Dpwh blue book volume 1 PDF

Preview

Summary

VOLUME IGUIDELINES ONTHE ESTABLISHMENT OFPROCUREMENTSYSTEMSAND ORGANIZATIONSIN THE DPWHVOLUMEI: GUIDELINES ON THE ESTABLISHMENT OFPROCUREMENT SYSTEMS ANDORGANIZATIONS............................................................. - TABLE OFCONTENTS.........................................................

Description

VOLUME I GUIDELINES ON THE ESTABLISHMENT OF PROCUREMENT SYSTEMS AND ORGANIZATIONS IN THE DPWH

2FWREHU

*XLGHOLQHV RQ WKH (VWDE OLVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

VOLUME I: GUIDELINES ON THE ESTABLISHMENT OF PROCUREMENT SYSTEMS AND ORGANIZATIONS ………………………………..…………………..

1.

2.

3.

2FWREHU

1

TABLE OF CONTENTS ………………………………………………..

2

ACRONYMS AND ABBREVIATIONS ………………………………

4

GENERAL PROVISIONS ……………………………………………… 1.1 LEGAL BASIS FOR THE PROCUREMENT MANUAL ………… 1.1.1 Legal Reference ………………………………………………… 1.1.2 PolicieG and GuidelineG …………………………………….. 1.2 COVERAGE, SCOPE AND APPLICATION ………………………… 1.2.1 Legal Reference ………………………………………………… 1.2.2 PolicieG and GuidelineG …………………………………….. 1.2.2.1 Coverage ……………………………………………. 1.2.2.2 Application …………………………………………. 1.3 PRINCIPLES OF GOVERNMENT PROCUREMENT ………….. 1.3.1 Legal Reference ………………………………………………… 1.3.2 PolicieG and GuidelineG …………………………………….. 1.3.2.1 TranGparency ……………………………………… 1.3.2.2 CompetitiveneGG ………………………………… 1.3.2.3 Streamlining and UGe of Technology in Procurement …………………………………. 1.3.2.4 Accountability …………………………………….. 1.3.2.5 Public Monitoring ………………………………… PROCUREMENT ORGANIZATIONS……………………………….. 2.1 ORGANIZATIONAL STRUCTURE ……………………………………. 2.1.1 Legal Reference ………………………………………………… 2.1.2 PolicieG and GuidelineG …………………………………….. 2.1.2.1 Procuring Entity and Procurement Unit/ Office ………..……………………………………… 2.1.2.2 BidG and AwardG Committee (BAC) …… 2.1.2.3 BAC MemberG ……………………………………… 2.1.2.4 Technical Working Group (TWG) ………… 2.1.2.5 ObGerverG …………………………………………… 2.2 ROLES AND RESPONSIBILITIES ……………….………………... 2.2.1 Legal Reference ………………………………………………… 2.2.2 PolicieG and GuidelineG …………………………………….. 2.2.2.1 Procuring Entity and Procurement Unit/Office …………………………………………. 2.2.2.2 BAC …………………………………………………….. 2.2.2.3 TWG …………………………………………………… 2.2.2.4 ObGerverG …………………………………………… 2.3 CONDITIONS FOR GRANTING HONORARIA …………………. 2.3.1 Legal Reference ………………………………………………… 2.3.2 PolicieG and GuidelineG……………………………………… 2.4 PROFESSIONALIZATION OF PROCUREMENT UNITS, BAC, TWG ……………………………………………………………………. 2.4.1 Legal Reference ………………………………………………… 2.4.2 PolicieG and GuidelineG ……………………………………… PROCUREMENT PLANNING ……………………………………… 3.1 PROCUREMENT PLANNING-Procurement Planning and Budget Linkage ……………………………………………………………. 3.1.1 Legal Reference ………………………………………………… 3.1.2 PolicieG and GuidelineG ……………………………………… 3.1.3 Overall ProcedureG for Preparing PPMPG and APPG …………………………………………………………………… 3.2 PROCUREMENT PLANNING-Preparation of Project Procurement Management Plan (PPMP) ………………………… 3.2.1 Legal Reference…………………………………………………. 3.2.2 PolicieG and GuidelineG ……………………………………..

6 7 7 7 8 8 8 8 8 9 9 9 9 9 9 9 10 11 12 12 12 12 13 13 18 19 21 21 21 21 23 24 25 27 27 27 28 28 28 29 30 30 30 30 32 32 32

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

4.

3.2.2.1 Project Procurement Mangement Plan (PPMP) ………………………………………… 3.2.2.2 Developing Project RequirementG …… 3.2.23 Writing Technical SpecificationG, Scope of Work and TermG of Reference …….. 3.2.24 Determining the Approved Budget for Contract (ABC) ..………………………………… 3.2.2.5 Procurement MileGtoneG …………………….. 3.2.2.6 Method of Procurement ……………………… 3.2.2.7 Format of PPMP …………………………………… 3.3 PROCUREMENT PLANNING-PREPARATION OF THE ANNUAL PROCUREMENT PLAN (APP) ……………………………. 3.3.1 Legal Reference ………………………………………………… 3.3.2 PolicieG and GuidelineG ……………………………………… 3.3.2.1 APP ………………………………………………………. 3.3.2.2 Procurement Strategy ………………………… 3.3.2.3 Format of APP …………………………………… GENERAL PROCUREMENT ACTIVITIES AND TIMELINES …

32 32 33 34 34 35 35 36 36 36 36 37 37 38

FIGURE 1: ORGANIZATIONAL CHART OF THE PROPOSED PROCUREMENT BUREAU …………………………………………………….

14

FIGURE 2: TIMELINE OF PROCUREMENT ACTIVITIES FOR AN INFRASTRUCTURE CONTRACT WITH AN ESTIMATED COST OF P25 M OR LESS …………………………………………………..

45

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

ACRONYMS AND ABBREVIATIONS ABC – Approved Budget for the Contract ABM – Agency Budget Matrix APP – Annual Procurement Plan BAC – BidG and AwardG Committee COA — CommiGGion on Audit CCASR — Contractor'G Confidential Application Statement for RegiGtration CRC — Contractor'G RegiGtration Certificate CSC – Civil Service CommiGGion DBM — Department of Budget and Management DBM-PS — Department of Budget and Management-Procurement Service DPWH – Department of Public WorkG and HighwayG E.O. – Executive Order GAA – General AppropriationG Act G-EPS – Government Electronic Procurement SyGtem GPM – Generic Procurement Manual GPPB — Government Procurement Policy Board GPPB-TSO — Government Procurement Policy Board-Technical Support Office GPRA — Government Procurement Reform Act IAEB – Invitation to Apply for Eligibility and to Bid IRR-A — Implementing RuleG and RegulationG Part A of R.A. 9184 IU — Implementing Unit LCB – LoweGt Calculated Bid LCRB – LoweGt Calculated and ReGponGive Bid LOI – Letter of Intent for Eligibility NGO — Non-government Organization PA – ProfeGGional AGGociation PBDs — Philippine Bidding DocumentG PMO – Project Management Office PPA — ProgramG, ProjectG, ActivitieG PPMP – Project Procurement Management Plan PWI – Procurement Watch, Incorporated R.A. – Republic Act SARO – Special Allotment ReleaGe Order SBDs – Standard Bidding DocumentG of the DPWH 2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

SOW – Scope of Work

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

TOR – TermG of Reference TS – Technical SpecificationG TWG – Technical Working Group WFP – Work and Financial Plan

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

SECTION 1

GENERAL PROVISIONS

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

1.1

LEGAL BASIS FOR THE PROCUREMENT MANUAL

1.1.1 LEGAL REFERENCE Section 6 of the Inplenenting Rules and Regulations Part A of Republic Act (R.A.) 9184 provideG the legal baGiG for the Generic Procurement Manual (GPM) and, by extenGion, the Gpecific Procurement Manual for the Department of Public WorkG and HighwayG (DPWH) baGed on the GPM.

1.1.2 POLICIES AND GUIDELINES The GPM waG developed purGuant to Section 6 of R.A. 9184, otherwiGe known aG the Government Procurement Reform Act (GPRA). The Section provideG for the development of generic procurement manualG and Gtandard bidding formG that, once iGGued, muGt be uGed by all Procuring EntitieG. To Guit the particular needG of the DPWH, the GPM haG been cuGtomized to produce thiG DPWH Procurement Manual (DPM). Like the GPM, thiG DPM aimG to Gtandardize the procurement proceGG, thereby preventing confuGion, enGuring tranGparency, and enabling the DPWH to conform to the principleG that govern all government procurement activitieG. The DPWH will review thiG DPM periodically and, whenever neceGGary, reviGe it to enGure itG applicability to exiGting conditionG. Specific reviGionG to the DPM are Gubject to the approval of the DPWH Secretary and muGt be conGiGtent with exiGting procurement lawG, ruleG, regulationG, and policieG, including the GPM.

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

1.2

COVERAGE, SCOPE AND APPLICATION

1.2.1 LEGAL REFERENCE IRR-A Sections 1, 4, and J provide the legal reference for the coverage, Gcope and application of the Generic Procurement Manual (GPM), and by extenGion, the DPWH Procurement Manual (DPM) baGed on the GPM.

1.2.2 POLICIES AND GUIDELINES 1.2.2.1 Coverage ThiG DPM muGt be uGed for all procurement activitieG of the DPWH which are locally- funded, i.e., financed by the Government of the PhilippineG The DPM Ghall apply to the entire DPWH organization, including itG component unitG, aG followG: a. b. c. d.

Central Office, with itG BureauG, ServiceG, Project Management OfficeG, and other unitG. Regional OfficeG DiGtrict Engineering OfficeG Other organizational unitG of the DPWH

1.2.2.2 Application ThiG DPM Ghall apply to the procurement of the following: a. b. c.

GoodG, uGing Volume II of the DPM InfraGtructure ProjectG, uGing Volume III of the DPM ConGulting ServiceG, uGing Volume IV of the DPM

ThiG Manual Ghall be uGed hand-in-hand with the DPWH Standard FormG and the DPWH Standard Bidding DocumentG (SBDG) which were adapted from the Philippine Bidding DocumentG (PBDG) preGcribed by the Government Procurement Policy Board (GPPB). The DPM Ghall apply to goodG, infraGtructure, and conGulting GerviceG directly funded, procured and implemented by the DPWH. It Ghall alGo apply to thoGe funded by other government departmentG and agencieG but procured and implemented by the DPWH in accordance with the proviGionG of law or inter-agency agreementG. The latter includeG the procurement of road maintenance workG funded by the Road Board under the Motor Vehicle UGer'G Charge Act (R.A. 8794), Gchool building projectG under the Department of Education budget, and farm-tomarket road projectG funded by the Department of Agriculture and Department of Agrarian Reform, among otherG.

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

1.3

PRINCIPLES OF GOVERNMENT PROCUREMENT

1.3.1 LEGAL REFERENCE IRR-A Section 3 provideG the legal reference for the principleG of government procurement.

1.3.2 POLICIES AND GUIDELINES Procurement by the DPWH Ghall be governed by the following principleG:

1.3.2.1 Transparency The entire procurement proceGG muGt be tranGparent. Procuring entitieG of the DPWH muGt enGure the wideGt diGGemination of bid opportunitieG and the participation of pertinent non-government organizationG (NGOG). TowardG thiG end, poGting in the DPWH webGite and in the Government Electronic Procurement SyGtem (G-EPS) webGite Ghall be done for all procurementG, and ObGerverG coming from eligible and qualified profeGGional aGGociationG (PAG) and nongovernment organizationG (NGOG) will be invited to obGerve all GtageG of the procurement proceGG. Each procurement tranGaction muGt be properly documented and the recordG muGt be maintained and made available to proper partieG.

1.3.2.2 Conpetitiveness Procurement in the DPWH muGt be competitive and, aG a rule, be conducted through public bidding, except aG otherwiGe provided for under the GPRA, itG IRR-A and thiG Manual. A competitive bidding proceGG treatG bidderG equitably and provideG fair groundG for competition among themGelveG, thereby enGuring that no Gingle bidder Gignificantly influenceG the outcome of the bidding. Competition among proponentG will urge them to offer lower priceG and more beneficial termG to the government than where only one or a few bidderG participate. Hence, the alternative methodG of procurement Ghall be reGorted to only when competitive bidding iG not a feaGible option, in accordance with the conditionG laid down in RA 9184, itG IRR-A and thiG Manual.

1.3.2.3 Streanlining and Use of Technology in procurenent A Gtreamlined procurement proceGG that will uniformly apply to all DPWH procurement muGt be adopted. The procurement proceGG muGt be Gimple and made adaptable to advanceG in modern technology in order to enGure an effective and efficient method. The DPWH and the GPPB Ghall conduct a periodic review of government procurement procedureG, and whenever neceGGary, formulate and implement changeG thereto.

1.3.2.4 Accountability A GyGtem of accountability muGt be eGtabliGhed. ThuG, both the public officialG directly or indirectly involved in the procurement proceGG and in the implementation of procurement contractG, and the private partieG that deal with government are, when warranted by circumGtanceG, to be inveGtigated and held liable for their actionG. The HeadG of the Procuring EntitieG are reGponGible for eGtabliGhing and maintaining a tranGparent, effective, and efficient procurement GyGtem in their

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

reGpective entitieG. The reGponGibilitieG of each official involved in the procurement proceGG muGt be clear and legally identifiable.

1.3.2.J Public Monitoring Public monitoring of the procurement proceGG and the implementation of awarded contractG are provided for in R.A. 9184. ThiG iG to guarantee that theGe contractG are awarded purGuant to the proviGionG of the R.A. 9184 and itG IRR-A, and that all theGe contractG are performed Gtrictly according to GpecificationG. A GyGtem of reporting to the GPPB iG provided for, while qualified Civil Society OrganizationG Guch aG NGOG, PAG, academic inGtitutionG, and religiouG groupG are allowed to obGerve and monitor the procurement proceGG and contract implementation.

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

SECTION 2

PROCUREMENT ORGANIZATIONS

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2.1

ORGANIZATIONAL STRUCTURE

2.1.1 LEGAL REFERENCE IRR-A Sections J(q), 11, 13, and 14 provide the legal reference for the organizational Gtructure.

2.1.2 POLICIES AND GUIDELINES 2.1.2.1 Procuring Entity and Procurenent Unit/Office a.

Procuring Entity

The Procuring Entity of the DPWH may be the Central Office, or, within the limitG of itG delegated authority, the Regional Office or the DiGtrict Engineering Office. PreGently, the DiGtrict Engineering Office iG authorized to undertake the procurement of infraGtructure contractG with a coGt, i.e., an Approved Budget for the Contract (ABC), of up to P15 million, and the Regional Office iG authorized to undertake the procurement of contractG with an ABC of more than P15 million up to P30 million. The Central Office undertakeG the procurement of contractG with an ABC of more than P30 million. b.

Procurenent Unit and BAC Secretariat

The Head of the Procuring Entity muGt create or deGignate an exiGting organic office that will Gerve aG itG Procurement Unit, which will alGo Gerve aG the BidG and AwardG Committee (BAC) Secretariat. The purpoGe for the dual function of thiG Office iG to enGure continuity aG well aG profeGGionalization of the procurement function. The term “Procurement Unit” Ghall refer to the organic office of the Procuring Entity that carrieG out the procurement function. In the DPWH Central Office, thiG unit will be organized aG a “Bureau of Procurement.” In the Regional Office, the unit will be organized aG a “Procurement Staff” attached to the Office of the Regional Director. In the DiGtrict Office, it will be organized aG a “Procurement Staff” attached to the Office of the DiGtrict Engineer. The Gize of the Procurement Unit and the number of perGonnel are dictated by the volume of tranGactionG done by and the level of expertiGe required from it. The Head of the Procuring Entity Ghall conGider the following factorG, among otherG, in Gelecting the perGonnel who will be aGGigned to the Procurement Unit: i.

Integrity

ii.

Procurement proficiency, aG Ghown by experience and training attended

iii.

SatiGfactory completion of a certification program conducted by the GPPB-Technical Support Office (GPPB-TSO) or itG accredited inGtitutionG, if any

iv.

Appropriate Civil Service qualification GtandardG

v.

Appropriate rank of the head of the Procurement Unit, which Ghould be:

2FWREHU



at leaGt a fifth ranking permanent employee in the Central Office, or



at leaGt a third ranking permanent employee in the Regional and DiGtrict OfficeG. *XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

2FWREHU

*XL GHOL QHVRQ WKH (VWDEO LVKPHQW RI 3URFXUHPHQW 6\VWHPV DQG 2UJDQL]DWLRQV LQ WKH '3:+

3DJH RI

In deGignating memberG of the Procurement Unit and the BAC Secretariat, the Head of the Procuring Entity muGt enGure that check and balance iG maintained, and procurement perGonnel are not given other aGGignmentG that may conflict with Guch deGignation. The poGitionG in the Procurement Unit and the BAC Secretariat Ghall be filled up uGing the “Gcrap and build” Gcheme, i.e., reclaGGification or tranGfer of filled itemized poGitionG, or abolition of vacant itemized poGitionG and reclaGGification of theGe poGitionG into the above poGitionG. If the latter Gcheme iG adopted, the equivalent budget requirement for PerGonal ServiceG Ghould not exceed the amount generated from the abolition of vacant poGitionG. The Head of the Procuring Entity Ghall enGure that the Procurement Unit will have a Gufficient number of perGonnel who will provide Gecretariat Gupport to the BAC and perform the other functionG of the Procurement Unit, aG provided in thiG Manual. The Unit Ghall be Gtrengthened through continuing procurement training and education of the Gtaff and deployment of additional perGonnel, if neceGGary. Figure 1 GhowG the organization of the propoGed Bureau of Procurement in the Central Office.

2.1.2.2 Bids and Awards Connittee BecauGe of itG decentralized operationG and heavy procurement workload, in termG of number, coGt, and complexity of procurement tranGactionG, the DPWH haG 191 BACG, diGtributed aG followG: a.

Central Office   

b.

Regional Office 

c.

One (1) BAC for InfraGtructure or Civil WorkG, foreign-aGGiGted and locally-funded One (1) BAC for ConGulting ServiceG, foreign-aGGiGted and locally-funded One (1) BAC for GoodG, foreign-aGGiGted and locally-funded

One (1) BAC for InfraGtructure (Civil WorkG), GoodG, and ServiceG per Region x 16 RegionG = 16 BACG.

DiGtrict Office 

One (1) BAC for InfraGtructure (Civil WorkG), GoodG, and ServiceG per DiGtrict Office x 172 DiGtrict OfficeG = 172 BACG.

2.1.2.3 BAC Menbers a.

Central Office

The DPWH Secretary Ghall deGignate the MemberG of the BidG and AwardG Committee (BAC) in accordance with the following ruleG: i.
...