This document provides an overview of the procedures for negotiated procurement involving community participation in the Philippines. It defines key terms and establishes the legal framework, objectives, eligibility requirements for organized and unorganized community groups, and procurement procedures including planning, bidding, evaluation, awarding of contracts, and implementation. The procedures aim to promote local community involvement in public projects to achieve sustainability and social objectives, in accordance with relevant laws and resolutions.

1. OVERVIEW OF THE
NEGOTIATED PROCUREMENT -
COMMUNITY PARTICIPATION

2. MODULE OBJECTIVES
By the end of this module, participants should be able to:
1. Gain deeper understanding of the basic concepts of
Community Participation in Procurement;
1. Differentiate organized from unorganized CSGs and
their specific requirements; and
1. Apply the procurement procedures of Negotiated
Procurement – Community Participation (NP-CP) to
their respective offices.
2

3. Background and Legal Framework
I
Procurement Planning
II
II Procurement Procedure

4. Background and
Legal Framework

5. What is Community Participation?
Where, in the interest of project
sustainability or to achieve certain specific
social objectives, it is desirable in selected
projects, or its components, to call for
participation of local communities through
Community or Social Groups, or members
thereof in the delivery of Goods and
Simple Infrastructure Projects, subject to
the guidelines issued by the GPPB.
GPPB Resolution No. 18-2021

6. Negotiated Procurement – Community Participation
Involvement of local
communities
For project
sustainability or to
achieve certain social
objectives
Background

7. Legal Framework
1.GPPB Resolution No. 03-2009
2.GPPB Resolution No. 03-2013 Amending Section 53.12 of IRR of
RA 9184
3. GPPB Resolution 09-2014
4. GPPB Resolution 15-2015
5. GPPB Resolution 17-2016
6. GPPB Resolution 13-2016
7. GPPB Resolution No. 28-2016
8. GPPB Resolution 18-2021

8. Legal Framework
• RA No. 11037 or the “Masustansyang
Pagkain para sa Batang Pilipino Act”
• RA No. 11148 or the “Kalusugan at
Nutrisyon ng Mag-Nanay Act”
• RA No. 11321 or the “Sagip Saka Act”

9. Rationale for the Guidelines
• To address the needs of agencies
to revise Procurement Projects in
light of priorities and strategies of
the government
• To have a uniform set of guidelines
for streamlining of procurement
procedures

10. Rationale for the Guidelines
• Local Government Code (RA
7160)
• Executive Order (EO) No. 138
• DBM and DILG issued Joint
Memorandum Circular (JMC)
No. 2021-1
• Highlighting the roles of the
LGUs as PEs for community-
based Projects

11. Scope and Application
Applicability
Goods Simple Infrastructure
Projects
Scope
NGAs
GOCCs/
GFIs
SUCs LGUs

12. What are Goods?
All items, supplies, materials and
general support services, except
consulting
infrastructure
may be
services and
projects, which
needed in the
transaction of public businesses
or in the pursuit of any
government undertaking, project
or activity
Section 5 of RA No. 9184 and its 2016 revised IRR

13. What are Simple Infrastructure Projects?
• Construction, improvement,
rehabilitation, demolition, repair,
restoration, or maintenance of
structures, technical facilities and
systems
• ABC not exceeding PhP 5,000,000.00
• Built at the community level for the
sustenance of lives and livelihoods of
the population living in a community

14. Procurement Planning for Community Participation
Procurement modality to be reflected: NP-CP
End-user unit shall identify project proposals
Objectives, requirements, and target community for the Community-
based Project shall be identified by the End-user unit
Multi-year Community-based Projects shall be subject to the issuance
of MYCA for NGAs or an equivalent document for GOCCs, GFIs,
SUCs, and LGUs

15. Approved Budget for the Contract
Community-based Projects
Approved Budget for
Contract
(in Philippine Pesos)
Goods 5,000,000.00
Simple Infrastructure Project 5,000,000.00
Labor-only contract 1,000,000.00
PE may increase the ABC subject to prior approval of the HOPE. HOPE to submit a
report to the GPPB on the amount of the ABC approved and reason for monitoring.

16. Eligibility Requirements

17. Kinds of Community or Social Groups (CSGs)
Organized Community
or Social Group
Supply Goods or implement
Simple Infrastructure Projects, or
to perform the labor-only
component of Procurement
Projects
Unorganized Community
or Social Group
Perform the labor-only
component of Procurement
Projects

18. Organized CSGs

19. Organized Community Groups
Legal Requirements
Certificate of registration for the DTI, SEC,
CDA, DA, Department of Labor and
Employment, NCIP; or for CSOs/ NGOs/
POs, registration from NGAs or LGUS, and
Sworn affidavit on disclosure of no
relationship and/or ownership/interest in
related business

20. Organized Community Groups
Technical Requirements
Statement of all completed
contracts similar to community-
based projects to be bid and/or
list of work experiences of
members

21. Organized Community Groups
Technical Requirements
(for simple infrastructure projects)
Statement of all ongoing
government and private
contracts (outstanding and
uncompleted portion)
PCAB license

22. Organized Community Groups
Financial Requirements
Photocopy or scanned copy of bank book with
latest bank account information
For Organized CSG that has participated in any
government Community-based Project for the
past 2 years:
Latest ITR for the preceding Tax Year,
and
Updated AFS

23. Organized Community Groups
Financial Requirements
Simple Infrastructure Projects
The Organized CSG’s computation of
NFCC

24. Unorganized CSGs

25. Unorganized Community Groups
Sworn affidavit showing no
conflict of interest and
commitment to perform and
deliver all obligations
Legal Requirements
Photocopy of government-
issued ID of the officers or
members
and

26. Unorganized Community Groups
Technical Requirements
List of completed work
experience of members of
Unorganized CSG

27. Unorganized Community Groups
Financial Requirements
Photocopy or scanned copy of the bank account under the
name of any of its officers or members with complete bank
account information, or
Proof that it maintains books of accounts (cash receipts journal,
cash disbursement journal, general journal, general ledger)

28. Procurement Procedure

29. Posting of the Request for Quotation
PhilGEPS Website
Website and in the
premise of the PE
At least 3 conspicuous
places in the
Community-based
Project site
TIMELINE
3 cd
Posted continuously

30. Posting of the Request for Quotation
BAC shall also send the
RFQs to CSGs of known
qualifications within the
locality

31. Submission of Quotations
• Manual submission of
quotation:
Sealed Quotations
• Electronic
Submissions:
Password-Encrypted
Quotations

32. Electronic Submission and Receipt of Quotation
GUIDELINES THROUGH ELECTRONIC MEANS
2-FACTOR SECURITY PROCEDURE:
ARCHIVED AND PASSWORD
PROTECTED
1
GPPB RESOLUTION NO. 09-2020
ALLOWS ACCESS TO A PASSWORD
PROTECTED BIDDING DOCUMENTS.
Passwords shall be disclosed by the Bidders
only during the actual bid opening
2
CAPABALE OF GENERATING AN
AUDIT TRAIL OF TRANSACTIONS
3

33. Opening and Evaluation of Quotations
The BAC shall open the quotations and prepare an Abstract of Quotations
Content of the Abstract of Quotations:
a. names of the CSGs that responded to
the RFQ
b. corresponding price quotations; and
c. Lowest Calculated Quotation (LCQ) or
Single Calculated Quotation (SCQ)
EVALUATION OF
QUOTATION
7 cd
Maximum period of evaluation from the
prescribed deadline

34. Post-Qualification
To determine whether the
LCQ/SCQ complies with
and is responsive to all
requirements and
conditions as specified in
the Bidding Documents, to
be declared the Lowest
Calculated and Responsive
Quotation (LCRQ) or Single
Calculated and Responsive
Quotation (SCRQ)
PURPOSE
POST-QUALIFICATION
10 cd
from the receipt of notice to the CSG with
LCQ or SCQ, with fresh period of 10 cd
for extensions
Certificate of Registration
issued by the FFEDIS
(Procurement of Agricultural
or Fishery Projects)
REQUIREMENTS

35. Award of Contract
❑ The BAC recommend
SCRQ or
award of
LCRQ at
contract to
submitted
shall
the
price or calculated price,
whichever is lower.
❑ Upon approval of the BAC
recommendation, the HoPE shall issue a
Notice of Award (NOA) within a period
not exceeding ten (10) calendar days
from receipt of BAC’s recommendation
and shall immediately enter into a
contract.
TIMELINE
within
10 cd
APPROVE or DISAPPROVED by
the HoPE

36. Posting Requirement
TIMELINE
within
3 cd
From date of issuance of NOA

37. Direct purchase of Agricultural and Fishery Products
The PEs may directly purchase locally-
produced Agricultural and Fishery
Products from local farmers or local
fisherfolks in order to ensure the
availability of the same and promote or
support the local farmers and
fisherfolks products in accordance with
the mandate of Sagip Saka Act.

38. Locally produced live, fresh,
chilled, frozen, and
unprocessed agriculture and
fishery-based products
including agricultural and
fishery inputs, such as food
crops, fish produce,
livestock, etc.
What are Agriculture and Fishery Products?

39. Who are the Accredited Farmers and Fisherfolk
Cooperatives and Enterprises?
Farmers and fisherfolk cooperatives
and enterprises
As defined under Section 2(g) of
Administrative Circular No. 08, series
of 2019, accredited by the Department
of Agriculture pursuant to Section 11.5
thereof and registered in the Farmers
and Fisherfolk Enterprise Development
Information System (FFEDIS)

40. Direct Negotiation with Local Farmer or Fisherfolk
• BAC shall directly negotiate
with the local farmer or
fisherfolk
• Guided by the average
prevailing farm-gate price for
the province or the
recommended retail price by
the local price coordinating
council for commodities

41. in Agriculture
Sectors
(RSBSA); or
c) Certification
Program
in
for
National
Municipal
Fisherfolk Registration (FishR)
Documentary Requirements
(Individual Farmers and Fisher Folks)
Submission of any of the following at
any time before payment shall be
sufficient:
a) Formal written offer/ bid; and
b) a certification that the farmer is in
the Registry System for Basic
Direct Purchase from Local Farmers and Fisher Folks

42. Direct
Negotiation
Post-
Qualification
Notice of
Award
Posting
Direct Purchase from Local Farmers and Fisher Folks

43. Contract Implementation
❑PE shall require performance and warranty securities for organized CSG
❑CSG/ Local Farmer/ Local Fisherfolk to submit written request for payment with
invoice
❑PE to determine need for performance or warranty security for unorganized CSG
and direct purchase from local farmer/ fisherfolk
❑Payment shall be released based on terms in contract
❑Use of digital payment system in transactions

44. Variation Order
Requests for changes or
variation orders
Simple Infrastructure
covering
Projects
shall be made and evaluated in
accordance with the Contract
Implementation Guidelines for
Procurement of Infrastructure
Projects

45. Advance Payment
in an amount
payment may be
not
Advance
released
exceeding fifteen percent
of the total contract
(15%)
price
(Contract Implementation Guidelines for the
Procurement of Goods, Supplies and Materials, and
the Contract Implementation Guidelines for the
Procurement of Infrastructure Projects, or Annexes
“D” and “E” of the IRR of RA No. 9184)