Revised NCDDP Procurement Manual Volume 2

NATIONAL
COMMUNITY
DRIVEN
DEVELOPMENT
l PROGRAM
(NCDDP)
Department of Social Welfare and Development
KALAHI-CIDSS
NATIONAL COMMUNITY DRIVEN DEVELOPMENT PROJECT
(NCDDP)
COMMUNITY BASED
PROCUREMENT
MANUAL
VOLUME ONE
(October 2015)
ii
Table of Contents
ACRONYMS, ABBREVIATIONS .............................................................. VI
CHAPTER ONE: GENERAL PROVISIONS FOR COMMUNITY BASED
PROCUREMENT...................................................................................... 1
1.1. PURPOSE ............................................................................................................................................................ 2
1.2. SCOPE................................................................................................................................................................ 2
1.3. COVERAGE .......................................................................................................................................................... 3
1.4. APPLICATION ....................................................................................................................................................... 3
1.5. 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
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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
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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 Various Procurement
Personnel ......................................................................................................................................................... 84
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 Various Procurement
Personnel ......................................................................................................................................................... 91
Table 8. Matrix of Procedures for Community Bidding for Works with Functions of Various Procurement
Personnel ......................................................................................................................................................... 93
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
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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. CONTRACTOR’S PROGRAM OF WORKS ................................................................................................................. 111
7.3. INSPECTION AND TESTS ..................................................................................................................................... 111
7.4. DAYWORKS ..................................................................................................................................................... 112
7.5. MEASUREMENT OF WORKS................................................................................................................................ 112
7.6. CONTRACTOR’S OBLIGATIONS AND RESPONSIBILITIES .............................................................................................. 113
7.7. CONTRACT PRICE AND PAYMENT ......................................................................................................................... 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. IMPORTANCE OF COMMUNITY PROCUREMENT MONITORING ................................................................................... 126
8.2. COMMUNITY PROCUREMENT COMPLIANCE MONITORING........................................................................................ 126
8.3. PROJECT BILLBOARD ......................................................................................................................................... 128
8.4. COMMUNITY PROCUREMENT PERFORMANCE MONITORING ..................................................................................... 128
8.5. INTEGRATED PROCUREMENT COMPLIANCE AND PERFORMANCE MONITORING REPORT ................................................. 129
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8.6. 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
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ACRONYMS, ABBREVIATIONS
ACT Area Coordinating Team
BA Barangay Assembly
BAC Bids and Awards Committee
BDC Barangay Development Council
C/BSPMC Community/Barangay Sub-Project Management Committee
CBPM Community Based Procurement Manual
CD Calendar Days
CDD Community Driven Development
CEAC Community Empowerment Activity Cycle
CENRO Community Environment and Natural Resource Management Officer
CFA Community Force Account
CFMS Community Financial Management System
CIO Community Infrastructure Officer
COA Commission on Audit
CPO Community Procurement Officer
CPP Community Procurement Plan
CSO Civil Society Organization
DSWD Department of Social Welfare and Development
DA Department of Agriculture
DENR Department of Environment and Natural Resources
DEPED Department of Education
DOH Department of Health
DPWH Department of Public Works and Highways
DTI Department of Trade and Industry
DV Disbursement Vouchers
ECPP Emergency Community Procurement Plan
GOP Government of the Philippines
GPRA Government Procurement Reform Act
ITB Invitation to Bid
IPCPMR Integrated Procurement Compliance and Performance Monitoring
Report
IRR Implementing Rules and Regulations
IB Instruction to Bidders
vi
KALAHI- CIDSS Kapit-bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery
of Social Services
KC-NCDDP KALAHI-CIDDS National Community Driven Development Program
LCB Lowest Calculated Bid
LCC Local Counterpart Contribution
LCCQ Lowest Calculated and Complying Quotation
LCRB Lowest Calculated and Responsive Bid
LCRQ Lowest Calculated and Responsive Quotation
LGC Local Government Code
LGU Local Government Unit
MAO Municipal Agricultural Officer
ME Municipal Engineer
MENRO Municipal Environmental and Natural Resource Office
MFA Municipal Financial Analyst
MIAC Municipal Inter Agency Committee
MIBF Municipal Inter-Barangay Forum
MIT Monitoring and Inspection Team
NDRRMC National Disaster Rick Reduction Management Council
NFCC Net Financial Contracting Capacity
NOA Notice of Award
NOL No Objection Letter
NPMO National Project Management Office
NPMT National Project Management Team
NRM Natural Resources Management
NRQ Notice of Request for Quotation
NTP Notice to Proceed
OR Official Receipt
PCAB Philippine Contractors Accreditation Board
PCMR Procurement Compliance Monitoring Report
PDNA Post-Disaster Needs Assessment
Phil-GEPS Philippine Government Electronic Procurement System
PIAC Provincial Inter Agency Committee
PIT Project Implementation Team
PNS Philippine National Standards
PO Purchase Order
POW Program of Works
PPMR Procurement Performance Monitoring Report
PPT Project Preparation Team
PS Project Supervisor
PT Procurement Team
RCIS Regional Community Infrastructure Specialist
RFQ Request for Quotation
ROW Right of Way
RPM Regional Program Manager
RPMO Regional Program Management Office
RPMT Regional Program Management Team
RPO Regional Procurement Officer
RTA Resolution to Award
SEC Securities and Exchange Commission
SOW Scope of Work
vii
SPA Special Power of Attorney
TA Technical Assistance
TAF Technical Assistance Fund
TF Technical Facilitator
TWG Technical Working Group
WB World Bank
viii
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
1.1. 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 of
government-owned facilities and those projects included in the negative list discussed in Section
4.4 of this manual.
1
KALAHI-CIDSS stands for Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social
Services.
2
1.3. Coverage
The procedures provided in this CBPM shall cover all procurements of goods and services,
infrastructure or works projects and consulting services under the Community Empowerment
Activity Cycle (CEAC) stages of social preparation; project identification, preparation, selection
and planning; and implementation of sub-projects.
1.4. Application
The procurement procedures provided in this manual shall apply to the following:
1. Goods and services – This refers to all items, supplies, materials, and general support
services which may be needed in undertaking the project related activities or in the
operations of the Community/Barangay Sub-Project Management Committee
(C/BSPMC). This includes, among others, equipment (transport, production, post
production, processing and storage), furniture, office supplies, construction materials,
agricultural or aquacultural inputs, seedlings or trees, hand tools. It also refers to 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 Services–This refers to services provided by external technical service

providers2 or experts that are beyond the capacity of the C/BSPMC or Local Government
Unit (LGU) staff to undertake such as but not limited to feasibility studies; engineering and
architectural design; construction supervision; capacity building; and, special studies,
among others.
1.5. Principles in Community Based

Procurement
Community based procurement under the KC-NCDDP shall be governed by the following
principles:
2
Service providers referred to in these guidelines pertain to suppliers, contractors and consultants.
3
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
community’s 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.
4
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
5
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
6
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 5th Barangay Assembly after the Municipal Inter-Barangay
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
5. Volunteer professionals in the community with expertise related to the sub-project (if any)
3
The BSPMC executive committee is composed of the BSPMC chairperson and heads of teams under the BSPMC as
shown in Figure 1.
7
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. Acts for and in behalf of the barangay as Procuring Entity;

ii. Ensures that the procurement procedures and requirements are in
accordance with the CBPM;
iii. Acts on the recommendations of the BAC and approves or disapproves the
award of contracts and purchase orders;
iv. Reviews and signs Resolution to Award (RTA)
v. 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;
vi. Issues Notice of Award (NOA) and Notice to Proceed (NTP)
vii. Imposes the necessary administrative sanctions on errant members of the PT
and BAC and bidders in accordance with appropriate rules and regulations.
2.7.2. Bids and Awards Committee
The Bids and Awards Committee (BAC) has the following functions and responsibilities:
i. Advertises and /or posts the invitation to bid;

ii. Conducts pre-procurement and pre-bid conferences;
iii. Determines eligibility of prospective bidders;
8
iv. Receives bids;
v. Conducts the evaluation of bids with assistance of the TWG;
vi. Undertakes the post-qualification proceedings;
vii. Recommends the award of contract to C/BSPMC Chairperson; and
viii. Performs such other related functions as may be necessary, including the
creation of Technical Working Group from a pool of technical, financial and/or
legal experts to assist in the procurement process
2.7.3. Procurement Team
The Procurement Team (PT) has the following functions and responsibilities:
i. Acts as Secretariat and provides administrative support to the BAC (organize and
attend meetings, assist in the drafting of resolutions, minutes);
ii. Prepares and takes custody of procurement documents;
iii. Prepares and delivers invitation to bid and requests for quotation
iv. Prepares 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:
i. Observes and assesses the extent of compliance with the substantive and
procedural requirements of this manual;
ii. Where there are findings of substantive or procedural irregularities (red flags) in the
procurement at hand, bring this to the attention of the 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;
9
iii. Signs as witness in the Records of Bid Opening, Abstract of Bids, Post Qualification
Report and in the Resolution to Award.
2.7.6. Bidders
An eligible bidder shall be responsible for having:
i. Taken steps to carefully examine all of the bidding documents;

ii. Acknowledged all conditions, local or otherwise, affecting the implementation of the
contract;
iii. Made an estimate of the facilities available and necessary requirements for the
contract to be bid, if any; and
iv. Complied with his responsibilities as stipulated in the instruction to bidders and in
the condition of contracts and relevant project regulations that may affect the
contract in any way.
2.8. Other Procurement Stakeholders

In addition to the key procurement related personnel discussed above, there are other stakeholder
who are in one way or another involved in the community based procurement process. These
individuals and their functions and responsibilities include the following:
2.8.1. Community Level
2.8.1.1. C/BSPMC Bookkeeper–responsible for keeping records of procurement and

financial management transactions and documents for the sub-project from planning to
implementation
2.8.1.2. Monitoring and Inspection Team (MIT) - 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
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,
10
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.
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
11
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
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
12
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.
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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.
Survey of Prevailing Market

Rate and Labor Rate
Stage 1:
Social Preparation
Inventories of Available
Suppliers/Contractors/Service
Providers
Stage 4:
Community Monitoring
COMMUNITY EMPOWERMENT
ACTIVITY CYCLE Stage 2:
Actual Procurement
Community Planning and
Implementation Project Proposal
Development
Stage 3:
Community Volunteers’ Community-managed Preparation of Initial CPP
Training on Procurement
and Finance
Implementation and
Organization Formation
and Development
Formation of BSPMC,
BAC and PT members
Review and
Finalization of CPP
Figure 2. Procurement Related Activities under the CEAC Process
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
Volunteer’s Training for Procurement and Finance and actual Procurement Implementation.
15
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.
Figure 3 provides an overview of the procurement planning process for community based
subprojects.
Figure 3. Community Procurement Planning Process
Preparation of Technical
Preparation of Specifications
Sub-project Identification, Program of Terms of Reference
Selection and Planning Works Final Program of Work
Items to be procured
Number of Packages
Procurement Methods
Preparation of Estimated Costs and
Initial CPP Schedule of Fund Release
Proposed Implementation
Schedule
Finalization of
Sub-Project Implementation 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.
16
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,
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. 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.
ii. 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).
iii. Environmental interface refers to the environment in which the required functions are
performed at the desired level. For example, in the case of water pumps, the
environment will help determine the kind and type of pump priming (centrifugal, twin
screw, progressive cavity, electric submersible, buffer tank) to be procured.
i. 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 manufacturer’s compliance to the requirements of a
Philippine National Standard (PNS). The BPS authorizes a manufacturer to affix the PS mark
on its product or its product’s packaging material, to let the buying public know that the
marketed product has successfully passed Department of Trade and Industry (DTI)
requirements.
It is important to note that the use of brand names is prohibited. This limits competition,
fairness and the provision of other alternatives that may be of better quality and price.
Specifications for the procurement of goods shall be based on relevant characteristics and/or
17
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.
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. 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;
ii. 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:
18
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 municipality’s commercial center to check for
possible suppliers and prevailing prices. The survey should also check the availability of
goods, equipment and construction materials with the appropriate PS mark that meet the
required technical specifications. Please refer to CBPM Form A-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.
19
Case 1: Grouping of Requirements in a Category (Goods, Works, Services)
Under a Single Contract or Several Contracts
Example: For the following list of construction materials, depending on the availability of
suppliers in the locality, this can be grouped or package into only one, or more
procurement packages (where suppliers can supply all the materials needed).
Particulars Quantity Unit

Selected Filling Materials 50 cubic meter
Aggregate Base Coarse 40 cubic meter
Sand 30 cubic meter
Boulders 20 cubic meter
Portland Cement 100 bags
16 mm diameter RSB x 6M 110 pieces
2"x3"x10' Coco Lumber 500 board foot
1/4" thick Ordinary Plywood 12 pieces
3 inches CWN 15 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 50 cubic meter

Aggregate Base Coarse 40 cubic meter
Sand 30 cubic meter
Boulders 20 cubic meter
Package 2: (for different types of materials available from one supplier)
Portland Cement 100 bags

1/4" thick Ordinary Plywood 12 pieces
3 inches CWN 15 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
20
Example: For a road project with common work items such as: Item 100 (Clearing and
Grubbing), Item 105 (Sub-grade Preparation), Item 200 (Aggregate Sub-Base
Coarse), Item 201 (Aggregate Base Coarse), Item 311 (Portland Cement Concrete
Pavement), Item 500 (Reinforced Concrete Pipe Culvert), Item 505 (Grouted Riprap)
packaging can be as follows:
Possible Packaging
Option 1: (one package since all items can be undertaken by one contractor)
Item 105 Sub-grade Preparation

Item 200 Aggregate Sub-Base
Item 201 Aggregate Base Coarse
Item 311 300 Linear Meter Item 311 (PCCP)
Item 500 RCPC (0.61M diameter)
Item 505 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 Sub-grade Preparation

Item 200 Aggregate Sub-Base
Item 201 Aggregate Base Coarse
Package 2: or more (this can be done through Pakyaw Contracts since materials and
labor are available in the community by one or two pakyaw groups)
Item 311 300 Linear Meter (PCCP)

Item 500 RCPC (0.61M diameter)
Item 505 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:
21
Deep Well Drilling and installation of pipe casing 400 feet
Supply of Submersible Pump and Motor 1 unit
Supply of concrete water tank 1 unit
Construction of pump house 1 unit
Option 1: (one package since all items can be undertaken by one contractor)
Option2: (two or more packages since some items can be done by one or more
contractors or through pakyaw contracts and equipment can be provided by a supplier)
Package 1: (this can be done through Community Bidding or Shopping by a drilling

contractor depending on the package threshold since the items of work are
mechanized)

Deep Well Drilling and installation of pipe casing 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)

Supply of Submersible Pump and Motor unit
1
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)

Supply of concrete water tank 1 unit
Construction of pump house 1 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 “No-Objection-Letter” (NOL)
requirement from the National Project Management Office (NPMO) or the funding donors
(World Bank, ADB, others) or to favor certain suppliers or contractors. Members of the
C/BSPMC, the Procurement Team or colluding bidders, who are found guilty of contract
22
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).
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 sub-
projects 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 required when requesting for the
second tranche. For a 50-40-10 tranching, the required physical accomplishment is 30%; for
4
For emergency procurement in SPs due to disaster/calamity sub-projects, the first tranche may be up to 90%.
23
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.
24
CHAPTER FOUR: COMMUNITY BASED
PROCUREMENT METHODS AND SUB-
PROJECTS
4.1. Community Participation in Procurement

4.2. Community Based Procurement Methods
4.3. Thresholds for the Use of Community-
Based Procurement Methods and Prior
Review Requirements
4.4. Possible Types of Community Projects
Requiring Procurement
25
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.
4.2. Community Based Procurement

Methods
The following are the generally acceptable methods of procurement for community based
subprojects:
5
To be consistent with RA 9184 IRR and ADB and WB Guidelines
26
1. Community Shopping
2. Community Bidding
3. Community Direct Contracting
4. Repeat Order
5. Small Value Procurement
5.1. Off-the Shelf Goods
5.2. Short Term Services
5.3. Small Works
6. Single Source Selection or Individual Consultant 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 Threshold Amount Prior/Post Review Requirement Threshold (P)
(P)
RPMO NPMO
Community Bidding
- Works 2.0 M & above 2.0 M & above

- Goods 1.0 M & above 1.0 M but less than 2.0 M 2.0 M & above
Community Shopping
- 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
27
- Works None all Post
- Goods None all Post
Direct Contracting due to Two Failed Biddings
- Works None all all

- Goods None all 2.0 M & above
Direct Contracting due to Emergency
- Works None 2.0M and above Post

- Goods None 2.0M and above Post
Community -to- Government Agency
Arrangements
- Works None 1.0M Post
- Goods None 1.0M Post
Direct Contracting due to Contract Termination
- Works None all Post

- Goods None all Post
Direct Contracting for Adjacent and Contiguous Projects
- Works None all
Repeat Order
- Goods 50% of the quantity all Post
of each item in the
previous contract
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 1.0 M and above
Consultant Selection
Pakyaw Contract
- Works (labor only) 100,000.00

- Works (labor with local 300,000.00
6materials)
Variation Order for Works Up to 10% of All

Contracts original contract
cost
Variation Order for No Threshold but All
Community Participation in must satisfy the
Procurement (By requirements of
Administration) 7In case of Section 7.8
Savings Utilization
Aggregated contracts 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
28
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 contracts 8 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:
4.4.1. Construction, Repair, Improvement, Upgrading of Small Scale Infrastructure

1. Access/Barangay roads;
2. Bridges (footbridge, reinforced concrete, cable foot, rural road bridge);
3. Pathways for pedestrians;
8
Prior review for aggregated contracts aims to determine the capacity of contractor/supplier to perform the works or deliver the
goods/services required.
29
4. School buildings/classrooms for basic education (elementary and high school);
5. Day care centers;
6. Barangay Health Center;
7. 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. Seawall
2. Slope protection
3. River control;
4. Drainage;
5. 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);
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;
9
Please refer to NCDDP Disaster Response Operations Manual
30
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;
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.
31
CHAPTER FIVE: COMMUNITY BASED
PROCUREMENT PROCEDURES
5.1. Community Shopping for Goods and Works

5.2. Community Direct Contracting for Goods and
Works
5.3. Community Repeat Order for Goods
5.4. Small Value Procurement for Goods and Works
5.5. Pakyaw Contracts 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
32
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.
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. Request for Quotation (RFQ Form)

ii. Acknowledgement Receipt
33
iii. Abstract of Quotations
iv. Purchase Order
v. Technical Specifications
For Works,
i. Request for Quotation (RFQ)

ii. Contract Agreement
iii. Technical Specifications
iv. Drawings, if applicable
v. Bill of Quantities
vi. 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
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. Technical plans, specifications, scope of work;

ii. Engineering/architectural plans and designs;
iii. Availability of the right-of-way (ROW) or ownership
of affected properties;
iv. Cost estimates,
v. Quotation Forms, and
vi. Notice of Request for Quotations
vii. 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)
34
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. 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;
ii. The date, time and place for the deadline for the submission, receipt and
opening of quotations;
iii. Delivery schedule for goods or contract duration for works;
iv. The name, address of the designated contact person;
v. Such other necessary information deemed relevant by the BAC.
5.1.5. Issuance of Request for Quotation
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 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 mayor’s permit/municipal license from the supplier’s principal place of
business with no outstanding record of being blacklisted by any government agency or local
government unit. In case of previous or existing suppliers to KC-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
35
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
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
36
the date specified. If the quotation is submitted before the deadline, the PT member records
receipt in the logbook with the following information:
i. Name of Goods/Works Project to be Procured

ii. Name of Supplier/Contractor
iii. Date and Time Received
iv. Name and signature of procurement team member
receiving the sealed enveloped
Suppliers or contractor who were not issued RFQ’s but submitted quotations shall be
considered for evaluation. The sealed quotations and logbook will be placed at C/BSPMC
office inside a secure filing cabinet. Any quotations submitted after the deadline shall be
declared “Late” and shall not be accepted.
5.1.8. Opening and Evaluation of Quotations
5.1.8.1. Opening of Quotations
The BAC shall invite the following to assist in the review and evaluation of quotations on
the day specified for the opening of the quotations: 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
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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 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 contractor’s 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 a“0” (zero) for the said
item would mean that it is being offered for free.
ii. Minor arithmetical corrections to consider computational errors and omissions shall
be made to enable proper comparison of all quotations. Discounts shall be incorporated
in the quotation for each work item. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.
iii. All bids shall be evaluated on 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.
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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.
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):
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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:
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
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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 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
41
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:
i. Where there is only one supplier/contractor in the municipality or vicinity capable of

providing the goods, services or works (known as Direct Contracting);
ii. Where there has been failure of community bidding for the second time (Direct
Contracting due to Two Failed Biddings);
iii. 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);
iv. 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)
v. 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);
vi. 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);
vii. 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. No bids are received;

ii. All prospective bidders are declared ineligible;
iii. All bids fail to comply with all the bid requirements or fail post qualification;
iv. 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:
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i. The community shall provide sufficient justification indicating that entering into an
Community-to-Government 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.
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-project’s approved
program of works (POW)/ proposal.
Direct Contracting due to Contract Termination may happen in any of the following
instances:
i. There is breach of contract or termination for default (either by the C/BSPMC or the
contractor/supplier).
ii. If the contract is abandoned by contractor.
iii. The C/BSPMC terminated the contract for convenience, in whole or in part, as it
determined the existence of conditions that make project implementation
economically, financially or technically impractical and/or unnecessary, such as, but
not limited to, fortuitous event(s) or changes in law and national government policies.
iv. Due to unlawful acts that include, but are not limited to, the following: (a) corrupt,
fraudulent, collusive and coercive practices; (b) drawing up or using forged
documents; and, (c) any other act analogous to the foregoing.
Direct Contracting for Adjacent or Contiguous Projects may be resorted to under any
of the following conditions:
i. The original contract is the result of a Community Shopping, Direct Contracting or

Bidding;
ii. The subject contract to be negotiated has similar or related scopes of work;
iii. It is within the contracting capacity of the contractor;
iv. The contractor uses either an acceptable price, the same or lower unit prices as in
the original contract less mobilization cost based on prevailing market conditions;
v. The amount involved does not exceed the amount of the on-going project; and
vi. For contractors of previous KC projects, a proven satisfactory track record in the
completion of such projects;
vii. Negotiations for the procurement are commenced before the expiry of the original
contract.
The following procedures are applicable for all types of contracts procured under community direct
contracting.
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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.
5.2.2. Preparation of the Request for Quotation (RFQ)
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. Technical Plans/Specifications;
ii. Cost estimates/Bill of Quantities;
iii. Quotation Forms, and
iv. Availability of the pertinent budget release for the project.
The PT, BAC, C/BSPMC, and Project Implementation Team (PIT) meet to discuss the
procurement at hand and to ensure that all requirements are in order. The Municipal
44
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 sub-
projects, 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 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. Brief description of the goods to be procured or the type, size, major items, and
other important or relevant features of the works;
ii. The date, time and place for the deadline for the submission, receipt and opening
of quotations;
iii. 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.
45
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.
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. Name of Goods/Works Project to be Procured

ii. Name of Supplier/Contractor
iii. Date and Time Received
46
iv. Name and signature of procurement team member receiving the sealed
enveloped
The sealed bids and logbook will be placed at C/BSPMC office inside a secure bid box
stored in a filing cabinet. For failed biddings, any quotations submitted after the deadline
shall be declared “Late” and shall not be accepted.
5.2.7. Opening and Evaluation of Quotation
5.2.7.1. Opening of Quotation
The BAC shall invite the following to assist in the review and evaluation of quotation on
the day specified for the opening of the quotations: 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 supplier’s/contractor’s 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:
47
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-to-Government 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 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
48
NOL has been issued by the appropriate authority before the NOA is sent to the winning
contractor.
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,
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. The original contract must have been procured through community bidding, shopping
or direct contracting;
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ii. 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;
iii. 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.
iv. The repeat order shall be availed of only within three (3) months of the original
contract;
v. It shall not result in splitting of contracts, requisitions or purchase orders.
The following procedures are applicable for all types of contracts procured under community repeat
order.
5.3.1. Identification of Items for Community Repeat Order
The Project Implementation Team (PIT) shall request 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. The review of the technical specifications;

ii. Confirmation from the PIT of the necessity and quantity of the additional
requirements;
iii. Confirmation that the price and the terms of the original contract is most
advantageous to the community;
iv. Existence of the conditions required for procurement through community repeat
order.
5.3.3. 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
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.
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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
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 pro-
forma 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.
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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 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
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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.
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.
10
The Project Supervisor shall be a hired foreman with knowledge and experience on construction.
53
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.
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.
11
Evaluation procedure but not necessarily at least three Pakyaw Groups
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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.
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
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award and the amount of the contract should be announced to all bidders. Contracting will follow
the forms specified in this manual.
The following procedures are applicable for all types of contracts procured under community
bidding.
5.6.1. Identification of Items for Bidding
The Procurement Team identifies the items to be procured through Community Bidding from
the approved Community Procurement Plan (CPP) based on the technical specifications for
goods and the Program of Work (POW) for works. This is then submitted to the Chairperson
of the Barangay Sub-Project Management Committee (C/BSPMC) and the Bids and Awards
Committee (BAC) for review and validation.
5.6.2. Preparation/Revision of the Bidding Documents
Bidding documents are documents issued by the BAC to provide prospective bidders all 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;
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.
documents to be used:
For Goods:
i. Invitation to Bid (ITB) (CBPM Form D-1)
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)
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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;

ii. Cost estimates;
iii. Applicability and appropriateness of the recommended method
of procurement and the related milestones;
iv. Bidding documents, and
v. Availability of the pertinent budget release for the project.
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.
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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 Inter-
Agency 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 KC-
NCDDP 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 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-
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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: Invitation to Bid (ITB) (CBPM Form D-1)
Section 2: Instructions to Bidders (IB)
Section 3: Bid Data Sheet
Section 4: Conditions of Contract
Section 5: Standard Bidding Forms for Goods
For Works:
Section 1: Invitation to Bid (ITB) (CBPM Form E-1)
Section 2: Instructions to Bidders (IB)
Section 3: Bid Data Sheet
Section 4: Conditions of Contract
Section 5: Standard Bidding Forms for Works and Technical Plans
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. The Technical, Legal and Financial documents, technical and financial components of
the contract to be bid, the bid evaluation procedure, evaluation criteria, post-
qualification procedures and possible causes of failure of the bidding;
ii. Other requirements in the Instruction to Bidders (IB), the replies to the bidders’ queries
about the requirements, specifications and other conditions of the contract.
iii. 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.
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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.

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
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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
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. 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).
ii. Department of Trade and Industry (DTI) business name registration in the
case of Single Proprietorships; or Security and Exchange Commission (SEC)
registration certificate, in the case of Partnerships or Corporations; or CDA
Registration, in the case of cooperatives;
iii. Valid and current Mayor’s 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)
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Financial Documents
i. The prospective bidder’s audited financial statements, stamped “received” by
the BIR or its duly accredited and authorized institutions, for the immediately
preceding calendar year, showing, among others, the prospective bidder’s
total and current assets and liabilities;
ii. The prospective bidder’s computation of its Net Financial Contracting

Capacity (NFCC) (CBPM Form D-5) that is at least equal to the project cost
estimate, calculated as follows:
NFCC = [(Current assets minus current liabilities) (K)] minus the value of
all outstanding projects under ongoing contracts, including awarded
contracts yet to be started.
Where:
K = 10 for a contract duration of one year or less, 15 for a contract duration
of more than one year up to two years
The NFCC establishes the bidder’s liquidity, its capacity to absorb the
additional obligations in connection with the contract to be bid and to finance
its implementation/completion.
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 E-3);
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 bidder’s audited financial statements, stamped “received” by
the BIR or its duly accredited and authorized institutions, for the immediately
preceding calendar year, showing, among others, the prospective bidder’s total
and current assets and liabilities;
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ii. The prospective bidder’s 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.
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 bidder’s 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:
For Goods:
i. The Bid Security as to form, amount and validity period
ii. Authority of the signatory (Board Resolution if the bidder is a corporation or
a cooperative, a Partnership Resolution if the bidder is a Partnership;
iii. Delivery schedule;
iv. Manpower requirements, if applicable;
v. After-sales service/parts, if applicable;
vi. Technical specifications;
Although the community is not allowed to refer to brand names in setting
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.
vii. Omnibus Sworn Statement (Affidavit) (CBPM Form D-8);
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viii. Certificate of Site Inspection signed by the C/BSPMC Chairperson (CBPM
Form D-2)
ix. Other documents/materials as stated in the Instructions to Bidders (IB).
For Works:
i. The Bid Security as to form, amount and validity period

ii. Authority of the signatory (Board Resolution if the bidder is a corporation or
a cooperative, a Partnership Resolution if the bidder is a Partnership);
iii. Construction schedule (bar chart or PERT/CPM) and S-curve;
iv. Manpower schedule (weekly or monthly scheduling of skilled and unskilled
workers, including the Project Manager, Project Engineers, Materials
Engineers, and Foremen);
v. Construction methods (narrative description of how the contractor will
undertake the works under the contract;
vi. Organizational chart for the contract to be bid,
vii. List of contractor’s key personnel (viz. the Project Manager, Project
Engineers, Materials Engineers, and Foremen), to be assigned to the
contract to be bid, their complete qualification and experience data, and the
key personnel’s signed written commitment to work on the contract once
awarded to the contractor (CBPM Form E-11);
viii. List of contractor’s equipment units pledged for the contract to be bid, which
are owned (supported by proof/s of ownership), leased, and/or under
purchase agreements (with corresponding engine numbers, chassis
numbers and/or serial numbers), supported by certification of availability of
equipment from the equipment lessor/vendor for the duration of the contract
(CBPM Form E-10);
ix. Equipment utilization schedule (weekly or monthly scheduling of the
minimum equipment required for the contract);
x. Certificate of Site Inspection signed by the C/BSPMC Chairperson (CBPM
Form E-2);
xi. Construction safety and health program of the contractor;
xii. 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 contractor’s
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 (Attorney-
in-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.
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5.6.7.3. Financial Proposal
The Financial Proposal shall contain the following financial

information/documents, at the least:
For Goods:
i. Form of Bid (CBPM Form D-9),
ii. Financial Proposal Sheet (using the ITB as a Price Schedule) (CBPM
Form D-1);
iii. The recurring and the maintenance costs, if applicable.
For Works:
i. Form of Bid (Bid Offer Letter) (CBPM Form E-9);
ii. Financial Proposal Sheet (using the ITB as a Bill of Quantities) (CBPM
Form E-1), ;
iii. 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
iv. 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. Date and time received

b. Name of goods for procurement/Name of Project or Contract to be Bid
c. Name of Supplier/Contractor
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d. Name and signature of procurement team member receiving the sealed
enveloped
The sealed bids and logbook will be placed in a bid box at C/BSPMC office inside a secure
filing cabinet.
Any technical or financial bid submitted after the deadline for submission and receipt of
bids prescribed by the BAC shall be declared “Late” and shall not be accepted.
5.6.8. Bid Opening and Evaluation
Before the prescribed date of the opening of bids, the BAC shall invite the following to witness
the process as observers: the LGU COA Auditor, Barangay Captain, local government
officials, Area Coordinator, 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?
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.
5.6.8.1. 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 bidder’s 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.
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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
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.
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Forms and Corresponding Amounts of Bid Security
The bid security shall be in any of the following forms, with the corresponding required
amount:
FORM OF BID SECURITY MINIMUM AMOUNT

a. Cash, cashier’s check/manager’s check; or 2% of Bid
b. Bank guarantee confirmed by a reputable local bank; or 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, manager’s check or cashier’s check must be deposited
in the C/BSPMC Account. All checks and bank guarantees shall be issued in favor of the
C/BSPMC of the community/barangay. Personal checks 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 BAC’s request for an extension of
the period of validity of their bid and bid security will have the same returned to them.
However, they are deemed to have waived their right to further participate in the bidding.
A Bid Securing Declaration is an undertaking by a prospective bidder, committing to

abide with the bidding conditions including sanctions in the event it violates any of the
following conditions:
i. Withdraws its bid during the period of bid validity required in the bidding
documents; or
ii. Fails or refuses to accept the award and enter into contract or perform any and all
acts necessary 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. Automatically banned for two (2) years in all KC-NCDDP procurement activities,
and;
ii. Payment of a fine equivalent to the difference between the evaluated bid price and
the Estimated Budget for the Package (EBP).
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No bid securities shall be returned to bidders after the opening of bids and before contract
signing, except under any of the following circumstances:
i. When the bidders failed to comply with any of the requirements to be submitted in
the bid proposal (Disqualified Bidders), or
ii. When the bidders were post-disqualified.
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 bidder’s bid security may be forfeited when:

i. The bidder withdraws its bid beyond the deadline;
ii. The bidder does not accept correction of arithmetical errors;
iii. The bidder being considered for award does not accept the award or does not sign
the contract within the period prescribed in the bidding documents;
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. Establishing the correct calculated prices of the bids, through a detailed evaluation
of the financial component of the bids; and
ii. Ranking of the total bid prices as so calculated from the lowest to the highest.
The bid with the lowest price shall be identified as the LCB.
The entire evaluation process for the evaluation of bids for the procurement of goods must
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 Engineer’s
Estimate and that there are no mathematically or materially unbalanced work items. If
there is any finding of an unbalanced bid, the BAC, may ask the bidder to explain the
bid. If the BAC with the assistance of the TWG is satisfied with the explanation of the
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bidder, then the BAC will proceed with the other considerations for bid evaluation. If
there is a finding of an attempt to defraud, the BAC shall recommend to the C/BSPMC
Chairperson to reject the bid.
iii. Computational errors will be corrected. Minor arithmetical corrections to consider

computational errors and omissions shall be made to enable 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. Name of the contract and its location, if applicable;

ii. Time, date and place of bid opening; and
iii. Names of bidders and their corresponding calculated bid prices arranged from
lowest to highest, the amount of bid security and the name of the 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
bidder’s 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 (supplier’s
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 bidder’s stated competence and experience with regards to the
subject contract and its bidding documents, as well as the competence and experience of its
key personnel to be assigned to 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 bidder’s key personnel were
not met; all of which are grounds for disqualification if found by the BAC to be due to the
bidder’s fault or negligence. Finally, the BAC shall also ascertain the sufficiency of the bid
security as to type, amount, form and wording, and validity period.
For goods, the financial requirements are validated to check the Net Financial Contracting
Capacity (NFCC) in the amount specified over the 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 bidder’s 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 bidder’s stated net worth
and liquid assets, net working capital, the value of all outstanding or unfinished works under
ongoing contracts, and the bidder’s NFCC, as recalculated considering developments in the
bidders’ other projects, whenever applicable. This is done to ensure that the bidder can
sustain the operating cash flow of the contract. This process involves: the examination of the
Bill of Quantities, Detailed Estimates and Cash Flow; and the Bureau of Internal Revenue
(BIR) received audited financial statement.
If the TWG conducts the post-qualification, it prepares a Post-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 post-qualification. 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.
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
72
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.
73
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.
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:
1. The bidder with the LCRB posts a performance security. In so doing, it must
comply with the following conditions:
i. The performance security must be executed in the form prescribed by
the community in the IB; and
ii. The performance security must at least be co-terminus with the period
of completion of the contract.
2. The community accepts the performance security and indicates such posting and
acceptance by attaching the appropriate form to the contract.
Forms and Corresponding Amounts of Performance Security
The performance security shall be in any of the following forms, with the
corresponding required amount:
FORM OF PERFORMANCE SECURITY MINIMUM AMOUNT

a. Cash, cashier’s check/manager’s check; or 5% of Contract Price
b. Bank guarantee confirmed by a reputable local bank; or 10% of Contract Price
74
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 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,
75
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
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
76
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.
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.
77
5.7.2. Preparation of Request for Proposal/Quotation
Upon approval of the RPMO/NPMO of the request to utilize the TAF and to hire consultants,
the AHPT shall prepare the following:
For Consulting Firms
i. A short list of eligible service providers for qualification selection (for firms to be
eligible, they must meet the qualification requirements stated in the TOR);
ii. Request for Proposal Forms;
iii. Consultancy Agreement/Contract;
iv. Abstract of Technical/Financial Proposals;
v. Terms of Reference, as approved
For Individual Consultants or Service Providers
i. 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
ii. Curriculum Vitae/Resume Forms;
iii. Consultancy Agreement;
iv. Terms of Reference, as approved
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. Dates of submission and opening of proposals;

ii. Evaluation criteria, preparation and submission of work plan/schedule of
activities including the cost breakdown;
iii. CEAC schedule and procedures for MIBF-Project Development Planning and
Resource Allocation (PDPRA) where the technical outputs of the service
providers are critical in the identification and selection of sub-projects for the
barangay to avail of project grants.
iv. Process review of the technical outputs and leveling-off on the technical
standards of the Project;
v. Conditions of the contract, (e.g., schedule for submission of deliverables and
basis and mode of payment).
In the same meeting, the BAC will review and approve the proposal forms and contents of the
Notice of Request for Proposals (NRFP) and the Chairperson will sign the form for posting.
The AHPT will prepare the minutes of the procurement preparation meeting and the Lead
Barangay will keep a copy of all the documents. The procurement preparation meeting shall
78
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. Experience of the firm related to the proposed projects (30%)

ii. Plan, approach, methodology or schedule (30%)
iii. Experience and qualification of individual experts based on the TOR (40%)
5.7.4. Posting of Notice of Request for Proposal (NRFP)
The BAC may post the Notice of Request for Proposal (NRFP) for a period of at least three
(3) days for information purposes only at any of the following: municipal/ barangay hall bulletin
boards, KC-NCDDP designated billboard or bulletin board, offices of Municipal Inter-Agency
Committee (MIAC).
The Notice of Request for Proposal shall contain the following information:
i. Brief description of the services to be procured;

ii. The date, time and place for the deadline for the submission, receipt and
opening of proposals;
iii. Contract duration;
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
79
The Technical Proposal should contain, at the minimum, the following technical
information/documents:
i. List of completed and on-going projects;

ii. Approach, work plan, and schedule; and
iii. List of key personnel to be assigned to the contract to be bid, with their complete
qualification and experience data.
CONTENTS OF THE FINANCIAL PROPOSAL FOR QUALIFICATION SELECTION
The Financial Proposal shall contain the following financial information/documents, at the
least:
i. Remuneration cost indicating the basic salary, overhead cost, and

management fee for consulting firms;
ii. Reimbursable cost; and
iii. Other items as may be required in the TOR.
The financial proposal should clearly estimate the value added tax, income tax, local taxes,
duties, fees, levies and other charges, as applicable.
The purpose of the evaluation of 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.
80
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.
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.
81
Table 2. Matrix of Procedures for Community Shopping for Goods with Functions of Various Procurement Personnel
Procedures Time Frame SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO/
ADB/WB
1. Identify items for 1 cd Identify items for Review items to be Review items
Community Shopping procurement procured to be procured
from approved CPP
2.Prepare Requests for 1 cd Prepare quotation Review Review quotation
Quotation Form documents quotation s forms forms
3.Conduct of 1cd Discuss procurement Discuss Discuss Discuss CEF calls for the
Procurement at hand procurement at procurement at procurement meeting TF
Preparation Prepare minutes hand hand at hand provides
Meeting technical
assistance and
acts as resource
person
4. Posting of Notice of Once for a Posts NRQ
Request for Quotation minimum of 3
cd
5. Issuance of Request 2c d Issues quotation CEF to accompany
for Quotation Form forms PT members
6. Submission and 3cd Prepares Receives the sealed

Receipt of Quotations quotation quotations on or
and submits before the deadline
the
same to the
BAC
7. Opening and 1c d Receives all quotation Invites TWG and Signs the minutes Assists the TF provide
Evaluation of Prepares minutes of AIT Head of meeting and BAC in the technical assistance
Quotations quotation evaluation to assist in Abstract of evaluation of
Prepares Abstract of quotation Quotation quotations
Quotations evaluation
Opens quotations
and checks
responsiveness of
quotation
82
Procedures Time Frame SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO/
ADB/WB
8. Prior Review of Not more than Signs the Abstract C/BSPMC Reviews contract
Contract 15 days if it of Quotation Chair documents and
requires Requests for issues NOL
RPMO and 30 Clearance to
days if Award
NPMO/WB
9. Contract Award 1c d Signs the PO Prepares and delivers Signs the PO
the PO to the winning
supplier.
Provides copies of PO
and its supporting
documents to LGU
COA and RPMO.
10. Contract As specified in Delivers Compiles copies of all MIT and TWG
Implementation the PO goods as documents for inspects and
provided in consolidation with receives goods and
PO. other project related signs PO and
documents delivery receipt
83
Table 3. Matrix of Procedures for Community Shopping for Works with Functions of Various Procurement Personnel
Procedures Time SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO/A
Frame D B/WB
1. Identify items for Community 1 cd Identify items for Review items Review items
Shopping from approved CPP procurement to be procured to be procured
2.Prepare Notice of Request for 1 cd Prepare IFQ Review IFQ Review IFQ
Quotation documents documents documents and
(NRFQ) and forms forms
3.Conduct of Procurement 2cd Discuss Discuss Discuss Discuss CEF calls for
Preparation procurement at procurement procurement at procurement the meeting
Meeting hand at hand hand at hand TF provides
Prepare minutes Sign NRQ for technical
posting assistance
and acts as
resource
person
4. Posting of Notice of Request for Once for a Posts NRQ
Quotation (NRQ) minimum of 3
cd
5. Issuance of Request for 1cd Issues RFQ CEF to
Quotation At least 5 forms accompany PT
days before members
the deadline
of
submission of
quotations
6. Conduct of Conference for At least 3 Attends Prepares required Attends Attends TF to attend
Shopping for Works days before conference documents and conference conference conference and
the deadline minutes Invites Project Chairperson provide
of Implementatio issues technical
submission of n Team (PIT), Certificate of assistance
quotations Municipal Site
Implementatio Inspection to
n Team (MIT), participating
Municipal contractors
Engineer, TF
and
contractors
84
Procedures Time SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO/A
Frame D B/WB
7. Submission and Receipt of 3cd Prepares Receives the
Quotations quotation and sealed
submits the quotations on or
same to the before the
BAC deadline
8. Opening and Evaluation of Not more Receives all Invites TWG Assists the TF provide
Quotations than 2 days quotations and PIT Head BAC in the technical
Prepares to assist in evaluation of assistance
minutes of quotation quotations
quotation evaluation
evaluation Opens
Prepares quotations
Abstract of and checks
quotations responsivenes
s of quotation
9. Prior Review of Contract Not more C/BSPMC Reviews contract

than 5 days Chair documents and
upon Requests for issues NOL
receipt of Clearance to
NOL Award
documents
10. Contract Award 1cd Signs the Prepares and Signs the
contract Posts delivers the contract
the required contract Approves and
performance Provides LGU signs the
security COA and RPMO contract
with copies of PO
and supporting
documents
11. Contract Implementation As specified Mobilizes and Compiles copies PIT, MIT and
in the starts work as of all documents TWG
contract provided in for consolidation inspects and
contract May with monitors
request for other project status of
advance related accomplishmen
payment documents t
85
Table 4. Matrix of Procedures for Community Direct Contracting for Goods with Functions of Various Procurement Personnel
Procedures Time SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO

Frame /AD B/WB
1. Identify items for Community Direct 1 cd Prepare items for Review items to Review
Contracting from approved CPP procurement be procured items
to be
procured
2.Prepare Requests for Quotation 1 cd Prepare documents Review forms Review
forms
3.Conduct of Procurement 1cd Discuss Discuss Discuss Discuss CEF calls for the
Preparation procurement at hand procurement at procuremen procurement meeting TF
Meeting Prepare minutes hand t at hand at hand provides
Sign NRQ for technical
posting assistance and
acts as resource
person
4. Posting of Notice of Request for Once for a Posts NRQ
Quotation minimum of 3
cd
5. Issuance of Request for Quotation 2cd Issues quotation CEF to accompany
Form forms PT members
6. Submission and Receipt of 3cd Prepares Receives the sealed
Quotations quotation quotations on or
and submits before the deadline
the
same to the
BAC
7. Opening and Evaluation of 1cd Receives all Invites TWG and Assists the TF provide
Quotations quotation Prepares AIT Head BAC in the technical assistance
minutes of quotation to assist in evaluation of
evaluation quotation quotations
Prepares Abstract of evaluation
Quotation Opens
quotations and
checks
responsiveness
of quotation
86
Procedures Time SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NPMO
Frame /AD B/WB
8. Prior Review of Contract Not more C/BSPMC Reviews
than 30 days Chair contract
Requests documents and
for issues NOL
Clearance
to
Award
9. Contract Award 1cd Signs the PO Prepares and Signs the
delivers the PO PO
Provides LGU COA Approves
and RPMO with and
copies of PO and signs the
supporting PO
documents
10. Contract Implementation As specified Delivers Compiles copies of MIT and
in the PO goods as all documents for TWG
provided in consolidation with inspects
contract other project related and
documents receives
goods and
signs PO
and delivery
receipt
87
Table 5. Matrix of Procedures for Community Direct Contracting for Works with Functions of Various Procurement Personnel
Procedures Time Frame SUPPLIER PT BAC C/BSPMC TWG ACT RPMO/NP
MO/ADB/
WB
1. Identify items for Community 1 cd Prepare items for Review items Review items
Direct procurement to be procured to be procured
Contracting from approved CPP
2.Prepare Requests for 1 cd Prepare Review forms Review forms
Quotation documents
3.Conduct of Procurement 1cd Discuss Discuss Discuss Discuss CEF calls for the
Preparation Meeting procurement at procurement at procurement at procureme meeting TF provides
hand hand hand nt at hand technical assistance
Prepare minutes Sign NRQ for and acts as resource
posting person
4. Posting of Notice of Request Once for a Posts NRQ
for minimum of 3 c
Quotation d
5. Issuance of Request for 1cd Attends the site Issues quotation Issues a CEF to accompany PT
Quotation inspection as forms Certificate of members
Form may be Site
applicable Inspection as may
be applicable
6. Submission and Receipt of Within 5 days Prepares Receives the

Quotations after issuance quotation and sealed quotations
of IFQ submits the on or before the
same to the deadline
BAC
7. Opening and Evaluation of 1cd Receives all Invites TWG Assists the TF provide technical
Quotations quotation and PIT Head BAC in the assistance
Prepares to assist in evaluation
minutes of quotation of
quotation evaluation quotations
evaluation Opens
Prepares quotations and
Abstract of checks
Quotation responsivenes
s of canvass
88
MO/ADB/
WB
8. Prior Review of Contract/ Procurement C/BSPMC Reviews
NOL issuance action not more Chair contract
than 5 Requests for documents
days upon Clearance to and issues
receipt of NOL Award NOL
Documents
9. Contract Award 1cd Signs the Prepares and Signs the PO
contract and delivers the PO Approves and
posts required Provides LGU signs the PO
performance COA and RPMO
security with copies of PO
and supporting
documents
10. Contract Implementation As specified in Mobilizes and Compiles copies PIT, MIT and
the contract starts work as of all documents TWG
provided in for consolidation inspects and
contract May with monitors
request for other project status of
advance related accomplishment
payment documents
89
Table 6. Matrix of Procedures for Pakyaw Contracts for Works with Functions of Various Procurement Personnel
Procedures Time PAKYAW GROUP PT BAC C/BSPMC CEF/PIT/MIT TF/ME
Frame
1. Organization of Pakyaw C/BSPMC to hire/ CEF to enlist
Groups appoint PS available labor in
PS to assist the community
organize
community labor
into
Pakyaw groups
2. Identify items Covered by 1 cd Identify items of work Review items Review items Assist the
Pakyaw Contract in approved for Pakyaw PT
CPP
3.Conduct of Negotiations on 1 cd Attend meeting Prepare minutes Call for Review forms Discuss work Discuss
Pakyaw meeting to requirements and the
discuss scope assignments, technical
of work and timetables, aspect of
technical specs contract cost, the
payment subproject
arrangements
4.Contract Award 1cd GL sign contract Prepare contract Sign contract
5. Contract Implementation As specified Mobilizes and starts Compiles copies of PIT, MIT to inspect Conduct
in the work all documents for and regularly regular
contract as provided in contract consolidation with monitor works inspection
other project related executions
documents
90
Table 7. Matrix of Procedures for Community Bidding for Goods with Functions of Various Procurement Personnel
MO/ADB/
WB
1. Identify items for 1 cd Prepare items for Review and validate Review and
Community Bidding from procurement items to be procured validate items
approved CPP to be procured
2.Prepare/revise bidding Prepare bidding Review bidding Review bidding CEF and TF assists
documents documents documents documents in the review
3.Conduct of Procurement 1cd Discuss Discuss procurement at Discuss Discuss CEF calls for the
Preparation procurement at hand procurement at procurement meeting TF
Meeting hand Sign IB for posting hand at hand provides
Prepare minutes technical
assistance and
acts as resource
person
4. Posting/advertisement 2cd Posts Invitation to Approves issuance of IB CEF ensures wide
of Invitation to Bid Once for a Bid circulation of ITB
minimum
period of 7 c d
5. Issuance of Bidding 2 weeks from Issues bidding Approves issuance of TF to provide
Documents date of documents bidding documents technical assistance
posting of IB
6. Conduct of Pre-Bid 1cd Attends Prepares required Attends prebid Attends pre-bid TF to attend
Conference At least 7 prebid documents, conference Invites conference prebid conference
days before conference minutes and Project Implementation Chairperson and provide
deadline for supplemental bid Team (PIT), Municipal issues technical
bid bulletins where Implementation Team Certificate of Site assistance
submission applicable (MIT), Municipal Inspection to
Engineer, TF and bidders participating
bidders
7. Preparation, As prescribed Prepares Receives the
Submission and Receipt in the bidding technical and sealed bids on or
of documents financial before the
Bids proposal and deadline
submits the
same to the
BAC
91
MO/ADB/
WB
8. Issuance of Within 2 days Submits Posts Issues TF to provide
Supplemental/Bid after pre-bid request for Supplemental/Bid Supplemental/ technical assistance
Bulletins conference clarification Bulletin Bid Bulletin
9. Eligibility and Bid Not more than Prepares Invites Assists the TF to attend bid
Opening and Evaluation 5cd barangay hall for Observers to witness bid BAC in the opening and
bid opening Places opening evaluation of provide technical
received bids in Opens bid proposal and bids and assistance
bid box checks compliance with requirements
Prepares minutes requirements according
of bid evaluation to procedures Examines
Prepares Abstract bids using “pass/fail
of Bids criteria”
10. Post-qualification 2cd Conducts Signs the Assists the
verification and validation Resolution and BAC in the
of submitted legal, Notice to conduct of
technical and financial Award post-
bidding documents qualification
11. Prior Review of Not more than C/BSPMC Issues NOL
Contract 30 days Chair
Requests for
Clearance to
Award
12. Contract Award Maximum of Signs the Prepares contract Signs the NOA Assists the Reviews
10c d contract documents and and contract BAC in the contract
Posts the Notice of Award Approves and preparation documents
required Delivers the NOA signs the of resolution and issues
Performanc Provides LGU contract and notice to NOL
e COA and RPMO award
Security with
copies of contract
and supporting
documents
13. Contract As provided Delivers Compiles copies of MIT, Municipal
Implementation in the contract goods as all documents for Engineer, TF
provided in consolidation with Monitors delivery of
contract other project goods
related documents Conducts regular
visit of project site
92
Table 8. Matrix of Procedures for Community Bidding for Works with Functions of Various Procurement Personnel
Procedures Time Frame CONTRAC PT BAC C/BSPMC TWG ACT RPMO/NP
TOR MO/ADB/
WB
1. Identify items for 1 cd Prepare items for Review and Review and
Community Bidding procurement validate items to validate items
from approved CPP be procured to be procured
2.Prepare/revise bidding Prepare bidding Review bidding Review bidding CEF and TF
documents documents documents documents assists in the
review
3.Conduct of 1cd Discuss Discuss Discuss Discuss procurement CEF calls for
Procurement procurement at procurement at procurement at at hand the meeting
Preparation hand hand hand TF provides
Meeting Prepare minutes Sign IB for posting technical
assistance
and acts as
resource
person
4. 2cd Posts Invitation to Approves issuance CEF ensures
Posting/advertisement Once for a minimum Bid of IB wide circulation
of Invitation to Bid period of 7 c d of ITB
5. Issuance of Bidding 2 weeks from date of Issues bidding Approves issuance TF to provide
Documents posting of IB documents to of technical
eligible bidders bidding documents assistance
6. Conduct of Pre-Bid 1cd Attends Prepare required Attends prebid Attends pre-bid TF to attend
Conference At least 7 days before prebid documents, minutes conference Invites conference pre-bid
deadline for bid conference and supplemental Project Chairperson conference
submission bid bulletins where Implementation issues and provide
applicable Team (PIT), Certificate of technical
Municipal Site Inspection assistance
Implementation to participating
Team (MIT), bidders
Municipal
Engineer, TF and
bidders
93
Procedures Time Frame CONTRACT PT BAC C/BSPMC TWG ACT RPMO/N
OR PMO/AD
B/WB
7. Preparation, As prescribed in the Prepares Receives the
Submission and Receipt bidding documents technical and sealed bids on or
of financial before the deadline
Bids proposal and
submits the
same to the
BAC
8. Issuance of Within 2 days after Submits Posts Issues TF to provide
Supplemental/Bid pre-bid conference request for Supplemental/Bid Supplemental/ technical
Bulletins clarification Bulletin Bid Bulletin assistance
9. Eligibility and Bid Not more than 5 c d Prepares barangay Invites Assists the BAC in TF to attend
Opening and Evaluation hall for bid opening Observers to the evaluation of bids bid opening and
Places received witness bid and requirements provide
bids in bid box opening Opens technical
Prepares minutes bid proposal and assistance
of bid evaluation checks
Prepares Abstract compliance with
of Bids requirements
according to
procedures
Examines bids
using “pass/fail
criteria”
10. Post-qualification 2cd Conducts Signs the Assists the BAC in
verification and Resolution and the conduct of post-
validation of Notice to qualification
submitted legal, Award
technical and
financial bidding
documents
11. Prior Review /NOL Period of action 12not C/BSPMC
more than 15 days for
Chair
Dev’t Partner, 5 for
NPMO and 5 for RPMO Requests for
upon receipt of the Clearance to
procurement documents Award
12
Procurement actions such as comments, observation, recommendations for compliance or NOL shall be issued within the timeline/period of action
94
Procedures Time Frame CONTRACT PT BAC C/BSPMC TWG ACT RPMO/N
OR PMO/AD
B/WB
11. Prior Review /NOL Period of action 13not C/BSPMC
more than 15 days Chair
for Dev’t Partner, 5 Requests for
for Clearance to
NPMO and 5 for Award
RPMO upon receipt
of the procurement
documents
12. Contract Award Maximum of 10 c d Signs the Prepares contract Signs the NOA Assists the Reviews
contract Posts documents and and contract BAC in the contract
the required Notice of Award Approves and Preparation of documents
Performance Delivers the NOA signs the resolution and issues
Security Provides LGU COA contract and notice to award NOL
and RPMO with
copies of contract
and supporting
documents
13. Contract As provided in the Starts the work Compiles copies of PIT and MIT,
Implementation contract as provided for all documents for monitors
in the contract consolidation with accomplishment
other project related of work
documents 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
95
Table 9. Matrix of Procedures for Qualification/Single Source/Individual Consultant Selection for Consulting Services with Functions
of Various Procurement Personnel
Procedures Time CONSULTAN AHPT AHBAC LEAD TWG ACT RPMO/NPMO
Frame T BARANGAY
1. Submission of request to hire 5cd TAF eligible TF to assist in AC to certify to
consultants utilizing the TAF communities to the preparation that agreement
submit request of the TOR to
to hire consultants
RPMO/SRPMO followed CEAC
to use TAF for process
consulting RPMO/SRPMO
services to
Lead Barangay review and
to be elected approve request
as contracting and create TWG
party and open
community
account
2.Prepare Request for Quotation 3 cd Prepare Assist in the

procurement preparation of
documents the documents
3.Conduct of Procurement Preparation 1cd Attend Discuss Discuss Discuss Discuss CEF calls for
Meeting conference procurement at procurement procurement at procurement the meeting
hand at hand hand at hand TF provides
Prepare minutes Review and Sign NRFP for technical
approve posting assistance
documents
4. Posting of Notice of Request for At least 3 cd Posts NRFP Authorizes
Proposal posting of
NRFP
5. Issuance of Request for Proposal Within 3 Secures RFP Issues RFP to TF to provide
(RFP) days from and prepares shortlisted firms technical
posting of requirements and individuals assistance
NRFP
6. Submission, Receipt and Evaluation of At least 3 Submits all Receives Reviews and Invites Auditor, Assist in the TF to attend
Proposals days after requirements proposals evaluates AC review and provide
issuance of proposals evaluation of support and
RFP proposals technical
assistance
96
Procedures Time CONSULTAN AHPT AHBAC LEAD TWG ACT RPMO/NPMO
Frame T BARANGAY
7. Prior Review /NOL As Requests for Reviews
determined Clearance to documents and
by RPMO Award issues NOL
and NPMO
8. Contract Award Maximum of Signs the Prepares contract Signs the NOA Assists the
10 c d contract documents and and contract AH BAC in
Notice of Award Approves and the
Delivers the NOA signs the Preparation
Provides LGU contract of resolution
COA and RPMO and notice to
with award
copies of contract
and supporting
documents
13. Contract Implementation As provided Starts the work Compiles copies Municipal
in the as provided for of all documents Auditor, TF
contract in the contract for consolidation monitors
with accomplishment
other project of work and
related conducts
documents regular review
of outputs
97
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. 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.
ii. Monitoring and Inspection Team (MIT) – is responsible for monitoring and inspecting
whether the deliveries of goods and services are in accordance with the purchase
order and technical specifications and undertaking quality control of delivered items.
The Monitoring and Inspection Team is composed of community volunteers selected
by the Barangay Assembly for this purpose.
iii. Audit and Inventory Team (AIT) – is responsible for conducting value for money
audit and for ensuring the funds are utilized according to the required procedures. The
Audit and Inventory Team is composed of community volunteers selected by the
Barangay Assembly for this purpose.
iv. Municipal Inter-Agency Committee (MIAC) – is responsible for providing technical
assistance to the community in the implementation of the contract.
v. Municipal Financial Analyst – responsible for processing vouchers and checks for
payment purposes and for keeping and maintaining copies of procurement, finance
and contract implementation documents at Area Coordinating Team (ACT) Office
vi. Community Empowerment Facilitator – responsible for reviewing and ensuring that
all procurement, finance and contract implementation documents are in accordance
with the requirements and procedures
vii. Technical Facilitator – responsible for providing technical assistance to the
community, reviewing requests for variation or change orders and validating
accomplishment reports among others
viii. 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) supplier’s performance

of his contractual obligations; b) C/BSPMC’s 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. The PIT determines the existence of a force majeure or fortuitous event that will be the
basis for the issuance of a suspension order.
ii. 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.
iii. 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
supplier’s performance security shall also be forfeited.
The following steps shall be followed in the imposition of liquidated damages:

i. The supplier submits a written request to the PIT for an extension of the delivery
or performance period, citing the reason/s for 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. Performance or supervision of on-site assembly and/or start-up of the supplied

goods;
ii. Furnishing of tools required for assembly and/or maintenance of the supplied
goods;
iii. Furnishing of a detailed operations and maintenance manual for each appropriate
unit of the supplied goods;
iv. 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;
v. Training of the C/BSPMC ’s personnel, at the supplier’s plant and/or on-site, on
assembly, start-up, operation, maintenance, and/or repair of the supplied goods;
and;
vi. 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. Such spare parts as the C/BSPMC may elect to purchase from the supplier, provided
that this election shall not relieve the supplier of any warranty obligations under the
contract;
ii. Such spare parts that the C/BSPMC may be able to purchase from other
suppliers/manufacturers but are compatible with the goods procured; and
iii. In the event of termination of production of the spare parts:
a. Advance notification to the C/BSPMC of the pending termination, in sufficient time

to permit the C/BSPMC to procure needed requirements; and
b. Following such termination, furnishing at no cost to the C/BSPMC the blueprints,
drawings, and specifications of the spare parts, if requested.
The supplier may likewise be required to issue 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 Supplier’s delay in performance or other
failure to perform its obligations under the Contract is the result of a force majeure.
For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used
interchangeably. In this regard, a fortuitous event or force majeure shall be interpreted to
mean an event which the Supplier could not have foreseen, or which though foreseen, was
inevitable. It shall not include ordinary unfavorable weather conditions; and any other cause
the effects of which could have been avoided with the exercise of reasonable diligence by the
Contractor.
If a force majeure situation arises, the Supplier shall promptly notify the C/BSPMC in writing
of such condition and the cause thereof. Unless otherwise directed by the C/BSPMC in writing,
the Supplier shall continue to perform its obligations under the Contract as far as is reasonably
practical, and shall seek all reasonable alternative means for performance not prevented by
the force majeure.

6.12.1. 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/BSPMC’s convenience, the extent to which performance of the
supplier under the contract is terminated, and the date upon which such termination
becomes effective.
Any of the following circumstances may constitute sufficient grounds to terminate contract
for convenience:
i. If physical and economic conditions have significantly changed so as to render

the project no longer economically, financially or technically feasible, as
determined by the C/BSPMC Chairperson;
ii. The C/BSPMC Chairperson has determined the existence of conditions that
make project implementation impractical and/or unnecessary, such as, but not
limited to, fortuitous event/s, changes in laws and government policies;
iii. Funding for the project has been withheld or reduced by higher authorities
through no fault of the C/BSPMC; or
iv. Any circumstance analogous to the foregoing.
The goods that are complete and ready for shipment within thirty (30) days after the
supplier’s receipt of notice of termination shall be accepted by the C/BSPMC at the
contract terms and prices. For the remaining goods, the C/BSPMC may elect:
i. To have any portion completed and delivered at the contract terms and prices;
and/or
ii. To cancel the remainder and pay to the supplier an agreed amount for partially
completed goods and services and for materials and parts previously procured
by the supplier.
If the Supplier suffers loss in its initial performance of the terminated contract, such as
purchase of raw materials for goods specially manufactured for the C/BSPMC which
cannot be sold in the open market, it shall be allowed to recover partially from the contract,
on a quantum merit basis. The fact of loss must be established before recovery may be
made.
6.12.4. Procedures for Termination of Contracts:
The following provisions shall govern the procedures for termination of this Contract:
i. Upon receipt of a written report of acts or causes which may constitute ground(s) for
termination, or upon its own initiative, the Project Implementation Team (PIT) shall,
within a period of seven (7) calendar days, verify the existence of such ground(s)
and cause the execution of a Verified Report, with all relevant evidence attached;
ii. Upon recommendation by the PIT, the C/BSPMC Chairman shall terminate this
Contract only by a written notice to the Supplier conveying the termination of this
Contract. The notice shall state:
a. that this Contract is being terminated for any of the ground(s) aforementioned,
and a statement of the acts that constitute the ground(s) constituting the same;
b. the extent of termination, whether in whole or in part;
c. an instruction to the Supplier to show cause as to why this Contract should not
be terminated, and;
d. Special instructions of the C/BSPMC, if any.
iii. The Notice to Terminate shall be accompanied by a copy of the Verified Report;
iv. Within a period of seven (7) calendar days from receipt of the Notice of Termination,
the Supplier shall submit to the C/BSPMC Chairman a verified position paper stating
why this Contract should not be terminated. If the Supplier fails to show cause after
the lapse of the seven (7) day period, either by inaction or by default, the C/BSPMC
Chairman shall issue an order terminating this Contract;
v. The C/BSPMC may, at any time before receipt of the Supplier’s verified position
paper described in item (d) above withdraw the Notice to Terminate if it is determined
that certain items or works subject of the notice had been completed, delivered, or
performed before the Supplier’s receipt of the notice;
vi. Within a non-extendible period of ten (10) calendar days from receipt of the verified
position paper, the C/BSPMC Chairman shall decide whether or not to terminate this
Contract. It shall serve a written notice to the Supplier of its decision and, unless
otherwise provided, this Contract is deemed terminated from receipt of the Supplier
of the notice of decision. The termination shall only be based on the ground(s) stated
in the Notice to Terminate;
vii. The Supplier must serve a written notice to the C/BSPMC of its intention to terminate
the contract at least thirty (30) calendar days before its intended termination. The
Contract is deemed terminated if it is not resumed in thirty (30) calendar days after
the receipt of such notice by the C/BSPMC.
6.13. Blacklisting
The KC-NCDDP reserves the right to blacklist suppliers/contractors 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 harassment 14 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. Contractor’s Program of Works
7.4. Dayworks
7.5. Measurement of Works
7.6. Contractor’s 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. Project Implementation Team (PIT) – is responsible for supervising the

implementation of the project and for ensuring that this is done in accordance with the
procedures set out in this Chapter and the provisions of the contract document in the
case of the Community Bidding. The PIT is composed of community volunteers
selected by the C/BSPMC Chairperson for this purpose.
ii. Monitoring and Inspection Team (MIT) – is responsible for monitoring and inspecting
whether the constructed works are in accordance with the drawings, plans and
technical specifications. The MIT is composed of community volunteers selected by
the C/BSPMC Chairperson for this purpose.
iii. Audit and Inventory Team (AIT) – is responsible for conducting value for money
audit and for ensuring the funds are utilized according to the required procedures. The
AIT is composed of community volunteers selected by the C/BSPMC Chairperson for
this purpose.
iv. C/BSPMC Chairperson – is responsible for approving transactions at the community
level, for signing the checks and for issuing and approving contract implementation
related instructions.
v. Municipal Financial Analyst – is responsible for processing vouchers and checks
for payment purposes and for keeping and maintaining copies of procurement, finance
and contract implementation documents at Area Coordinating Team (ACT) Office
vi. Community Empowerment Facilitator – responsible for reviewing and ensuring that
all procurement, finance and contract implementation documents are in accordance
with the requirements and procedures
vii. 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
viii. Area Coordinator (AC) – responsible for signing checks for payments
ix. 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: contractor’s performance

of his contractual obligations; C/BSPMC’s performance of its contractual obligations, as
specified in the Contract; final acceptance or project sign-off; all other related activities; and
payment by the C/BSPMC. Generally, a contract becomes effective upon receipt by the
winning contractor of the Notice to Proceed. In determining the contract implementation
period, the winning contractor shall be given ample time to undertake any preparatory
activities necessary for it to comply with the conditions of the contract.
7.1. Subcontracting
Generally, a contractor may be allowed to subcontract a material or significant portion of the
contract or project, which must not exceed fifty percent (50%) of the total project cost. The
bidding documents must specify what are considered as significant/material component(s) of
the project.
Except if otherwise provided by the contract, the contractor shall not subcontract any part of
the works without the prior consent of the C/BSPMC Chairperson. However, this consent shall
not relieve the contractor of any liability or obligation under the contract. The contractor will be
responsible for the acts, defaults and neglects of any subcontractor, his agents, servants or
workmen as fully as if these were its own acts, defaults or neglects, or those of its agents,
servants or workmen.
All subcontracting arrangements must be disclosed at the time of bidding, and subcontractors
must be identified in the bid submitted by the bidder. For them to be allowed to do so,
subcontractors should also pass the eligibility check for the portions of the contract that they
will undertake.
7.2. Contractor’s Program of Works

Within seven (7) days of the written notification of award, the Contractor shall submit to the
Project Supervisor for approval a Program showing the general methods, arrangements,
order, and timing for all activities of the Works. The C/BSPMC approval of the Program shall
not change the Contractor’s obligations. The Contractor may revise the Program and submit
it to the Project Supervisor again at any time. A revised Program will show the effect of the
changes.
The Contractor shall provide updated Activity Schedules within ten (10) days of being
instructed by the Project Supervisor. The activities on the Activity Schedule will be coordinated
with the activities of the Program.
The Contractor shall carry out and complete all the activities in accordance with the scope of
works specified in the Contract.

All materials, plant/s and workmanship shall be of the kind described in the contract and in
accordance with the instructions of the Project Supervisor. To ensure that this is the case,
these materials, plant/s and workmanship will be subjected, from time to time, to such tests
as the Project Supervisor may require. These tests must be at the place of construction,
fabrication, or on site or at such other place or places as may be specified in the contract, or
at all or any of such places.
The Project Supervisor must, at all reasonable times, have access to the site and to all
workshops and places where materials or plant are being manufactured, fabricated or
prepared for the works. The contractor, for its part, shall afford every facility for, and every
assistance in obtaining the right to such access.
The Project Supervisor shall be entitled, during manufacture, fabrication or preparation of

materials to be used in the project, to inspect and test these materials and the plant or plants
where these materials are being manufactured, fabricated, and/or prepared. If the materials
are being manufactured, fabricated or prepared in workshops or places other than those of
the contractor, the contractor must obtain permission for the Project Supervisor to carry out
inspection and testing in those workshops or places. Such inspection or testing will not release
the contractor from any obligation under the contract.
If, at the time and place agreed above, the materials or plant are not ready for inspection or
testing, the Project Supervisor may reject these materials or the plant and must notify the
contractor of such rejection immediately. He/she must also do so if, as a result of the
inspection or testing, he/she determines that the materials or plant are defective or otherwise
not in accordance with the contract. The notice must state the Project Supervisor’s objection
and the reasons for the objection. The contractor, for its part, must then promptly make good
the defector ensures that rejected materials or plant comply with the contract. If the Project
Supervisor so requests, the test of rejected materials or plant shall be made or repeated under
the same terms and conditions.
The Project Supervisor will, after consultation with the contractor, determine all the costs
incurred in the repetition of the test or tests. These costs are recoverable from the contractor
by the C/BSPMC and may be deducted from any monies due to the contractor. The Project
Supervisor must notify the contractor accordingly, with a copy being furnished the C/BSPMC.
To help ensure the quality of materials being used in infrastructure projects, the Bureau of
Research and Standards (BRS) of the DPWH, the DOST or the DTI shall accredit the testing
laboratories that can be used in C/BSPMC works projects. All C/BSPMCs implementing
infrastructure projects must use only these laboratories. Only tests done by these laboratories
shall be recognized and accepted, except for the testing of new materials to be undertaken
through procedures approved by the DPWH Secretary.
7.4. Dayworks
If applicable, as indicated in the contract, the dayworks rates in the contractor’s bid shall be
used for small additional amounts of work, only when the Project Supervisor has given written
instructions in advance for additional work to be paid for in that way.
All works to be paid for as day works shall be recorded by the contractor on forms approved
by the Project Supervisor. Each completed form shall be verified and signed by Project
Supervisor within two (2) days of the work being done. The contractor shall be paid for
dayworks subject to obtaining signed dayworks forms.
7.5. Measurement of Works

The quantities set out in the Bill of Quantities are the estimated quantities for the works. They
should not therefore be taken as the actual and correct quantities of the works to be executed
by the contractor in fulfillment of his obligations under the contract. They can vary to up to ten
percent (10%) of the contract price to account for variation orders.
The Project Supervisor must, except if otherwise stated in the Quantities of the Detailed
Designs, measure the value of the works actually in-place in accordance with the contract.
This measurement will be the basis for the payment that will be made to the contractor in
accordance with the Statement of Work Accomplished. The Project Supervisor must, when
he/she needs to measure any part of the works, give reasonable notice to the contractor’s
authorized agent, who must:
i. Attend or send a qualified representative to assist the Project Supervisor in making
such measurement; and
ii. Supply all particulars required by the Project Supervisor.
Procedures for the measurement of work may also be found in the KC-NCDDP Infrastructure
Manual.
7.6. Contractor’s Obligations and

Responsibilities
The Contractor shall carry out the Works properly and in accordance with this Contract. The
Contractor shall provide all supervision, labor, materials, plant and equipment, which may be
required. The Contractor shall commence execution of the Works on the Start Date and shall
carry out the Works in accordance with the Program of Work. The Contractor shall be
responsible for the safety of all activities on the Site.
During Contract implementation, the Contractor and his subcontractors shall abide at all times
by all labor laws, and other relevant rules which may be applicable to the works. Among such
regulations or laws are:
i. Employment of 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 contractor’s progress billing such amount
as may be necessary to cover third party liabilities. It must not process any progress
payment unless the discovered defects are corrected.
7.7.3. Retention Money
“Retention money” refers to the amount equal to ten percent (10%) 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. Introduction of new work items that are not included in the original contract; or
ii. Reclassification of work items that are either due to change of plans, design or
alignment to suit actual field conditions resulting in disparity between the
preconstruction plans used for purposes of the bidding and the “as staked plans” or
construction drawings prepared after a joint survey by the contractor and the C/BSPMC
after award of the contract, or during actual construction.
A Variation Order may either be in the form of a Change Order or Extra Work Order.
A Change Order covers any increase/decrease in quantities of original work of items in the
contract. An Extra Work Order covers the introduction of new work necessary for the
completion/improvement or protection of the project which are not included as items of work
in the original contract. As an example, there may be subsurface or latent physical conditions
at the site that differ materially from those indicated in the contract. There might also be duly
unknown physical conditions at the site of an unusual nature that differ materially from those
ordinarily encountered and generally recognized as inherent in the work or character provided
for in the contract. The addition/deletion of works should be within the general scope of the
project as bid and awarded, and the deletion of the work should not affect the integrity and
usefulness of the structure.
The issuance of a Variation Order must conform to the following:
i. That there will not be any short changes in the original design;
ii. That it will not affect the structural integrity and usefulness of the structure; and
iii. That it is 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. 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
ii. When time is of the essence, for works in the critical path based on the approved
PERT/CPM;
However, the approval is valid on work done up to the point where the cumulative increase in
value of work on the project which has not yet been fully approved does not exceed five
percent (5%) of the adjusted original contract price whichever is less. Furthermore,
immediately after the start of work, the corresponding Change Order or Extra Work Order
must be prepared and submitted for approval in accordance with the above rules herein set.
Payments for works satisfactorily accomplished on any Change Order or Extra Work Order
may be made only after approval of the same by the C/BSPMC Chairperson.
For a Change Order or Extra Work Order involving a cumulative amount exceeding five
percent (5%) of the original contract, no work may be commenced unless said Change
Order or Extra Work Order has been approved by the C/BSPMC Chairperson on the
recommendation of the 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 contractor’s estimate
as validated by the C/BSPMC. The C/BSPMC must validate these prices through a
documented canvass among three eligible suppliers in accordance with existing rules
and regulations. The direct cost of the new work item must then be combined with the
mark-up factor (i.e. taxes and profit) used by the contractor in his bid to determine the
unit price of the new work item.
The request for payment by the contractor for any extra work must be accompanied by a
statement, with the approved supporting forms, giving a detailed accounting and record of
amount for which he claims payment. This request for payment must be included in the
contractor’s statement for progress payment.
The following must be undertaken in issuing a Variation Order:
i. Within seven (7) calendar days after the contractor discovers that there is a need for
variation order, the said contractor must communicate the same to the C/BSPMC by
giving it notice of the findings. Afterwards, the contractor has twenty-eight (28) days to
submit a full documentation of the variation order. Failure to provide either of such
notices in the time stipulated shall constitute a waiver by the contractor for any claim.
ii. If the 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:
a. Notices submitted by the contractor;
b. The plans to effect the adjustments;
c. The contractor’s computations as to the quantities of the additional works involved
per item indicating the specific stations where such works are needed, the date of
his inspections and investigations thereon, and the logbook thereof; and
d. A detailed estimate of the unit cost of such items of work, together with his
justifications for the need of such Change Order of Extra Work Order.
iii. The 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.
iv. 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.
v. 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.
vi. The C/BSPMC shall notify the contractor to proceed with the work/delivery of items in
accordance with the amendment.
vii. The contractor shall proceed with the work/delivery of items in accordance with the
amended contract.
7.9. Suspension of Work

The C/BSPMC has the authority to suspend the work wholly or partly by written order due to
the following:
i. Force majeure or any fortuitous event; or

ii. Failure on the part of the contractor to:
a. Correct bad conditions which are unsafe for workers or for the general
public;
b. Carryout valid orders given by the Project Supervisor;
c. Perform any provisions of the contract; or
d. Adjustment of plans to suit field conditions as found necessary during
construction.
The contract shall specify a period of seven (7) calendar days from 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 contractor’s claim for progress billing beyond forty-five (45)
calendar days from the time the claim has been certified by the C/BSPMC Chairperson
as having been supported by complete documentation, unless there are justifiable
reasons which shall be communicated in writing to the contractor.
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. The PIT determines the existence of any of the grounds for suspension enumerated
above.
ii. The PIT drafts the suspension order for the approval of the C/BSPMC Chairperson.
iii. The suspension order is issued to the contractor, stating the grounds thereof,
iv. Prior to the expiration of the suspension order, the PIT shall determine whether or not
the grounds for suspension still exist.
v. 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.
vi. 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. Major calamities such as exceptionally destructive typhoons, floods and earthquakes,

and epidemics;
ii. Non-delivery on time of materials, working drawings, or written information to be
furnished by the C/BSPMC;
iii. Non-acquisition of permit to enter private properties within the right-of-way resulting
incomplete stoppage of construction activities;
iv. Region-wide or nationwide shortage of construction materials, as certified by the DTI
Secretary;
v. Region-wide or nationwide general labor strikes, as certified by the DOLE Secretary;
and
vi. 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 contractor’s 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. Due to the contractor’s fault and while the project is on-going, it has incurred
negative slippage of fifteen percent (15%) or more, without acceptable justification;
ii. Due to the contractor’s fault and after the contract time has expired, it has incurred
a negative slippage of ten percent (10%) or more in the completion of the work,
without acceptable justification; or
iii. The contractor:
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 contractor’s 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. Corrupt, fraudulent, collusive and coercive practices;

ii. Drawing up or using forged documents;
iii. Using adulterated materials, means or methods, or engaging in production
contrary to rules of science or the trade; and
iv. Any other act analogous to the foregoing.
The contractor shall be paid 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/BSPMC’s convenience, the extent to which
performance of the contractor under the contract is terminated, and the date upon which
such termination becomes effective.
Any of the following circumstances may constitute sufficient grounds to terminate contract
for convenience:
i. 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 Sub-project has been withheld or reduced by higher authorities
through no fault of the C/BSPMC ;
iv. Failure of the C/BSPMC to acquire the necessary right-of-way; or
v. 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 party’s 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 Contractor’s account if it
is correct and complete.
7.14. Warranty and Defects Liability Period

A warranty is required to ensure that the Contractor will correct structural defects and failures.
A one-year period after the completion of the project, called the defects liability period,
is observed until final acceptance by the C/BSPMC.
The Contractor shall assume full responsibility for the contract work within the defects liability
period and shall be held responsible for any damage or destruction of the works except those
occasioned by force majeure. During this period, the Contractor shall undertake the repair
works, at his own expense, of any damage to the infrastructure projects on account of the use
of materials of inferior quality within ninety (90) days from the time the C/BSPMC Chairperson
has issued an order to undertake repair.
The Defects Liability Period shall be extended for as long as defects remain uncorrected.
Every time notice of a defect is given, the Contractor shall correct the notified defect within the
length of time specified.
In case of Contractor’s failure or refusal to correct a defect within the time specified by the
order, the C/BSPMC shall undertake such repair works and shall be entitled to full
reimbursement of expenses incurred upon demand at the cost of the contractor. The 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 non–compliance by a user with the
technical design limits and/or intended purpose of the same, then the user
concerned shall be held liable.
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. Importance of Community

Procurement Monitoring
8.2. Community Procurement
Compliance Monitoring
8.3. Project Billboard
Performance Monitoring
8.5. Integrated Procurement
Compliance and Performance
Monitoring Report
8.6. 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 loan’s resources.

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. Checking the completeness of the procurement and finance documents by filling

up the simplified checklist found in CBPM Form G-1;
ii. Completing the Procurement Compliance Monitoring Report (PCMR) Form
(CBPM Form G-2) within one month after the award of each contract;
iii. Identifying issues, concerns and red flags encountered and reporting this in Section
B of the PCMR Form. In case of problem procurements where there are serious
violations of the procurement procedures, findings of red flags or issues that cannot
be resolved at the 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.
iv. 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 Sub-Regional
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.

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. 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;
ii. 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;
iii. The TF shall prepare a consolidated report for all communities under its jurisdiction
and shall submit the same to the RPMO;
iv. Consequently, the RPMO through the 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 community’s bank account and to attach the machine validated deposit
slip to the bidding documents to be placed in a sealed envelope.
Bid Validity – a period indicated in the bidding documents, but in no case shall exceed sixty
(60) calendar days from the date of the opening of bids, wherein a Bid Security is considered
valid.
Bidder – an individual or entity that submits a bid. The term includes anyone acting on behalf
of the individual or other entity that submits a bid, such as agents, employees, and
representatives. More specifically, a contractor, manufacturer, supplier, distributor competing
for the award of a contract in any government procurement.
Bidding Documents – the documents issued by the BAC as the bases for bids, furnishing all
information necessary for a prospective bidder to prepare a bid for the infrastructure projects
and/or goods required by the procuring entity.
Blacklisting – to place on, or as if on, a list of persons or organizations that have incurred
disapproval or suspicion or are to be boycotted or otherwise penalized.
Brand Name – a trade name or product name, which identifies a product as having been
made by a particular manufacturer.
Calculated bid price – the price of a bid, after taking into account minor arithmetical
corrections to consider computational errors, omissions and discounts, if allowed.
Collusion – an agreement between two or more persons, to commit acts to accomplish a

fraudulent or deceitful purpose.
Competitiveness– a principle in KC-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; contractor’s performance of his contractual obligations; procuring
entity’s performance of its contractual obligations, as specified in the Contract; final
acceptance or project sign-off; all other related activities; and payment by the Procuring Entity.
Contractor – one who undertakes to perform a work or service, or supply goods for a public
or private entity.
Contract Termination – ending of a contract prior to its completion.
Corrupt practice – the offering, giving, receiving, or soliciting of anything of value to influence
the action of a public official in the procurement process or in contract execution. Compare
fraudulent practice.
Cost Recovery Component – direct and indirect costs accounted for in determining the price
of Bidding Documents to be sold to interested suppliers/contractors.
Defects Liability Period - refers to the period from the date of issuance of Certificate of
Completion of the works as certified by the C/BSPMC Chairman up to the date within which,
the contractor shall still be liable for defects, shrinkage or other faults as determined by
C/BSPMC. The contractor shall execute all such work needed to amend, reconstruct, or
remedy at his own cost.
Development Cost – costs incurred in developing the original content of the documents,
designs, plans and specifications. The design cost may be excluded if the same is to be
included in the capitalized cost of the project which is to be recovered from the usage of the
completed project facility.
Direct Contracting – an alternative method of procurement of goods and infrastructure

projects whereby the C/BSPMC directly negotiates a contract with a technically, legally and
financially capable supplier or contractor.
Direct Costs - costs directly incurred such as development, reproduction, and communication
costs allocated to the bidding activity.
Disclosure – the act of disclosing, uncovering, or revealing.
Disqualification – the act of barring a bidder from further participation in the procurement at
hand, even if, in some instances, it has initially been declared eligible or post-qualified.
Eligible Bidder – a contractor, manufacturer, supplier or distributor who meets all the eligibility
requirements 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, mayor’s permit or municipal license, or the
Cooperative Development Authority, if a cooperative;
 Contractors for works must be either a duly licensed Filipino citizen or a sole
proprietorship, or a duly registered partnership or corporation;
Estimated Budget for the Contract – the budget for the contract duly approved by the
C/BSPMC which will serve as the agency estimate 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 community’s rights under the contract; or one that
if corrected would affect unfairly the comparative position of other bidders.
The following are examples:

• Bid contains a different design that does not respond to the contract plans and
specifications;
• Stipulates price adjustment when bid price should be fixed given the short duration of the
contract;
• Proposed timeframe of implementation does not conform to the required period
• Bid contains provision to exempt the bidder from some critical provisions of the contract.
Motion for Reconsideration – in procurement, it is an application made to the BAC for the
purpose of obtaining a rule or order setting aside a previous decision.
Notice of Award – the document issued by the C/BSPMC to the bidder to whom the contract
is awarded.
Notice of Post-qualification – the document issued by the BAC to the bidder with LCB or
HRB whose bid is found responsive subjected for post-qualification evaluation.
Notice to Proceed – the document issued by the C/BSPMC to the winning bidder to proceed
with the implementation of the contract.
Observer – one who is invited to attend and observe all stages of the procurement, especially:
the pre-bid conference; opening of bids; bid evaluation; post-qualification; contract award; and
special meetings of the BAC.
Off-the-shelf goods procurement - applies to the purchase of readily available goods from
local market outlets/stores.
Pakyaw contract - an alternative method of procurement where the partial or full

implementation of an infrastructure project or items of work for its completion is carried out
by skilled or unskilled labor from the community or its vicinity. 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 Bidder’s
compliance with the legal, financial and technical requirements of the bid.
Post-qualification Report – the report prepared by the TWG containing the findings/results
of the post-qualification conducted on the bidder with the LCRB or HRB, as the case may be.
Pre-bid Conference – is the forum where the Procuring Entity’s representatives and the
Prospective Bidders discuss the different aspects of the procurement at hand.
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. (Black’s Law
Dictionary, 5th Ed.)
Purchase Order - a contract between the community and the supplier/dealer for the delivery
of supplies, subject to stipulations in the order.
Reproduction cost – labor, supplies and equipment rental costs incurred in the reproduction
of the documents e.g. photocopying, blue printing, etc…
Request for Clarification – a written request submitted by the bidder to the BAC, asking the
latter to clarify a particular provision of the Bidding Documents.
Responsive bid – is a solicited bid is determined to be in substantial conformance with the

conditions, completion or delivery requirements, and specifications detailed in the 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 (Black’s Law Dictionary, 5th Ed.)
Submitted bid price – the bid price as indicated in the financial proposal submitted by the
bidder.
Supplemental/Bid bulletin – a notice issued by the Procuring Entity to Prospective Bidders

with respect to any clarifications or modifications in the Bidding Documents, including those
affecting the technical specifications, eligibility requirements, procurement schedule, and
other similar matters.
Supplier of good standing - one who is known in the community to be in the business of
providing the goods to be procured for at least one year, duly registered with the DTI, SEC or
CDA and possessing a mayor’s permit/municipal license from the supplier’s principal place of
business with no outstanding record of being blacklisted by any government agency or local
government unit.
Technical Bid – one of two components comprising a bid, the other being Financial Bid.
Technical specifications- refers to the physical description of the goods or services, as

well as the requirements of the community in terms of the functional, performance,
environmental interface and design standard requirements to be met by the goods to be
manufactured or supplied, or the services to be rendered.
Tender – See Bid.
Unbalanced Quotation/Bid- a bid where part of the cost of one work item is shifted to another
item of work making the cost of such item unreasonably high and other items unreasonably
low.
Warranty – an undertaking by the supplier, manufacturer or distributor to guarantee that it will

correct any manufacturing defects of the goods procured by the C/BSPMC.
Works or Infrastructure Projects –refers to undertakings to construct, improve, upgrade,

rehabilitate, demolish, repair, restore, or maintain small scale infrastructure and all types of
physical works identified under the KC-NCDDP, fabrication of equipment and structural parts,
as well as physical labor to complete such projects.
PERIOD OF ACTION ON PROCUREMENT
ACTIVITIES
COMMUNITY SHOPPING
DURATION (IN CALENDAR DAYS)
ACTIVITIES DEADLINE GOODS WORKS
MIN MAX MIN MAX
Preparation of Request
1 1 1 1
for Quotation
Conduct of Procurement
1 1 1 1
Preparation Meeting
Posting of Notice of Once for a
Request for Quotation minimum period 1 3 1 3
of 3 c d
Issuance of Request for
1 3 1 3
Quotation
Conducted at
Contractors’ Conference least 3 days prior
for P1M and above to 1 1
contracts submission of
quotation
Site Visit or Inspection
(any day prior to 1 1
submission of quotation)
Submission and Opening
1 3 1 3
of Quotations
Quotation Evaluation 1 1 1 2
Post-qualification 3 5
Prior Review of Contract
5 (RPMO) 5 (RPMO) 5 (RPMO) 5 (RPMO)
(No Objection Letter)
Sub-Total 13 17 16 25
Issuance of Notice of 3 7
Award
PO/Contract Preparation 2 2 3 5
and Signing
Issuance of PO or Notice 1 1 1 2
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 1 1 1 1
for Quotation
Conduct of Procurement 1 1 1 1
Preparation Meeting
Posting of Notice of Once for a period 1 3 1 3
Request for Quotation of 3 c d
(for information)
Issuance of Request for 1 1 1 1
Quotation
Contractor Conference
and Site Visit or 1 1
Inspection
Submission and Opening 1 3 1 3
of Request for Quotation
Quotation Evaluation 1 1 1 2
Prior Review of Contract
5 (RPMO) 5 (RPMO) 5 (RPMO) 5 (RPMO)
(No Objection Letter)
Sub-Total 11 15 12 17
Issuance of Notice of 3 7
Award
PO/Contract Preparation 2 2 3 5
and Signing
Issuance of PO or Notice 1 1 1 2
to Proceed
TOTAL 14 18 19 31
COMMUNITY BIDDING
DURATION (IN CALENDAR DAYS)
ACTIVITIES DEADLINE GOODS WORKS
MIN MAX MIN MAX
Preparation of Bidding 1 3 1 3
Documents
Conduct of Procurement 1 1 1 1
Preparation Meeting
Posting of Invitation to Once for a 1 1 1 1
Bid minimum period
of 7 c d
Issuance of Bidding 7-14CD from 7 14 7 14
Documents posting of IB
Conduct of Pre-Bid 5-7 days before 1 1 1 1
Conference bid opening
Site Visit or Inspection 1 1 1 1
Submission and Opening 1 1 1 1
of Bids
Bid Evaluation 1 2 1 3
Post-qualification 1 2 1 3
Prior Review of Contract 5 (RPMO) 5 (RPMO) 5 (RPMO) 5 (RPMO)
(No Objection Letter) 5 (NPMO) 5 (NPMO) 5 (NPMO) 5 (NPMO)
Sub-Total 25 36 25 38
Issuance of Notice of 3 7 3 7
Award
Contract Preparation and 2 5 2 5
Signing
Issuance of Notice to 1 3 1 3
Proceed
TOTAL 31 51 31 53

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NATIONAL

CHAPTER TWO: PROCUREMENT ORGANIZATION AND CAPACITY

CHAPTER THREE: PROCUREMENT PLANNING FOR COMMUNITY BASED

CHAPTER FOUR: COMMUNITY BASED PROCUREMENT METHODS AND

CHAPTER FIVE: COMMUNITY BASED PROCUREMENT PROCEDURES ... 32

CHAPTER SEVEN: CONTRACT IMPLEMENTATION FOR COMMUNITY

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

GLOSSARY OF TERMS ........................................................................ 130

2. Works or Infrastructure Projects– This refers to undertakings to construct, improve,

3. Consulting Services–This refers to services provided by external technical service

1.5. Principles in Community Based

2. Effectiveness– the processes must be simple and streamlined to encourage communities

5. Accountability – all roles and responsibilities as well as liabilities of community officials

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

1. Area Coordinator or Technical Facilitator

2.7. Functions and Responsibilities

The Community/Barangay Sub-Project Management Committee (C/BSPMC) has the following

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

2.7.2. Bids and Awards Committee

i. Advertises and /or posts the invitation to bid;

2.7.3. Procurement Team

2.7.4 Technical Working Group

The Observers have the following functions and responsibilities:

An eligible bidder shall be responsible for having:

i. Taken steps to carefully examine all of the bidding documents;

2.8. Other Procurement Stakeholders

2.8.1. Community Level

2.8.1.1. C/BSPMC Bookkeeper–responsible for keeping records of procurement and

2.8.1.3. C/BSPMC Chairperson– as head of the community procuring entity, he is

2.8.1.4. Barangay Treasurer – responsible for certifying to availability of funds and

2.8.1.5. Community Empowerment Facilitator– responsible for providing guidance to

2.8.2. Municipal and Regional Level

2.8.2.4. Regional Community Infrastructure Specialist (RCIS)– Assists the Regional

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

3.1. Community Empowerment Activity

Survey of Prevailing Market

Figure 2. Procurement Related Activities under the CEAC Process

Figure 3. Community Procurement Planning Process

3.3. Preparation of the Program of Works

The preparation of Environmental Social Management Plan (ESMP) is a prerequisite in the

i. Standards and technical specifications quoted in the bidding documents should

3.4. Preparation of the Initial Community

3.4.2. Preparation of Procurement Packages

3.4.2.1. Examples of Procurement Packages

Particulars Quantity Unit

Selected Filling Materials 50 cubic meter

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

Portland Cement 100 bags

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

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

Item 105 Sub-grade Preparation

Package 1: (this can be done through Community Bidding or Shopping by one

Item 105 Sub-grade Preparation

Item 311 300 Linear Meter (PCCP)

Case 3: Grouping of Several Procurement Categories When this is considered