers shall be trained alongside the C/BSPMC, BAC and PT on procurement procedures to carry out their responsibilities. The Special Participatory Audit Team (SPAT) is an example of an innovative idea to mobilize community volunteers as observers by the municipality of Ajuy, Iloilo under the KC project. Communities are encouraged to adopt similar initiatives to mobilize community volunteers in observing procurement and other related activities to ensure transparency in project implementation. Where such community observers have been organized, they may provide their services or share their experience with other communities within the vicinity or municipality. 2.7. Functions and Responsibilities 2.7.1. C/BSPMC The Barangay Sub-Project Management Committee (C/BSPMC) has the following functions and responsibilities: i. Acts for and in behalf of the barangay as Procuring Entity; ii. Establishes the BAC and the Procurement Team and ensures that members give priority to their assignments until the requirements are completed; iii. Ensures that the procurement procedures and requirements are in accordance with the CBPM; iv. Acts on the recommendations of the BAC and approves or disapproves the award of contracts and purchase orders; v. Reviews and signs Resolution to Award (RTA) vi. Issues Notice of Award (NOA) and Notice to Proceed (NTP) vii. 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; viii. Imposes the necessary administrative sanctions on errant members of the PT and BAC and bidders in accordance with appropriate rules and regulations. 2.7.2. Bids and Awards Committee The Bids and Awards Committee (BAC) has the following functions and responsibilities: i. Advertises and /or posts the invitation to bid; ii. Conducts pre-procurement and pre-bid conferences; iii. Determines eligibility of prospective bidders; iv. Receives bids; v. Conducts the evaluation of bids with assistance of the TWG; vi. Undertakes the post-qualification proceedings; vii. Recommends the award of contract to C/BSPMC Chairperson; and viii. 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 2.7.3. Procurement Team

The Procurement Team (PT) has the following functions and responsibilities: i.

Acts as Secretariat and provides administrative support to the BAC (organize and attend meetings, assist in the drafting of resolutions, minutes); ii. Prepares and takes custody of procurement documents; iii. Prepares and delivers invitation to bid and requests for quotation iv. Prepares canvass forms and acts as canvassers by delivering canvass forms to suppliers; v. Prepares and finalizes the Community Procurement Plan (CPP) with the assistance of BAC; vi. Assists in the presentation of CPP during Barangay Assembly; vii. Receives and records bids/quotations, quotations; viii. Assists in updating the status of CPP; ix. Prepares and delivers purchase orders and contract documents; x. Performs such other related functions as may be necessary to assist in the procurement process. 2.7.4. Technical Working Group The Technical Working Group has the following functions and responsibilities: i.

Provides assistance to the BAC in terms of the technical, legal and other aspects of the procurement at hand; ii. Assists the BAC in the conduct of eligibility screening, evaluation of bids, post qualification and preparation of the accompanying reports for the C/BSPMC consideration and approval; iii. Assists the BAC and PT in drafting contracts and in preparing the resolution recommending award, with regard to the technical aspect, if necessary; iv. Performs such other functions as may be necessary 2.7.5. Observers The Observers have the following functions and responsibilities: i.

Observes and assesses the extent of compliance with the substantive and procedural requirements of this manual; ii. Where there are findings of substantive or procedural irregularities (red flags) in the procurement at hand, bring this to the attention of the Deputy Area Coordinator (DAC) who shall include the findings in the Procurement Compliance Monitoring Report to be submitted to the Regional/National Office for appropriate action. The Observer may request copies of any procurement related documents; iii. Signs as witness in the Records of Bid Opening, Abstract of Bids Post-Qualification Report and in the Resolution to Award. 2.7.6. Bidders An eligible bidder shall be responsible for having: i. Taken steps to carefully examine all of the bidding documents; ii. Acknowledged all conditions, local or otherwise, affecting the implementation of the contract; iii. Made an estimate of the facilities available and necessary requirements for the contract to be bid, if any; and iv. Complied with his responsibilities as stipulated in the instruction to bidders and

in the condition of contracts and relevant project regulations that may affect the contract in any way. 2.8. Other Procurement Stakeholders In addition to the key procurement related personnel discussed above, there are other stakeholder who are in one way or another involved in the community based procurement process. These individuals and their functions and responsibilities include the following: 2.8.1. Community Level 2.8.1.1. C/BSPMC Bookkeeper–responsible for keeping records of procurement and financial management transactions and documents for the sub-project from planning to implementation 2.8.1.2. Monitoring and Inspection Team (MIT)– responsible for signing the purchase order, receiving and storing goods procured for the project, preparing stock cards or records and turning over these items to the Project Implementation Team (PIT). 2.8.1.3. C/BSPMC Chairperson– as head of the community procuring entity, he is responsible for approving the Community Procurement Plan (CPP), contracts and purchase orders, reviewing and signing the Resolution to Award (RTA), Notice of Award (NOA), Notice to Proceed (NTP), request for clearance or No Objection Letters (NOL) from Area Coordinator (AC),Regional Project Management Team (RPMT), National Project Management Team (NPMT) and International Development Partners (such as the WB,ADB, AECID, others) to purchase goods and works in accordance with the specified prior review thresholds found in Chapter 4.3 prior to signing of purchase orders and notices, among others. 2.8.1.4. Barangay Treasurer – responsible for certifying to availability of funds and preparation of disbursement vouchers and checks. 2.8.1.5. Community Facilitator– responsible for providing guidance to the C/BSPMC in the preparation of minutes of meetings ensuring that the contents are in order and filed accordingly, monitoring red flag abnormalities in the procurement process, conducting contract review ensuring the completeness of documents. The CF may also assist the PTs during the first issuance of canvass or ITQs/ITBs and help organize pakyaw groups. 2.8.2. Municipal and Regional Level 2.8.2.1.Municipal Finance Analyst (MFA)– responsible for keeping and maintaining copies of procurement documents at Area Coordinating Team (ACT) Office,conducting fiduciary review based on the provisions of the Community Financial Management System and Community Based Procurement Manual. 2.8.2.2. Deputy Area Coordinator (DAC)– together with the municipal engineer, provides technical support and training on procurement and project implementation and is responsible for assisting the community in the preparation of the CPP, attending the pre-bid conference and the bid opening as and member of the TWG, providing technical support during bid evaluation and recommending action to be taken when there are findings on red flags and abnormalities

2.8.2.3. Area Coordinator (AC) – responsible for issuing clearance for the procurement of goods within the limit of his approving authority and endorsing the request for NOL to RPMO, NPMO, ADB/WB, attending the pre-bid conference and the bid opening as observer, and providing the appropriate action on findings regarding red flags and abnormalities. 2.8.2.4. Regional Community Infrastructure Specialist (RCIS)– Assists the Regional Procurement Officer (RPO) and Community Procurement Officers (CPO) in providing technical assistance to the ACTs/MCTs through but not limited to on-the jobtraining and coaching, attending the pre-bid conference and bid opening as observer and inputs on the preparation of technical specifications based on the program of works (POW) and plans. Responsible in ensuring that subproject implementation and procurement activities are coordinated. and consolidating all action taken regarding findings of red flags and abnormalities on procurement. 2.8.2.5. Regional Project Manager (RPM) –responsible for providing action regarding red flags and abnormalities not resolved by the ACT, issuing 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. 2.8.2.6. 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 (i) training ACTs, LGUs, community volunteers on community based procurement processes; (ii) 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; (iii) directly exercising Quality Assurance (QA) and Quality Control (QC) responsibilities over community procurement actions and activities; and (iv)coordinating procurement actions required from the National Project Management Office (NPMO) and providing consolidated procurement reports. 2.8.2.7. 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. 2.8.2.8. Community Infrastructure Officer (CIO) - acts as focal person for infrastructure at theSub-regional Project Management Office (SRPMO)office per region, responsible for reviewing first time works submitted by the municipalities and those requiring procurement action from the ACTs, developing standards, mechanisms and tools to improve the project implementing capability of project field engineers and communities. 2.9. Capacity Building for Community Based Procurement Groups Capacity building refers to the development of knowledge, skills and attitudes among community volunteers involved in the planning, management and implementation of the community sub-project including those involved in procurement related activities. Upon selection and appointment as representatives of community based procurement groups discussed above, the members of the C/BSPMC, BAC, and PT undergo the capacity building activities to perform their tasks more effectively. In addition, the C/BSPMC Chairperson,

Bookkeeper, Storekeeper, and Barangay Treasurer also attend the procurement training. The general scope of the capacity building activities for community procurement personnel include the following: 2.9.1. General Orientation on Community Based Procurement At the social preparation stage, the community is briefed on the KC-NCDDP through an orientation workshop. The C/BSPMC, BAC and PT members are required to undergo an orientation on the community based procurement process particularly on their individual roles, functions, responsibilities and expectations. The orientation shall explain the requirements for various stages of procurement to determine the level of commitment and specific training needs of each procurement group member. 2.9.2. Skills Training At the project identification, selection and planning stage, the procurement group members are exposed to the key processes and tools to identify, select, and design appropriate solutions to address community problems and are trained on the salient provisions of the CBPM. This is to enable members to plan and package community procurement requirements based on the identified community proposals for sub-projects proposed for KC-NCDDP funding. At the end of the training, procurement group members are expected to prepare the Community Procurement Plan (CPP) and the Procurement Action Plan (PAP) based on inputs from the feasibility study, project technical design, program of works and estimated budgets for contracts. 2.9.3. Job Coaching and Mentoring In the course of sub-project implementation and the conduct of actual procurement, the specific technical assistance requirements of the procurement groups are identified and where needed, practical on-the job training, job coaching and mentoring are provided to help them carry out their tasks. During this period, procurement team members are advised on how to resolve issues and challenges faced by the procurement at hand. Job coaching is generally provided during the updating and finalization of the CPP, the preparation of bidding documents, evaluation of bids, postqualification. The Deputy Area Coordinator (DAC) provides technical assistance to the community volunteers relative to matters relating to procurement and contract management with assistance from the Community Procurement Officer (CPO) and the Regional Community Infrastructure Specialist(RCIS) who also provides coaching and on-the-job training.

CHAPTER THREE: PROCUREMENT PLANNING FOR COMMUNITY BASED PROCUREMENTS - Community Empowerment Activity Cycle (CEAC) - Procurement Planning - Preparation of the Program of Works - Preparation of the Initial Community Procurement Plan - Preparation of Procurement Action Plan (PAP) - Finalization of the Community Procurement Plan

3.1.

Community Empowerment Activity Cycle (CEAC)

It is important to understand the Community Empowerment Activity Cycle (CEAC) and its role in the community development process in order to better situate the procurement planning process for community based procurements. The CEAC has four major stages: social preparation; project identification, selection and planning; project approval and project implementation. Figure 2 shows where the procurement related activities occur under this process. Figure 2. Procurement Related Activities under the CEAC Process

Transition

CPP Implemen tation Conduct of Actual Procurement

Finalization of CPP, Technical Specs, TOR, POW

Implementation of SP & O&M Plan & M&E Stage

Project Approval Stage

COMMUNITY EMPOWERMENT ACTIVITY CYCLE

Social Preparation Stage

Project Identification , Selection and Planning Stage

Organization of BSPMC, PT and BAC

Training of Procurement Volunteers Preparation of Initial CPP & PAP

It is at the social preparation stage where the C/BSPMC, PT and BAC are organized. At the project identification, selection and planning stage, the procurement related community volunteers will begin their training on the CBPM and will conduct preliminary planning related procurement activities. At the project approval stage, the Barangay Sub-Project Preparation Team(BSPPT) completes the detailed project proposal and budget, technical specifications, drawings and bill of materials (for infra community projects). After project approval, the cycle moves on to the implementation of sub-projects where the most important procurement activities take place. 3.2. Procurement Planning Procurement planning is important in community based projects as it enables the C/BSPMC to effectively manage and track procurement activities to ensure achievement of overall project goals and objectives. It involves identifying the sub-project procurement requirements, writing the technical specifications,determining the approved estimated budget, the schedule of milestone activities, and determining themethod of procurement to be used. Procurement planning begins during the Project Development Workshop and the training of community volunteers where the sub-project requirements such as the conduct of feasibility study and the preparation of the program of work (POW) are undertaken. The Community Procurement Plan (CPP) is prepared simultaneously and in close coordination with the POW.

Figure 3 provides an overview of the procurement planning process for community based subprojects. Figure 3. Community Procurement Planning Process Project Identification, Selection and Planning

Preparation of Program of Works

Preparation of Initial CPP

Pr epar ation of Technical Specifications Ter ms of Refer ence Final Pr ogr am of Wor k Items to be Pr ocur ed Number of Packages Pr ocur ement Methods Estimated Costs and Schedule of Funds Release Pr oposed Implementation Schedule

Preparation of PAP

Project Approval

Sub-Project Implementation

3.3.

Finalization of CPP

Conduct of Actual Procurement

Preparation of the Program of Works

The program of work (POW) provides detailed information on how the sub-project is to be implemented and includes among others the following: detailed estimates, bill of materials, construction schedule, manpower and equipment requirements, construction method, initial inventory of contractors and suppliers, local counterpart contribution plan, other requirements specific to the project at hand. It is based on a feasibility study to determine technical viability of the project and its conformance to land use and zoning guidelines and environmental and social safeguards prescribed by applicable laws. During the preparation of the POW, the Procurement Team works closely with the project preparation team (PPT) to identify items to be procured, quantities, estimated costs, market availability, delivery and implementation schedules which serve as inputs to the Community Procurement Plan (CPP). An important consideration in the preparation of the POW is the preparation of technical and design specifications, scope of work and terms of reference. Other activities that are conducted simultaneous with the preparation of the POW are discussed in the next section on the preparation of the Community Procurement Plan. 3.3.1. Technical Specifications, Scope of Work and Terms of Reference In the planning process for sub-projects, the initial Technical Specifications (for Procurement of Goods) and Scope of Works (for Infrastructure Projects) are prepared and finalized to consider inputs from the community and other stakeholders as well as project requirements. For goods, the term “technical specifications” refer to the physical description of the goods or services,as well as the requirements of the community in terms of the functional, performance,environmental interface and design standard requirements to be met by the goods to bemanufactured or supplied, or the services to be rendered. The technical

specifications mustinclude the testing parameters for goods, when such testing is required in the contract. i.

Functional description is the description of the functions for which the goods are to be utilized, for example, in the case of water pumps this may include pipe size, materials (stainless steel, galvanized or cast iron, etc.), length, water demand volume, method of displacement.

ii. Performance description refers to the manner that the goods are required to perform the functions expected of them, for example, in the case of water pumps, this may include horsepower or pressure capacity, flow rate, outlet pressure or inlet suction of head (feet or meters). iii. Environmental interface refers to the environment in which the required functions are performed at the desired level, for example in the case of water pumps, kinds and types of pump priming (centrifugal, twin screw, progressive cavity, electric submersible, buffer tank) . iv. Design refers to the technical design or drawing of the goods being procured. A designstandard is particularly useful in cases where the goods procured are specially manufacturedfor the community. In determining the technical specifications of thegoods it willprocure, the community mustconsider the objectives of the project or theprocurement at hand, and identify the standardsthat should be met by the goods in terms offunction, performance, environmental interfaceand/or design. In-house experts who are part of the TWG may be tapped to provide technical advice in the preparation of technical specifications. As a general rule, Philippine national standards (PNS), asspecified by the Bureau of Product Standards (BPS), shall be used in the preparation of technical specifications. This is to ensure that the goods to be procured have passed the quality, safety, reliability, testing and certification requirements specified for such products. Community planners must therefore include the appropriate PS Mark, where applicable, in the technical specifications of goods to be procured. The PS Mark reveals a manufacturer’s compliance to the requirements of a Philippine National Standard (PNS). 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 Department of Trade and Industry (DTI) requirements. It is important to note that the use of brand names is prohibited. This limits competition, fairness and the provision of other alternatives that may be of better quality and price.Specifications for the procurement of goods shall be based on relevant characteristics and/orperformance requirements. Hence, a generic description of the product or service shall beused. For works, the technical designs and specifications to be used must be in accordance with relevant national, municipal and local design codes and standards applicable to the project. Construction supervision, quality control, contract management, completion inspection, acceptance, operation and maintenance procedures shall be in accordance with the requirements of the projects. Most technical plans and specifications for KC-NCDDPsub-projectswere adopted from the standard plans of partner agencies implementing or mandated to perform such programs/services. This includes the Barangay Health Station (BHS) from the Department of Health (DOH), school buildings from the Department of Education (DepEd) and

structures, sections and profiles of rural roads and bridges from the Department of Public Works and Highways (DPWH). These specification were modified to suit the local conditions and requirement of the project. In setting the standards and technical specifications for works, the following should be considered: i.

Standards and technical specifications quoted in the bidding documents should promote the broadest possible competition, while assuring the critical performance or otherrequirements for the works under procurement;

ii. As far as possible, the community should specify prevailing local standards for rural infrastructure prescribed by local government units with which the equipment ormaterials or workmanship should comply. The PT may also refer to the standards developed in the first Kalahi CIDSS project. For short term services or consulting services, the Terms of Reference for the service required should specify the type of required expertise, qualifications, scope of work, expected output or deliverable and schedule and duration of the engagement. 3.4.

Preparation of the Initial Community Procurement Plan

Upon completion of the program of work, community based procurement planning commences through the preparation of the initial Community Procurement Plan (CPP). The initial CPP summarizes the project requirements based on identified needs and available alternative solutions for the purpose of procurement. Proper planning ensures that only the appropriate goods and infrastructure projects have been included in the approved CPP. This is done through the identification of required materials and work items based on the detailed estimates, bill of materials, proposed construction method and work schedule. This information (CBPM Form A-1) will assist in the determination of the appropriate number of packages and procurement methods to be used for the proposed sub-project. Among the many considerations in the preparation of the CCP are the following: 3.4.1. Market Survey for Goods, Works and Consulting Services After the review of the items to be procured, an assessment of the resources within the barangay or municipality should be conducted to find out which items are available in the local market. For goods, the Procurement Team can visit the municipality’s commercial center to check for possible suppliers and prevailing prices. The survey should also check the availability of goods, equipment and construction materials with the appropriate PS mark that meet the required technical specifications. Please refer to CBPM Form A-3 for goods and services and Form A-4 for works. If there are no available suppliers within the municipality, the PT may inquire from other possible sources in the area near the municipality or the province. They can also refer to the ACT (Area Coordinating Team) and RPMT (Regional Project Management Team) inventory of resource institutions, technical assistance (TA) providers and suppliers for a possible list of suppliers and the prevailing prices. The data can be used in the preparation of the project budget and the selection procurement methods. For works, the PT can conduct an inventory of possible contractors and construction materials suppliers as well as skills of construction workers available in the community, municipality or province. The availability and number of skilled and unskilled construction

workers in the community can help determine the types of work that can be done through pakyaw contracts. For consulting services, the Deputy Area Coordinator shall conduct an inventory of potential service providers (individuals or firms) within the municipality or the province. The list shall be classified according to the area of expertise (e.g. surveying, engineering design construction supervision, among others, and/or its combination of services). This shall be supported by company profile for firms, information sheet or curriculum vitae for individual firms, including track record or work experiences which shall be duly validated. The DAC shall also conduct research on the prevailing professional fees for the required service in coordination with professional associations (e.g. Philippine Institute of Civil Engineers (PICE) in the municipality, province or region. The list of potential consultants shall be consolidated at the RPMO and shall serve as a data base for service providers in the area. Service providers who are personnel of construction firms interested in bidding or offering quotations for community sub-projects shall not be engaged in the preparation of detailed designs or cost estimates to avoid conflict of interest during the procurement process. The list of service providers shall be made available to communities or municipalities requiring technical assistance. 3.4.2. Preparation of Procurement Packages A procurement package 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. There are generally two forms of procurement packages: (a) grouping of requirements into a category (goods, works or services) for the purpose of procuring them under one contract; (b) grouping of several procurement categories (e.g. supply and install contracts) when this is considered most practical.

3.4.2.1. Examples of Procurement Packages As a general rule, goods, supplies or construction and other types of similar materials can be grouped and purchased from possible suppliers in the locality through the inventory of suppliers obtained during the market survey. General works or specific items of work can be performed or implemented by a single contractor or labor requirements can be done through pakyaw. Case 1:Grouping of Requirements in a Category (Goods, Works, Services) Under a Single Contract or Several Contracts Example: For the following list of construction materials, depending on the availability of suppliers in the locality, this can be grouped or package into only one, or more procurement packages (where suppliers can supply all the materials needed). Particulars Selected Filling Materials Aggregate Base Coarse Sand Boulders Portland Cement 16 mm diameter RSB x 6M 10 mm diameter RSB x 6M 2"x3"x10' Coco Lumber 1/4" thick Ordinary Plywood 3 inches CWN

Quantity 50 40 30 20 100 110 150 500 12 15

Unit cubic meter cubic meter cubic meter cubic meter bags pieces pieces board foot pieces kilos

Possible Packaging: Package 1: (for similar or related types of materials such as aggregates available through a local gravel and sand supplier) Selected Filling Materials Aggregate Base Coarse Sand Boulders

50 40 30 20

cubic cubic cubic cubic

meter meter meter meter

Package 2: (for different types of materials available from one supplier)

Portland Cement 16 mm diameter RSB x 6M 10 mm diameter RSB x 6M 1/4" thick Ordinary Plywood 3 inches CWN

100 110 150 12 15

bags pieces pieces pieces kilos

Package 3: (for one material available from only one supplier) 2"x3"x10' Coco Lumber

500

Bd. Ft.

The number of procurement packages may be determined by the number of available suppliers in the locality. Contract packaging should be applied to facilitate the procurement of goods. The Procurement Team is advised that contract splitting is not allowed. Under no circumstances should the community combine items into one package to favor only one supplier. Case 2:For Works, grouping of Requirements into Items of Work that can be Done Through Community Bidding or Pakyaw Contracts Example: For a road project with common work items such as: Item 100 (Clearing and Grubbing), Item 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) packaging can be as follows: Possible Packaging Option 1: (one package since all items can be undertaken by one contractor) Item Item Item Item Item Item

105 200 201 311 500 505

Sub-grade Preparation Aggregate Sub-Base Aggregate Base Coarse 300 Linear Meter Item 311 (PCCP) RCPC (0.61M diameter) Grouted Riprap

Option 2: (twopackages since some items can be done by one contractor and others through pakyaw contracts) Package 1: (this can be done through Community Bidding or Shopping by one contractor depending on the package threshold since the items of work are mechanized)

Item 105 Item 200 Item 201

Sub-grade Preparation Aggregate Sub-Base Aggregate Base Coarse

Package 2: or more (this can be done through Pakyaw Contracts since materials and labor are available in the community by one or two pakyaw groups) Item 311 Item 500 Item 505

300 Linear Meter (PCCP) RCPC (0.61M diameter) Grouted Riprap

In this case, the use of two procurement methods is not considered contract splitting since the decision was based on the availability of local materials and the capacity of local laborers to implement the project. Moreover, majority of the community can participate in the implementation and procurement process thus generating employment for local labor. Case 3: G rouping of Several Procurement Categories When this is Considered Most Practical Example: For a Level I Water Supply system that involves deep well drilling (works), supply of submersible pump and motor (goods), supply of concrete water tank (works), construction of pump house (works) packaging can be as follows: Particulars Deep Well Drilling and installation of pipe casing Supply of Submersible Pump and Motor Supply of concrete water tank Construction of pump house

Quantity

Unit

400

feet

1 1 1

unit unit unit

Option 1: (one package since all items can be undertaken by one contractor) Option2: (two or more packages since some items can be done by one or more contractors or through pakyaw contracts and equipment can be provided by a supplier) Package 1: (this can be done through Community Bidding or Shopping by a drilling contractor depending on the package threshold since the items of work are mechanized) Particulars Deep Well Drilling and installation of pipe casing

Quantity

Unit

400

feet

Package 2: (this can be done through Community Bidding or Shopping by an equipment supplier depending on the package threshold since the items of work are mechanized) Particulars Supply of Submersible Pump and Motor

Quantity 1

Unit unit

Package 3: or more (this can be done through Pakyaw Contracts since materials and labor are available in the community by one or two pakyaw groups) Particulars Supply of concrete water tank Construction of pump house

Quantity 1 1

Unit unit unit

The above examples are only a few of the options available to the Procurement Team in the preparation of the CPP and the PAP. The Procurement Team should also consider the approved procurement thresholds, and schedules for the release of grant funds and project implementation in the preparation of planned procurement packages. 3.4.2.2. Splitting of Contracts The project does not allow splitting of goods and items of works for the purpose of avoiding the approved procurement thresholds and prior review requirements. Splitting is defined as the act of dividing or breaking up contracts into smaller quantities and amounts, or dividing contract implementation into sub-contracts in order to evade or circumvent the procurement regulations specially the necessity for public bidding and the requirements for alternative methods of procurement. Contract splitting may occur if the procurement requirements are divided into several contract packages using shopping or other alternative methods of procurement when it is clearly more efficient to use Community Bidding in order to avoid the “No-Objection-Letter” (NOL) requirement from the National Project Management Office (NPMO) or the funding donors (World Bank, ADB, others) or to favor certain suppliers or contractors. Members of the C/BSPMC, the Procurement Team or colluding bidders, who are found guilty of contract splitting, shall be held liable and appropriate sanctions shall be imposed that may include disallowance of fund grants, suspension of fund releases or withdrawal of the community sub-project notwithstanding the filing of criminal or civil cases in accordance with the provisions of the Anti-Graft and Corrupt Practices Act (RA 3019). 3.4.3. Identification of Appropriate Procurement Methods Upon determination of the procurement packages, the appropriate methods of procurement need to be identified. This can also been done simultaneously with the preparation of the procurement packages and the preparation of the project budget. The detailed discussion on the different modes of community based procurement is found in Chapter Four. 3.4.4. Estimated Costs and Schedules of Fund Release Once the items to be procured and the packages have been determined, the unit cost per item of materials or work can be provided based on the survey of prevailing market prices in order to arrive at the cost per package and total project cost. The cost per package can also provide information on applicable procurement methods to be used and should be identified accordingly. The total project cost and the cost for each package will be the basis for determining the amount and percent of grant funds that will be requested for release for the project. The normal allocation of tranches for community based subprojects is as follows: 50% for the first release; 40% for the second release and 10% for the final release. Communities may request for a different schedule of fund releases depending on project need. For community projects requiring larger initial investments, as required in the sub-project schedule, the community may request an allocation of 80%

under the open tranche for the first release, 10% for the second and final release.4 Another consideration in the preparation of procurement packages and estimated costs is the availability of the local counterpart contribution (LCC). Some communities will be able to provide funds coming either from the municipality or the community itself to augment and support sub-project costs. This should be clearly indicated in the designated columns for the schedule of LCC release. The schedule for the release of both grant and LCC funds should also be taken into account when the estimated costs and proc urement packages are prepared. Other considerations in determining the estimated project cost should include the following: cost or market price of the goods or works itself, freight, insurance as may be applicable and other incidental expenses, quantities, supply of spare parts and/or maintenance services (for equipment), applicable taxes, cost of securing all types of securities other than cash, among others. 3.4.5. Project Implementation Schedule The project implementation schedule is a major consideration in preparing the CPP as it serves as a guide in determining the applicable tranche to be requested from grant funds and from local counterpart contribution. Since most sub-projects are expected to be completed within a period of 2-6 months, realistic projections have to be kept in mind in preparing the procurement packages and time schedules. Weighted percentage of possible work items to be completed per month has to be reflected in the Gantt chart to determine the required physical accomplishments needed in the requests for succeeding tranches. It is important for community planners and the PT to determine the activities and corresponding package/s needed to provide significant accomplishment in the first tranche as the minimum requirement for the second tranche is 30% of sub-project physical accomplishment. The total amount for funding of contract packages should be consistent with the implementation schedule. 3.5.

Preparation of Procurement Action Plan (PAP)

The procurement action plan (PAP) is a document that is prepared to indicate the timelines to complete procurement related activities or milestones and responsible volunteers and project staff. The important milestones include: preparation and finalization of the CPP, preparation of procurement documents and minutes of meetings, conduct of pre-procurement conference, bid opening and evaluation and post qualification for community bidding, serving, opening and evaluation of canvass, for community shopping and community direct contracting, issuance of no-objection letter (NOL), preparation and issuance of notice to proceed or purchase order, delivery and inspection of goods and works. Please refer to CBPM Form A-2. This is the major indicator of readiness for the Procurement Team and the community for undertaking project related procurement. Close coordination is needed between the PT and the Project Implementation Team (PIT) to discuss the different items that need to be procured, the recommended procurement packages, the technical specifications and financial requirements. Both the PAP and CPP will serve as basis for procurement monitoring and for the conduct and scheduling of post review activities.Schedules should be observed by the community volunteers and project staff based on the procurement activity duration specified in thismanual.Responsible volunteers and project staff who will participate in and undertake the activity shallbe indicated in the plan. This is to observe the principle of accountability. During ex-post fiduciary review, the names identified in the PAP should match those found in the For emergency procurement in SPs due to disaster/calamity sub-projects, the first tranche may be up to 90%.

4

appropriate procurement documents, otherwise, the PT has to provide justification for the deviations. The venue of meetings and places where procurement activities are to be conducted must be specific. Names and addresses of potential suppliers and contractors are to be submitted in the PAP as such inventory needs to be done during the identification stage for proper guidance. This is to ensure transparency in the project. The initial costs to undertake procurement such as transportation expenses, reproduction costs, are chargeable to administrative cost and must also be indicated under resource management for monitoring and accounting to ensure economy and effectiveness. Posting of the PAP at the C/BSPMC office is required. This will guide the volunteers on the activities to be performed on the given dates. 3.6. Finalization of the Community Procurement Plan After the initial CPP and the PAP are prepared, these are presented to the barangay assembly and the Technical Working Group for final review. Suggestions on possible suppliers and contractors, improvements on project design and technical requirements, commitments on local counterpart funds are obtained and issues related to the project are resolved during this period. The CPP is then revised, updated and finalized and forms part of the documents attached to the community’s final community project proposal for submission to the municipal inter-barangay forum (MIBF). The final CCP will be used as basis for the preparation of cash flow requirements, release of funds and project implementation. 3.7. Planning for Emergency Procurement 5 The use of simplified procedures for disaster response is triggered by the declaration of a National State of Calamity by the President or the declaration of a Municipal State of Calamity by the Sanggunian.The decision to use the simplified procedures is made jointly by the NPMO and relevant RPMOs based on the magnitude of the disaster assessed by the National Disaster Risk Reduction Management Council (NDRRMC); a post disaster needs assessment (PDNA);and other and other available resources for recovery programs. The NPMO and the RPMO shall determine the current stage at which the affected communities are situated in the KC-NCDDP process. At the social preparation stage, a Post Disaster Needs Assessment (PDNA) shall be conducted by the ACT within the affected communitiestoassess relief needs. The collected information shall be validated with the municipal staff where a final list of target areas for implementation shall be agreed upon. Community volunteers comprising the C/BSPMC, PT and BAC shall be organized and where needed trained. The same procedures for the preparation of the Program of Works, CPP and PAP shall be followed. The Community Procurement Plan shall identify the items to be procured (goods, services or works); determine items available within the community or potential sources outside the community; list down all possible suppliers or contractors, decide on the method of procurement to be used. The CPP shall be presented to the Barangay Assembly for confirmation. A Municipal Technical Review (MTR) Team shall replace the competitive process that takes place during the regular NCDDP operations to ensure the technical soundness of the proposals received from selected communities and verify that they address the needs identified during the PDNA. Upon the approval of the Program of Works and the revision of the CPP, the Procurement Team shall submit the same to the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards Committee (BAC) for review and validation.

Please refer to NC DDP Disaster Response Operations Manual

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CHAPTER FOUR: COMMUNITY BASED PROCUREMENT METHODS AND SUBPROJECTS - Community Participation in Procurement - Community Based Procurement Methods - Prior Review Thresholdsfor CommunityBased Procurement Methods - Possible Types of Community Projects Requiring Procurement

4.1. Community Participation in Procurement The KC-NCDDP employs two project implementation models. These models vary depending on the availability of local suppliers, contractors and labor force as well as the capacity of C/BSPMC to manage and supervise the work or contract at hand. If the community does not have the requisite technical staff and workers to undertake the required tasks, it would be more economical if the project were executed by contract either through community bidding, shopping or direct contracting with a qualified contractor or supplier. However, if the community has the technical personnel and laborers who are capable and competent enough to undertake the design of the project as well as implement the project, then the community can administer or execute the project by force account or through pakyaw contracts. The first model, implementation through contracts, involves hiring one or more contractors or suppliers to provide the requisite materials, equipment and labor to complete the work depending on the availability and capacity of the community to manage and supervise these works. This may be done through community bidding, shopping or direct contracting and follows a uniform set of conditions and procedures discussed in this manual. The second model, implementation by administration or force account, refers to the community itself executing the work since it has the materials, equipment, labor and capacity to perform the work. Sub-projects may be undertaken by administration where there is conclusive evidence that greater economy and efficiency would be achieved through this arrangement. In cases where there is sufficient labor (skilled and unskilled) to undertake all or portions of the work, this can be done through pakyaw contracts. The decision to complete the project through one or a combination of these implementation models is done at the planning and procurement packaging stages of the CPP. Community participation in procurement refers to the activities that the community undertakes to procure project related requirements through one or a combination of the modes of implementation, including the disbursement of grant funds and local counterpart contribution, preparation of monitoring reports and full reporting of activities to the community. In the previous manual, this was referred to as community force account (CFA). For purposes of this manual and to clarify the terminologies used in community based procurement, this and other procurement related activities are now referred to as community participation in procurement6. It may also refer to the different methods of community based procurement. 4.2. Community Based Procurement Methods The following are the generally acceptable methods of procurement for community based subprojects: 1. Community Shopping 2. Community Bidding 3. Community Direct Contracting 4. Repeat Order 5. Small Value Procurement 5.1. Off-the Shelf Goods 5.2. Short Term Services 5.3. Small Works 6. Single Source Selection or Individual Consultant Recuitment for Consulting Services To be consistent with RA 9184 IRR and ADB and WB Guidelines

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7. Pakyaw Contract 8. Emergency Procurements 4.3. Thresholds for the Use of Community-Based Procurement Methods and Prior Review Requirements The threshold amount for procurement methods sets the allowable value of the contract for which the method is to be used. Prior review refers to evaluation conducted by staff within the project implementation hierarchy to ensure that the requirements for the use of the procurement method are met. It also defines the extent and depth of supervision, post review and audits to be carried out for the procurement at hand.The threshold amount for prior review identifies the limit set by the KC-NCDDP for the review and evaluation of procurement contracts. This is conducted by higher authorities, in this case, the Regional Project Management Office (RPMO), the National Project Management Office (NPMO) and the Asian Development Bank (ADB) and World Bank (WB). Contracts that need to undergo prior review require the issuance of a No Objection Letter (NOL) indicating that the reviewing authority has examined said contract, found it in order and is not objecting to its provisions or award. For purposes of this manual, the following thresholds for the use of community based procurement methods and the prior review requirements are provided in Table 1. Table 1. Procurement Methods and Prior Review Thresholds for Community Based Procurement Procurement Method

Threshold Amount (P)

Community Bidding - Works 2.0 M & above - Goods 1.0 M & above Community Shopping - Works Below 2.0 M - Goods Below 1.0 M Community Direct Contracting Direct Contracting - Works None - Goods None Direct Contracting due to Two Failed Biddings - Works None - Goods None Direct Contractingdue to Emergency - Works None - Goods None Agency-to-Agency Arrangements - Works None - Goods None Direct Contracting due to Contract Termination - Works None - Goods None Direct Contracting for Adjacent and Contiguous Projects - Works None Repeat Order - Goods 50% of previous contract Small Value Procurement

Prior/Post Review Requirement Threshold (P) RPMO NPMO > 500 K but <2.0 M > 500 K but <2.0 M

2.0 M above 2.0 M & above

≥ 500 K but < 2.0 M ≥ 500 K but <2.0 M all all

Post Post

all all

Post

2.0M 2.0M

Post Post

1.0M 1.0M

Post Post

all all

Post Post

all all

Post

1.Off-the-Shelf (Goods) 10,000.00 2.Short Term services 10,000.00 3.Small Works 10,000.00 Qualification/Single Source /Individual Consultant Selection for Consulting Services Single Source/Individual None Below 1.0 M Consultant Selection Pakyaw Contract - Works (labor only) 100,000.00 - Works (labor with local 300,000.00 7materials) Variation Order for Works Up to 20% of original All contract Aggregated contracts 2M to 3.0 M

Above 1.0 M

above 3.0M

In addition to the contracts above the specified thresholds, ADB/WB prior review requirement shall cover the first three contracts for the first year sub-projects in each of the three new Regions (I and III). This shall be adjusted in the succeeding years based on the findings of the post review and the assessment of performance and risk analysis for the whole of Component 1. Aggregated contracts 8 refer to one or more on-going KC-NCDDP contracts with a single contractor/supplier regardless of KALAHI-CIDSS area. Prior-review threshold for aggregated contracts consider all contracts with below 50% physical accomplishment or delivery. Completed contracts will not be included in the threshold of aggregated contracts. Contractors/suppliers with aggregated contracts should have completed at least fifty (50%) percent of all on-going contracts and should have performed well in these contracts with no slippages due to poor performance or reasons by contractor/supplier negligencebefore any new contracts are awarded to them. In cases where there are more than one new contracts in addition to the ongoing contracts that reached the aggregated threshold,the higher/est contract costshall be subject to prior review as specified in Table 1 to ensure that they continue to have the capacity to deliver or perform the procurement at hand. A list/table of all ongoing contracts indicating the contract costs and percentage of physical accomplishment will be submitted as part of the documents for review by the ACT. 4.4. Possible Types of Community Projects Requiring Procurement The KC-NCDDP provides two types of grants to participating communities. Planning grants cover costs associated with community mobilization, preparation of proposals by community volunteers, project operations, maintenance, and community-based monitoring. The Technical Assistance Fund (TAF) is a fund under planning grants which is provided to support the community in the preparation and implementation of sub-projects. Investment grants provide funding assistance for selected community sub-project proposals. KC-NCDDP supports those that: are not on the negative list; have been prioritized and approved by the community through a barangay assembly; have a clear long-term strategy, e.g., operations and maintenance plan, business plan, etc.; will have buy-in from the community, as shown by the amount of community contribution/counterpart; and are technically and economically viable. The KC-NCDDP has adopted an “open menu” that allows the community to propose almost any type of community sub-project that can respond to their priority needs. Under the “open menu” scheme, communities can request funds to construct infrastructure, such as roads, 7

e.g. boulders, sand , gravel, lumber scafoldings and others w hich are indigenous in the area and can be provided by the community pakyaw group 8 Prior review for aggregated contracts aims to determine the capacity of contractor/supplier to perform the w orks or deliver t he goods/services required.

bridges, water supply systems, and sanitation facilities. The community can also propose livelihood support sub-projects, such as, agricultural production or funding for small-scale production equipment, and additional capital for community enterprises. For purposes of procurement, the following are some examples of community projects under the KC-NCDDP identified by sub-project category: 4.4.1. Construction, Repair, Improvement, Upgrading of Small Scale Infrastructure 1. 2. 3. 4. 5. 6. 7.

Acces/Barangay roads; Bridges (footbridge, reinforced concrete, cable foot, rural road bridge); Pathways for pedestrians; School buildings/classrooms for basic education (elementary and high school); Day care centers; Barangay Health Center; Domestic water supply systems; a. Level I b. Level II c. Level III 8. Rural electrification (on-grid, off-grid, renewable energy); 9. Small-scale communal irrigation; 10. Public sanitation facilities (toilets); 11. Flood control facilities 4.4.2. Environmental Protection and Conservation i. ii. iii. iv. v.

Seawall; Slope protection; River control; Drainage; Waste/sanitation management facility

4.4.3. Enterprise or Common Service Facilities i.

Post harvest facilities (equipment for production, harvest, drying, processing, storage); ii. Processing facilities (meat, vegetables, etc.); iii. Corn or rice mill; iv. Fabrication works 4.4.4. Disaster Recovery Operations9 The list shall be guided by an open menu to be determined in the course of project implementation and a limited number of activities not allowed under regular KCNCDDP process shall be permitted. i. Repair of rural and local roads; ii. Backfill, reshaping and landscaping of areas affected by erosion; iii. Repair of riverbank protection systems and earth-fill dykes up to 5m height if supervised by a qualified engineer; iv. Repair/reconstruction of small bridges (up to 15m); v. Construction of temporary bypass roads up to 500 m length, if not located in

Please refer to NC DDP Disaster Response Operations Manual

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sensitive habitats and land acquisition follows the provisions of the main ESMF and bypasses are completely removed and the alignment restored to its original conditions once the need for their service has expired; vi. Repair / reconstruction of communal irrigation and water supply systems and of facilities that they have been completed with project funding; vii. Collection and removal of technogenic debris (building parts, mixed waste, timber) as uprooted trees and plan debris from public infrastructure, public spaces and agricultural areas, and its deposition in pre-existing waste management facilities that are operating under national licensing and regulations and comply with normal practice in the country; viii. Repair of public buildings (including government offices, meeting hall and places of religious worship) and infrastructure (e.g. transmission lines, street lighting, traffic signs, bus stops); ix. Collection and removal of earth, mud and plant debris from public infrastructure and spaces as well as agricultural areas and its deposition, landscaping and greening at appropriate locations. xi. Construction/reconstruction of bunk houses or damaged homes of the most affected households. xii. Other similar undertaking such as temporary setting up of school, health and water facilities for access to basic needs and services of affected population including temporary housing for vulnerable population such as children, lactating and pregnant women, elderly and persons with disabilities (PWD). 4.4.5. Consulting services i.

Consultancy services for the following: survey works, preparation of technical plans, specifications, detailed cost estimates, work programs, required pay items, design and shop drawings; feasibility studies for enterprise development subprojects and other specialtechnical proposals; supervision of critical sub-projects (i.e., bridges, water system, road construction andrehabilitations) beyond the LGU and/or project capacity, as well as implementation of appropriate quality control procedures; preparation and/or training on operations and management plans for revenue-generating sub-projects or those with cost recovery schemes.

4.4.6. Negative List The negative list includes projects that are not eligible for funding and include the following: i. Acquisition or purchase of land; ii. Construction or repair of government offices, meeting halls and places of worship; iii. Environmentally hazardous materials, such as, explosives, asbestos and other potentially dangerous materials; iv. Fishing boats (beyond the weight limit set by the Bureau of Fisheries and Aquatic Resources (BFAR);) v. Road construction into protected areas; vi. Activities that have alternative prior sources of committed funding; vii. Recurrent government expenditures such as remuneration of government employees; viii. Micro-credit and livelihood activities which involve on-lending of project funds; ix. Activities for fiesta and other religious and cultural activities; x. International travel; xi. Maintenance and operation of infrastructure built from project funds; xii. Assistance to, or training of, the military, police, national guard, or other quasi-

military organization or unit; xiii. Salaried activities that employ children below the age of 16 years; xiv. Activities that unfairly exploit women or men at any age; xv. To pay for 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; xvi. Any activity or funds relating to trafficking of person/s; xvii. 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; xviii. Other activities with environmental or social impact as governed by ADB/WB safeguard environmental or social impact as governed by ADB/WB safeguard policies.

CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES -

Community Shopping Community Direct Contracting Community Repeat Order Small Value Procurement Pakyaw Contracts Community Bidding Single Source or Individual Consultant Selection for Consulting Services - Emergency Procurement

This chapter explains the procedures for the procurement of goods,works and consulting services using the different procurement methods. The discussions shall be based on the most commonly used methods under the KC NCDDP. 5.1. Community Shopping for Goods and Works Community Shopping is a method of procurement where the community simply requests for the submission of price quotations from a minimum of three suppliers for readily available off-the-shelf goods or standard specification commodities of small value or a minimum of three contractors for simple works of small value with known qualifications. Community Shopping is expected to be the most frequently used among the different methods. The price quotations are compared to assure competitive prices. Requests for quotations shall indicate the description and quantity of the goods or specifications of works, as well as the desired delivery (or completion) time and place. Quotations may be submitted in the prescribed CBPM form. The evaluation of quotations shall follow the same principles as community bidding. The terms of the accepted offer shall be incorporated in a purchase order or brief contract. For Community Shopping, suppliers and contractors from whom goods and works are procured should be in good standing, and have not committed any breach of contract (e.g., short deliveries, unreasonable delays in delivery of goods, delivery of defective goods, or similar acts) in previous transactions with the community or municipality. Community shopping involves the following procedures: 5.1.1. Identification of Items for Community Shopping The Procurement Team identifies the items to be procured through Community Shopping from the approved Community Procurement Plan (CPP). This is then submitted to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards Committee (BAC) for review and validation. 5.1.2. Preparation of the Request for Quotations (RFQ) Upon approval by the C/BSPMC of the items to be procured, the PT prepares the following documents to be used: For Goods and Services, i. ii. iii. iv. v.

Request for Quotation (RFQ)/Canvass Form Acknowledgement Receipt Abstract of Quotations/Canvass Purchase Order Technical Specifications

For Works, i. ii. iii. iv. v. vi.

Request for Quotation (RFQ) Contract Agreement Technical Specifications Drawings, if applicable Bill of Quantities Standard forms for Community Shopping for works (performance securities, notice of approval, notice to proceed, etc.)

5.1.3. Conduct of Pre-Procurement Conference The pre-procurement conference is the forum called by the BAC where all officials involved inthe procurement meet and discuss all aspects of a specific procurement activity. It is required to ensure that the procurement is in accordance with the CPP andconfirms the availability of funds for the contract. For goods, the required documents for review include: i. ii. iii. iv. v.

Technical Specifications; Cost estimates; Quotation/Canvass Forms, and Notice of Request for Quotations Availability of the pertinent budget release for the project.

For works, the required documents for review include: i. ii. iii. iv. v. vi. vii.

Technical plans, specifications, scope of work; Engineering/architectural plans and designs; Availability of the right-of-way (ROW) or ownership of affected properties; Cost estimates, Quotation/Canvass Forms, and Notice of Request for Quotations Availability of the pertinent budget release for the project.

The PT, BAC, C/BSPMC, and Technical Working Group (TWG) shall meet to discuss the procurement at hand and to ensure that all requirements are in order. During the same meeting, the BAC will review and approve the canvass forms and contents of the Notice of Request for Quotation (NRQ) and the Chairperson will sign the form for posting. The PT will prepare the minutes of the pre-procurement conference and the C/BSPMC Bookkeeper will keep a copy of all the documents. If the C/BSPMC has to procure goods or works with different packages or work items , it is best to hold just one pre-procurement conference to save time. 5.1.4. Posting of Notice of Request for Quotation (NRQ) The BAC may post the Notice of Request for Quotation (NRQ) for a period of three (3) to seven (7) days for information purposes only at any of the following: municipal/ barangay hall bulletin boards, KC-NCDDP designated billboard or bulletin board, offices of Municipal Inter-Agency Committee (MIAC). Where computer and internet facilities are available within or in the vicinity of the community, the NRQ shall also be posted in the Phil-GEPS website or in the regional or national KC-NCDDP website. The Notice of Request for Quotation (CBPM Form B-1 for goods and B-2 for works) should contain the following information: i.

Brief description of the goods to beprocured for goods or the type, size, major items and other important or relevant features of the works for works; ii. The date, time and place for the deadline for the submission, receipt and opening of quotations; iii. Delivery schedule for goods or contract duration for works; iv. The name, address of the designated contact person; v. Such other necessary information deemed relevant by the BAC.

5.1.5. Issuance of Request for Quotation/Canvass For Goods: The PT issues the Request for Quotation (RFQ) or Canvass Form to at least three (3) suppliers in good standing. The CF should accompany the members during the first serving of the canvass to help explain the objectives of the procurement and the project to the prospective supplier. They will either wait for the supplier to accomplish the form and seal it in an envelope or ask the suppliers to submit the quotation in a sealed envelope to the C/BSPMC at the barangay hall within three (3) days. The PT should ask the supplier to acknowledge receipt of the canvass form by signing the acknowledgement receipt. Interested suppliers who were not issued RFQs may submit their respective canvass forms and other requirements in a sealed envelope to the C/BSPMC before the deadline for the opening of quotations. The suppliers shall accomplish the Quotation/Canvass Form and submit this in a sealed envelope with the following written outside the sealed envelope: NAME OF SUPPLIER ADDRESS Quotation for:_________________ KC-NCDDP Barangay Sub-Project Management Committee Address of Barangay What is a Supplier of Good Standing ? A supplier of good standing is one who is known in the community to be in the business of providing the goods to be procured for at least one year, duly registered with the DTI, SEC or CDA and possessing a mayor’s permit/municipal license from the supplier’s principal place of business with no outstanding record of being blacklisted by any government agency or local government unit. In case of previous or existing suppliers to KC-NCDDPsub-projects, they should have satisfactory performance or completed all contracts awarded. For Works: Only bona fide contractors licensed by the PCAB and who have been classified under the type of contract/project where the subject contract falls are eligible to be invited to submit quotations for shopping for works. The contractor should have a satisfactory performance for any on-going or completed KC-NCDDP projects.At least two members of the PT delivers the Request for Quotation (RFQ) with the attached specifications, drawings and bill of materials to at least three (3) licensed contractors. The CF should accompany the members during the first serving of the RFQ for communities in far flung areas to help explain the objectives of the procurement and the project to the prospective contractor. They will ask the contractor to submit the quotation in a sealed envelope to the C/BSPMC at the barangay hall within three (3) days. The PT should ask the contractor to acknowledge receipt of the RFQ by signing the acknowledgement receipt. Interested contractors who were not issued RFQs may submit their respective canvass forms and other requirements in a sealed envelope to the C/BSPMC before the deadline for the opening of quotations. The contractor shall submit this in a sealed envelope with the following written outside the sealed envelope: NAME OF CONTRACTOR ADDRESS

Quotation for Community Shopping for: (Name of Project) KC-NCDDP Barangay Sub-Project Management Committee Address of Barangay 5.1.6. Conduct of Conference for Community Shopping for Works The conference for the community shopping for works is the forum where the PT, C/BSPMC, BAC and the prospective contractors discuss the different aspects of the procurement at hand, details of the contract and forms to submit, issues that may arise during the preparation of the quotation. The conference for shopping for works is to be done at least three (3) days before the deadline for the submission of quotation. Attendance to the conference is compulsory for all invited contractors for contracts above P 1M and is optional for contracts below P 1M. The Municipal Engineer (ME) and the Deputy Area Coordinator (DAC) may also be invited to attend. The DAC provides technical assistance to the BAC and acts as resource person in case of requests for clarification. The PT shall prepare the minutes of conference. The BAC shall organize a site visit or inspection of the project site for prospective contractors. All prospective contractors are required to attend the site visit for contracts above P 1M as this will enable them to offer a more realistic quotation. However, for contracts bellow P 1M attendance to the site inspection is optional. Those who are not able to attend the scheduled site inspection may conduct their own inspection provided this is done before the submission of proposals. The C/BSPMC Chairperson shall issue a Certificate of Site Inspection to the representative of the prospective contractor and this shall be presented as a requirement in the opening of quotations. 5.1.7. Submission and Receipt of Quotations/Canvass The prospective contractor shall fill up and submit the Request for Quotation in a sealed envelope within the prescribed period for submission which is usually three (3) days after the conference. The PT shall receive the sealed quotations at the barangay hall on the date specified. If the quotation is submitted before the deadline, the PT member records receipt in the logbook with the following information: i. ii. iii. iv.

Name of Goods/Works Project to be Procured Name of Supplier/Contractor Date and Time Received Name and signature of procurement team member receiving the sealed enveloped

Suppliers or contractor who were not issued RFQ’s but submitted quotations shall be considered for evaluation. The sealed quotations and logbook will be placed at C/BSPMC office inside a secure filing cabinet. Any quotations submitted after the deadline shall be declared “Late” andshall not be accepted. 5.1.8. Opening and Evaluation of Quotations 5.1.8.1. Opening of Quotations The BAC shall invite the following to assist in the review and evaluation of quotations on the day specified for the opening of the quotations/ canvass: the Head of the Audit and Inventory Team (AIT) for goods, the Head of the Project Implementation Team (PIT) for works and the members of the Technical Working Group (TWG).

The PT shall bring the logbook and sealed envelopes containing the quotations and place this inside the bid box located in the barangay hall. The bid box shall be locked. The BAC Chairperson shall determine the presence or absence of a quorum and shall declare a quorum if there is one. The Chairperson shall open the padlock of the bid box and shall proceed with the opening of the sealed quotations. As a general rule, a minimum of three sealed quotations should be received for the BAC to proceed with the opening of quotations. The BAC can declare a failure of opening if only one or two envelopes are received and proceed with a re-canvass. However, if in the second attempt only one or two envelopes are received, the opening will push through provided more than three sets of canvass were served. The acknowledgement receipt shall serve as proof that the procedure was complied with. All members of the BAC shall initial every page of the original copies of all quotations received and opened. The PT shall prepare the minutes of the opening of quotations. 5.1.8.2. Evaluation of Quotations The purpose of the evaluation of quotations is to determine the Lowest Calculated and Responsive Quotation (LCRQ) based on the conditions set forth in the canvass. For Goods: A quotation is considered responsive if it provides complete information that meets the required technical specifications; indicates the quoted price for all items specified in the canvass by item or by package whether for delivery or by pick up, specifies the date of delivery. The ACT through the DAC shall bring the list of prevailing local prices for purposes of comparison and reference. If a canvass is not responsive, the supplier is disqualified and his quotation is not included in the ranking. If only one or two suppliers quoted on all items and is considered responsive, the BAC shall proceed with the evaluation. An Abstract of Canvass is prepared by the PT for all calculated and responsive quotations. This is signed by all members of the BAC. All quotations are ranked from lowest to highest and the lowest price is encircled. Award is made to the supplier with the lowest price quotation who meets all the requirements specified in the canvass. The C/BSPMC Chairperson shall review and approve the Abstract of Canvass. A supplier is allowed to submit an offer which provides for superior specifications and/or better terms and conditions to the community at no extra cost. However, the BAC should not give any bonus, credit or premium to such offer in the evaluation of quotations. If the lowest supplier refuses to accept the quotation, the second lowest is considered. If the second lowest refuses to accept, the third lowest quotation is considered provided his quoted price is within 110% of the price of the second lowest, otherwise the BAC may proceed to community direct contracting or re-canvass. For Works: The BAC shall examine the contractors license and check if this is genuine and valid for the contracting period required. The certificate of site inspection shall also be validated. The bill of quantities shall also be examined and evaluated for completeness of information that meets the technical specifications and the quoted price for all items

of work specified in the canvass. The evaluation of quotations shall take the following into consideration: i.

The quotation must be complete. Partial quotations or quotations not addressing or providing all of the required items in the bill of quantities, shall be automatically disqualified. In this regard, where a required item is provided, but no price is indicated, the same shall be considered as non-responsive, but specifying a“0” (zero) for the said item would mean that it is being offered for free.

ii. Minor arithmetical corrections to consider computational errors and omissions shall be made to enable proper comparison of all quotations. Discounts shall be incorporated in the quotation for each work item. Any adjustment shall be calculated in monetary terms to determine the calculated prices. iii. All bids shall be evaluated on equalfootingtoensure fair and competitive bid evaluation. For thispurpose, all bidders shall be required toinclude the cost of alltaxes, such as, but notlimited to, value addedtax (VAT), income tax,local taxes, and otherfiscal levies and dutieswhich shall be itemizedin the quotationform andreflected in the detailedestimates. Such bids,including said taxes,shall be the basis forbid evaluation andcomparison. iv. Quoted prices in words, unit prices, and unit cost in the bill of quantitiesshall prevail in case of discrepancy. In case of discrepancies between: (a) quoted prices in figures and in words, the lattershall prevail; (b) total prices and unit prices, the latter shall prevail; (c) unit cost inthe detailed estimate and unit cost in the bill of quantities, the latter shall prevail. Based on the detailed evaluation of quotations, those that comply with the abovementionedrequirements shall be ranked in the ascending order of their total calculated quoted prices, as evaluated and corrected for computational errors, and other modifications, to identify the Lowest Calculated Quotation/Canvass (LCQ). The total calculated bid prices, as evaluated and corrected for computational errors, and other modifications, will be used in the ranking. The entire evaluation process for the evaluation of quotations must becompleted in not more than two (2) calendar days from the deadline for receiptof proposals. The BAC should exert effort tocomplete the process even before the lapse of the 2-day period, as this will expedite the procurement process. If only one or two contractors quoted on all items and is considered responsive, the BAC shall proceed with the evaluation. An Abstract of Canvass is prepared by the PT for all calculated quotations. This is signed by all members of the BAC. Award is made to the contractor with the lowest price quotation that meets all the requirements specified in the canvass. The C/BSPMC Chairperson shall review and approve the Abstract of Canvass. If the lowest calculated contractor refuses to accept the quotation, the second lowest is considered. If the second lowest refuses to accept, the third lowest quotation is considered provided his quoted price is within 110% of the price of the second lowest, otherwise the BAC may proceed to community direct contracting or recanvass. For both goods and works, the PT prepares the minutes of the evaluation of

quotations. The DAC shall ensure that the lowest calculated and responsive canvass is the one indicated in the minutes of evaluation of canvass. In the case of awards that are waived without acceptable/valid reasons, the supplier/contractor shall be blacklisted in future KC-NCDDP procurements. 5.1.9. Prior Review of Contract Prior to the signing of the Purchase Order/Contract, the C/BSPMC Chairperson shall request for clearance to award and to conduct prior review for contracts within the thresholds specified under Table 1 of Section 4.3. For Community Shopping for goods and works these are: Regional Project Management Office (RPMO) – contracts more than P 500,000 and less than P 2.0 M In the request for No-Objection-Letter (NOL), the PT shall attach photocopies of all the contract documents with the exception of the letter itself which should be submitted in its original form. 5.1.10. Contract Award For Goods: The PT shall prepare three (3) copies of the Purchase Order (PO) and shall agree with the Monitoring and Inspection Team (MIT) on the date of delivery. The Barangay Treasurer certifies to the availability of funds and this is submitted to the Chairperson of the C/BSPMC who approves and signs the PO. The PT delivers the PO to the winning supplier who signs his conforme and retains his copy. The PT furnishes a copy of the PO to the Barangay Bookkeeper and the Monitoring and Inspection Team (MIT) member. What is a Purchase Order? A purchase order is a contract between the community and the supplier/dealer for the delivery of supplies, subject to stipulations in the order. Thus, for contracts procured covered by purchase orders, the inclusion of a clause in the purchase order making reference to the general and specific conditions of the contract as reflected in the bidding documents shall be necessary to indicate that those conditions form part of the contract between the parties. For Works: 5.1.10.1. Contract Approval and Issuance of Notice of Award Upon receipt of the NOL, as applicable, the PT shall prepare three (3) copies of the Notice of Award (NOA) and shall submit the same to the C/BSPMC Chairperson for signature.

The BAC shall award the contract to the contractor with the LCRQ at its submitted quoted price or its calculated quoted price, whichever is lower. The PT consolidates all the documents and/or records of theproceedings of the BAC with regard to the procurement at hand, and attachesthe same to the BAC Resolution.The PT drafts the BAC Resolution recommending award.The BAC approves and signs the Resolution Recommending Award, andtransmits the same to the C/BSPMC Chairperson who acts on the recommendation. The PT shall prepare three (3) copies of the Notice of Award (NOA) and shall submit the same to the C/BSPMC Chairperson for signature. The PT delivers the NOA to the contractor who shall sign his/her conforme and returns two (2) copies to the PT. Where computer and internet facilities are available within or in the vicinity of the community, the NOA shall be posted in the Phil-GEPs website or in the KC-NCDDP regional or national website. For contracts requiring prior review, the C/BSPMC Chair shall wait until the NOL has been issued by the appropriate authority before the NOA is sent to the winning contractor. 5.1.10.2. Contract Signing and Posting of Performance Security Upon receipt of the NOA, the BAC schedules the signing of the contract with the winning contractor who will then post the required performance security and submit other documentary requirements. The C/BSPMC Chairperson signs the contract (three copies) upon submission of the performance security and the signing of the contract by the winning contractor (two copies) within ten (10) calendar days from receipt of the NOA. The PT forwards the contract together with the rest of the supporting documents for filing and safekeeping. For Community Shopping for works, the contractor shall post the same form and corresponding amount specified in Section 5.6.11.2. on Community Bidding for works. The same applications and conditions for the performance security shall also prevail. Upon signing of the contract and submission of the performance security, the BAC shall issue the Notice to Proceed (NTP) together with a copy or copies of the approved contract to the successful contractor within three (3) calendar days from the date of approval of the contract by the C/BSPMC Chairperson. Unless otherwise specified in the contract, a contract is effective upon receipt of theNTP. If an effectivity date is provided in the NTP, such date shall not belater than seven (7) calendar days from issuance thereof. The PT shall furnish copies of the signed contract to the Municipal Auditor and the RPMO. 5.1.11. Contract Implementation For Goods: The winning supplier delivers the goods in accordance with the provisions of the PO, technical specifications and other requirements on the scheduled delivery date. The MIT with the concerned TWG members inspects the goods against the delivery receipt and the PO. If they find all requirements are complied with and in order, they accept the delivery receipt and stamp it “inspected” and sign the PO. Otherwise, if they find that the delivery is incomplete and does not comply with the specifications, the goods should not be accepted. If the supplier fails to start the delivery despite followups by the PT within 15 days and the BSPMC through the evaluation of the PIT delay the implementation, the

BSPMC can cancel the P.O. and award the contract to the succeeding responsive supplier, otherwise, conduct recanvass. For Works: The winning contractor mobilizes and starts work within seven (7) days from receipt of the NTP. The contractor has the option to claim for advance payment equivalent to 15% of the contract price subject to the submission of a certification from the DAC that equipment and materials are already on the jobsite and a bank guarantee equivalent to the amount requested within three (3) calendar days. The Project Implementation Team (PIT) and the Monitoring and Inspection Team (MIT) shall regularly monitor the execution of the contract. The Municipal Engineer, DAC and Community Infrastructure Officer (CIO) shall conduct regular inspection of the project site and shall provide technical assistance to the community. Tables 2 and 3 provide a summary of all procedures for the procurement of goods and works through Community Shopping and explain the functions of different personnel involved. 5.2. Community Direct Contracting for Goods and Works Community Direct Contracting is a method of procurement of goods and works where the community directly negotiates a contract with a technically, legally and financially capable supplier or contractor. This does not require elaborate bidding procedures and documents. The supplier/contractor is simply asked to submit a price quotation or a proforma invoice together with the conditions of sale. The offer may be accepted immediately or after some negotiations. Community direct contracting may be resorted to by a community under any of the following conditions: i. ii. iii.

iv.

v. vi.

vii.

Where there is only one supplier/contractor in the municipality or vicinity capable of providing the goods, services or works (known as Direct Contracting); Where there has been failure of community bidding for the second time (Direct Contracting due to Two Failed Biddings); When time is of the essence to avert an imminent danger to life or property or to restore damaged community projects arising from natural or man-made calamity or emergency as declared by appropriate authorities. For works, the community has the option to undertake the project through direct contracting or by administration (Direct Contracting due to Emergencies); Where upon sufficient justification, it is found that it is more efficient and economical for the community to enter into an Agency-to-Agency Arrangement with another government agency for the procurement of goods, works and consulting services provided that the Servicing Agency has the mandate to deliver the goods and services required, has the technical expertise to deliver such services and owns or has access to the necessary tools and equipment required for the project (Agency-to-Agency Arrangements) For works: where the community decides to take over a contract that has been rescinded or terminated for causes provided for in the contract and existing laws (Direct Contracting due to Contract Termination); For works: where the subject contract is adjacent or contiguous to an on-going infrastructure project and it will be more advantageous to hire the services of the single contractor than to undergo a new bidding process (Direct Contracting for Adjacent and Contiguous Projects); In the case of island municipalities, remote or far flung communities as certified by

the Area Coordinator (AC) or conflict areas with peace and order problems as certified by the municipal Chief of Police. Direct Contracting due to Failure of Bidding may occur in any of the following instances: i. ii. iii. iv.

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.

Direct Contracting due to Emergenciesshall be supported by the issuance of a state of calamity declaration from the National Disaster Risk Reduction and Management Council (NDRRMC) covering the said community or as declared by a local government. Direct Contracting through Agency to Agency Arrangement may be applied under the following conditions: i.

The community shall provide sufficient justification indicating that entering into an Agency-to-Agency Agreement with the Servicing Agency is more efficient and economical for the community; ii. The community lacks the proficiency or capacity to undertake the particular procurement; iii. The Servicing Agency has the mandate to deliver the services required to be procured or to undertake the infrastructure project or consultancy; and iv. The Servicing Agency owns or has access to the necessary tools and equipment required for the project. Agency-to-Agency Arrangements may be undertaken with government agencies such as the Technical Education and Skills Development (TESDA) and others as well as; local government units (province, city or a municipality)as appropriate based on the above conditions. A memorandum of agreement (MOA) shall be executed with the Servicing Agency defining the conditions, roles and responsibilities of the C/BSPMC, the ServicingAgency and other stakeholders, the schedules/timeline, scope of works/deliverables and project costs as established in the sub-project’s approved program of works (POW)/ proposal. Direct Contracting due to Contract Termination may happen in any of the following instances: i.

There is breach of contract or termination for default (either by the C/BSPMC or the contractor/supplier). ii. If the contract is abandoned by contractor. iii. The C/BSPMC terminated the contract for convenience, in whole or in part, as 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. iv. Due to unlawful acts that 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. Direct Contracting for Adjacent or Contiguous Projects may be resorted to under

any of the following conditions: i. The original contract is the result of a Community Shopping, Direct Contracting or Bidding; ii.The subject contract to be negotiated has similar or related scopes of work; iii. It is within the contracting capacity of the contractor; iv. The contractor uses either an acceptable price, the same or lower unit prices as in the original contract less mobilization cost based on prevailing market conditions; v. The amount involved does not exceed the amount of the on-going project; and vi. For contractors of previous KC projects, a proven satisfactory track record in the completion of such projects; vii.Negotiations for the procurement are commenced before the expiry of the original contract. The following procedures are applicable for all types of contracts procured under community direct contracting. 5.2.1. Identification of Items for Community Direct Contracting The Procurement Team identifies the items to be procured through community direct contracting from the approved Community Procurement Plan (CPP). The CPP shall specify the type of community direct contracting to be used based on the above discussions. The Procurement Team shall ensure that the required justification for the use of this type of community direct contracting method is included as an attachment to the CPP. This is then submitted to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards Committee (BAC) for review and validation to ensure that the conditions for this type of community direct contracting are met. 5.2.2. Preparation of the Request for Quotation (RFQ) Upon approval by the C/BSPMC of the items to be procured, the PT prepares the following documents: For Goods: i. Notice of Request for Quotation (NRQ) ii. Computation to show that it is cheaper to purchase from a lone supplier rather than several suppliers (For Direct Contracting); iii. Request for Quotation (RFQ)/Canvass Form; iv. Purchase Order; v. Technical Specifications; vi. Standard forms for community direct contracting for works; vii. Justification for the use of the type of community direct contracting method; viii. Certification from the DAC that there is only one qualified supplier in the Municipality. For Works: i. ii. iii. iv. v. vi.

Notice of Request for Quotation (NRQ); Request for Quotation (RFQ)/Canvass Form ; Contract Agreement; Technical Specifications; Drawings, if applicable; Bill of Quantities;

vii. Standard forms for community direct contracting for works; viii. Certification from the DAC that there is only one qualified contractor in the municipality or in the vicinity. 5.2.3. Conduct of Pre-Procurement Conference The BAC Chairperson shall call for a pre-procurement conference to discuss all aspects of the procurement at hand, among others the: i. ii. iii. iv.

Technical Plans/Specifications; Cost estimates/Bill of Quantities; Quotation/Canvass Forms, and Availability of the pertinent budget release for the project.

The PT, BAC, C/BSPMC, and Project Implementation Team (PIT) meet to discuss the procurement at hand and to ensure that all requirements are in order. The Municipal Engineer and the Deputy Area Coordinator (DAC) shall certify that there is only one supplier/contractor available in the municipality. For works, in case there is more than one contractor available in the vicinity, the BAC shall choose the most capable based on the following criteria: satisfactory performance in completed or on-going KC-NCDDP sub-projects and no negative slippage of more than 15%. The selected contractor shall then be invited. During the same meeting, the BAC will review and approve the canvass forms. The PT will prepare the minutes of the pre-procurement conference and the C/BSPMC Bookkeeper will keep a copy of all the documents. 5.2.4. Posting of Notice of Request for Quotation (NRQ) The BAC may post the Notice of Request for Quotation (NRQ) for a period of three (3) days for information purposes only at any of the following: municipal/ barangay hall bulletin boards, KC-NCDDPdesignated billboard or bulletin board, offices of Municipal InterAgency Committee (MIAC). Where computer and internet facilities are available within or in the vicinity of the community, the NRQ shall also be posted in the Phil-GEPS website or in the regional or national KC-NCDDP website. The Notice of Request for Quotation (CBPM Form B-1 for goods and CBPM Form B-2 for works)should contain the following information: i. ii. iii. iv. v.

Brief description of the goods to beprocured or the type, size, major items, and other important or relevant features of the works; The date, time and place for the deadline for the submission, receipt and opening of quotations; Delivery schedule for goods and contract duration for works; The name, address of the designated contact person; Such other necessary information deemed relevant by the BAC.

5.2.5. Issuance of Request for Quotation/Canvass For Goods: The PT issues the Request for Quotation (RFQ) or Canvass Form to the lone supplier of good standing. They will either wait for the supplier to accomplish the form and seal it in an envelope or ask the supplier to submit the quotation in a sealed envelope to the C/BSPMC

at the barangay hall within three (3) days. The lone supplier shall then accomplish the Quotation/Canvass Form and submit this in a sealed envelope with the following written outside the sealed envelope: NAME OF SUPPLIER ADDRESS Quotation for:_________________ KC-NCDDP Barangay Sub-Project Management Committee Address of Barangay If the procurement is being directly contracted in case of an emergency or an imminent danger to life or property,the direct contracting shall be made with a previous supplier of good standing of the community, or a supplier of good standing situated within the vicinity where thecalamity or emergency occurred. For Works: After ascertaining that there is only one bona fide contractor classified under the type of contract/project where the subject contract falls within the vicinity, the PT delivers the Notice of Request for Quotation (NRQ) Form to the lone licensed contractor in the vicinity. The CF should accompany the members during the first serving of the RFQ for communities in far flung areas to help explain the objectives of the procurement and the project to the prospective contractor. They will ask the contractor to submit the quotation in a sealed envelope to the C/BSPMC at the barangay hall within three (3) days. The PT should ask the contractor to acknowledge receipt of the RFQ by signing the acknowledgement receipt. The contractor shall submit this in a sealed envelope with the following written outside the sealed envelope: NAME OF CONTRACTOR ADDRESS Quotation for Community Direct Contracting for: (Name of Project) If the procurement is being negotiated in case of an emergency or an imminent danger to life or property,thedirect contracting shall be made with a previous contractor operating within the vicinity where the calamity or emergency occurred.If the procurement is being negotiated because of two previous failures of biddings,the BAC, through the BAC Secretariat, shall draw up a list of at least three (3)bonafidecontractors who will be invited to submit bids and negotiate with thelowest calculated bidder. The lone contractor may request for a meeting to discuss the various aspects of the procurement at hand. The Municipal Engineer (ME) and the Deputy Area Coordinator (DAC) may also be invited to attend this meeting. The DAC provides technical assistance to the BAC and acts as resource person in case of requests for clarification. The PT shall prepare the minutes of conference. The BAC shall organize a site visit or inspection of the project site for the lone contractor or in the case of a failed bidding, contractors. The prospective contractor/s are required to attend the site visit as this will enable him/them to offer a more realistic quotation. Those who are not able to attend the scheduled site inspection may conduct their own inspection provided this is done before the submission of proposals. The C/BSPMC Chairperson shall issue a Certificate of Site Inspection to the representative of the prospective contractor and this shall be presented as a requirement in the opening of quotations.

5.2.6. Submission and Receipt of Quotation/Canvass The prospective supplier/contractor shall fill up and submit the Request for Quotation in a sealed envelope within the prescribed period for submission which is usually three (3) days after the meeting. The PT receives the sealed quotation at the barangay hall on the date specified. If the quotation is submitted before the deadline, the PT member records receipt in the logbook with the following information: i. ii. iii. iv.

Name of Goods/Works Project to be Procured Name of Supplier/Contractor Date and Time Received Name and signature of procurement team member receiving the sealed enveloped

The sealed bids and logbook will be placed at C/BSPMC office inside a secure bid box stored in a filing cabinet.For failed biddings, any quotations submitted after the deadline shall be declared “Late” and shall not be accepted. 5.2.7. Opening and Evaluation of Quotation 5.2.7.1. Opening of Quotation The BAC shall invite the following to assist in the review and evaluation of quotation on the day specified for the opening of the quotations/ canvass: the Head of the Audit and Inventory Team (AIT) and the members of the Technical Working Group (TWG) for goods and the Head of the Project Implementation Team (PIT) and the members of the Technical Working Group (TWG) for works. The PT shall bring the logbook and sealed envelope/s containing the quotation, ideally placed inside the bid box located in the barangay hall. The BAC Chairperson shall determine the presence or absence of a quorum and shall declare a quorum if there is one. The Chairperson shall open the padlock of the bid box and shall proceed with the opening of the sealed quotation. He shall read aloud in public the name of supplier/contractor and the amount of canvass. All members of the BAC shall initial every page of the original copies of the quotation received and opened. The PT shall prepare the minutes of the opening of quotation. 5.2.7.2. Evaluation of Quotation The BAC shall determine if the quotation is responsive in terms of meeting the required technical specifications; indicating the quoted price for all items specified in the canvass by item or by package, specifying the date of delivery. The DAC shall provide a certification that there is only one or very limited number of suppliers. The quotation shall be evaluated as provided for in Section 5.1.8.2 for goods and works. If the quotation is not responsive due to incomplete documentary requirements, the BAC shall request the supplier/contractor to comply with such requirements. If the bid prices are higher than the estimated budget cost, the BAC and C/BSPMC shall determine if there are available funds to cover the difference and if available, the contract is awarded at the supplier’s/contractor’s price. If funds are not available, the BAC and C/BSPMC shall negotiate with the winning supplier/contractor to bring down the price to the estimated budget cost with the consent of the supplier/contractor. If the supplier/contractor does not agree to a change in contract price, the scope of works

shall be adjusted to consider available budget as long it does not significantly affect the purpose of the project. 5.2.8. Prior Review of Contract For Goods: All Purchase Orders (PO) of goods procured through community direct contracting and Agency-to-Agency Arrangements above P 1 M shall undergo prior review by the Regional Project Management Office (RPMO). Goods procured through community direct contracting due to failed bidding and contract termination shall undergo prior review by both the RPMO and the NPMO.Goods procured through community direct contracting due to emergencies shall be subject to post review by both the RPMO and the NPMO. For works: All Purchase Orders (PO) of works procured through community direct contracting, Agency-to-Agency Arrangements above P 1.0 M and adjacent and contiguous projects shall undergo prior review by the Regional Project Management Office (RPMO). Works procured through community direct contracting due to failed bidding and contract termination shall undergo prior review by both the RPMO and the NPMO.Works procured through community direct contracting due to emergencies shall be subject to post review by both the RPMO and the NPMO. Prior to the signing of the contract, the C/BSPMC Chairperson shall request for clearance to award and to conduct prior review for contracts within the thresholds specified under Table 1 of Section 4.3. In the request for No-Objection-Letter (NOL), the PT shall attach photocopies of all the procurement related documents with the exception of the letter itself which should be submitted in its original form. In the request for No-Objection-Letter (NOL), the PT shall attach photocopies of all the procurement related documents with the exception of the letter itself which should be submitted in its original form. 5.2.9. Contract Award For Goods: Upon receipt of the NOL, the PT shall prepare three (3) copies of the Purchase Order (PO) and this is submitted to the Chairperson of the C/BSPMC who approves and signs the PO. The PT shall then deliver the same to the lone supplier who signs his conforme and retains his copy. Performance security is not requiredif the procurement is through community direct contracting, emergencies or under Agency-to-Agency Arrangements. However, this is still required to be posted by the winning supplier for all other types of community direct contracting. Where computer and internet facilities are available within or in the vicinity of the community, the NOA shall be posted in the Phil-GEPs website or in the KC-NCDDP regional or national website. The PT furnishes a copy of the PO to the Barangay Bookkeeper and the Monitoring and Inspection Team (MIT) member. For Works:

5.2.9.1. Contract Approval and Issuance of Notice of Award Upon receipt of the NOL, the PT shall prepare three (3) copies of the Notice of Award (NOA) and shall submit the same to the C/BSPMC Chairperson for signature. The PT delivers the NOA to the contractor who shall sign his/her conforme and returns two (2) copies to the PT. The PT shall prepare three (3) copies of the Notice of Award (NOA) and shall submit the same to the C/BSPMC Chairperson for signature. The PT delivers the NOA to the contractor who shall sign his/her conforme and returns two (2) copies to the PT. For contracts requiring prior review, the C/BSPMC Chair shall wait until the NOL has been issued by the appropriate authority before the NOA is sent to the winning contractor. Where computer and internet facilities are available within or in the vicinity of the community, the NOA shall be posted in the Phil-GEPs website or in the KC-NCDDP regional or national website. 5.2.9.2. Contract Signing and Posting of Performance Security Upon receipt of the NOA, the BAC schedules the signing of the contract with the winning contractor who will then post the required performance security and submit other documentary requirements. The C/BSPMC Chairperson signs the Contract (three copies) upon submission of the performance security and the signing of the contract by the winning contractor (two copies) within ten (10) calendar days from receipt of the NOA. The PT forwards the contract together with the rest of the supporting documents for filing and safekeeping. Performance securitiesare required to be posted by the winning contractor for all types of community direct contracting with the exception of the Agency-to-Agency Arrangement. The contractor shall post the same form and corresponding amount specified in Section 5.6.11.2. on communitybidding for works. The same applications and conditions for the performance security shall also prevail. Upon signing of the contract and submission of the performance security, the BAC shall issue the Notice to Proceed (NTP) together with a copy or copies of the approved contract to the successful contractor within three (3) calendar days from the date of approval of the contract by the C/BSPMC Chairperson. Unless otherwise specified in the contract, a contract is effective upon receipt of theNTP. If an effectivity date is provided in the NTP, such date shall not belater than seven (7) calendar days from issuance thereof. The PT shall furnish copies of the signed contract to the Barangay Bookkeeper, Monitoring and Inspection Team (MIT), Municipal Auditor and the RPMO. 5.2.10. Contract Implementation Contract implementation procedures for goods and services procured through Community Direct Contracting shall follow those discussed in Section 5.1.11. Contract implementation procedures for Community Direct Contracting for works shall follow those discussed under Section 5.1.11. Tables 4 and 5 provide a summary of all procedures for the procurement of goods and works through Community Direct Contracting and explain the functions of different personnel involved.

3.3.

Community Repeat Order for Goods

Community Repeat Order is a method of procurement for goods from the previous winning supplier under a contract previously awarded through community bidding, shopping or direct contracting, where an additional quantity of the same items are urgenty needed to meet the requirements of the project, there are sufficient funds available for this purpose and it can be clearly shown that no advantage can be gained by going through a new round of community bidding, shopping or direct contracting. Repeat Order may be resorted to only in cases where the procured item is clearly superior to other bids/quotations not only in the price quoted but also in equipment reliability, availability of spare parts, after-sales service and delivery period, among others. Repeat Order may be resorted to if the following conditions are satisfied: i. ii. iii. iv. v.

The original contract must have been procured through community bidding, shopping or direct contracting; Contract prices of the repeat order must be the same as or lower than those in the original contract, provided that such prices are still the most advantageous to the community after price verification; The repeat order shall be used only once and shall not exceed fifty percent (50%) of the quantity of each item in the original contract. The repeat order shall be availed ofonly within three (3) months of the original contract; It shall not result in splitting of contracts, requisitions or purchase orders.

The following procedures are applicable for all types of contracts procured under community repeat order. 5.3.1. Identification of Items for Community Repeat Order The Project Implementation Team (PIT) shall request for the procurement of additional goods previously procured through the community repeat order method based on the conditions stated above to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC). Upon approval, the Procurement Team shall make the necessary revisions in the Community Procurement Plan (CPP) which shall be approved by the Bids and Awards Committee(BAC). The Procurement Team shall ensure that the required justification for the use repeat order is included as an attachment to the CPP. This is then submitted to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards Committee (BAC) for review and validation. 5.3.2. Conduct of Pre-Procurement Conference The BAC Chairperson shall call for a pre-procurement conference to discuss the aspects of the procurement at hand, among others the: i. the review of the technicalspecifications; ii. confirmation from the PIT of the necessity and quantity of the additional requirements; iii. confirmation that the price and the terms of the original contract is most advantageous to the community; iv. existence of the conditions required for procurement through community repeat order. 5.3.3. Posting of Notice for Request for Repeat Order (NRRO)

The BAC shall post the Notice of Request for Repeat Order(NRRO) for a period of three (3) days for information purposes only at any of the following: municipal/ barangay hall bulletin boards, KC-NCDDPdesignated billboard or bulletin board, offices of Municipal Inter-Agency Committee (MIAC). Where computer and internet facilities are available within or in the vicinity of the community, the NRQ shall also be posted in the Phil-GEPS website or in the regional or national KC-NCDDP website. 5.3.4. Conduct of Canvass The BAC, through the Procurement Team, shall conduct a canvass of the prevailing market price of the goods to be procured and compares this with the price of the goods in the original contract.The BAC shall also confirm from the supplier whether the price of the goods won from the previous community bidding, shopping or direct contracting remains valid. Upon confirmation that there are no changes in unit prices and quantities from the original contract price and the conditions for the use of community repeat order are met, the BAC issues instructions to the Procurement Team to proceed with the preparation of the Supplemental Contract or Purchase Order, using the Technical Specifications in the contractdocuments used in the previous procurement. 5.3.5. Contract Approval, Signing and Implementation The BAC shall proceed with contract approval, signing, and implementation in accordance with the provisions of the original contract. The NOA for community repeat order shall be posted in the Phil-GEPs website, where computer and internet facilities are available within or in the vicinity of the community or in the KC-NCDDP regional or national website. 5.4. Small Value Procurement for Goods and Works Small Value Procurement refers to a method for the procurement of goods, services, works and consulting services where direct purchase is used for items of very small quantities and value since it is more practical and economical to do so. The decision to resort to small value/off-the-shelf procurement must be reflected in the CPP. If such procedure was not anticipated in the earlier planning, the CPP needs to be updated. Splitting of contracts to evade or circumvent the requirements of this manual using this method is not allowed. There are four types of small value procurement: 1. Off-the Shelf Goods Off-the-Shelf Goods Procurement applies to the purchase of readily available goods from local market outlets/stores. This may include the purchase of food, perishable or non-perishable items, agricultural products, office supplies, or emergency purchases, hand tools, or other items necessary for the implementation of the sub-project that cannot be procured through the other identified procurement methods, among others. Off-the-shelf procurements may be applied to support planning, implementation and project supervision activities. 2. Short Term Services Short Term Services procurement refers to the purchase or acquisition/engagement of non-consultancy servicerequirements available in the local community and requiring

a very limited period of time. This may include hiring of caterers for workshops, training or meetings, transportation or trucking services, repair of vehicles and other project related equipment, hiring of resource persons for training or advisory requirements, rental of hand tools and equipment, or other services necessary for the implementation of the sub-project, among others. In the rental of hand tools that are commonly used in construction projects and included in the POW, the PT must determine the required duration of use and assess whether it is more economical to rent or to purchase such items. If the cost of renting such tools exceeds the threshold provided above, then the PT should consider purchasing such items either through community bidding, shopping or direct contracting as goods or equipment, as applicable, provided that: this is included in the CPP; the procedures for operation and maintenance of such tools and equipment are clearly established including its turn-over and custody after project completion; and a cost comparison is submitted/attached as part of the readiness filter. 3. Small Works Small Works procurement refers to the purchase of construction related service requirements available in the local community and requiring a very limited period of time and skilled labor such as painting, repair or renovation of roofs, walls, plumbing or electrical works, fabrication of small structures or other services necessary for the implementation of the sub-project which would be more economical to procure as small works rather than pakyaw contract. In this case, the C/BSPMC directly engage worker/s in the community with known capacity to perform the job. The cost and scope of works should have been established in the POW or as discussed in the C/BSPMC meeting or at the Barangay Assembly (BA). Payroll, accomplishment report prepared by the PIT and checked by the DAC/engineer in-charge and Timesheets or a photocopy logbook will be the supporting documents for payment. The following procedures are applicable for all types of contracts procured under small value procurements. 5.4.1. Identification of Items for Small Value Procurement The Procurement Team identifies the items to be procured through Small Value procurement from the approved Community Procurement Plan (CPP). If such procedure was not anticipated earlier, then the CPP shall be updated to identify items to be procured through Small Value procurement. In order to facilitate the procurement of these small items, the CPP may simply include general descriptions of small value procurement such as perishable or non-perishable food for trainings and seminars, office supplies, catering services, transport services, various hand tools, etc. This is then submitted to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC) for review and validation. All items to be procured through small value procurements shall be supported by an itemized list with the quantity, unit price and cost estimate of these items and shall be submitted to the BAC for approval before it is included in the CPP (CBPM C-1). For short term services, small works and short term consulting services, this shall be accompanied by a terms of reference or a scope of work with the specific outputs/deliverables. For short term services and short term consulting services involving the hiring of experts, the bio data or resume of the expert shall be reviewed by the BAC. All small value procurements shall not exceed the threshold of P 10,000.00. The C/BSPMC Chairperson shall review and approve the itemized list and

shall order the Barangay Treasurer to prepare the amount to be released to a member of the PT. 5.4.2. Survey of Available Suppliers Upon approval by the C/BSPMC of the items to be procured, the PT shall proceed to the local market or stores to conduct an informal survey of vendors/suppliers providing the most advantageous prices using CBPM Form C-2. 5.4.3. Direct Purchase of Items For off-the-shelf procurement, the PT shall procure the items directly from the vendors/suppliers offering the most advantageous price based on the survey conducted. They shall request for an official receipt or in its absence, shall provide a list of items procured duly signed by the vendor/supplier. A proforma receipt is also provided and used by the PT members (CBPM Form C-3). For short term services, the PT shall prepare a short contract or a job order or in its absence a proforma contract to support the hiring, rental, lease of such services(CBPM Form C-4). For technical and professional services such as the hiring of resource persons and consultants, the PT shall issue a letter of invitation specifying the special service to be covered, the number of lecture or consultation hours needed, the period when the service shall be rendered and the fee that shall be paid. The resource person shall sign his/her conforme to the offer letter and shall attach his/her curriculum vitae to the said letter. The C/BSPMC Chairperson shall certify to the necessity of the service and the CF shall certify that the service was rendered(CBPM Form C-5). For both short term services, the PT shall submit a request for payment to the C/BSPMC Chairperson for review and approval and shall order the Barangay Treasurer to issue payment. 5.4.4. Inspection of Goods/Services Immediately upon procurement of off-the-shelf items, the PT shall present the items procured to the MIT and the Barangay Treasurer for inspection against the receipt or signed form. If they find all items in order, they accept the receipt and stamp it “inspected” and sign the receipt. If they find the items to be incomplete, they prepare a report to the C/BSPMC Chairperson. For short term services, the MIT and the Barangay Treasurer shall check if such a service was in fact delivered and shall accept and sign the proforma contract to validate its existence. For Small Works 5.4.5. Identification of Small Works The Procurement Team identifies the small works from the approved Community Procurement Plan (CPP). If such was not anticipated earlier, then the CPP shall be updated to identify items to be procured through small works. In order to facilitate the procurement of these small works, quantities and corresponding cost should be defined in the CPP. This is then submitted to the Chairperson of the Barangay SubProject Management Committee (C/BSPMC) for review and validation.

The PT shall submit an itemized list of small works, timetable for implementation, the cost estimate and the purpose for procurement which shall not exceed the threshold of P 10,000.00. The C/BSPMC Chairperson shall review and approve the itemized list and shall order the Barangay Treasurer to prepare the amount readily available for payment upon satisfactory completion of the small works. 5.4.6. Survey of Available Contractors/Pakyaw Groups Upon approval by the C/BSPMC of the small works to be procured, the PT shall check available contractors or Pakyaw groups who can provide the services within the specified time frame and at the most advantageous prices. Priority shall be given to pakyaw groups within the community who are capable of completing the small works to encourage community employment. 5.4.7. Direct Purchase of Small Works The PT shall prepare a short contract or a job order or in its absence a proformacontract to support the small works. For payment of small works, the PT shall submit a request for payment to the C/BSPMC Chairperson for review and approval and shall order the Barangay Treasurer to issue payment. 5.4.8. Inspection of Small Works Immediately upon completion of the small works, the PT shall request the PIT, MIT and the Barangay Treasurer to inspect such works against the job order or proforma contract to determine if the work specifications were complied with. If they find the work in order, they shall accept and sign the proforma contract to acknowledge completion of small works per conditions and requirements. If they find the items to be incomplete, they prepare a report to the C/BSPMC Chairperson and request the contractor to correct any error or complete the unfinished work. 5.5. Pakyaw Contract for Works Pakyaw Contract refers to a system of hiring a group of skilled or unskilled workers within the community or its vicinity by the community itself for the performance of a specific work incidental to the implementation of the project where tools and local indigenous materials may or may not be furnished by the community. It is an alternative method of procurement where the partial or full implementation of an infrastructure project or items of work for its completion is carried out by labor from the community or its vicinity. Pakyaw contracts are used to complete items of work defined by a specific quantity or output (e.g. excavation, clearing and grubbing). Where available, the community through the C/BSPMC may also supply needed equipment to complete the work. This may be done by organizing and hiring its members to supply labor under “pakyaw” contracts; through the direct provision of construction and other needed materials; or through the use of its own or the leasing of construction equipment, or Labor only; or any of these combinations. Payment will be based on the scope of works quantity output derived from the POW and reflected in the statement of works accomplishment. Particular scope of works, quantities, schedule and corresponding costs will be prepared and attached to the Pakyaw Agreement. For the specific works output, a lump-sum payment may be made based on a

statement of work accomplished either through the group leader or divided among the pakyaw workers and disbursed using a payroll system through the C/BSPMC/Barangay treasurer. A list or payroll that reflects the cost due to every member of the Pakyaw should be provided as an attachment to the disbursement voucher. The payroll shall then be concurred by the member to indicate acknowledgement of the payment expected. The method for paying community based labor under the pakyaw contract should be discussed and agreed upon during the Barangay Assembly. Pakyaw contracts may be justified where: i. ii. iii. iv. v. vi.

there is sufficient labor in the community or its vicinity to undertake the items of work; quantities of work involved cannot be defined in advance; works are small and scattered or in remote locations for which qualified construction firms are unlikely to bid at reasonable prices; work is required to be carried out without disrupting ongoing operations; risks of unavoidable work interruption are better borne by the community than by a contractor; or there are emergencies needing prompt attention.

There are two cases where community based labor may be provided to complete projects: Case 1: Where labor supply forms part of the share of community counterpart as in kind contribution. In this case, the C/BSPMC through the PIT will manage and supervise community workers participating in the implementation of the community project and will pay the workers in accordance with the agreed rate for skilled and unskilled labor using community funds. The actual cash to be paid and the equity (“bayanihan”) monetized cost will be indicated in the Community Employment Record (CER).During implementation, should the community opt to implement the works through Pakyaw, the cost will be computed based on the cash for the labor in the POW. The in-kind (bayanihan) community counterpart will still be monitored and reported. Case 2: Interested laborers form themselves into groups and provide their services through the pakyaw method of procurement. The use of such method should be reflected in the CPP. The community through the C/BSPMC with technical assistance from the engineers shall discuss the scope of works, number of contracts and number and size of groups that need to be organized to complete the work to be done through the pakyaw contracting system. Pakyaw labor shall be drawn from the vicinity of the community, or from Pakyaw laborgroups belonging to various Barangay contiguous to the project site. As a priority, unskilled, semi-skilled and skilledworkers should be drawn from the community where the project islocated;. The C/BSPMC with the Community Facilitator (CF) shall ensure that all members of the community who are interested to join Pakyawgroups being formed for the project are known to be members of the concerned community where the subproject is located or from the adjacent Barangays.

A Project Supervisor (PS)10, who shall either be a C/BSPMC representative, a member of the PIT or hired for the project shall assist oversee the organization of Pakyaw Groups and in the preparation of Pakyaw contracts. The PS shall be actively involved in the selection of the members who will constitute the Pakyaw Groups to ensure that Pakyaw members/leaders are inclined or with similar experience to the scope of works under consideration. The CF, for purposes ofinforming the community of the project and of organizing pakyaw groups,shall convene community meetings, with the assistance of the C/BSPMC Chairperson. The Pakyaw workers shall be formed into groups of workers based on the item of works to be implemented through the Pakyaw system. The determination by the PS of the number of members per Pakyaw Group shall be exercised with regard to the objective of providing work to as many laborersas possible to facilitate completion of the scope of Pakyaw works. A Pakyaw labor group shall consist of at least threepersons. The PS shall also oversee the work of the Pakyaw groups to ensure that these are in compliance with design standards and technical specifications. The Pakyaw Contract may be directly awarded by the BAC to the organized group based on their similar experience inclined to the scope of works under consideration. A Group Leader shall be elected from among the members of the group whoshall be the signatory to the Pakyaw Contract and any other documentspertaining to the work on behalf of the Pakyaw Group. He will assist the Project Supervisor in setting out the task and assuring that the work is undertaken as directed.He may be replaced atany time by the group through an election for that purpose, after due notice tothe PS, CF and the C/BSPMC Chairperson. Any such replacementshall not invalidate any previous documents entered for the Pakyaw Contract. In cases where the C/BSPMC shall supply construction materials, hand tools and equipment, the PS shall be responsible for safekeeping and maintaining these items and for ensuring that these are in good working order. Organized Pakyaw groups from other communities in the vicinity of the municipality with the experience of carrying out similar types of works may be allowed to participate in the Pakyaw contracts. Where there are more than one organized pakyaw groups within the community and the items of work will require only one pakyaw group, the pakyaw groups shall s ubmit quotations for the work based on the procedures used for community shopping11. The BAC shall evaluate the quotations of each pakyaw group in terms of meeting the technical specifications and quoted price. Award shall be made to the pakyaw group with the most responsive quotation. In no case may Pakyaw Groups be regular or licensed contractors or organizedby and/or under the management of a regular or licensed contractor. The award of Pakyaw Contracts either by Direct Contracting or shopping must be made through a BAC resolution or minutes of meeting clearly reflecting the Pakyaw Contracts and groups. 5.5.1. Identification of Items Covered by Pakyaw Contracts

The Project Supervisor shall be a hired foreman with knowledge and experience on construction. procedure but not necessarily at least three Pakyaw Groups

10

11 Evaluation

Work items undertaken by pakyaw contracts shall be included in the approved Community Procurement Plan (CPP). If in the earlier planning the Pakyaw contracting was not considered but was chosen by the C/BSPMC as a more practical or responsive approach to the implementation objective, the CPP should be updated. The PT shall identify these items of work and shall submit the same to the C/BSPMC Chairperson and the BAC for review and validation with the assistance of the TWG. 5.5.2. Conduct of Negotiations on Pakyaw Contracts The BAC Chairperson shall call for a meeting to discuss with the organized Pakyaw groups their respective scope of work and outputs based on the technical specifications. The PIT, PS, MIT, group leaders of Pakyaw groups with the assistance of the DAC and the Municipal Engineer shall discuss the work requirements, work to be assigned to each Pakyaw group, timetable for implementation, schedule for completion, cost of each Pakyaw contract and payment arrangements. The PT will prepare the minutes of this meeting and the C/BSPMC Bookkeeper will keep a copy of all the documents. 5.5.3. Contract Award The PT shall prepare three (3) copies the Pakyaw contract which shall include the breakdown of tools and equipment to be supplied by the C/BSPMC and shall submit the same to the C/BSPMC Chairperson for signature. The PT delivers the contract to the Pakyaw Group Leader who shall sign the contract conforme and returns two (2) copies to the PT. The PT shall submit copies of the procurement related documents to the ACT office and file the other copy for records purposes. 5.5.4. Contract Implementation The Pakyaw Group mobilizes and starts work within three (3) days from contract signing. The Project Implementation Team (PIT) and the Monitoring and Inspection Team (MIT) shall regularly monitor the execution of the contract. The Municipal Engineer and DAC, shall conduct regular inspection of the subproject to ensure that Project policies are complied and at the same time provide appropriate technical assistance to the community. Engineers from the RPMO or SRPMT shall conduct periodic or random inspection to validate implementation compliance. Payment of contract may be done through: (a) the preparation of a weekly or bimonthly payroll; or (b) upon submission of a request for payment from the Pakyaw group leader and endorsed by the PS. The Barangay Treasurer processes payments based on complete requirements including the work accomplished which are approved and signed by the C/BSPMC Chairperson. The Community Bookkeeper keeps a record of all files and documents. Table 6 provides a summary of all procedures for the pakyaw contracts and explain the functions of different personnel involved. 5.6. Community Bidding for Goods and Works Competitive, public or Community Bidding refer to the method of procurement which is open to participation by any interested and qualified party and which consists of the following processes: advertisement, pre-bid conference, receipt and opening of bids, evaluation of bids, postqualification, and award of contract. Competitive bidding opens up the procurement opportunity to a greater number of suppliers or contractors who compete among themselves in providing the best goods or services to the community for the best

value. This enables the community to obtain goods and infrastructure projects at the most advantageous terms. Community Bidding utilizes simplified tendering procedures where advertisement of bid opportunities is done locally (within the community, municipality or with other municipalities and provinces within the vicinity of the sub-project) by posting notices at KC-NCDDP designated billboards or bulletin boards, public offices of the MIAC and the PIAC, and NGOs, through local media such as radio or newspaper. The request for bids spells out the works or goods needed, the criteria for selection and the deadline for submission of bids. Simplified bidding documents are used as found in Annexes B and C. Bids are opened and evaluated at a designated date and venue presided over by the community Bids and Awards Committee (BAC). These are examined to determine whether they meet the minimum specifications mentioned in the bidding documents. Those that meet the minimum requirements are retained for further evaluation. Contract award is made to the bidder submitting the Lowest Calculated and Responsive Bid (LCRB) who passes the post-qualification evaluation and requirements. The award and the amount of the contract should be announced to all bidders. Contracting will follow the forms specified in this manual. The following procedures are applicable for all types of contracts procured under community bidding. 5.6.1. Identification of Items for Bidding The Procurement Team identifies the items to be procured through Community Bidding from the approved Community Procurement Plan (CPP) based on the technical specifications for goods and the Program of Work (POW) for works. This is then submitted to the Chairperson of the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards Committee (BAC) for review and validation. 5.6.2. Preparation/Revision of the Bidding Documents Bidding documents are documents issued by the BAC to provide prospective bidders all thenecessary information that they need to prepare their bids. Thesedocuments form part of the contract and clearly and adequately define, among others: i. ii. iii. iv. v.

The objectives, scope and expected outputs and/or results of the proposed contract; The technical specifications of goods to be procured/scope of work of the works to be constructed; Expected contract duration, the estimated quantity in the case of procurement of goods, delivery schedule and/or time frame; The obligations, duties and/or functions of the winning bidder; and The minimum eligibility requirements of bidders, such as track record to be determined by the C/BSPMC.

The PT and BAC are required to use the standard bidding documents found in Annex B as the standard format in the preparation of bidding documents. Upon approval by the C/BSPMC of the items to be procured, the PT prepares the following documents to be used: For Goods: i.

Invitation to Bid

ii. iii. i. ii. iii. iv.

Instruction to Bidders Bid Data Sheet Conditions of Contract Schedule of Requirements Technical Specifications of the goods to be procured Sample Forms

For Works: i. ii. iii. iv. v. vi. vii. vii.

Invitation to Bid (IB) Instruction to Bidders(ITB) Bid Data Sheet (BDS) Conditions of Contract (CC) Scope of Work (SOW) Drawings (if applicable) Bill of Quantities Sample Forms

The specifications and other terms in the bidding documents reflect only the minimum requirements or specifications required so that the bidder may be properly guided in clear and unambiguous terms on specific needs of the community in its procurement of infrastructure projects. A bidder can always submit a superior offer than that specified in the bidding documents. His bid, however, should not be given any premium or bonus during bid evaluation. The bidding documents must be prepared in time for presentation at the preprocurementconference. These documents must be finalized before the advertisement and/or posting ofthe Invitation to Bid. The C/BSPMC and the BAC shall review the bidding documents with the assistance of the Community Facilitator (CF) and the Deputy Area Coordinator. 5.6.3. Conduct of Pre-Procurement Conference The pre-procurement conference is the forum called by the BAC where all officialsinvolved inthe procurement meet and discuss all aspects of a specific procurement activity, whichincludes, among others the: i. Technical Specifications/Scope of Works; ii. Cost estimates; iii. Applicability and appropriateness of the recommended method of procurement andthe related milestones; iv. Bidding documents, and v. Availability of the pertinent budget release for the project. The pre-procurement conference is required to toensure that the procurement is in accordance with the CPP; confirms the availability of funds for the contract, determines: the readiness of the community to procure goods andservices, in terms of the legal, technical and financial requirements of the project and works in terms of:availability of the right-of-way (ROW), engineering plans and designs, ownership of affected properties, adherence to bidding documents, technical plans, specifications and scope of work to relevant general procurement guidelines;and the availability of all relevant documents in relation to their adherence to the law. The PT, BAC, C/BSPMC, and Technical Working Group (TWG) shall meet to discuss the procurement at hand and to ensure that all requirements are in order. During the same

meeting, the BAC will review and approve the contents of the Invitation to Bid (IB) and the Chairperson will sign the form for posting. The PT will prepare the minutes of the preprocurement conference and the C/BSPMC Bookkeeper will keep a copy of all the documents. 5.6.4. Posting/Advertisement of Invitation to Bid The Invitation to Bid (IB) serves as the notice to the public and all interested parties of theprocurement and bidding opportunities of the community.The posting and/or advertisement of the IB ensures transparency of theprocurement process, widest possible dissemination to increase the number ofprospective bidders, and intensify competition for the procurement activity or project. The IB may be advertised by the PT once for a minimum period of seven (7) days in any of the following: regional/provincial newspapers, provincial/municipal/ barangay hall bulletin boards, KC-NCDDP designated billboard or bulletin board, offices of Municipal InterAgency Committee (MIAC) and Provincial Inter-Agency Committee (PIAC) members, offices of non-governmental organizationsand conspicuous public places such as bus, jeep, tricycle terminals, public markets, etc. For larger contracts, the BAC may decide to extend the period for posting and advertisement to a maximum of fourteen (14) days to provide bidders ample time to prepare their bids. Where computer and internet facilities are available within or in the vicinity of the community, the IB shall also be posted in the Phil-GEPS website or in the regional or national KC-NCDDP website. For works, at least three contractors may also be given direct invitation to participate in the bid. The Invitation to Bid (CBPM Form D-5 for goods and CBPM Form D-1 for works)shall contain the following information: i. For goods: brief description of the goods to beprocured; ii. For works:Name and location of the contract to be bid and project background and other relevant information regarding the proposedproject, including a brief description of the type, size, major items, andother important or relevant features of the works; iii. A general statement on the criteria to be used by the community foreligibility check;examination and evaluation of bids; and post-qualification; iv. The date, time and place of the deadline for: a. The submission, receipt and opening of bids; and b. The pre-bid conference if any; v. The source of funding; vi. The period of availability of the bidding documents and the place where the bidding documents may be secured; vii. The contract duration or delivery schedule; viii. The name, address of the designated contact person; ix. Such other necessary information deemed relevant by the BAC. 5.6.5. Issuance of Bidding Documents Bidding documents are documents issued by the PT to provide prospective biddersall the necessary information that they need to prepare their bids. Prospective bidders must be allowed to acquirethe bidding documents in order toprepare for their eligibility requirements and bids. The PT shall promptly issue the bidding documents free of charge to theprospective bidders from the time the IB is first advertised until immediately beforethe deadline for submission of bids which is usually a period of two weeks from posting/publication. The

cost of reproduction and biddingdocuments preparation shall be charged to the administrative cost of the sub-project. Hence, a budget should be included in the Program of Works (POW) for bidding documents.The BAC must issue copies of the bidding documents to the Observers free of charge. The Bidding Documents shall contain the following information: For Goods: i. Invitation to Bid (IB) ii. Instruction to Bidders (ITB) iii. Bid Data Sheet v. Conditions of Contract v. Forms of Bid Security and Performance Security vi. Schedule of Requirements and Drawings (if applicable) vii. Technical Specifications viii. Form of Contract Agreement ix. Sample Forms For Works: i. Invitation to Bid (IB) ii. Instructions to Bidders (ITB) iii. Bid Data Sheet iv. Conditions of Contract (General and Special) v. Form of Contract Agreement (draft) vi.Scope of Work (SOW) vii. Engineering Drawings viii. Bill of Quantities ix. Form of Bid and Performance Securities x. Sample Forms 5.6.6. Conduct of Pre-Bid Conference The pre-bid conference is the initial forum where the BAC, PT and theprospective bidders discuss the different aspects of the procurement at hand, details of the contract and to clarify issues that bidders may raise. The pre-bid conference is to be done at least seven (7) days before the deadline for the submission of bids. Attendance to the pre-bid conference is not compulsory and should not be a ground for the disqualification of a bidder. Other members of the community who may attend the pre-bid conference include: representatives of the Project Implementation Team (PIT) and the Monitoring and Inspection Team (MIT). The Municipal Engineer (ME) and the Deputy Area Coordinator (DAC) shall attend to provide technical assistance to the BAC and act as resource person in case of requests for clarification. During the pre-bid conference, the following items may be discussed: i.

The eligibility requirements, technical and financial components of the contract to be bid, the bid evaluation procedure, evaluation criteria, postqualification procedures and possible causes of failure of the bidding; ii. Other requirements in the IB, thereplies to the bidders’ queries about the requirements, specifications andother conditions of the contract. iii. The written recording by the PT of minutes of the pre-bidconference, which shall

be available to all participants not later than five (5)days before the opening of bids. Practical Tip It is advisable that technical and knowledgeable officials attend the conference. The persons who actually formulated the scope of work, plans and technical specifications for the project should be present and among those representing the community. Bidders, on the other hand, should be encouraged to send representatives who are legally and technically knowledgeable about the requirements of the procurement at hand. It is also important that the bidders are given ample time to review the bidding documents prior to the pre-bid conference. Practical Tip The BAC must initiate discussions on contentious issues, most especially if the participating prospective bidders have no ready questions. It is probable that there are issues that may not be apparent in the bidding documents but are known to the representatives of the community. If these issues are brought out and openly discussed, prospective bidders will be able to prepare responsive bids, thus avoiding situations that may give rise to a failure of bidding due to lack of bids received or failure of bids to comply with all the bid requirements. This would also help prevent the birth contentious issues during the bidding itself. The BAC may still entertain requests for clarification(s) on any part of the biddingdocuments or for an interpretation by prospective bidders provided the followingrequirements are complied with: i. Requests for clarification should be in writing. ii. Requests for clarification should be submitted to the BAC at least two (2) calendar days after the pre-bid conference. 5.6.6.1. Supplemental/Bid Bulletins If there is a request for clarification during the pre-bid conference or thereafter, theBAC shall issue its response by issuing a supplemental/bid bulletin, to bemade available to all those who have properly secured the bidding documents at least two (2) calendar days after the submission of request for clarification.The supplemental/bidbulletinsshall clarify or modify any provision of the bidding documents. Any modification to the bidding documents must beidentified as an “AMENDMENT.” The BAC should also post the supplemental/bid bulletin in any of the following: community barangay hall bulletin boards, KC-NCDDP designated billboard or bulletin board, offices of non-governmental organizations. It will be the prospective bidders’ responsibility to ask for, and secure, these bulletins.Bidders who have submitted bids before a supplemental/bid bulletin is issued have tobe informed in writing and allowed to modify or withdraw their respective bids. The PT prepares the minutes of the pre-bid conference and posts it at the billboard or community bulletin board, offices of Municipal Inter-Agency Committee (MIAC) two (2) calendar days after the pre-bid conference. 5.6.6.2. Site Visit or Inspection

The BAC may organize a site visit or inspection of the community/project site for prospective bidders if this is critical for the costing and delivery of the goods/works to be procured. All prospective bidders are required to attend the site visit as this will enable them to offer a more realistic bid price. Prospective bidders who are not able to attend the scheduled site inspection may conduct their own inspection provided this is done before the submission of proposals.The C/BSPMC Chairperson shall issue a Certificate of Site Inspection to the representative of the prospective bidder and this shall be presented as a requirement in the opening of bids. 5.6.7. Preparation, Submission and Receipt of Bids The prospective bidder shall take the following considerations in bid submission: 5.6.7.1. Eligibility Check An Eligibility Check is a procedure used to determine if a prospective bidder is eligible toparticipate in the bidding at hand. In the eligibility check, the BAC shall use nondiscretionary“pass/fail” criteria. A prospective bidder is eligibleto bid for a particular project if it complies with the eligibility requirements prescribed. The absence, incompleteness orinsufficiency of a document shall render a prospective bidder ineligible and disqualified to bid for theparticular procurement. Eligibility Requirements for Goods and Services The prospective bidder shall comply with the following eligibility requirements: Legal i. The following manufacturers, suppliers, distributors, and/or service providers withlegal personality and capacity to undertake the contract are allowed to participate in the bidding: duly registered sole proprietors, partnerships, corporations or cooperatives duly registered with the Cooperatives Development Authority (CDA). ii. Department of Trade and Industry (DTI) business name registration in the case of Single Proprietorships; or Security and Exchange Commission (SEC) registration certificate, in the case of Partnerships or Corporations; orCDA Registration, in the case of cooperatives; iii. Valid and current Mayor’s permit/municipal license from the bidders principal placeof business. Technical i.

the experience of having completed, a single contract or an aggregate of similar contracts that is similar to the contract to be bid or the estimated budget for the package to be bid, andwhose value, must be at least fifty percent (50%) of the project cost estimate. (CBPM Form D 5-2) A contract is similar to the contract to be bid if it involves goods or relatedservices of the same nature and complexity as those which are the subject ofthe Community Biddingconcerned.This is to assure the community that the prospective bidder has the technical andfinancial capability to undertake the contract to be bid.

ii. A statement of the prospective bidder of all its ongoing and completed government and private contracts within the period specified in the IB, including contracts awarded but not yet started, if any (please refer to CBPM Form D 53). Financial The prospective bidder’s audited financial statements, stamped “received” by the BIR or its duly accredited and authorized institutions, for theimmediately preceding calendar year, showing, among others, the prospective bidder’s total and current assets and liabilities;

i.

ii. The prospective bidder’s computation of its Net Financial Contracting Capacity (NFCC) (CBPM Form D 5-4) that is at least equal to the project cost estimate, calculated as follows: NFCC =

[(Current assets minus current liabilities) (K)] minus the value of all outstanding projects under ongoing contracts, including awarded contracts yetto be started.

Where: K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years The NFCCestablishes thebidder’s liquidity, its capacity to absorb the additional obligations in connection withthe contract to be bid and to finance its implementation/completion. Eligibility Requirements for Infrastructure Projects Legal i. The following contractors with legal personality and capacity to undertake the contract are allowed to participate in the bidding: duly licensed sole proprietors, partnerships, corporations or cooperatives duly registered with the Cooperatives Development Authority (CDA). ii. A valid license issued by the Philippine Contractors Accreditation Board (PCAB); Technical i.

The experience of having satisfactorily completed a single contract similar to the contract to be bid, and whose value must be at least fifty percent (50%) of the estimated budget for the contract to be bid (CBPM Form D 5-2);

ii. A statement of the prospective bidder of all its ongoing and completed government and private contracts within the period specified in the IB, including contracts awarded but not yet started, if any (please refer to CBPM Form B 5-3) iii. A statement on the: a. Availability of key personnel, such as project managers, project

engineers, and foremen, that may be used forconstruction contracts; and b. Availability of equipment that it owns, has under lease, and/or hasunder purchase agreements, that may be used for constructioncontracts, provided that ownership of equipment is not a requisitefor eligibility Financial i.

The prospective bidder’s audited financial statements, stamped “received” by the BIR or its duly accredited and authorized institutions, for the immediately preceding calendar year, showing, among others, the prospective bidder’s total and current assets and liabilities;

ii. The prospective bidder’s computation of its Net Financial Contracting Capacity (NFCC) (CBPM Form D 5-4) which should at least be equal to the estimated budget of the contract, calculated as follows: NFCC = [(Current assets minus current liabilities) multiplied by (K)] minus Thevalue of all outstanding works or projects under ongoing contracts, includingawarded contracts yet to be started. Where: K = 10 for a contract duration of one year or less, 15 for a contract durationof more than one year up to two years Example Given: Current Assets = P 3,000,000.00 Current Liabilities = P 500,000.00 Value of Outstanding Works = P 4,000,000.00 Contract Duration = 1 year NFCC = [(P3,000,000 – P500,000) x 10] –P4,000,000 = P 25,000,000 – P 4,000,000 = P 21,000,000.00 The NFCCestablishes thebidder’s liquidity, its capacity to absorb the additional obligations in connection withthe contract to be bid and to finance its implementation/completion. 5.6.7.2.Technical Proposal A Bid refers to a signed offer or proposal to undertake a contract submitted by abidder in response to the requirements stated in the biddingdocuments. “Bid” is also equivalent to and may be used interchangeably with“Proposal”.A Bid has two components, the Technical Proposal and theFinancial Proposal. The Technical and Financial Proposals shall be contained in a single sealed bid envelope. The Technical Proposal shall contain, at the minimum, the following technical information/documents: For Goods: i.

The Bid Security as to form, amount and validity period (CBPM Form D 5-5);

ii. Authority of the signatory (Board Resolution ifthe bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is aPartnership, or a Special Power of Attorney (SPA) issued by the GeneralManager or Proprietor if the bidder is a sole proprietor; i. Delivery schedule; iv. Manpower requirements, if applicable; v. After-sales service/parts, if applicable; vi. Technical specifications; Although the community is not allowed to refer to brand names in setting technicalspecifications/criteria in the bidding documents, a bidder may be required tostatethe brand of the goods offered. However, in the evaluation of bids there shallbe no preference to a particular brand name. vii. Certificate from the bidder under oath of its compliance with existing labor laws and standards, in the case of procurement of services (CBPM D 5-7); vii. Other documents/materials as stated in the Instructions to Bidders (ITB). For Works: i.

The Bid Security as to form, amount and validity period (CBPM Form D 55); ii. Authority of the signatory (Board Resolution ifthe bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is aPartnership, or a Special Power of Attorney (SPA) issued by the GeneralManager or Proprietor if the bidder is a sole proprietor; iii. Construction schedule (bar chart or PERT/CPM) and S-curve; iv. Manpower schedule (weekly or monthly scheduling of skilled and unskilled workers, including the Project Manager, Project Engineers, Materials Engineers,and Foremen); v. Construction methods (narrative description of how the contractor will undertakethe works under the contract; vi. Organizational chart for the contract to be bid, vii. List of contractor’s key personnel (viz. the Project Manager, Project Engineers,Materials Engineers, and Foremen), to be assigned to the contract to be bid, theircomplete qualification and experience data, and thekey personnel’s signedwritten commitment to work on the contract once awarded; to the contractor (CBPM Form D 5-10, 5-11); viii. List of contractor’s equipment units pledged for the contract to be bid, which areowned (supported by proof/s of ownership), leased, and/or under purchaseagreements (with corresponding engine numbers, chassis numbers and/or serialnumbers), supported by certification of availability of equipment from theequipment lessor/vendor for the duration of the contract (CBPM Form D 5-9); ix. Equipment utilization schedule (weekly or monthly scheduling of the minimum equipment required for the contract); x. Certificate of site inspection signed by the C/BSPMC Chairperson (CBPM Form D 5-1); xi. Construction safety and health program of the contractor; xii. Certificate from the bidder under oath of its compliance with existing labor lawsand standards (CBPM Form D 5-7);

What is a Special Power of Attorney ? A Special Power of Attorney (SPA) is a legal document where a principal, in this case, a bidder, grants authority to an agent (Attorney-in-Fact) who is an officer or staff of the firm to represent him in certain procurement related transactions in case he is not available. For KC NCDDDP, the SPA can be used solely for the purpose of representing the principal during the conduct of procurement activities (bid submission, attendance to pre-bid conference and bid opening) but not in the signing of the contract, its implementation and execution. For infrastructure projects, no bidder shall be allowed to submit an absolute SPA authorizing him to use the valid contractors license of another person or firm. 5.6.7.3. Financial Proposal The Financial Proposal shall contain the following financial information/documents, at the least: For Goods: i.

The financial proposal submission sheet, which includes the bid prices and the bill of quantities for procurement of goods, or scope of work for procurement of services, and the applicable price schedules; and ii. The recurring and the maintenance costs, if applicable. For Works: i. Bid prices in the Bill of Quantities in the prescribed Bid Form; ii. Detailed estimates including a summary sheet indicating the unit prices of construction materials, labor rates and equipment rentals used, indicating also thedirect and indirect costs, in coming up with the bid; and iii. Cash flow by the quarter and payments schedule. The prospective bidder shall prepare and submit the eligibility requirements, technical and financial proposals in three separate envelopes duly marked inside a single sealed envelope on or before the deadline given by the BAC as provided for in the IB. The envelope must be marked in the following manner: (Name of Bidder) Community Bidding for ______ (name ofthe contract to be bid) KC-NCDDP Barangay Sub-Project Management Committee Address of Barangay 5.6.7.4. Submission and Receipt of Bids The PT receives the sealed bids at the designated location in the IB. If the bid is submitted before the deadline stipulated in the IB, the PT member records receipt in the logbook with the following information: a. Date and time received b. Name of goods for procurement/Name of Project or Contract to be Bid c. Name of Supplier/Contractor

d. Name and signature of procurement team member receiving the sealed enveloped The sealed bids and logbook will be placed in a bid box at C/BSPMC office inside a secure filing cabinet. Any technical or financial bid submitted after the deadline forsubmission and receipt of bids prescribed by the BAC shall be declared “Late” andshall not be accepted. 5.6.8. Bid Opening and Evaluation Before the prescribed date of the opening of bids, the BAC shall invite the following to witness the process as observers: the LGU COA Auditor, Barangay Captain, local government officials, Area Coordinator, Deputy Area Coordinator, Regional Infrastructure Engineer, Barangay Audit and Inventory Committee Head, or where available representatives from Civil Society Organizations (CSOs) or community observers. The invitation shall be in writing and shall be sent at least one week before bid opening. A day before the bid opening, the PT shall prepare the barangay/community hall for the public opening of bids. For adjacent communities or far flung and inaccessible areas within a municipality, it is advisable that bid opening is done at the municipal hall in order to allow bidders to attend. On the day of the bid opening, the PT shall bring the logbook and the bid box containing the sealed envelopes. The bid box shall be locked. The Eligibility requirements must be marked and must be received from the bidder together with theTechnical and Financial bid duly marked in a single sealed envelope on or before thedeadline as stated in the IB. Any eligibility, technical or financial bid envelope submitted after the deadline forsubmission and receipt of bids prescribed in the IB shall be declared “Late” andshall not be accepted by the BAC. The BAC Chairperson shall determine the presence or absence of a quorum and shall declare a quorum if there is one. The Chairperson shall open the padlock of the bid box and shall proceed with the opening of the bid envelope. What is an Ineligible Bid ? An ineligible bid is a proposal submitted by a supplier/contractor that is considered disqualified due to the following reasons: (a) late submission; (b) inability to meet the eligibility requirements such as, non-submission of correct bid security, or lack of eligibility or technical requirements, among others. 5.6.8.1. Conduct of Eligibility Check The BAC shall read in public the contentsof the eligibilitydocuments, and shall examine each prospective bidder’s eligibility requirements or statements. It shall determine the presence or absence of the required eligibility requirements against a checklist using non-discretionary“pass/fail” criteria.A prospective bidder is eligibleto bid for a particular project if it complies with the eligibility requirements prescribed. The absence, incompleteness orinsufficiency of a document shall render a prospective bidder ineligible to bid for theparticular procurement.

The BAC shall declare prospective bidders as either “eligible” or “ineligible”,based on its findingsand inform them accordingly. The eligibility documents shall be marked as such, and these markingshall be countersigned by the BAC Chairperson. The BAC may prepare a pro-forma Notice ofEligibility (CBPM Form E-11) and a Notice of Ineligibility (E-12), which will be duly accomplished by the PT and signed by the BAC members present. In case aprospective bidderis declaredineligible, theNotice ofIneligibility shallstate the reason forsuch ineligibility.The Notice will bereceived officiallyby the Bidder’sauthorized representative. The BAC shall inquire from ineligible bidders who are present during theEligibility Check whether or not they intend to file a motion for reconsideration. Those who are present at the time of opening ofeligibility requirements, will be notified verbally while those who are not present will be informed in writing. If they signify their intention to do so upon verbal notification orwritten notice, the BAC shall keep the envelope containing theeligibility requirements and re-seal the same in the presence of all theparticipants. These shall be deposited in the Bid Box or any other securedplace or location, together with the Technical and Financial bid,ensuring that the latter documents remain sealed. The BAC shall have three days to resolve the motion for reconsideration. The BAC may return theEligibility, Technicaland Financial Bidenvelope of an “ineligible” bidder if itdoes not intend to file arequest forreconsideration orexpressly waives itsright to file amotion for reconsideration. Even if only one prospective bidder passes the eligibility check, the bidding process continues. Again, if the eligible bidder submits a bid that is found to be responsive to the bidding requirements, its bid shall be declared as a Single Calculated and Responsive Bid (SCRB) and considered for contract award. If no prospective bidder is found to be eligible, the BAC should declare the bidding a failure. The BAC then reviews the terms and conditions stated in the IB. If warranted, it changes any of the terms and conditions, including the quantities or specifications, provided that the estimated budget cost is left unchanged. It must, thereafter, conduct a re-bidding, in the process formulating a new IB and posting and publishing this as required. All bidders that have initially responded to the IB in the first bidding shall be allowed to submit new bids. Should a second failure of bidding occur and the C/BSPMC finds that there is a need to evaluate the responsiveness of the estimated budget for the contract and to revise it, the C/BSPMC should conduct another public bidding with re-advertisement and/or posting. Alternatively, the C/BSPMC may enter into direct contracting with a legally, technically, and financially capable constructor. However, if the C/BSPMC resorts to direct contracting, the terms,conditions, and specifications of the project as well as the estimated budget cost must bemaintained. 5.6.8.2. Preliminary Review of Technical and Financial Proposals The BAC shall proceed with the opening of the technical proposal of the eligible bidders, todetermine each bidder’s compliance with the documents that are required tobe submitted for the technical component of the bid. The opening shall alsobe done in public. TheBAC shall check the submitted technical documents of each bidder against a checklist of required technical documents to ascertain if they are all present, using non-discretionary “pass/fail” criteria. If the preliminary examination is not

completed in one day, all documents must be kept under lock and key in the designated bid box stored in a filing cabinet at the barangay hall. If a bidder submits the required document and meets the eligibility criteria, it shall be rated“passed” for that particular requirement. Otherwise, it shall be rated as“failed”.In case one or more of the above-required documents in the Technical Proposal is missing, incomplete or patently insufficient, the bid shall bedeclared as “failed” and the documents are immediately returned to the bidder concerned,together with the Financial Proposal. A bidderdetermined as “failed” has three (3) calendar days upon receipt of writtennotice or, if present at the time of bid opening, upon verbal notification, withinwhich to file a request for a reconsideration with the BAC. Immediately after determining compliance with the technical requirements, the BAC shall open the Financial Proposal ofeach remaining technically complying bidder whose submitted technical requirements were rated “passed” on the same day. The BAC shall determinewhether one or more of the requirements of the Financial Proposal is missing,incomplete or patently insufficient. If the Financial Bid is complete, the BAC shall rate it “passed” andshall proceed with the evaluation of the Bid. Only bids that are determined tocontain all the bid requirements for both Technical and Financial componentsshall be rated “passed” and shall be considered for evaluation andcomparison. All members of the BAC shall initial every page of the original copies of allbids received and opened. The entire preliminary review process shall be completed within the day of the deadline of bid submission. The PT shall prepare the minutes ofthe bid opening (CBPM Form E-5) immediately after the bid opening or not later than three (3) calendar days after thebid opening date, so that copies thereof could immediately be sent to the BACmembers, observers, bidders and other interested parties. A prospective bidder foundineligible or whose bid was declared failed has three (3) calendar days from receipt of the Noticeof Ineligibility/Failure, within which to file a written request for reconsideration beforethe BAC. The BAC has thee (3) calendar days after it receives a letterrequesting for reconsideration, within which to resolve such request. In themeantime, it will hold on to the Technical and Financial envelope of theprospective bidder until the request for reconsideration is resolved. The BAC may return the Eligibility, Technical and Financial envelope ifthe prospective bidder is declared “ineligible” and expressly waives his right to file arequest for reconsideration. Such waiver shall be made in writing, to be executed bythe authorized representative of the ineligible bidder. A bidder may modify its bid, provided that this is done before the deadline for the submission and receipt of bids. If such bidder modifies its bid, it shall not be allowedto retrieve its original bid, but shall only be allowed to send another bid equallysealed, properly identified, linked or related to its original bid and marked as a“MODIFICATION” of the original, and stamped “RECEIVED” by the BAC. Bidmodifications received after the applicable deadline will not be considered and mustbe returned to the bidder unopened. Any discount should formpart of the bid submission in the financial proposal. A bidder may, through a letter, withdraw its bid before the deadline for the receipt ofbids. A bidder may also express its intention not toparticipate in the bidding through a letter which should reach and be stamped“RECEIVED” by the BAC before the deadline for the receipt of bids. A bidder thatwithdraws its bid shall not be permitted to submit another bid, directly or indirectly,for the same contract. A bidder that withdraws its bid

prior to the deadline for submission of bids, for ajustifiable cause, does not forfeit its bid security. 5.6.8.3. Bid Security A bid security is a guarantee that the successful bidder will not default on its offer, and enter into contract with the community asindicated in the IB, from receipt of the Notice of Award (NOA), and furnish the performance security. A bid security must be enclosed with every bid. It must be operative on the date ofbid opening.Failure to enclose the required bid security in the form and amount prescribed by the community shall automatically disqualify the bid concerned. Forms and Corresponding Amounts of Bid Security The bid security shall be in any of the following forms, with the correspondingrequired amount: FORM OF BID SECURITY a. Cash, certified check, cashier’s check/manager’scheck, bank draft; or b. Bank guarantee confirmed by a reputable local bank; or c. Bid Securing Declaration

MINIMUM AMOUNT 2% of Bid 2 % of Bid

Bid Securing Declarations may be used for contracts below 2M procured through community bidding. Bid Securities in the form of cash or (manager’s check or cashier’s check) must be deposited in the C/BSPMC Account. All checks and bank guarantees shall be issued in favor of the C/BSPMC of the community/barangay. Personal checks are not acceptable as bid security. Bank guarantee as bid security shall be submitted as part of the bidding documents. The corresponding deposit slips shall be submitted as part of the bid requirements. Bank Guarantee as bid security shall be submitted as part of the bidding documents. The BAC determines the period of validity of the bids and must be included in the bidding documents. The validity period should not be more sixty (60)calendar days from the date of the opening of bids.TheBAC may extend the period of validity of the bids and the bid securities byrequesting the same in writing from all those who submitted bids before the expirydate of the same. Bidders, however, shall have the right to refuse to grant suchextension without forfeiting their bid securities. The bidders who refuse to grant the BAC’s request for an extension of the period of validity of their bid and bid securitywill have the same returned to them. However, they aredeemed to have waived their right to further participate in the bidding. A Bid Securing Declaration is an undertaking by a prospective bidder, committing to abide with the bidding conditions including sanctions in the event it violates any of the following conditions: i.

Withdraws its bid during the period of bid validity required in the bidding documents; or ii. Fails or refuses to accept the award and enter into contract or perform any and all acts necessary forthe execution of the contract, in accordance with the bidding documents, after having been duly notified of the acceptance of its Bid during the period of bid validity.

The Bid Securing Declaration shall comply with the standard format found in CBPM FormE 5-6.The following sanctions shall be applied in case of commission of the abovementioned acts: i.

Penalty of automatic blacklisting for two (2) years in all KC-NCDDP procurement activities; and ii. Payment of a fine equivalent to the difference between the evaluated bid price and the project cost estimate. No bid securities shall be returned to bidders after the opening of bids and beforecontract signing, except under any of the following circumstances: i.

When the bidders failed to comply with any of the requirements to be submitted in the bid proposal, or ii. When the bidders were post-disqualified and submitted a written waiver of its right to file a motion for reconsideration and/or protest. Bid securities shall be returned only after the bidder with the LCRB has signed thecontract and furnished the performance security, but in no case later than theexpiration of the bid security validity period indicated in the ITB. A bidder’s bid security may be forfeited when: i. The bidder withdraws its bid beyond the deadline; ii. The bidder does not accept correction of arithmetical errors; iii. The bidder being considered for award does not accept the award or does Notsign the contract within the period prescribed in the bidding documents; 5.6.8.4. Detailed Evaluation of Bid The purpose of detailedbid evaluation is to determine the Lowest Calculated Bid (LCB). This isdone by: i.

Establishing the correct calculated prices of the bids, through a detailed evaluation of the financial component of the bids; and ii. Ranking of the total bid prices as so calculated from the lowest to the highest. The bid with the lowest price shall be identified as the LCB. The entire evaluation process for the evaluation of bids for the procurement of goods must becompleted in not more than two (2) calendar days from the deadline for receiptof proposals. The BAC should exert effort tocomplete the process even before the lapse of the 2-day period, as this willexpedite the procurement process. After the preliminary examination of bids, the BAC, or through the TWG, shall immediately conduct a detailed evaluation of all bids rated “passed,” using a nondiscretionary pass/fail criteria, as stated in the IB, which shall include a consideration of the following: i.

The bid must be complete. Partial bids or bids not addressing or providing all of therequired items in the bidding documents including, where applicable the bill of quantities shall be considered non-responsiveand automatically disqualified. If a required item is provided in the financial proposal, but no price isindicated, the same shall be considered as non-responsive. Specifying a

“0”(zero) for the said item, however, would mean that it is being offered for freeto the community and such bid should be considered.A partial bid will not be considered non-responsive and disqualifiedif the IB specifically allow partial bids. ii. For works, the bid must be balanced. The bid for each item of work must be carefully examined to check if there are no unreasonable deviations from the Engineer’s Estimate and that there are no mathematically or materially unbalanced work items. If there is any finding of an unbalanced bid, the BAC, may ask the bidder to explain the bid. If the BAC with the assistance of the TWG is satisfied with the explanation of the bidder, then the BAC will proceed with the other considerations for bid evaluation. If there is a finding of an attempt to defraud, the BAC shall recommend to the C/BSPMC Chairperson to reject the bid. iii. Computational errors will be corrected. Minor arithmetical corrections to consider computational errors and omissions shall be made to enable propercomparison of all eligible bids. Discounts shall be incorporated in the bid price as provided in the bidding documents. Any adjustment shall be calculated inmonetary terms to determine the calculated prices. iv. All bids shall beevaluated on equalfooting. For thispurpose, all biddersshall be required toinclude the cost of alltaxes, such as, but notlimited to, value addedtax (VAT), income tax,local taxes, and otherfiscal levies and dutieswhich shall be itemizedin the bid form andreflected in the detailedestimates. Such bids,including said taxes,shall be the basis forbid evaluation andcomparison. The BAC should therefore presume that the financial proposals submitted by the bidders include taxesand other costs, such as freight, insurance, and bank charges, in theevaluation of bid. Hence, a re-computation to factor in these things isinappropriateand unnecessary. A bidder is allowed to submit an offer which provides for superior specifications and/orbetter terms and conditions to the community at no extra cost. However, the BAC should notgive any bonus, credit or premium to such offer in the bid evaluation. v. Bid prices in words, unit prices, and unit cost in the bill of quantitiesshall prevail in case of discrepancy. In case of discrepancies between: (a) bid prices in figures and in words, the lattershall prevail; (b) total prices and unit prices, the latter shall prevail; (c) unit cost inthe detailed estimate and unit cost in the bill of quantities, the latter shall prevail. Based on the detailed evaluation of bids, those that comply with the abovementionedrequirements shall be ranked in the ascending order of their total calculated bidprices, as evaluated and corrected for computational errors, discounts and othermodifications, to identify the LCB. Total calculated bid prices, as evaluated andcorrected for computational errors, and other modifications, which exceedthe estimate shall be disqualified.

What is an Unbalanced Quotation/Bid ? An Unbalanced Quotation/Bid is a bid where part of the cost of one work item is shifted to another item of work making the cost of such item unreasonably high and other items unreasonably low. There are two types of Unbalanced Quotation/Bid. The first is a mathematically unbalanced bid where lump sum or unit items appear to be unreasonably high in the early stages of the project (front loading) to justify a high advance payment and to collect as much of the contract price leaving very limited funds to complete the latter part of the project. The second is a materially unbalanced bid where prices for unit items that require greater quantities are overpriced while prices for those requiring lesser items are underpriced significantly. The BAC shall carefully evaluate the unit prices submitted by the bidders to ensure that there are no unreasonable deviations from the Engineer’s Estimate. When this occurs, the BAC with the assistance of the TWG shall conduct a detailed review of the unbalanced bid in terms of quantities and prices of the work items for errors in the interpretation of plans or estimates, frontloading, anticipated overruns or underruns and excessive overhead expenses and profit. Where there is finding to defraud, the unbalanced bid shall be rejected outright. Where all bidders submit unbalanced bids, the BAC shall declare a failure of bidding and conduct a second round of bidding or enter into negotiations, where applicable. 5.6.8.5. Abstract of Bids After all bids have been received, opened, examined, evaluated and ranked, the BAC shall prepare the corresponding Abstract of Bids. All members of the BAC shall sign the Abstract of Bids and attach all the bids with their corresponding bid securities and the minutes or proceedings of the bidding. TheObservers who are present may also sign the Abstract of Bids if, in their independentobservation, the bidding activity conducted by the BAC followed the correct procedure. The Abstract of Bids shall contain thefollowing: i. Name of the contract and its location, if applicable; ii. Time, date and place of bid opening; and iii. Names of bidders and their corresponding calculated bid prices arranged from lowest to highest, the amount of bid security and the name of the issuingentity. If no bid complies with all bid requirements, the BAC should declare thebidding a failure.The BAC then reviews the terms and conditions stated in the IB. Ifwarranted, it may change any of the terms and conditions, including thequantities or specifications, provided that the estimated cost is left unchanged.The BAC must, thereafter, conduct a re-bidding, in the process formulating anew IB and posting and publishing this as required. All bidders who have initially responded to the IB and have been declaredeligible in the first bidding shall be allowed to submit new bids. Should a second failure of bidding occur and the C/BSPMC finds that there is aneed to evaluate the responsiveness of the estimated cost, and so decides to revise the estimates cost accordingly, the C/BSPMC should conduct another public bidding with readvertisementand/or posting. Alternatively, the C/BSPMC may enter into community direct contracting with a legally, technically, and financially capablesupplier/contractor. However, if the community resorts todirect contracting, the terms, conditions, and specifications of theproject as well as the estimated cost must be maintained. 5.6.9. Postqualification Post-qualification is the process of verifying, validating and ascertaining all thestatements made and documents submitted by the bidder with the LCB. The post-qualification process

must be conducted and completed within two (2)calendar days from the determination of the LCB. During this process, the BAC with the assistance of the TWG verifies and validates the bidder’s compliance with the legal, financial andtechnical requirements of the bid as to their genuineness andtheir responsiveness to the requirements. The legal review verifies that all required licenses, permits and other documents submitted are in order. For works, tthe legal requirements verifies that the bidder is not included in any government “blacklist,” and the submitted PCAB license belongs to the bidder and is valid for the period of bidding. For goods, the technical requirements are verified to prove compliance of the goods and services offeredwith the requirements of the contract and bidding documents (supplier’s stated expertise and experience, testing and inspection of thegoods/products, after-sales and/or maintenance capabilities,authenticity and sufficiency of the bid security as to type, amount, form and wording, and validityperiod. For works, the technical requirements are verified to ascertain the veracity of documents submitted to prove the bidder’s stated competence and experience with regards to the subject contract and its bidding documents, as well as the competence and experience of its key personnel to be assigned to theproject, to ensure that these meet the minimum requirements. Verification also shall include the availability and commitment, and/or inspection and testing, of equipment units owned or to be leased by the bidder, as well as checking the performance of the bidder in its ongoing government and private contracts, e.g., examination of the Construction Schedule, Construction Methods, Equipment Units and Equipment Utilization Schedule, List of projects that are on-going, completed and to be started; statement on similar projects to ensure that these meet the minimum requirements. Validation shall also be conducted on on-going contracts to check if there are any negative slippages of at least fifteen percent (15%); or substandard quality of work as per contract plans and specifications; or unsatisfactory performance of his obligations as per contract terms and conditions, at the time of inspection; or there are overlaps in the proposed utilization of the minimum required equipment with those equipment in the ongoing works of the contractor; or that the minimum required experience of the bidder’s key personnel were not met; All of which are grounds for disqualification if found by the BAC to be due to the bidder’s fault or negligence. Finally, the BAC shall also ascertain the sufficiency of the bid security as to type, amount, form and wording, and validity period. For goods, the financial requirements are validated to check the Net Financial Contracting Capacity (NFCC) in the amount specified over the periodstipulated in the ITB. This is to ensure that the bidder can sustain theoperating cash flow of the transaction. TheBAC/TWG conducts a site inspection of the bidder’s place of business and may also test samples for compliance with specifications andperformance levels, where applicable. For works, the financial requirements are validated to check 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 bidder’s NFCC, as recalculated considering developments in the bidders’ other projects, whenever applicable. This is done to ensure that the bidder can sustain the operating cash flow of the contract. This process involves: the examination of the Bill of Quantities, Detailed Estimates and Cash Flow; and the Bureau of Internal Revenue (BIR) received audited financial statement. If the TWG conducts the post-qualification, it prepares a Post-qualificationReport to be submitted to the BAC. The Report shall contain, among others,the activities undertaken with regard to the post-qualification process,feedback from inquiries conducted, and the

results of any tests conducted bythe TWG or an accredited government testing center, where applicable.The BAC reviews the Post-qualification Report submitted by the TWG.The BAC determines whether the bidder with the LCB passes all the criteria forpostqualification.If the LCB passes the post-qualification, the BAC declares it as the Lowest Calculated and Responsive Bid (LCRB). After the BAC has determined the LCRB, the PT, with the assistanceof the TWG, prepares the BAC Resolution (Resolution to Award) (CBPM Form E-16) declaring the LCRB andthe corresponding Notice of Award (NOA) (CBPM Form E-17) to the said bidder informing it of its successful postqualification. If the bidder with the LCB fails to pass post qualification, the BAC shall immediately notify the said bidder in writing of its postdisqualificationand the grounds for it. Thepostdisqualified bidder shall have three (3) calendar days from receiptof the said notification to request from the BAC, if it so wishes, areconsideration of its decision. The BAC shall evaluate the request forreconsideration, if any, using the same non-discretionary criteria, and shallissue its final determination of the said request within seven (7) calendar daysfrom receipt thereof. Immediately after the BAC has notified the first bidder of its postdisqualification,and notwithstanding any pending request for reconsideration, the BAC shall initiate and complete the same post-qualificationprocess on the bidder with the second LCB. If the second bidder passes thepost-qualification, and provided that the request for reconsideration of thefirst bidder has been denied, the BAC shall declare the second bidder as thebidder with the LCRB. The C/BSPMC shall then award the contract to it. If the second bidder, however, fails the post-qualification, the procedure forpost-qualification shall be repeated for the bidder with the next LCB, and soon until the LCRB, is determined for award. If no bidder passes post-qualification, the BAC shall issue a Resolutiondeclaring a failure of bidding.The BAC shall then proceed with the procedures specified in the last paragraph of Section 5.6.8.5. 5.6.10. Prior Review of Contract Prior to the signing of the contract with the LCRB, the C/BSPMC Chairperson shall request for clearance to award and to conduct prior review for contracts within the thresholds specified under Table 1 of Section 4.3. For Community Bidding for goods and works these are: Regional Project Management Office (RPMO) – contracts more than P 500,000 and less than P 2.0 M National Project Management Team (RPMO) - contracts more than P2.0M Asian Development Bank/World Bank - the first three contracts for the first year subprojects in each of the three new Regions (I and III). This shall be adjusted in the succeeding years based on the findings of the post review and the assessment of performance and risk analysis for the whole of Component 1. In the request for No-Objection-Letter (NOL), the PT shall attach photocopies of all the contract documents with the exception of the letter itself which should be submitted in its original form.

The staff of the RPMT, NPMT and the ADB/WB shall review all the contract documents and shall recommend the issuance of the NOL if it finds the docum ents in order or shall notify the C/BSPMC Chairperson of its findings and reasons for deferring the issuance of the NOL. The C/BSPMC Chairperson shall act upon these findings immediately. 5.6.11. Contract Award 5.6.11.1. Contract Approval and Issuance of Notice of Award The BAC shall issue a Resolution (CBPM Form E-16) recommending to the C/BSPMC Chairperson to award the contract to the bidder with theLCRB at its submitted bid price or itscalculated bid price, whichever islower.Prior to the expiration of the period ofbid validity, the C/BSPMC Chairperson should notify thesuccessful bidder in writing that itsbid has been accepted, through aNOA (CBPM Form E-17). The PT consolidates all the documents and/or records of theproceedings of the BAC with regard to the procurement at hand, and attachesthe same to the BAC Resolution.ThePT drafts the BAC Resolution recommending award.The BAC approves and signs the Resolution Recommending Award, andtransmits the same to the C/BSPMC Chairperson who acts on the recommendation.The bidder with the LCRB accepts the NOA. For contracts requiring prior review, the C/BSPMC Chair shallwait until the NOL has been issued by the appropriate authority before the NOA is sent to the winning bidder. The NOA shall be posted in the Phil-GEPs website, where computer and internet facilities are available within or in the vicinity of the community or in the KC-NCDDP regional or national website. If the bidder refuses to accept the award within the bid validity period, theBAC shall forfeit the bid security of the bidder. The BAC may also impose on the erringbidder the penalty of suspension for one (1) year from participation in KC-NCDDPprocurement for the first offense, and suspension for two (2) years for the secondoffense. 5.6.11.2. Contract Signing and Posting of Performance Security Upon receipt of the NOA/NOL, where applicable, the BAC schedules the signing of the contract with the winning bidder who will then post the required performance securityand submit other documentary requirements. The C/BSPMC Chairperson signs the Contract (three copies) upon submission of the performance security and the signing of the contract by the winning bidder (two copies)within ten (10) calendar days from receipt of the NOA. The PT forwards the contract together with the rest of the supporting documents for filing and safekeeping. A performance security is a guarantee that the winning bidder will faithfully performits obligations under the contract prepared in accordance with the bidding documents.It must be posted in favor of the community, and will be forfeited inits favor in the event it is established that the winning bidder fails to perform any ofitsobligations under the contract. The winning bidder should furnish the community with the performance security inaccordance with the Conditions of the Contract, and in the form prescribed in the biddingdocuments within a maximum period of ten (10) calendar days from thereceipt of the NOA, and in all cases upon the signing of the contract. The performance security forms part of the contract. The following steps are followed in the posting of the performance security:

1. The bidder with the LCRB posts a performance security. In so doing, it must comply with the following conditions: i.

The performance security must be executed in the form prescribed bythe community in the IB; and ii. The performance security must at least be co-terminus with the period of completion of the contract. 2. The community accepts the performance security and indicates such posting and acceptance by attaching the appropriate form to the contract. Forms and Corresponding Amounts of Performance Security The performance security shall be in any of the following forms, with the correspondingrequired amount: FORM OF PERFORMANCE SECURITY a. Cash, certified check, cashier’s check/manager’scheck, bank draft; or b. Bank guarantee confirmed by a reputable local bank; or

MINIMUM AMOUNT 5% of Contract Price 10% of Contract Price

All checks and bank guarantees for performance security shall be issued in favor of the Chairperson of the C/BSPMC and shall be deposited in the C/BSPMC Account. The winning bidder must choose whichamong the preferred forms it shall submit. Practical Tip A deficient performance security should be rejected outright by the community regardless of the amount of its deficiency. The community should not accept the performance security furnished by the winning bidder if it is deficient as to the minimum amount prescribed above, even if the deficiency is minimal and insignificant. There shall be a corresponding change in the amount of the Performance Security posted by the winning bidder in the following instances: (a) issuance of an Amendment to Order/Variation/Change Order- The winning bidder shall post an additionalperformance security following the schedule above to cover any cumulativeincrease of more than ten percent (10%) over the original value of thecontract as a result of an amendment to order/variation/change order. The percentages inthe schedule above must be applied to increases in the original value of thecontract. The winning bidder must also cause the extension of the validity ofthe performance security to cover approved contract time extensions; (b) partial delivery/performance/completion of works - If the contract value is reduced because part ofthe goods or services under the contract had already been delivered orcompleted, and accepted, or if the contract value is reduced for partial completion of works which are usable and accepted by the C/BSPMC, and the use of it will not affect the structural integrity of the entire project, the community shall allowa proportional reduction in the original performance security. However, thisproportional reduction in the value of the performance security is allowed onlywhen the contract allows for partial deliveries or performance. Moreover, thereductions must be more than ten percent (10%), and the aggregate of suchreductions must not be more than fifty percent (50%) of the originalperformance security. The C/BSPMC may release the performancesecurity to the winning bidder after the issuance of the Certificate of Acceptance ofthe goods/works, provided that there are no

claims for labor and materials filed against the contractor. However, it must ensure that the performance security is replacedby a warranty covering the defects liability period. For works, uponsigning of the contract and submission of the performance security, the BAC shall issue the Notice to Proceed (NTP) together with a copy or copies of the approved contract to the successful bidder within three (3) calendar days from the date of approval of the contract by the C/BSPMC Chairperson. Unless otherwise specified in the contract, a contract is effective upon receipt of the NTP. If an effectivity date is provided in the NTP, such date shall not be later than seven (7) calendar days from issuance thereof. 5.6.12. Contract Implementation For Goods: The winning bidder delivers the goods in accordance with the provisions of the contract, technical specifications and other requirements on the scheduled delivery date. The Project Implementation Team (PIT) with the assistance of the Municipal Engineer, concerned MIAC member and the DAC monitors the delivery of the goods. The Barangay Treasurer processes payments of the delivered items through the preparation of disbursement vouchers (DV) signed by him with the C/BSPMC Chairperson. The Municipal Financial Analyst (MFA) reviews the documents submitted, initials the duplicate copy of the check to indicate all documents are in order before the Area Coordinator (AC) finally signs the check. The winning bidder signs the DV, logbook and issues an official receipt. In the case of staggered deliveries, monitoring, inspection and payments shall be made on a staggered basis in accordance with the procedures discussed above and as provided for in the bidding documents. For Works: The winning contractor mobilizes and starts work within seven (7) days from receipt of the NTP. The contractor has the option to claim for advance payment equivalent to 15% of the contract price subject to the submission of a certification from the DAC that equipment and materials are already on the jobsite and a bank guarantee equivalent to the amount requested within three (3) calendar days. The Project Implementation Team (PIT) and the Monitoring and Inspection Team (MIT) shall regularly monitor the execution of the contract. The Municipal Engineer, DAC, Community Infrastructure Officer (CIO) shall conduct regular inspection of the project site and provides technical assistance to the community. The Barangay Treasurer processes payments of the work accomplishment through the preparation of disbursement vouchers (DV) which is approved and signed by the C/BSPMC Chairperson as recommended by the PIT and noted by the Municipal Engineer. The Municipal Financial Analyst (MFA) reviews the documents submitted, initials the duplicate copy of the check to indicate all documents are in order before the Area Coordinator (AC) finally signs the check. The winning contractor signs the DV, logbook and issues an official receipt. All records of documents pertaining to procurement, finance and project implementation based on a checklist shall be reviewed by the Community Facilitator and turned over to the Municipal Financial Analyst who shall reproduce four copies with the following mode of

distribution: the original documents submitted to COA, a copy for the community, a copy for the ACT and a copy for the RPMT. As often as necessary, the Municipal Engineer, DAC, Area Coordinator (AC) and the Community Infrastructure Officer(CIO) shall conduct regular inspection of the goods/worksand provide technical assistance to the community. Tables7 and 8 provide a summary of all procedures for the procurement of goods and works through Community Bidding and explain the functions of different personnel involved. 5.7. Qualification/Single Source/Individual Consultant Selection for Consulting Services Consulting Services refer to services offered by external technical service providers or professional experts in the planning and implementation of project specific activities that are beyond the capability of C/BSPMC or the local government unit (LGU) to undertake. Such services are generally funded under the Technical Assistance Fund (TAF) to support sub-project proposals that are identified as technically-complicated for community volunteers to carry out. Under the past Kalahi-CIDSS project, eligible communities are allowed to pool their individual allocation of P 15,000 with other communities within the municipality to hire the services of such technical experts to assist in the preparation of the feasibility studies, technical plans and drawings, detailed cost estimates, program of work, supervise construction work, among others. Examples of consulting services that may be required include: survey works (horizontal and vertical controls), technical specifications, design drawings, detailed cost estimates, construction supervision, feasibility studies for enterprise development projects, training on operations and maintenance plans for revenue generating sub-projects, among others. These are generally individual consultants who are based in the area where the projects are located or consulting firms in the case of municipalities with common technical requirements for their sub-projects. Consulting firms may be hired through qualification selection (QS) where there is more than one qualified consulting firm; single source selection (SSS) where there is only one consulting firm, while individual consultants may be hired through individual consultant selection (ICS). The need to procure consulting service providers shall be decided upon during the Municipal Inter-Barangay Forum for Criteria Setting Workshop (MIBF-CSW). The Regional Community Development Specialist (RCDS) shall certify that the agreement to hire the service providers followed the standard procedures under the CEAC. The DAC shall assist the communities in the preparation of the Terms of Reference (TOR) which shall include the type of required expertise, qualification requirements, scope of work, deliverables/outputs and duration of services, among others.The TAF-eligible communities shall submit a request to the RPMO (for contracts below P 1M) and the NPMO (for contracts above P 1M) for the use of the TAF to procure consulting services. The request shall include the following supporting documents: the TOR, the identification of the TAFeligible communities, the type of consulting service to be used (firm or individual), the appropriate method of procurement, the estimated cost and schedule of fund releases, the project implementation schedule, the draft contract agreement, among others. The RPMO/NPMO shall review the submitted documents and once the documents are considered to be in order, they shall provide the necessary approval. It shall also create a Technical Working Group for the purpose. The approval shall replace the Community Procurement Plan. A Lead Barangay shall be elected from among the TAF-eligible barangays and will serve as the contracting party on behalf of the eligible barangays who may need the services for

their proposed community projects. The Lead Barangay will open a community account where the TAF grant and the required local counterpart contributions from the concerned barangays shall be deposited and withdrawn. 5.7.1. Ad-Hoc Bids and Awards Committee (BAC) for Consulting Services The TAF-eligible communities shall decide among themselves whether they will appoint an existing Bids and Awards Committee (BAC) and Procurement Team (PT) under the KC NCDDP set-up or create a separate BAC composed of at least three (3) BAC chairpersons and at least three PT members from the eligible communities who shall serve in an ad-hoc capacity for purposes of procuring the consulting services. The ad-hoc BAC (AHBAC) and ad-hoc Procurement Team (AHPT) shall be responsible for undertaking the procurement process. 5.7.2. Preparation of Request for Proposal/Quotation Upon approval of the RPMO/NPMO of the request to utilize the TAF and to hire consultants, the AHPT shall prepare the following: For Consulting Firms i.

A short list of eligible service providers for qualification selection (for firms to be eligible, they must meet the qualification requirements stated in the TOR); ii.Request for Proposal Forms; iii.Consultancy Agreement/Contract; iv. Abstract of Technical/Financial Proposals; v.Terms of Reference, as approved For Individual Consultants i.

A short list of at least three (3) candidates (for individuals to be qualified, they must meet the requirements stated in the TOR); in case, there is less than three qualified candidates, evaluation may still proceed with the BAC resolution that there is limited service providers in the area ii. Curriculum Vitae/Resume Forms; iii. Consultancy Agreement; iv. Terms of Reference, as approved 5.7.3. Conduct of Pre-Procurement Conference The AHPT, AHBAC, Lead Barangay and Technical Working Group (TWG) shall meet to discuss the procurement at hand and to ensure that all requirements are in order. During the pre-procurement conference, the firms/individuals in the short list of eligible service providers/qualified candidates shall be invited and oriented on the objectives of the project and the terms of reference, the number of barangays to be covered, types of sub-projects requiring technical assistance, contract management and payment arrangements. The conference shall also cover the following in the agenda:

i.Dates of submission and opening of proposals; ii. Evaluation criteria, preparation and submission of work plan/schedule of activities including the cost breakdown; iii. CEAC schedule and procedures for MIBF-Project Development Planning and Resource Allocation (PDPRA) where the technical outputs of the service providers are critical in the identification and selection of sub-projects for the barangay to avail of project grants.

iv. Process review of the technical outputs and leveling-off on the technical standards of the Project; v. Conditions of the contract, (e.g., schedule for submission of deliverables and basis and mode of payment). In the same meeting, the BAC will review and approve the proposal forms and contents of the Notice of Request for Proposals (NRFP) and the Chairperson will sign the form for posting. The AHPT will prepare the minutes of the pre-procurement conference and the Lead Barangay will keep a copy of all the documents. The pre-procurement conference shall continue even if there is only one consulting firm/individual attending or signifying interest to submit a proposal. The AHBAC and the TWG shall decide on the criteria for the selection of consulting firms based on qualification selection and may assign the weights to be provided as follows: i. ii. iii.

Experience of the firm related to the proposed projects (30%) Plan, approach, methodology or schedule (30%) Experience and qualification of individual experts based on the TOR (40%)

5.7.4. Posting of Notice of Request for Proposal (NRFP) The BAC may post the Notice of Request for Proposal (NRFP) for a period of at least three (3) days for information purposes only at any of the following: municipal/ barangay hall bulletin boards, KC-NCDDP designated billboard or bulletin board, offices of Municipal Inter-Agency Committee (MIAC). Where computer and internet facilities are available within or in the vicinity of the municipality, the NRP shall also be posted in the Phil-GEPS website or in the regional or national KC-NCDDP website. The Notice of Request for Proposal shall contain the following information: i. Brief description of the services to beprocured; ii. The date, time and place for the deadline for the submission, receipt and opening of proposals; iii. Contract duration; iv. The name, address of the designated contact person; v. Such other necessary information deemed relevant by the BAC. 5.7.5. Issuance of Request for Proposal TheAHPT issues the Request for Proposal (RFP) to the eligible service providers/qualified candidates included in the shortlist who attended the pre-procurement conference. They shall request the consultants to submit the proposal/resume in a sealed envelope at the duly designated municipal hall or at the barangay hall of the Lead Barangay, whichever is applicable within three (3) days. The AHPT should ask the consultant to acknowledge receipt of the proposal form by signing the acknowledgement receipt.Only those consultants included in the short-list may submit proposals. 5.7.6. Submission, Receipt and Evaluation of Proposals for Consulting Firms The prospective consulting firm shall fill up and submit the Request for Proposal in a sealed envelope within the prescribed period for submission. The AHPT shall receive the sealed proposals at the duly designated venue on the date specified. Where there are at least three consulting firms in the area, the proposals shall be evaluated through qualification selection, when there is only one available consulting firm, single source selection shall apply.

The AHBAC shall invite the following to assist in the review and evaluation of proposals on the day specified for the opening of the proposals: the Municipal Auditor, Area Coordinator, Regional Community Development Specialist and the members of the Technical Working Group (TWG). CONTENTS OF THE TECHNICAL PROPOSAL FOR QUALIFICATION SELECTION The Technical Proposal should contain, at the minimum, the following technical information/documents: i. List of completed and on-going projects; ii. Approach, work plan, and schedule; and iii. List of key personnel to be assigned to the contract to be bid, with their complete qualification and experience data. CONTENTS OF THE FINANCIAL PROPOSAL FOR QUALIFICATION SELECTION The Financial Proposal shall contain the following financial information/documents, at the least: i.

Remuneration cost indicating the basic salary, overhead cost, and management fee for consulting firms; ii. Reimbursable cost; and iii. Other items as may be required in the TOR. The financial proposal should clearly estimate the value added tax, income tax, local taxes, duties, fees, levies and other charges, as applicable. The purpose of the evaluation of proposalsis to determine the Highest Rated Proposal(HRP) based on the conditions set forth in the RFP. The proposal shall be subject to validation of qualifications and experience requirements where the service provider is determined as the Highest Rated and Responsive Proposal (HRRP). For single source selection, the proposal of the firm shall also be validated. The AHBAC with the assistance of the TWG shall first open the technical proposals of the service provider and ranks the firm according to:its experience; the experience of individual personnel to be assigned to the project; and approach or work plan. The firm with the most appropriate qualifications that meet the requirements of the TOR shall be selected. They shall be invited for negotiations based on the estimated cost of the project and the submitted financial proposal. When an agreement is reached, the contract shall be awarded to the firm but when negotiations fail, the AHBAC shall start negotiations with the next ranked firm until an agreement is reached. For single source selection, the AHBAC shall still negotiate with the firm based on the submitted requirements and estimated contract cost until an agreement is reached. Individual consultants do not need to submit technical or financial proposals. However, they need to submit their curriculum vitae highlighting the relevant work experience required for the project. The AHBAC, with the assistance of the TWG shall select among the shortlisted consultants, the most qualified based on the TOR. They shall be invited for negotiations based on the estimated cost of the project and when an agreement is reached, the contract shall be awarded to them. Where there is only one qualified individual consultant, the contract shall be awarded to him/her based on the estimated contract cost.

5.7.7. Prior Review of Contract Prior to the signing of the Contract, the Chairperson of the Lead Barangay shall request for clearance to award and to conduct prior review for contracts within the thresholds specified under Table 1 of Section 4.3. For contracts up to P 1M - Regional Project Management Office (RPMO) For contracts above P 1M – National Project Management Office (NPMO) In the request for No-Objection-Letter (NOL), the AHPT shall attach photocopies of all the contract documents with the exception of the letter itself which should be submitted in its original form.

5.7.8. Contract Award and Contract Signing Upon receipt of the NOL, the AHPT shall prepare three (3) copies of the Notice of Award (NOA) and shall submit the same to the Chairperson of the Lead Barangay for signature. The NOA shall be issued to the winning consulting firm/individual who shall sign his/her conforme and returns two (2) copies to the AHPT. Where computer and internet facilities are available within or in the vicinity of the community, the NOA shall be posted in the Phil-GEPs website or in the KC-NCDDP regional or national website. Upon receipt of the NOA, the AHBAC schedules the signing of the contract with the winning consultant. The Chairperson of the Lead Barangay signs the contract (three copies) with the winning consultant within ten (10) calendar days from receipt of the NOA. The AHPT forwards the contract together with the rest of the supporting documents for filing and safekeeping. No performance bond shall be required for these types of consultancy contracts. Upon signing of the contract, the AHBAC shall issue the Notice to Proceed (NTP) together with a copy or copies of the approved contract to the successful consultant within three (3) calendar days from the date of signing. Unless otherwise specified in the contract, a contract is effective upon receipt of theNTP. If an effectivity date is provided in the NTP, such date shall not belater than seven (7) calendar days from issuance thereof. The PT shall furnish copies of the signed contract to the Municipal Auditor and the RPMO. Tables9 provides a summary of all procedures for the procurement of consulting services through Qualification/Single Source and Individual Consultant Selection and explain the functions of different personnel involved. 5.8. Emergency Procurements Emergency Procurement refers to the selection of an appropriate method of procurement to procure urgently needed goods, services and infrastructure facilities to assist disaster affected communities brought about by natural or man-made calamities (destructive typhoons, earthquakes, landslides, volcanic eruptions, tsunamis, hurricanes, wars, etc.). In cases involving post recovery and reconstruction efforts brought about by natural or man made calamities (destructive typhoons, earthquakes, landslides, volacanic eruptions, tsunamis, hurricanes, wars, etc.), the community driven development approach adopted under the KC-NCDDP is an effective mechanism to mobilize resources to respond to

community needs. The NCDDP allows the use of project funds to procure urgently needed goods, services and infrastructure facilities to assist disaster affected communities. The NCDDP Disaster Response Operarations Manual (DROM) states that for a community to be eligible to utilize KC-NCDDP funds for recovery and rehabilitation efforts, there should be a declaration of a National State of Calamity by the President or a declaration of a Municipal State of Calamity by the Sanggunian (municipal legislative council) based on the recommendation of the National Disaster Risk Reduction and Management Council (NDRRMC). A declaration and lifting of the state of calamity may be issued upon the recommendation of the NDRRMC or the local Sanggunian upon the recommendation of the Local Disaster Risk Reduction and Management Coordinating Council (LDRRMC), based on the results of damage assessment and needs analysis. After the Declaration of the State of Calamity, the NPMO and the relevant RPMO shall undertake the modified CEAC process discussed in the DROM for social preparation, community planning, implementation and coordination and monitoring and evaluation. 5.8.1. Preparation of Emergency Community Procurement Plan After the community with the assistance of ACTs or LGU representatives completes the identification, mapping and prioritization of immediate needs for disaster response, the Program of Work for the identified disaster related sub-project shall be prepared by community volunteers with the assistance of the ACT and the RMPO following the accelerated CEAC cycle along with the Emergency community procurement plan to determine the goods, services and works to be procured, the methods of procurement to be used and the estimated budget, among others. The Emergency Community Procurement Plan shall be submitted to the ACT for technical review and to the RPMO for sub-project approval to facilitate the release of funds. 5.8.2. Selection of Emergency Procurement Methods The following procurement methods shall be used to accelerate implementation of disaster based sub-projects: Table 2. Procurement Methods and Prior Review Thresholds for Emergency Procurement Procurement Method

Threshold Amount (P)

Community Shopping - Works None - Goods None Community Direct Contracting Direct Contractingdue to Emergency - Works None - Goods None Agency-to-Agency Arrangements - Works None - Goods None Direct Contracting for Adjacent and Contiguous Projects - Works None Repeat Order

Prior Review Requirement Threshold (P) RPMO NPMO ≥2.0 M ≥2.0 M

Post Review Post Review

Post review Post review

Post review Post review

>1.0M 1.0M all

- Goods Small Value Procurement 1.Off-the-Shelf (Goods) 2.Short Term Services 3.Small Works Pakyaw Contract - Works Variation Order for Works

100% of previous contract

all

50,000.00 50,000.00 50,000.00 500,000.00 Up to 20% of original contract

All

Community shopping may be used for the procurement of goods and works where there is more than one supplier/contractor in the community or its vicinity.This may be used for procuring readily available off-the-shelf goods, services or civil works.ThePT shall solicit at least three price quotations for the purchase of goods, materials, services or works to formulate a cost comparison report.12 Community direct contracting for goods and works may be used where there is only one supplier/contractor operating in the vicinity of the community. This may also be used for agency-to-agency arrangements and to procure the services of works contractors with adjacent and contiguous projects as defined under Section 5.2. Repeat Order for the procurement of goods originally purchased through community bidding, shopping and direct contracting shall be allowed up to 100% of the original contract as long as the same or lower unit prices and quantities in the original contract is applied. Pakyaw contracts may be used for repair/reconstruction works when contractors are unlikely to bid at reasonable prices because of the location of and risks associated with the projectprovided that the C/BSPMC with the assistance of the ACT has sufficient technical, financial and supervisory capacity. Pakyaw contracts shall also be encouraged where the community workforce is available to encourage employment generation under the cash for work program. Small value procurements may also be utilized as long as the DAC is assured that this is will not result in the splitting of contracts, the price is reasonable and that no advantage can be obtained by further competition. For purposes of transparency, the RPMO through the Regional Engineer or Deputy Area Coordinator shall prepare a list of eligible suppliers/contractors to whom periodic invitations are issued to help accelerate the procurement process and shall issue a certification that the available suppliers/contractors are capable of providing the sub-project requirements and such shall be included in the request for No-Objection Letter. The C/BSPMC Chairman shall concur with this certification. The Prior Review requirements under Table 2 shall apply for the corresponding procurement method used. 5.8.3. Emergency Procurement Procedures The procedures for Emergency procurements shall follow those of regular community based procurements discussed in this manual with the following exemptions; Based on World Bank Guidance Notes on Simplified Procurement Procedures for Situations of Urgent Need of Assistance or Capacity Constraints, April 2013. 12

i.

ii.

iii.

iv. v.

All prescribed time frames for conduct of pre-procurement conference, posting of Notice of Request for Quotation (RFQ), issuance, submission, receipt, evaluation of quotations, issuance of No-Objection Letters, contract signing and approval, issuance of Notice of Award and Notice to Proceed shall be suspended or shortened due to the emergency nature of the procurement at hand as determined by the DAC or the Municipal Engineer; Where the supplier/contractor has lost or cannot produce the required registration/qualification documents due to damage brought about by the disaster, the office of the mayor of the municipality where the supplier/contractor is conducting his/her principal place of business shall issue a certification that they are known to be legitimate supplier/contractor of good standing and that the required documents were estroyed during the disaster; The requirement for posting of performance security for goods shall be waived as long as the community volunteers have certified to the receipt of the goods and the manufacturers warranties are submitted as part of the payment requirements, where such is applicable. However, for works contracts above one million pesos (P 1,000,000) the retention money of ten percent (10%) shall be strictly applied in the release of payment to guarantee performance and to cover the costs of defects that may arise during the defects liability period; The RPMO shall accelerate the approval period for contracts requiring prior review to the shortest possible time (not to exceed three days upon receipt of the NOL requests) to respond to the emergency nature of the procurement; Contract implementation procedures discussed in Sections Six and Seven shall be followed.

Table 2. Matrix of Procedures for Community Shopping for Goods with Functions of Various Procurement Personnel Procedures

Time Frame

1. Identify items for Community Shopping from approved CPP

1 cd

2.Prepare Requests for Quotation/Canvass Form 3.Conduct of Pre-Procurement Conference

4. Posting of Notice of Request for Quotation 5. Issuance of Request for Quotation/Canvass Form 6. Submission and Receipt of Quotations

7. Opening and Evaluation of Quotations

8. Prior Review of Contract

SUPPLIER

BAC

C/BSPMC

Prepare items for procurement

Review items to be procured

1 cd

Prepare canvass documents

Review canvass forms

1cd

Discuss procurement at hand Prepare minutes

Discuss procurement at hand Sign NRQ for posting

Review items to be procured Review canvass forms Discuss procurement at hand

Once for a minimum of 3 cd 2c d 3cd

1c d

Not more than 30 days

PT

TWG

Discuss procurement at hand

ACT

RPMO/NPMO/AD B/WB

CF calls for the meeting DAC provides technical assistance and acts as resource person

Posts NRQ

Prepares quotation and submits the same to the BAC

Issues canvass forms Receives the sealed quotations on or before the deadline Receives all canvass Prepares minutes of canvass evaluation Prepares Abstract of Canvass

CF to accompany PT members

Invites TWG and AIT Head to assist in canvass evaluation Opens quotations and checks responsivenes s of canvass

Assists the BAC in the evaluation of quotations

C/BSPMC Chair

DAC provide technical assistance

Reviews contract documents and

Procedures

9. Contract Award

10. Contract Implementation

Time Frame

1c d

As specified in the PO

SUPPLIER

Signs the PO

Delivers goods as provided in contract

PT

BAC

C/BSPMC

TWG

ACT

Requests for Clearance to Award Signs the PO Approves and signs the PO

Prepares and delivers the PO Provides LGU COA and RPMO with copies of PO and supporting documents Compiles copies of all documents for consolidation with other project related documents

RPMO/NPMO/AD B/WB issues NOL

MIT and TWG inspects and receives goods and signs PO and delivery receipt

Table 3. Matrix of Procedures for Community Shopping for Works with Functions of Various Procurement Personnel Procedures

Time Frame

SUPPLIER

PT

BAC

C/BSPMC Review items to be procured Review IFQ documents and forms Discuss procurement at hand

1. Identify items for Community Shopping from approved CPP

1 cd

Prepare items for procurement

Review items to be procured

2.Prepare Notice of Request for Quotation (NRFQ)

1 cd

Prepare IFQ documents

3.Conduct of Pre-Procurement Conference

2cd

Discuss procurement at hand Prepare minutes

Review IFQ documents and forms Discuss procurement at hand Sign NRQ for posting

4. Posting of Notice of Request for

Once for a

Posts NRQ

TWG

Discuss procurement at hand

ACT

CF calls for the meeting DAC provides technical assistance and acts as resource person

RPMO/NPMO/AD B/WB

Procedures Quotation (NRQ) 5. Issuance of Notice of Request for Quotation

6. Conduct of Conference for Shopping for Works

Time Frame minimum of 3 c d 1cd At least 5 days before the submission of quotations At least 5 days before the submission of quotations

7. Submission and Receipt of Quotations

3cd

8. Opening and Evaluation of Quotations

Not more than 2 days

9. Prior Review of Contract

Not more than 5 days upon receipt of NOL documents

SUPPLIER

PT

BAC

C/BSPMC

TWG

Issues IFQ forms

Attends conference

Prepares required documents and minutes

Prepares quotation and submits the same to the BAC

Receives the sealed quotations on or before the deadline Receives all quotations Prepares minutes of canvass evaluation Prepares Abstract of quotations

ACT

RPMO/NPMO/AD B/WB

CF to accompany PT members

Attends conference Invites Project Implementation Team (PIT), Municipal Implementation Team (MIT), Municipal Engineer, DAC and contractors

Attends conference Chairperson issues Certificate of Site Inspection to participating contractors

Invites TWG and PIT Head to assist in canvass evaluation Opens quotations and checks responsivenes s of canvass

DAC to attend conference and provide technical assistance

Assists the BAC in the evaluation of quotations

C/BSPMC Chair Requests for Clearance to

DAC provide technical assistance

Reviews contract documents and issues NOL

Procedures 10. Contract Award

11. Contract Implementation

Time Frame 1cd

As specified in the contract

SUPPLIER Signs the contract Posts the required performance security Mobilizes and starts work as provided in contract May request for advance payment

PT

BAC

C/BSPMC

TWG

ACT

RPMO/NPMO/AD B/WB

Award Signs the contract Approves and signs the contract

Prepares and delivers the contract Provides LGU COA and RPMO with copies of PO and supporting documents Compiles copies of all documents for consolidation with other project related documents

PIT, MIT and TWG inspects and monitors status of accomplishm ent

Table 4. Matrix of Procedures for Community Direct Contracting for Goods with Functions of Various Procurement Personnel Procedures

Time Frame

SUPPLIER

PT

BAC

C/BSPMC Review items to be procured Review forms Discuss procurement at hand

1. Identify items for Community Direct Contracting from approved CPP

1 cd

Prepare items for procurement

Review items to be procured

2.Prepare Requests for Quotation 3.Conduct of Pre-Procurement Conference

1 cd 1cd

Prepare documents Discuss procurement at hand Prepare minutes

Review forms Discuss procurement at hand Sign NRQ for posting

4. Posting of Notice of Request for Quotation 5. Issuance of Request for Quotation/Canvass Form 6. Submission and Receipt of Quotations

Once for a minimum of 3 cd 2cd 3cd

TWG

Discuss procurement at hand

ACT

CF calls for the meeting DAC provides technical assistance and acts as resource person

Posts NRQ

Prepares

Issues canvass forms Receives the sealed

CF to accompany PT members

RPMO/NPMO/AD B/WB

Procedures

Time Frame

SUPPLIER quotation and submits the same to the BAC

7. Opening and Evaluation of Quotations

8. Prior Review of Contract

9. Contract Award

10. Contract Implementation

1cd

PT

Receives all canvass Prepares minutes of canvass evaluation Prepares Abstract of Canvass

As specified in the PO

Signs the PO

Delivers goods as provided in contract

C/BSPMC

TWG

ACT

RPMO/NPMO/AD B/WB

quotations on or before the deadline

Not more than 30 days

1cd

BAC

Prepares and delivers the PO Provides LGU COA and RPMO with copies of PO and supporting documents Compiles copies of all documents for consolidation with other project related documents

Invites TWG and AIT Head to assist in canvass evaluation Opens quotations and checks responsivenes s of canvass

Assists the BAC in the evaluation of quotations

C/BSPMC Chair Requests for Clearance to Award Signs the PO Approves and signs the PO

MIT and TWG inspects and receives goods and signs PO and delivery receipt

DAC provide technical assistance

Reviews contract documents and issues NOL

Table 5. Matrix of Procedures for Community Direct Contracting for Works with Functions of Various Procurement Personnel Procedures

Time Frame

SUPPLIER

PT

BAC

C/BSPMC Review items to be procured Review forms Discuss procurement at hand

1. Identify items for Community Direct Contracting from approved CPP

1 cd

Prepare items for procurement

Review items to be procured

2.Prepare Requests for Quotation 3.Conduct of Pre-Procurement Conference

1 cd 1cd

Prepare documents Discuss procurement at hand Prepare minutes

Review forms Discuss procurement at hand Sign NRQ for posting

4. Posting of Notice of Request for Quotation 5. Issuance of Request for Quotation/Canvass Form

Once for a minimum of 3 c d 1cd

6. Submission and Receipt of Quotations

Within 5 days after issuance of IFQ

7. Opening and Evaluation of Quotations

1cd

TWG

Discuss procurement at hand

ACT

CF calls for the meeting DAC provides technical assistance and acts as resource person

Posts NRQ Attends the site inspection as may be applicable

Issues canvass forms

Prepares quotation and submits the same to the BAC

Receives the sealed quotations on or before the deadline Receives all canvass Prepares minutes of canvass evaluation Prepares Abstract of Canvass

Issues a Certificate of Site Inspection as may be applicable

Invites TWG and PIT Head to assist in canvass evaluation Opens quotations and checks

CF to accompany PT members

Assists the BAC in the evaluation of quotations

DAC provide technical assistance

RPMO/NPMO/AD B/WB

Procedures

Time Frame

SUPPLIER

PT

BAC

C/BSPMC

TWG

ACT

RPMO/NPMO/AD B/WB

responsivenes s of canvass 8. Prior Review of Contract/ NOL issuance

Procurement action not more than 5 days upon receipt of NOL Documents

9. Contract Award

1cd

10. Contract Implementation

Signs the contract and posts required performance security

As specified in the contract

Mobilizes and starts work as provided in contract May request for advance payment

C/BSPMC Chair Requests for Clearance to Award Signs the PO Approves and signs the PO

Prepares and delivers the PO Provides LGU COA and RPMO with copies of PO and supporting documents Compiles copies of all documents for consolidation with other project related documents

Reviews contract documents and issues NOL

PIT, MIT and TWG inspects and monitors status of accomplishm ent

Table 6. Matrix of Procedures for Pakyaw Contracts for Works with Functions of Various Procurement Personnel Procedures 1. Organization of Pakyaw Groups

2. Identify items Covered by Pakyaw Contract in approved CPP 3.Conduct of Negotiations on Pakyaw

Time Frame

PAKYAW GROUP

1 cd 1 cd

Attend meeting

PT

Identify items of work for Pakyaw Prepare minutes

BAC

Review items Call for meeting to discuss scope of work and

C/BSPMC C/BSPMC to hire/ appoint PS PS to assist organize community labor into Pakyaw groups Review items

CF/PIT/MIT CF to enlist available labor in the community

Review forms

Discuss work requirements and assignments, timetables,

DAC/ME

Assist the PT Discuss the technical aspect of the sub-project

Procedures

4.Contract Award 5. Contract Implementation

Time Frame

1cd As specified in the contract

PAKYAW GROUP

PT

BAC technical specs

GL sign contract Mobilizes and starts work as provided in contract

Prepare contract Compiles copies of all documents for consolidation with other project related documents

C/BSPMC

CF/PIT/MIT contract cost, payment arrangements

DAC/ME

Sign contract PIT, MIT to inspect and regularly monitor works executions

Conduct regular inspection

Table 7. Matrix of Procedures for Community Bidding for Goods with Functions of Various Procurement Personnel Procedures 1. Identify items for Community Bidding from approved CPP

Time Frame

SUPPLIER

1 cd

PT Prepare items for procurement

2.Prepare/revise bidding documents

Prepare bidding documents

BAC

C/BSPMC

Review and validate items to be procured Review bidding documents

Review and validate items to be procured Review bidding documents Discuss procurement at hand

3.Conduct of Pre-Procurement Conference

1cd

Discuss procurement at hand Prepare minutes

Discuss procurement at hand Sign IB for posting

4. Posting/advertisement of Invitation to Bid

2cd Once for a minimum period of 7 c d 2 weeks from date of posting of IB

Posts Invitation to Bid

Approves issuance of IB

Issues bidding documents

Approves issuance of bidding documents Attends pre-bid conference Invites Project

5. Issuance of Bidding Documents

6. Conduct of Pre-Bid Conference

1cd At least 7 days before

Attends pre-bid conference

Prepares required documents, minutes and supplemental

TWG

Discuss procurement at hand

ACT

CF and DAC assists in the review CF calls for the meeting DAC provides technical assistance and acts as resource person CF ensures wide circulation of IB DAC to provide technical assistance

Attends pre-bid conference Chairperson

DAC to attend pre-bid conference and provide

RPMO/NPMO/AD B/WB

Procedures

Time Frame

SUPPLIER

deadline for bid submission

7. Preparation, Submission and Receipt of Bids

As prescribed in the bidding documents

8. Issuance of Supplemental/Bid Bulletins

Within 2 days after pre-bid conference Not more than 5cd

9. Eligibility and Bid Opening and Evaluation

10. Postqualification

2cd

PT bid bulletins where applicable

Prepares technical and financial proposal and submits the same to the BAC Submits request for clarification

BAC

C/BSPMC

Implementation Team (PIT), Municipal Implementation Team (MIT), Municipal Engineer, DAC and bidders

issues Certificate of Site Inspection to participating bidders

TWG

ACT technical assistance

Receives the sealed bids on or before the deadline

Posts Supplemental/Bid Bulletin Prepares barangay hall for bid opening Places received bids in bid box Prepares minutes of bid evaluation Prepares Abstract of Bids

Issues Supplemental/ Bid Bulletin Invites Observers to witness bid opening Opens bid proposal and checks compliance with requirements according to procedures Examines bids using “pass/fail criteria” Conducts verification and validation of submitted

Assists the BAC in the evaluation of bids and requirement s

Signs the Resolution and Notice to Award

Assists the BAC in the conduct of postqualifica

DAC to provide technical assistance DAC to attend bid opening and provide technical assistance

RPMO/NPMO/AD B/WB

Procedures

Time Frame

SUPPLIER

PT

BAC

C/BSPMC

legal, technical and financial bidding documents 11. Prior Review of Contract

12. Contract Award

13. Contract Implementation

Not more than 30 days Maximum of 10c d

As provided in the contract

Signs the contract Posts the required Performance Security

Delivers goods as provided in contract

ACT

RPMO/NPMO/AD B/WB

tion

C/BSPMC Chair Requests for Clearance to Award Signs the NOA and contract Approves and signs the contract

Prepares contract documents and Notice of Award Delivers the NOA Provides LGU COA and RPMO with copies of contract and supporting documents Compiles copies of all documents for consolidation with other project related documents

TWG

Issues NOL

Assists the BAC in the preparation of resolution and notice to award

Reviews contract documents and issues NOL

MIT, Municipal Engineer, DACMonitors delivery of goods Conducts regular visit of project site

Table 8. Matrix of Procedures for Community Bidding for Works with Functions of Various Procurement Personnel Procedures 1. Identify items for Community Bidding from approved CPP

Time Frame 1 cd

2.Prepare/revise bidding documents 3.Conduct of Pre-Procurement Conference

1cd

CONTRAC TOR

PT

BAC

C/BSPMC

Prepare bidding documents

Review and validate items to be procured Review bidding documents

Review and validate items to be procured Review bidding documents

Discuss procurement at hand

Discuss procurement at hand

Discuss procurement at hand

Prepare items for procurement

TWG

Discuss procurement at hand

ACT

CF and DAC assists in the review CF calls for the meeting DAC provides

RPMO/NPMO/AD B/WB

Procedures

4. Posting/advertisement of Invitation to Bid

5. Issuance of Bidding Documents

6. Conduct of Pre-Bid Conference

Time Frame

2cd Once for a minimum period of 7 c d 2 weeks from date of posting of IB 1cd At least 7 days before deadline for bid submission

7. Preparation, Submission and Receipt of Bids

As prescribed in the bidding documents

8. Issuance of Supplemental/Bid Bulletins

Within 2 days after pre-bid conference Not more than 5cd

9. Eligibility and Bid Opening and Evaluation

CONTRAC TOR

PT

BAC

Prepare minutes

Sign IB for posting

Posts Invitation to Bid

Approves issuance of IB

Issues bidding documents to eligible bidders

Approves issuance of bidding documents Attends pre-bid conference Invites Project Implementation Team (PIT), Municipal Implementation Team (MIT), Municipal Engineer, DAC and bidders

Attends pre-bid conference

Prepare required documents, minutes and supplemental bid bulletins wehere applicable

Prepares technical and financial proposal and submits the same to the BAC Submits request for clarification

Receives the sealed bids on or before the deadline

Posts Supplemental/Bid Bulletin Prepares barangay hall for bid opening Places received

Issues Supplemental/ Bid Bulletin Invites Observers to witness bid

C/BSPMC

TWG

ACT technical assistance and acts as resource person CF ensures wide circulation of IB DAC to provide technical assistance

Attends pre-bid conference Chairperson issues Certificate of Site Inspection to participating bidders

DAC to attend pre-bid conference and provide technical assistance

Assists the BAC in the evaluation of

DAC to provide technical assistance DAC to attend bid opening and provide technical

RPMO/NPMO/AD B/WB

Procedures

10. Postqualification

11. Prior Review /NOL

12. Contract Award

13 Procurement

Time Frame

CONTRAC TOR

PT

BAC

bids in bid box Prepares minutes of bid evaluation Prepares Abstract of Bids

opening Opens bid proposal and checks compliance with requirements according to procedures Examines bids using “pass/fail criteria” Conducts verification and validation of submitted legal, technical and financial bidding documents

2cd

Period of action 13not more than 15days for Dev’t Partner, 5 for NPMO and 5 for RPMO upon receipt of the procurement documents Maximum of 10 c d

C/BSPMC

TWG bids and requirements

Signs the Resolution and Notice to Award

ACT

RPMO/NPMO/AD B/WB

assistance

Assists the BAC in the conduct of postqualificati on

C/BSPMC Chair Requests for Clearance to Award

Signs the contract Posts the

Prepares contract documents and Notice of Award

Signs the NOA and contract Approves and

actions such as comments, observation, recommendations for compliance or NOL shall be issued

Assists the BAC in the Preparation of

Reviews contract documents and issues NOL

Procedures

13. Contract Implementation

Time Frame

As provided in the contract

CONTRAC TOR required Performance Security

Starts the work as provided for in the contract

PT

BAC

Delivers the NOA Provides LGU COA and RPMO with copies of contract and supporting documents Compiles copies of all documents for consolidation with other project related documents

C/BSPMC signs the contract

TWG

ACT

RPMO/NPMO/AD B/WB

resolution and notice to award

PIT and MIT, monitors accomplishment of work DAC, ME, CIO conducts regular visit of project site

Table 9. Matrix of Procedures for Qualification/Single Source/Individual Consultant Selection for Consulting Serviceswith Functions of Various Procurement Personnel Procedures

Time Frame

1. Submission of request to hire consultants utilizing the TAF

5cd

2.Prepare Request for Quotation

3 cd

3.Conduct of Pre-Procurement Conference

1cd

CONSULTANT

Attend conference

AHPT

Prepare procurement documents Discuss procurement at

AHBAC

Discuss procurement at

LEAD BARANGAY TAF eligible communities to submit request to RPMO to use TAF for consulting services Lead Barangay to be elected as contracting party and open community account

Discuss procurement at

TWG

Discuss procurement

ACT

RPMO/NPMO

DAC to assist in the preparation of the TOR

RCDS to certify to that agreement to hire consultants followed CEAC process RPMO to review and approve request and create TWG

Assist in the preparation of the documents CF calls for the meeting

Procedures

Time Frame

CONSULTANT

AHPT hand Prepare minutes

4. Posting of Notice of Request for Proposal

At least 3 cd

5. Issuance of Request for Proposal (RFP)

Within 3 days from posting of NRFP At least 3 days after issuance of RFP As determined by RPMO and NPMO Maximum of 10 c d

Secures RFP and prepares requirements Submits all requirements

As provided in the contract

Starts the work as provided for in the contract

6. Submission, Receipt and Evaluation of Proposals 7. Prior Review /NOL

8. Contract Award

13. Contract Implementation

Posts NRFP Issues RFP to shortlisted firms and individuals Receives proposals

AHBAC hand Review and approve documents Authorizes posting of NRFP

Reviews and evaluates proposals

LEAD BARANGAY hand Sign NRFP for posting

Invites Auditor, RCDS, AC

TWG at hand

Assist in the review and evaluation of proposals

ACT DAC provides technical assistance

DAC to provide technical assistance DAC to attend provide support and technical assistance

Requests for Clearance to Award Signs the contract Posts the required Performance Security

Prepares contract documents and Notice of Award Delivers the NOA Provides LGU COA and RPMO with copies of contract and supporting documents Compiles copies of all documents for consolidation with other project related documents

Signs the NOA and contract Approves and signs the contract

RPMO/NPMO

Reviews documents and issues NOL Assists the AH BAC in the Preparation of resolution and notice to award Municipal Auditor, DAC monitors accomplishment of work and conducts regular review of outputs

CHAPTER SIX: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED GOODS AND SERVICES -

Warranty Amendment to Order Suspension of Delivery Delays in Delivery and Liquidated Damages Incidental Services Spare Parts and Maintenance Prices Payments Taxes, Duties, Insurance, Transportation Subcontracts, Assignments Standards Packaging Inspection and Tests Contract Termination Blacklisting

These contract implementation procedures shall apply to all procurements for goods and services through Community Bidding, Community Shopping and Community Direct Contracting. Contract implementation commences when the winning supplier delivers the procured goods in accordance with the provisions of the contract, technical specifications and other requirements on the scheduled delivery date. The following are involved in contract implementation for goods: Project Implementation Team (PIT) – is responsible for supervising the implementation of the project and for ensuring that this is done in accordance with the procedures set out in this Chapter and the provisions of the contract document in the case of the Community Bidding. The Project Implementation Team is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. ii. Monitoring and Inspection Team (MIT) – is responsible for monitoring and inspecting whether the deliveries of goods and services are in accordance with the purchase order and technical specifications and undertaking quality control of delivered items. The Monitoring and Inspection Team is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. iii. Audit and Inventory Team (AIT) – is responsible for conducting value for money audit and for ensuring the funds are utilized according to the required procedures. The Audit and Inventory Team is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. iv. Municipal Inter-Agency Committee (MIAC) – is responsible for providing technical assistance to the community in the implementation of the contract. v. Municipal Financial Analyst – responsible for processing vouchers and checks for payment purposes and for keeping and maintaining copies of procurement, finance and contract implementation documents at Area Coordinating Team (ACT) Office vi. Community Facilitator – responsible for reviewing and ensuring that all procurement, finance and contract implementation documents are in accordance with the requirements and procedures vii. Deputy Area Coordinator – responsible for providing technical assistance to the community, reviewing requests for variation or change orders for approval by the Area Coordinator and validating accomplishment reports among others viii. Area Coordinator (AC) – responsible for signing checks for payments, and approving variation or change orders, requests for time extension, suspension, among others. i.

Contract implementation covers the following important milestones: supplier’s performance of his contractual obligations; C/BSPMC’s performance of its contractual obligations, as specified in the Contract; final acceptance or project sign-off; all other related activities; and payment by the C/BSPMC. Generally, a contract becomes effective upon receipt by the winning supplier of the Notice to Proceed. In determining the contract implementation period, the winning supplier shall be given ample time to undertake any preparatory activities necessary for it to comply with the conditions of the contract. 6.1. Warranty For KC-NCDDP procured goods, a warranty is required for equipment (office, transport, production, post production, processing and storage), water pumps, machinery, motors and other similar items. Non-consumable items such as office supplies, construction materials, agricultural or aquacultural inputs, seedlings and trees and hand tools, among others need not be covered by warranty. Wear and tear due to normal usage of the

goods are excluded from the coverage of the warranty. The Supplier shall submit a Warranty Certificate that the Goods supplied under the Contract are new, unused, of the most recent or current models, and that they incorporate all recent improvements in design and materials, except when the technical specifications required by the C/BSPMC provides otherwise. The Supplier shall further specify in the Warranty Certificate that all Goods supplied under this Contract shall have no defect, arising from design, materials, or workmanship or from any act or omission of the Supplier that may develop under normal use of the supplied goods. In order to assure that manufacturing defects shall be corrected by the Supplier, a warranty shall be required from the Supplier either as retention money in an amount equivalent to at least ten percent (10%) of the final payment, or a special bank guarantee equivalent to at least ten percent (10%) of the Contract Price. The said amounts shall only be released after the lapse of the warranty period; provided, however, that the goods delivered are free from patent and latent defects and all the conditions imposed under this Contract have been fully met. The C/BSPMC shall promptly notify the Supplier in writing of any claims arising under the warranty. Upon receipt of such notice, the Supplier should, within the period specified in the contract and with all reasonable speed, repair or replace the defective goods or parts thereof, within 15 days, without additional costs to the C/BSPMC. In case the supplier does not act upon its notice, the C/BSPMC shall select the appropriate sanction from among the following options: (a) require the supplier to return the amount paid; (b) confiscate its performance or warranty security, where applicable, (c) automatically blacklist the supplier in all KC-NCDDP procurements. 6.2.

Amendment to Order

An Amendment to Order refers to any necessary adjustment within the general scope of the contract in any one or more of the following aspects in order to fully meet the requirements of the project: i.

Drawings, design or specifications of the goods, provided that: a. The goods to be furnished are to be specifically manufactured for the community; b. The change is an improvement of the goods and advantageous to the community; c. It is done at no extra cost; and d. It is not prejudicial to the losing bidders in the sense that such change/s couldnot have been foreseen during the conduct of the bidding and would havesignificantly affected the other bidders’ bids; ii. The method of shipment or packing; iii. The place of delivery; iv. The place of performance of the services; v. Additional items needed and necessary for the protection of the goods procured,which were not included in the original contract; or vi. Any other change affecting the specifications or scope of work of the goods and/or services to be procured. Such amendment may or may not result in an increase or a decrease of the contract price, and/or an extension or reduction of the delivery period. However, the amendment

should not have the result of changing the subject matter of the contract or the specifications of the goods or services, in any material aspect and to such an extent that, if introduced during the bidding stage, may have a significant effect on other bidders’ bids. Amendments to Order may be issued by the C/BSPMC at any time during contract implementation, provided that such adjustment is required to fully meet the requirements of the project. Any of the following circumstances may serve as basis for such amendment/s: i.

Emergency cases, fortuitous events or unforeseen contingencies arising duringproject/contract implementation, and such contingencies with an impact on theprocurement at hand, such as:

a. Changes in the conditions affecting the project, e.g., a change in the place ofdelivery; b. Time is of the essence in the implementation of the project, and any changesrequire immediate implementation; and c. Additional requirements have been identified as necessary for the protectionof the goods procured, such as changes in the packaging of the goods, oradditional items have become necessary to ensure that the goods aresufficiently protected from the elements; ii. When the contract does not reflect the real intention of the parties due to mistake or accident, and the amendment is necessary to reflect the parties’ intention; and iii. Other analogous circumstances that could affect the conditions of the procurement at hand. If an amendment to order increases or decreases the cost of, or the time required forexecuting any part of the work under the original contract, an equitable adjustment incontract price and/or delivery schedule should be mutually agreed upon between the parties concerned, and the contract should be modified in writing. Any increase in contract price must not exceed ten percent(10%) of the original contract price. Otherwise, the procurement should be subject to another bidding. Moreover, in the adjustment of the price, the supplier and the C/BSPMC must ensure that the principle of “no loss, no gain” is applied, such that neither party gains or loses anything from the resulting price adjustment. If the amendment to order consists of additional items, the price adjustment shall be based on the unit prices in the original contract for items of goods similar to those in the original contract. If the contract does not contain any rate applicable to the additional items, then suitable prices shall be mutually agreed upon between the parties, based on prevailing market prices. Any request for payment by the supplier for additional items must be accompanied by a statement with the approved supporting forms, giving a detailed accounting and record of the amount for which it claims payment. If the amendment to order consists of a change in drawings, design or specifications of the goods, method of shipment or packing, or place of delivery, the price adjustment shall be equivalent to the corresponding value of the change, based on prevailing market prices.

The following steps shall be undertaken in the issuance of an Amendment to Order: i.

The PIT determines the existence of condition/s that require an amendment to order. ii. The PIT discusses the adjustments in contract price and/or delivery schedule with the supplier, if necessary. iii. The PIT drafts the contract amendment containing the agreements reached with the supplier. iii. The contract amendment is submitted to the C/BSPMC Chairperson, for approval; iv. Upon approval by the C/BSPMC Chairperson, the PIT notifies the supplier to proceed with the work/delivery of items in accordance with the amendment. It shall also notify the PT of such approval, and furnish the latter with a copy of the amendedcontract. v. The supplier proceeds with the work/delivery of items in accordance with the amended contract. A supplier cannot proceed with the work under an Amendment to Order withoutapproval from the C/BSPMC Chairperson. Payment for any work or delivery done in accordance with an Amendment to Order shall notbe made unless the approval of the C/BSPMC Chairperson has beensecured. 6.3.

Suspension of Delivery

The C/BSPMC may suspend the delivery or contract implementation, wholly or partly, by writtenorder for a certain period of time, as it deems necessary due to force majeure or anyfortuitous event as defined in the contract.Appropriate adjustments shall be made in the delivery or contract schedule, or contract price,or both, and the contract shall be modified accordingly. When warranted, price adjustments may be made in accordance with the guidelinespreviously discussed in the immediately preceding section on “Amendment to Order.” Work must be resumed or delivery made either upon the lifting or the expiration of thesuspension order. However, if the C/BSPMC terminates the contract covered by such order, resumption of work cannot be done. The following steps are necessary for the issuance of a suspension order: i. i. ii. iii. iv. v. vi.

The PIT determines the existence of a force majeure or fortuitous event that will be the basis for the issuance of a suspension order. Based upon the findings and recommendation of the PIT, the C/BSPMC Chairperson issues a written order suspending the order or work, wholly or partly, for a certain period of time. The supplier shall take all reasonable steps to minimize the costs allocable to the order or work covered by the order during the suspension. The PIT discusses with the supplier any need for adjustments in the delivery or contract schedule and/or contract price, including any need to modify the contract. The PIT drafts the contract amendment containing the agreements reached with the supplier. The contract amendment is submitted to the C/BSPMC Chairperson for approval. Prior to the expiration of the suspension order, the PIT determines whether

or not the grounds for suspension are still existent. If such grounds continue to exist, or if it is no longer practicable to complete the delivery or continue with the work, it shall cancel the delivery of the items subject of the suspension order, or terminate the work subject of the order, by written notice. If, however, the grounds for suspension no longer exist, and completion of delivery or continuation of the work may already bedone, the PIT, with the approval of the C/BSPMC Chairperson shall lift the suspension order by written notice, thereby instructingthesupplier to proceed with the delivery or work inaccordance with the amended contract. 6.4.

Delays in Delivery and Liquidated Damages

The supplier must deliver the goods or perform the servicesprocured within the period prescribed in the Contract.If delays are likely to be incurred, the supplier must notify the C/BSPMC Chairperson in writing. It must state the cause/s and duration of the expected delay. The C/BSPMC Chairperson may grant time extensions, at its discretion, if based on meritorious grounds, with or without liquidated damages. In all cases, the request for extension should be submitted before the lapse of the original delivery date. The maximum allowable extension shall not be longer than the initial delivery period as stated in the original contract. In case the delay in the delivery of the goods/services exceeds a time duration equivalent to ten percent (10%) of the specified contract time plus any time extension duly granted to the Supplier, the C/BSPMC may terminate this Contract, forfeit the Supplier's performance security and award the same to a qualified Supplier. 6.4.1. Liquidated Damages Liquidated damages are damages agreed upon by the parties to a contract, to be paid in case of breach. When the supplier fails to satisfactorily deliver the goods or services under the contract within the specified delivery schedule, inclusive of duly granted time extensions, if any, the supplier shall be liable for damages for the delay and shall pay the C/BSPMC liquidated damages, by way of penalty, for every day of delay until such goods or services are finally delivered or performed and accepted by the C/BSPMC. The C/BSPMC need not prove that it has incurred actual damages to be entitled to liquidated damages. The supplier must pay the C/BSPMC liquidated damages, an amount equal to one-tenth (1/10) of one percent (1%) of the cost of the delayed goods or services scheduled for delivery or performance for every day of delay. The liquidated damages will be imposed until such goods or services are finally delivered or performed and accepted by theC/BSPMC.In no case shall the sum of liquidated damages reach ten percent (10%) of the contractamount. If it does, the contract shall automatically be rescinded by the C/BSPMC, withoutprejudice to other courses of action and remedies open to it. The C/BSPMC may also take over thecontract or award the same to a qualified supplier through direct contracting. In addition to theliquidated damages, the erring supplier’s performance security shall also be forfeited. The following steps shall be followed in the imposition of liquidated damages: i.

The supplier submits a written request to the PIT for an extension of the

delivery or performance period, citing the reason/s for suchdelay. ii. The C/BSPMC either approves or disapproves the request for extension. iii. If the extension is granted, the liquidated damages may or may not be imposed andthesupplier is informed of this in writing. The supplier is then asked to extend the validity of theperformance bond, to conform to the extended period. iv. If, however, the request for extension is denied, the PIT informs the supplier in writing of such denial, and ensures that the said notice or communication is received by the latter within a reasonable time from receipt ofthe request for extension. In this case, the C/BSPMC imposes the liquidated damages inaccordance with the provisions of the contract. v. If the supplier incurs delay and it does not request for anextension: a. The C/BSPMC informs, within a reasonable time from the first day of delay, the supplier that it shall imposethe liquidated damages agreed upon by the parties. b. Upon delivery, the C/BSPMC and the MITrecords the delay in the inspection documents, noting the amount of the liquidated damages imposable on the supplier. c. Upon payment, the amount of liquidated damages due is deducted from the total amount payable to the supplier, and the same shall be reflected in the DVs. Or, if the contract provides that the liquidated damages is to be collected from securities or warranties posted by the supplier, the C/BSPMC informs the Area Coordinator (AC) to call on the securities or warrantiesabout the delay and the corresponding liquidated damages imposable. 6.5.

Incidental Services

Incidental Services are those services ancillary to thesupply of the goods, s uch as transportation andinsurance, installation, commissioning, provision of technical assistance, training, and other such obligations of the supplier specified in the contractand the bidding documents. The Incidental Services must be clearly specified in the contract,and identified as separatecomponents from the goods tobe supplied or services to berendered, so that pricesindicated on the price scheduleshall be entered separately, inaccordance with the ITB. Thecost shall also beindicated in the contract.In particular, theseservices may refer to any of the following: i.

Performance or supervision of on-site assembly and/or start-up of the suppliedgoods; ii. Furnishing of tools required for assembly and/or maintenance of the supplied goods; iii. Furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods; v. Performance or supervision or maintenance and/or repair of the supplied goods, for aperiod of time agreed by the parties, provided that this service shall not relieve thesupplier of any warranty obligations under the Contract; vi. Training of the C/BSPMC ’s personnel, at the supplier’s plant and/or on-site, on assembly,start-up, operation, maintenance, and/or repair of the supplied goods; and vii. Any other related services necessary for completion of the project and indicated in thecontract. 6.6.

Spare Parts and Maintenance

Spare parts refer to extra components, equipment, tools, instruments or parts of machineryor apparatus that replace the ones that are damaged or worn out. The supplier may be required to provide any or all of the following materials, notifications,and information pertaining to spare parts manufactured or distributed by the supplier: i.

Such spare parts as the C/BSPMC may elect to purchase from the supplier, provided that this election shall not relieve the supplier of any warranty obligations under the contract; ii. Such spare parts that the C/BSPMC may be able to purchase from other suppliers/manufacturers but are compatible with the goods procured; and iii. In the event of termination of production of the spare parts: a. Advance notification to the C/BSPMC of the pending termination, in sufficient time to permit the C/BSPMC to procure needed requirements; and b. Following such termination, furnishing at no cost to the C/BSPMC the blueprints, drawings, and specifications of the spare parts, if requested. The supplier may likewise be required to issue acertification that spare parts, particularly those that are product-specific, shall continue to be manufactured by them within a period of time, e.g., five (5) years, after the bidding date. The above information shall be included in the Technical Bid. The C/BSPMC may include the delivery of a limited supply of fast-moving and/orhard-to-find spare parts in the technical specifications when procuring heavy equipment or machinery. This is to ensurethe continued use or operationof the equipment. 6.7.

Prices

The contract price must not vary from the price quoted by the supplier in its bid. This isbased on the rule that the contract, as awarded, should not differ in any material aspect fromthe terms stipulated in the bidding documents, considering that these terms were the basisfor the comparison of bids. Otherwise, the purpose of the Community Bidding process would have beendefeated. For KC-NCDDP funded sub-projects, no price escalation is allowed. 6.8. Payments The method and conditions of payment must be specified in the contract in accordance with the provisions of the community finance manual. 6.9. Subcontracts and Assignments Generally, a supplier may be allowed to subcontract a portion of the contract or project, which portion must not exceed twenty percent (20%) of the totalproject cost. The bidding documents must specify what are considered as significant/materialcomponent/s of the project. All subcontracting arrangements must be disclosed at the time of bidding, and subcontractors must be identified in the bid submitted by the supplier.

Any subcontracting arrangements made during project implementation and not disclosed at the time of the bidding shall not be allowed. The subcontracting arrangement shall not relieve the supplier of any liability or obligation under the contract. Moreover, subcontractors are obliged to comply with the provisions of the contract and shall be jointly and severally liable with the principal supplier, in case of breach thereof, in so far as the portion of the contract subcontracted to it is concerned. As a general rule, the supplier may not assign the contract, or any of its rights or obligations arising from the contract, to a third party, except with the C/BSPMC ’s prior written consent. Assignment of contractual obligations or the contract itself may generally not be done because this will enable a non-bidder to become a party to the contract. 6.10. Standards The goods supplied under the contract must conform to the standards mentioned in the technical specifications, which must preferably be Philippine national standards, or standards specified by the BPS. If there is no Philippine national standard applicable, the goods must conform to the authoritative standards appropriate to the goods’ country of origin. Such standards must be the latest issued by the concerned institution. 6.11. Inspection and Tests The C/BSPMC has the right to inspect and/or to test the goods to confirm their conformity to the contract specifications at no extra cost to it. The bidding documents and the contract must specify what inspections and tests are required by the C/BSPMC, and where these are to be conducted. The C/BSPMC must notify the supplier in writing, in a timely manner, of the identity of any representatives retained for these purposes. The inspections and tests may be conducted on the premises of the supplier or itssubcontractor(s), at point of delivery, and/or at the goods’ final destination. If conducted on the premises of the supplier or its subcontractor(s), all reasonable facilities and assistance, including access to drawings and production data, must be provided by the supplier to the inspectors at no charge to the C/BSPMC . The C/BSPMC must bear its own costs and expenses incurred in connection with its attendance at inspections, including, but not limited to, all traveling and board and lodging expenses. The C/BSPMC may require the supplier to carry out any test and/or inspection not required by the contract but deemed necessary to verify that the characteristics and performance of the goods comply with the technical specifications, codes and standards under the contract. The reasonable costs and expenses incurred by the supplier in carrying out such test and/or inspection will be added to the contract price. These tests shall be conducted by a government testing laboratory, or, where there is none for the particular item being procured, in any testing laboratory accredited by the DTI. The supplier must provide the C/BSPMC with a report of the results of any such test and/or inspection. These results will be conclusive of the quality of the items and not subject to further dispute between the parties. The C/BSPMC may reject any goods or any part thereof that fail to pass any test and/or inspection or do not conform to the specifications. The supplier shall either rectify or replace such rejected goods or parts thereof or make alterations necessary to meet the specifications at no cost to the C/BSPMC, and shall repeat the test and/or inspection, at no cost to the C/BSPMC, upon giving a notice pursuant to the contract.

The supplier shall agree in the contract that neither the execution of a test and/orinspection of the goods or any part thereof, nor the attendance by the C/BSPMC or itsrepresentative, shall release the supplier from any warranties or other obligations under the contract. 6.11.

Force Majeure

The Supplier shall not be liable for forfeiture of its performance security, liquidated damages, or termination for default if and to the extent that the Supplier’s delay in performance or other failure to perform its obligations under the Contract is the result of a force majeure. For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used interchangeably. In this regard, a fortuitous event or force majeure shall be interpreted to mean an event which the Supplier could not have foreseen, or which though foreseen, was inevitable. It shall not include ordinary unfavorable weather conditions; and any other cause the effects of which could have been avoided with the exercise of reasonable diligence by the Contractor. If a force majeure situation arises, the Supplier shall promptly notify the C/BSPMC in writing of such condition and the cause thereof. Unless otherwise directed by the C/BSPMC in writing, the Supplier shall continue to perform its obligations under the Contract as far as is reasonably practical, and shall seek all reasonable alternative means for performance not prevented by the force majeure. 6.12. Contract Termination 7.12.1. Termination for Default Any of the following conditions shall constitute grounds for termination of the contract for default: i.

There being no force majeure, the supplier fails to deliver any orall of the goods within the period(s) specified in the contract, or within any extension granted by the C/BSPMC pursuant to a request made by the supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price; ii. As a result of force majeure, the supplier is unable to deliver or perform any or all of the goods or services, amounting to at least ten percent (10%) of the contract price, for a period of not less than sixty (60) calendar days after the receipt of the notice from the C/BSPMC stating that the circumstance of force majeure is deemed to have ceased; Termination of a contract for defaults without prejudice to other remedies available to the C/BSPMC for breach of contract, such as payment of liquidated and other damages, if there are grounds for the latter. If the contract is not wholly terminated, the supplier shall continue to deliver the remaining goods or to perform the remaining services contracted. iii. The supplier fails to perform any other obligation(s) under the contract; or iv. The supplier, in the judgment of the C/BSPMC, has engaged incorrupt, fraudulent, collusive or coercive practices in competing for or in executing the contract. If the C/BSPMC terminates the contract in whole or in part, due to default, it may procure from third parties, through the appropriate alternative method of procurement,

goods or services similar to those undelivered. The supplier that defaulted will be liable to the C/BSPMC for any excess costs for such similar goods or services. 6.12.2. Termination for Insolvency The C/BSPMC may at any time terminate the contract by giving written notice to the supplier, if the supplier 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, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue to the C/BSPMC and/or the supplier. 6.12.3. Termination for Convenience The C/BSPMC , by written notice sent to the supplier, may terminate the contract, in whole or in part, at any time for its convenience. The notice of termination shall specify that the termination is for the C/BSPMC ’s convenience, the extent to which performance of the supplier under the contract is terminated, and the date upon which such termination becomes effective. Any of the following circumstances may constitute sufficient grounds to terminate contract for convenience: i.

If physical and economic conditions have significantly changed so as to render the project no longer economically, financially or technically feasible, as determined by the C/BSPMC Chairperson; ii. The C/BSPMC Chairperson has determined the existence of conditions that make project implementation impractical and/or unnecessary, such as, but not limited to, fortuitous event/s, changes in laws and government policies; iii. Funding for the project has been withheld or reduced by higher authorities through no fault of the C/BSPMC; or iv. Any circumstance analogous to the foregoing. The goods that are complete and ready for shipment within thirty (30) days after the supplier’s receipt of notice of termination shall be accepted by the C/BSPMC at the contract terms and prices. For the remaining goods, the C/BSPMC may elect: i.

To have any portion completed and delivered at the contract terms and prices; and/or ii. To cancel the remainder and pay to the supplier an agreed amount for partially completed goods and services 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 C/BSPMC which cannot be sold in the open market, it shall be allowed to recover partially from the contract, on a quantum merit basis. The fact of loss must be established before recovery may be made. 6.12.4. Procedures for Termination of Contracts: The following provisions shall govern the procedures for termination of this Contract: i.

Upon receipt of a written report of acts or causes which may constitute ground(s) for termination, or upon its own initiative, the Project Implementation Team (PIT) shall, within a period of seven (7) calendar days,

verify the existence of such ground(s) and cause the execution of a Verified Report, with all relevant evidence attached; ii. Upon recommendation by the PIT, the C/BSPMC Chairman shall terminate this Contract only by a written notice to the Supplier conveying the termination of this Contract. The notice shall state: a. that this Contract is being terminated for any of the ground(s) aforementioned, 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 to show cause as to why this Contract should not be terminated; and d. special instructions of the C/BSPMC, if any. iii. The Notice to Terminate shall be accompanied by a copy of the Verified Report; iv. Within a period of seven (7) calendar days from receipt of the Notice of Termination, the Supplier shall submit to the C/BSPMC Chairman a verified position paper stating why this Contract should not be terminated. If the Supplier fails to show cause after the lapse of the seven (7) day period, either by inaction or by default, the C/BSPMC Chairman shall issue an order terminating this Contract; v. The C/BSPMC may, at any time before receipt of the Supplier’s verified position paper described in item (d) above 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 receipt of the notice; vi. Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper, the C/BSPMC Chairman shall decide whether or not to terminate this Contract. It shall serve a written notice to the Supplier of its decision and, unless otherwise provided, this Contract is deemed terminated from receipt of the Supplier of the notice of decision. The termination shall only be based on the ground(s) stated in the Notice to Terminate; vii. The Supplier must serve a written notice to the C/BSPMC of its intention to terminate the contract at least thirty (30) 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 C/BSPMC. 6.13. Blacklisting The KC-NCDDP 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 contactors shall be referred to the Philippine Contractors Accreditation Board (PCAB) for license suspension/revocation.

CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED WORKS Subcontracting Inspection and Tests Dayworks Measurement of Works Responsibilities of the Contractor Contract Price and Payment Variation Orders Suspension of Work Contract Time Extension Delays in Work Completion and Liquidated Damages - Contract Termination - Contract Completion - Warranty and Defects Liability Period -

These contract implementation procedures shall apply to all procurements for infrastructure and civil works projects through Community Bidding, Community Shopping and Community Direct Contracting. Contract implementation commences when the winning contractor mobilizes its laborers, equipment and materials on the project site in accordance with the provisions of the contract, technical specifications and other requirements. The following are involved in contract implementation for works: Project Implementation Team (PIT) – is responsible for supervising the implementation of the project and for ensuring that this is done in accordance with the procedures set out in this Chapter and the provisions of the contract document in the case of the Community Bidding. The PIT is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. ii. Monitoring and Inspection Team (MIT) – is responsible for monitoring and inspecting whether the constructed works are in accordance with the drawings, plans and technical specifications. The MIT is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. iii. Audit and Inventory Team (AIT) – is responsible for conducting value for money audit and for ensuring the funds are utilized according to the required procedures. The AIT is composed of community volunteers selected by the C/BSPMC Chairperson for this purpose. iv. C/BSPMC Chairperson – is responsible for approving transactions at the community level, for signing the checks and for issuing and approving contract implementation related instructions. v. Municipal Financial Analyst – is responsible for processing vouchers and checks for payment purposes and for keeping and maintaining copies of procurement, finance and contract implementation documents at Area Coordinating Team (ACT) Office vi. Community Facilitator – responsible for reviewing and ensuring that all procurement, finance and contract implementation documents are in accordance with the requirements and procedures vii. Deputy Area Coordinator – responsible for providing technical assistance to the community, reviewing requests for variation or change orders for approval by the Area Coordinator and validating accomplishment reports among others. The DAC and the Municipal Engineer serves as the Project Supervisor for the sub-project viii. Area Coordinator (AC) – responsible for signing checks for payments, and approving variation or change orders, requests for time extension, suspension, among others. ix. Community Infrastructure Officer (CIO) – responsible for providing technical assistance to the community on matters related to the implementation of works contracts. i.

Contract implementation covers the following important milestones: contractor’s performance of his contractual obligations; C/BSPMC’s performance of its contractual obligations, as specified in the Contract; final acceptance or project sign-off; all other related activities; and payment by the C/BSPMC. Generally, a contract becomes effective upon receipt by the

winning contractor of the Notice to Proceed. In determining the contract implementation period, the winning contractor shall be given ample time to undertake any preparatory activities necessary for it to comply with the conditions of the contract. 7.1. Subcontracting Generally, a contractor may be allowed to subcontract a material or significant portion of the contract or project, which must not exceed fifty percent (50%) of the total project cost. The bidding documents must specify what are considered as significant/material component(s) of the project. Except if otherwise provided by the contract, the contractor shall not subcontract any part of the works without the prior consent of the C/BSPMC Chairperson. However, this consent shall not relieve the contractor of any liability or obligation under the contract. The contractor will be responsible for the acts, defaults and neglects of any subcontractor, his agents, servants or workmen as fully as if these were its own acts, defaults or neglects, or those of its agents, servants or workmen. All subcontracting arrangements must be disclosed at the time of bidding, and subcontractors must be identified in the bid submitted by the bidder. For them to be allowed to do so, subcontractors should also pass the eligibility check for the portions of the contract that they will undertake. 7.2. Contractor’s Program of Works 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 C/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. 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. The Contractor shall carry out and complete all the activities in accordance with the scope of works specified in the Contract. 7.3. Inspection and Tests All materials, plant/s and workmanship shall be of the kind described in the contract and in accordance with the instructions of the Project Supervisor. To ensure that this is the case, these materials, plant/s and workmanship will be subjected, from time to time, to such tests as the Project Supervisor may require. These tests must be at the place of construction, fabrication, or on site or at such other place or places as may be specified in the contract, or at all or any of such places. The Project Supervisor must, at all reasonable times, have access to the site and to all workshops and places where materials or plant are being manufactured, fabricated or prepared for the works. The contractor, for its part, shall afford every facility for, and every assistance in obtaining the right to such access. The Project Supervisor shall be entitled, during manufacture, fabrication or preparation of materials to be used in the project, to inspect and test these materials and the plant or plants

where these materials are being manufactured, fabricated, and/or prepared. If the materials are being manufactured, fabricated or prepared in workshops or places other than those of the contractor, the contractor must obtain permission for the Project Supervisor to carry out inspection and testing in those workshops or places. Such inspection or testing will not release the contractor from any obligation under the contract. If, at the time and place agreed above, the materials or plant are not ready for inspection or testing, the Project Supervisor may reject these materials or the plant and must notify the contractor of such rejection immediately. He/she must also do so if, as a result of the inspection or testing, he/she determines that the materials or plant are defective or otherwise not in accordance with the contract. The notice must state the Project Supervisor’s objection and the reasons for the objection. The contractor, for its part, must then promptly make good the defector ensures that rejected materials or plant comply with the contract. If the Project Supervisor so requests, the test of rejected materials or plant shall be made or repeated under the same terms and conditions. The Project Supervisor will, after consultation with the contractor, determine all the costs incurred in the repetition of the test or tests. These costs are recoverable from the contractor by the C/BSPMC and may be deducted from any monies due to the contractor. The Project Supervisor must notify the contractor accordingly, with a copy being furnished the C/BSPMC. To help ensure the quality of materials being used in infrastructure projects, the Bureau of Research and Standards (BRS) of the DPWH, the DOST or the DTI shall accredit the testing laboratories that can be used in C/BSPMC works projects. All C/BSPMCs implementing infrastructure projects must use only these laboratories. Only tests done by these laboratories shall be recognized and accepted, except for the testing of new materials to be undertaken through procedures approved by the DPWH Secretary. 7.4. Dayworks If applicable, as indicated in the contract, the dayworks rates in the contractor’s bid shall be used for small additional amounts of work, only when the Project Supervisor has given written instructions in advance for additional work to be paid for in that way. All works to be paid for as day works shall be recorded by the contractor on forms approved by the Project Supervisor. Each completed form shall be verified and signed by Project Supervisor within two (2) days of the work being done. The contractor shall be paid for dayworks subject to obtaining signed dayworks forms. 7.5. Measurement of Works The quantities set out in the Bill of Quantities are the estimated quantities for the works. They should not therefore be taken as the actual and correct quantities of the works to be executed by the contractor in fulfillment of his obligations under the contract. They can vary to up to ten percent (10%) of the contract price to account for variation orders. The Project Supervisor must, except if otherwise stated in the Quantities of the Detailed Designs, measure the value of the works actually in-place in accordance with the contract. This measurement will be the basis for the payment that will be made to the contractor in accordance with the Statement of Work Accomplished. The Project Supervisor must, when he/she needs to measure any part of the works, give reasonable notice to the contractor’s authorized agent, who must: i.

Attend or send a qualified representative to assist the Project Supervisor in

making such measurement; and ii. Supply all particulars required by the Project Supervisor. Procedures for the measurement of work may also be found in the KC-NCDDP Infrastructure Manual. 7.6. Contractor’s Obligations and Responsibilities The Contractor shall carry out the Works properly and in accordance with this Contract. The Contractor shall provide all supervision, labor, materials, plant and equipment, which may be required. The Contractor shall commence execution of the Works on the Start Date and shall carry out the Works in accordance with the Program of Work.The Contractor shall be responsible for the safety of all activities on the Site. During Contract implementation, the Contractor and his subcontractors shall abide at all times by all labor laws, and other relevant rules which may be applicable to the works Among such regulations or laws are: i.

Employment of unskilled local labor. 100% 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. ii. Traffic regulations, including provision of adequate warning signs and traffic barriers. iii. 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. During the execution of the works, the contractor must keep the site reasonably freeform all unnecessary obstruction. It must also store or dispose of any equipment and surplus materials and clear away and remove from the site any wreckage, rubbish or temporary works that are no longer required. Upon the issuance of the Certificate of Acceptance, the contractor shall remove from that part of the site to which the certificate relates all equipment, surplus material, rubbish and temporary works of every kind. It must leave such part of the site and works clean and in a workmanlike condition to the satisfaction of the Project Supervisor. However, it is entitled to retain until the end of the defects liability period such materials, equipment and temporary works he may need to fulfill his obligations in relation to the project. Unless otherwise provided for in the contract, the contractor must turn-over to the C/BSPMC all excess, used, unused and/or reusable materials paid for in the contract such as, formworks, safety gadgets and devices, etc. 7.7. Contract Price and Payment All contract prices and payment must be denominated and payable in Philippine currency. The method and conditions of payment shall be specified in the contract. Generally, payment for works can be made in two ways: unit price or lump-sum payment. Unit price payments are made based on the unit prices of specific items as applied to actual quantities accomplished according to the Statement of Work Accomplished. Lump-sum payments, on

the other hand, are based on the value of actual accomplished work in proportion to total contract cost. Any kind of payment, including advance and progress payments, must be made by the C/BSPMC as soon as possible, but in no case later than thirty (30) days after the submission of an invoice or claim by the contractor, accompanied by documents submitted pursuant to the contract, and upon fulfillment of other obligations stipulated in the contract. The C/BSPMC must also ensure that all accounting and auditing requirements are met prior to payment. The C/BSPMC should commence inspection within twenty-four (24) hours after receiving the Request for Inspection from the contractor. Price escalation is generally not allowed. For the given scope of work in the contracts awarded, the price must be considered as a fixed price. 7.7.1. Advance Payment The contractor can request for advance payment which must not exceed fifteen percent (15%) of the total contract price, and must be made in lump sum or, at the most, two (2) installments according to a schedule specified in the ITBand other relevant bidding documents. Moreover, it must be made only upon the submission by the contractor of a written request. The contractor must also submit to the C/BSPMC a bank guarantee equal in value to the advance payment and must be accepted by the C/BSPMC. The C/BSPMC must recover the advance payment by deducting from the progress payments until the advance is fully liquidated within the duration of the contract, and before full payment is made to the contractor. 7.7.2. Progress Payment The first progress payment may be paid by the C/BSPMC to the contractor after 20% of the work had been accomplished. Thereafter, payments can be made once a month, provided that the latter submits a Progress Billing or a request for payment for work accomplished. Payments shall be released within seven (7) calendar days upon submission of complete documents verified and approved by the PIT, C/BSPMC Chairperson and the DAC or Municipal Engineer. Such request for payment, including the Statement of Work Accomplished by the contractor, must be verified and approved by the DAC or Municipal Engineer. Except as otherwise stipulated in the ITB, materials and equipment delivered on the site but not completely put in place shall not be included for payment. The C/BSPMC has the right to deduct from the contractor’s progress billing such amount as may be necessary to cover third party liabilities. It must not process any progress payment unless the discovered defects are corrected. 7.7.3. Retention Money “Retention money” refers to the amount equal to ten percent (10%) of the progress payments, before deductions are made, that is withheld by the C/BSPMC to cover the uncorrected discovered defects and third party liabilities. It is collected from all progress payments until works equivalent to fifty percent (50%) of the value of works, as determined by the C/BSPMC, is accomplished. 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 continue to be imposed.

The total “retention money” shall be due for release after the defects liability period, upon final acceptance of the works. The contractor may request the C/BSPMC that, instead of retention money being withheld from each progress billing, it issues in favor of the C/BSPMC, a bank guarantee in an amount equivalent to the retention money substituted for. They must also be valid for a duration to be determined by the C/BSPMC and will answer for the purpose for which the ten percent (10%) retention is intended. 7.7.4. Final Payment The contractor may request for final payment upon one hundred percent (100%) completion of the work. This payment will be reduced by whatever balance remains of the amount that is needed in order to return to the C/BSPMC the fifteen percent (15%) advance payment previously made. 7.8. Variation Orders A Variation Order refers to any increase/decrease in quantities within the general scope of the project as bid and awarded, in any of the following aspects: i. Introduction of new work items that are not included in the original contract; or ii. 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 the bidding and the “as staked plans” or construction drawings prepared after a joint survey by the contractor and the C/BSPMC after award of the contract, or during actual construction. A Variation Order may either be in the form of a Change Order or Extra Work Order. A Change Order covers any increase/decrease in quantities of original work of items in the contract. An Extra Work Order covers the introduction of new work necessary for the completion/improvement or protection of the project which are not included as items of work in the original contract. As an example, there may be subsurface or latent physical conditions at the site that differ materially from those indicated in the contract. There might also be duly unknown physical conditions at the site of an unusual nature that differ materially from those ordinarily encountered and generally recognized as inherent in the work or character provided for in the contract. The addition/deletion of works should be within the general scope of the project as bid and awarded, and the deletion of the work should not affect the integrity and usefulness of the structure. The issuance of a Variation Order must conform to the following: i. That there will not be any short changes in the original design; ii. That it will not affect the structural integrity and usefulness of the structure; and iii. That it is covered by a Certificate of Availability of Funds (CAF), if necessary. Under no circumstances can a contractor proceed to commence work under any Change Order or Extra Work Order unless the C/BSPMC Chairperson has approved the order on the recommendation of the DAC or Municipal Engineer. The C/BSPMC Chairperson, may, subject to the issuance of the CAF, authorize the immediate start of work under any Change or Extra Work Order, subject to any or all of the following conditions:

i.

In the event of any emergency where the prosecution of the work is urgent to avoid any detriment to public service, or damage to life and/or property; and/or ii. When time is of the essence, for works in the critical path based on the approved PERT/CPM; However, the 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 fully approved does not exceed five percent (5%) of the adjusted original contract price whichever is less. Furthermore, immediately after the start of work, the corresponding Change Order or Extra Work Order must 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 same by the C/BSPMC Chairperson. For a Change Order or Extra Work Order involving a cumulative amount exceeding five percent (5%) of the original contract, no work may be commenced unless said Change Order or Extra Work Order has been approved by the C/BSPMC Chairperson on the recommendation of the DAC or the Municipal Engineer and a clearance from the RPMO. Variation Orders may be issued by the C/BSPMC at any time during contract implementation. However, the adjustment provided for in these orders must be necessary to fully meet the requirements of the project. The net cumulative amount of the Variation Order should not exceed more than ten percent (+10%) of the original project cost. If the adjustments provided for in a Variation Order costs more than ten percent (10%) of the original project costs, these shall be the subjects of another contract to be bid out if the works are separable (not part of the work to complete the original scope of work) from the original contract. However, if these adjustments are urgently necessary to complete the original scope of work, the C/BSPMC Chairperson, on the recommendation of the DAC or the Municipal Engineer, may authorize the Variation Order beyond ten percent (10%) but not more than twenty percent (20%). Clearance from the RPMO is required prior to commencement of any variation orders. The payment to the contractor for additional work under Variation Orders must be derived based on the following: i.

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 in the original contract shall be used. ii. For additional/extra works duly covered by Extra Works Orders involving network items that are not in the original contract, the unit prices will 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 C/BSPMC and the contractor. The direct unit costs of new components must also be based on the contractor’s estimate as validated by the C/BSPMC. The C/BSPMC must validate these prices through a documented canvass among three eligible suppliers in accordance with existing rules and regulations. The direct cost of the new work item must 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.

The request for payment by the contractor for any extra work must be accompanied by a statement, with the approved supporting forms, giving a detailed accounting and record of amount for which he claims payment. This request for payment must be included in the contractor’s statement for progress payment. The following must be undertaken in issuing a Variation Order: i.

Within seven (7) calendar days after the contractor discovers that there is a need for variation order, the said contractor must communicate the same to the C/BSPMC by giving it notice of the findings. Afterwards, the contractor has twenty-eight (28) days to submit a full documentation of the variation order. Failure to provide either of such notices in the time stipulated shall constitute a waiver by the contractor for any claim. ii. If the DAC or Municipal Engineer finds that a Change Order or Extra Work Order is justified, he/she must prepare the proposed order, accompanied with the following: a. Notices submitted by the contractor; b. The plans to effect the adjustments; c. The contractor’s 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 logbook thereof; and d. A detailed estimate of the unit cost of such items of work, together with his justifications for the need of such Change Order of Extra Work Order. iii. The DAC or Municipal Engineer, upon receipt of the proposed Change Order or Extra Work Order shall immediately conduct an on-the-spot investigation to verify the need for the work to be prosecuted. iv. After being satisfied that such Change Order or Extra Work Order is justified and necessary, the DAC or Municipal Engineer shall review the estimated quantities and prices. v. If, after review of the plans, quantities and estimated unit cost of the items of the work involved, the DAC or Municipal Engineer finds that the Change Order or Extra Work Order is in order and covered by the CAF, the same shall be approved. vi. The C/BSPMC shall notify the contractor to proceed with the work/delivery of items in accordance with the amendment. vii. The contractor shall proceed with the work/delivery of items in accordance with the amended contract. 7.9. Suspension of Work The C/BSPMC has the authority to suspend the work wholly or partly by written order dueto the following: i. Force majeure or any fortuitous event; or ii. Failure on the part of the contractor to: a. Correct bad conditions which are unsafe for workers or for the general public; b. Carryout valid orders given by the Project Supervisor; c. Perform any provisions of the contract; or d. Adjustment of plans to suit field conditions as found necessary during construction.

The contract shall specify a period of seven (7) calendar days from dateof receipt of the written order or notice, after which the said order may take effectand thus bind the contractor to immediately comply. The order/notice shall specify the period deemed necessary for its effectivity. The contractor has the right to suspend work operation on any or all projects/activities along the critical path of activities due to any of the following: i.

There exist right-of-way problems, that prohibit the contractor from performing work in accordance with the approved construction schedule; ii. Peace and order conditions make it extremely dangerous, if not impossible, to work, such conditions having been certified in writing by the PNP station which has responsibility over the affected area; iii. There is a failure on the part of the C/BSPMC to deliver government– furnished materials and equipment as stipulated in the contract; or iv. The non-payment of the contractor’s claim for progress billing beyond fortyfive (45) calendar days from the time the claim has been certified by the C/BSPMC Chairperson as having been supported by complete documentation, unless there are justifiable reasons which shall be communicated in writing to the contractor. The contractor may suspend work fifteen (15) calendar days after the C/BSPMC Chairperson has received a written notice of the suspension of work. Only in cases when the suspension of activities along the critical path is not due to the fault of the contractor may the suspension of work be considered in the extension of time. In such cases, the elapsed time between the effective order suspending operation and the order to resume work shall be allowed the contractor by adjusting the contract time accordingly. No payment can be made to the contractor for any standby time expense during the suspension period, except when prior clearance is secured from the C/BSPMC Chairperson and for justifiable reasons. Work must be resumed either upon notice from the C/BSPMC suspension order or upon the expiration of the suspension order.

of the lifting of the

The following steps are undertaken in the issuance of a suspension order by the C/BSPMC: i. ii. iii. iv. v. vi.

The PIT determines the existence of any of the grounds for suspension enumerated above. The PIT drafts the suspension order for the approval of the C/BSPMC Chairperson. The suspension order is issued to the contractor, stating the grounds therefor. Prior to the expiration of the suspension order, the PIT shall determine whether or not the grounds for suspension still exist. If such grounds continue to exist, or if it is no longer practicable to continue with the work, it shall terminate the work subject of the order or cancel the delivery of the items subject of such suspension. If, however, the grounds for suspension no longer exist, and continuation of the work is practicable, the PIT, with the approval of the C/BSPMC Chairperson, shall lift the suspension order and notify the contractor to proceed with the work/delivery of items in accordance with the amended contract.

7.10. Contract Time Extension The contracts may be extended under the following conditions: i.

There are additional works or other special circumstances that would entitle the contractor to an extension of its contract; ii. The affected activities fall within the critical path of the PERT/CPM network; iii. The contractor shall have notified the C/BSPMC that the amount of additional work or the occurrence of the special circumstance merits the extension of its contract, and that it had done so before the expiration of the contract and within thirty (30)calendar days after the start of the additional work or of the special circumstance has arisen; and i. The C/BSPMC, after due investigation and on the recommendation of the DAC and the Municipal Engineer finds the request justified, determines the appropriate extension period, and approves the request of the contractor for contract extension. If the contractor fails to notify the C/BSPMC within the time period provided for, it waives any claims to contract extension. No contract extension must be given to a contractor due to: i.

Ordinary unfavorable weather conditions, in that such weather conditions had already been taken into consideration and anticipated in the computation of the unworkable days; and ii. Inexcusable failure or negligence of contractor to provide the required equipment, supplies or materials. Some special circumstances to be considered for contract time extension: i. ii. iii. iv. v. vi.

Major calamities such as exceptionally destructive typhoons, floods and earthquakes, and epidemics; Non-delivery on time of materials, working drawings, or written information to be furnished by the C/BSPMC; Non-acquisition of permit to enter private properties within the right-of-way resulting incomplete stoppage of construction activities; Region-wide or nationwide shortage of construction materials, as certified by the DTI Secretary; Region-wide or nationwide general laborstrikes, as certified by the DOLE Secretary;and Serious peace and order problems as certifiedby the Municipal Chief of Police.

If a contractor incurs a delay and wishes to request for an extension of thecompletion of construction period: i.

It must submit a written request to the PITfor an extension of the completion or construction period, citing thereason/s for such delay. ii. The PIT shall either approve ordisapprove the request for extension. iii. If the extension is granted, the liquidated damages shall not be imposed andthe contractor will be so informed in writing. iv. If, however, the request for extension is denied, the PIT shall inform the contractor in writing of such denial, andensure that the said notice or communication is received by the latter within areasonable time from receipt of the request for extension. The C/BSPMC thenimposes the liquidated

damages in accordance with the provisions of thecontract and the procedures outlined below. If the Contractor incurs a delay and there is no request for extension: i.

The PIT shall, within a reasonable timefrom the first day of delay, inform the contractor that the C/BSPMC will impose theliquidated damages agreed upon by the parties. ii. Upon contract completion, the PIT and the MIT with the assistance of the DAC or Municipal Engineershall record the delay in the inspection documents,noting the amount of the liquidated damages imposable on thecontractor. iii. The amount of liquidated damages due shall be deducted from the totalamount payable to the contractor, and the same shall be reflected in thedisbursement vouchers. Or, if the contract provides that the liquidateddamages shall be collected from the bank guarantee posted by thecontractor, the PIT shall so inform the ACT to call on the guarantee about the delay and the corresponding liquidated damages imposable. 7.11. Delays in Work Completion and Liquidated Damages The contractor must complete the work procured within the period prescribed by the C/BSPMC as specified in the contract. If delays are likely to be incurred, the contractor must notify the C/BSPMC in writing, stating the duration and causes of the expected delay. The C/BSPMC may grant time extensions, at its discretion, if such extensions are meritorious, with or without liquidated damages. In all cases, the request for extension shall always be filed before the expiry of the original completion date. Maximum allowable extension shall not exceed the original construction period. 7.11.1. Liquidated Damages Liquidated damages are damages agreed upon by the parties to a contract, to be paid in case of breach. When the contractor refuses or fails to satisfactorily complete the works under the contract within the specified contract duration, plus any time extension duly granted, and is thus considered in default under the contract, it will be liable for liquidated damages for the delay. The contractor must pay the amount equal to one-tenth (1/10) of one percent (1%) of the contract cost of the delayed works for every day of delay. The liquidated damages will be imposed until such works are finally delivered or performed and accepted by the C/BSPMC. The C/BSPMC need not prove that it has incurred actual damages to be entitled to liquidated damages from the contractor, and the same shall not be by way of penalty. Such amount shall be deducted from any money due or which may become due the contractor under the contract and/or from the retention money or other securities posted by the contractor, whichever is convenient to the C/BSPMC. In no case shall the sum of liquidated damages exceed ten percent (10%) of the contract amount. If it does, the contract shall be deemed automatically terminated by the C/BSPMC, without prejudice to other courses of action and remedies available to it. The C/BSPMC may also take over the contract or award the same to qualified constructor

through direct contracting. In addition to the liquidated damages, the erring contractor’s performance security shall also be forfeited. 7.12. Contract Termination 7.12.1. Termination of Contract for Default The C/BSPMC Chairperson may terminate a contract for default when any of the following conditions attend its implementation: Due to the contractor’s fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more, without acceptable justification; ii. Due to the contractor’s fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the work, without acceptable justification; or iii. The contractor: i.

a. Abandons the contract works, refuses or fails to comply with a valid instruction of the C/BSPMC or fails to proceed expeditiously and without delay despite a written notice by the C/BSPMC ; b. 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; c. Does not execute the works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; d. Neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or e. Sub-lets any part of the contract works without approval by the C/BSPMC. The rescission of the contract shall be accompanied by the confiscation by the C/BSPMC of the contractor’s performance security. The contractor will also be recommended for blacklisting in all KC-NCDDP procurements. The contractor shall be paid on a quantum merit basis. 7.12.2. Termination of Contract for Unlawful Acts The C/BSPMC may terminate the contract in case it is determined prima facie that the 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: i. Corrupt, fraudulent, collusive and coercive practices; ii. Drawing up or using forged documents; iii. Using adulterated materials, means or methods, or engaging in production contrary to rules of science or the trade; and iv. Any other act analogous to the foregoing. The contractor shall be paid on a quantum merit basis. 7.12.3. Termination of Contract by Reason of Insolvency

The C/BSPMC Chairperson should terminate the contract if the 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 contractor, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the C/BSPMC and/or the contractor. 7.12.4. Termination of Contract at the Instance of the Contractor The contractor may terminate its contract with the C/BSPMC if the works are completely stopped for a continuous period of at least sixty (60) calendar days through no fault of its own, due to any of the following reasons: i.

Failure of the C/BSPMC to deliver, within a reasonable time, supplies, materials, right-of-way, or other items it is obligated to furnish under the terms of the contract; or ii. The prosecution of the work is disrupted by the adverse peace and order situation, as certified and approved by the Municipal Chief of Police. The contractor must serve a written notice to C/BSPMC of its intention to terminate the contract at least thirty (30) 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 C/BSPMC Chairperson. In cases of termination, the C/BSPMC shall return to the contractor its performance security and shall pay unpaid claims on a quantum meruit basis. 7.12.5. Termination of Contract for Convenience The C/BSPMC Chairperson, by written notice sent to the contractor, may terminate the contract, in whole or in part, at any time for its convenience. The notice of termination shall specify that the termination is for the C/BSPMC’s convenience, the extent to which performance of the contractor under the contract is terminated, and the date upon which such termination becomes effective. Any of the following circumstances may constitute sufficient grounds to terminate contract for convenience: i. ii. iii. iv. v.

If physical and economic conditions have significantly changed so as to render the project no longer economically, financially or technically feasible, as determined by the C/BSPMC Chairperson; The C/BSPMC Chairperson has determined the existence of conditions that make project implementation impractical and/or unnecessary, such as, but not limited to, fortuitous event/s, changes in laws and government policies; Funding for the project has been withheld or reduced by higher authorities through no fault of the C/BSPMC ; Failure of the C/BSPMC to acquire the necessary right-of-way; or Any circumstance analogous to the foregoing.

7.12.6.Termination of Contract due to Force Majeure: Either party may terminate the Contract by giving a thirty (30) day notice to the other for events beyond the party’s control, such as wars and acts of God such as earthquakes, floods, fires, etc. 7.13.

Contract Completion

Once the project reaches an accomplishment level of ninety-five percent (95%) of thetotal contract amount, the C/BSPMC Chairperson shall create an Inspectorate Team to conductpreliminaryinspection and to submit a punch-list within a period of fifteen (15) days. This punch-list will contain, among others, the remainingworks, work deficiencies for necessary corrections, and the specific duration/time tofully complete the project considering the approved remaining contract time. The Contractor shall complete the items in the punchlistin preparation for the finalturnover of the project. If the Final Account is still unsatisfactory after it has been resubmitted, the Project Supervisor shall decide on the am ount payable to the Contractor and issue a payment certificate. The Contractor shall request the C/BSPMC to issue a certificate of completion of the Works upon completion of the punch-list. The DAC or Municipal Engineer will recommend such a certificate when he determines that the work is satisfactorily completed. The C/BSPMC shall take possession of the site within seven (7) days upon issuance of certificate of completion of the Works. The Contractor shall supply the DAC or Municipal Engineer 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 DAC or Municipal Engineer shall issue a Defects Liability Certificate after the Contractor has fulfilled its obligation under the Contract 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. 7.14. Warranty and Defects Liability Period A warranty is required to ensure that the Contractor will correct structural defects and failures. A one-year period after the completion of the project, called the defects liability period, is observed until final acceptance by the C/BSPMC. The Contractor shall assume full responsibility for the contract work within the defects liability period and shall be held responsible for any damage or destruction of the works except those occasioned by force majeure. 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 C/BSPMC Chairperson has issued an order to undertake repair. 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 case of Contractor’s failure or refusal to correct a defect within the time specified by the order, the C/BSPMC shall undertake such repair works and shall be entitled to full reimbursement of expenses incurred upon demand at the cost of the contractor. The DAC or Municipal Engineer will assess the cost of having the defect corrected. The C/BSPMC shall recover these amounts by deducting from the amounts due to the Contractor. Any Contractor who fails to comply with the preceding paragraphs shall suffer perpetual disqualification from participating in any KC-NCDDP projects. 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 from final acceptance, except those occasioned by force majeure and those caused by other parties. 7.14.1. Warranty Period

After final acceptance of the project by the C/BSPMC, the contractor shall be held responsible for structural defects and/or failure of the completed project within the following warranty periods from final acceptance, except those occasioned by force majeure and those caused by other parties: i.

Permanent Structures: Fifteen (15) years Buildings of types 4 (steel, iron, concrete, or masonry construction with walls, ceilings, and permanent partitions of incombustible fire resistance) and (steel, iron, concrete, or masonry construction), steel and concrete bridges, and other similar structures;

ii. Semi -Permanent Structures: Five (5) years Buildings of types 1 (wooden), 2 (wood with 1 hour fire resistance), and 3(masonry and wood construction), concrete roads, asphalt roads, river control, drainage, irrigation and drainage canals, municipal ports and river landing, deep wells, rock causeway, and other similar structures; and iii. Other Structures: Two (2) years Bailey and wooden bridges, shallow wells, spring developments, and other similar structures. In cases where structural defects and/or failures arise during the warranty period, the following persons/parties shall be held liable individually or solidarily, as the case maybe: Contractor – Where structural defects and/or failures arise due to faults attributable to improper construction use of inferior quality/substandard materials, and any violation of the contract plans & specifications, the contractor shall beheld liable; ii. DAC or Municipal Engineer – the appropriate C/BSPMC officer concerned shall be held liable in cases where the structural defects/failures are due to his/their willful intervention in altering the designs and other specifications; negligence or omission in not approving or acting on proposed changes to noted defects or deficiencies in the design and/or specifications; and the use of substandard construction materials in the project; iii. Users - In cases where structural defects/failures are due to abuse/misuse by the end user of the constructed facility and/or non–compliance by a user with the technical design limits and/or intended purpose of the same, then the user concerned shall be held liable. i.

The term “structural defects” shall mean major faults/flaws/deficiencies in one or more key structural elements of the project which may lead to structural failure of the completed elements or structure. The term “Structural Failures” is defined as an occurrence where one or more key structural elements in an infrastructure facility fails or collapses, thereby rendering the facility or part thereof incapable of withstanding the design loads, and/or endangering the safety of the users or the general public. In case of structural defects/failures occurring during the applicable warranty period provided above, the C/BSPMC shall undertake the necessary restoration or reconstruction works and shall be entitled to full reimbursement by the parties found to be liable, of expenses incurred upon demand, without prejudice to the filing of appropriate administrative, civil, and/or criminal charges against the responsible persons as well as the forfeiture of bank guarantee posted in favor of the C/BSPMC.. 7.15. Settlement of Disputes:

The C/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 KC-NCDDP. In case of further disagreement either party can take the matter to arbitration in accordance with the Law governing the Contract.

CHAPTER EIGHT: COMMUNITY BASED PROCUREMENT MONITORING - Importance of Community Procurement Monitoring - Community Procurement Compliance Monitoring - Project Billboard - Community Procurement Performance Monitoring

- Integrated Procurement Compliance and Performance Monitoring Report - Procurement Post Review Assessment

8.1. Importance of Community Procurement Monitoring Procurement monitoring is the process of collecting information on procurement related activities for the purpose of learning from experiences to improve future practices and activities, promoting accountability on the proper use of resources and results obtained, making informed decisions and empowering project beneficiaries. It allows results, processes and experiences to be documented and used as a basis to steer decision-making and learning processes for procurement action. Since the KC-NCDDP primary objective is to bring more equitable services and improve human outcomes in the poorest areas of the country, it is important that the resources allocated for the purpose of procuring these services are properly managed and skillfully monitored to ensure compliance and to realize project objectives. The empowerment of community members and their active involvement in the process of procuring the services that will eventually redound to their benefit is expected to minimize corruption and the mismanagement of funds. Procurement monitoring under the KC-NCDDP shall focus on three important aspects: (a) compliance to the procurement procedures and guidelines discussed in this manual, (b) the evaluation of performance in comparison to the community procurement plan and the overall project plans and programs; (c) fiduciary assessment. Procurement com pliance monitoring is expected to identify and evaluate risks and vulnerable areas in the procurement process, and to generate appropriate risk and anti-corruption mitigation measures. Procurement performance monitoring, on the other hand, is expected to help determine accomplishment against planned targets at the community, regional and national levels, to document lessons learned to help improve the overall procurement policies and procedures, and to identify additional inputs needed in the training and capacity building of community based procurement volunteers. Procurement fiduciary or post review assessment refers to the evaluation conducted by international financial institutions, involved in the KC-NCDDP, the NPMO and COA to ensure that a high standard of enforcement is applied in the procurement processes so that there is no uneconomic or inefficient procurement of goods, works, and services using the loan’s resources. 8.2. Community Procurement Compliance Monitoring Procurement compliance monitoring refers to the review undertaken to ensure that the procurement procedures followed by community based procurement volunteers are in accordance with those discussed in this Community Based Procurement Manual (CBPM). The Deputy Area Coordinator (DAC) is designated to conduct the procurement review in

order to monitor procurement compliance for goods and works. The DAC is expected to possess a working knowledge of procurement procedures to determine community compliance, to help resolve issues related to the procurement at hand, to detect the red flags and abnormalities and areas for improvement as well as to recommend risk mitigation measures to address these issues, red flags and weaknesses. For the procurement of works, the DAC may refer engineering and other related issues to the Municipal Engineer (ME) or to the Community Infrastructure Officer (CIO). The DAC shall conduct a review of all procurements of each C/BSPMC within one month after the award of every contract. The objective of the procurement review is to identify the level of understanding of procurement personnel of the procedures discussed in this manual and possible problems encountered in the course of the procurement and to come up with an action plan to address these issues. There are four important steps that the CF must follow in procurement compliance monitoring. These are: i.

Checking the completeness of the procurement and finance documents by filling up the simplified checklist found in CBPM Form F-1; ii. Completing the Procurement Compliance Monitoring Report (PCMR) Form (CBPM Form F-2)within one month after the award of each contract; iii. Identifying issues, concerns and red flags encountered and reporting this in Section B of the PCMR Form. In case of problem procurements where there are serious violations of the procurement procedures, findings of red flags or issues that cannot be resolved at the AMT level, a formal report shall be submitted to the RPMO or NPMO identifying the problem areas, red flag findings and recommendations to address these issues or requested decision and action at the regional and national level. The regional or national staff will in turn provide the applicable management action and decision, undertake corrective measures, intensify project supervision or impose appropriate sanctions on erring local officials in case there are findings of corruption. iv. Upon completion of all the PCMR, the DAC shall consolidate all the reports for communities within his/her area of jurisdiction on a quarterly basis. The ACT shall in turn review all reports and shall submit the same including all supporting documents within ten (10) days after the end of each quarter to the Regional Project Management Office (RPMO). The RPMO shall thereafter consolidate all submitted reports and shall prepare a regional Procurement Performance and Compliance Monitoring Report (PPCMR) for all projects within the region within five (5) days after submission of all reports coming from the AMTs and shall submit the same to the NPMO for further consolidation into a national report. For purposes of procurement compliance monitoring, issues and concerns refer to problems, issues on interpretation of procedures, constraints that the BAC or the C/BSPMC may encounter in the course of the procurement such as lack of qualified suppliers or contractors, absence of banks to provide bid and performance securities, etc. that may need clarification, further action or decision of higher authorities at the regional or national levels. Red flags are warning signals that may refer to possible violations in the procurement procedures that are deliberate and meant to commit acts of corruption. These red flags 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 red flags also serve as areas of risk that need to be reported and addressed more closely either by the community or by higher authorities. Section B of the PCMR is a report on the recommended action to be taken by the community to address possible areas of weakness, issues and concerns that can be solved at their levels.

As part of enhanced oversight and support mechanisms, the RPMO will also conduct 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 KCNCDDP procedures, particularly with regard to procurement. 8.3. Project Billboard As part of the transparency initiative of the KC-NCDDP, all community based sub-projects shall install project billboards to inform the general public on the existence and status of the sub-projects. It shall be placed at least 5 meters away from any commercial or political billboard/s and shall provide information on the name of the project, project description, project cost, name of contractor, project timetable (duration, start and completion date), and percentage of physical and financial accomplishment. The project billboard shall not include the names of any politicians. The A/MCT shall remind the C/BSPMC to update the billboard and report on accomplishments on a monthly basis for transparency purposes. Likewise, A/MCT shall coach the volunteers on how to present the rates of accomplishment for better understanding of all community members and the public. 8.4. Community Procurement Performance Monitoring Procurement performance monitoring refers to activities to ensure that the procurement is done in accordance with the community procurement plan. This shall be based on actual accomplishments against planned targets based on the program of works and the CPP. The accomplishment for each procurement package identified, validated and approved by the C/BSPMC Chairperson and the BAC are reported and shall include information on physical and financial accomplishment, adherence to project schedule and timelines and issues and concerns encountered in the course of project implementation. For works sub-projects, the performance monitoring report shall be coordinated and consistent with the Monthly Physical Accomplishment Report discussed in the Community Based Infrastructure Sub-Project Manual. Physical accomplishment shall be computed as discussed in the said manual. For procurement of goods, physical accomplishment shall be based on the percentage of goods delivered against the purchase order issued. The accomplishment report shall include pictures taken of the goods or works procured during the period of reporting. The data shall be used for future plans to develop a geo-tagging system for all sub-projects under the KCNCDDP. For municipalities with existing geotagging facilities particularly those with other World Bank funded projects, the ACT may coordinate with the WB Project Team Leader to include the community project in its reporting system. The Procurement Performance Monitoring Report (PPMR) format is shown in CBPM Form F-3. Procurement accomplishment is reported on a monthly basis until the contract from the time the contract is awarded to project completion. Lessons learned on issues, concerns and red flags from different regions and areas are consolidated to improve national policies and procedures and to develop appropriate training interventions to strengthen and enhance the capacity of community procurement volunteers. The DAC shall be responsible for preparing the accomplishment report to monitor procurement performance. This shall be done on a monthly basis, or when making a request for fund release and is submitted to the ACT for consolidation and further submission to the RPMO. Additional inputs to the accomplishment report include the report on the actions taken with regards to risk mitigation measures identified in the Procurement Compliance Monitoring Report. The DAC may request the Municipal Engineer to assist in the preparation of the report.

The following steps are to be observed in the preparation of the procurement performance monitoring report: i.

The DAC shall gather all available data with regards to the performance of all the procurements of each C/BSPMC and shall take pictures of the actual goods or project site where the sub-project is implemented; ii. The DAC shall prepare a report using the Procurement Performance Monitoring Report Form for submission to the ACT. For works, the DAC shall refer to the Barangay Sub-Project Work Schedule & Physical Progress Report; iii. The DAC shall prepare a consolidated report for all communities under its jurisdiction and shall submit the same to the RPMO; iv. Consequently, the RPMO through the Community Procurement Officer shall consolidate all reports from the ACTs into a regional report for submission to the NPMO and shall post the report in its regional website. 8.5. Integrated Procurement Compliance and Performance Monitoring Report On a quarterly basis, the NMPO shall prepare and issue an Integrated Procurement Compliance and Performance Monitoring Report (IPCPMR) that includes the consolidated accomplishments of all KC-NCDDP funded sub-projects from all RPMOs and shall post the same in the KC-NCDDP website for the information of all concerned. The format for this report is found in CBPM Form No F-4. 8.6. Procurement Post Review Assessment The ADB, WB, DSWD and COA conduct procurement post review assessments at various stages of the procurement process to evaluate procedural compliance and performance, among others. For these post review assessments, the procedures shall be based on the existing guidelines of such institutions with the project related procurement monitoring reports as basis. The Internal Audit Department of the DSWD conducts a regular ex post fiduciary review of all KC-NCDDP activities in terms of adequacy of compliance to systems and procedures using the data obtained from the Procurement Compliance and Performance Monitoring Report.

GLOSSARY 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 C/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 C/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 bidding 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 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 and/or goods 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-NCDDPprocurement that allows broad participation by eligible and qualified suppliers and contractors to put forward offers for a community project. 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. Community Bidding- a method of procurement which is open to participation by any interested and qualified party and which consists of the following processes: advertisement, pre-bid conference, receipt and opening of bids, evaluation of bids, postqualification,and award of contract. Community driven development (CDD) - 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. CommunityDirect Contracting - a method of procurement of goods and works where the community directly negotiates a contract with a technically, legally and financially capable supplier or contractor. Community Shopping- a method of procurement where the community simply requests for the submission of price quotations from a minimum of three suppliers for readily available off-the-shelf goods or standard specification commodities of small value or a minimum of three contractors for simple works of small value who are of known qualifications. 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 providers or professional expertise 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; 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 • 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. • 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 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 anything 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 C/BSPMC Chairman up to the date within which, the contractor shall still be liable for defects, shrinkage or other faults as determined by C/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 Contracting – an alternative method of procurement of goods and infrastructure projects whereby the C/BSPMC directly negotiates a contract with a technically, legally and financially capable supplier or contractor. 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 or distributor 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 Check - a procedure used to determine if a prospective bidder is eligibletoparticipate in the bidding at hand. 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 C/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 C/BSPMC. Goods and services - 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 Barangay Sub-Project Management Committee (C/BSPMC). 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 bid- a proposal submitted by a supplier that is considered disqualified due to the following reasons: (a) late submission; (b) inability to meet the eligibility requirements such as, non-submission of correct bid security, or lack of eligibility or technical requirements, among others. Ineligible Bidder – a contractor, manufacturer, supplier or distributor 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. Instruction to Bidders (ITB) – outlines the specific instructions that the bidder needs to follow in the preparation of his/her bid. Invitation to Bid (IB) - serves as the notice to the public and all interested parties of the procurement and bidding opportunities of the community. 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. Notice of Award – the document issued by the C/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 C/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. Off-the-shelf goods procurement - applies to the purchase of readily available goods from local market outlets/stores. Pakyaw contract - an alternative method of procurement where the partial or full implementation of an infrastructure project or items of work for its completion is carried out by skilled or unskilled labor from the community or its vicinity. 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 and Infrastructure Projects by the C/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.) Purchase Order - a contract between the community and the supplier/dealer for the delivery of supplies, subject to stipulations in the order.

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. 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 invitationto-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 C/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 C/BSPMC under Defects Liability Period provision of the contract. For performance guarantees in the form of cash for contracts that are nearing the end of KC-NCDDPproject, such guarantee shall be replaced with a bank guarantee from a reputable bank. Short term services procurement - the purchase of non-consultancy service requirements available in the local community and requiring a very limited period of time. Small value procurement - a method for the procurement of goods, services, and works where direct purchase is used for items of very small quantities and value since it is more practical and economical to do so. Small works procurement - the purchase of construction related service requirements available in the local community and requiring a very limited period of time and skilled labor which would be more economical to procure as small works rather than pakyaw contract. 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. Special Power of Attorney- a legal document where a principal grants authority to an agent who is an officer or staff of the firm to represent him in certain procurement related transactions in case he is not available. 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. Supplier of good standing - one who is known in the community to be in the business of providing the goods to be procured for at least one year, duly registered with the DTI, SEC or CDA and possessing a mayor’s permit/municipal license from the supplier’s principal place of business with no outstanding record of being blacklisted by any government agency or local government unit. Technical Bid – one of two components comprising a bid, the other being Financial Bid. Technical specifications- refers to the physical description of the goods or services, as well as the requirements of the community in terms of the functional, performance, environmental interface and design standard requirements to be met by the goods to be manufactured or supplied, or the services to be rendered. Tender – See Bid. Unbalanced Quotation/Bid- a bid where part of the cost of one work item is shifted to another item of work making the cost of such item unreasonably high and other items unreasonably low. Warranty – an undertaking by the supplier, manufacturer or distributor to guarantee that it will correct any manufacturing defects of the goods procured by the C/BSPMC. Works or Infrastructure Projects –refers to undertakings to construct, improve, upgrade, rehabilitate, demolish, repair, restore, or maintain small scale infrastructure and all types of physical works identified under the KC-NCDDP, fabrication of equipment and structural parts, as well as physical labor to complete such projects.

PERIOD OF ACTION ON PROCUREMENT ACTIVITIES

COMMUNITY SHOPPING ACTIVITIES Preparation of Request for Canvass Conduct of Pre-Procurement Conference Posting of Notice of Request for Quotation Issuance of Request for Quotation Conduct of Supplier/ Contractor Conference Site Visit or Inspection Submission and Opening of Quotations Quotation Evaluation Postqualification Prior Review of Contract (No Objection Letter) Sub-Total Issuance of Notice of Award PO/Contract Preparation and Signing Issuance of PO or Notice to Proceed TOTAL

DEADLINE

Once for a minimum period of 3 c d

DURATION (IN CALENDAR DAYS) GOODS WORKS MIN MAX MIN Max 1

1

1

1

1

1

1

1

1

1

1

1

1

3

1

3

1

1

1

1

1 1

1 3

1 1

1 3

1

1

5 (RPMO) 5 (NPMO)

5 (RPMO) 5 (NPMO)

1 3 5 (RPMO) 5 (NPMO)

2 5 5 (RPMO) 5 (NPMO)

23

27

2

2

26 3 3

33 7 5

1

1

1

2

26

29

33

47

COMMUNITY DIRECT CONTRACTING Activities Preparation of Request for Canvass Conduct of Pre-Procurement Conference Posting of Notice of Request for Quotation Issuance of Request for Quotation Conduct of Supplier/ Contractor Conference Site Visit or Inspection Submission and Opening of Request for Quotation Quotation Evaluation Prior Review of Contract (No Objection Letter) Sub-Total Issuance of Notice of Award PO/Contract Preparation and Signing Issuance of PO or Notice to Proceed TOTAL

Deadline

Once for a minimum period of 3 c d

DURATION (in calendar days) GOODS WORKS Min Max Min Max 1 1 1 1 1

1

1

1

1

1

1

1

1

3

1

3

1

1

1

1

1

1

1

1

1

3

1

3

1 5 (RPMO) 5 (NPMO)

1 5 (RPMO) 5 (NPMO)

1 5 (RPMO) 5 (NPMO)

2 5 (RPMO) 5 (NPMO)

23

27

23

28

2

2

3 3

7 5

1

1

1

2

26

30

30

42

COMMUNITY BIDDING ACTIVITIES Preparation of Bidding Documents Conduct of Pre-Procurement Conference Posting of Invitation to Bid Issuance of Bidding Documents Conduct of Pre-Bid Conference Site Visit or Inspection Submission and Opening of Bids Bid Evaluation Postqualification Prior Review of Contract (No Objection Letter) Sub-Total Issuance of Notice of Award Contract Preparation and Signing Issuance of Notice to Proceed TOTAL

DEADLINE

DURATION (IN CALENDAR DAYS) GOODS WORKS MIN MAX MIN MAX 1 3 1 3 1

1

1

1

Once for a minimum period of 7 c d 2 weeks from posting of IB

1

1

1

1

7

14

7

14

7 days before bid opening

1

1

1

1

1 1

1 1

1 1

1 1

1 1

3 3

1 1

3 3

5 (RPMO) 5 (NPMO)

5 (RPMO) 5 (NPMO)

5 (RPMO) 5 (NPMO)

5 (RPMO) 5 (NPMO)

30

43

30

43

3 2

7 5

3 2

7 5

1 36

3 58

1 36

3 58

ANNEXES: Sample Procurement Forms and Bidding Documents

ANNEX A: Procurement Planning Forms

CBPM Form A-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT COMMUNITY PROCUREMENT PLAN (CPP) Name of Proposed Community Project : ____________________________________ Date Prepared: _____________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Estimated Cost: _______________ KC/Grant Cost : _______________ LCC (Cash): ___________________ Community Project Duration: _______________ Proposed Project Implementation Schedule: ___________________ Estimated Cost: 1st Tranche ______________ 2nd Tranche ______________ 3rd Tranche _______________ Type of Plan: ( ) Proposed ( ) Actual Items to be Procured Quantity Unit Total Procurement Method Sources of Funds Schedule of Fund Schedule of Cost Grant LCC Release Procurement Package No.

Sub-Total Package No.

Sub-Total Package No. Sub-Total Package No.

Sub-Total GRAND TOTAL Prepared by: _____________________ Procurement Team Head (Name and Signature)

Reviewed by: ________________________ DAC/Municipal Engineer (Name and Signature)

Approved by: ___________________ C/BSPMC Chairperson (Name and Signature)

Comments/Remarks

CBPM Form A-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT PROCUREMENT ACTION PLAN Name of Proposed Community Project : ____________________________________ Date Prepared: _____________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Estimated Cost: _______________ KC/Grant Cost : _______________ LCC (Cash): ___________________ Community Project Duration: _______________ Proposed Project Implementation Schedule: ___________________ For other methods of procurement, please identify procedures as discussed in the Community Based Procurement Manual Timeline to Complete Timeline to Complete the Activity Responsible Volunteers & Procurement Responsible Volunteers Procurement Activities the Activity (Inclusive (Inclusive Dates ) Project Staff Activities & Project Staff Dates ) Procurement Planning 1. Preparation of CPP 2. Finalization of Packages & CPP 3. Preparation of Procurement Documents Community Bidding 1. Advertisement/Posting of Invitation to Bid 2. Pre-Bid Conference and Site Inspection 3. Issuance of Bidding Documents 4. Submission and Opening of Bids 5. Bid Evaluation 6. Postqualification 7. Issuance of NOL and Notice of Award 8. Contract Signing and Approval 9. Issuance of Notice to Proceed Community Shopping 1. Serving of Canvass/Invitation to Quote 2. Pre-Quote Conference 3. Submission and Opening of Quotations 4. Quotation Evaluation 5. Postqualification 6. Issuance of NOL and Notice of Award 7.Signing and Approval of PO 8. Issuance of PO Prepared by: ____________________________ Procurement Team Head

Checked by: _____________________ Deputy Area Coordinator

Approved by: BSPMC Chair person

CBPM Form A-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT MARKET SURVEY OF AVAILABLE SUPPLIERS AND CONTRACTORS Name of Proposed Community Project : ____________________________________ Date Prepared: _____________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Estimated Cost: _______________ KC/Grant Cost : _______________ LCC (Cash): ___________________ Community Project Duration: _______________ Proposed Project Implementation Schedule: ___________________ Items to be Procured

Prepared by: _____________________ Procurement Team Head (Name and Signature)

Quantity

Unit

Names of Possible Suppliers and Contractors

Reviewed by: ________________________ DAC/Municipal Engineer (Name and Signature)

Market Price

Availability of PS Mark Yes No

Approved by: ___________________ C/BSPMC Chairperson (Name and Signature)

Possible Procurement Method

CBPM Form A-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT SURVEY OF AVAILABLE CONTRACTORS AND LABORERS Name of Proposed Community Project : ____________________________________ Date Prepared: _____________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Estimated Cost: _______________ KC/Grant Cost : _______________ LCC (Cash): ___________________ Community Project Duration: _______________ Proposed Project Implementation Schedule: ___________________ Work Items to be Procured

Prepared by: _____________________ Procurement Team Head (Name and Signature)

Quantity

Unit

Availability of Local Contractors Name Address Estimated Price

Reviewed by: ________________________ DAC/Municipal Engineer (Name and Signature)

Skilled

Availability of Local Labor Daily Rate Unskilled

Approved by: ___________________ C/BSPMC Chairperson (Name and Signature)

Daily Rate

Possible Procurement Method

ANNEX B: COMMUNITY SHOPPING AND DIRECT CONTRACTING FORMS FOR GOODS AND WORKS

COMMUNITY SHOPPING AND DIRECT CONTRACTING FORMS TABLE OF CONTENTS Notice of Request for Quotation for Goods (B-1) ..................................................................171 Notice of Request for Quotation for Works (B-1) ..................................................................173 Request for Quotation/Canvass Form for Goods (B-2) ........................................................175 Request for Quotation/Canvass Form for Works (B-2) .........................................................176 Acknowledgement Receipt (B-3) ...........................................................................................178 Abstract of Canvass/Quotation for Goods (B-4) ...................................................................179 Abstract of Canvass/Quotation for Works (B-5) ....................................................................180 Purchase Order for Goods (B-6) ...........................................................................................181 Contract Agreement for Works (B-7).....................................................................................183 Canvass Form for Lease of Equipment (B-8)........................................................................185 Puchase Order for Lease of Equipment (B-9).......................................................................186 Equipment Lease Agreement (B-10) .....................................................................................188

CBPM Form B-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ NOTICE OF REQUEST FOR QUOTATION FOR GOODS (For Posting and Personal Delivery) Date: __________________ The community of (Name of Barangay), through its Bids and Awards Committee (BAC) invites suppliers/distributors/contractors of good standing to submit quotations for the following goods to be procured under community shopping/community direct contracting (select one) receiving assistance from the DSWD KALAHI-CIDSS National Community Driven Development Project (KC-NCDDP). Items No.

Description/Specs of Items

TOTAL Amount in Words:

Qty

Unit

Unit Cost

Total

P

Suppliers of good standing should be in the business of providing goods for at least one year as shown by its business name registration with the Department of Trade and Industry (DTI) for sole proprietorship, Securities and Exchange Commission (SEC) for partnerships and corporations or registration with the Cooperatives Development Authority (CDA) for cooperatives. Suppliers/distributors/contractors shall also submit a copy of the mayor’s permit/municipal license from his/her place of business and shall have no outstanding record of being blacklisted by any government agency. Existing suppliers of KC-NCDDP subprojects should show satisfactory completion of all contracts awarded with no slippage of more than 15% on any contract. Requests for Quotation (RFQ) or canvass forms shall be returned in a sealed envelope with the following address and submitted to the Barangay Sub-Project Management Committee (C/BSPMC) at the Barangay hall on or before insert time for deadline, on insert date of deadline. Kalahi-CIDSS Project Barangay Sub-Project Management Committee Barangay ____________, Municipality of ________________ Province of _________________________________________ Immediately after the deadline of submission, the canvass will be opened in public.

A conference for community shopping/community direct contracting shall be held at the Barangay Hall on insert date and time. The date of delivery for the above goods shall be on insert date of delivery. The designated contact person for this procurement is: insert name of contact person, position, address and contact number. (SGD.)_______________________ Chairperson, C/BSPMC Date of Publication/Posting:__________________________

CBPM Form B-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ NOTICE OF REQUEST FOR QUOTATION FOR WORKS (For Posting and Personal Delivery) Date: __________________ The community of (Name of Barangay), through its Bids and Awards Committee (BAC) invites interested contractors to submit quotations for the following works to be procured under community shopping/community direct contracting (select one) receiving assistance from the DSWD KALAHI-CIDSS National Community Driven Development Project (KCNCDDP). Name of Community Project: _____________________________________ Location:______________________________________________________ Project Description: insert type, size, major items, and other important features of the works Items No.

Items of Work/Description of Work

TOTAL Amount in Words:

Qty

Unit

Unit Cost

Total

P

Bona fide contractors licensed by the Philippine Contractors Accreditation Board (PCAB) classified under the type of contract/project where the subject contract falls are eligible to be submit quotations for community shopping/community direct contractingfor works. The contractor should have no negative slippage of more than 15% for any on-going or completed KC-NCDDP projects. Requests for Quotation (RFQ) or canvass forms shall be returned in a sealed envelope with the following address and submitted to the Barangay Sub-Project Management Committee (C/BSPMC) at the Barangay hall on or before insert time for deadline, on insert date of deadline. Kalahi-CIDSS Project Barangay Sub-Project Management Committee Barangay ____________, Municipality of ________________ Province of _________________________________________

Immediately after the deadline of submission, the canvass will be opened in public. A conference for community shopping/community direct contracting shall be held at the Barangay Hall on insert date and time. The schedule for project completion of the works shall be on insert date of completion. The designated contact person for this procurement is: insert name of contact person, position, address and contact number. (SGD.)_______________________ Chairperson, C/BSPMC Date of Publication/Posting:__________________________

(SGD.) ____________________________________ Chairperson, Barangay Community Project Management Committee Date of Publication/Posting:__________________________

CBPM Form B-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ REQUEST FOR QUOTATION/CANVASS FORM FOR GOODS Date: _____________

Quotation No. _______

To: Company Name:___________________________________ Address: _________________________________________ 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 Sub-Project Management Committee (C/BSPMC) at the Barangay Hall on insert date and time of deadline for submission Items No.

Description/Specs of Items

Qty

Unit

Unit Cost

TOTAL Amount in Words: Delivery Period

:

Total

P

__________________________________________________

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 _______________ C/BSPMC Chairperson After having carefully read and accepted your General Conditions, I/We quote you on the item/s at prices noted above. Canvass Submitted by: ______________________

Date:______________________

CBPM Form B-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ REQUEST FOR QUOTATION/CANVASS FORM FOR WORKS Date: _____________

Quotation No. _______

To: Company Name:___________________________________ Address: _________________________________________ Our community has received a grant from the Department of Social Welfare and Development’s KALAHI-CIDSS Project. The Barangay Sub-Project Management Committee (C/BSPMC) 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 enclose the necessary drawings and specifications. Your quotation should be submitted in a sealed envelope and addressed to the undersigned at the following address: The Barangay Sub-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 KCNCDDP 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 C/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: (Insert required documents here) Please attach to your quotation with the requirements provided in the Instructions to Bidders containing the following: I. II. III.

Technical Documents; Legal Documents; and, Financial Documents

Very truly yours, __________________________ BSMPC Chairperson Quotation Submitted by: ____________________ Name of Firm

________________________ Signature over Printed Name Owner/Manager

___________ Date

CBPM Form B-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Contract Reference Number: Name of the Contract: ACKNOWLEDGEMENT RECEIPT This is to acknowledge receipt of the Request for Quotation/Canvass Form served by ______________, ______________, _________________ Procurement Team members of C/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 ________________

CBPM Form B-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

ABSTRACT OF CANVASS/QUOTATION Item No. 1. 2. 3 4 5 6 7

Description/Specifications

(Community Shopping/Direct Contracting for Goods) Qty. Unit Name of Supplier Name of Supplier Unit Price Total Unit Price Total

Name of Supplier Unit Price Total

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 ____________________________ ____________________________ C/BSPMC CHAIRPERSON ____________________________ BAC Chairman

APPROVED BY: _________________________ DATE: ___________________

CBPM Form B-5

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

ABSTRACT OF CANVASS/QUOTATION (Community Shopping/Direct Contracting for Works) 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: __________________________ C/BSPMC CHAIRPERSON Date: __________

CBPM Form B-6

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ PURCHASE ORDER FOR GOODS (Community Shopping/Community Direct Contracting) Name of Supplier:__________________________________ P.O.No.:____________ Address:__________________________________________ Date:_______________ In accordance with the canvass dated ___________, the Barangay Sub-Project Management Committee (C/BSPMC) of 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 insert place of delivery hereon or before insert date of delivery here. 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 byCheck upon acceptance of completed delivery. The C/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, C/BSPMC Date ________ Funds Available: ___________________________________________ Date ________ Treasurer Conforme: ______________________________________________ (Name and signature of Supplier)

Date ________

Inspected/Tested by: ___________________________________________

Date:

Received by:

Date:

___________________________________________

T E R M S A N D C O N D IT IO N S 1. All prices quoted herein are valid, binding and effective at least within forty five (45) calendar days from date of quotation. 2. AWARDEE shall be responsible for the source(s) of his supplies/materials/equipment shall make deliveries in accordance with schedule, quality and specifications of the award and purchase order. Failure by the AWARDEE to comply with the same shall be ground for cancellation of the award and purchase order and for re-awarding the item(s) to the ALTERNATE AWARDEE. 3. AWARDEE shall pick up purchase order(s) issued in his favor within three (3) days after receipt of notice to that effect. Thereafter, if the purchase order(s) remain unclaimed, the said purchase order(s) shall be sent by messengerial service to the AWARDEE at the latter’s expense. To avoid delay in the delivery of requirements, all DEFAULTING AWARDEES shall be precluded from proposing or submitting a substitute sample. 4. Subject to the provisions of the preceding paragraph, where AWARDEE has accepted a purchase order but fails to deliver the required product(s) within the time called for in the same order, he shall be extended a maximum of fifteen (15) calendar days under liquidated damages to make good his delivery. Thereafter if AWARDEE has not completed delivery within the extended period, the subject purchase order shall be cancelled and the award for the undelivered balance withdrawn from that AWARDEE. Refusal by the DEFAULTING AWARDEE to shoulder the price difference shall be ground for his disqualification from future bids of the same or all items, without prejudice to the imposition of other sanctions. 5. All deliveries by suppliers/contractors shall be subject to inspection and acceptance by the (C/BSPMC through insert name of representative). All necessary laboratory tests undertaken by the (C/BSPMC through insert name of representative)on the item(s) shall be for the account of the supplier/contractor. 6. Rejected deliveries shall be construed as non-delivery of product(s)/item(s) so ordered and shall be subject to liquidated damages, subject to the terms and conditions prescribed under paragraph 4 hereof. 7. Supplier shall guarantee his deliveries to be free from defects. Any defective item(s) / product(s), therefore that may be discovered by the (C/BSPMC through insert name of representative)within three (3) months after acceptance of the same, shall be replaced by the supplier with seven (7) calendar days upon receipt of a written notice to that affect. 8. A penalty of one-tenth of one percent (0.001) of the total value of the product(s)/goods/works purchased shall be deducted for each day of delay in the delivery of the product(s)/goods/works ordered. 9. All duties, excise and other taxes and revenue charges, if any, shall be for the supplier’s/contractor’s account. Instructions to the User:

CBPM Form B-7

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CONTRACT AGREEMENT FOR WORKS (for Community Shopping/Community Direct Contracting) This agreement, made this ______ day of ______ 200__ by and between C/BSPMC: insert name of barangay herewith address at insert address of barangay herein represented by insert name of C/BSPMC Chairpersonherein after called “OWNER” as party of the first part and Insert name of Contractor and company with official address at insert address of contractorinsert name of barangay, municipality, province, here in after called “CONTRACTOR” as party of the other part. Whereas the CONTRACTOR is desirous to execute the works described in the requestfor quotation. And the OWNER has accepted the proposal of 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 respectively assigned to them. 2. The following document shall be deemed to form and be read and construed as part of this agreement: a. b. c. d.

Invitation to Quote Abstract of Quotation Minutes of evaluation of quotation Contract Agreement

2. In consideration of the payments to be made by the OWNER to the CONTRACTOR as hereinafter mentioned, the OWNER hereby covenants with the CONTRACTOR 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 . 3. The CONTRACTOR is allowed to collect advance payment equivalent to 15% of the contract after posting bank guarantee of equivalent amount. 4. The CONTRACTOR is entitled to claim partial billing subject to the percentage of accomplishment of the work. 5. The provisions of Section IV. Conditions of Contract for Works under the Community Based Procurement Manual of the Kalahi CIDSS National Community Driven Development Project (NCDDP) shall prevail. In witness whereof the parties thereto have caused this Agreement to be executed this_____ day of______201__

_____________________ Chairperson, C/BSPMC

____________________ Contractor

Funds Available: _______________________ Barangay Treasurer

Date:_________________

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 CONTRACT AGREEMENT consisting of two (2) 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 above- mentioned. _____________________ Notary Public PTR No.______________ Until December 31, 200___ Doc. No. ____________; Page No. ____________; Book No. ____________; Series of ____________.

CBPM Form B-8

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CANVASS FORM FOR LEASE OF LEASE OF EQUIPMENT Date:_______________ To:(Name of Contractor/ Equipment Lessor) Address:_______________________________ May we request you to indicate your quotation for the rental for the equipment indicated below. Please return this form to the canvasser in sealed envelope or submit it to the Barangay Sub-Project Management Committee (C/BSPMC) at the Barangay Hall on insert date and time of deadline for submission 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. ____________________ C/BSPMC Chairperson Date: __________ Canvass Submitted by:

Owner/Manager:

____________________________________________ Signature over Printed NameSignature over Printed Name Date: __________ Date: __________

CBPM Form B-9 KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

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 (C/BSPMC) off Barangay ____________________ requests you to provide services as stated below: Item No. / Package No.

Equipment Needed (Type of Equipment)

Number of No. of Unit Total equipment / (Days / Rate Rental No. of Unit Hours) Per Cost (Day / Hour)

TOTAL AMOUNT OF THIS PURCHASE ORDER TERMS & CONDITIONS: 1. Provide the services at insert project locationon or before insert date of delivery. 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 in 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.

C/BSPMC reserves the right to accept or reject the equipment if found not capable of delivering the required services. Very truly yours, ________________________________ Chairperson, C/BSPMC Date: __________ Funds Available:

__________________________________

Date ________

Treasurer Conforme: Date ________

______________________________________________

(Name and signature of Lessor) Inspected / Tested by: ________________________________ Date: ________________ Received by: ________________________________ Date: __________________

CBPM Form B-10

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

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. -AndThe BARANGAY SUB-PROJECT MANAGEMENT COMMITTEE (C/BSPMC) of Barangay _______________________with its principal office address at Barangay __________________________________, _____________________, represented herein by its C/BSPMC Chairperson, _____________________________(name of Chairperson), hereinafter referred to as the LESSEE, WITNESSETH THAT WHEREAS, (insert name of Lessor, owner or construction firm)owns the following equipment (insert thetype and description of equipment/s to be rented) that is for lease to any interested LESSEE; WHEREAS, the C/BSPMC of Barangayinsert the name of barangay is in need of a (insert thetype and description of equipment/s to be rented) for its (insert the name of the community project); NOW, THEREFORE, for and in consideration of the foregoing, insert name of Lessor owner(Lessor)and C/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 (insert the name of the 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/C/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 Item Qty Unit Description

Equipment Needed

Unit Cost (Per cubic/sq.m.)

Total Rental Cost

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 insert specific date of equipment lease start and shall terminate on insert specific date of equipment lease end . 4.2 The contract duration shall beinsert specific number of calendar days of equipment lease, subject to the conditions in Section 5.0.

SECTION 5.0. TERMS OF PAYMENT 5.1 The LESSOR may request for advance 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 C/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 C/BSPMC. b. Failure of the LESSOR to fulfill its obligations such as non-operation due to breakdown, absence of petroleum, oil and lubricants (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 (insert 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 no longer 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 insert municipality or city nearest to the barangay. 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 __________________, ___________________________________. ____________________________ C/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 above- mentioned. _____________________ Notary Public PTR No.______________ Until December 31, 200___ Doc. No. ____________; Page No. ____________; Book No. ____________; Series of ____________.

ANNEX C: SMALL VALUE PROCUREMENT FORMS FOR OFF-THE-SHELF, SHORT TERM SERVICES AND SMALL WORKS

TABLE OF CONTENTS List of Items to be Procured (C-1) .........................................................................................197 Survey of Available Suppliers/Service Providers/Contractors (C-2).....................................198 Purchase Receipt for Off-the-Shelf/Short Terms Services/Small Works (C-3) ....................198 Job Order for Short Term Services/Small Works (C-4) ........................................................199 Invitation Letter for Resource Speakers/Trainer/Expert (C-5) ..............................................200

CBPM Form C-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

LIST OF ITEMS TO BE PROCURED THROUGH SMALL VALUE PROCUREMENT (Off-the-Shelf, Short Terms Services, Small Works) Item No. 1. 2. 3 4 5 6 7

Items to be Procured

Qty.

Unit

Estimated Cost

TOTAL AMOUNT REQUESTED Prepared by: ____________________________ PT DATE: ___________________ FUNDS RELEASE BY: __________________________ TREASURER DATE: ___________________

APPROVED BY: ____________________________ C/BSPMC DATE: ___________________

CBPM Form C-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

SURVEY OF AVAILABLE SUPPLIERS/SERVICE PROVIDERS/CONTRACTORS Item No.

Items to be Procured

(Off-the-Shelf, Short Terms Services, Small Works) Qty. Unit Est. Purchase Name of Supplier/Service Price Cost Price Provider/Contractor 1. 2. 3. Price Price Price

1. 2. 3 4 5 6 7 TOTAL Please encircle most reasonable price and purchase price CONDUCTED BY: ____________________________ PT DATE: ___________________

CBPM Form C-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

PURCHASE RECEIPT* Received from:________________________________ the amount of: ________________ For the purchase of: ________________________________________________________ Name of Supplier/Contractor/Service Provider:_______________________________ Signature: _______________________________ Date: _______________________________ Inspected by:_______________________________ Signature:_________________________________ Date:________________________________ *To be issued in the absence of OR

CBPM Form C-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ JOB ORDER FOR SHORT TERM SERVICES/SMALL WORKS (Catering, Training, Transportation, Trucking, Repair Services,Rental of Tools and Equipment, Small Worksetc.) Name of Service Provider:__________________________________ Address:__________________________________________ Date:_______________ The Barangay Sub-Project Management Committee (C/BSPMC) of Barangay ______________________________ requests you to supply/deliver/provide the short term service described below detailed below: Item No.

Description of Short Term Service

Duration Schedule Unit Price of Service Of Delivery

Total Amount

TOTAL AMOUNT OF THIS JOB ORDER: The C/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, C/BSPMC Date: ________ Funds Available: ___________________________________________ Barangay Treasurer Date: ________ Conforme: ______________________________________________ (Name and signature of Service Provider)

Inspected/Validated (MIT & CF) by: Date:______________

Date ________

CBPM Form C- 5

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ INVITATION LETTER FOR RESOURCE SPEAKERS/TRAINERS/EXPERT (Short Term Service) Name of Resource Person Address Date: Dear Sir/Madam: In connection with the Seminar/Workshop/Training on:_____________________________, we would like to engage your services as Resource Speaker/Trainer on the Subject Matter/Topic entitled :_______________________________________________________. Your scope of services shall consist of the following:______________________________ ________________________________________________________________________ The engagement shall cover _______ number of lecture/consultation hours for a period of _____ days from (date of start)to (date of finish). We shall be paying you the amount of (specify the contract amount)payable upon complete delivery of service as certified by the MIT and CF. Please furnish us a complete copy of all materials used in your Seminar/Workshop/Training and your curriculum vitae. Thank you for your cooperation and support to our sub-project. Very truly yours, ________________________________ C/BSPMC Chairperson Date: CONFORME: _____________________________ Resource Speaker/Trainer/Expert Date:___________________________ I hereby certify that _________________________ rendered the service on ___________ _____________________ MIT and Community Facilitator

Date:_____________________

Noted: ____________________________________ Barangay Treasurer

Approved for Payment: _______________________________ C/BSPMC Chairperson

ANNEX D: STANDARD BIDDING DOCUMENTS FOR GOODS AND WORKS (For Community Bidding) Section I. Invitation to Bid Section II. Instruction to Bidders Section III. Bid Data Sheet Section IV. Conditions of Contract Section V. Bidding Forms

STANDARD BIDDING DOCUMENTS FOR GOODS AND WORKS TABLE OF CONTENTS

Section I. Invitation to Bid ................................................................................................ 205 Section II. Instruction to Bidders for Goods Contracts..................................................... 211 Section II. Instruction to Bidders for Works Contracts ..................................................... 221 Section III. Bid Data Sheet for Goods Contracts ............................................................. 233 Section III. Bid Data Sheet for Works Contracts.............................................................. 235 Section IV.Conditions of Contracts for Goods ................................................................. 239 Section IV. Conditions of Contract for Works .................................................................. 249 Section V. Standard Bidding Forms for Goods and Works ............................................ 263

Section I. Invitation to Bid

CBPM Form D 1-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ INVITATION TO BID FOR GOODS CONTRACT (For Advertisement, Posting and Personal Delivery) Date: __________________ The community of (Name of Barangay), through its Bids and Awards Committee (BAC) invites suppliers/distributors/contractors to apply for eligibility and to bid for the following project that received assistance from the DSWD KALAHI-CIDSS National Community Driven Development Project (KC-NCDDP). Name of Goods/Service : __________________________________________________ Location : __________________________________________________ Brief Description : __________________________________________________ Cost Estimate : __________________________________________________ Contract Duration : __________________________________________________ Delivery Period : __________________________________________________ Interested bidders are requested to submit their offered price for the supply of the items listed below: Items No.

Description/Specs of Items

TOTAL Amount in Words:

Qty

Unit

Unit Cost

Total

P

Prospective bidders should have experience in undertaking a similar project within the last [state number of years, minimum 2] with an amount of at least 50% of the proposed project for bidding. The Eligibility Check/Screening as well as the Preliminary Examination of Bids shall use non-discretionary “pass/fail” criteria. Post-qualification of the lowest calculated bid shall be conducted. 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 Sub-Project Management Committee (C/BSPMC) Office starting (state date for availability of bidding documents) 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 in the form of cash, cashier’s check, manager’s check, bank draft, or bank guarantee equivalent to two percent (2%) of the bid price or a Bid Securing declaration;  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, C/BSPMC Date of Publication/Posting:__________________________

CBPM Form D 1-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ INVITATION TO BID FOR WORKS CONTRACT (For Advertisement,Posting and Personal Delivery) Date: __________________ The community of (Name of Barangay), through its Bids and Awards Committee (BAC) invites interested contractors to apply for eligibility and to bid for the following project that received assistance from the DSWD KALAHI-CIDSS National Community Driven Development Project (KC-NCDDP). Name of Community Project: _____________________________________ Location:______________________________________________________ Project Description: type, size, major items, and other important features of the works Interested bidders are requested to submit their offered price for the contract indicated below: Items Items of Work/Description of Work Qty Unit Unit Total No. Cost

TOTAL Amount in Words:

P

Prospective bidders should have experience in undertaking a similar project within the last [state number of years, minimum 2] with an amount of at least 50% of the proposed project for bidding. The Eligibility Check/Screening as well as the Preliminary Examination of Bids shall use non-discretionary “pass/fail” criteria. Post-qualification of the lowest calculated bid shall be conducted. 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 Sub-Project Management Committee (C/BSPMC) Officestarting(state date for availability of bidding documents)

A pre-bid conference will be held at the Barangay Hall on (date) at (time). . The bid shall include the following documents:    

Valid license issue by the Philippine Contractors Accreditation Board (PCAB) Statement of all on-going and completed government and private contracts Statement on the availability of key personnel and equipment Bid security in the form of Cash, cashier’s check, manager’s check, bank draft, or bank guarantee equivalent to two percent (2%) of the bid price or a Bid Securing declaration;  Authority of the signatory  Construction Schedule and S Curve  Manpower Schedule and organizational chart  Construction Methods  List of key personnel for the project  List of key equipment for the project  Bill of Quantities in the Bid Form  Other document required in the instruction to bidders (if any) 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: KC-NCDDP Project Barangay Community Project Management Committee Barangay Hall 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 selection of the contractor. The community will not reimburse any expenses related to the preparation of bids. (SGD.) ____________________________________ Chairperson, Barangay Community Project Management Committee Date of Publication/Posting:__________________________

SECTION II – INSTRUCTIONS TO BIDDERS (For Goods Contracts) TABLE OF CONTENTS 1. Scope of Work .................................................................................................................213 2.Eligible Bidders ...................................................................................................................213 3. Qualification of the Bidder................................................................................................213 4.Site Visit and Inspection ....................................................................................................214 5.Contents of Bidding Documents for Distribution to Interested Bidders .............................214 6. Pre-Bid Conference .........................................................................................................214 7. Documents Comprising the Bid .......................................................................................214 8.Bid Price..............................................................................................................................215 9. Bid Security ......................................................................................................................215 10.Bid Validity .........................................................................................................................216 11. Preparation and Submission of Bids ...............................................................................217 12. Modification and Withdrawal of Bids ...............................................................................217 13. Process to be Confidential ...............................................................................................217 14. Opening of Bids ...............................................................................................................218 15. Evaluation and Comparison of Bids ................................................................................218 16. Postqualification ...............................................................................................................219 17. Notification of Award and Signing of Contract ................................................................219 18. Performance Security .....................................................................................................220 19. Notice to Proceed ............................................................................................................220

SECTION II – INSTRUCTIONS TO BIDDERS (For Goods Contracts) 1. Scope of Work: The Barangay Sub-Project Management Committee of (name of Barangay), as the Owner named in the BDS, invites bids for the completion of the goods indicated in the Invitation To Bid in accordance with the Conditions of Contract (CC). The successful supplier will be expected to deliver the goods specified in the BDS by the Required Completion Date specified in the BDS. 2. Eligible Bidders: The following manufacturers, suppliers, distributors, and/or service providers are allowed to participate in the Community Bidding for goods and services: duly registered sole proprietors, partnerships, corporations or cooperatives. Single proprietors shall submit the Department of Trade and Industry (DTI) business name registration, partnerships and corporations the Security and Exchange Commission (SEC) registration certificate; or the Cooperatives Development Authority (CDA) registration for cooperatives. All bidders shall also submit a valid and current Mayor’s permit/municipal license from the bidder’s principalplaceof business. Local Government Units or other agencies of government are disqualified from participating in the bidding. 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. Suppliers blacklisted by the Kalaheo-CIDSS NCDDP 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 C/BSPMC) and as specified in the BDS: i.

Experience in completing a single contract that is similar in nature to the goods/services whose value must at least be fifty percent (50%) of the estimated contract cost;

ii. Statement of all ongoing and completed NCDDP contracts within the period specified in the Invitation to Bid (IB), including contracts awarded but not yet started, if any. iii. Audited Financial Statements for the preceding calendar year; iv. Computation of the Net Financial Contracting Capacity (NFCC) that is at least equal to the project cost estimate, calculated as follows: NFCC = [(Current assets minus current liabilities) (K)] minus the value of all outstanding projects under ongoing contracts, including awarded contracts yetto be started. Where: K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years The NFCCestablishes the bidder’s liquidity, its capacity to absorb the additional obligations in connection with the contract to be bid and to finance its implementation/completion. 4. Site Visit and Inspection: The Suppliers required to attend the site visit or inspection of the project site organized by the Bids and Awards Committee (BAC) and to secure a Certificate of Site Inspection (CBPM Form B 5-1) issued by the C/BSPMC Chairperson which shall be presented as a requirement in the submission of bids as specified in the BDS. 5. Contents of Bidding Documents for Distribution to Interested Bidders: The set of bidding documents comprises the documents listed below: Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8:

Invitation to Bid (IB) Instructions to Bidders (ITB) Conditions of Contract (General and Special) Form of Bid Security Drawings (if applicable) Technical Specifications Form of Contract Agreement Form of Performance Security

6. Pre-Bid Conference: The Bids and Awards Committee (BAC may call for a pre-bid conference at least seven (7) days before the deadline for the submission of bids to discuss the different aspects of the procurement at hand, details of the contract and to clarify issues that bidders may raise. Attendance to the pre-bid conference is not compulsory and should not be a ground for the disqualification of a bidder. The BAC may still entertain requests for clarification(s) on any part of the bidding documents or for an interpretation by prospective bidders provided the following requirements are complied with: i. Requests for clarification should be in writing. ii. Requests for clarification should be submitted to the BAC at least two (2) calendar days after the pre-bid conference.

7. Documents Comprising the Bid: The Bid to be submitted by the Bidder shall comprise the following documents (as applicable): A. ELIGIBILITY DOCUMENTS i. ii. iii. iv. v. vi. vii.

DTI business name certificate of registration for sole proprietorships; SEC registration certificate for partnerships and corporations; or the Cooperatives Development Authority (CDA)registration for cooperatives. Valid and current Mayor’s permit/municipal license from the bidders principal place of business. Experience in completing contracts similar in nature to the goods/services to be procured (CBPM Form 5-2); Statement of all ongoing and completed government and private contracts within the period specified in the IB, including contracts awarded but not yet started, (CBPM Form 5-3). Audited Financial Statements for the preceding calendar year; Computation of the Net Financial Contracting Capacity (NFCC) (CBPM Form B 5-4). Certificate of Site Inspection (CBPM Form B 5-1).

B. TECHNICAL DOCUMENTS i. Bid Security as to form, amount and validity period(CBPM Form B5-5); ii. Authority of the signatory ( Board Resolution if the bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is partnership, or a Special Power of Attorney (SPA) issued by the General Manager or Proprietor if the bidder is a sole proprietor; iii. Delivery schedule; iv. Manpower requirements, if applicable; v. After-sales service/parts, if applicable; vi. Technical specifications; vii. Certificate from the bidder under oath of its compliance with existing labor laws and standards, in the case of procurement of services(CBPM Form B 56). C. FINANCIAL DOCUMENTS i. Financial proposal sheet; ii. Recurring and maintenance costs, if applicable; 8. Bid Price: The Bidder shall complete the appropriate price schedule in the financial proposal sheet stating the unit prices, total price per item and the total amount of the goods/services to be supplied under this Project.Bids not providing all of the required items including, where applicable, Bill of Quantities (BOQ), shall be considered non-responsive and, thus, automatically disqualified. Where a required item is provided, but no price is indicated, the same shall be considered as non-responsive, but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Government. Prices quoted by the bidder shall be fixed for the duration of the contract and not subject to variation or price escalation on any account. A bid submitted with an adjustable price

quotation shall be treated as non-responsive and shall be rejected. In cases where the cost of the awarded contract is affected by any applicable new laws, ordinances, regulations, or other acts of the government, promulgated after the date of bid opening, a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis. 9. Bid Security: The bidder shall furnish a bid security with every bid. It must be operative on the date of bid opening. Failure to enclose the required bid security in the form and amount prescribed by the community shall automatically disqualify the bid concerned. The bid security shall be in any of the following forms, with the corresponding required amount: FORM OF BID SECURITY a. Cash, certified check, cashier’s check/manager’s check, bank draft; b. Bank guarantee confirmed by a reputable local bank c. Bid Securing Declaration

MINIMUM AMOUNT 2% of Bid 2% of Bid

Bid Securing Declarations may be used for contracts costing to below 2M procured through community bidding. Bid Securities in the form of cash or (manager’s check or cashier’s check) must be deposited in the C/BSPMC Account. All checks and bank guarantees shall be issued in favor of the C/BSPMC of the community/barangay. Personal checks are not acceptable as bid security. Bank guarantee as bid security shall be submitted as part of the bidding documents. A Bid Securing Declaration is an undertaking by a prospective bidder, committing to pay the corresponding fine and be suspended for a period of time from being qualified to participate in any government procurement activity in the event it violates any of the following conditions: i.

Withdraws its bid during the period of bid validity required in the bidding documents; or ii. Fails or refuses to accept the award and enter into contract or perform any and all acts necessary to the execution of the contract, in accordance with the bidding documents, after having been duly notified of the acceptance of its Bid during the period of bid validity. The Bid Securing Declaration shall comply with the standard format found in CBPM Form B5-6.The following sanctions shall be applied in case of commission of the abovementioned acts: i.

Penalty of automatic blacklisting for two (2) years in all KCNCDDPprocurement activities; and ii. Payment of a fine equivalent to the difference between the evaluated bid price and the project cost estimate. 10. Bid Validity: The bid validity period should not be more sixty (60) calendar days from the date of the opening of bids. The BAC may extend the period of validity of the bids and the bid securities

by requesting the same in writing from all those who submitted bids before the expiry date of the same. Bidders shall have the right to refuse the grant of such extension without forfeiting their bid securities. The bidders who refuse to grant the BAC’s request for an extension of the period of validity of their bid and bid security will have the same returned to them. However, they are deemed to have waived their right to further participate in the bidding. No bid securities shall be returned to bidders after the opening of bids and before contract signing, except under any of the following circumstances: i.

When the bidders failed to comply with any of the requirements to be submitted in the bid proposal, or ii. When the bidders were post-disqualified and submitted a written waiver of its right to file a motion for reconsideration and/or protest. Bid securities shall be returned only after the bidder with the LCRB has signed the contract and furnished the performance security, but in no case later than the expiration of the bid security validity period indicated in the ITB. A bidder’s bid security may be forfeited when: i. The bidder withdraws its bid beyond the deadline; ii. The bidder does not accept correction of arithmetical errors; iii. The bidder being considered for award does not accept the award or does not sign the contract within the period prescribed in the bidding documents; 11. Preparation and Submission of Bids: The bidder shall prepare one original and one duplicate copy of the documents comprising the Bid and shall sign all the pages of the original and duplicate copies. The bidder shall initial all the pages of the Bid where entries or amendments or corrections have been made. The eligibility, technical and financial proposals must be properly marked and must be placed in a single sealed envelope addressed to the C/BSPMC and shall be submitted at the specified address on or before the deadline stated in the Invitation to Bid. On the upper left-hand corner of the envelope, the bidder shall indicate his/her name and full address. If the envelope is not sealed and marked as above, the C/BSPMC will assume no responsibility for the misplacement or premature opening of the Bid. The Procurement Team (PT) shall receive the sealed bids on or before the prescribed date. The sealed bids and logbook will be placed in a bid box at C/BSPMC office inside a secure filing cabinet. Any eligibility, technical or financial bid envelopes submitted after the deadline for submission and receipt of bids prescribed in the IB shall be declared “Late” and shall not be accepted by the Bids and Awards Committee (BAC) and shall be returned to the Bidder unopened. 12. Modification and Withdrawal of Bids: A bidder may modify its bid, provided that this is done before the deadline for the submission and receipt of bids. If such bidder modifies its bid, it shall not be allowed to retrieve its original bid, but shall only be allowed to send another bid equally sealed,properly identified, linked or related to its original bid and marked as a “MODIFICATION” of the original, and

stamped “RECEIVED” by the BAC. Bid modifications received after the applicable deadline will not be considered and must be returned to the bidder unopened. Any discount should form part of the bid submission in the financial proposal. A bidder may, through a letter, withdraw its bid before the deadline for the receipt of bids. A bidder may also express its intention not to participate in the bidding through a letter which should reach and be stamped “RECEIVED” by the BAC before the deadline for the receipt of bids. A bidder that withdraws its bid shall not be permitted to submit another bid, directly or indirectly, for the same contract. A bidder that withdraws its bid prior to the deadline for submission of bids, for justifiable cause, does not forfeit its bid security. 13. Process to be Confidential: Information relating to the examination, clarification, evaluation and comparison of quotations and recommendation for contract award shall not be disclosed until the successful bidder has been issued the Notice of Award (NOA). Any effort by a bidder to influence the BAC, PT or C/BSPMC will result in the rejection of his/her bid. 14. Opening of Bids: The BAC will open the Bids in the presence of the bidders’ representatives who attend, at the time, date, and in the place specified in the Invitation to Bid. The BAC shall read in public the contentsof the Eligibility documents, and shall examine each prospective bidder’seligibility requirements or statements. It shall determine the presence or absence of the required eligibility requirements against a checklist (CBPM Form No. C-9)using non-discretionary “pass/fail” criteria. The BAC shall declare prospective bidders as either “eligible” or “ineligible”,based on itsfindingsand inform them accordingly. A Notice of Eligibility/Non-Eligibility (CBPM Form No. C 11,12)shall be duly accomplished and signed by the members of the BAC. In case prospective bidderis declared ineligible, the Notice of Ineligibility shallstate the reason forsuch ineligibility. The Notice will bereceived officially by the bidder’sauthorizedrepresentative. The BAC may return the Eligibility, Technicaland Financial Bid envelope of an “ineligible” bidder if it does not intend to file arequestforreconsiderationorexpressly waives its right to file a motion for reconsideration. The BAC shall inquire from ineligible bidders who are present during the Eligibility Check whether or not they intend to file a motion for reconsideration. Those who are present at the time of opening of eligibility requirements, will be notified verbally while those who are not present will be informed in writing. If they signify their intention to do so upon verbal notification or written notice, the BAC shall keep the envelope containing the eligibility requirements and re-seal the same in the presence of all the participants. These shall be deposited in the Bid Box or any other secured place or location, together with the Technical and Financial bid, ensuring that the latter documents remain sealed. The BAC shall have three days to resolve the motion for reconsideration. The BAC shall proceed with the opening of the technical proposal of the eligible bidders , to determine each bidder’s compliance with the documents that are required to be submitted for the technical component of the bid. TheBAC shall check the submitted technical documents of each bidder against a checklist (CBPM Form No. C-9)of required technical documents to ascertain if they are all present, using non-discretionary “pass/fail” criteria. If a bidder submits the required document and meets the eligibility criteria, it shall be rated “passed” for that particular requirement. Otherwise, it shall be rated as“failed”.In case one or

more of the above-required documents in the Technical Proposal is missing, incomplete or patently insufficient, the bid shall be declared as “failed” and immediately returned to the bidder concerned, together with the Financial Proposal. A bidder determined as “failed” has three (3) calendar days upon receipt of written notice or, if present at the time of bid opening, upon verbal notification, within which to file a request for a reconsideration with the BAC. 15. Evaluation and Comparison of Bids: Immediately after determining compliance with the technical requirements, the BAC shall open the Financial Proposal of each remaining technically complying bidder whose submitted technical requirements were rated “passed” on the same day. The BAC shall determine whether one or more of the requirements of the Financial Proposal are missing, incomplete or patently insufficient. If the Financial Bid is complete, the BAC shall rate it “passed” andshall proceed with the evaluation of the Bid. Only bids that are determined tocontain all the bid requirements for both Technical and Financial components shall be rated “passed” and shall be considered for evaluation and comparison. After the preliminary examination of bids, the BAC shall immediately conduct a detailed evaluation of all bids rated “passed,” which shall include a consideration of the following: i. ii. iii. iv.

The bid must be complete. Computational errors will be corrected. All bids shall be evaluated on equal footing. Bid prices in words, unit prices, and unit cost in the bill of quantities shall prevail in case of discrepancy.

Based on the detailed evaluation of bids, those that comply with the above-mentioned requirements shall be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors, discounts and other modifications, to identify the Lowest Calculated Bid (LCB). 16. Postqualification: The BAC with the assistance of the TWG verifies and validates the LCB compliance with the legal, financial and technical requirements of the bid. The legal review verifies that all required licenses, permits and other documents submitted are in order. The technical requirements are verified to prove compliance of the goods and services offered with the requirements of the contract and bidding documents. The financial requirements are validated to ensure that the bidder can sustain the operating cash flow of the transaction. If the LCB passes the post-qualification, the BAC declares it as the Lowest Calculated and Responsive Bid (LCRB) and issues a Notice of Award (NOA). If the bidder with the LCB fails to pass post qualification, the BAC shall immediately notify the said bidder in writing of its postdisqualificationand the grounds for it. Thepostdisqualified bidder shall have three (3) calendar days from receipt of the said notification to request from the BAC, if it so wishes, are consideration of its decision. The BAC shall evaluate the request for reconsideration, if any, using the same non-discretionary criteria, and shall issue its final determination of the said request within seven (7) calendar days from receipt thereof. Immediately after the BAC has notified the first bidder of its postdisqualification,the BAC shall initiate and complete the same post-qualificationprocess on the bidder with the second LCB. If the second bidder passes the post-qualification, and provided that the request for reconsideration of the first bidder has been denied, the BAC shall declare the second bidder

as the bidder with the LCRB. The C/BSPMC shall then award the contract to it. If the second bidder, however, fails the post-qualification, the procedure for post-qualification shall be repeated for the bidder with the next LCB, and soon until the LCRB, is determined for award. Info bidder passes post-qualification, the BAC shall issue a Resolution declaring a failure of bidding. 17. Notification of Award and Signing of Contract: The C/BSPMC shall notify the LCRB of the award in writing prior to the expiration of the validity period of the Bid. The Notice of Award (NOA), together with the contract will state the amount that the C/BSPMC will pay the winning bidder in consideration of the delivery and installation of the goods prescribed under the Contract. The BAC shall schedule the signing of the contract with the winning bidder who will then post the required performance security. 18. Performance Security: The performance security shall be posted in favor of the community, and will be forfeited in its favor in the event that the winning bidder fails to perform any of its obligations under the contract. The winning bidder should furnish the community with the performance security in accordance with the Conditions of the Contract, within a maximum period of ten (10) calendar days from the receipt of the NOA, and in all cases upon the signing of the contract. It must at least be co-terminus with the period of completion of the contract. The performance security shall be in any of the following forms, with the corresponding required amount: FORM OF PERFORMANCE SECURITY a. Cash, certified check, cashier’s check/manager’s check, bank draft; or b. Bank guarantee confirmed by a reputable local bank

MINIMUM AMOUNT 5% of Contract Price 10% of Contract Price

All checks and bank guarantees for performance security shall be issued in favor of the Chairperson of the C/BSPMC and shall be deposited in the C/BSPMC Account.The winning bidder must choose whichamong the preferred forms it shall submit. There shall be a corresponding change in the amount of the Performance Securityposted by the winning bidder in the following instances: (a) issuance of a Variation/Change Order; (b) partial delivery/performance. The C/BSPMC may release the performance security to the winning bidder after the issuance of the Certificate of Acceptance ofthe goods, provided that there are no claims filed against the contract awardee. However, it must ensure that the performance security is replacedby a warranty covering the defects liability period. 19. Notice to Proceed: Within three (3) calendar days from the signing of the contract and the posting of performance security, the C/BSPMC shall issue its Notice to Proceed (NTP) to the winning bidder. The contract effectivity date shall be provided in the Notice to Proceed, which date shall not be later than seven (7) calendar days from the issuance of the Notice to Proceed.

SECTION II. INSTRUCTION TO BIDDERS (For Works Contracts) TABLE OF CONTENTS 1. Scope of Work ...............................................................................................................223 2.Eligible Bidders ..................................................................................................................223 3. Qualification of the Bidder..............................................................................................223 4. Site Visit and Inspection ...............................................................................................224 5.Contents of Bidding Documents for Distribution to Interested Bidders .............................224 6. Pre-Bid Conference ..........................................................................................................224 7. Documents Comprising the Bid .....................................................................................224 8.Bid Price..............................................................................................................................225 9. Bid Security ....................................................................................................................226 10.Bid Validity .........................................................................................................................227 11. Preparation and Submission of Bids ...............................................................................227 12. Modification and Withdrawal of Bids ...............................................................................228 13. Process to be Confidential .............................................................................................228 14. Opening of Bids .............................................................................................................228 15. Evaluation and Comparison of Bids ................................................................................229 16. Postqualification ...............................................................................................................229 17. Notification of Award and Signing of Contract ................................................................230 18. Performance Security .....................................................................................................230 19. Notice to Proceed ..........................................................................................................231

SECTION II. INSTRUCTION TO BIDDERS (For Works Contracts) 1. Scope of Work: The Barangay Sub-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 BDS. 2. Eligible Bidders: The following contractors with legal personality and capacity to undertake the contract are allowed to participate in the bidding: duly licensed sole proprietors, partnerships, corporations or cooperatives duly registered with the Cooperatives Development Authority (CDA). All bidders shall submit a valid license issued by the Philippine Contractors Accreditation Board (PCAB). Local Government Units or other agencies of government are disqualified from participating in the bidding. 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. Contractors blacklisted by the Kalahi-CIDSS NCDDP and 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 C/BSPMC): i.

Experience in completing a single contract that is similar in nature to the works to be bid whose value must at least be fifty percent (50%) of the estimated contract cost; ii. Statement of all ongoing and completed NCDDP contracts within the period specified in the Invitation to Bid (IB), including contracts awarded but not yet started, if any. iii. Audited Financial Statements for the preceding calendar year; iv. Computation of the Net Financial Contracting Capacity (NFCC) that is at least equal to the project cost estimate, calculated as follows:

NFCC = [(Current assets minus current liabilities) (K)] minus the value of all outstanding projects under ongoing contracts, including awarded contracts yet to be started. Where: K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years The NFCCestablishes the bidder’s liquidity, its capacity to absorb the additional obligations in connection with the contract to be bid and to finance its implementation/completion. 4. Site Visit and Inspection: The bidders required to attend the site visit or inspection of the project site organized by the Bids and Awards Committee (BAC) and to secure a Certificate of Site Inspection (CBPM Form B 5-1) issued by the C/BSPMC Chairperson which shall be presented as a requirement in the submission of bids. Prospective bidders who are not able to attend the scheduled site inspection may conduct their own inspection provided this is done before the submission of proposals. 5. Contents of Bidding Documents for Distribution to Interested Bidders: The set of bidding documents comprises the documents listed below: Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8:

Invitation to Bid (IB) Instructions to Bidders (ITB) Conditions of Contract (General and Special) Form of Contract Agreement (draft) Engineering Drawings Technical Specifications Form of Bid Form of Bid and Performance Securities

6. Pre-Bid Conference: The Bids and Awards Committee (BAC) may call for a pre-bid conference at least seven (7) days before the deadline for the submission of bids to discuss the different aspects of the procurement at hand, details of the contract and to clarify issues that bidders may raise. Attendance to the pre-bid conference is not compulsory and should not be a ground for the disqualification of a bidder. The BAC may still entertain requests for clarification(s) on any part of the bidding documents or for an interpretation by prospective bidders provided the following requirements are complied with: i. Requests for clarification should be in writing. ii. Requests for clarification should be submitted to the BAC at least two (2) calendar days after the pre-bid conference. 7. Documents Comprising the Bid:

The Bid to be submitted by the bidder shall comprise the following documents (as applicable): A. ELIGIBILITY DOCUMENTS i.

Valid license issued by the Philippine Contractors Accreditation Board (PCAB). ii. Experience in completing contracts similar in nature to the works to be procured (CBPM Form No. B 5-2); iii. Statement of all ongoing and completed government and private contracts within the period specified in the IB, including contracts awarded but not yet started, (CBPM Form No. 5-3); iv. Statement on the availability of key personnel that may be used for construction contracts; v. Statement on the availability of equipment may be used for construction contracts; vi. Audited Financial Statements for the preceding calendar year; vii. Computation of the Net Financial Contracting Capacity (NFCC) (CBPM Form No. B 5-4);. viii. Certificate of Site Inspection (CBPM Form B 5-1). B. TECHNICAL DOCUMENTS i. Bid Security as to form, amount and validity period(CBPM Form B 5-5); ii. Authority of the signatory ( Board Resolution if the bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is aPartnership, or a Special Power of Attorney (SPA) issued by the General Manager or Proprietor if the bidder is a sole proprietor; iii. Construction schedule(bar chart or PERT/CPM) and S-curve; iv. Manpower schedule (weekly or monthly scheduling of skilled and unskilled workers, including the Project Manager, Project Engineers, Materials Engineers, and Foremen); iv. Construction methods (narrative description of how the contractor will undertake the works under the contract); v. Organizational chart for the contract to be bid, vi. List of contractor’s key personnel (viz. the Project Manager, Project Engineers, and Foremen), to be assigned to the contract to be bid, their complete qualification and experience data, and the key personnel’s signed written commitment to work on the contract once awarded to the contractor (CBPM Form B 5-9); vii. List of contractor’s equipment units pledged for the contract to be bid, which are owned (supported by proof/s of ownership), leased, and/or under purchase agreements (with corresponding engine numbers, chassis numbers and/or serial numbers), supported by certification of availability of equipment from the equipment lessor/vendor for the duration of the contract(CBPM Form B 5-8); viii. Equipment utilization schedule (weekly or monthly scheduling of the minimum equipment required for the contract); ix. Construction safety and health program of the contractor; x. Certificate from the bidder under oath of its compliance with existing labor laws and standards(CBPM Form No. B 5-6). C. FINANCIAL DOCUMENTS i.

Bid prices in the Bill of Quantities in the prescribed Bid Form;

ii. Detailed estimates including a summary sheet indicating the unit prices of construction materials, labor rates and equipment rentals used, indicating also thedirect and indirect costs, in coming up with the bid; and iii. Cash flow by the quarter and payments schedule. 8. Bid Price: The bidder shall complete the appropriate price schedule in the financial proposal sheet for all items of work described in the drawings and specifications listed in the Bill of Quantities.The Contract shall be for the whole works as described in the Invitation to Bid and shall be based on the unit and total price of work items indicated in the Bill of Quantities. Bids not providing all of the required items shall be considered non-responsive and, thus, automatically disqualified. Where a required item is provided, but no price is indicated, the same shall be considered as non-responsive, but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Government. All fees and taxes payable by the bidder under the Contract shall be included in the rates, prices, and total price bid submitted. Prices quoted by the bidder shall be fixed for the duration of the contract and not subject to variation or price escalation on any account. A bid submitted with an adjustable price quotation shall be treated as non-responsive and shall be rejected. In cases where the cost of the awarded contract is affected by any applicable new laws, ordinances, regulations, or other acts of the government, promulgated after the date of bid opening, a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis. 9. Bid Security: The bidder shall furnish a bid security with every bid. It must be operative on the date of bid opening. Failure to enclose the required bid security in the form and amount prescribed by the community shall automatically disqualify the bid concerned. The bid security shall be in any of the following forms, with the corresponding required amount: FORM OF BID SECURITY a.Cash, certified check, cashier’s check/manager’s check, bank draft; or b. Bank guarantee confirmed by a reputable local bank; or c. Bid Securing Declaration

MINIMUM AMOUNT 2% of Bid 2 % of Bid

Bid Securing Declarations may be used for contracts costing below 2M procured through community bidding. Bid Securities in the form of cash or (manager’s check or cashier’s check) must be deposited in the C/BSPMC Account. All checks and bank guarantees shall be issued in favor of the C/BSPMC of the community/barangay. Personal checks are not acceptable as bid security. Bank guarantee as bid security shall be submitted as part of the bidding documents. A Bid Securing Declaration is an undertaking by a prospective bidder, committing to pay the corresponding fine and be suspended for a period of time from being qualified to participate in any government procurement activity in the event it violates any of the following conditions: i.

Withdraws its bid during the period of bid validity required in the bidding

documents; or ii. Fails or refuses to accept the award and enter into contract or perform any and all acts necessary to the execution of the contract, in accordance with the bidding documents, after having been duly notified of the acceptance of its Bid during the period of bid validity. The Bid Securing Declaration shall comply with the standard format found in CBPM Form B5-6.The following sanctions shall be applied in case of commission of the abovementioned acts: i.

Penalty of automatic blacklisting for two (2) years in all KCNCDDPprocurement activities; and ii. Payment of a fine equivalent to the difference between the evaluated bid price and the project cost estimate. 10. Bid Validity: The bid validity period should not be more than sixty (60) calendar days from the date of the opening of bids. The BAC may extend the period of validity of the bids and the bid securities by requesting the same in writing from all those who submitted bids before the expiry date of the same. Bidders shall have the right to refuse the grant of such extension without forfeiting their bid securities. The bidders who refuse to grant the BAC’s request for an extension of the period of validity of their bid and bid security will have the same returned to them. However, they are deemed to have waived their right to further participate in the bidding. No bid securities shall be returned to bidders after the opening of bids and before contract signing, except under any of the following circumstances: i.

When the bidders failed to comply with any of the requirements to be submitted in the bid proposal, or ii. When the bidders were post-disqualified and submitted a written waiver of its right to file a motion for reconsideration and/or protest. Bid securities shall be returned only after the bidder with the LCRB has signed the contract and furnished the performance security, but in no case later than the expiration of the bid security validity period indicated in the ITB. A bidder’s bid security may be forfeited when: i. The bidder withdraws its bid beyond the deadline; ii. The bidder does not accept correction of arithmetical errors; iii. The bidder being considered for award does not accept the award or does not sign the contract within the period prescribed in the bidding documents; 11. Preparation and Submission of Bids: The bidder shall prepare one original and one duplicate copy of the documents comprising the Bid and shall sign all the pages of the original and duplicate copies. The bidder shall initial all the pages of the Bid where entries, amendments or corrections have been made. The eligibility, technical and financial proposals must be properly marked and must be placed in a single sealed envelope addressed to the C/BSPMC and shall be submitted at the specified address on or before the deadline stated in the Invitation to Bid.

On the upper left-hand corner of the envelope, the bidder shall indicate his/her name and full address. If the envelope is not sealed and marked as above, the C/BSPMC will assume no responsibility for the misplacement or premature opening of the Bid. The Procurement Team (PT) shall receive the sealed bids on or before the prescribed date. The sealed bids and logbook will be placed in a bid box at C/BSPMC office inside a secure filing cabinet. Any eligibility, technical or financial bid envelopes submitted after the deadline for submission and receipt of bids prescribed in the IB shall be declared “Late” and shall not be accepted by the Bids and Awards Committee (BAC) and shall be returned to the Bidder unopened. 12. Modification and Withdrawal of Bids: A bidder may modify his/her bid, provided that this is done before the deadline for the submission and receipt of bids. If such bidder modifies its bid, it shall not be allowed to retrieve its original bid, but shall only be allowed to send another bid equally sealed, properly identified, linked or related to its original bid and marked as a “MODIFICATION” of the original, and stamped “RECEIVED” by the BAC. Bid modifications received after the applicable deadline will not be considered and must be returned to the bidder unopened. Any discount should form part of the bid submission in the financial proposal. A bidder may, through a letter, withdraw its bid before the deadline for the receipt of bids. A bidder may also express its intention not to participate in the bidding through a letter which should reach and be stamped “RECEIVED” by the BAC before the deadline for the receipt of bids. A bidder that withdraws its bid shall not be permitted to submit another bid, directly or indirectly, for the same contract. A bidder that withdraws its bid prior to the deadline for submission of bids, for justifiable cause, does not forfeit its bid security. 13. Process to be Confidential: Information relating to the examination, clarification, evaluation and comparison of quotations and recommendation for contract award shall not be disclosed until the successful bidder has been issued the Notice of Award (NOA). Any effort by a bidder to influence the BAC, PT or C/BSPMC will result in the rejection of his/her bid. 14. Opening of Bids: The BAC will open the Bids in the presence of the bidders’ representatives who attend, at the time, date, and in the place specified in the Invitation to Bid. The BAC shall read in public the contents of the Eligibility documents, and shall examine each prospective bidder’s eligibility requirements or statements. It shall determine the presence or absence of the required eligibility requirements against a checklist (CBPM Form No. C-10)using non-discretionary “pass/fail” criteria. The BAC shall declare prospective bidders as either “eligible” or “ineligible”, based on its findings and inform them accordingly. A Notice of Eligibility/Non-Eligibility (CBPM Form No. C-11, 12)shall be duly accomplished and signed by the members of the BAC. In case prospective bidders declared ineligible, the Notice of Ineligibility shall state the reason for such ineligibility. The Notice will be received officially by the bidder’sauthorizedrepresentative. The BAC may return the Eligibility, Technical and Financial Bid envelope of an “ineligible” bidder if it does not intend to file a request for reconsideration or expressly waives its right to file a motion for reconsideration.

The BAC shall inquire from ineligible bidders who are present during the Eligibility Check whether or not they intend to file a motion for reconsideration. Those who are present at the time of opening of eligibility requirements, will be notified verbally while those who are not present will be informed in writing. If they signify their intention to do so upon verbal notification or written notice, the BAC shall keep the envelope containing the eligibility requirements and re-seal the same in the presence of all the participants. These shall be deposited in the Bid Box or any other secured place or location, together with the Technical and Financial bid, ensuring that the latter documents remain sealed. The BAC shall have three days to resolve the motion for reconsideration. The BAC shall proceed with the opening of the technical proposal of the eligible bidders , to determine each bidder’s compliance with the documents that are required to be submitted for the technical component of the bid. The BAC shall check the submitted technical documents of each bidder against a checklist (CBPM Form No. C-10) of required technical documents to ascertain if they are all present, using non-discretionary “pass/fail” criteria. If a bidder submits the required document and meets the eligibility criteria, it shall be rated “passed” for that particular requirement. Otherwise, it shall be rated as“failed”.In case one or more of the above-required documents in the Technical Proposal is missing, incomplete or patently insufficient, the bid shall be declared as “failed” and immediately returned to the bidder concerned, together with the Financial Proposal. A bidder determined as “failed” has three (3) calendar days upon receipt of written notice or, if present at the time of bid opening, upon verbal notification, within which to file a request for a reconsideration with the BAC. 15. Evaluation and Comparison of Bids: Immediately after determining compliance with the technical requirements, the BAC shall open the Financial Proposal of each remaining technically complying bidder whose submitted technical requirements were rated “passed” on the same day. The BAC shall determine whether one or more of the requirements of the Financial Proposal are missing, incomplete or patently insufficient. If the Financial Bid is complete, the BAC shall rate it “passed” and shall proceed with the evaluation of the Bid. Only bids that are determined to contain all the bid requirements for both Technical and Financial components shall be rated “passed” and shall be considered for evaluation and comparison. After the preliminary examination of bids, the BAC shall immediately conduct a detailed evaluation of all bids rated “passed,” which shall include a consideration of the following: i. The bid must be complete; ii. The bid must be balanced; iii. Minor arithmetical corrections to consider computational errors and omissions shall be made to enable proper comparison of all eligible bids; iv. All bids shall be evaluated on equal footing. v. Bid prices in words, unit prices, and unit cost in the bill of quantities shall prevail in case of discrepancy. Based on the detailed evaluation of bids, those that comply with the above-mentioned requirements shall be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors, discounts and other modifications, to identify the Lowest Calculated Bid (LCB). 16. Postqualification:

The BAC with the assistance of the TWG verifies and validates the LCB compliance with the legal, financial and technical requirements of the bid. The legal review verifies that all required licenses and other documents submitted are in order. The technical requirements are verified to prove compliance of the works offered with the requirements of the contract and bidding documents. The financial requirements are validated to ensure that the bidder can sustain the operating cash flow of the transaction. If the LCB passes the post-qualification, the BAC declares it as the Lowest Calculated and Responsive Bid (LCRB) and issues a Notice of Award (NOA). If the bidder with the LCB fails to pass post qualification, the BAC shall immediately notify the said bidder in writing of its postdisqualificationand the grounds for it. Thepostdisqualified bidder shall have three (3) calendar days from receipt of the said notification to request from the BAC, if it so wishes, are consideration of its decision. The BAC shall evaluate the request for reconsideration, if any, using the same non-discretionary criteria, and shall issue its final determination of the said request within seven (7) calendar days from receipt thereof. Immediately after the BAC has notified the first bidder of its postdisqualification,the BAC shall initiate and complete the same post-qualificationprocess on the bidder with the second LCB. If the second bidder passes the post-qualification, and provided that the request for reconsideration of the first bidder has been denied, the BAC shall declare the second bidder as the bidder with the LCRB. The C/BSPMC shall then award the contract to it. If the second bidder, however, fails the post-qualification, the procedure for post-qualification shall be repeated for the bidder with the next LCB, and soon until the LCRB, is determined for award. If no bidder passes post-qualification, the BAC shall issue a Resolution declaring a of bidding.

failure

17. Notification of Award and Signing of Contract: The C/BSPMC shall notify the LCRB of the award in writing prior to the expiration of the validity period of the Bid. The Notice of Award (NOA), together with the contract, will state the amount that the C/BSPMC will pay the winning bidder in consideration of the construction and execution of the works prescribed under the Contract. The BAC shall schedule the signing of the contract with the winning bidder who will then post the required performance security. 18. Performance Security: The performance security shall be posted in favor of the community, and will be forfeited in its favor in the event that the winning bidder fails to perform any of its obligations under the contract. The winning bidder should furnish the community with the performance security in accordance with the Conditions of the Contract, within a maximum period of ten (10) calendar days from the receipt of the NOA, and in all cases upon the signing of the contract. It must at least be co-terminus with the period of completion of the contract. The performance security shall be in any of the following forms, with the corresponding required amount: FORM OF PERFORMANCE SECURITY a. Cash, certified check, cashier’s check/manager’s check, bank draft; or b. Bank guarantee confirmed by a reputable local bank; or

MINIMUM AMOUNT 5% of Contract Price 10% of Contract Price

All checks and bank guarantees for performance security shall be issued in favor of the Chairperson of the C/BSPMC and shall be deposited in the C/BSPMC Account. The winning bidder must choose which among the preferred forms it shall submit. There shall be a corresponding change in the amount of the Performance Security posted by the winning bidder in the following instances: (a) issuance of a Variation/Change Order; (b) partial completion of works. The C/BSPMC may release the performance security to the winning bidder after the issuance of the Certificate of Acceptance of the works, provided that there are no claims for labor and materials filed against the contractor. However, it must ensure that the performance security is replaced by a warranty covering the defects liability period. 19. Notice to Proceed: Within three (3) calendar days from the signing of the contract and the posting of performance security, the C/BSPMC shall issue its Notice to Proceed (NTP) to the winning bidder. Unless otherwise specified in the contract, a contract is effective upon receipt of theNTP. If an effectivity date is provided in the NTP, such date shall not be later than seven (7) calendar days from issuance.

SECTION III. BID DATA SHEET BID DATA SHEET FOR GOODS PROCURED THROUGH COMMUNITY BIDDING Name of Community Project: _____________________________________________ 1.1. The Project Owner is: the Barangay Sub-Project Management Committee of (insert Name of Barangay, Municipality, Province) 1.2.

The item/s to be procured, lot(s) and reference is/are: [insert item/s of goods to be procured here]

1.3.

The required completion date shall be on: (insert exact date of delivery and completion)

4.0

The Site Visit and Inspection is required on (insert exact date, time and place of assembly) The Pre-Bid Conference is scheduled on (insert exact date, time and place of meeting) For the procurement of goods, the Bidder must have completed the following: a) Experience in completing a single contract that is similar in nature to the goods/services to be procured whose value must at least be fifty percent (50%) of the estimated contract cost; Eligibility documents shall include the following: i. DTI business name certificate of registration for sole proprietorships; SEC registration certificate for partnerships and corporations; or the Cooperatives Development Authority (CDA) registration for cooperatives; ii. Valid and current Mayor’s permit/municipal license from the bidders principal place of business; iii. Experience in completing contracts similar in nature to the goods/services to be procured; iv. Statement of all ongoing and completed NCDDP contracts within the period specified in the IB, including contracts awarded but not yet started; v. Audited Financial Statements for the preceding calendar year; vi. Computation of the Net Financial Contracting Capacity (NFCC); vii. Certificate of Site Inspection. Technical Proposals shall include the following:

6.0 7.I.

7.I

7.II.

7.III.

9.0

10.0 11.0

i. Bid Security as to form, amount and validity period; ii. Authority of the signatory ( Board Resolution if the bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is a Partnership, or a Special Power of Attorney (SPA) issued by the General Manager or Proprietor if the bidder is a sole proprietor; iii. Delivery schedule; iv. Manpower requirements, if applicable; v. After-sales service/parts, if applicable; vi. Technical specifications; vii. Certificate from the bidder under oath of its compliance with existing labor laws and standards, in the case of procurement of services; viii. A sworn statement attesting to the fact that the bidder has taken steps to carefully examine all of the bidding documents, acknowledged all conditions, affecting the implementation of the contract, made an estimate of the facilities available and needed for the contract to be bid, and complied with its responsibility of inquiring and securing all supplemental/bid bulletins issued by the BAC. Financial proposal shall include the following: i. Financial proposal sheet; ii. Recurring and maintenance costs, if applicable. Bids shall be offered in: (select appropriate mode) [ ] Unit Prices [ ] Lump Sum [] Combination of both The minimum amount of Bid Security shall be [insert bid amount as provided in the Invitation to Bid] in favor of C/BSPMC identified in 1.1. The form of bid security shall either be: a. Cash, certified check, cashier’s check/manager’s check, bank draft:(2%) of bid or b. Bank guarantee confirmed by a reputable local bank: 2 % of bid The bid validity period shall be no more than sixty (60) days from the date of bid opening on: (insert date of bid opening). Bids must be addressed as follows The C/BSPMC Chairperson Barangay Community Project Committee-Name of Barangay _________________ Municipality/ City/ Province

14.0 18.0

Bids may be delivered by hand, mail, or messenger/courier and must be received by the above address not later than date specified in 14.0 Bids shall be opened on (insert bid opening date, time and place as published on the Invitation to Bid ) The performance security shall be posted in favor of C/BSPMC identified in 1.1. The form of performance security shall either be: a. Cash, certified check, cashier’s check/manager’s check, bank draft:(5%) of contract price or b. Bank guarantee confirmed by a reputable local bank: 10% of contract price Performance validity period shall be up to the completion of the contract scheduled on: (insert date of project completion)

Note: To be filled-up by the C/BSPMC before the Issuance of Invitation to Bid, issuance of bidding documents and will form part of the Tender Documents.

SECTION III. BID DATA SHEET BID DATA SHEET FOR WORKS PROCURED THROUGH COMMUNITY BIDDING Name of Community Project: _____________________________________________ 1.1. 1.2.

The Project Owner is: the Barangay Sub-Project Management Committee of (insert Name of Barangay, Municipality, Province) The work/s to be procured, lot(s) and reference is/are: [insert item/s of works to be procured here]

1.3.

The required completion date shall be on: (insert exact date of works completion)

1.4.

The works are: Item No. ______

4.0 6.0 7.I.

7.I

Works Breakdown Structure Quantity (insert data here) ___________ ________________

________

( Refer to the Approved Program of Work ) The Site Visit and Inspection is required on (insert exact date, time and place of assembly) The Pre-Bid Conference is scheduled on (insert exact date, time and place of meeting) For the procurement of works, the Bidder must have completed the following: b) Experience in completing a single contract that is similar in nature to the works to be procured whose value must at least be fifty percent (50%) of the estimated contract cost; Eligibility documents shall include the following: i. Valid license issued by the Philippine Contractors Accreditation Board (PCAB). ii. Experience in completing contracts similar in nature to the works to be procured; iii. Statement of all ongoing and completed NCDDP contracts within the period specified in the IB, including contracts awarded but

7. II.

7.III.

9.0

not yet started; iv. Statement on the availability of key personnel that may be used for construction contracts; v. Statement on the availability of equipment may be used for construction contracts; vi. Audited Financial Statements for the preceding calendar year; vii. Computation of the Net Financial Contracting Capacity (NFCC); viii. Certificate of Site Inspection. Technical Proposals shall include the following: i. Bid Security as to form, amount and validity period; ii. Authority of the signatory ( Board Resolution if the bidder is a corporation or a cooperative, a Partnership Resolution if the bidder is a Partnership, or a Special Power of Attorney (SPA) issued by the General Manager or Proprietor if the bidder is a sole proprietor; iii. Construction schedule(bar chart or PERT/CPM) and S-curve; iv. Manpower schedule (weekly or monthly scheduling of skilled and unskilled workers, including the Project Manager, Project Engineers, Materials Engineers,and Foremen); v. Construction methods (narrative description of how the contractor will undertake the works under the contract); vi. Organizational chart for the contract to be bid, vii.List of contractor’s key personnel (viz. the Project Manager, Project Engineers,and Foremen), to be assigned to the contract to be bid, their complete qualification and experience data, and the key personnel’s signed written commitment to work on the contract once awarded to the contractor; viii. List of contractor’s equipment units pledged for the contract to be bid, which are owned (supported by proof/s of ownership), leased, and/or under purchase agreements (with corresponding engine numbers, chassis numbers and/or serial numbers), supported by certification of availability of equipment from the equipment lessor/vendor for the duration of the contract; ix. Equipment utilization schedule (weekly or monthly scheduling of the minimum equipment required for the contract); x. Construction safety and health program of the contractor; xi. Certificate from the bidder under oath of its compliance with existing labor laws and standards. Financial proposal shall include the following: i. Bid prices in the Bill of Quantities in the prescribed Bid Form; ii. Detailed estimates including a summary sheet indicating the unit prices of construction materials, labor rates and equipment rentals used, indicating also the direct and indirect costs, in coming up with the bid; and iii. Cash flow by the quarter and payments schedule. Bids shall be offered in: (select appropriate mode) [ ] Unit Prices [ ] Lump Sum [] Combination of both The minimum amount of Bid Security shall be [insert bid amount as provided in the Invitation to Bid] in favor of C/BSPMC identified in 1.1. The form of bid security shall either be: a. Cash, certified check, cashier’s check/manager’s check,bank draft:(2%) of bid or b. Bank guarantee confirmed by a reputable local bank: 2 % of bid

10.0 11.0

The bid validity period shall be no more than sixty (60) days from the date of bid opening on: (insert date of bid opening). Bids must be addressed as follows The C/BSPMC Chairperson Barangay Community Project Committee-Name of Barangay _________________ Municipality/ City/ Province

14.0 18.0

Bids may be delivered by hand, mail, or messenger/courier and must be received by the above address not later than date specified in 14.0 Bids shall be opened on (insert bid opening date, time and place as published on the Invitation to Bid ) The performance security shall be posted in favor of C/BSPMC identified in 1.1. The form of performance security shall either be: a. Cash, certified check, cashier’s check/manager’s check, bank draft:(5%) of contract price or b. Bank guarantee confirmed by a reputable local bank: 10 % of contract price Performance validity period shall be up to the completion of the contract scheduled on: (insert date of project completion)

Note: To be filled-up by the C/BSPMC before the Issuance of Invitation to Bid, issuance of bidding documents and will form part of the Tender Documents.

SECTION IV. CONDITIONS OF CONTRACT FOR GOODS TABLE OF CONTENTS 1.Definitions ..........................................................................................................................241 2.Scope of Contract ...............................................................................................................241 3.Subcontracting and Assignment.........................................................................................241 4.C/BSPMC’s Responsibilities...............................................................................................242 5.Prices ..................................................................................................................................242 6.Terms of Payment ..............................................................................................................242 7.Advance Payment ...............................................................................................................242 8.Taxes, Duties, Insurance and Transportation ....................................................................243 9.Standards ............................................................................................................................243 10.Inspection and Tests ........................................................................................................243 11.Warranty............................................................................................................................244 12. Amendment to Order .......................................................................................................244 13. Suspension of Delivery ....................................................................................................245 14.Delays in the Supplier’s Performance ..............................................................................245 15. Liquidated Damages........................................................................................................245 16.Settlement of Disputes .....................................................................................................246 17.Force Majeure ...................................................................................................................246 18.Termination for Default .....................................................................................................246 19.Termination for Insolvency ................................................................................................247 20.Termination for Convenience............................................................................................247 21.Procedures for Termination of Contracts .........................................................................247

CONDITIONS OF CONTRACT (CC) FOR GOODS 1. Definitions: a. Owner means the Community of ( Specify the name of the Barangay, Municipality, Province) through the Barangay Sub-Project Management Committee (C/BSPMC) as represented by its Chairman. b. Completion Date is the date of delivery of the goods/services as certified by the C/BSPMC. c. Contract is the Contract between the C/BSPMC and the Supplier to deliver and supply the goods specified in the specifications or in other sections of the Contract. d. Contract Price means the amount payable to the Supplier under the Contract for the full and proper performance of its contractual obligations. Contract Price is ___________________________ (P_________). e. Days are calendar days; months are calendar months. f.

Goods means all of the supplies, equipment, machinery, spare parts, other materials and/or general support services which the Supplier is required to provide to the Owner under the Contract.

g. Services means those services ancillary to the supply of the Goods, such as transportation and insurance, and any other incidental services, such as installation, commissioning, provision of technical assistance, training, and other such obligations of the Supplier covered under the Contract. h. Supplier means the individual contractor, manufacturer, distributor or firm supplying the goods and services under this contract. 2. Scope of Contract: 2.1.

The goods/services to be provided shall be as specified in Section VI. Schedule of Requirements.

2.2.

This Contract shall include all items that can be reasonably inferred as being required

for its completion. Any additional requirements for the completion of this Contract shall be provided in the schedule of requirements. 3. Subcontracting and Assignment: 3.1.

A Supplier may be allowed to subcontract a portion of the contract, not exceeding twenty percent (20%) of the total project cost. The bidding documents must specify what are considered as significant/material component/s of the project.

3.2.

All subcontracting arrangements must be disclosed at the time of bidding, and subcontractors must be identified in the bid submitted by the Supplier. Any subcontracting arrangements made during project implementation and not disclosed at the time of the bidding shall not be allowed.

3.3.

The Supplier will be responsible for the acts, defaults, and negligence of any subcontractor, its agents, servants or workmen as fully as if these were the Supplier’s own acts, defaults, or negligence, or those of its agents, servants or workmen.

3.4.

Subcontractors are obliged to comply with the provisions of the contract and shall be jointly and severally liable with the Supplier, in case of breach thereof, in so far as the portion of the contract subcontracted to it is concerned.

3.5.

As a general rule, the Supplier may not assign the contract, or any of its rights or obligations arising from the contract, to a third party, except with the C/BSPMC’s prior written consent.

4. C/BSPMC’s Responsibilities: 4.1.

The C/BSPMC shall assist the Supplier in obtaining permits, approvals and licenses whenever the performance of the obligations in this Contract requires such requirements.

4.2.

The C/BSPMC shall pay all costs involved in the performance of its responsibilities.

5. Prices: 5.1.

For the given scope of work in this Contract as awarded, all bid prices are considered fixed prices, and therefore not subject to price escalation during contract implementation.

5.2.

Prices charged by the Supplier for goods/services delivered under this Contract shall not vary from the prices quoted in its bid, with the exception of any change in price resulting from a Change Order.

6. Terms of Payment: 6.1.

Payments shall be made only upon a certification by the C/BSPMC Chairman to the effect that the goods/services have been rendered or delivered in accordance with the terms of this Contract and have been duly inspected and accepted. Ten percent (10%) of the amount of each payment shall be retained by the C/BSPMC to cover the Supplier’s warranty obligations under this Contract.

6.2.

The Supplier’s request(s) for payment shall be made to the C/BSPMC in writing, accompanied by an invoice describing, as appropriate, the goods/services delivered,

and by documents submitted, and upon fulfillment of other obligations stipulated in this Contract. 6.3. (30)

Payments must be made promptly by the C/BSPMC, but in no case later than thirty days after the Supplier’s request/s for payment. In addition, the C/BSPMC shall ensure that all accounting and auditing requirements are met prior to payment.

6.4.

Partial payment of the contract price will only be allowed if the contract provides for partial or staggered delivery of goods procured, and such partial payment must correspond to the value of the goods delivered and accepted;

7. Advance Payment: 7.1.

No advance payment shall be made for the purchase of goods except: (a) in contracts entered into by the C/BSPMC for the following services where requirement of down payment is a standard industry practice: (i) hotel and restaurant services; (ii) use of conference/seminar and exhibit areas; and (b) for procurement of goods required to address contingencies arising from natural or man-made calamities in areas where a “State of Calamity” has been declared by appropriate authorities.

7.2.

In the case of items(a) above, a single advance payment not exceeding fifty percent (50%) of the contract amount is allowed. In the case of item (b) above, an advance payment not exceeding fifteen percent (15%) of the contract amount is allowed. All subsequent payments should first be charged against the advance payment until the latter has been fully exhausted.

8. Taxes, Duties, Insurance and Transportation: 8.1.

The Supplier shall be entirely responsible for all the necessary taxes, duties, license fees, insurance and transportation costs and other related expenses, incurred until delivery of the contracted goods to the C/BSPMC .

8.2.

The goods procured must be fully insured by the Supplier against loss or damage incidental to their manufacture or acquisition, transportation, storage, and delivery in the manner specified in the contract.

8.3.

If the Supplier is required under the contract to transport the goods to a specified place of destination, defined as the project site, it will arrange and pay for the transport of the goods to such place of destination. It must also pay for insurance and storage, and related costs. These costs must be included in the contract price.

9. Standards: The goods supplied under the contract must conform to the standards mentioned in the technical specifications, which must preferably be Philippine national standards, or standards specified by the BPS. If there is no Philippine national standard applicable, the goods must conform to the authoritative standards appropriate to the goods’ country of origin. Such standards must be the latest issued by the concerned institution. 10. Inspection and Tests: 10.1.

The C/BSPMC has the right to inspect and/or to test the goods to confirm their conformity to the contract specifications at no extra cost to it. The bidding documents and the contract must specify what inspections and tests are required by the

C/BSPMC, and where these are to be conducted. The C/BSPMC must notify the Supplier in writing, in a timely manner, of the identity of any representatives retained for these purposes. 10.2.

The inspections and tests may be conducted on the premises of the Supplier or its subcontractor(s), at point of delivery, and/or at the goods’ final destination. All reasonable facilities and assistance, including access to drawings and production data, must be provided by the Supplier to the inspectors at no charge to the C/BSPMC .

10.3.

The C/BSPMC must bear its own costs and expenses incurred in connection with its attendance at inspections, including, but not limited to, all traveling and board and lodging expenses. The C/BSPMC may require the Supplier to carry out any test and/or inspection not required by the contract but deemed necessary to verify that the characteristics and performance of the goods comply with the technical specifications, codes and standards under the contract.

10.4.

The reasonable costs and expenses incurred by the Supplier in carrying out such test and/or inspection will be added to the contract price. These tests shall be conducted by a government testing laboratory, or, where there is none for the particular item being procured, in any testing laboratory accredited by the Department of Trade and Industry (DTI). The Supplier must provide the C/BSPMC with a report of the results of any such test and/or inspection. These results will be conclusive of the quality of the items and not subject to further dispute between the parties.

10.5.

The C/BSPMC may reject any goods or any part that fail to pass any test and/or inspection or do not conform to the specifications. The Supplier shall either rectify or replace such rejected goods or parts thereof or make alterations necessary to meet the specifications at no cost to the C/BSPMC, and shall repeat the test and/or inspection, at no cost to the C/BSPMC, upon giving a notice pursuant to the contract.

10.6.

The Supplier shall agree in the contract that neither the execution of a test and/or inspection of the goods or any part thereof, nor the attendance by the C/BSPMC or

its representative, shall release the Supplier from any warranties or other obligations under the contract. 11. Warranty:

11.1.

The Supplier warrants that the Goods supplied under the Contract are new, unused, of the most recent or current models, and that they incorporate all recent improvements in design and materials, except when the technical specifications required by the C/BSPMC provides otherwise.

11.2.

The Supplier further warrants that all Goods supplied under this Contract shall have no defect, arising from design, materials, or workmanship or from any act or omission of the Supplier that may develop under normal use of the supplied goods.

11.4.

In order to assure that manufacturing defects shall be corrected by the Supplier, a warranty shall be required from the Supplier either as retention money in an amount equivalent to at least ten percent (10%) of the final payment, or a bank guarantee equivalent to at least ten percent (10%) of the Contract Price. The said amounts shall only be released after the lapse of the warranty period; provided, however, that the

goods delivered are free from patent and latent defects and all the conditions imposed under this Contract have been fully met. 11.5.

The C/BSPMC shall promptly notify the Supplier in writing of any claims arising under the warranty. Upon receipt of such notice, the Supplier should, within the period specified in the contract and with all reasonable speed, repair or replace the defective goods or parts thereof, within 15 days, without additional costs to the C/BSPMC. In case the Supplier does not act upon its notice, the C/BSPMC shall select the appropriate sanction from among the following options: (a) require the supplier to return the amount paid; (b) confiscate its performance or warranty security, where applicable, (c) automatically blacklist the supplier in all KC-NCDDP procurements.

12.

Amendment to Order

12.1.

Amendments to Order may be issued by the C/BSPMC at any time during contract implementation, provided that such adjustment is required to fully meet the requirements of the project. The amendment may or may not result in an increase or a decrease of the contract price, and/or an extension or reduction of the delivery period.

12.2.

If an amendment to order increases or decreases the cost of, or the time required for executing any part of the work under the original contract, an equitable adjustment in contract price and/or delivery schedule should be mutually agreed upon between the parties concerned, and the contract should be modified in writing.

12.3.

Any increase in contract price must not exceed ten percent (10%) of the original contract price. Otherwise, the procurement should be subject to another bidding. In the adjustment of the price, the supplier and the C/BSPMC must ensure that the principle of “no loss, no gain” is applied, such that neither party gains or loses anything from the resulting price adjustment.

12.4.

If the amendment to order consists of additional items, the price adjustment shall be based on the unit prices in the original contract for items of goods similar to those in the original contract. If the contract does not contain any rate applicable to the additional items, then suitable prices shall be mutually agreed upon between the parties, based on prevailing market prices.

12.5.

A Supplier cannot proceed with the work under an Amendment to Order without approval from the C/BSPMC Chairperson.

13.

Suspension of Delivery

13.1.

The C/BSPMC may suspend the delivery or contract implementation, wholly or partly, by written order for a certain period of time, as it deems necessary. Appropriate adjustments shall be made in the delivery or contract schedule, or contract price, or both, and the contract shall be modified accordingly.

13.2.

Work must be resumed or delivery made either upon the lifting or the expiration of the suspension order. However, if the C/BSPMC terminates the contract covered by such order, resumption of work cannot be done.

14. Delays in the Supplier’s Performance:

14.1.

Delivery of the goods/services shall be made by the Supplier within the time schedule prescribed in the Contract.

14.2.

If delays are likely to occur at any time during the contract, the Supplier shall notify the C/BSPMC Chairperson in writing. The C/BSPMC Chairperson may grant time extensions, at its discretion, if based on meritorious grounds, with or without liquidated damages.

14.3.

In all cases, the request for extension should be submitted before the lapse of the original delivery date. The maximum allowable extension shall not be longer than the initial delivery period as stated in the original contract.

14.4.

In case the delay in the delivery of the goods/services exceeds a time duration equivalent to ten percent (10%) of the specified contract time plus any time extension duly granted to the Supplier, the C/BSPMC may terminate this Contract, forfeit the Supplier's performance security and award the same to a qualified Supplier.

15. Liquidated Damages If the Supplier fails to satisfactorily deliver any or all of the goods/services within the period(s) specified in this Contract inclusive of duly granted time extensions, if any, the C/BSPMC shall, without prejudice to its other remedies under this Contract and under the applicable law, deduct from the Contract Price, as liquidated damages, the applicable rate of one tenth (1/10) of one (1) percent of the cost of the unperformed portion for every day of delay until actual delivery or performance. The maximum deduction shall be ten percent (10%) of the amount of contract. Once the maximum is reached, the C/BSPMC shall rescind the Contract, without prejudice to other courses of action and remedies open to it. 16. Settlement of Disputes: 16.1.

If any dispute or difference of any kind whatsoever shall arise between the C/BSPMC and the Supplier in connection with or arising out of this Contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation. The disagreement may also be presented to appropriate Grievance Officer/Unit of KC-NCDDP. In case of further disagreement either party can take the matter to arbitration in accordance with the Law governing the Contract.

17. Force Majeure: 17.1.

The Supplier shall not be liable for forfeiture of its performance security, liquidated damages, or termination for default if and to the extent that the Supplier’s delay in performance or other failure to perform its obligations under the Contract is the result of a force majeure.

17.2.

For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used interchangeably. In this regard, a fortuitous event or force majeure shall be interpreted to mean an event which the Supplier could not have foreseen, or which though foreseen, was inevitable. It shall not include ordinary unfavorable weather conditions; and any other cause the effects of which could have been avoided with the exercise of reasonable diligence by the Supplier.

17.3.

If a force majeure situation arises, the Supplier shall promptly notify the C/BSPMC in writing of such condition and the cause thereof. Unless otherwise directed by the C/BSPMC in writing, the Supplier shall continue to perform its obligations under the

Contract as far as is reasonably practical, and shall seek all reasonable alternative means for performance not prevented by the force majeure. 18. Termination for Default: 18.1.

The C/BSPMC shall terminate this Contract for default when any of the following conditions attends its implementation: i.

There being no force majeure, the Supplier fails to deliver any or all of the goods within the period(s) specified in the contract, or within any extension granted by the C/BSPMC pursuant to a request made by the Supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price; ii. As a result of force majeure, the Supplier is unable to deliver or perform any or all of the goods or services, amounting to at least ten percent (10%) of the contract price, for a period of not less than sixty (60) calendar days after the receipt of the notice from the C/BSPMC stating that the circumstance of force majeure is deemed to have ceased; iii. The Supplier fails to perform any other obligation under the Contract. 18.2.

In the event the C/BSPMC terminates this Contract in whole or in part due to default, the C/BSPMC may procure, upon such terms and in such manner as it deems appropriate, goods/services similar to those undelivered, and the Supplier shall be liable to the C/BSPMC for any excess costs for such similar goods/services. However, the Supplier shall continue performance of this Contract to the extent not terminated.

19. Termination for Insolvency The C/BSPMC may at any time terminate this Contract by giving written notice, if the Supplier 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, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter to the C/BSPMC and/or the Supplier. 20. Termination for Convenience 20.1.

The C/BSPMC, by written notice sent to the Supplier, may terminate the contract, in whole or in part, at any time for its convenience. The notice of termination shall specify that the termination is for the C/BSPMC’s convenience, the extent to which performance of the Supplier under the contract is terminated, and the date upon which such termination becomes effective.

20.2.

Any of the following circumstances may constitute sufficient grounds to terminate a contract for convenience: i.

If physical and economic conditions have significantly changed so as to render the project no longer economically, financially or technically feasible, as determined by the C/BSPMC Chairperson; ii. The C/BSPMC Chairperson has determined the existence of conditions that make project implementation impractical and/or unnecessary, such as, but not limited to, fortuitous event/s, changes in laws and government policies; iii. Funding for the project has been withheld or reduced by higher authorities through no fault of the C/BSPMC; or iv. Any circumstance analogous to the foregoing.

20.3. The goods that are complete and ready for shipment within thirty (30) days after the Supplier’s receipt of notice of termination shall be accepted by the C/BSPMC at the contract terms and prices. For the remaining goods, the C/BSPMC may elect: i.

To have any portion completed and delivered at the contract terms and prices; and/or ii. To cancel the remainder and pay to the Supplier an agreed amount for partially completed goods and services and for materials and parts previously procured by the Supplier. 20.4.

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 C/BSPMC which cannot be sold in the open market, it shall be allowed to recover partially from the contract, on a quantum meruit basis. The fact of loss must be established before recovery may be made.

21. Procedures for Termination of Contracts: 21.1.

The following provisions shall govern the procedures for termination of this Contract:

a. Upon receipt of a written report of acts or causes which may constitute ground(s ) for termination, or upon its own initiative, the Project Implementation Team (PIT) shall, within a period of seven (7) calendar days, verify the existence of such ground(s) and cause the execution of a Verified Report, with all relevant evidence attached; b. Upon recommendation by the PIT, the C/BSPMC Chairman shall secure clearance from the Area Coordinator (AC) and terminate this Contract by a written notice to the Supplier conveying the termination of this Contract. The notice shall state: i.

that this 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; ii. the extent of termination, whether in whole or in part; iii. an instruction to the Supplier to show cause as to why this Contract should not be terminated; and iv. special instructions of the C/BSPMC, if any. c. The Notice to Terminate shall be accompanied by a copy of the Verified Report; d. Within a period of seven (7) calendar days from receipt of the Notice of Termination, the Supplier shall submit to the C/BSPMC Chairman a verified position paper stating why this Contract should not be terminated. If the Supplier fails to show cause after the lapse of the seven (7) day period, either by inaction or by default, the C/BSPMC Chairman shall issue an order terminating this Contract; e. The C/BSPMC may, at any time before receipt of the Supplier’s verified position paper described in item (d) above 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 receipt of the notice; f.

Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper, the C/BSPMC Chairman shall decide whether or not to terminate this Contract. It shall serve a written notice to the Supplier of its decision and, unless otherwise provided, this Contract is deemed terminated from receipt of the Supplier

of the notice of decision. The termination shall only be based on the ground(s) stated in the Notice to Terminate; g. The Supplier must serve a written notice to the C/BSPMC of its intention to terminate the contract at least thirty (30) 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 C/BSPMC.

SECTION IV. CONDITIONS OF CONTRACT FOR WORKS TABLE OF CONTENTS 1. Definitions.........................................................................................................................251 2. Possession of Site ...........................................................................................................252 3. Contractor’s Obligations and Responsibilities.................................................................252 4. Subcontracting ...................................................................................................................253 5. Contractor’s Program of Works .........................................................................................253 6. Inspection and Tests .......................................................................................................253 7. Measurement of Works .....................................................................................................254 8. Contract Price and Payment.............................................................................................254 9. Advance Payment ..............................................................................................................255 10. Retention Money ..............................................................................................................255 11. Final Payment ..................................................................................................................255 12.Variation Orders................................................................................................................255 13. Suspension of Work ........................................................................................................256 14. Contract Time Extension .................................................................................................257 15. Delays in Work Completion and Liquidated Damages ...................................................258 16. Liquidated Damages........................................................................................................258 17. Contract Completion ........................................................................................................259 18. Warranty and Defects Liability Period .............................................................................259 19.Termination of Contract for Default ..................................................................................260 20. Termination of Contract for Unlawful Acts.......................................................................261 21. Termination of Contract at the Instance of the Contractor..............................................261 22. Termination of Contract for Convenience........................................................................261 23. Termination of Contract due to Force Majeure ................................................................262 24. Settlement of Disputes ...................................................................................................262

CONDITIONS OF CONTRACT FOR WORKS 1. Definitions: a.

Owner means the Community of ( Specify the name of the Barangay, Municipality, Province)through the Barangay Sub-Project Management Committee (C/BSPMC) as represented by its Chairman.

b.

Bill of Quantities refers to a list of the specific items of the Work and their corresponding unit prices, lump sums, and/or provisional sums.

c.

The Completion Date is the date of completion of the Works as certified by the C/BSPMC. The Completion date is __________________. The C/BSPMC may agree to revise the Completion Date subject to prior clearance from the Regional Project Management Office (RPMO).

d.

Contract is the contract between the C/BSPMC and the Contractor to execute, complete, and maintain the Works.

e.

The Contractor is the juridical entity whose proposal has been accepted by the C/BSPMC and to whom the Contract to execute the Work was awarded.

f.

Contract Price is ___________________________ (P_________).

g.

Contract Time Extensionis the allowable period for the Contractor to complete the Works in addition to the original Completion Date stated in this Contract.

h.

Days are calendar days; months are calendar months.

i.

Defect is any part of the Works not completed in accordance with the Contract.

j.

Defects Liability Period is the one year period between contract completion and final acceptance within which the Contractor assumes the responsibility to undertake the repair of any damage to the Works at his own expense.

k.

Equipment is the Contractor’s machinery and vehicles brought temporarily to the Site to construct the Works.

l.

Materials are all supplies, including consumables, used by the Contractor for incorporation in the Works.

m.

Project Supervisor is the person appointed by the C/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 ___________________

n.

Specification means the description of the Works included in the Contract and any modification or addition made or approved by the C/BSPMC.

o.

The Site is ______________________________________________.

p.

The Start Date is _________________________. It is the date indicated in the Notice to Proceed for commencement of the Works.

q. the

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

r.

Work(s) refer to the Permanent Works and Temporary Works to be executed by the Contractor in accordance with this Contract.

2. Possession of Site: 2.1.

On the contract start date, the C/BSPMC shall grant the Contractor possession of so much of the Site as may be required to enable it to proceed with the execution of the Works.

2.2.

If the Contractor suffers delay or incurs cost from failure on the part of the C/BSPMC to give possession, the Contractor shall be given a Contract Time Extension.

2.3.

The Contractor shall bear all costs and charges for special or temporary right-of-way required by it in connection with access to the Site. The Contractor shall also provide at his own cost any additional facilities outside the Site required by it for purposes of the Works.

3. The Contractor’s Obligations and Responsibilities: 3.1.

The Contractor shall carry out the Works properly and in accordance with this Contract.

3.2.

The Contractor shall provide all supervision, labor, materials, plant and equipment, which may be required.

3.3.

The Contractor shall commence execution of the Works on the Start Date and shall carry out the Works in accordance with the Program of Work.

3.4.

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

3.5.

During Contract implementation, the Contractor and his subcontractors shall abide at all times by all labor laws, and other relevant rules which may be applicable to the works Among such regulations or laws are: i.

Employment of unskilled local labor. 100% 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. ii. Traffic regulations, including provision of adequate warning signs and traffic barriers. iii. 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. 3.6.

The Contractor must keep the site reasonably freefrom all unnecessary obstruction. It must also store or dispose of any equipment and surplus materials and clear away and remove from the site any wreckage, rubbish or temporary works that are no longer required. Upon the issuance of the Certificate of Acceptance, the Contractor shall remove from the site, all equipment, surplus material, rubbish and temporary works of every kind. It must leave such part of the site and works clean and in a workmanlike condition to the satisfaction of the Project Supervisor.

3.7.

Unless otherwise provided for in the contract, the contractor must turn-over to the C/BSPMC all excess, used, unused and/or reusable materials paid for in the contract such as, formworks, safety gadgets and devices, etc.

4. Subcontracting: 4.1.

Contractor may be allowed to subcontract a material or significant portion of the contract or project, which must not exceed fifty percent (50%) of the total project cost.

4.2.

Except if otherwise provided by the contract, the Contractor shall not subcontract any part of the works without the prior consent of the C/BSPMC Chairperson.This consent shall not relieve the Contractor of any liability or obligation under the contract.

4.3.

All subcontracting arrangements must be disclosed at the time of bidding, and subcontractors must be identified in the bid submitted by the bidder. For them to be allowed to do so, subcontractors should also pass the eligibility check for the portions of the contract that they will undertake.

4.4.

The Contractor shall be responsible for the acts, defaults and neglects of any subcontractor as fully as if these were its own acts, defaults or neglects, or those of its agents, servants or workmen.

5. Contractor’s Program of Works:

5.1.

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 C/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.

5.2.

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.

5.3.

The Contractor shall carry out and complete all the activities in accordance with the scope of works specified in the Contract.

6. Inspection and Tests 6.1.

All materials, plant/s and workmanship shall be of the kind described in the contract and in accordance with the instructions of the Project Supervisor. To ensure that this is the case, these materials, plant/s and workmanship will be subjected, from time to time, to such tests as the Project Supervisor may require.

6.2.

The Project Supervisor must, at all reasonable times, have access to the site and to all workshops and places where materials or plant are being manufactured, fabricated or prepared for the works. The Project Supervisor shall be entitled to inspect and test these materials and the plant or plants where these materials are being manufactured, fabricated, and/or prepared.

6.3.

If, at the time and place agreed above, the materials or plant are not ready for inspection or testing, the Project Supervisor may reject these materials or the plant and must notify the Contractor of such rejection immediately. The notice must state the Project Supervisor’s objection and the reasons for the objection. The Contractor, for its part, must then promptly make good the defector ensures that rejected materials or plant complies with the contract.

6.4.

The Project Supervisor will, after consultation with the Contractor, determine all the costs incurred in the repetition of the test or tests. These costs are recoverable from the Contractor by the C/BSPMC and may be deducted from any monies due to the Contractor. To help ensure the quality of materials being used in infrastructure projects, the Bureau of Research and Standards (BRS) of the DPWH, the DOST or the DTI shall accredit the testing laboratories that can be used in C/BSPMC infrastructure projects. All C/BSPMCs implementing infrastructure projects must use only these laboratories. Only tests done by these laboratories shall be recognized and accepted, except for the testing of new materials to be undertaken through procedures approved by the DPWH Secretary.

7. Measurement of Works: 7.1.

The Project Supervisor must measure the value of the works actually in-place in accordance with the contract. This measurement will be the basis for the payment that will be made to the Contractor in accordance with the Statement of Work Accomplished. The Contractor shall attend or send a qualified representative to assist the Project Supervisor in making such measurement; and supply all particulars required by the Project Supervisor.

8. Contract Price and Payment: 8.1.

The method and conditions of payment shall be specified in the contract. Any kind of payment, including advance and progress payments, must be made by the C/BSPMC as soon as possible, but in no case later than thirty (30) days after the submission of an invoice or claim by the Contractor, accompanied by documents submitted pursuant to the contract, and upon fulfillment of other obligations stipulated in the contract. The C/BSPMC must also ensure that all accounting and auditing requirements are met prior to payment.

8.2.

Price escalation is generally not allowed. For the given scope of work in the contrac ts awarded, the price must be considered as a fixed price.

8.3.

The first progress payment may be paid by the C/BSPMC to the contractor after 20% of the work had been accomplished. Thereafter, payments can be made once a month, provided that the latter submits a Progress Billing or a request for payment for work accomplished.

8.4.

For regular progress billings, the Contractor shall submit a request for payment together with the Statement of Work Accomplished to the C/BSPMC. Payments shall be released within seven (7) calendar days upon submission of complete documents verified and approved by the PIT, C/BSPMC Chairperson and the DAC or Municipal Engineer who shall verify and approve 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. Except as otherwise stipulated in the ITB, materials and equipment delivered on the site but not completely put in place shall not be included for payment.

9. Advance Payment: 9.1.

The Contractor may request for advance payment which must not exceed fifteen percent (15%) of the total contract price, and must be made in lump sum or, at the most, two (2) installments according to a schedule specified in the IT Band other relevant bidding documents. Moreover, it must be made only upon the submission by the Contractor of a written request. The Contractor must also submit to the C/BSPMC a bank guarantee equal in value to the advance payment.

9.2.

The C/BSPMC shall recover the advance payment by deducting from the progress payments until the advance is fully liquidated within the duration of the contract, and before full payment is made to the Contractor.

10. Retention Money: 10.1.

The C/BSPMC shall deduct the “Retention money” equal to ten percent (10%) of the progress payments to cover the uncorrected discovered defects and third party liabilities. It is collected from all progress payments until works equivalent to fifty percent (50%) of the value of works, as determined by the C/BSPMC, is accomplished. This is mandatory for all contracts costing PhP 1M or more in addition to Performance Security. For contracts less than PhP 1M, retention money is only deducted from the progress billing when there is no Performance Security posted.

10.2.

The “retention money” shall be due for release after the defects liability period. The

Contractor may request the C/BSPMC that, instead of retention money being withheld from each progress billing, it issues in favor of the C/BSPMC, a bank guarantee in an amount equivalent to the retention money substituted for. They must also be valid for a duration to be determined by the C/BSPMC and will answer for the purpose for which the ten percent (10%) retention is intended. The refund shall not be subjected to Withholding Tax. 10.3.

In case the community account is closed before the end of the defects liability period, as mandated by the project, the C/BSPMC shall require the Contractor to convert the retention money to bank guarantee from a reputable bank. Upon receipt of the bank guarantee the Barangay Treasurer shall prepare a Disbursement Voucher and issue a check equal to the amount of retention.

11. Final Payment: 11.1.

The Contractor may request for final payment upon one hundred percent (100%) completion of the work. This payment will be reduced by whatever balance remains of the amount that is needed in order to return to the C/BSPMC the fifteen percent (15%) advance payment previously made.

12. Variation Orders: 12.1.

Variation Orders may be issued by the C/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, 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.

12.2.

A Variation Order may either be in the form of a Change Order or Extra Work Order. A Change Order may be issued by the C/BSPMC to cover any increase/decrease in quantities of original Work items in the contract. An Extra Work Order may be issued by the C/BSPMC 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.

12.3.

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. However, if these adjustments are urgently necessary to complete the original scope of work, the C/BSPMC Chairperson, on the recommendation of the DAC or the Municipal Engineer, may authorize the Variation Order beyond ten percent (10%) but not more than twenty percent (20%).

12.4.

The payment to the contractor for additional work under Variation Orders, must be derived based on the following: i.

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 in the original contract shall be used. ii. For additional/extra works duly covered by Extra Works Orders involving network items that are not in the original contract, the unit prices will 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 C/BSPMC and the Contractor. The direct unit costs of new components must also be based on the Contractor’s estimate as validated by the C/BSPMC. The C/BSPMC must validate these prices through a documented canvass among three eligible suppliers in accordance with existing rules and regulations. The direct cost of the new work item must 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. 13. Suspension of Work: 13.1.

The C/BSPMC has the authority to suspend the work wholly or partly by written order dueto the following: i. Force majeure or any fortuitous event; or ii. Failure on the part of the contractor to: a. Correct bad conditions which are unsafe for workers or for the general public; b. Carryout valid orders given by the Project Supervisor; c. Perform any provisions of the contract; or d. Adjustment of plans to suit field conditions as found necessary during construction.

13.2.

The contract shall specify a period of seven (7) calendar days from date of receipt of the written order or notice for suspension of work, after which the said order may take effect and the Contractor, shall immediately comply.

13.3.

The Contractor has the right to suspend work operation on any or all projects/activities along the critical path of activities due to any of the following: i.

There exist right-of-way problems, that prohibit the Contractor from performing work in accordance with the approved construction schedule; ii. Peace and order conditions make it extremely dangerous, if not impossible, to work, such conditions having been certified in writing by the PNP station which has responsibility over the affected area; iii. There is a failure on the part of the C/BSPMC to deliver government–furnished materials and equipment as stipulated in the contract; or iv. The non-payment of the Contractor’s claim for progress billing beyond forty-five (45) Calendar days from the time the claim has been certified by the C/BSPMC Chairperson as having been supported by complete documentation, unless there are justifiable reasons which shall be communicated in writing to the Contractor. 13.4.

The Contractor may suspend work fifteen (15) calendar days after the C/BSPMC Chairperson has received a written notice of the suspension of work.

13.5.

Only in cases when the suspension of activities along the critical path is not due to the fault of the Contractor may the suspension of work be considered in the extension of time. In such cases, the elapsed time between the effective order suspending operation and the order to resume work shall be allowed the Contractor by adjusting the contract time accordingly.

14. Contract Time Extension: 14.1.

The contracts may be extended under the following conditions:

i.

There are additional works or other special circumstances that would entitle the Contractor to an extension of its contract; ii. The affected activities fall within the critical path of the PERT/CPM network; iii. The Contractor shall have notified the C/BSPMC that the amount of additional work or the occurrence of the special circumstance merits the extension of its contract, and that it had done so before the expiration of the contract and within thirty (30)calendar days after the start of the additional work or when the special circumstance has arisen; and iv. The C/BSPMC, after due investigation and on the recommendation of the DAC and the Municipal Engineer finds the request justified, determines the appropriate extension period, and approves the request of the Contractor for contract extension. 14.2.

If the Contractor fails to notify the C/BSPMC within the time period provided for, it waives any claims to contract extension.

14.3.

No contract extension must be given to a Contractor due to: i.

Ordinary unfavorable weather conditions, in that such weather conditions had already been taken into consideration and anticipated in the computation of the unworkable days; and ii. Inexcusable failure or negligence of the Contractor to provide the required equipment, supplies or materials. 14.4.

Some special circumstances to be considered for contract time extension: i. ii. iii. iv. v. vi.

14.5.

Major calamities such as exceptionally destructive typhoons, floods and earthquakes, and epidemics; Non-delivery on time of materials, working drawings, or written information to be furnished by the C/BSPMC; Non-acquisition of permit to enter private properties within the right-of-way resulting incomplete stoppage of construction activities; Region-wide or nationwide shortage of construction materials, as certified by the DTISecretary; Region-wide or nationwide general labor strikes, as certified by the DOLE Secretary;and Serious peace and order problems as certified by the Municipal Chief of Police.

If a Contractor incurs a delay and wishes to request for an extension of the completion of construction period: i.

It must submit a written request to the PIT for an extension of the completion of construction period, citing thereason/s for such delay. ii. The PIT shall either approve or disapprove the request for extension. iii If the extension is granted, the liquidated damages shall not be imposed and the contractor will be so informed in writing. iv. If, however, the request for extension is denied, the PIT shall inform the Contractor in writing of such denial, and ensure that the said notice or communication is received by the latter within reasonable time from receipt of the request for extension. The C/BSPMC then imposes the liquidated damages in accordance with the provisions of the contract and the procedures outlined below. 15. Delays in Work Completion and Liquidated Damages:

15.1. The Contractor must complete the work within the period prescribed by the C/BSPMC as specified in the contract. 15.2.

If delays are likely to be incurred, the Contractor must notify the C/BSPMC in writing, stating the duration and causes of the expected delay. The C/BSPMC may grant time extensions, at its discretion, if such extensions are meritorious, with or without liquidated damages.

15.3.

In all cases, the request for extension shall always be filed before the expiry of the original completion date. Maximum allowable extension shall not exceed the original construction period.

16. Liquidated Damages 16.1.

When the Contractor refuses or fails to satisfactorily complete the works under the contract within the specified contract duration, plus any time extension duly granted, and is thus considered in default under the contract, it will be liable for liquidated damages for the delay. The Contractor must pay the amount equal to one-tenth (1/10) of one percent (1%) of the contract cost of the delayed works for every day of delay. The liquidated damages will be imposed until such works are finally delivered or performed and accepted by the C/BSPMC.

16.2.

The C/BSPMC need not prove that it has incurred actual damages to be entitled to liquidated damages from the Contractor, and the same shall not be by way of penalty. Such amount shall be deducted from any money due or which may become due the Contractor under the contract and/or from the retention money or other securities posted by the Contractor, whichever is convenient to the C/BSPMC.

16.3.

In no case shall the sum of liquidated damages exceed ten percent (10%) of the contract amount. If it does, the contract shall be deemed automatically terminated by the C/BSPMC, without prejudice to other courses of action and remedies available to it.

16.4.

The C/BSPMC may also take over the contract or award the same to qualified constructor through direct contracting. In addition to the liquidated damages, the erring Contractor’s performance security shall also be forfeited.

17. Contract Completion: 17.1.

Once the project reaches an accomplishment level of ninety-five percent (95%) of the total contract amount, the C/BSPMC Chairperson shall create an Inspectorate Team to conduct preliminary inspection and to submit a punch-list within a period of fifteen (15) days. This 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. The Contractor shall complete the items in the punch-list in preparation for the final turnover of the project. 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.

17.2.

The Contractor shall request the C/BSPMC to issue a certificate of completion of the Works upon completion of the punch-list. The Project Supervisor will recommend such a certificate when he determines that the work is satisfactorily completed. The

C/BSPMC shall take possession of the site within seven (7) days upon issuance of certificate of completion of the Works. 17.3.

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 DAC or Municipal Engineer shall issue a Defects Liability Certificate after the Contractor has fulfilled its obligation under the Contract 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.

17.4.

During the defects liability period, the Contractor shall post a bank guarantee equal to ten (10%) percent of the contract cost payable to the C/BSPMC. In turn, the C/BSPMC will return to the contractor its Performance Security and issue the Certificate of Completion.

18. Warranty and Defects Liability Period 18.1.

A warranty is required to ensure that the Contractor will correct structural defects and failures.

18.2.

A one-year period after the completion of the project, called the defects liability period, is observed until final acceptance by the C/BSPMC.

18.3.

The Contractor shall assume full responsibility for the contract work within the defects liability period and shall be held responsible for any damage or destruction of the works except those occasioned by force majeure. 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 C/BSPMC Chairperson has issued an order to undertake repair.

18.4.

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.

18.5.

In case of Contractor’s failure or refusal to correct a defect within the time specified by the order, the C/BSPMC shall undertake such repair works and shall be entitled to full reimbursement of expenses incurred upon demand at the cost of the contractor. The Project Supervisor will assess the cost of having the defect corrected. The C/BSPMC shall recover these amounts by deducting from the amounts due to the Contractor.

18.6.

Any Contractor who fails to comply with the preceding paragraphs shall suffer perpetual disqualification from participating in any KC-NCDDP projects.

18.7.

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.

19.

Termination of Contract for Default:

19.1.

The C/BSPMC Chairperson may terminate a contract for default when any of the following conditions attend its implementation:

Due to the Contractor’s fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more; Ii. Due to the Contractor’s fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the work; or iii. The Contractor: i.

a. Abandons the contract works, refuses or fails to comply with a valid instruction of the Project Supervisor or fails to proceed expeditiously and without delay despite a written notice by the C/BSPMC ; b. 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; c. Does not execute the works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; d. Neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or e. Sub-lets any part of the contract works without approval by the C/BSPMC. 19.2.

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 issuance of the certificate. If the total amount payable to the C/BSPMC exceeds any payment due to the Contractor, the difference shall be a debt payable by the Contractor to the C/BSPMC.

19.3

The rescission of the contract shall be accompanied by the confiscation by the C/BSPMC of the Contractor’s performance security which shall be used by the C/BSPMC for the remaining works or for further improvement of the community project. The Contractor will also be recommended for blacklisting in all KC-NCDDP procurements. The Contractor shall be paid on a quantum meruit basis.

20. Termination of Contract for Unlawful Acts: 20.1.

The C/BSPMC may terminate the contract in case it is determined prima facie that the 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: i. Corrupt, fraudulent, collusive and coercive practices; ii. Drawing up or using forged documents; iii. Using adulterated materials, means or methods, or engaging in production contrary to rules of science or the trade; and iv. Any other act analogous to the foregoing.

20.2.

The Contractor shall be paid on a quantum meruit basis.

21. Termination of Contract at the Instance of the Contractor: 21.1.

The Contractor may terminate its contract with the C/BSPMC if the works are completely stopped for a continuous period of at least sixty (60) calendar days through no fault of its own, due to any of the following reasons:

i.

Failure of the C/BSPMC to deliver, within a reasonable time, supplies, materials, right-of-way, or other items it is obligated to furnish under the terms of the contract; or ii. The prosecution of the work is disrupted by the adverse peace and order situation, as certified and approved by the Municipal Chief of Police. 21.2.

The Contractor must serve a written notice to C/BSPMC of its intention to terminate the contract at least thirty (30) 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 C/BSPMC Chairperson.

21.3.

In cases of termination, the C/BSPMC shall return to the Contractor its performance security and shall pay unpaid claims on a quantum meruit basis.

22. Termination of Contract for Convenience: 22.1.

The C/BSPMC Chairperson, by written notice sent to the Contractor, may terminate the contract, inwhole or in part, at any time for its convenience. The notice of termination shall specify that the termination is for the C/BSPMC’s convenience, the extent to which performance of the Contractor under the contract is terminated, and the date upon which such termination becomes effective.

22.2.

Any of the following circumstances may constitute sufficient grounds to terminate contract for convenience: i. ii. iii. iv. v.

If physical and economic conditions have significantly changed so as to render the project no longer economically, financially or technically feasible, as determined by the C/BSPMC Chairperson; The C/BSPMC Chairperson has determined the existence of conditions that make project implementation impractical and/or unnecessary, such as, but not limited to, fortuitous event/s, changes in laws and government policies; Funding for the project has been withheld or reduced by higher authorities through no fault of the C/BSPMC ; Failure of the C/BSPMC to acquire the necessary right-of-way; or Any circumstance analogous to the foregoing.

23. Termination of Contract due to Force Majeure: 23.1.

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

24. Settlement of Disputes: 24.1.

The C/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 KC-NCDDP. In case of further disagreement either party can take the matter to arbitration in accordance with the Law governing the Contract.

SECTION V. STANDARD BIDDING FORMS FOR GOODS AND WORKS TABLE OF CONTENTS Certificate of Site Inspection for Goods (D 5-1) ....................................................................265 Cetificate of Site Inspection for Works (D 5-1) ......................................................................265 Statement of All Completed Government and Private Goods Contracts Similar to the Contract to be Bid (D 5-2)......................................................................................... 266 Statement of All Completed Government and Private Construction Contracts Similar to the Contract to be Bid (D 5-2) ............................................................................ 267 Statement of All On-Going and Completed Government and Private Goods Contracts, Including Contracts Awarded but Not Yet Started (D 5-3) ................................................. 268 Statement of All On-Going and Completed Government and Private Goods Contracts, Including Contracts Awarded but Not Yet Started (D 5-3) ................................................. 269 Net Financial Contracting Capacity Computation (D 5-4) .................................................. 270 Form of Bid Security (D 5-5) ............................................................................................... 271 Bid Securing Declaration (D5-6)......................................................................................... 272 Certificate of Compliance with Existing Labor Laws (D 5-7) .............................................. 274 Bid Offer Letter (D 5-8) ....................................................................................................... 275 List of Construction Equipment (D 5-9) .............................................................................. 276 List of Key Construction Personnel (D 5-10) ...................................................................... 277 Curriculum Vitae of Key Personnel (D 5-11) ...................................................................... 278 Draft Contract Agreement (D 5-12) .................................................................................... 279

CBPM Form D 5-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CERTIFICATE OF SITE INSPECTION FOR GOODS This is to certify that the bidder:(insert name of bidder) has participated in the joint site visit and inspection conducted by the Barangay Sub-Project Management Committee (C/BSPMC) on: (insert date of inspection) at (insert location of the project) for the supply of goods/services for: (insert name of project here). This certification is issued to support the bidder’s intent to bid for the above community project and shall be submitted as part of the bid requirements. _________________________ C/BSPMC Chairperson Date: __________________

CBPM Form D 5-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT

Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CERTIFICATE OF SITE INSPECTION FOR WORKS This is to certify that the bidder:(insert name of bidder) has participated in the joint site visit and inspection conducted by the Barangay Sub-Project Management Committee (C/BSPMC) on: (insert date of inspection) at (insert location of the project) for the supply of goods/services for: (insert name of project here). This is to further certify that the bidder has 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 the bidder’s intent to bid for the above community project and shall be submitted as part of the bid requirements.

________________________ C/BSPMC Chairperson Date:_________________

CBPM Form D 5-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:____________________________

Company Name of Bidder:__________________________

Statement of All Completed Government and Private Goods Contracts Similar to the Contract to be Bid

Name of the Contract or Title of the Project Government

a. Owner Name b. Address c. Telephone Nos.

Nature / Scope of Work

a. Amount at Award b. Amount at Completion c. Duration

Private

Prepared by:

Date:

_______________________ Name and Signature of Bidder

__________

a. Date of Award b. Contract Effectivity c. Date of Completion

CBPM Form D 5-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:____________________________

Company Name of Bidder:__________________________

Statement of All Completed Government and Private Construction Contracts Similar to the Contract to be Bid

Name of the Contract or Title of the Project Government

a. Owner Name b. Address c. Telephone Nos.

Nature / Scope of Work

d. Amount at Award e. Amount at Completion f. Duration

Private

Prepared by: _______________________

Date: __________ Name and Signature of Bidder

d. Date of Award e. Contract Effectivity f. Date of Completion

CBPM Form D 5-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:____________________________

Company Name of Bidder:__________________________

Statement of All On-Going and Completed Government and Private Goods Contracts, Including Contracts Awarded but Not Yet Started

Name of the Contract or Title of the Project

Owner’s Name and Address

Nature / Scope of Work

Total Contract Value

Date of Award

Value of Outstanding Contract

A) Government Contracts i On-going ii. Awarded but not yet started A) Private Contracts i. On-going iii. Awarded but not yet started Prepared by:

Date:

_______________________ Name and Signature of Bidder

__________

Estimated % Time of Accomplishment Completion Planned Actual

Contract Duration

Start Completed

CBPM Form D 5-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:____________________________

Company Name of Bidder:__________________________

Statement of All On-Going and Completed Government and Private Construction Contracts, Including Contracts Awarded but Not Yet Started

Name of the Contract or Title of the Project

Owner’s Name and Address

Nature / Scope of Work

Total Contract Value

Date of Award

Value of Outstanding Contract

A) Government Contracts i On-going ii. Awarded but not yet started A) Private Contracts i. On-going iii. Awarded but not yet started

Prepared by:

Date:

_______________________ Name and Signature of Bidder

__________

Estimated % Time of Accomplishment Completion Planned Actual

Contract Duration

Start Completed

CBPM Form D 5-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:__________________________ Company Name of Bidder:__________________________

Net Financial Contracting Capacity Computation (For Goods/Works) A. Summary of the Bidder’s Assets and Liabilities on the basis of the attached audited Financial Statements, stamped “RECEIVED” by the Bureau of Internal Revenue or the BIR authorized collecting agent, for the preceding calendar year. Year 1. 2. 3. 4. 5. 6.

Total Assets Current Assets Total Liabilities Current Liabilities Net Worth (1 – 3) Net Working Capital (2 – 4)

B. Net Financial Contracting Capacity Net Working Capital (6) Less: Value of all outstanding and uncompleted portions of projects under on-going contracts including awarded contracts to be started coinciding with contract to be bid X K (10 for contract duration of one year or less, 15 for contract duration of more than one year up to two years) Computed NFCC

_______________________________ Name and Signature of Bidder Date:___________________________

Amount

________________________________ Authorized Signing Official

Note: Please attach the certified true copies of the audited financial statements stamped “RECEIVED” by the Bureau of Internal Revenue or BIR authorized collecting agent for the latest /immediately preceding calendar year.

CBPM Form D 5-5 BANK LETTERHEAD FORM OF BID SECURITY (BANK GUARANTEE) (FOR GOODS/WORKS) 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 SubProject 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:

_________________________ _________________________ _________________________ _________________________

CBPM Form D 5-6 BID-SECURING DECLARATION To: [Insert name and address of the C/BSPMC Chairperson] We, the undersigned, declare that: 1. We understand that, according to your conditions, bids must be supported by a Bid Security, which may be in the form of a Bid-Securing Declaration. 2. We accept that: (a) we will be automatically disqualified from bidding for any contract with the Kalahi CIDSS National Community Driven Development Project (KC NCDDP) for a period of two (2) years upon receipt of your Blacklisting Order; and, (b) we will pay the applicable fine provided under Section 6 of the Guidelines on the Use of Bid Securing Declaration, if we have committed any of thefollowing actions: i.

Withdrawn our Bid during the period of bid validity required in the Bidding Documents; or

ii. Fail or refuse to accept the award and enter into contract or perform any and all acts necessary to the execution of the Contract, in accordance with the Bidding Documents after having been notified of your acceptance of our Bid during the period of bid validity. 3. We understand that this Bid-Securing Declaration shall cease to be valid on the following circumstances: i.

Upon expiration of the bid validity period, or any extension thereof pursuant to your request;

ii. We are declared ineligible or post-disqualified upon receipt of your notice to such effect, and (i) we failed to timely file a request for reconsideration or (ii) we filed a waiver to avail of said right; iii. We are declared as the bidder with the Lowest Calculated andResponsive Bid, and we have furnished the performance security and signed the Contract. IN WITNESS WHEREOF, We have hereunto set our hand/s this ____ day of [month] [year] at [place of execution]. [Insert NAME OF BIDDER’S AUTHORIZED REPRESENTATIVE] [Insert signatory’s legal capacity] Affiant

SUBSCRIBED AND SWORN to before me this __ day of [month] [year] at [place of execution], Philippines. Affiant/s are personally known to me and were identified by me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government identification card used], with his/her photograph and signature appearing thereon, with no. ______ and his/her Community Tax Certificate No. _______ issued on ______ at ______. Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC Serial No. of Commission ___________ Notary Public for ______ until _______ Roll of Attorneys No. _____ PTR No. __, [date issued], [place issued] IBP No. __, [date issued], [place issued]

Doc. No. ___ Page No. ___ Book No. ___ Series of ____.

CBPM Form D 5-7 BIDDER’S COMPANY LETTERHEAD Certificate of Compliance with Labor Laws and Standards This is to certify that I, (insert name of authorized signatory for bidder’s), as authorized signatory for: (insert company name of bidder), shall comply with all existing national and local labor laws and standards in the event that the (insert name of project here) is awarded to my company by the Barangay Sub-Project Management Committee (C/BSPMC) of (insert name of barangay, municipality, province. This certification is issued to support the firm’s intent to bid for the above community project and is submitted as part of the bid requirements. _______________________________ ________________________________ Name and Signature of Bidder Authorized Signing Official Date:___________________________

Republic of the Philippines Municipality of ____________ ACKNOWLEDGEMENT BEFORE ME, Notary Public for and the Municipality of ____________________, personally appeared ___________________________ (name of bidder) with residence certificate No. _________________ issued on _________________ at ________________________ in his capacity as Authorized Signing Official or (state the designation of bidder) of _______________________ (name of Bidder’s firm) known to me to be the same person who executed the foregoing Certificationandacknowledge to me that the same is his/her true act and deeds for and behalf of the firmhe/she represents. This instrument consists of one page including this page on which ACKNOWLEDGEMENT is written duly signed by the Authorized Signing Officer.

the

IN WITNESS WHEREOF, I have hereunto affixed my signature and seal this ______ day of _____________________, 200_ at ______________________.

NOTARY PUBLIC Until December ___, 200___ PTR NO. ______________ Issued at ______________ Issued on ______________

CBPM Form D 5-8

BID OFFER LETTER (For Goods/Works) BIDDER’S COMPANY LETTERHEAD Date: ___________________ To: The Chairman Barangay Sub-Project Management Committee Barangay Hall (Owner’s Address) Barangay _____________, Municipality of ___________________ Province of ___________________________ We offer to execute the _____________________________________________ (name of 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

_________________________ _________________________ _________________________

CBPM Form D 5-9

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:__________________________

Description

Model/Year

A. Owned 1. 2. 3. 4. 5. B. Leased 1. 2. 3. 4. 5. C. Under Purchase Agreements 1. 2. 3.

Company Name of Bidder:__________________________

List of Construction Equipment (For Works Contracts)

Capacity / Performance / Size

Plate No.

Motor No. / Body No.

4. 5.

Prepared by:

Date:

_______________________ Name and Signature of Bidder

__________

Location

Condition

Proof of Ownership / Lessor or Vendor

CBPM Form D 5-10

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:______________ Company Name of Bidder:______________

LIST OF KEY CONSTRUCTION PERSONNEL (For Works Contracts) No.

Position

Total Related Work Similar Experience (years)

Experience in Similar Works (years)

1 2 3 4 5 6 7 8

Please attach Organizational Chart showing lines of communications as well as communications plan for managing communications with key stakeholders. Prepared by:

Date:

_______________________

__________

Name and Signature of Bidder

CBPM Form D5-11

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project to be Bid:______________ Company Name of Bidder:______________

CURRICULUM VITAE OF KEY PERSONNEL (For Works Contracts) Position: Personnel information

Name:

Date of birth:

Professional qualifications: Present employment

Name of employer: Address of employer: Telephone:

Contact: (manager / personnel officer)

Fax:

E-mail:

Job title:

Years with present employer:

Summarize professional experience over the last 10 years, in reverse chronological order. Indicate particular experience relevant to the project. From To Company / Project / Position / Relevant technical and management experience

Prepared by:

Date:

_______________________

__________

Name and Signature of Key Personnel Note: Please prepare one for each k ey personnel. All CVs must be signed and dated.

CBPM Form No. D 5-12 DRAFT CONTRACT AGREEMENT FOR WORKS (Community Bidding, Community Shopping, Community Direct Contracting) AGREEMENT This Agreement, made the _____ day of ___________ 200__, by and between Barangay _________________________ (name of Barangay) Sub-Project Management Committee (C/BSPMC) with official address at __________________________________ (address) herein represented by ______________________ (name of C/BSPMC Chairperson) hereinafter called ‘the Owner”) and __________________________________________ (name of firm) with official address at _______________________________________ represented by _____________________ (name of Authorized Signing Official) 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 Community Bidding (LB)

For Community Shopping (LS) &Community Direct Contracting - Form of Bid (incl. detailed costing) - Request for Quotation - 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) 3. In consideration of the payments to be made by the Owner to the Contractor as hereinafter mentioned, the Contractor hereby covenants 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 Supplier/Contractor

_________________________ Authorized Signing Officer

For the Owner

_________________________ C/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 C/BSPMC 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 ______________

ANNEX E: COMMUNITY BIDDING FORMS FOR GOODS AND WORKS

COMMUNITY BIDDING FORMS FOR GOODS AND WORKS TABLE OF CONTENTS Pre-Procurement Conference Notice (E-1) ...........................................................................287 Minutes of Pre-Procurement Conference (E-2) ....................................................................288 Pre-Bid Conference Notice (E-3)...........................................................................................289 Minutes of Pre-Bid Conference (E-4) ....................................................................................290 Minutes of Bid Opening (E-5) ................................................................................................291 Supplemental/Bid Bulletin (E-6).............................................................................................292 Checklist of Bid Requirements for Bidders for Goods (E-7) .................................................293 Checklist of Bid Requirements for Bidders for Works (E-8)..................................................294 Checklist of Pass/Fail Bidding Requirements for BAC for Goods (E-9) ...............................295 Checklist of Pass/Fail Bidding Requirements for BAC for Works (E-10)..............................296 Notice of Eligibility (E-11).......................................................................................................298 Notice of Ineligiblity (E-12) .....................................................................................................299 Abstract of Bids Form for Works (E-13) ................................................................................300 Postqualification Report for Works (E-14) .............................................................................301 Resolution to Award (E-15)....................................................................................................303 Notice of Award (E-16) ..........................................................................................................304 Notice to Proceed (E-17) .......................................................................................................305 Performance Security Bank Guarantee (E-18) .....................................................................306 No Objection Letter Review Report (E-19)............................................................................307

CBPM Form E-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ PRE-PROCUREMENT CONFERENCE NOTICE Date of Issuance: Name of the Addressee: Address of the Addressee: Dear Sir / Madame: Notice is hereby given to all participants that the pre-procurement conference for (insert name of project), has been set on(insert date and time of the conference) at the (insert venue of the conference). For the information and guidance of all concerned. Very truly yours, Name of BAC Chairman Chairman, BAC

CBPM Form E-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ MINUTES OF PRE-PROCUREMENT CONFERENCE (For Goods/Works) Present were: ________________________ ________________________ ________________________ ________________________ ________________________ ________________________

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________

The pre-procurement conference for ( insert name of the contract), held at (insert venue of the conference), was called to order at (insert time of the start of the conference) on (insert date of the conference), and was presided by the (insert name of BAC Chairman/ Vice Chairman). 1.

Business Matters:       

2.    

Review of the approved CPP containing project; Review bidding documents; Review eligibility requirements, technical and financial components; Review bid evaluation procedures and evaluation criteria; Review postqualification procedures; Determine readiness of procurement; Possible causes of failure of bidding Others:

Other requirements in the Invitation to Bid; Review technical specifications/program of works; Possible replies to the bidders’ queries about therequirements; Other conditions of the contract.

There having no other remaining topics for discussion, the pre-procurement conference adjourned at (insert time of the adjournment). Prepared by: __________________________________ (Name and Signature of the Procurement Team Member)

Noted by: ____________________________ (Name and Signature of the BAC Chairman)

CBPM Form E-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ PRE-BID CONFERENCE NOTICE Date of Issuance Name of the Addressee Address of the Addressee Dear Sir / Madame: Notice is hereby given to all eligible bidders that the pre-bid conference for (insert name of the contract, has been set on (insert date and time of the conference) at the (insert venue of the conference). For the information and guidance of all concerned. Very truly yours, _____________________ Name of BAC Chairman Chairman, BAC

Received by the Bidder:

_______________________ Date:___________________

CBPM Form E-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ MINUTES OF PRE-BID CONFERENCE Present were: ________________________ ________________________ ________________________ ________________________ ________________________ ________________________

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________

The pre-bid conference for (insert name of the contract), held at (insert venue of the conference), was called to order at(insert time of the start of the conference) on(insert date of the conference), and was presided by the (insert name of BAC Chairman / Vice Chairman). 1. Business Matters: • Presentation on the technical and financial components of the Bid, including the explanation of the different documents to be submitted by each bidder; • Discussion on the requirements in the Instructions to Bidders, the replies to the bidders’ queries about the requirements, specifications and other conditions of the project, the bid evaluation of all bidders and post-qualification evaluation of the lowest calculated bidder • Reminders on the warranty requirement of the project • Etc. 2. Noted comment/reaction from the BAC representatives and bidders: There having no other remaining topics for discussion, the pre-bid conference adjourned at ( insert time of the adjournment). Prepared by: __________________________________ (Name and Signature of the Procurement Team Member)

Noted by: ____________________________ (Name and Signature of the BAC Chairman)

CBPM Form E-5

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ MINUTES OF OPENING OF BIDS Present were: ________________________ ________________________ ________________________ ________________________ ________________________ ________________________

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________

The bid opening for (insert name of the contract), held at (insert venue of the bid opening), was called to order at(insert time of the start of the bid opening) on(insert date of the bid opening), and was presided by the (insert name of BAC Chairman / Vice Chairman). 1. Business Matters: 2. Opening, Examination of Bids and Determination of Responsiveness 3. Reading of Bids and the Estimated Contract Cost A. Contractor’s Bids Required Bid Security = Bidder’s Name

Name/Type of Bid Security

Amount of Bid Security

Amount of Bid as Read

Bidder’s Signature

1. 2. 3. 4. 5. 6. 7. B. Estimated Contract Cost = 4. Noted comment/reaction from the BAC representatives/bidders: There having no other bids to be read and clarification to be made, the meeting (bid opening) adjourned at (insert time for adjournment). Prepared by: __________________________________ (Name and Signature of the Procurement Team Member)

Noted by: ____________________________ (Name and Signature of the BAC Chairman)

CBPM Form E-6

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

SUPPLEMENTAL/BID BULLETIN Bid Bulletin No.:_______

Date: ____________

To: All concerned participating prospective bidders: This Supplemental/Bid Bulletin is issued to modify or amend items in the Bidding Documents as follows: (For postponement of bid opening date) The opening of bids scheduled for (insert date, time and venue of original bid opening date) is hereby postponed to (insert date, time and venue of revised bid opening date) (For changes in quantities or specifications) The following are the revisions: A revised Invitation to Bid and Bid Form are issued due to changes in insert changes in quantity or specifications of some items as follows: Item

Description

Unit

Original (Quantity / Specifications)

Revised (Quantity / Specifications)

(For other changes or modification in the bid, insert additional information here) This shall form an integral part of the Bidding Documents. or In response to a query stated as “___(quote query here)____”, this Addendum is issued to modify or amend the Bidding Documents as follows: (insert additional information here) This shall form an integral part of the Bidding Documents. All other provisions not herein modified shall remain in full force and effect. For the guidance and information of all concerned. _______________________ Name and Signature of the BAC Chairman Date: __________________

CBPM Form E-7

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project: _________________

Company Name of Bidder:_____________

CHECKLIST OF BID REQUIREMENTS FOR BIDDERS (For Goods Contracts) 1. ELIGIBILITY ____

Department of Trade and Industry (DTI) business name registration for single proprietorship; ____ SEC Registration Certificate for partnerships or corporations; ____ CDA Registration for cooperatives ____ Valid and current Mayor’s permit/municipal license from the bidders principal placeof business ____ Statement of experience in completing similar government and private contracts; ____ Statement of all ongoing and completed government and private contracts, including contracts awarded but not yet started ____ Audited financial statements, stamped “received” by the BIR or its duly accredited and authorized agents, for the immediately preceding calendar year; ____ Computation of Net Financial Contracting Capacity (NFCC) ____ Certificate of Site Inspection 2. TECHNICAL PROPOSAL ____ Bid Security ____ Authority of the signing official ____ Delivery Schedule ____ Manpower Requirements, if applicable ____ After-sales service/parts, if applicable ____ Technical Specifications ____ Duly Notarized Certificate in compliance with existing labor laws and standards, in the case of procurement of services 3. FINANCIAL PROPOSAL ____ ____

Financial proposal sheet Recurring and maintenance costs, if applicable;

Prepared by: _________________ Name and Signature of Bidder Date: __________

CBPM Form E-8

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Name of Project: _________________

Company Name of Bidder:_____________

CHECKLIST OF BID REQUIREMENTS FOR BIDDERS (For Works Contracts) 1. ELIGIBILITY ____ Valid license issued by the Philippine Contractors Accreditation Board (PCAB); ____ Statement of experience in completing similar government and private contracts; ____ Statement of all ongoing and completed government and private contracts, including contracts awarded but not yet started ____ Statement on the availability of key personnel that may be used for construction contracts; ____ Statement on the availability of equipment may be used for construction contracts; ____ Audited financial statements, stamped “received” by the BIR or its duly accredited and authorized agents, for the immediately preceding calendar year; ____ Computation of Net Financial Contracting Capacity (NFCC) ____ Certificate of Site Inspection 2. TECHNICAL PROPOSAL ____ Bid Security ____ Authority of the signing official ____ Construction schedule(bar chart or PERT/CPM) and S-curve; ____ Manpower schedule; ____ Construction methods; ____ Organizational chart for the contract to be bid; ____ List of contractor’s key personnel; ____ List of contractor’s equipment units pledged for the contract to be bid; ____ Equipment utilization schedule; ____ Construction safety and health program of the contractor; ____ Duly Notarized Certificate in compliance with existing labor laws and standards, 3. FINANCIAL PROPOSAL ____ Bid prices in the Bill of Quantities in the prescribed Bid Form; ____ Detailed estimates including a summary sheet indicating the unit prices ____Cash flow by the quarter and payments schedule. Prepared by: _________________ Name and Signature of Bidder Date: __________

CBPM Form E-9

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CHECKLIST OF PASS/FAILBIDDING REQUIREMENTS FOR BAC (For Goods Contracts) Name of Project: _________________

Company Name of Bidder:_____________ PASS/FAIL

REQUIREMENTS

Remarks

I.ELIGIBILITY Department of Trade and Industry (DTI) business name registration, SEC Registration Certificate, CDA Registration Valid and current Mayor’s permit/municipal license from the bidders principal placeof business Statement of experience in completing similar government and private contracts Statement of all ongoing and completed government and private contractsincluding contracts awarded but not yet started Audited financial statements, stamped “received” by the BIR or its duly accredited and authorized agents, for the immediately preceding calendar year Computation of Net Financial Contracting Capacity (NFCC) Certificate of Site Inspection II. TECHNICAL PROPOSAL Bid Security Authority of the signing official Delivery Schedule Manpower Requirements, if applicable After-sales service/parts, if applicable Technical Specifications III.FINANCIAL PROPOSAL Detailed estimates including a summary sheet indicating the unit prices Cash flow by the quarter and payments schedule Note: In case one document 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. Prepared by:

Noted by:

__________________________________ (Name and Signature of the Procurement Team Member) CBPM Form E-10

____________________________ (Name and Signature of the BAC Chairman)

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ CHECKLIST OF PASS/FAILBIDDING REQUIREMENTS FOR BAC (For Works Contracts) Name of Project: _________________

Company Name of Bidder:_____________

REQUIREMENTS

PASS/FAIL

Remarks

I. ELIGIBILITY Valid license issued by the Philippine Contractors Accreditation Board (PCAB) Statement of experience in completing similar government and private contracts Statement of all ongoing and completed government and private contractsincluding contracts awarded but not yet started Statement on the availability of key personnel that may be used for construction contracts Statement on the availability of equipment may be used for constructioncontracts Audited financial statements, stamped “received” by the BIR or its duly accredited and authorized agents, for the immediately preceding calendar year Computation of Net Financial Contracting Capacity (NFCC) Certificate of Site Inspection II. TECHNICAL PROPOSAL Bid Security Authority of the signing official Construction schedule(bar chart or PERT/CPM) and S-curve Manpower schedule Construction methods Organizational chart for the contract to be bid List of contractor’s key personnel List of contractor’s equipment units pledged for the contract to be bid Equipment utilization schedule Construction safety and health program of the contractor Duly Notarized Certificate in compliance with existing labor laws and standards III.FINANCIAL PROPOSAL Financial proposal sheet Recurring and maintenance costs, if applicable Note: In case one document 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.

Prepared by: __________________________________ (Name and Signature of the Procurement Team Member)

CBPM Form E-11

Noted by: ____________________________ (Name and Signature of the BAC Chairman)

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

NOTICE OF ELIGIBILITY Date of Issuance: Name of the Bidder Address of the Bidder Fax Number of the Bidder Dear Sir / Madame: This is to inform you that you have been declared eligible to bid for Contract #: ___________, Contract Name: ______________.

Very truly yours, Name of the BAC Chairman BAC Chairman Received by the Bidder: _______________________ Date:___________________

CBPM Form E-12

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

NOTICE OF INELIGIBILITY

Date of Issuance Name of the Bidder Address of the Bidder Fax Number of the Bidder Dear Sir / Madame: This is to inform you that you have been declared ineligible to bid for Contract #: _________, Contract Name: __________________________ for the following reasons: In accordance with Section 23.3 of the IRR-A of R.A. 9184, you have seven (7) calendar days within which to file a motion for reconsideration.

Very truly yours,

Name of the BAC Chairman BAC Chairman

Received by the Bidder:

_______________________ Date:___________________

CBPM Form E-13

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________

ABSTRACT OF BIDS FORM FOR WORKS 1. 2. 3. 4.

Name of Project: _________________________ Estimated Project Cost: _________________________ Contract Duration: _________________________ Bidders CONTRACTOR’S NAME

SUBMITTED BID PRICE

EVALUATED BID PRICE

RANKING

5. Any issues (to be) discussed or clarified with the bidder before finalization of contract. Give details. Signatures of Evaluators: TWG Members Present

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

Date: ___________________

CBPM Form E-14

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ POST-QUALIFICATION REPORT (FOR WORKS) Name of Project:______________________________ Name of Bidder with Lowest Calculated Bid:_______________________________ Date of Postqualification:________ RESULTS OF INVESTIGATION Test of Contractor’s Qualification Conduct review of awardees’ general eligibility qualifications based on the Instruction to Bidders 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 Test of Contractor’s Financial Capability Check the NFCC (NFCC should be more than Contract Cost) Contractor’s Reputation in the Community Check if the contractor has a good standing/reputation in the community or nearby Municipalities Form to be filled up in conducting the Post-Qualification Evaluation:

REQUIREMENTS

I. ELIGIBILITY Valid license issued by the Philippine Contractors Accreditation Board (PCAB) Statement of experience in completing similar government and private contracts Statement of all ongoing and completed government and private contractsincluding contracts awarded but not yet started Statement on the availability of key personnel that may be used

Documentary Review (Check whether the document submitted matches the original documents or in accordance w/ required documents)

POST-QUALIFICATION (Review computation, validate the submitted PASS or documents at the office FAIL? who issued the documents, and others)

for

construction contracts

Statement on the availability of equipment may be used for constructioncontracts Audited financial statements, stamped “received” by the BIR or its duly accredited and authorized agents, for the immediately preceding calendar year Computation of Net Financial Contracting Capacity (NFCC) Certificate of Site Inspection II. TECHNICAL PROPOSAL Bid Security Authority of the signing official Construction schedule(bar chart or PERT/CPM) and S-curve Manpower schedule Construction methods Organizational chart for the contract to be bid List of contractor’s key personnel List of contractor’s equipment units pledged for the contract to be bid Equipment utilization schedule Construction safety and health program of the contractor Duly Notarized Certificate in compliance with existing labor laws and standards III.FINANCIAL PROPOSAL Financial proposal sheet Recurring and maintenance costs, if applicable TECHNICAL WORKING GROUP MEMBERS: ______________________________ ______________________________ ______________________________ Noted by:

Approved by:

____________________ Name and Signature of BAC Chairman

_________________________ Name and Signature of C/BSPMC Chairman

Date: ___________________

CBPM Form E-15

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ RESOLUTION TO AWARD WHEREAS, the Invitation to Bid for the contract (insert the name of the contract)has been issued to interested bidders. WHEREAS, in response to the invitation, (insert the 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 (insert name of bidder with lowest calculated bid)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, Asian Development Bank, 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: _________________________ C/BSPMC Chairperson

Date: ___________________

CBPM Form E-16

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ 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 Bidding 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: 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 i.

b. Construction Schedule and S curve. Very truly yours, _________________________ Chairperson, Barangay Community Project Management Committee CONFORME:

_________________________

CBPM Form E-17

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT Office of the Barangay Sub-Project Management Committee Barangay: _________________________ Municipality: ________________________ Province: __________________________ Date: ___________________ NOTICE TO PROCEED 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 KalahiCIDSS: 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. _________________________ C/BSPMC Chairperson

Date: ___________________

Received Original on: _________________________ (Date)

By: ________________________________________________ (Name, Signature and Position of authorized representative)

CBPM Form E-18 LETTERHEAD OF BANK PERFORMANCE SECURITY BANK GUARANTEE To: The Barangay Sub- Project Management Committee of (insert name of barangay, municipality, province) (Address of C/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

_________________________

CBPM Form E-19

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT NO OBJECTION LETTER (NOL) REVIEW REPORT A. DOCUMENTS SUBMITTED Item Date No. submitted at ACT

DOCUMENTS TECHNICAL Approved POW& Approved Engineering Plans Minutes of the Pre-Procurement Conference Invitation to Quote/Bid (Newspaper clippings or a copy of the posted invitation) 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 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 (For bidder recommended for award) List of Technical Personnel Construction Methods (itemized and with safety procedures) Bid Data Sheet PS Mark License (for Pipes) FINANCIAL ITR Audit Statement( for bidder recommended for award ) Bid Security (for bidder recommended for award ) NFCC (for bidder recommended for award ) LEGAL Contractor’s License or Temporary Certificate of Renewal (For expired license) Resolution to Award

297Community-Based Procurement Manual

REMARKS

Item Date No. submitted at ACT

DOCUMENTS

REMARKS

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 ) 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/ADB

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

298Community-Based Procurement Manual

_________________________________________________________________ (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 Bidders

of Bid Offered

Bid Security Amount

REMARKS 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 postqualification 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.)

299Community-Based Procurement Manual

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 Date: ______________

________________________ Area Coordinator Date: ___________________

DRCIS/RCIS SECTION: VALIDATION REPORT: ____________________________________________________________________________ _________________________________________________________ RECOMMENDATION: ____________________________________________________________________________ ________________________________________________________ Reviewed: __________________ RCIS Date: ______________ Endorsed by: _________________________________ Community Procurement Specialist Date: ______________

300Community-Based Procurement Manual

GUIDES IN FILLING UP NOL REVIEW FORM: I.

Indicate what are the technical, financial and legal documents submitted by the bidder in reference to the checklist of documents for NPMO/MCAP NOL. 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:

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Documents I.TECHNICAL a. List of Community Projects undertaken

Based on Documentary Review Check if the community projects undertaken are supported with contract and certificate of acceptance

Based on PostQualification. Interview the client if it is true that the bidder has a project with them and what is his performance.

Status ( Pass/fail ) 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

d. List of equipment lease

II. FINANCIAL a. Income Tax Return

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 if supported with lease contract and Official Receipt and Certificate of Registration.

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.

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)

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 deed of sale, Certificate of Registration (For Dump Truck) and Official Receipt (For DT)

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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.

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 NFCC is less than the contract for bid, then require 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.

b. SEC Registration

Check if supported with articles of incorporation

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.

Check if in the articles of incorporation its business is within their primary and secondary purpose. Validate if the owner has issued an authority or if corporation has issued a board resolution allowing its employee to represent the corporation.

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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. Pass: If the SEC registration is supported with Articles of Incorporation and validated that their business is within their primary and secondary purpose. 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.

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ANNEX F: PROCUREMENT MONITORING FORMS

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CBPM F-1

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT COMMUNITY PROCUREMENT MONITORING CHECKLIST Name of Community Project : ________________________________ Date Prepared: ________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Contract Cost: _______________ Project Duration: _______________ Project Start Date: ___________________ Proposed Project Completion Date:______________ Type of Procurement: ( ) Goods ( ) Works ( ) Services ( ) Others Method of Procurement: ( ) Community Bidding ( ) Community Shopping ( ) Community Direct Contracting ( ) Others, specify__________________ Please check the availability of the following documents by method of procurement. For required documents that are not available, please explain the reason in the remarks column. Please prepare three copies, one copy for the C/BSPMC, one copy for the ACT, one copy for the RPMO. Documentary Requirement Date Availability Responsible Person Remarks Submitted Yes No 1. APPROVED PROGRAM OF WORKS C/BSPMC Chairperson 2A. Survey of Available Suppliers and Procurement Team Contractors 2B. Survey of Available Contractors and Procurement Team Laborers 2C. Price Data Base (Regional Office) DAC 3. COMMUNITY PROCUREMENT PLAN Procurement Team 4. PROCUREMENT ACTION PLAN Procurement Team 5. Invitation to Bid/Notice of Request for Quotation 6. BIDDING DOCUMENTS Procurement Team Community Bidding for Goods: a. Invitation to Bid b. Instruction to Bidders c. Bid Data Sheet d. General and Special Conditions of Contract e. Schedule of Requirements f. Technical Specifications of the goods to be procured g. Sample Forms Community Bidding for Works a. Invitation to Bid (IB) b. Eligibility Documents c. Eligibility Data Sheet d. Instruction to Bidders (ITB) e. Bid Data Sheet (BDS) f. General Conditions of Contract (GCC) g. Special Conditions of Contract (SCC) h. Scope of Work (SOW) i. Drawings (if applicable) j. Bill of Quantities k. Forms and Qualification Information Community Shopping/Direct Contracting for Goods a. Request for Quotation (RFQ)/Canvass Form b. Acknowledgement Receipt c. Abstract of Quotations/Canvass d.Purchase Order e.Technical Specifications

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Documentary Requirement

Date Submitted

Community Shopping/Direct Contracting for Works a. Notice of Request for Quotation (NRFQ) b. Contract Agreement c. Technical Specifications d. Drawings, if applicable e. Bill of Quantities f. Standard forms for community shopping for works (performance securities, notice of approval, notice to proceed, etc.) 6. Minutes of Pre-Procurement Conference 7. Certificate of Site Inspection 8. FOR COMMUNITY BIDDING FOR GOODS: Eligibility DTI Business Name License/SEC Registration Mayor’s Permit Track Record Form Statement of On-Going and Awarded Contracts Audited Financial Statement NFCC Computation Technical Proposal a. Bid Security b. Authority of the signatory c.Delivery schedule d. Certificate of compliance with existing labor laws and standards, in the case of procurement of services e. Sworn statement Financial a. Financial Proposal Sheet For Community Bidding for Works Eligibility Contractor’s License Track Record Form Statement of On-Going and Awarded Contracts Audited Financial Statement Statement on Availability of Key Personnel and Equipment Audited Financial Statement NFCC Computation Technical Proposal a.Bid Security b.Authority of signatory c. Construction schedule d. Manpower schedule e. Construction methods f. Organizational chart g. List of contractor’s key personnel h. List of contractor’s equipment units pledged for the contract i. Equipment utilization schedule k. Construction safety and health program Financial a. Bid prices in Bid Form b. Detailed estimates c. Cash flow 9. Minutes of Eligibility and Bid Evaluation

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Availability Yes No

Responsible Person

Procurement Team C/BSPMC Chairperson Procurement Team Bidder

Bidder

Bidder

Bidder

Bidder

Bidder

Procurement Team

Remarks

Documentary Requirement

Date Submitted

10. Abstract of Bids 11. Postqualification Report 12. No-Objection Letter (where applicable) 13. Resolution of Award 14. Notice of Award 15. Contract 16. Performance Security 17. Notice to Proceed for Works 18. Official Receipt/Invoice/Delivery Receipt 19. Certificate of Inspection/Acceptance FOR COMMUNITY SHOPPING/DIRECT CONTRACTING FOR GOODS AND WORKS 20. Request for Quotation 21. Certification of Only One Available Supplier/Contractor 21. Minutes of Opening of Quotations 22. Purchase Order 23. Disbursement Vouchers of Payments FOR SMALL VALUE PROCUREMENTS FOR GOODS 24. Purchase/Job Order FOR PAKYAW CONTRACTS 25. List of Workers Who Will Join Pakyaw Groups 26. List of Tools and Equipment Supplied by Barangay 27. Pakyaw Contract 28. Small Works Contract/Job Order Prepared by: _____________________ Deputy Area Coordinator (Name and Signature)

Availability Yes No

Responsible Person Procurement Team TWG RPMT/NMPT/ADB/WB BAC BAC/C/BSPMC Chairperson Procurement Team Bidder C/BSPMC Chairperson Bidder MIT Procurement Team Municipal Engineer/DAC Procurement Team C/BSPMC Chairperson Bookkeeper Procurement Team Community Facilitator Project Supervisor Procurement Team Procurement Team

Reviewed by: Approved by: ________________________ ___________________ Municipal Engineer C/BSPMC Chairperson (Name and Signature) (Name and Signature)

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Remarks

CBPM FormF-2

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT COMMUNITY PROCUREMENT COMPLIANCE MONITORING REPORT Name of Community Project : ________________________________ Date Prepared: ________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Contract Cost: _______________ Project Duration: _______________ Project Start Date: ___________________ Proposed Project Completion Date:______________ Type of Procurement: ( ) Goods ( ) Works ( ) Services ( ) Others Method of Procurement: ( ) Community Bidding ( ) Community Shopping ( ) Community Direct Contracting ( ) Others, specify _________________

Section A. Compliance Monitoring Procurement Activity A. PRE-PROCUREMENT 1. Does the Community have a Procurement Team and Bids and Awards Committee? 2. Is the item to be procured in the approved Community Procurement Plan? 3. Is the Community Procurement Plan validated and approved by the BAC and C/BSPMC Chairperson? 4. Are the estimates within the prevailing local prices? 5. Are the bidding documents/request for quotation documents in order? (Check with Compliance Monitoring Checklist and identify documents that are not available) 6. Did these follow the prescribed forms? 7. Was a Pre-Procurement Conference conducted? 8. Were minutes of the Pre-Procurement Conference prepared? B. PRE-BIDDING 9. Did the Invitation to Bid/Request for Quotation provide for all required information? 10. Was the Invitation to Bid/Request for Quotation posted in the required places? 11. Was the Invitation to Bid/Request for Quotation posted for the prescribed period of time? 12. For community bidding, were three suppliers/contractors given direct invitation to participate in the bid? For community shopping/direct contracting, were the prescribed minimum number of bidders given invitations to participate in the bid? 13. Was a pre-bid conference conducted? 14. Were PT, BAC, C/BSPMC, TWG, PIT, DAC and bidders present during the meeting?

Compliance Monitoring Yes No

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Remarks (Explain the reason for noncompliance)

Procurement Activity 15. Were minutes of the Pre-Bid Conference prepared ? 16. Was a Site Inspection conducted ? 17. Were all the concerned people present ? 18. Did the C/BSPMC Chairperson issue Certificates of Site Inspection to those who attended ? C. BID/QUOTATION SUBMISSION TO OPENING 19. Were the submitted bids/quotations sealed ? 20. Were the submitted bids/quotations kept in a secure bid box under lock and key ? 21. Were the bids/quotations submitted on or before the deadline ? 22. Was the bid/quotations opening done immediately after the deadline for the submission of bids/quotations ? 23. Were the bids/quotations read aloud in public 24. Were minutes of the bids/quotations opening prepared ? D. BID/QUOTATION EVALUATION For Community Bidding 25. Did the BAC review all the eligibility requirements of bidders ? 26. Were the eligibility documents of eligible bidders in order and in accordance with the checklist ? 27. Were the technical proposals of eligible bidders in order and in accordance with the checklist ? 28. Were the financial proposals of eligible bidders in order and in accordance with the checklist ? 29. Did the bid securities conform to requirements ? 30. Were bids initialed by BAC members ? 31. Do specifications of bidders conform with required specifications? 32. Were complying bids ranked from highest to lowest? 33. Were bids evaluated based on the required procedures? 34. Was and Abstract of Bid prepared? 35. Was award made to the lowest calculated and responsive bid? For Community Shopping/CommunityDirect Contracting 36. Do specifications of bidders conform with required specifications? 37. Were quotations evaluated based on

Compliance Monitoring Yes No

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Remarks (Explain the reason for noncompliance)

Procurement Activity required procedures? 38. Did the DAC bring a list of prevailing prices for purposes of comparison? 39. Where applicable, was an abstract of quotations prepared? 40. Was award made to the lowest calculated and responsive quotation? E. POSTQUALIFICATION 41. For community bidding, was postqualification conducted on the winning bidder based on the prescribed procedures? F. CONTRACT AWARD 42. For community bidding, was the Resolution/Notice of Award prepared and signed by the C/BSPMC Chairperson? 43. Was the contract/Purchase Order prepared in accordance with required procedures? 43. Was the contract signed by both the C/BSPMC Chairperson and the winning bidder ? 44. For community bidding, did the performance security conform to requirements ? 45. Where applicable, was the required NoObjection-Letter issued ? G. CONTRACT IMPLEMENTATION 46. Were the goods or works delivered or completed per contract ? 47. Were the goods/works inspected by the MIT ? 48. Were appropriate receipts issued by the supplier/contractor 49. Was a Certificate of Acceptance issued ? FOR SMALL VALUE PROCUREMENTS/PAKYAW CONTRACTS 50. Were the procedures for the procurement of goods/works observed per prescribed procedures ?

Compliance Monitoring Yes No

Remarks (Explain the reason for noncompliance)

Section B. Summary of Issues/Concerns and Red Flag Findings for this Procurement Issues/Concerns/Red Flag Findings

Prepared by:

Responsible Person

Reviewed by:

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Action Taken/Proposed Action to Address Issues/Red Flags

Approved by:

_____________________ Deputy Area Coordinator (Name and Signature) Date: ___________________

________________________ C/BSPMC Chairperson (Name and Signature)

___________________ Area Coordinator (Name and Signature)

* Barangay’s certification need not have AC notation

Note: DAC to fill up this portion in the copy of report for the region and include further observations.

Name & Signature of DAC

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CBPM FormF-3

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT COMMUNITY PROCUREMENT PERFORMANCE MONITORING REPORT For the Period of :___________________ Name of Community Project : ________________________________ Date Prepared: ________ Barangay : __________________ Municipality : __________________ Province : __________________ Total Contract Cost: _______________ Project Duration: _______________ Project Start Date: ___________________ Proposed Project Completion Date:______________ Type of Procurement: ( ) Goods ( ) Works ( ) Services ( ) Others Note: Please attach pictures of actual goods or work site accomplishment. For Consolidated Report to be submitted to Regional Office, the DAC shall use the same form. Financial Accomplishment Physical Accomplishment Schedule Accomplishment (in calendar days) Package Description Procurement Total Amount % of Cumulative % of % of Cumulative % Total No. of Days % of Cumulative Method Contract Spent for Total Amount Planned* Actual* Accomp Slippage Contract Spent for Total Number of Amount this Period (A/B) Spent lishment Duration this Period (C/D) Days Spent A B C D

*For Works Contracts, please refer to Infrastructure Manual for Computation of Planned and Actual Physical Accomplishments

III. Major Issues Encountered: ___________________________________________ ___________________________________________ ___________________________________________ Prepared by: ___________________________ Deputy Area Coordinator (Name and Signature)

IV. Recommendations: _____________________________________ ___________________________________ _____________________________________

Reviewed & Checked by: ___________________________ Area Coordinator (Name and Signature)

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Approved by: _____________________________ C/BSPMC Chair (Name and Signature)

Noted by: ____________________________________ Regional Community Procurement Officer

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CBPM FormF-4

KALAHI-CIDSS NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT CONSOLIDATED PROCUREMENT COMPLIANCE AND PERFORMANCE MONITORING REPORT For the Period :___________________ Regional Office : ________________________________ Date Prepared: ________ Number of Barangays Covered : __________ Number of Municipalities Covered: __________ Number of Provinces Covered: _________ Total Project Cost for all Sub-Projects: __________________ Total Disbursements to Date:____________________

SECTION A. COMPLIANCE MONITORING Procurement Activity 1. Availability of Community Procurement Plan 2. Conduct of Pre-Procurement Conference 3. Completeness of Bid/Quotation Documents 4. Existence of PT, BAC, C/BSPMC, TWG 5. Posting of Invitation to Bid/Request for Quotation 6. Conduct of Site Inspection 7. Submitted Bids/Quotations in Secure Bid Box 8. Bid/Quotations Opening Done Immediately After Deadline for Submission 9. Review of all Eligibility Requirements of Bidders for Local Bidding 10. Conformity of Bid Securities for Local Bidding 11. Bid/Quotation Evaluation Procedures Observed 12. Preparation of Abstract of Bids/Quotations 13. Award Made to Lowest Calculated and

Total Number of Barangays

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Number of Complying Barangays

Procedural Compliance Number of NonReasons for NonNumber of Complying Compliance Barangays with Barangays Red Flag Findings

Red Flag Findings

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Procurement Activity Responsive Bid/Quotation 14. Postqualification Conducted 15. Conformity of Performance Security 16. No-Objection Letters Issued 17. Goods/Works Delivered 18. Certificates of Acceptance Issued

Total Number of Barangays

Number of Complying Barangays

SECTION B. PERFORMANCE MONITORING Procurement Method Total Number of Total Number of Barangays Involved Contracts Awarded

Number of NonComplying Barangays

Total Amount of Contracts Awarded

Procedural Compliance Reasons for NonCompliance

% of Financial Accomplishment Actual Cumulative

Number of Barangays with Red Flag Findings

% of Physical Accomplishment Actual Cumulative

Red Flag Findings

% of Schedule Accomplishment Actual Cumulative

Local Bidding Goods Works Local Shopping Goods Works Local Negotiation Goods Works Small Value Off-the Shelf Goods Short Term Services Small Works Pakyaw Contracts GRAND TOTAL Prepared by: ___________________________ Regional Community Procurement Officer (Name and Signature)

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Approved by: _____________________________ Regional Director (Name and Signature)

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