NCDDP Revised CBPM Volume One Oct 2015 Version

l
Department of Social Welfare and Development

KALAHI-CIDSS
NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT
(NCDDP)
COMMUNITY BASED
PROCUREMENT
MANUAL
VOLUME ONE
(October 2015)
NATIONAL
COMMUNITY
DRIVEN
Table of Contents
DEVELOPMENT
PROGRAM
( NCDDP
)
ii
ACRONYMS, ABBREVIATIONS...............................................................VI
CHAPTER ONE: GENERAL PROVISIONS FOR COMMUNITY BASED
PROCUREMENT.....................................................................................1
1.1.
1.2.
1.3.
1.4.
1.5.
PURPOSE....................................................................................................................... 2
SCOPE.......................................................................................................................... 2
COVERAGE..................................................................................................................... 3
APPLICATION.................................................................................................................. 3
PRINCIPLES IN COMMUNITY BASED PROCUREMENT.................................................................3
CHAPTER TWO: PROCUREMENT ORGANIZATION AND CAPACITY

BUILDING
5
2.1. ORGANIZATIONAL STRUCTURE AT THE COMMUNITY LEVEL.......................................................6
2.2. COMMUNITY/BARANGAY SUB-PROJECT MANAGEMENT COMMITTEE (C/BSPMC)...........................6
2.3. BIDS AND AWARDS COMMITTEE (BAC)...............................................................................6
2.4. PROCUREMENT TEAM....................................................................................................... 7
2.5. TECHNICAL WORKING GROUP............................................................................................ 7
2.6. OBSERVERS................................................................................................................... 8
2.7. FUNCTIONS AND RESPONSIBILITIES.....................................................................................8
2.7.1. C/BSPMC.............................................................................................................. 8
2.7.2. Bids and Awards Committee..............................................................................8
2.7.3. Procurement Team............................................................................................. 9
2.7.4 Technical Working Group......................................................................................9
2.7.5. Observers.......................................................................................................... 9
2.7.6. Bidders.............................................................................................................. 10
2.8. OTHER PROCUREMENT STAKEHOLDERS..............................................................................10
2.8.1. Community Level............................................................................................... 10
2.8.2. Municipal and Regional Level............................................................................11
2.9. CAPACITY BUILDING FOR COMMUNITY BASED PROCUREMENT GROUPS...................................12
2.9.1. General Orientation on Community Based Procurement...................................12
2.9.2. Skills Training..................................................................................................... 12
2.9.3. Job Coaching and Mentoring..............................................................................12
CHAPTER THREE: PROCUREMENT PLANNING FOR COMMUNITY BASED

PROCUREMENTS.................................................................................14
3.1. COMMUNITY EMPOWERMENT ACTIVITY CYCLE (CEAC).......................................................15
3.2. PROCUREMENT PLANNING............................................................................................... 16
Figure 3. Community Procurement Planning Process...................................................16
3.3. PREPARATION OF THE PROGRAM OF WORKS.......................................................................16
3.3.1. Technical Specifications, Scope of Work and Terms of Reference......................17
3.4. PREPARATION OF THE INITIAL COMMUNITY PROCUREMENT PLAN..............................................18
3.4.1. Market Survey for Goods, Works and Consulting Services.................................19
3.4.2. Preparation of Procurement Packages...............................................................19
3.4.2.2. Splitting of Contracts................................................................................................. 22
3.4.3. Identification of Appropriate Procurement Methods...........................................23

3.4.4. Estimated Costs and Schedules of Fund Release...............................................23
3.4.5. Project Implementation Schedule......................................................................23
3.5. FINALIZATION OF THE COMMUNITY PROCUREMENT PLAN.......................................................24
CHAPTER FOUR: COMMUNITY BASED PROCUREMENT METHODS AND

SUB-PROJECTS....................................................................................25
4.1. COMMUNITY PARTICIPATION IN PROCUREMENT.....................................................................26
4.2. COMMUNITY BASED PROCUREMENT METHODS....................................................................26
4.3. THRESHOLDS FOR THE USE OF COMMUNITY-BASED PROCUREMENT METHODS AND PRIOR REVIEW
REQUIREMENTS................................................................................................................... 27
4.4. POSSIBLE TYPES OF COMMUNITY PROJECTS REQUIRING PROCUREMENT....................................29

4.4.1. Construction, Repair, Improvement, Upgrading of Small Scale Infrastructure....29
4.4.2. Environmental Protection and Conservation......................................................30
4.4.3. Enterprise or Common Service Facilities..........................................................30
4.4.4. Disaster Recovery Operations...........................................................................30
4.4.5. Consulting services.......................................................................................... 31
4.4.6. Negative List...................................................................................................... 31
CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES. . .32

5.1. COMMUNITY SHOPPING FOR GOODS AND WORKS................................................................33
5.1.1. Identification of Items for Community Shopping................................................33
5.1.2. Preparation of the Request for Quotations (RFQ)...............................................33
5.1.3. Conduct of Procurement Preparation Meeting...................................................34
5.1.4. Posting of Notice of Request for Quotation (NRQ)..............................................34
5.1.5. Issuance of Request for Quotation.....................................................................35
5.1.6. Conduct of Contractors Conference for Community Shopping for Works........36
5.1.7. Submission and Receipt of Quotations..............................................................36
5.1.8. Opening and Evaluation of Quotations..............................................................37
5.1.9. Prior Review of Contract....................................................................................39
5.1.10. Contract Award................................................................................................ 40
5.1.11. Contract Implementation.................................................................................41
5.2. COMMUNITY DIRECT CONTRACTING FOR GOODS AND WORKS................................................41
5.2.1. Identification of Items for Community Direct Contracting..................................44
5.2.2. Preparation of the Request for Quotation (RFQ)................................................44
5.2.4.
Posting of Notice of Request for Quotation (NRQ)..........................................45
5.2.5. Issuance of Request for Quotation.....................................................................45
5.2.6. Submission and Receipt of Quotation................................................................46
5.2.7. Opening and Evaluation of Quotation................................................................47
5.2.9. Contract Award.................................................................................................. 48
5.3. COMMUNITY REPEAT ORDER FOR GOODS...........................................................................49
5.3.1. Identification of Items for Community Repeat Order.........................................50
5.3.3. Conduct of Canvass........................................................................................... 50
5.3.4. Contract Approval, Signing and Implementation...............................................50
5.4. SMALL VALUE PROCUREMENT FOR GOODS.........................................................................51
5.4.1. Identification of Items for Small Value Procurement..........................................51
5.4.2. Survey of Available Suppliers............................................................................51
5.4.3. Direct Purchase of Items....................................................................................51
5.4.4. Inspection of Goods/Services.............................................................................52
5.5. PAKYAW CONTRACT FOR WORKS......................................................................................52
5.5.1. Identification of Items Covered by Pakyaw Contracts........................................54
5.5.2. Conduct of Negotiations on Pakyaw Contracts..................................................54
5.5.3. Contract Award.................................................................................................. 54
5.5.4. Contract Implementation...................................................................................55
5.6. COMMUNITY BIDDING FOR GOODS AND WORKS..................................................................55
5.6.1. Identification of Items for Bidding......................................................................56
5.6.2. Preparation/Revision of the Bidding Documents................................................56
5.6.4 Posting/Advertisement of Invitation to Bid..........................................................57
5.6.5. Issuance of Bidding Documents.........................................................................58
5.6.6. Conduct of Pre-Bid Conference..........................................................................59
5.6.6.1 Supplemental/Bid Bulletins......................................................................................... 60
5.6.6.2. Site Visit or Inspection............................................................................................... 60
5.6.7. Preparation, Submission and Receipt of Bids.....................................................61

5.6.7.1. Eligibility.................................................................................................................. 61
5.6.7.2 Technical Proposal...................................................................................................... 63

5.6.7.3. Financial Proposal...................................................................................................... 65
5.6.8. Bid Opening and Evaluation...............................................................................66

5.6.8.1. Preliminary Review of Eligibility, Technical and Financial Proposals............................66
5.6.8.2. Bid Security............................................................................................................... 67
Forms and Corresponding Amounts of Bid Security.....................................................68

5.6.8.3. Detailed Evaluation of Bid.......................................................................................... 69
5.6.8.4. Abstract of Bids......................................................................................................... 71
5.6.9. Post-qualification............................................................................................... 71
5.6.10. Prior Review of Contract..................................................................................73
5.6.11. Contract Award................................................................................................ 73
5.6.11.1. Contract Approval and Issuance of Notice of Award.................................................74
5.6.11.2. Contract Signing and Posting of Performance Security.............................................74
Forms and Corresponding Amounts of Performance Security......................................74

5.7. CONSULTANT QUALIFICATION SELECTION/SINGLE SOURCE SELECTION/INDIVIDUAL CONSULTANT
SELECTION FOR CONSULTING SERVICES....................................................................................76
5.7.1. Ad-Hoc Bids and Awards Committee (BAC) for Consulting Services at the
Community level......................................................................................................... 77
5.7.2. Preparation of Request for Proposal/Quotation..................................................78
For Consulting Firms.................................................................................................... 78
For Individual Consultants or Service Providers...........................................................78
5.7.3. Conduct of Procurement Preparation Meeting.................................................78
5.7.4. Posting of Notice of Request for Proposal (NRFP)...............................................79
5.7.5. Issuance of Request for Proposal.......................................................................79
5.7.6. Submission, Receipt and Evaluation of Proposals for Consulting Firms..............79
CONTENTS OF THE TECHNICAL PROPOSAL FOR QUALIFICATION SELECTION...............79
CONTENTS OF THE FINANCIAL PROPOSAL FOR QUALIFICATION SELECTION................80
5.7.8. Contract Award and Contract Signing................................................................81
Table 2. Matrix of Procedures for Community Shopping for Goods with Functions of
Various Procurement Personnel...................................................................................82
Table 3. Matrix of Procedures for Community Shopping for Works with Functions of
Table 4. Matrix of Procedures for Community Direct Contracting for Goods with
Functions of Various Procurement Personnel...............................................................86
Table 5. Matrix of Procedures for Community Direct Contracting for Works with
Functions of Various Procurement Personnel...............................................................88
Table 6. Matrix of Procedures for Pakyaw Contracts for Works with Functions of Various
Procurement Personnel............................................................................................... 90
Table 7. Matrix of Procedures for Community Bidding for Goods with Functions of
Table 8. Matrix of Procedures for Community Bidding for Works with Functions of
Table 9. Matrix of Procedures for Qualification/Single Source/Individual Consultant
Selection for Consulting Services with Functions of Various Procurement Personnel...96
CHAPTER SIX: CONTRACT IMPLEMENTATION FOR COMMUNITY BASED GOODS AND
SERVICES........................................................................................................................ 98
6.1. WARRANTY.................................................................................................................. 99
6.2. SUSPENSION OF DELIVERY............................................................................................100
6.3. DELAYS IN DELIVERY AND LIQUIDATED DAMAGES...............................................................101
6.3.1. Liquidated Damages........................................................................................101
6.4. INCIDENTAL SERVICES.................................................................................................. 102
6.5. SPARE PARTS AND MAINTENANCE...................................................................................103
6.6. PRICES...................................................................................................................... 103
6.7. PAYMENTS................................................................................................................. 103
6.8. SUBCONTRACTS AND ASSIGNMENTS................................................................................103
6.9. STANDARDS............................................................................................................... 104
6.10. INSPECTION AND TESTS.............................................................................................. 104
6.11. FORCE MAJEURE....................................................................................................... 105
6.12. CONTRACT TERMINATION.......................................................................................... 105

6.12.1. Termination for Default..................................................................................105
6.12.2. Termination for Insolvency.............................................................................106
6.12.3. Termination for Convenience.........................................................................106
6.12.4. Procedures for Termination of Contracts:.......................................................107
6.13. BLACKLISTING.......................................................................................................... 108
CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY

BASED WORKS..................................................................................109
7.1. SUBCONTRACTING....................................................................................................... 110
7.2. CONTRACTORS PROGRAM OF WORKS.............................................................................111
7.3. INSPECTION AND TESTS................................................................................................111
7.4. DAYWORKS................................................................................................................ 112
7.5. MEASUREMENT OF WORKS............................................................................................ 112
7.6. CONTRACTORS OBLIGATIONS AND RESPONSIBILITIES.........................................................113
7.7. CONTRACT PRICE AND PAYMENT....................................................................................114
7.7.1. Advance Payment............................................................................................ 114
7.7.2. Progress Payment............................................................................................ 114
7.7.3. Retention Money.............................................................................................. 114
7.7.4. Final Payment.................................................................................................. 114
7.8. VARIATION ORDERS..................................................................................................... 114
7.9. SUSPENSION OF WORK................................................................................................117
7.10. CONTRACT TIME EXTENSION........................................................................................ 118
7.11. DELAYS IN WORK COMPLETION AND LIQUIDATED DAMAGES...............................................119
7.11.1. Liquidated Damages......................................................................................120
7.12. CONTRACT TERMINATION............................................................................................120
7.12.1. Termination of Contract for Default...............................................................120
7.12.2. Termination of Contract for Unlawful Acts......................................................121
7.12.3. Termination of Contract by Reason of Insolvency..........................................121
7.12.4. Termination of Contract at the Instance of the Contractor.............................121
7.12.5. Termination of Contract for Convenience.......................................................122
7.12.6. Termination of Contract due to Force Majeure:..............................................122
7.12.7. Payment........................................................................................................ 122
7.13. CONTRACT COMPLETION............................................................................................. 122
7.14. WARRANTY AND DEFECTS LIABILITY PERIOD...................................................................123
7.14.1. Warranty Period............................................................................................. 123
7.15. SETTLEMENT OF DISPUTES:......................................................................................... 124
CHAPTER EIGHT: COMMUNITY BASED..............................................125

PROCUREMENT MONITORING............................................................125
8.1.
8.2.
8.3.
8.4.
8.5.
8.6.
IMPORTANCE OF COMMUNITY PROCUREMENT MONITORING..................................................126

COMMUNITY PROCUREMENT COMPLIANCE MONITORING......................................................126
PROJECT BILLBOARD.................................................................................................... 128
COMMUNITY PROCUREMENT PERFORMANCE MONITORING....................................................128
INTEGRATED PROCUREMENT COMPLIANCE AND PERFORMANCE MONITORING REPORT................129
PROCUREMENT POST REVIEW ASSESSMENT....................................................................129
GLOSSARY OF TERMS.......................................................................130
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES..........................138
COMMUNITY SHOPPING.................................................................................................139
COMMUNITY DIRECT CONTRACTING..............................................................................140
COMMUNITY BIDDING.................................................................................................... 141
ACRONYMS, ABBREVIATIONS
ACT
BA
BAC
BDC
C/BSPMC
CBPM
CD
CDD
Area Coordinating Team

Barangay Assembly
Bids and Awards Committee
Barangay Development Council
Community/Barangay Sub-Project Management Committee
Community Based Procurement Manual
Calendar Days
Community Driven Development
CEAC
CENRO
CFA
CFMS
CIO
COA
CPO
CPP
CSO
DSWD
DA
DENR
DEPED
DOH
DPWH
DTI
DV
ECPP
GOP
GPRA
ITB
IPCPMR
IRR
IB
KALAHI- CIDSS
KC-NCDDP
LCB
LCC
LCCQ
LCRB
LCRQ
LGC
LGU
MAO
ME
MENRO
MFA
MIAC
MIBF
MIT
NDRRMC
NFCC
NOA
NOL
NPMO
NPMT
NRM
NRQ
NTP
OR
PCAB
PCMR
PDNA
Community Empowerment Activity Cycle

Community Environment and Natural Resource Management Officer
Community Force Account
Community Financial Management System
Community Infrastructure Officer
Commission on Audit
Community Procurement Officer
Community Procurement Plan
Civil Society Organization
Department of Social Welfare and Development
Department of Agriculture
Department of Environment and Natural Resources
Department of Education
Department of Health
Department of Public Works and Highways
Department of Trade and Industry
Disbursement Vouchers
Emergency Community Procurement Plan
Government of the Philippines
Government Procurement Reform Act
Invitation to Bid
Integrated Procurement Compliance and Performance Monitoring
Report
Implementing Rules and Regulations
Instruction to Bidders
Kapit-bisig Laban sa Kahirapan-Comprehensive and Integrated
Delivery of Social Services
KALAHI-CIDDS National Community Driven Development Program
Lowest Calculated Bid
Local Counterpart Contribution
Lowest Calculated and Complying Quotation
Lowest Calculated and Responsive Bid
Lowest Calculated and Responsive Quotation
Local Government Code
Local Government Unit
Municipal Agricultural Officer
Municipal Engineer
Municipal Environmental and Natural Resource Office
Municipal Financial Analyst
Municipal Inter Agency Committee
Municipal Inter-Barangay Forum
Monitoring and Inspection Team
National Disaster Rick Reduction Management Council
Net Financial Contracting Capacity
Notice of Award
No Objection Letter
National Project Management Office
National Project Management Team
Natural Resources Management
Notice of Request for Quotation
Notice to Proceed
Official Receipt
Philippine Contractors Accreditation Board
Procurement Compliance Monitoring Report
Post-Disaster Needs Assessment
7
Phil-GEPS
PIAC
PIT
PNS
PO
POW
PPMR
PPT
PS
PT
RCIS
RFQ
ROW
RPM
RPMO
RPMT
RPO
RTA
SEC
SOW
SPA
TA
TAF
TF
TWG
WB
Philippine Government Electronic Procurement System

Provincial Inter Agency Committee
Project Implementation Team
Philippine National Standards
Purchase Order
Program of Works
Procurement Performance Monitoring Report
Project Preparation Team
Project Supervisor
Procurement Team
Regional Community Infrastructure Specialist
Request for Quotation
Right of Way
Regional Program Manager
Regional Program Management Office
Regional Program Management Team
Regional Procurement Officer
Resolution to Award
Securities and Exchange Commission
Scope of Work
Special Power of Attorney
Technical Assistance
Technical Assistance Fund
Technical Facilitator
Technical Working Group
World Bank
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 Based
Procurement
1.1. Purpose
This Community Based Procurement Manual (CBPM) for the KALAHI-CIDSS 1 National
Community Driven Development Program (KC-NCDDP) is developed for the purpose of setting
guidelines for community participation in procurement based on the experience gained from the
first KALAHI-CIDDS project. It aims to provide community based officials and volunteers
implementing planning and investment grants under the project with a clear and concise set of
procedures to follow in its procurement activities. These procedures incorporate the relevant
provisions of the Government Procurement Reform Act (RA 9184) and its implementing rules
and regulations, the Local Government Code (LGC), and the procurement guidelines of
international financing institutions involved in the project, among them, the Asian Development
Bank (ADB) and the World Bank (WB). It also discusses important issues that may confront
community based officials in the different stages of procurement.
The Government Procurement Reform Act (GPRA) states that for foreign funded procurements,
its Implementing Rules and Regulations (IRR) shall apply, unless a treaty or international or
executive agreement expressly provides for the use of the procurement procedures and
guidelines of the foreign governments or international financing institutions. However, in case of
conflict between the terms of the treaty or international or executive agreement and this IRR,
the former shall prevail. (Section 4.2. IRR-A)
Community driven development (CDD) is an approach that gives control over planning
decisions and investment resources for development projects to community groups based on
the principles of local empowerment, participatory governance, demand-responsiveness,
administrative autonomy, greater downward accountability and enhanced local capacity.
Procurement is one of the most critical activities in community project planning and
implementation as it empowers communities to establish needs, identify activities to address
such needs, and to take control of decision making in the judicious use and disbursement of
limited resources. It can also help stir up the local economy through the purchase of goods and
services from local entrepreneurs and the employment of local labor. It is, therefore, important
to provide a standardized set of procurement procedures in accordance with the loan
agreements to prevent confusion and ensure transparency among community officials and other
stakeholders. Community based procurement provides equal opportunity for men and women to
take part in all procurement activities.
The CBPM is a harmonized version of the procurement and contract implementation
procedures under the GPRA as well as the ADB and WB procedures on community participation
in procurement based on the experience gained from the first KC project. This edition clarifies
many gray areas that were not discussed in the previous manual and includes strengthened
provisions on contract implementation and procurement monitoring.
1.2. Scope
The CBPM shall apply to all community based procurement activities under the KC-NCDDP
based on the approved Community Procurement Plan (CPP) regardless of source of funds. It
shall not cover the acquisition of right-of-way site or location for infrastructure projects, leasing
1 KALAHI-CIDSS stands for Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social
Services.
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
Activity Cycle (CEAC) stages of social preparation; project identification, preparation, selection
and planning; and implementation of sub-projects.
1.4. Application
The procurement procedures provided in this manual shall apply to the following:
1. Goods and services This refers to all items, supplies, materials, and general support services
which may be needed in undertaking the project related activities or in the operations of the
Community/Barangay Sub-Project Management Committee (C/BSPMC). This includes, among
others, equipment (transport, production, post production, processing and storage), furniture,
office supplies, construction materials, agricultural or aquacultural inputs, seedlings or trees,
hand tools. It also refers to 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. Works or Infrastructure Projects This refers to undertakings to construct, improve, upgrade,
rehabilitate, demolish, repair, restore, or maintain small scale infrastructure and all types of
physical works such as construction, improvement, upgrading of barangay roads and bridges,
buildings, classrooms, barangay health stations, day care centers, communal irrigation, flood
control and drainage, water supply, sanitation, sewerage, solid waste, water shed protection and
other natural resource management systems, shore and slope protection, energy/power and
electrification and other common service facilities, as well as physical labor to complete such
projects.
3. Consulting ServicesThis refers to services provided by external technical service providers2
or experts that are beyond the capacity of the C/BSPMC or Local Government Unit (LGU) staff to
undertake such as but not limited to feasibility studies; engineering and architectural design;
construction supervision; capacity building; and, special studies, among others.
1.5. Principles in Community Based

Procurement
2 Service providers referred to in these guidelines pertain to suppliers, contractors and
consultants.
Community based procurement under the KC-NCDDP shall be governed by the following
principles:
1. Fairness (Fair dealing) - it should provide fair and equal opportunities to all competing bidders
ensuring fair grounds for competition where no single bidder influences the outcome of the
process. Competition should urge bidders to offer more beneficial terms to the community.
Service providers should be treated fairly and without unfair discrimination, including protection
of commercial confidentiality where required.
2. Effectiveness the processes must be simple and streamlined to encourage communities to
plan and implement sub-projects that will redound to their benefit rather than creating layers of
bureaucratic red tape that will delay service delivery. Procurement should also be carried out in
the most cost effective manner as possible.
3. Economy it should ensure that communities obtain the optimal benefit from projects through
processes that promote value for money approaches. Thus, award of contracts shall be based
on the Lowest Calculated and Responsive Bid/Quotation for community bidding and bids or
quotations that are most advantageous to the community. The communitys ownership of the
sub-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 important decisions 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. Participating communities which violate the prescribed procurement policies, methods
and procedures are liable for sanctions and will be penalized. Procurement that does not follow
guidelines will be disallowed and grant funds used will be returned to the KC-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
2.1. Organizational Structure at the
Community Level
2.2 Barangay Sub-Project Management
Committee (C/BSPMC)
2.3. Bids and Awards Committee (BAC)
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
2.1. Organizational Structure at the

Community Level
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. Community/Barangay Sub-Project

Management Committee (C/BSPMC)
The Community/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 (PPT) Committee
3. One member to be elected from the MIT and PIT by the C/BSPMC Executive Committees3 .
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 members constitutes a quorum 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 or minutes
of meetings duly signed by at least a majority 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, elected by the
Barangay Assembly (BA) during the 5 th Barangay Assembly after the Municipal InterBarangay Forum for PRA. 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 on the 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 Technical Facilitator
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
3 The BSPMC executive committee is composed of the BSPMC chairperson and heads of teams
under the BSPMC as shown in Figure 1.
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, Technical Facilitator, 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 of observers does not
invalidate the 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. Communities are encouraged to adapt 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 Community/Barangay Sub-Project Management Committee (C/BSPMC) has the
following functions and responsibilities:
i.
ii.
iii.
iv.
v.
vi.
vii.
Acts for and in behalf of the barangay as Procuring Entity;

Ensures that the procurement procedures and requirements are in
accordance with the CBPM;
Acts on the recommendations of the BAC and approves or disapproves the
award of contracts and purchase orders;
Reviews and signs Resolution to Award (RTA)
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;
Issues Notice of Award (NOA) and Notice to Proceed (NTP)
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.
ii.
iii.
iv.
v.
vi.
vii.
viii.
Advertises and /or posts the invitation to bid;

Conducts pre-procurement and pre-bid conferences;
Determines eligibility of prospective bidders;
Receives bids;
Conducts the evaluation of bids with assistance of the TWG;
Undertakes the post-qualification proceedings;
Recommends the award of contract to C/BSPMC Chairperson; and
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 quotation forms and acts as canvassers by delivering quotation 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 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:
9
i.
ii.
iii.
Observes and assesses the extent of compliance with the substantive and
procedural requirements of this manual;
Where there are findings of substantive or procedural irregularities (red flags) in
the procurement at hand, bring this to the attention of the Technical Facilitator (TF)
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;
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.
ii.
iii.
iv.
Taken steps to carefully examine all of the bidding documents;

Acknowledged all conditions, local or otherwise, affecting the implementation of
the contract;
Made an estimate of the facilities available and necessary requirements for the
contract to be bid, if any; and
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 Bookkeeperresponsible 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) - The MIT and Storekeeper (Bodegero)
are responsible in signing for inspection and receiving the goods/materials as indicated
in the approved P.O. during delivery period. They will sign in the approved P.O if the
delivered items are acceptable or according to the specifications as indicated. They are
also in charge of 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 Program Management Team (RPMT), National
10
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 Empowerment 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 CEF
may also assist the PTs during the first issuance of request for quotation or Instruction to
Bidders (IB) 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. Technical Facilitator (TF) 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
prebid conference and the bid opening as a 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 job-training and
coaching, attending the pre-bid conference and bid opening as observer and providing
inputs on the preparation of technical specifications based on the program of works
(POW) and plans, consolidating all action taken regarding findings of red flags and
abnormalities on procurement, and in ensuring that subproject implementation and
procurement activities are coordinated.
2.8.2.5. Regional Program 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.
11
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 Program 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 Program
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 the Sub-Regional Program 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 subproject 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 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
12
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) 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, post-qualification. The Technical Facilitator (TF)
provides technical assistance to the community volunteers relative to matters relating to
procurement and contract management with assistance from the Community Procurement
Officer (CPO), Regional Procurement Officer (RPO) and the Regional Community
Infrastructure Specialist (RCIS) who also provides coaching and on-the-job training.
13
CHAPTER THREE: PROCUREMENT

PLANNING FOR COMMUNITY BASED
PROCUREMENTS
3.1.
Community Empowerment Activity
Cycle (CEAC)
3.2.
Procurement Planning
3.3.
Preparation of the Program of Works
3.4.
Preparation of the Initial Community
Procurement Plan
3.5.
Finalization of the Community
Procurement Plan
14
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; Community Planning and Project Proposal Development, Community-Managed
Implementation and Organization Formation and Development and Community Monitoring.
Figure 2 shows where the procurement related activities occur under this process.
15
Figure 2. Procurement Related Activities under the CEAC Process

Stage 1:
Social
Preparation
Stage 4:
Community
Monitoring
COMMUNITY EMPOWERMENT
ACTIVITY CYCLE
Actual Procurement
Implementation
Community Volunteers
Training on Procurement
and Finance
Inventories of Available
Suppliers/Contractors/Service
Providers
Stage 3:
Communitymanaged
Implementation
and Organization
Formation and
Stage 2:
Community
Planning and
Survey of Prevailing
Market
Project
Proposal
Rate and Labor Rate
Development
Preparation of Initial CPP
Formation of BSPMC,
BAC and PT members
Review and
Finalization of CPP
During the social preparation stage, the Project Preparation Team (PPT) with the assistance of
the TF and the CEF shall conduct surveys of the available suppliers, contractors, service
providers, laborers, pakyaw groups and the prevailing market rate of hardware
materials/equipment/services within the locality. (using CBPM Forms A-2 and A-3) The survey
result shall be the basis for cost estimates and CPP preparation during the Community Planning
and Project Proposal Development Stage. If the Barangay is prioritized for KC-NCDDP funding
in the MIBF-PRA, the Barangay Assembly (BA) shall elect BSPMC, BAC and PT members. This
stage is called Community-managed implementation and Organization Formation and
Development Stage which also includes the review and finalization of CPP, Community
Volunteers Training for Procurement and Finance and actual Procurement Implementation.
3.2. Procurement Planning

Procurement planning is important, as it enables the C/BSPMC to effectively manage and track
procurement activities that will ensure achievement of overall project goals and objectives. It
involves identifying the sub-project procurement requirements, writing the technical
specifications, determining the estimated budget, the schedule of milestone activities, and
determining the method of procurement to be used.
Procurement planning begins during the Community Planning and Project Proposal
Development Stage (CEAC Stage 2). It is in this stage that the initial Community Procurement
Plan (CPP) is prepared.
16
Figure 3 provides an overview of the procurement planning process for community based
subprojects.
Figure 3. Community Procurement Planning Process

Sub-project Identification,
Selection and Planning
Preparation of
Program of
Works
Preparation of
Initial CPP
Preparation of Technical Specifications

Terms of Reference
Final Program of Work
Items to be procured
Number of Packages
Procurement Methods
Estimated Costs and Schedule of Fund Release
Proposed Implementation Schedule
Sub-Project Implementation
Finalization of
CPP
Conduct of Actual
Procurement
3.3. Preparation of the Program of Works

The Program of Works (POW) provides detailed information about the proposed sub-project. It
includes, among others, the following: scope of work, terms of reference, technical plans,
summary of items of works, detailed estimates, quantity take-off, bill of materials, construction
schedule, manpower requirement and schedule, equipment requirement and schedule,
construction method and photographs of the proposed site.
The preparation of Environmental Social Management Plan (ESMP) is a prerequisite in the
preparation of the POW because it is here that the required cost and timeline for the conduct of
identified mitigating activities are captured. These cost and timeline shall be incorporated in the
POW.
For sub-projects requiring a feasibility study, the preparation of the POW shall proceed after the
viability of the proposed sub-project is established.
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. The finalization of
the technical specifications shall be conducted during the Community-managed
Implementation and Organization Formation and Development Stage (CEAC Stage 3).
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,
17
performance, environmental interface and design standard requirements to be met by the

goods to be manufactured or supplied, or the services to be rendered. The technical
specifications must include the testing parameters for goods, when such testing is required
in the contract.
i.
ii.
iii.
i.
Functional description defines the purposes for which the goods are to be utilized.
Taking water pumps as an example, the functional description may include the
discharge flow capacity, total pumping head generated, operational speed, overall
pump efficiency and other similar descriptions.
Performance description refers to the manner in which 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).
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, the
environment will help determine the kind and type of pump priming (centrifugal, twin
screw, progressive cavity, electric submersible, buffer tank) to be procured.
Design refers to the technical design or drawing of the goods being procured. A Design standard
is particularly useful in cases where the goods procured are specially manufactured for the
community.
In determining the technical specifications of the goods to be procured, the community must
consider the objectives of the project or the procurement at hand. This shall be the basis for
determining the standards that should be met by the goods in terms of function,
performance, environmental interface and/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), as specified 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 manufacturers 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 products 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/or performance requirements. Hence, a generic description of the product or service
shall be used.
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.
18
Most technical plans and specifications for KC-NCDDP sub-projects were adopted from the
standard plans of partner agencies implementing or mandated to perform such
programs/services. These include 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 specifications were modified to suit local conditions
and requirement of the project.
In setting the standards and technical specifications for works, the following should be
considered:
i.
ii.
Standards and technical specifications quoted in the bidding documents should

promote the broadest possible competition, while assuring the critical performance
or other requirements for the works under procurement;
As far as possible, the community should specify prevailing local standards for rural
infrastructure prescribed by local government units with which the equipment or
materials or workmanship should comply.
For short term services or consulting services, the Terms of Reference for the service
required should specify the:
i.
Type of required expertise
ii.
Qualifications
iii.
Scope of work
iv.
Expected output or deliverable
v.
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) (CBPM Form A-1).
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 procurable items will be included in the approved CPP. At this stage, the Project
Preparation Team (PPT) will prepare the initial community procurement plan.
The required information shall be based from the POW, Market Survey of Available Suppliers
and Contractors (CBPM Form A-2) and Survey of Available Laborers (CBPM Form A-3). These
information 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 PPT can visit the municipalitys commercial center to check for
possible suppliers and prevailing prices. The survey should also check the availability of
19
goods, equipment and construction materials with the appropriate PS mark that meet the
required technical specifications. Please refer to CBPM Form A-2 and CBPM Form A-3.
If there are no available suppliers within the municipality, the PPT 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 Program 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 PPT 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 Technical Facilitator (TF) 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,
including track record or work experiences which shall be duly validated. The TF 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 based onthe
inventory of suppliers obtained during the market survey. General works or specific
items of work can be performed or implemented by a single contractor. Labor
requirements can be done through pakyaw.
Case 1: Grouping of Requirements in a Category (Goods, Works, Services)
20
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
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
Sand
Boulders
50
40
30
20
cubic meter
cubic meter
cubic meter
cubic meter
Package 2: (for different types of materials available from one supplier)
Portland Cement
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 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
21
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 105
Item 200
Item 201
Item 311
Item 500
Item 505
Sub-grade Preparation
Aggregate Sub-Base
300 Linear Meter Item 311 (PCCP)
RCPC (0.61M diameter)
Grouted Riprap
Option 2: (two packages 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
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: Grouping 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
unit
1
1
1
unit
unit
Option 1: (one package since all items can be undertaken by one contractor)
22
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. 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. Contract splitting is usually done in order to avoid the NoObjection-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. Sanctions 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).
23
3.4.3. Identification of Appropriate Procurement Methods

Upon determination of the procurement packages, the appropriate methods of procurement
need to be identified. 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 sub-project cost and the cost for each package will be the
basis for determining the amount and percentage 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 subproject 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 procurement 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 the Project Preparation Team (PPT) to determine the activities and
corresponding package/s needed in order to accomplish the physical accomplishment
4 For emergency procurement in SPs due to disaster/calamity sub-projects, the first tranche may
be up to 90%.
24
required when requesting for the second tranche. For a 50-40-10 tranching, the required
physical accomplishment is 30%; for an 80-10-10 tranching, the required physical
accomplishment is 60; while for a 90-10 tranching, the required physical accomplishment is
70%. The total amount for funding of contract packages should be consistent with the
implementation schedule.
3.5. Finalization of the Community

Procurement Plan
The prepared initial CPP will be reviewed by the Municipal Inter Agency Committee (MIAC)
members during the MIAC Technical Review. All recommendations shall be incorporated in the
revised CPP to be presented in the 4th Barangay Assembly for approval. The approved initial
CPP will form part of the final Barangay Sub-project proposal in the Participatory Resource
Allocation at the Municipal level (MIBF-PRA).
If the proposal is prioritized for NCDDP support, the Barangay shall proceed with the conduct of
the 5th BA to elect the BSPMC Chairperson, Bids and Awards Committee (BAC), Procurement
Team (PT) and Finance committees. The Initial CPP will be reviewed by the Procurement Team
and the BAC. If applicable, revisions will be incorporated in the preparation of the Final CPP
prior to the approval of the BSPMC Chairperson. The final CCP will be used as a basis for the
preparation of cash flow requirements, release of funds and sub-project implementation.
25
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 CommunityBased Procurement Methods and Prior
Review Requirements
4.4. Possible Types of Community Projects
Requiring Procurement
26
4.1. Community Participation in

Procurement
The KC-NCDDP employs two project implementation mode. These mode 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 mode, implementation through By contract, 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 mode, 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 procurement5. It may also refer to the different methods of community based
procurement.
5 To be consistent with RA 9184 IRR and ADB and WB Guidelines
27
4.2. Community Based Procurement

Methods
The following are the generally acceptable methods of procurement for community based
subprojects:
1.
2.
3.
4.
5.
Community Shopping
Community Bidding
Community Direct Contracting
Repeat Order
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 Recruitment for Consulting Services
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 Program Management Office
(RPMO), the National Project Management Office (NPMO) and the Asian Development Bank
(ADB) and World Bank (WB). Contracts (Threshold amount should refer to the actual
amount to be awarded) 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
Community Bidding
- Works
- Goods
Community Shopping
Threshold
Amount
(P)
2.0 M & above
1.0 M & above
Prior/Post Review Requirement Threshold (P)

RPMO
NPMO
1.0 M but less than 2.0 M
2.0 M & above

2.0 M & above
28
- Works
Below 2.0 M
500,000 but less than 2.0 M
- Goods
Below 1.0 M
500,000 but less than 1.0 M
Community Direct Contracting

Direct Contracting
- Works
None
all
- Goods
None
all
Direct Contracting due to Two Failed Biddings
- Works
None
all
- Goods
None
all
Direct Contracting due to Emergency
- Works
None
2.0M and above
- Goods
None
2.0M and above
Community -to- Government Agency
Arrangements
- Works
None
1.0M
- Goods
None
1.0M
Direct Contracting due to Contract Termination
- Works
None
all
- Goods
None
all
Direct Contracting for Adjacent and Contiguous Projects
- Works
None
all
50% of the quantity

of each item in the
previous contract
all
Post
Post
all
2.0 M & above
Post
Post
Post
Post
Post
Post
Repeat Order
- Goods
Small Value Procurement

1.Off-the-Shelf (Goods)
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
6
materials)
Variation Order for Works
Contracts
Post
1.0 M and above
300,000.00
Up to 10% of
original contract
cost
No Threshold but
must satisfy the
requirements of
Section 7.8
Variation Order for

Community Participation
in Procurement (By
Administration) 7In case of
Savings Utilization
Aggregated contracts
All
All
2M to below 3.0 M
3.0M and
above
6 e.g. boulders, sand , gravel, lumber scaffoldings and others which are indigenous in the area
and can be provided by the community pakyaw group
7 Formerly called Community Force Account (CFA) in the previous version of this manual
29
In addition to the contracts above the specified thresholds, ADB/WB prior review requirement
shall cover the first three (3) contracts for the first year sub-projects in each of the two (2) 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 contracts8 refer to one or more on-going KC-NCDDP contracts with a single
contractor/supplier within the Province of KC-NCDDP area. Prior-review threshold for
aggregated contracts consider all contracts (regardless of fund source; MCC, PAMANA,
DFAT) with below 50% physical accomplishment for Works and all on-going contracts for
Goods within the Province. Completed Goods contracts and more than 50% completed
Works contracts will not be included in the threshold of aggregated contracts. 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 cost shall 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 by engaging technical services in the preparation and implementation of
subprojects. 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, 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:
8 Prior review for aggregated contracts aims to determine the capacity of contractor/supplier to
perform the works or deliver the goods/services required.
30
4.4.1. Construction, Repair, Improvement, Upgrading of Small Scale

Infrastructure
1.
2.
3.
4.
5.
6.
7.
Access/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

1.
2.
3.
4.
5.
Seawall
Slope protection
River control;
Drainage;
Waste/sanitation management facility
4.4.3. Enterprise or Common Service Facilities

1. Post-harvest facilities (equipment for production, harvest, drying, processing,
storage);
2. Processing facilities (meat, vegetables, etc.);
3. Corn or rice mill;
4. 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.
1. Repair of rural and local roads;
2. Backfill, reshaping and landscaping of areas affected by erosion;
3. Repair of riverbank protection systems and earth-fill dykes up to 5m height if
supervised by a qualified engineer;
4. Repair/reconstruction of small bridges (up to 15m);
9 Please refer to NCDDP Disaster Response Operations Manual
31
5. Construction of temporary bypass roads up to 500 m length, if not located in

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;
6. Repair / reconstruction of communal irrigation and water supply systems and of
facilities that have been completed with project funding;
7. Collection and removal of technogenic debris (building parts, mixed waste, timber)
as uprooted trees and plant 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;
8. 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);
9. 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.
10. Construction/reconstruction of bunk houses or damaged homes of the most affected
households.
11. 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

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
special technical proposals; supervision of critical sub-projects (i.e., bridges, water
system, road construction and rehabilitations) 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

Below is the negative list of activities and expenditures that are disallowed for financing
using the KC-NCDDP funds:
1. Weapons, chainsaws, explosives, pesticides, insecticides, herbicides, asbestos, and
other materials and equipment that are considered potentially dangerous;
2. Fishing boats and nets exceeding the prescribed size and weight set by the
Fisheries and Aquatic Resources Bureau;
3. Road Construction into protected areas;
4. Use of project funds for purchase of or compensation for land;
32
5. Micro-credit and livelihood activities which involve on lending of project funds;

6. Maintenance and operation of facilities provided with project funding;
7. Activities that have alternative prior sources of committed funding;
8. Recurrent government expenditures (e.g., salaries for government and LGU staff);
9. Construction or repair of government offices, meeting halls, and places of religious worship;
10. Political and religious activities, rallies, and materials;
11. Salaried activities that employ children below the age of 16 years old;
12. Activities that unfairly exploit women or men at any age, as defined by the national laws;
13. International travel; and
14. Consumption items or events.
CHAPTER FIVE: COMMUNITY BASED

PROCUREMENT PROCEDURES
5.1. Community Shopping for Goods and Works
5.2. Community Direct Contracting for Goods and
Works
5.3. Community Repeat Order for Goods
5.4. Small Value Procurement for Goods and Works
33
5.5. Pakyaw Contracts for Works

5.6. Community Bidding for Goods and Works
5.7. Qualification/Single Source or Individual
Consultant Selection for Consulting Services
5.8. 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 (3) 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 community procurement
procedure.
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.
34
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 Form)

Acknowledgement Receipt
Abstract of Quotations
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 Procurement Preparation Meeting

The procurement preparation meeting is the forum called by the BAC where all officials
involved in the 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 and confirms the
availability of funds for the contract.
For goods, the required documents for review include:
i. Technical Specifications;
ii. Cost estimates;
iii. Quotation Forms, and
35
iv. Notice of Request for Quotations

v. 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 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 quotation 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 procurement preparation meeting 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 procurement preparation meeting 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).
The Notice of Request for Quotation (CBPM Form B-1 for goods and B-2 for works)
should contain the following information:
i.
ii.
iii.
iv.
v.
Brief description of the goods to be procured for goods or the type, size, major
items and other important or relevant features of the works for works;
The date, time and place for the deadline for the submission, receipt and
opening of quotations;
Delivery schedule for goods or contract duration for works;
The name, address of the designated contact person;
Such other necessary information deemed relevant by the BAC.
5.1.5. Issuance of Request for Quotation

For Goods:
The PT issues the Request for Quotation (RFQ) Form (CBPM Form B-3) to at least three (3)
suppliers in good standing. The CEF should accompany the members during the first
serving of the quotation 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
36
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 quotation form by signing the Acknowledgement Receipt (CBPM
Form B-5). Interested suppliers who were not issued RFQs may submit their respective
quotation 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 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 mayors permit/municipal license from the suppliers 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-NCDDP sub-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) (CBPM Form B-4) with the attached
specifications, drawings and bill of materials to at least three (3) licensed contractors.
The CEF 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 quotation
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)
Address of Barangay
5.1.6.
Conduct of Contractors Conference for Community
Shopping for Works
37
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 encouraged for all invited contractors for contracts above P 1M.
Conduct of conference for contracts below P1M is optional.
The ME and TF 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 as this will enable 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.
Are we allowed in KC-NCDDP Procurement to announce the Estimated Budget for the
Package (EBP)?
NO, because in KC-NCDDP, bidders should base their proposal in their evaluation of the
procurement at hand.
5.1.7. Submission and Receipt of Quotations

The prospective contractor shall fill up and submit the Request for Quotation in a sealed
envelope within the prescribed period for submission which is three (3) days after the
Contractors 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 RFQs 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 and shall not be accepted.
5.1.8. Opening and Evaluation of Quotations

5.1.8.1. Opening of Quotations
38
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: 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 to the
venue of the opening of quotations. The PT shall place the sealed quotations inside the
bid box located in the barangay hall (or designated venue). 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 (3) sealed quotations must 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. 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 quotation.
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 quotation by item or by package whether for delivery or by
pick up, specifies the date of delivery. The ACT through the TF shall bring the list of
prevailing local prices for purposes of comparison and reference. If a quotation 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 Quotation (CBPM Form B-6) 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
quotation. The C/BSPMC Chairperson shall review and approve the Abstract of
Quotations.
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
39
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 quotation. 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 a0 (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 equal footing to ensure fair and competitive bid
evaluation. For this purpose, all bidders shall be required to include the cost of all
taxes, such as, but not limited to, value added tax (VAT), income tax, local taxes, and
other fiscal levies and duties which shall be itemized in the quotation form and
reflected in the detailed estimates. Such bids, including said taxes, shall be the basis
for bid evaluation and comparison.
iv. Quoted prices in words, unit prices, and unit cost in the bill of quantities shall prevail
in case of discrepancy. In case of discrepancies between: (a) quoted prices in figures
and in words, the latter shall prevail; (b) total prices and unit prices, the latter shall
prevail; (c) unit cost in the 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
abovementioned requirements shall be ranked in the ascending order, to identify the
Lowest Calculated Quotation (LCQ).
The entire evaluation process for the evaluation of quotations must be completed in not
more than two (2) calendar days from the deadline for receipt of proposals. The BAC
should exert effort to complete the process even before the end of the 2-day period, as
this will expedite the procurement process.
If only one or two contractors quoted on all items and is/are considered responsive, the
BAC shall proceed with the evaluation.
An Abstract of Quotation (CBPM Form B-7) 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 quotation.
The C/BSPMC Chairperson shall review and approve the Abstract of Quotation.
40
If the contractor with the lowest calculated quotation 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 re-quotation or community direct
contracting.
For both goods and works, the PT prepares the minutes of the evaluation of quotations.
The TF shall ensure that the lowest calculated and responsive quotation is the one
indicated in the minutes of evaluation of quotations.
In the case of awards that are waived without acceptable/valid reasons, the
supplier/contractor shall be blacklisted in future KC-NCDDP procurements.
What to do if the Lowest Calculated and Responsive Bid or Quotation (LCRQ/B)
exceeded the Estimated Budget for the Package (EBP)?
1. The BAC with the assistance of the TWG shall evaluate if the excess amount is justifiable
and necessary for the completion of the contract;
2. The BAC and TWG shall determine if there are available fund from Procurement Savings
and or additional LCC from the LGU.
3. If YES, the BAC may recommend for the Award of Contract.
4. If NOT, the BAC shall declare a failure of procurement. The procurement at hand shall be
reviewed and the necessary revisions shall be made prior to the re-canvassing/bidding
activities.
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 Program Management Office (RPMO):
For Works contracts: more than P 500,000 and less than P 2.0 M
For Goods Contracts: more than P 500,000 and less than P 1.0 M
In the request for No-Objection-Letter (NOL), the PT shall attach photocopies of all
the contract documents, except for the Letter Request of the BSPMC for NOL which
should be submitted in its original form.
5.1.10. Contract Award

For Goods:
41
The PT shall prepare three (3) copies of the Purchase Order (PO) (CBPM Form B-8)
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
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
calculated price.
The PT delivers the NOA to the contractor who shall sign his/her conforme and
returns two (2) copies to the PT.
5.1.10.2. Contract Signing and Posting of Performance Security

Upon issuance of the NOA, the BAC shall schedule the signing of the contract
agreement between the winning contractor and BSPMC. The C/BSPMC Chairperson
signs the contract in original three (3) copies. The winning contractor shall sign the
contract, upon submission of his/her performance security within five (5) calendar
days from the receipt of the NOA. The PT forwards the contract with all its
attachments to the Bookkeeper for filing and safekeeping.
For Community Shopping for works, the contractor shall post the same form and
corresponding amount of performance security 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. A contract is
42
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.
The PT shall furnish copies of the approved 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 in order, they will accept the delivery receipt
and stamp it inspected and sign the PO. If the delivery is incomplete and does not
comply with the specifications, the goods should not be accepted.
The PO will be canceled if the supplier fails to start the delivery within 15 days. The
BSPMC shall proceed with the award of the contract to the succeeding responsive
supplier, otherwise, conduct re-canvass.
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 TF 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, TF 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 pro-forma 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:
43
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 Community-to-Government 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
(Community-to-Government 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 Similar 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 Emergencies shall 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 Community to Government Agency Arrangement may
be applied under the following conditions:
i.
The community shall provide sufficient justification indicating that entering into an Community-toGovernment 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.
44
Community-to-Government 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 Servicing Agency and other stakeholders, the schedules/timeline,
scope of works/deliverables and project costs as established in the sub-projects
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.
ii.
iii.
iv.
The original contract is the result of a Community Shopping, Direct Contracting or

Bidding;
The subject contract to be negotiated has similar or related scopes of work;
It is within the contracting capacity of the contractor;
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 Final 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.
45
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) 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 Municipal Engineer and the Technical Facilitator (TF)
that there is only one qualified supplier in the Municipality.
For Works:
i.
Notice of Request for Quotation (NRQ);
ii.
Request for Quotation (RFQ) Form;
iii.
Contract Agreement;
iv.
Technical Specifications;
v.
Drawings, if applicable;
vi.
Bill of Quantities;
vii.
Standard forms for community direct contracting for works;
viii.
Certification from the Municipal Engineer and the Technical Facilitator (TF)
that there is only one qualified contractor in the municipality or in the vicinity.

The BAC Chairperson shall call for a procurement preparation meeting to discuss all
aspects of the procurement at hand, among others:
i.
ii.
iii.
iv.
Technical Plans/Specifications;
Cost estimates/Bill of Quantities;
Quotation Forms, and
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 Technical Facilitator (TF) 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:
i.
Satisfactory performance in completed or on-going KC-NCDDP subprojects, and;
ii.
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 quotations forms. The PT will prepare the record of the
46
procurement preparation meeting 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- NCDDP designated billboard or bulletin board, offices of Municipal
Inter-Agency Committee (MIAC).
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 be procured or the type, size, major items, and
other important or relevant features of the works;
opening of quotations;
Delivery schedule for goods and contract duration for works;
5.2.5. Issuance of Request for Quotation

For Goods:
The PT issues the Request for Quotation (RFQ) (CBPM Form B-3) 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 Form and submit in a sealed envelope with the following,
written outside the sealed envelope:
REGISTERED BUSINESS NAME OF SUPPLIER
ADDRESS
Quotation for:_________________
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 the calamity 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
Request for Quotation (RFQ) Form (CBPM Form B-4) to the lone licensed contractor in
the vicinity.
47
The CEF 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:
REGISTERED BUSINESS NAME OF THE 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, the direct 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) bonafide
contractors who will be invited to submit bids and negotiate with the lowest 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 Technical Facilitator (TF)
may also be invited to attend this meeting. The TF provides technical assistance to the
BAC and acts as resource person in case of requests for clarification. The PT shall
prepare the record of the meeting.
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

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

Date and Time Received
Name and signature of procurement team member receiving the sealed
enveloped
48
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: 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 quotations.
All BAC members 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 quotation
by item or by package, specifying the date of delivery. The TF 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 for the Package (EBP), 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 suppliers/contractors price. If funds are not available, the
BAC and C/BSPMC shall negotiate with the winning supplier/contractor to adjust
the price to the Estimated Budget for the Package (EBP) but ensuring the required
quality and functionality is maintained. 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.

For Goods:
49
All Purchase Orders (PO) of goods procured through community direct contracting and
Community-to-Government Agency Arrangements above P 1.0 M shall undergo prior
review by the Regional Program 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,
Community-to-Government Agency Arrangements above P 1.0 M and Adjacent and
contiguous projects shall undergo prior review by the Regional Program Management
Office (RPMO). Works procured through community direct contracting due to failed
bidding shall undergo prior review by 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 except for the Letter Request of the BSPMC for
NOL which should be submitted in its original form.

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 required if the procurement is through
community direct contracting due to emergencies or under Community-toGovernment Agency Arrangements. However, this is still required to be posted by the
winning supplier for all other types of community direct contracting.
The PT furnishes a copy of the PO to the Barangay Bookkeeper and the Monitoring and
Inspection Team (MIT) member.
For Works:

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
50
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 Chairperson shall wait until
the NOL has been issued by the appropriate authority before the NOA is sent to the
winning contractor.
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 and the winning contractor shall
sign the Contract, in three (3) copies, within five (5) calendar days from receipt of the
NOA. The PT forwards the contract with the rest of the supporting documents for filing
and safekeeping.
Performance securities are required for all types of community direct contracting except
for the Community-to-Government Agency Arrangement and Direct Contracting due to
Emergencies. 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. Contract is effective upon
receipt of the NTP.
The PT shall furnish copies of the signed contract to the Barangay Bookkeeper,
Monitoring and Inspection Team (MIT), Municipal Auditor and the RPMO.

Contract implementation procedures for goods and services procured through
Community Direct Contracting shall follow those discussed in Section 5.1.11 and
Chapter 6.
Contract implementation procedures for Community Direct Contracting for works shall
follow those discussed under Section 5.1.11 and Chapter 7.
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.
5.3. Community Repeat Order for Goods

Community Repeat Order is a method of procurement applicable for goods contracts only.
A contract package is directly negotiated to a supplier with previously awarded or existing
contract with BSPMC. Repeat Order may be resorted only in cases where the procured item
is clearly superior to other bids/quotations in the price quoted but also in equipment reliability,
51
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;
Unit 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 of only within three (3) months of the original
contract;
It shall not result in splitting of contracts, requisitions or purchase orders.
repeat order.
5.3.1. Identification of Items for Community Repeat Order

The Project Implementation Team (PIT) shall request to the Chairperson of the Barangay
Sub-Project Management Committee (C/BSPMC) for the procurement of additional goods
through the community repeat order method. The approval of the BSPMC is subject to
the abovementioned conditions. Upon approval, the Procurement Team shall make the
necessary revisions in the Community Procurement Plan (CPP) and ensure that the
required justification for the use repeat order is attached. The CPP is to be submitted to
the Bids and Awards Committee (BAC) Chairperson and to the Barangay Sub-Project
Management Committee (C/BSPMC) for review and approval.

The BAC Chairperson shall call for a procurement preparation meeting to discuss the
aspects of the procurement at hand, among others the:
i.
ii.
iii.
iv.
The review of the technical specifications;

Confirmation from the PIT of the necessity and quantity of the additional
requirements;
Confirmation that the price and the terms of the original contract is most
advantageous to the community;
Existence of the conditions required for procurement through community repeat
order.
5.3.3. Conduct of Canvass

The BAC, through the Procurement Team, shall conduct a canvassing of the prevailing
market price of the goods to be procured. It will be compared with the price of the goods
from the original contract to confirm whether the price of the goods remain valid.
Upon confirmation that 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
52
Supplemental Contract or Purchase Order, using the Technical Specifications of the

previous contract.
5.3.4. Contract Approval, Signing and Implementation

The BAC and the BSPMC shall proceed with contract preparation, approval, signing, and
implementation in accordance with the provisions of the original contract.
5.4. Small Value Procurement for Goods

The use of Small Value Procurement (SVP) is for contingency purposes for small items
and with small value of not to exceed P10,000.00. It should not be used as a regular
procurement method circumventing other appropriate and competitive methods such as
community shopping or community bidding. SVP shall only be used to:
a. Procure tools and initial materials during site preparation, staking and lay-out;
b. Materials that are not identified in the community procurement plan (CPP) but are
identified during the implementation needed to complete the subproject.
In the exigency of implementation, a BSPMC executive committee meeting should
approve the package/items for SVP. The minutes of the BSPMC meeting should
be attached as part of the procurement documents.
For emergency procurement, SVP as procurement method will be excluded
considering that procurement procedure is direct contracting and modified shopping
should there be more than one supplier or service provider.
5.4.1. Identification of Items for Small Value Procurement

The CPP shall be updated to include the additional items to be procured under SVP. 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 office supplies, various hand tools, hardware materials 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).
5.4.2. Survey of Available Suppliers
53
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 the procurement of perishable items within the amount allowed by the community
finance manual on direct purchase, the PT shall procure the items directly from the
vendors/suppliers offering the most advantageous price based on the survey conducted;
otherwise, prepare a Purchase Order. 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). In
cases of non-registered suppliers, payment may be made under the name of the
treasurer in accordance to the provision of the Community Finance Manual.
5.4.4. Inspection of Goods/Services

Immediately upon procurement of the 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.
5.5. Pakyaw Contract for Works

Pakyaw Contract refers to a system of direct hiring or contracting a group of skilled or
unskilled workers within the community or its vicinity to perform specific work incidental to
the implementation of the project. In cases 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 works is carried out
by the 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
54
community based labor under the pakyaw contract should be discussed and agreed upon
during the Barangay Assembly.
Pakyaw contracts may be justified where:
i. there is sufficient labor in the community or its vicinity to undertake the items of work;
ii. quantities of work involved cannot be defined in advance;
iii. works are small and scattered or in remote locations for which qualified construction
firms are unlikely to bid at reasonable prices;
iv. work is required to be carried out without disrupting ongoing operations;
v. risks of unavoidable work interruption are better borne by the community than by a
contractor; or
vi. 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 labor
groups belonging to various Barangay contiguous to the project site. As a priority, un-skilled,
semiskilled and skilled workers should be drawn from the community where the project is
located.
The C/BSPMC with the Community Empowerment Facilitator (CEF) shall ensure that all
members of the community including women who are interested to join Pakyaw groups
being formed for the project are known to be members of the concerned community where
the subproject is located or from the adjacent Barangays. Women must be given equal
opportunity to participate in performing the works. The Community Empowerment
Facilitator and BSPMC should ensure that men and women who can perform certain
tasks under the Pakyaw work contract will be paid with equal rate. During the
community or Barangay assembly, the engineer should present and discuss works that can
be performed by women; corresponding technical assistance or capacity building shall be
provided depending on the nature and type of works. Appropriate safeguards must be
considered in involving women in construction activities i.e. culture, exposure to
risks and others.
55
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 its members/leaders are
inclined or with similar experience to the scope of works under consideration. For the
purposes of transparency, the BSPMC shall report to the Barangay Assembly about the
organization of pakyaw groups and its members.
The Pakyaw workers will be formed into groups based on their expertise and items of work
to be implemented. The PS shall determine the number of members for each group based
on the requirements needed for each specific work item. A Pakyaw group may consist of at
least three (3) persons. The PS shall oversee the Pakyaw groups, to ensure 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 who shall be the
signatory to the Pakyaw Contract and any other documents pertaining 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 at any time by the
group through an election for that purpose, after due notice to the PS, CEF and the
C/BSPMC Chairperson. Any such replacement shall 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 submit
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 that Pakyaw Groups are regular or licensed contractors or organized by
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 and record of meeting clearly reflecting the Pakyaw Contracts
and groups.
10 The Project Supervisor shall be a hired foreman with knowledge and experience on
construction.
11 Evaluation procedure but not necessarily at least three Pakyaw Groups
56
5.5.1. Identification of Items Covered by Pakyaw Contracts

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 work
items 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 TF 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 record of this meeting and the C/BSPMC
Bookkeeper will keep a copy of all the documents.

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.

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 or the TF,
shall conduct regular inspection of the sub-project to ensure that the works are in
accordance with the standard and to 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.
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5.6. Community Bidding for Goods and

Works
Competitive, public or Community Bidding refers 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,
post-qualification, 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.
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 the
necessary information that they need to prepare their bids. These documents form part of
the contract and clearly and adequately define, among others:
i. The objectives, scope and expected outputs and/or results of the proposed contract;
ii. The technical specifications of goods to be procured/scope of work of the works to be
constructed;
iii. Expected contract duration, the estimated quantity in the case of procurement of goods, delivery
schedule and/or time frame;
58
iv. The obligations, duties and/or functions of the winning bidder; and
v. 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 D 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 (ITB) (CBPM Form D1)
ii. Instruction to Bidders
iii. Bid Data Sheet
iv. Conditions of Contract
v. Schedule of Requirements
vi. Technical Specifications of the goods to be
procured
vii. Sample Forms
For Works:
i. Invitation to Bid (ITB) (CBPM Form E-1)
ii. Instruction to Bidders (IB)
iii. Bid Data Sheet (BDS)
iv. Conditions of Contract (CC)
v. Scope of Work (SOW)
vi. Drawings (if applicable)
vii. Bill of Quantities
vii. 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 procurement
preparation meeting. These documents must be finalized before the advertisement and/or
posting of the Invitation to Bid. The C/BSPMC and the BAC shall review the bidding
documents with the assistance of the Community Empowerment Facilitator (CEF) and the
Technical Facilitator.

The procurement preparation meeting is the forum called by the BAC where all officials
involved in the procurement meet and discuss all aspects of a specific procurement activity,
which includes, among others the:
i.
Technical Specifications/Scope of Works;
59
ii.
iii.
iv.
v.
Cost estimates;
Applicability and appropriateness of the recommended method
of procurement and the related milestones;
Bidding documents, and
The procurement preparation meeting is required to ensure 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 and services, 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 (ITB) and the
Chairperson will sign the form for posting. The PT will prepare the record of the
procurement preparation meeting (CBPM Form F-1) immediately (maximum of two days)
after the conduct of the activity 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 (ITB) serves as the notice to the public and all interested parties of the
procurement and bidding opportunities of the community. The posting and/or advertisement
of the ITB ensures transparency of the procurement process, widest possible dissemination
to increase the number of prospective bidders, and intensify competition for the
procurement activity or project.
The ITB shall be posted by the PT for a minimum period of seven (7) days in the following:
provincial/municipal/ barangay hall bulletin boards, KC-NCDDP designated billboard or
bulletin board, offices of Municipal Inter-Agency Committee (MIAC) and Provincial InterAgency Committee (PIAC) Offices and conspicuous public places such as bus, jeep, tricycle
terminals, public markets, etc. For Works contracts: It shall also be published at least
once, five (5) days prior to the conduct of Pre-bid Conference in a regional/provincial
newspapers. For larger contracts (P5M and above), 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
the vicinity of the community, the ITB may also be advertised in the regional or national KCNCDDP website. For goods and works contracts, there should be personal serving of
Invitation to Bid (ITB) to at least three (3) contractors invitation.
The Invitation to Bid (CBPM Form D-1 for goods and CBPM Form E-1 for works) shall
contain the following information:
i. For goods: brief description of the goods to be procured;
ii. For works: Name and location of the contract to be bid and project background and
other relevant information regarding the proposed project, including a brief
60
description of the type, size, major items, and other important or relevant features of
the works;
iii. A general statement on the criteria to be used by the community for eligibility 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 bidders all
the necessary information that they need to prepare their bids. Prospective bidders must
be allowed to acquire the bidding documents in order to prepare for their eligibility
requirements and bids.
The PT shall promptly issue the bidding documents free of charge to the prospective
bidders from the time the ITB is first advertised until immediately before the deadline for
submission of bids which is usually a period of two weeks from posting/publication.
However, For Community Shopping and Bidding for Works, the administrative
expense in the reproduction of bidding documents may be charged to the bidders upon
issuance. Provided, this was discussed and approved by the Barangay Assembly and the
amount is indicated in the ITB.
For Community Shopping and Bidding for Goods, the administrative expense in the
reproduction of bidding documents will be charged to the Administrative Cost of the
Sub-project. Hence, a budget should be included in the Program of Works (POW) and
issue copies of procurement documents free of charge.
The Bidding Documents shall contain the following information:
For Goods:
Section 1:
Section 2:
Section 3:
Section 4:
Section 5:
Invitation to Bid (ITB) (CBPM Form D-1)

Instructions to Bidders (IB)
Bid Data Sheet
Conditions of Contract
Standard Bidding Forms for Goods
For Works:
Section 1:
Section 2:
Section 3:
Section 4:
Section 5:
Invitation to Bid (ITB) (CBPM Form E-1)

Instructions to Bidders (IB)
Bid Data Sheet
Conditions of Contract
Standard Bidding Forms for Works and Technical Plans
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5.6.6. Conduct of Pre-Bid Conference

The pre-bid conference is the initial forum where the BAC, PT and the prospective 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: members
of the Project Implementation Team (PIT) and the Monitoring and Inspection Team (MIT).
The Municipal Engineer (ME) or the Technical Facilitator (TF) 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.
ii.
iii.
The Technical, Legal and Financial documents, 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;
Other requirements in the Instruction to Bidders (IB), the replies to the bidders
queries about the requirements, specifications and other conditions of the contract.
The record of the pre-bid conference prepared by the PT, shall be made 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
failures of bidding due to lack of bids received or non-compliance with the bidding requirements.
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.
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ii. Requests for clarification should be submitted to the BAC at least two (2) calendar days after the
pre-bid conference.
Minutes of the meeting (CBPM Form F-4) will be prepared by the PT immediately after the
conduct of the activity.
5.6.6.1 Supplemental/Bid Bulletins

If there is a request for clarification during the pre-bid conference or thereafter, the
BAC shall issue its response by issuing a supplemental/bid bulletin, to be made
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/bid bulletins shall clarify or modify any provision of the bidding
documents. Any modification to the bidding documents must be identified 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
to be informed in writing and allowed to modify or withdraw their respective bids.
The PT prepares the record 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. All contractors/suppliers issued
with an Invitation to Bid, shall be furnished with a copy of the record of the Pre-bid
Conference for their reference.
5.6.6.2. Site Visit or Inspection

The BAC will organize a site visit or inspection of the community/project site for
prospective bidders, because 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 failed 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
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An Eligibility Check is a procedure used to determine if a prospective bidder is

eligible to participate in the bidding at hand. In the eligibility check, the BAC shall
use nondiscretionary pass/fail criteria to be determined during the Opening of
Bids. A prospective bidder is eligible to bid for a particular project if, it complies
with the eligibility requirements prescribed. The absence, incompleteness or
insufficiency of any of the documents shall render a prospective bidder ineligible
and disqualified to bid for the particular procurement.
Eligibility Requirements for Goods and Services:
The prospective bidder shall comply with the following eligibility requirements:
Legal Documents
i.
ii.
iii.
The following manufacturers, suppliers, distributors, and/or service

providers with legal 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).
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;
or CDA Registration, in the case of cooperatives;
Valid and current Mayors permit/municipal license from the bidders
principal place of business.
Technical Documents
i.
The experience of having completed, a single contract that is similar to the
contract to be bid or the estimated budget for the package to be bid, and
whose value, must be at least fifty percent (50%) of the project cost
estimate. (CBPM Form D-3)
ii.
A contract is similar to the contract to be bid if it involves goods or related

services of the same nature and complexity as those which are the subject
of the Community Bidding. This is to assure the community that the
prospective bidder has the technical and financial capability to undertake
the contract to be bid.
iii.
A statement of the prospective bidder of all its ongoing and completed

government and private contracts within the period specified in the ITB,
including contracts awarded but not yet started, if any (CBPM Form D-4)
Financial Documents
i.
The prospective bidders 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 bidders total and current assets and liabilities;
ii.
The prospective bidders computation of its Net Financial Contracting

Capacity (NFCC) (CBPM Form D-5) that is at least equal to the project cost
estimate, calculated as follows:
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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 NFCC establishes the bidders liquidity, its capacity to absorb the
additional obligations in connection with the contract to be bid and to
finance its implementation/completion.
Eligibility Requirements for Infrastructure Projects/Works Contracts
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 E3);
ii. A statement of the prospective bidder of all its ongoing and completed
government and private contracts within the period specified in the ITB,
including contracts awarded but not yet started, if any (CBPM Form E-4)
iii. A statement on the:
a. Availability of key personnel, such as project managers, project
engineers, and foremen, that may be used for construction contracts;
and;
b. Availability of equipment that it owns, has under lease, and/or has under
purchase agreements that may be used for construction contracts,
provided that ownership of equipment.
Financial
i.
The prospective bidders 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 bidders
total and current assets and liabilities;
ii.
The prospective bidders computation of its Net Financial Contracting
Capacity (NFCC) (CBPM Form E-5) 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 the
value of all outstanding works or projects under ongoing contracts, including
awarded contracts yet to be started.
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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
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 NFCC establishes the bidders liquidity, its capacity to absorb the additional
obligations in connection with the 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 a
bidder in response to the requirements stated in the bidding documents. Bid is
also equivalent to and may be used interchangeably with Proposal. A Bid has
two components, the Technical Proposal and the Financial 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:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
For Goods:
The Bid Security as to form, amount and validity period
Authority of the signatory (Board Resolution if the bidder is a corporation or a
cooperative, a Partnership Resolution if the bidder is a Partnership;
Delivery schedule;
Manpower requirements, if applicable;
After-sales service/parts, if applicable;
Technical specifications;
Although the community is not allowed to refer to brand names in setting
technical specifications/criteria in the bidding documents, a bidder may be
required to state the brand of the goods offered. However, in the
evaluation of bids there shall be no preference to a particular brand name.
Omnibus Sworn Statement (Affidavit) (CBPM Form D-8);
Certificate of Site Inspection signed by the C/BSPMC Chairperson (CBPM Form D-2)
Other documents/materials as stated in the Instructions to Bidders (IB).
For Works:
i.
The Bid Security as to form, amount and validity period
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ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
Authority of the signatory (Board Resolution if the bidder is a corporation or a

cooperative, a Partnership Resolution if the bidder is a Partnership);
Construction schedule (bar chart or PERT/CPM) and S-curve;
Manpower schedule (weekly or monthly scheduling of skilled and unskilled workers,
including the Project Manager, Project Engineers, Materials Engineers, and
Foremen);
Construction methods (narrative description of how the contractor will undertake
the works under the contract;
Organizational chart for the contract to be bid,
List of contractors key personnel (viz. the Project Manager, Project Engineers,
Materials Engineers, and Foremen), to be assigned to the contract to be bid, their
complete qualification and experience data, and the key personnels signed written
commitment to work on the contract once awarded to the contractor (CBPM Form
E-11);
List of contractors 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 E-10);
Equipment utilization schedule (weekly or monthly scheduling of the minimum
equipment required for the contract);
Certificate of Site Inspection signed by the C/BSPMC Chairperson (CBPM Form E2);
Construction safety and health program of the contractor;
Omnibus Sworn Statement (Affidavit) (CBPM Form E-8);
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/her in certain procurement related transactions in case he/she is not available.
For KC NCDDDP, Procurement of WORKS/Infrastructure sub-projects, 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 bidding documents/Bid proposal and of the contract agreement, its
implementation and execution. No bidder shall be allowed to submit an absolute SPA authorizing
him to use the valid contractors license of another person or firm.
For Procurement of Goods, particularly for Hardware/construction materials, Special Power of
Attorney (SPA) may allow the registered owner of the Business to authorize an agent (Attorneyin-Fact) who is a STAFF or Officer of the business to represent him/her or sign in procurement
transactions in case he/she is not available.
5.6.7.3. Financial Proposal

The Financial Proposal shall contain the following financial
information/documents, at the least:
i.
ii.
For Goods:
Form of Bid (CBPM Form D-9),
Financial Proposal Sheet (using the ITB as a Price Schedule) (CBPM Form D-1);
67
iii.
i.
ii.
iii.
iv.
The recurring and the maintenance costs, if applicable.

For Works:
Form of Bid (Bid Offer Letter) (CBPM Form E-9);
Financial Proposal Sheet (using the ITB as a Bill of Quantities) (CBPM Form E-1),
;
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
Cash flow by the quarter and payments schedule.
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.
REGISTERED BUSINESS NAME
Address of the Bidder
Address of Barangay
Community Bidding (Goods or Works) for (Name of the Sub-project)
Contract Package No._______
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.
5.6.7.4. Submission and Receipt of Bids

The PT receives the sealed bids at the designated location in the ITB. If the bid is
submitted before the deadline stipulated in the ITB, the PT member records receipt in
the logbook with the following information:
a.
b.
c.
d.
Date and time received

Name of goods for procurement/Name of Project or Contract to be Bid
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 for submission and receipt of
bids prescribed by the BAC shall be declared Late and shall not be accepted.
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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, Technical Facilitator, Regional Community
Infrastructure Specialist, 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.
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, Technical, Legal and Financial bid documents duly marked in a single sealed
envelope must be submitted on or before the deadline as stated in the ITB. Any technical,
legal or financial bid envelope submitted after the deadline for submission and receipt of
bids prescribed in the ITB shall be declared Late and shall 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?
5.6.8.1.
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 (c) lack of any
one of the eligibility, technical or financial requirements, among others.
Preliminary Review of Eligibility, Technical and Financial Proposals

The BAC shall proceed with the opening of the eligibility and technical proposal of the
bidders, to determine each bidders compliance with the documents that are required to
be submitted for the eligibility and technical component of the bid. The opening shall be
done in public.
The BAC shall check the submitted eligibility and technical documents of each bidder
against a checklist of required eligibility and technical documents to ascertain if they are
all present, using non-discretionary pass/fail criteria. The preliminary examination
must be completed within the same day of opening of bids.
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 (1) of the above-required documents in the Technical Proposal is
missing, incomplete or patently insufficient, the bid shall be declared as failed. The
BAC may immediately returned the Eligibility and Technical requirements and the
un-opened Financial Proposal.
Immediately after determining compliance with the technical requirements, the BAC shall
open the Financial Proposal of each technically complying bidder whose submitted
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eligibility and technical requirements were rated passed on the same day. The BAC
shall determine whether 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 and shall proceed with the evaluation of the Bid. Only bids that
are determined to contain all the bid requirements for Eligibility, Technical and
Financial components shall be rated passed and shall be considered for
evaluation and comparison.
All members of the BAC shall initial every page of the original copies of all bids received
and opened. The PT shall prepare the record of the bid opening (CBPM Form F-5)
immediately after the bid opening or not later than three (3) calendar days after the bid
opening date, so that copies thereof could immediately be sent to the BAC members,
observers, bidders and other interested parties.
The BAC may return the Eligibility, Technical and Financial envelope if the prospective
bidder is declared ineligible.
A bidder may modify its bid, provided that this is done before the deadline for the
submission and receipt of bids. If a bidder modifies its bid, it shall not be allowed to
retrieve its submitted original bid. This bid must be properly identified, and marked as
Bid MODIFICATION. The Bid Modification should identify and replace affected
supporting document/s of the Original Bid. It should be 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 a justifiable cause, does not forfeit
its bid security.
5.6.8.2. 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 as indicated in the ITB, 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 valid 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.
Forms and Corresponding Amounts of Bid Security

The bid security shall be in any of the following forms, with the corresponding required
amount:
70
FORM OF BID SECURITY

Cash, cashiers check/managers check; or
a.
b. Bank guarantee confirmed by a reputable local bank; or
MINIMUM AMOUNT
2% of Bid
2 % of Bid
c. Bid Securing Declaration

However, Bid Securing Declarations may be used in lieu of Bid Security for contracts
below 1.5M for Goods and below 2M for Works procured through community bidding.
Bid Securities in the form of cash, managers check or cashiers 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 and Surety
Bonds are not acceptable as bid security. Bank guarantee as bid security shall be
submitted as part of the bidding documents.
For cash Bid Security deposited in the BSPMC Account, 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. 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, however, shall have the right to refuse to grant such extension
without forfeiting their bid securities. The bidders who refuse to grant the BACs 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.
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.
ii.
Withdraws its bid during the period of bid validity required in the bidding
documents; or
Fails or refuses to accept the award and enter into contract or perform any and
all acts necessary for 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 D-7 for Goods and CBPM Form E-7 for Works. The following sanctions shall be
applied in case of commission of the abovementioned acts:
i.
ii.
Automatically banned for two (2) years in all KC-NCDDP procurement activities,
and;
Payment of a fine equivalent to the difference between the evaluated bid price
and the Estimated Budget for the Package (EBP).
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.
ii.
When the bidders failed to comply with any of the requirements to be submitted
in the bid proposal (Disqualified Bidders), or
When the bidders were post-disqualified.
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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.
A bidders 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;
5.6.8.3. Detailed Evaluation of Bid

The purpose of detailed bid evaluation is to determine the Lowest Calculated Bid (LCB).
This is done by:
i.
ii.
Establishing the correct calculated prices of the bids, through a detailed

evaluation of the financial component of the bids; and
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 be completed in not more than two (2) calendar days from the deadline for receipt
of proposals. The BAC should exert effort to complete the process even before the lapse
of the 2-day period, as this will expedite 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 ITB, which shall include a
consideration of the following:
i.
The bid must be complete. Partial bids or bids not addressing or providing all of
the required items in the bidding documents including, where applicable the bill of
quantities shall be considered non-responsive and automatically disqualified. If a
required item is provided in the financial proposal, but no price is indicated, 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 free to the community and such bid
should be considered. A partial bid will not be considered non-responsive and
disqualified if 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
Engineers 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.
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iii. Computational errors will be corrected. Minor arithmetical corrections to consider

computational errors and omissions shall be made to enable proper comparison of
all eligible bids. Discounts shall be incorporated in the bid unit prices as
provided in the bidding documents. Any adjustment shall be calculated in monetary
terms to determine the calculated prices. For bids found to be the lowest
calculated and responsive (LCRB) but with an increased bid as a result of
computational error, the bidder may post additional security within two days
after the declaration of LCRB in time for post-qualification.
iv. All bids shall be evaluated on equal footing. For this purpose, all bidders shall be
required to include the cost of all taxes, such as, but not limited to, value added tax
(VAT), income tax, local taxes, and other fiscal levies and duties which shall be
itemized in the bid form and reflected in the detailed estimates. Such bids, including
said taxes, shall be the basis for bid evaluation and comparison. The BAC should
therefore presume that the financial proposals submitted by the bidders include
taxes and other costs, such as freight, insurance, and bank charges, in the
evaluation of bid. Hence, a re-computation to factor in these things is inappropriate
and unnecessary.
A bidder 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 bid
evaluation.
v. Bid prices in words, unit prices, and unit cost in the bill of quantities shall prevail in
case of discrepancy. In case of discrepancies between: (a) bid prices in figures and
in words, the latter shall prevail; (b) total prices and unit prices, the latter shall
prevail; (c) unit cost in the 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 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 LCB.
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 Estimated Budget for the Contract. 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.
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5.6.8.4. 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. The Observers who are present may also sign
the Abstract of Bids if, in their independent observation, the bidding activity conducted by
the BAC followed the correct procedure. The Abstract of Bids shall contain the following:
i.
ii.
iii.
Name of the contract and its location, if applicable;

Time, date and place of bid opening; and
Names of bidders and their corresponding calculated bid prices arranged from
lowest to highest, the amount of bid security and the name of the issuing entity.
If no bid complies with all bid requirements, the BAC should declare the bidding a failure.
The BAC then reviews the terms and conditions stated in the ITB. If warranted by the
ACT/RPMO, it may change any of the terms and conditions, including the quantities or
specifications. The BAC must, thereafter, conduct a re-bidding, in the process
formulating anew ITB and posting and publishing this as required. All bidders who
have initially responded to the ITB and have been declared eligible 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 package (EBP), and so
decides to revise the estimates cost accordingly, the C/BSPMC should conduct another
public bidding with re-advertisement and/or posting. Alternatively, the C/BSPMC
may enter into community direct contracting with a legally, technically, and financially
capable supplier/contractor. However, if the community resorts to direct contracting, the
terms, conditions, and specifications of the project as well as the estimated budget for
the package must be maintained.
5.6.9. Post-qualification
Post-qualification is the process of verifying, validating and ascertaining all the statements
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
bidders compliance with the legal, financial and technical requirements of the bid as to
their genuineness and their responsiveness to the requirements. The legal review verifies
that all required licenses, permits and other documents submitted are in order. For works,
the 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 offered with the requirements of the contract and bidding documents (suppliers
stated expertise and experience, testing and inspection of the goods/products, after-sales
and/or maintenance capabilities, authenticity and sufficiency of the bid security as to type,
amount, form and wording, and validity period.
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For works, the technical requirements are verified to ascertain the veracity of documents
submitted to prove the bidders 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 the project, 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 on-going works of the contractor; or that the minimum required
experience of the bidders key personnel were not met; all of which are grounds for
disqualification if found by the BAC to be due to the bidders 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 period stipulated in the ITB. This is to
ensure that the bidder can sustain the operating cash flow of the transaction. The
BAC/TWG conducts a site inspection of the bidders place of business and may also test
samples for compliance with specifications and performance levels, where applicable.
For works, the financial requirements are validated to check the bidders stated net worth
and liquid assets, net working capital, the value of all outstanding or unfinished works
under ongoing contracts, and the bidders NFCC, as recalculated considering
developments in the bidders other projects, 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-qualification Report 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 by the 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 for postqualification. 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 assistance of the TWG, prepares
the BAC Resolution to Award (CBPM Form F-11) declaring the LCRB and the
corresponding Notice of Award (NOA) (CBPM Form F-12) to the said bidder informing it of
its successful post-qualification.
If the bidder with the LCB fails to pass post qualification, the BAC shall immediately notify
the said bidder in writing of its post-disqualification and the grounds for it.
75
Immediately after the BAC has notified the first bidder of its post-disqualification, and
notwithstanding any pending request for reconsideration, the BAC shall initiate and
complete the same post-qualification process 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 failure
of bidding. The BAC shall then proceed with the procedures specified in the last paragraph
of Section 5.6.8.5.
The BAC shall issue a Resolution to Award (CBPM Form F-11) recommending to the
C/BSPMC Chairperson to award the contract to the bidder with the LCRB at its calculated
bid price. Prior to the expiration of the period of bid validity, the C/BSPMC Chairperson
should notify the successful bidder in writing that its bid has been accepted, through a NOA
(CBPM Form F-12).
The PT consolidates all the documents and/or records of the proceedings of the BAC with
regard to the procurement at hand, and attaches the same to the BAC Resolution. The PT
drafts the BAC Resolution to Award. The BAC signs the Resolution to Award, and transmits
the same to the C/BSPMC Chairperson for approval.

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 Program Management Office (RPMO):
Contracts for Goods from Community Bidding: P 1M up to below P2.0 M
National Project Management Team (NPMO) Goods and Works contracts P2.0M
and above
World Bank - the first three (3) contracts for the first year sub-projects in each of the
two (2) 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 documents 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.
76

Upon receipt of the NOL, the PT prepares the Notice of Award (NOA) to be signed
by the BSPMC and issue to the winning bidder.
If the bidder refuses to accept the award within the bid validity period, the BAC
shall forfeit the bid security of the bidder. The BAC may also impose on the erring
bidder the penalty of suspension for one (1) year from participation in KC-NCDDP
procurement for the first offense, and suspension for two (2) years for the second
offense.
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
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 bidder (two copies) within five (5)
calendar days from receipt of the NOA. The PT provides copy of the contract
together with the rest of the supporting documents for filing and safekeeping to the
Bookkeeper.
A performance security is a guarantee that the winning bidder will faithfully perform
its obligations under the contract prepared in accordance with the bidding
documents. It must be posted in favor of the community, and will be forfeited in its
favor in the event it is established 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,
and in the form prescribed in the bidding documents 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. The performance security forms part of the contract.
The following steps are followed in the posting of the performance security:
i.
ii.
1. The bidder with the LCRB posts a performance security. In so doing, it must
comply with the following conditions:
The performance security must be executed in the form prescribed by the
community in the IB; and
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.
77
Forms and
Security
Corresponding
Amounts
of
Performance
The performance security shall be in any of the following forms, with the
corresponding required amount:
FORM OF PERFORMANCE SECURITY
a.
Cash, cashiers check/managers check; 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 C/BSPMC. Cash and checks shall be deposited in the C/BSPMC Account.
The winning bidder must choose which among 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
additional performance security following the schedule above to cover any
cumulative increase of more than ten percent (10%) over the original value of the
contract as a result of an amendment to order/variation/change order. The
percentages in the schedule above must be applied to increases in the original
value of the contract. The winning bidder must also cause the extension of the
validity of the performance security to cover approved contract time extensions; (b)
partial delivery/performance/completion of works - If the contract value is reduced
because part of the goods or services under the contract had already been
delivered or completed, 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
allow a proportional reduction in the original performance security. However, this
proportional reduction in the value of the performance security is allowed only when
the contract allows for partial deliveries or performance. Moreover, the reductions
must be more than ten percent (10%), and the aggregate of such reductions must
not be more than fifty percent (50%) of the original performance security.
The C/BSPMC may release the performance security to the winning bidder after
the issuance of the Certificate of Acceptance of the 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 replaced by a warranty covering the
defects liability period.
For works, 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 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
78
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.

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 TF monitors the delivery of the goods. Upon full
delivery of goods, processing of payment will commence. For payment procedures and
guidelines please refer to Community Based Finance Manual.
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 TF 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, TF,
Community Infrastructure Officer (CIO) shall conduct regular inspection of the project site
and provide 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.
For payment procedures and guidelines please refer to Community Based Finance
Manual.
5.7. Consultant Qualification

Selection/Single Source
Selection/Individual Consultant
Selection for Consulting Services
79
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 subproject
proposals that are identified as technically-complicated for community volunteers to carry out.
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 Consultant Qualification Selection (CQS) 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)
or Single Source Selection (SSS).
The need to procure consulting service providers shall be decided upon during the Municipal
Inter-Barangay Forum for Criteria Setting Workshop (MIBF-CSW). The TF 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: i) the TOR, the identification of the TAF-eligible communities, ii) the type of
consulting service to be used (firm or individual), iii) the appropriate method of procurement, iv)
the estimated cost and schedule of fund releases, v) the project implementation schedule, vi)
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.
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.
RPMO Managed TAF:
The RPMO through the SRPMO may consolidate the proposed subprojects requesting for TAF
and facilitate the engagement of service providers at the regional level.
TAF may be used to hire service providers who will be assigned or based at the RPMO/SRPMO
to provide technical assistance to the municipalities. The service providers may be contracted
output based or time based as may be appropriate based on the Terms of Reference (TOR)
prepared for the engagement. The RPMO shall determine the need for a regionally managed
TAF by coordinating with the SRPMO and ACTs for SPs that may avail TAF as earlier identified
with the community during the 2nd Barangay Assembly.
80
Hiring of Service Providers will be facilitated by the RPMO following the procedures in the
NCDDP Program Procurement Guidelines. Funding and payment shall be made in accordance
with the KC-NCDDP FMS sub-manual.
A separate guidelines for TAF will be prepared as annex of this manual. The guidelines will
cover the use of TAF in disaster affected areas.
5.7.1. Ad-Hoc Bids and Awards Committee (BAC) for Consulting

Services at the Community level
The TAF-eligible communities shall create a separate BAC, composed of at least three (3)
members including the BAC chairperson 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. The Project Preparation Team (PPT) may serve as Procurement
Team at this stage in case the community do not have existing PT or in the case of new
areas.
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.
ii.
iii.
iv.
v.
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);
Request for Proposal Forms;
Consultancy Agreement/Contract;
Abstract of Technical/Financial Proposals;
Terms of Reference, as approved
For Individual Consultants or Service Providers

i.
ii.
iii.
iv.
When there are more than three (3) applicant service providers, 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 (3)
qualified candidates, evaluation may still proceed with the BAC resolution that
there is limited service providers in the area
Curriculum Vitae/Resume Forms;
Consultancy Agreement;
Terms of Reference, as approved
81
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
procurement preparation meeting, 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.
ii.
iii.
iv.
v.
Dates of submission and opening of proposals;

Evaluation criteria, preparation and submission of work plan/schedule of
activities including the cost breakdown;
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.
Process review of the technical outputs and leveling-off on the technical
standards of the Project;
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 procurement preparation meeting and the
Lead Barangay will keep a copy of all the documents. The procurement preparation meeting
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 InterAgency Committee (MIAC).
The Notice of Request for Proposal shall contain the following information:
i.
ii.
iii.
iv.
v.
Brief description of the services to be procured;

opening of proposals;
Contract duration;
82
5.7.5. Issuance of Request for Proposal

The AHPT issues the Request for Proposal (RFP) to the eligible service providers/qualified
candidates included in the shortlist who attended the procurement preparation meeting.
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.
ii.
List of completed and on-going projects;

Approach,
work
plan,
and
iii.
List of key personnel to be assigned to the contract to be bid, with their

complete qualification and experience data.
schedule;
and
CONTENTS OF THE FINANCIAL PROPOSAL FOR QUALIFICATION

SELECTION
The Financial Proposal shall contain the following financial information/documents, at the
least:
i.
ii.
Remuneration cost indicating the basic salary, overhead cost, and

management fee for consulting firms;
Reimbursable cost; and
83
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 proposals is 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.

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 Program 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 except for the Letter Request from the BSPMC 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.
84
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 five (5) 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 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.
The PT shall furnish copies of the signed contract to the Municipal Auditor and the RPMO.
Table 9 provides a summary of all procedures for the procurement of consulting services
through Qualification/Single Source and Individual Consultant Selection and explains the
functions of different personnel involved.
85
Table 2. Matrix of Procedures for Community Shopping for Goods with Functions of Various
Procurement Personnel
Procedures
Time Frame
SUPPLIER
PT
BAC
C/BSPMC
1. Identify items for

Community Shopping
from approved CPP
2.Prepare Requests for
Quotation Form
1 cd
Identify items for

procurement
Review items to be
procured
Review items
to be procured
1 cd
Prepare quotation
documents
Review
quotation s forms
Review quotation
forms
3.Conduct of
Procurement
Preparation
Meeting
1cd
Discuss procurement
at hand
Prepare minutes
Discuss
procurement at
hand
Discuss
procurement at
hand
4. Posting of Notice of
5. Issuance of Request
for Quotation Form
Once for a
minimum of 3
cd
2c d
6. Submission and
Receipt of Quotations
3cd
7. Opening and
Evaluation of
Quotations
1c d
TWG
Discuss
procurement
at hand
ACT
RPMO/NPMO/
ADB/WB
CEF calls for the

meeting TF
provides
technical
assistance and
acts as resource
person
Posts NRQ
Issues quotation
forms
Prepares
quotation
and submits
the
same to the
BAC
CEF to accompany
PT members
Receives the sealed

quotations on or
before the deadline
Receives all quotation

Prepares minutes of
quotation evaluation
Prepares Abstract of
Quotations
Invites TWG and

AIT Head
to assist in
quotation
evaluation
Signs the minutes

of meeting and
Abstract of
Quotation
Assists the
BAC in the
evaluation of
quotations
TF provide
technical assistance
Opens quotations
and checks
responsiveness of
quotation
86
Procedures
Time Frame
8. Prior Review of
Contract
Not more than

15 days if it
requires
RPMO and 30
days if
NPMO/WB
1c d
9. Contract Award
10. Contract
Implementation
As specified in
the PO
SUPPLIER
PT
BAC
Signs the Abstract
of Quotation
Signs the PO
Delivers
goods as
provided in
PO.
Prepares and delivers

the PO to the winning
supplier.
Provides copies of PO
and its supporting
documents to LGU
COA and RPMO.
Compiles copies of all
documents for
consolidation with
other project related
documents
C/BSPMC
C/BSPMC
Chair
Requests for
Clearance to
Award
TWG
ACT
RPMO/NPMO/
ADB/WB
Reviews contract
documents and
issues NOL
Signs the PO
MIT and TWG

inspects and
receives goods and
signs PO and
delivery receipt
87
Table 3. Matrix of Procedures for Community Shopping for Works with Functions of Various
Procedures
1. Identify items for Community
Shopping from approved CPP
2.Prepare Notice of Request for
Quotation
(NRFQ)
3.Conduct of Procurement
Preparation
Meeting
4. Posting of Notice of Request for

Quotation (NRQ)
5. Issuance of Request for
Quotation
Time
Frame
1 cd
1 cd
2cd
Once for a
minimum of
3cd
1cd
At least 5
days before
the deadline
of
submission
of quotations
SUPPLIER
PT
BAC
C/BSPMC
TWG
Identify items for

procurement
Prepare IFQ
documents
Review items
to be procured
Review IFQ
documents
and forms
Discuss
procurement
at hand
Sign NRQ for
posting
Review items
to be procured
Review IFQ
documents and
forms
Discuss
procurement at
hand
Discuss
procurement
at hand
Discuss
procurement at
hand
Prepare minutes
ACT
RPMO/NPMO/A
D B/WB
CEF calls for

the meeting
TF provides
technical
assistance
and acts as
resource
person
Posts NRQ
Issues RFQ
forms
CEF to
accompany PT
members
88
6. Conduct of Conference for

Shopping for Works
Procedures
At least 3
days before
the deadline
of
submission
of quotations
Time
Frame
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
Attends
conference
SUPPLIER
Prepares
quotation and
submits the
same to the
BAC
Prepares
required
documents and
minutes
Attends
conference
Invites
Project
Implementati
on Team
(PIT),
Municipal
Implementati
on Team
(MIT),
Municipal
Engineer, TF
and
contractors
Attends
conference
Chairperson
issues
Certificate of
Site
Inspection to
participating
contractors
PT
BAC
C/BSPMC
Receives the
sealed
quotations on or
before the
deadline
Receives all
quotations
Prepares
minutes of
quotation
evaluation
Prepares
Abstract of
quotations
Invites TWG
and PIT Head
to assist in
quotation
evaluation
Opens
quotations
and checks
responsivene
ss of
quotation
TF to attend
conference
and
provide
technical
assistance
TWG
Assists the
BAC in the
evaluation of
quotations
C/BSPMC
Chair
Requests for
Clearance to
Award
ACT
RPMO/NPMO/A
D B/WB
TF provide
technical
assistance
Reviews contract
documents and
issues NOL
89
10. Contract Award
11. Contract Implementation
1cd
Signs the
contract Posts
the required
performance
security
As specified
in the
contract
Mobilizes and
starts work as
provided in
contract May
request for
advance
payment
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
Signs the
contract
Approves and
signs the
contract
PIT, MIT and

TWG
inspects and
monitors
status of
accomplishmen
t
Table 4. Matrix of Procedures for Community Direct Contracting for Goods with Functions of Various
Procedures
Time
Frame
SUPPLIER
PT
BAC
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
1 cd
Prepare documents
Review forms
Preparation
Meeting
1cd
Discuss
procurement at
hand
Prepare minutes
Discuss
procurement at
hand
Sign NRQ for
posting
C/BSPMC
TWG
ACT
RPMO/NPMO
/AD B/WB
Review
items
to be
procured
Review
forms
Discuss
procuremen
t at hand
Discuss
procurement
at hand
CEF calls for the

meeting TF
provides
technical
assistance and
acts as resource
person
90

Quotation
5. Issuance of Request for Quotation
Form
Quotations

Quotations
Procedures
8. Prior Review of Contract
9. Contract Award
Once for a
minimum of
3cd
2cd
3cd
Posts NRQ
Prepares
quotation
and submits
the
same to the
BAC
1cd
Time
Frame
SUPPLIER
Issues quotation
forms
Receives the sealed
quotations on or
before the deadline
Receives all
quotation Prepares
minutes of quotation
evaluation
Prepares Abstract of
Quotation
Invites TWG and

AIT Head
to assist in
quotation
evaluation
Opens
quotations and
checks
responsiveness
of quotation
PT
BAC
Not more
than 30 days
1cd
As specified
in the PO
CEF to accompany
PT members
Signs the PO
Prepares and
delivers the PO
Provides LGU COA
and RPMO with
copies of PO and
supporting
documents
Delivers
goods as
provided in
contract
Compiles copies of
all documents for
consolidation with
documents
C/BSPMC
C/BSPMC
Chair
Requests
for
Clearance
to
Award
Signs the
PO
Approves
and
signs the
PO
Assists the
BAC in the
evaluation of
quotations
TF provide
TWG
ACT
RPMO/NPMO
/AD B/WB
Reviews
contract
documents and
issues NOL
MIT and
TWG
inspects
and
receives
91
goods and
signs PO
and delivery
receipt
Table 5. Matrix of Procedures for Community Direct Contracting for Works with Functions of Various
Procedures
Time Frame
1. Identify items for Community

Direct
Contracting from approved CPP
2.Prepare Requests for
Quotation
Preparation Meeting
4. Posting of Notice of Request

for
Quotation
5. Issuance of Request for
Quotation
Form
SUPPLIER
PT
BAC
1 cd
Prepare items for

procurement
Review items
to be procured
Review items
to be procured
1 cd
Prepare
documents
Discuss
procurement at
hand
Prepare minutes
Review forms
Review forms
Discuss
procurement at
hand
Sign NRQ for
posting
Discuss
procurement at
hand
1cd
Once for a
minimum of 3 c
d
1cd
C/BSPMC
TWG
Discuss
procureme
nt at hand
ACT
RPMO/NP
MO/ADB/
WB
CEF calls for the

meeting TF provides
and acts as resource
person
Posts NRQ
Attends the site

inspection as
may be
applicable
Issues quotation
forms
Issues a
Certificate of
Site
Inspection as may
be applicable
CEF to accompany PT
members
92

Quotations
Within 5 days
after issuance
of IFQ

Quotations
1cd
Procedures
8. Prior Review of Contract/

NOL issuance
9. Contract Award
Time Frame
Procurement
action not more
than 5
days upon
receipt of NOL
Documents
1cd
As specified in
the contract
Prepares
quotation and
submits the
same to the
BAC
Receives the
sealed quotations
on or before the
deadline
Receives all
quotation
Prepares
minutes of
quotation
evaluation
Prepares
Abstract of
Quotation
SUPPLIER
PT
Invites TWG
and PIT Head
to assist in
quotation
evaluation
Opens
quotations and
checks
responsivenes
s of canvass
BAC
Assists the
BAC in the
evaluation
of
quotations
C/BSPMC
C/BSPMC
Chair
Requests for
Clearance to
Award
Signs the
contract and
posts required
performance
security
Prepares and
delivers the PO
Provides LGU
COA and RPMO
with copies of PO
and supporting
documents
Signs the PO
Approves and
signs the PO
Mobilizes and
starts work as
provided in
contract May
request for
advance
payment
Compiles copies
of all documents
for consolidation
with
other project
related
documents
PIT, MIT and

TWG
inspects and
monitors
status of
accomplishment
TWG
TF provide technical
assistance
ACT
RPMO/NP
MO/ADB/
WB
Reviews
contract
documents
and issues
NOL
93
Table 6. Matrix of Procedures for Pakyaw Contracts for Works with Functions of Various Procurement
Personnel
Procedures
Time
Frame
PAKYAW GROUP
PT
BAC
1. Organization of Pakyaw
Groups
2. Identify items Covered by

Pakyaw Contract in approved
CPP
3.Conduct of Negotiations on
Pakyaw
1 cd
1 cd
Attend meeting
Identify items of work

for Pakyaw
Review items
Prepare minutes
Call for
meeting to
discuss scope
of work and
technical specs
C/BSPMC
CEF/PIT/MIT
C/BSPMC to hire/
appoint PS
PS to assist
organize
community labor
into
Pakyaw groups
Review items
CEF to enlist
available labor in
the community
Review forms
Discuss work
requirements and
assignments,
timetables,
contract cost,
payment
arrangements
TF/ME
Assist the
PT
Discuss
the
technical
aspect of
the
subproject
94
4.Contract Award
1cd
As specified
in the
contract
GL sign contract
Prepare contract
Mobilizes and starts

work
as provided in contract
Compiles copies of
all documents for
consolidation with
documents
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
Time Frame SUPPLIER
PT
BAC
C/BSPMC
Prepare items for

procurement
Review and validate

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

Community Bidding from
approved CPP
2.Prepare/revise bidding
documents
1 cd
Preparation
Meeting
1cd
Discuss
procurement at
hand
Prepare minutes
Discuss procurement at
hand
Sign IB for posting
2cd
Once for a
Posts Invitation to
Bid
Approves issuance of IB
4. Posting/advertisement
of Invitation to Bid
TWG
ACT
RPMO/NP
MO/ADB/W
B
CEF and TF assists

in the review
Discuss
procurement
at hand
CEF calls for the

meeting TF
provides
technical
assistance and
acts as resource
person
CEF ensures wide
circulation of ITB
95
5. Issuance of Bidding
Documents
6. Conduct of Pre-Bid
Conference
7. Preparation,
Submission and Receipt
of
Bids
Procedures
8. Issuance of
Supplemental/Bid
Bulletins
9. Eligibility and Bid
Opening and Evaluation
minimum
period of 7 c
d
2 weeks from
date of
posting of IB
1cd
At least 7
days before
deadline for
bid
submission
As prescribed
in the bidding
documents
Issues bidding
documents
Approves issuance of
bidding documents
Attends
prebid
conference
Prepares required
documents,
minutes and
supplemental bid
bulletins where
applicable
Attends prebid
conference Invites
Project Implementation
Team (PIT), Municipal
Implementation Team
(MIT), Municipal
Engineer, TF and bidders
Attends pre-bid
conference
Chairperson
issues
Certificate of Site
Inspection to
participating
bidders
Prepares
technical and
financial
proposal and
submits the
same to the
BAC
Receives the
sealed bids on or
before the
deadline
PT
BAC
C/BSPMC
Posts
Supplemental/Bid
Bulletin
Prepares
barangay hall for
bid opening Places
received bids in
bid box
Issues
Supplemental/
Bid Bulletin
Invites
Observers to witness bid
opening
Time Frame SUPPLIER
Within 2 days
after pre-bid
conference
Not more
than 5 c d
Submits
request for
clarification
Prepares minutes
of bid evaluation
Prepares Abstract
of Bids
10. Post-qualification
2cd
TF to provide
TWG
ACT
RPMO/NP
MO/ADB/W
B
TF to provide
Assists the
BAC in the
evaluation of
bids and
requirements
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
TF to attend
prebid conference
and provide
technical
assistance
Signs the
Resolution and
Notice to
Award
TF to attend bid
opening and
provide technical
assistance
Assists the
BAC in the
conduct of
postqualification
96
11. Prior Review of

Contract
Not more than

30 days
12. Contract Award
Maximum of
10c d
Signs the
contract
Posts the
required
Performanc
e
Security
As provided
in the contract
Delivers
goods as
provided in
contract
13. Contract
Implementation
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
Issues NOL
Assists the
BAC in the
preparation
of resolution
and notice to
award
Reviews
contract
documents
and issues
NOL
MIT, Municipal
Engineer, TF
Monitors 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

Community Bidding
from approved CPP
Time Frame
1 cd
2.Prepare/revise bidding
documents
3.Conduct of
Procurement
Preparation
Meeting
1cd
CONTRAC
TOR
PT
BAC
C/BSPMC
Prepare items for

procurement
Review
and
validate items to
be procured
Prepare bidding
documents
Review bidding
documents
Review and
validate items
to
be
procured
Review bidding
documents
Discuss
procurement at
hand
Prepare minutes
Discuss
procurement at
hand
Sign IB for posting
Discuss
procurement at
hand
TWG
Discuss procurement
at hand
ACT
RPMO/NP
MO/ADB/
WB
CEF and TF
assists in the
review
CEF calls for
the meeting
TF provides
technical
assistance
and acts as
resource
97
person
4.
Posting/advertisement
of Invitation to Bid
2cd
Once for a minimum
period of 7 c d
5. Issuance of Bidding
Documents
2 weeks from date of

posting of IB
6. Conduct of Pre-Bid
Conference
1cd
At least 7 days before
deadline for bid
submission
Procedures
Time Frame
Attends
prebid
conference
CONTRACT
OR
Posts Invitation to
Bid
Approves issuance
of IB
CEF ensures
wide circulation
of ITB
Issues bidding
documents to
eligible bidders
Approves issuance
of
bidding documents
TF to provide
technical
assistance
Prepare required
documents, minutes
and supplemental
bid bulletins where
applicable
Attends prebid
conference Invites
Project
Implementation
Team (PIT),
Municipal
Implementation
Team (MIT),
Municipal
Engineer, TF and
bidders
PT
BAC
7. Preparation,
Submission and Receipt
of
Bids
As prescribed in the
bidding documents
Prepares
technical and
financial
proposal and
submits the
same to the
BAC
Receives the
sealed bids on or
before the deadline
8. Issuance of
Supplemental/Bid
Bulletins
Within 2 days after

pre-bid conference
Submits
request for
clarification
Posts
Supplemental/Bid
Bulletin
Issues
Supplemental/
Bid Bulletin
Attends pre-bid
conference
Chairperson
issues
Certificate of
Site Inspection
to participating
bidders
C/BSPMC
TF to attend
pre-bid
conference
and provide
technical
assistance
TWG
ACT
RPMO/NP
MO/AD
B/WB
TF to provide
technical
assistance
98
9. Eligibility and Bid

Opening and Evaluation
10. Post-qualification
11. Prior Review /NOL
Procedures
Not more than 5 c d
Prepares barangay
hall for bid opening
Places received
bids in bid box
Prepares minutes
of bid evaluation
Prepares Abstract
of Bids
2cd
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 legal,
technical and
financial bidding
documents
Period of action 12not

more than 15 days for
Devt Partner, 5 for
NPMO and 5 for RPMO
upon receipt of the
procurement documents
Time Frame
Assists the BAC in

the evaluation of bids
and requirements
Signs the
Resolution and
Notice to
Award
TF to attend
bid
opening
and
provide
technical
assistance
Assists the BAC in

the conduct of postqualification
C/BSPMC
Chair
Requests for
Clearance to
Award
CONTRACT
OR
PT
BAC
C/BSPMC
TWG
ACT
RPMO/NP
MO/AD
B/WB
12 Procurement actions such as comments, observation, recommendations for compliance or NOL shall be issued within the timeline/period of action
99
12. Contract Award
13. Contract
Implementation
Period of action 13not

more than 15 days
for Devt Partner, 5
for
NPMO and 5 for
RPMO upon receipt
of the procurement
documents
Maximum of 10 c d
As provided in the
contract
C/BSPMC
Chair
Requests for
Clearance to
Award
Signs the
contract Posts
the required
Performance
Security
Starts the work

as provided for
in 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
documents
Signs the NOA

and contract
Approves and
signs the
contract
Assists the
BAC in the
Preparation of
resolution
and notice to award
Reviews
contract
documents
and issues
NOL
PIT and MIT,

monitors
accomplishment
of work
TF, ME, CIO
conducts
regular visit of
project site
13 Procurement actions such as comments, observation, recommendations for compliance or NOL shall be issued within the timeline/period of action
100
Table 9. Matrix of Procedures for Qualification/Single Source/Individual Consultant Selection for

Consulting Services with 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 Procurement Preparation

Meeting
1cd

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
6. Submission, Receipt and Evaluation of

Proposals
CONSULTAN
T
AHPT
AHBAC
LEAD
BARANGAY
TWG
TAF eligible
communities to
submit request
to
RPMO/SRPMO
to use TAF for
consulting
services
Lead Barangay
to be elected
as contracting
party and open
community
account
Attend
conference
Prepare
procurement
documents
Discuss
procurement at
hand
Prepare minutes
Posts NRFP
Secures RFP
and prepares
requirements
Issues RFP to
shortlisted firms
and individuals
Submits all
requirements
Receives
proposals
Discuss
procurement
at hand
Review and
approve
documents
Discuss
procurement at
hand
Sign NRFP for
posting
Discuss
procurement
at hand
ACT
RPMO/NPMO
TF to assist in
the preparation
of the TOR
AC to certify to
that agreement
to
hire consultants
followed CEAC
process
RPMO/SRPMO
to
review and
approve request
and create TWG
Assist in the
preparation of
the documents
CEF calls for
the meeting
TF provides
technical
assistance
Authorizes
posting of
NRFP
TF to provide
technical
assistance
Reviews and
evaluates
proposals
Invites Auditor,
AC
Assist in the
review and
evaluation of
proposals
TF to attend
provide
support and
technical
assistance
101
Procedures
8. Contract Award
Time
Frame
CONSULTAN
T
As
determined
by RPMO
and NPMO
Maximum of
10 c d
Signs the
contract
As provided
in the
contract
Starts the work

as provided for
in the contract
AHPT
AHBAC
LEAD
BARANGAY
TWG
ACT
Requests for
Clearance to
Award
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, TF
monitors
accomplishment
of work and
conducts
regular review
of outputs
102
CHAPTER SIX: CONTRACT

IMPLEMENTATION FOR COMMUNITY
BASED GOODS AND SERVICES
6.1. Warranty
6.2. Suspension of Delivery
6.3. Delays in Delivery and Liquidated
Damages
6.4. Incidental Services
6.5. Spare Parts and Maintenance
6.6. Prices
6.7. Payments
6.8. Subcontracts, Assignments
6.9. Standards
6.10. Inspection and Tests
6.11. Force Majeure
6.12. Contract Termination
6.13. 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:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
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 Barangay Assembly for this purpose.
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 Barangay Assembly for this purpose.
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
Barangay Assembly for this purpose.
Municipal Inter-Agency Committee (MIAC) is responsible for providing technical
assistance to the community in the implementation of the contract.
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
Community Empowerment Facilitator responsible for reviewing and ensuring
that all procurement, finance and contract implementation documents are in
accordance with the requirements and procedures
Technical Facilitator responsible for providing technical assistance to the
community, reviewing requests for variation or change orders and validating
accomplishment reports among others
Area Coordinator (AC) responsible for signing checks for payments, and
endorses requests for Variation Orders or Change Orders to the RPMO prior to the
approval of BSPMC Chairperson.
Contract implementation covers the following important milestones: a) suppliers

performance of his contractual obligations; b) C/BSPMCs performance of its contractual
obligations, as specified in the Contract; c) final acceptance or project sign-off; d) all other
related activities; and e) payment by the C/BSPMC. Generally, a contract becomes effective
upon receipt by the winning supplier of the Purchase Order (PO). 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 aqua-cultural 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 amount 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
retention money or warranty security, where applicable, (c) automatically blacklist the
supplier in all KC-NCDDP procurements.
6.2. Suspension of Delivery

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 due to force majeure or any
fortuitous 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.
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.
The following steps are necessary for the issuance of a suspension order:
i.
ii.
iii.
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.
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
be done, the PIT, with the approval of the C/BSPMC Chairperson shall lift the
suspension order by written notice, thereby instructing the supplier to proceed with
the delivery or work in accordance with the amended contract.
6.3. Delays in Delivery and Liquidated

Damages
The supplier must deliver the goods or perform the services procured 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.
6.3.1. 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.
For contracts equal to Ten (10) Million Pesos or lower, the supplier must pay the
C/BSPMC liquidated damages, an amount equal to one percent (1%) of the cost of
the delayed goods or services scheduled for delivery or performance for every
day of delay; otherwise, 1/10 of 1% for contracts higher than 10M. The liquidated
damages will be imposed until such goods or services are finally delivered or performed
and accepted by the C/BSPMC. In no case shall the sum of liquidated damages reach
ten percent (10%) of the contract amount. If it does, the contract shall automatically be
rescinded by the C/BSPMC, without prejudice to other courses of action and remedies
open to it. The C/BSPMC may also take over the contract or award the same to a
qualified supplier through direct contracting. In addition to the liquidated damages, the
erring suppliers 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 such delay.
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
and the supplier is informed of this in writing. The supplier is then asked to extend
the validity of the performance 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 of the request for
extension. In this case, the C/BSPMC imposes the liquidated damages in
accordance with the provisions of the contract.
v.
If the supplier incurs delay and it does not request for an extension:
a. The C/BSPMC informs, within a reasonable time from the first day of delay, the supplier that
it shall impose the liquidated damages agreed upon by the parties.
b. Upon delivery, the C/BSPMC and the MIT records 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
warranties about the delay and the corresponding liquidated damages imposable.
6.4. Incidental Services

Incidental Services are those services ancillary to the supply of the goods, such as
transportation and insurance, installation, commissioning, provision of technical assistance,
training, and other such obligations of the supplier specified in the contract and the bidding
documents. The Incidental Services must be clearly specified in the contract, and identified
as separate components from the goods to be supplied or services to be rendered, so that
prices indicated on the price schedule shall be entered separately, in accordance with the
IB. The cost shall also be indicated in the contract. In particular, these services may refer to
any of the following:
i.
ii.
iii.
iv.
v.
vi.
Performance or supervision of on-site assembly and/or start-up of the supplied

goods;
Furnishing of tools required for assembly and/or maintenance of the supplied
goods;
Furnishing of a detailed operations and maintenance manual for each appropriate
unit of the supplied goods;
Performance or supervision or maintenance and/or repair of the supplied goods,
for a period of time agreed by the parties, provided that this service shall not
relieve the supplier of any warranty obligations under the Contract;
Training of the C/BSPMC s personnel, at the suppliers plant and/or on-site, on
assembly, start-up, operation, maintenance, and/or repair of the supplied goods;
and;
Any other related services necessary for completion of the project and indicated
in the contract.
6.5. Spare Parts and Maintenance

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.
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.
ii.
iii.
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;
Such spare parts that the C/BSPMC may be able to purchase from other
suppliers/manufacturers but are compatible with the goods procured; and
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 a certification 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/or hard-to-find
spare parts in the technical specifications when procuring heavy equipment or machinery.
This is to ensure the continued use or operation of the equipment.
6.6. Prices
The contract price must not vary from the price quoted by the supplier in its bid. This is
based on the rule that the contract, as awarded, should not differ in any material aspect from
the terms stipulated in the bidding documents, considering that these terms were the basis
for the comparison of bids. Otherwise, the purpose of the Community Bidding process would
have been defeated.
For KC-NCDDP funded sub-projects, no price escalation is allowed.
6.7. Payments
The method and conditions of payment must be specified in the contract in accordance with
the provisions of the Community based Finance Manual.
6.8. 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 total project cost. The bidding
documents must specify what are considered as significant/material component/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.
6.9. Standards
The goods supplied under the contract must conform to the standards mentioned in the
technical specifications, which must be compliant to applicable Philippine national
standards. 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.

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 its
subcontractor(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/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.
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 Suppliers 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
6.12.1. 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 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;
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 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/BSPMCs 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
suppliers 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.
ii.
a.
b.
c.
d.
iii.
iv.
v.
vi.
vii.
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;
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:
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;
the extent of termination, whether in whole or in part;
an instruction to the Supplier to show cause as to why this Contract should not be
terminated, and;
Special instructions of the C/BSPMC, if any.
The Notice to Terminate shall be accompanied by a copy of the Verified Report;
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;
The C/BSPMC may, at any time before receipt of the Suppliers 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
Suppliers receipt of the notice;
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;
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 with previous or current
issues during his/her participation in the KALAHI-CIDSS implementation as determined by
the project that is/are not in accordance with the principles and process of the Program. This
include the act of harassment14 to Community Volunteers, Project Staff (ACT, RPMO,
NPMO), and other Project stakeholders; misrepresentation or using another
supplier/contractor business permit/license; unsatisfactory performance due to unjustified
slippage of 15% and above, breach of contract and others as deemed necessary by the
Project. The blacklisted suppliers shall be recommended to the Government Procurement
Policy Board - Technical Support Office (GPPB-TSO) or to appropriate government agency
for any sanctions applicable. Blacklisted contactors shall be referred to the Philippine
Contractors Accreditation Board (PCAB) for license suspension/revocation.
14 Coersive, threats, misdemeanor, unlawful demands and any violative actions in violation of the Program
principles and process.
CHAPTER SEVEN: CONTRACT

IMPLEMENTATION FOR COMMUNITY
BASED WORKS
7.1. Subcontracting
7.2. Contractors Program of Works
7.4. Dayworks
7.5. Measurement of Works
7.6. Contractors Obligations and
Responsibilities
7.7. Contract Price and Payment
7.8. Variation Orders
7.9. Suspension of Work
7.10. Contract Time Extension
7.11. Delays in
Work Completion
and
Liquidated Damages
7.13. Contract Completion
7.14. Warranty and Defects Liability Period
7.15. Settlement of Disputes
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:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
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.
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.
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.
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.
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
Community Empowerment Facilitator responsible for reviewing and ensuring
that all procurement, finance and contract implementation documents are in
accordance with the requirements and procedures
Technical Facilitator 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 TF and
the Municipal Engineer serves as the Project Supervisor for the sub-project
Area Coordinator (AC) responsible for signing checks for payments
Community Infrastructure Officer (CIO) responsible for providing technical
assistance to the community on matters related to the implementation of works
contracts.
Contract implementation covers the following important milestones: contractors

performance of his contractual obligations; C/BSPMCs 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. Contractors 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 Contractors 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.

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
Supervisors 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 contractors 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 contractors
authorized agent, who must:
i.
ii.
Attend or send a qualified representative to assist the Project Supervisor in

making such measurement; and
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. Contractors 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 skilled and unskilled local labor shall include women, where applicable,
and shall receive equal compensation with men. 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 free from 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.
Requirements and procedures should conform to the Community Based Finance Manual.
7.7.1. Advance Payment

The contractor can request for advance payment which must not exceed fifteen percent
(15%) of the total contract price. 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 30% of
the work had been accomplished. Thereafter, payments can be made upon submission
of Progress Billing or a request for payment for work accomplished. Such request for
payment, including the Statement of Work Accomplished by the contractor, must be
verified by the TF or Municipal Engineer. 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 contractors 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%) deducted every
progress payment to be withheld by the C/BSPMC to cover the uncorrected defects and
third party liabilities.
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, provide a bank guarantee in an amount equivalent to
the retention money.
7.7.4. Final Payment

The contractor may request for final payment upon one hundred percent (100%)
completion of the work.
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.
ii.
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 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.
ii.
iii.
That there will not be any short changes in the original design;
That it will not affect the structural integrity and usefulness of the structure; and
That it is within the approved sub-project fund.
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 TF or Municipal Engineer and the Regional
Program Management Office.
The C/BSPMC Chairperson, may, authorize the immediate start of work under any Change
or Extra Work Order, subject to any or all of the following conditions:
i.
ii.
In the event of any emergency where the execution of the work is urgent to avoid any
detriment to public service, or damage to life and/or property; and/or
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 TF 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 contract cost.
If the adjustments provided for in a Variation Order costs more than ten percent (10%) of the
original contract cost, 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 TF 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 new work 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 contractors 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
contractors statement for progress payment.
The following must be undertaken in issuing a Variation Order:
i.
ii.
a.
b.
c.
d.
iii.
iv.
v.
vi.
vii.
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.
If the TF 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:
Notices submitted by the contractor;
The plans to effect the adjustments;
The contractors 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
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.
The TF 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.
After being satisfied that such Change Order or Extra Work Order is justified and necessary,
the TF or Municipal Engineer shall review the estimated quantities and prices.
If, after review of the plans, quantities and estimated unit cost of the items of the work
involved, the TF or Municipal Engineer finds that the Change Order or Extra Work Order is in
order and covered by the Sub-project Funds, the same shall be approved.
The C/BSPMC shall notify the contractor to proceed with the work/delivery of items in
accordance with the amendment.
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 due to
the following:
a.
b.
c.
d.
i.
Force majeure or any fortuitous event; or
ii.
Failure on the part of the contractor to:
Correct bad conditions which are unsafe for workers or for the general public;
Carryout valid orders given by the Project Supervisor;
Perform any provisions of the contract; or
Adjustment of plans to suit field conditions as found necessary during construction.
The contract shall specify a period of seven (7) calendar days from date of receipt of the
written order or notice, after which the said order may take effect and 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 contractors 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.
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.
Work must be resumed either upon notice from the C/BSPMC of the lifting of the suspension
order or upon the expiration of the suspension order.
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 thereof,
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 applicable 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, 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. It has to be
done before the expiration of the contract.
iv. The C/BSPMC will approve the request of the contractor for contract extension upon
validation and recommendation of the TF or the Municipal Engineer that the request
warrants for 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 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 BSPMC for an extension of the completion or
construction period, citing the reason/s for such delay, subject to the approval of the
BSPMC.
ii. If the extension is granted, the liquidated damages shall not be imposed and the contractor
will be so informed in writing.
iii. If, however, the request for extension is denied, the BSPMC shall inform the contractor in
writing of such denial, and ensure that the said notice or communication is received by the
latter within a 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.
If the Contractor incurs a delay and there is no request for extension:
i.
The PIT shall, within a reasonable time from the first day of delay, inform the contractor that
the C/BSPMC will impose the liquidated damages agreed upon by the parties.
ii. Upon contract completion, the PIT and the MIT with the assistance of the TF or Municipal
Engineer shall record the delay in the inspection documents, noting the amount of the
liquidated damages imposable on the contractor.
iii. The amount of liquidated damages due shall be deducted from the total amount payable to
the contractor.
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 provided in Section 6.3. The liquidated
damages will be imposed until such works are finally delivered or performed and
accepted by the C/BSPMC. 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
total contract amount. If it does, the contract shall be 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 contractor through direct
contracting. In addition to the liquidated damages, the erring contractors performance
security shall also be forfeited.

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:
i.
ii.
iii.
Due to the contractors fault and while the project is on-going, it has incurred
negative slippage of fifteen percent (15%) or more, without acceptable
justification;
Due to the contractors 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
The contractor:
a. Abandons the contract works, refuses or fails to comply with a valid instruction of the
C/BSPMC or fails to proceed immediately 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-contract 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 contractors performance security. The contractor will also be
recommended for blacklisting in all KC-NCDDP procurements. The contractor
shall be paid on actual accomplishment.
7.12.2. Termination of Contract for Unlawful Acts

The C/BSPMC may terminate the contract in case validated 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.
ii.
iii.
iv.
Corrupt, fraudulent, collusive and coercive practices;

Drawing up or using forged documents;
Using adulterated materials, means or methods, or engaging in production
contrary to rules of science or the trade; and
Any other act analogous to the foregoing.
The contractor shall be paid based on actual accomplishment.
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 based on actual accomplishment.
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/BSPMCs 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 Sub-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 similar to the abovementioned.
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 partys control, such as wars and acts of God such as
earthquakes, floods, fires, etc.
7.12.7. Payment
In any case or bases of termination, actual accomplishment as inspected and accepted
by the C/BSPMC and ACT/MCT shall be paid.
7.13. Contract Completion
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.
The Contractor shall request the C/BSPMC to issue a certificate of completion of the Works
upon completion of the punch-list. The TF 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 TF 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 TF 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
Contractors 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 Contractors 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 TF 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 be 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:
i.
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 be held liable;
ii. TF and/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 noncompliance by a user with the technical design limits
and/or intended purpose of the same, then the user concerned shall be held liable.
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
8.1.
8.2.
8.3.
8.4.
Importance of Community Procurement

Monitoring
Community Procurement Compliance
Monitoring
Project Billboard
Community Procurement Performance
Monitoring
8.5.
8.6.
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 compliance
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 loans 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 Community Empowerment Facilitator (CEF) is designated to conduct the procurement
review in order to monitor procurement compliance for goods and works. The CEF is
expected to possess a working knowledge of procurement procedures to determine
community compliance, to detect the red-flags and abnormalities to help resolve issues
related to the procurement at hand. The Technical Facilitator (TF) being the ACT Focal
Person for Community Procurement shall recommend risk mitigation measures to address
these issues, red-flags and weaknesses. The CEF shall conduct a review of all
procurements of each C/BSPMC at least once during the implementation and completion of
the contract/purchase order. The objective of the procurement review is to assess
procurement and to come up with as action plan to address any issues identified.
There are four important steps that the CEF must follow in procurement compliance
monitoring. These are:
i.
ii.
iii.
iv.
Checking the completeness of the procurement and finance documents by filling

up the simplified checklist found in CBPM Form G-1;
Completing the Procurement Compliance Monitoring Report (PCMR) Form
(CBPM Form G-2) within one month after the award of each contract;
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 ACT level, a formal report shall be submitted to the
SRPMO and 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.
Upon completion of all the PCMR, the TF 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 SubRegional Program Management Office (SRPMO). The SRPMO shall thereafter
consolidate all submitted reports of the ACTs and forward it to the RPMO. The
RPMO thru its Regional Procurement Officer (RPO) 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 ACTs 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 Program
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 KC-NCDDP 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 KC-NCDDP.
The Procurement Performance Monitoring Report (PPMR) format is shown in CBPM Form
G-3.
Procurement accomplishment is reported on a monthly basis 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 TF 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 TF 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.
ii.
iii.
iv.
The TF 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 using the geotagging facilities
and procedures;
The TF shall prepare a report using the Procurement Performance Monitoring
Report Form for submission to the ACT. For works, the TF shall refer to the
Barangay Sub-Project Work Schedule & Physical Progress Report;
The TF shall prepare a consolidated report for all communities under its
jurisdiction and shall submit the same to the RPMO;
Consequently, the RPMO through the Regional Procurement Officer (RPO) 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 bi-annual basis, the NPMO 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 G-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, 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 communitys 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-NCDDP procurement 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, post-qualification, 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.
Community Direct 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; contractors performance of his contractual obligations; procuring
entitys 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 for procurement at hand.
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.
Eligibility Check - a procedure used to determine if a prospective bidder is eligible to
participate in the procurement 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, mayors 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 as reflected in the Community
Procurement Plan.
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 e.g. natural disasters or any man-made calamities
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 (IB) outlines the specific instructions that the bidder needs to
follow in the preparation of his/her bid.
Invitation to Bid (ITB) - 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, stated in section
6.3, 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 communitys 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. Process involves negotiations
within the Barangay Assembly (BA).
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 Bidders
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 Entitys representatives and the
Prospective Bidders discuss the different aspects of the procurement at hand.
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.
Procurement Preparation Meeting 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.
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. (Blacks
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 Invitation
to Bid (ITB), request for proposals (RFP), request for quotations (RFQ), or request for
tenders.
Retention Money - refers to the amount retained from progress payment to cover
uncorrected discovered defects and third party liabilities. This is equivalent to 10% of all
progress payments. Upon issuance of Certificate of Completion by the 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.
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. Upon approval of the
Barangay Assembly, a retention may be required for contracts below P1.0M as
justified in the assembly.
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 as allowed by
this manual 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 (Blacks 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 mayors permit/municipal license from the suppliers 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
DURATION (IN CALENDAR DAYS)
ACTIVITIES
DEADLINE
GOODS
WORKS
MIN
MAX
MIN
MAX
Preparation of Request
for Quotation
Conduct of Procurement
Preparation Meeting
Posting of Notice of
Once for a
minimum period
of 3 c d
Issuance of Request for

Quotation
Contractors Conference
for P1M and above
contracts
Conducted at
least 3 days prior
to
submission of
quotation
Site Visit or Inspection

(any day prior to
submission of quotation)
Submission and Opening
of Quotations
Quotation Evaluation
Post-qualification
Prior Review of Contract
(No Objection Letter)
Sub-Total
5 (RPMO)
5 (RPMO)
5 (RPMO)
5 (RPMO)
13
17
16
25
Issuance of Notice of
Award
PO/Contract Preparation
and Signing
Issuance of PO or Notice
to Proceed
TOTAL
16
20
23
39
COMMUNITY DIRECT CONTRACTING

DURATION (in calendar days)
Activities
Deadline
GOODS
WORKS
Min
Max
Min
Max
Preparation of Request
for Quotation
Preparation Meeting
Posting of Notice of
(for information)
Issuance of Request for
Quotation
Once for a
period of 3 c d
Contractor Conference
and Site Visit or
Inspection
of Request for Quotation
Quotation Evaluation
5 (RPMO)
5 (RPMO)
5 (RPMO)
5 (RPMO)
11
15
12
17

Sub-Total
Award
PO/Contract Preparation
and Signing
Issuance of PO or Notice
to Proceed
TOTAL
14
18
19
31
COMMUNITY BIDDING
ACTIVITIES
Preparation of Bidding
Documents
Preparation Meeting
Posting of Invitation to
Bid
Issuance of Bidding
Documents
Conduct of Pre-Bid
Conference
Site Visit or Inspection
of Bids
Bid Evaluation
Post-qualification
Sub-Total
Award
DEADLINE
DURATION (IN CALENDAR DAYS)

GOODS
WORKS
MIN
MAX
MIN
MAX
1
3
1
3
1
Once for a
minimum period
of 7 c d
7-14CD from
posting of IB
14
14
5-7 days before

bid opening
1
1
1
1
1
1
1
1
1
1
2
2
1
1
3
3
5 (RPMO)
5 (NPMO)
5 (RPMO)
5 (NPMO)
5 (RPMO)
5 (NPMO)
5 (RPMO)
5 (NPMO)
25
36
25
38
Contract Preparation and

Signing
Issuance of Notice to
Proceed
TOTAL
31
51
31
53

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NCDDP Revised CBPM Volume One Oct 2015 Version

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Department of Social Welfare and Development

CHAPTER TWO: PROCUREMENT ORGANIZATION AND CAPACITY

CHAPTER THREE: PROCUREMENT PLANNING FOR COMMUNITY BASED

3.4.3. Identification of Appropriate Procurement Methods...........................................23

CHAPTER FOUR: COMMUNITY BASED PROCUREMENT METHODS AND

4.4. POSSIBLE TYPES OF COMMUNITY PROJECTS REQUIRING PROCUREMENT....................................29

CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES. . .32

5.6.7. Preparation, Submission and Receipt of Bids.....................................................61

5.6.7.2 Technical Proposal...................................................................................................... 63

5.6.8. Bid Opening and Evaluation...............................................................................66

Forms and Corresponding Amounts of Bid Security.....................................................68

Forms and Corresponding Amounts of Performance Security......................................74

6.12. CONTRACT TERMINATION.......................................................................................... 105

CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY

CHAPTER EIGHT: COMMUNITY BASED..............................................125

IMPORTANCE OF COMMUNITY PROCUREMENT MONITORING..................................................126

Area Coordinating Team

Community Empowerment Activity Cycle

Philippine Government Electronic Procurement System

CHAPTER ONE: GENERAL PROVISIONS

1.5. Principles in Community Based

2.1. Organizational Structure at the

Figure 1: Barangay Sub-Project Organization Structure

2.2. Community/Barangay Sub-Project

2.3. Bids and Awards Committee (BAC)

2.4. Procurement Team

2.5. Technical Working Group

2.7. Functions and Responsibilities

Acts for and in behalf of the barangay as Procuring Entity;

2.7.2. Bids and Awards Committee

Advertises and /or posts the invitation to bid;

2.7.3. Procurement Team

2.7.4 Technical Working Group

Taken steps to carefully examine all of the bidding documents;

2.8. Other Procurement Stakeholders

2.8.1. Community Level

Project Management Team (NPMT) and International Development Partners (such as

2.8.2. Municipal and Regional Level

2.8.2.6. Regional Procurement Officer (RPO) responsible in overseeing the overall

2.9. Capacity Building for Community

2.9.1. General Orientation on Community Based Procurement

2.9.2. Skills Training

2.9.3. Job Coaching and Mentoring

CHAPTER THREE: PROCUREMENT

3.1. Community Empowerment Activity

Figure 2. Procurement Related Activities under the CEAC Process

3.2. Procurement Planning

Figure 3. Community Procurement Planning Process

Preparation of Technical Specifications

3.3. Preparation of the Program of Works

3.3.1. Technical Specifications, Scope of Work and Terms of Reference

performance, environmental interface and design standard requirements to be met by the

Standards and technical specifications quoted in the bidding documents should

3.4. Preparation of the Initial Community

3.4.1. Market Survey for Goods, Works and Consulting Services

3.4.2. Preparation of Procurement Packages

3.4.2.1. Examples of Procurement Packages

Under a Single Contract or Several Contracts

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

Package 3: (for one material available from only one supplier)

The number of procurement packages may be determined by the number of

300 Linear Meter (PCCP)