The Government Procurement Policy Board (GPPB) has streamlined the procurement process in the conduct of Negotiated Procurement-Community Participation (NP-CP) through the issuance of the Guidelines for the Conduct of Community Participation in Procurement through GPPB Resolution No. 18-2021 (Guidelines) to resolve the issues of having different rules and procedures in the implementation of Community-based Projects by the Procuring Entities (PEs).

In the years 2014-2016, the GPPB approved the issuance of the Community Participation Procurement Manual (CPPM) for all Procuring Entities (PEs) and other resolutions to cover specific programs in the conduct of NP-CP. Nonetheless, other PEs crafted their customized CPPM to suit the particular needs of their community-based projects being implemented, subject to the approval of the GPPB. Considering that recent laws have been enacted involving community-based initiatives, the GPPB, through its Technical Support Office (TSO), pursued the revision of the existing rules on NP-CP in consultation with the stakeholder agencies that deal with community-based projects. As a result, the GPPB has determined that it is imperative to harmonize all the previous issuances with recent laws and issue simplified guidelines for NP-CP that focus on the procurement rules and procedures, instead of having the CPPM and approving customized manuals for requesting PEs. Thus, the Guidelines have been developed to integrate inclusiveness in the procurement process that promotes the participation of Community or Social Groups (CSGs) and Local Farmers and Fisherfolks in Community-based Projects while incorporating the relevant provisions of such laws on community outsourcing initiatives.

The Guidelines now provides:

  1. The Local Government Units (LGUs), particularly the municipalities and barangays that are being considered as PEs, not just acting as project managers, in preparation for the devolution of basic functions, services and facilities to LGUs, as fostered under Executive Order No. 138 dated 01 June 2021 and the Department of Budget and Management and Department of Interior and Local Government (DILG) Joint Memorandum Circular No. 2021-1 implementing the Mandanas ruling (G.R. Nos. 199802 and 208488, dated 10 April 2019);
  2. Community-based Projects under NP-CP that are more defined since these pertain to the procurement of Goods, Simple Infrastructure Projects, and direct purchase from Local Farmers and Fisherfolks to be implemented at a community level to achieve certain specific social objective;
  3. Standardized end-to-end procurement procedure for the conduct of NP-CP, which incorporates a detailed post qualification process, use of performance or warranty securities, if required, and timelines for each phase from posting to award of contract;
  4. Direct negotiation with Local Farmers and Fisherfolks for the direct purchase of locally-produced Agricultural and Fishery Products, to ensure availability and to support the Local Farmer and Fisherfolks in line with the mandate of RA No. 11321 or the “Sagip Saka Act”;
  5. Simplified eligibility requirements for both Organized and Unorganized CSGs but sufficient to ascertain their legal, technical, and financial capability to undertake the Community-based Projects, which can be easily provided or not difficult to comply with;
  6. Implementation of Community-Based Projects, which includes the nearby communities as determined by the Head of Procuring Entity (HoPE) when no CSGs or members thereof of the targeted local community are available to participate;
  7. Maximum amount of the Approved Budget for the Contract (ABC) for the procurement of Goods, Simple Infrastructure Projects, and labor-only contracts, in lieu of threshold amounts based on the classification of the LGUs indicated in the CPPM. For reference, the ABC for Goods and Simple Infrastructure Projects is Five Million Pesos (PHP 5, 000,000.00), and for labor-only contracts, it is One Million Pesos (PHP 1, 000,000.00). Nonetheless, the PE may increase the ABC for effective implementation of the Community-based Projects, subject to the HoPE’s prior approval and submission of a report to the GPPB on the increased amount of the ABC and the reason thereof for proper monitoring; and
  8. Utilization of authorized digital payment system in the PE’s financial transaction to promote financial inclusivity.

In procuring Community-based Projects using NP-CP, the PEs have the flexibility to adopt and/or utilize non-procurement related policies and rules that are specific to the projects they implement.

Accordingly, a pilot implementation of the conduct of NP-CP using the Guidelines shall be initiated for stakeholder agencies namely the Department of Social Welfare and Development, Department of Agriculture, Department of Agrarian Reform, Department of Health, Department of Education, and other partner agencies of the Enhanced Partnership Against Hunger and Poverty program, which will cover identified LGUs as recommended by the DILG. The pilot implementation will allow the stakeholders to have sufficient time to evaluate the efficiency and effectiveness of the Guidelines.

Furthermore, the GPPB-TSO, has included a module on Community Participation on its Digital Learning Series and will conduct further capacity development activities for all pilot agencies to ensure the effective implementation of the Guidelines for the Conduct of Community Participation in Procurement.

For more information, PEs may refer to said GPPB Resolution and the Guidelines provided in this link.