DA Administrative Order No. 05, Series of 2019 institutionalizing the Participation of Farmer's and Fisherfolk's Organizations or Associations in the Procurement of Goods and Civil Works pertaining to the Needs of the Farmers and Fisherfolks

Republic of the Philippines OFFICE OF THE SECRETARY Elliptical Road, Diliman., Quezon City 1100 Philippines ' Tax Identification Number: OP0-845-895 17 May 2019 ADMIN1i1'RATIVE CIRCULAR NO. · 0 Series of 2019 SUBJECT: INSTITUTIONALIZATION OF THE FARMER'S AND FISHERFOLK'S ' ORGANIZATIONS OR ASSOCIATIONS' PARTICIPATION IN THE PROCUREMENT OF . GOODS AND CIVIL WORKS PERTAINING TO THE NEEDS OF THE FARMERS AND FISHER FOLKS ' Whereas, there is efficiency in thy use of resources when beneficiaries of projects are engaged not just in determining their actual needs, but also in project procurement and implementation process;1 Whereas, participation is a key good governance dimension that is expected to improve the quality and responsiveness of public spending by aligning procurement with project sustainability and social objectives,:thereby directly uplifting the economic, environmental, and social well-being of the communities;2 Whereas, recent trends toward pa;rticipatory governance and community empowerment have enabled ordinary members of the community to have a more active role in procurement planning, actual procurement and contract implementation processes.3 Whereas, the procurement programs of the government should be effective in the context of providing answers to the needs of the agencies that are conducting the procurement as well as the farmers and fisherfolks that are the beneficiaries thereof; Whereas, direct financial or material assistance that takes the form of goods, supplies or items that needs to be procured (~.g., relief goods) are subject to procurement rules and regulations in line with Section 3.5 of Circular No. 01-2017;4 Whereas, the Department recognizes the need for an open avenue for farmer's and fisherfolk's participation through r,epresentation particularly in project planning and the procurement program of the Department; In order to empower farmer and fisherfolk and establish policies tl1at are more efficient and responsive to their needs through mechanisms and processes that encourage participation in procurement and decision makin;g in major projects and programs of the Department, the following measures are hereby adopted: I. SCOPE AND APPLICATION This Order shall apply to the Central Office, Bureau, Regional Field Offices, and Attached ' Agencies under this Department in ;the procurement of Goods and Civil Works pertaining to the needs of the farmers an·ct fisher folks. 1 Chapter I, Manual on Community Participation in Government Procurement, p. 5 2 2.1,/bid 3 Ibid, p.S 4 GPPB NPM No. 011-2018 II. DEFINITION OF TERMS 1. End User /lmplem~nting Unit- the unit/ office responsible for the preparation of the Project Procurement Management Plans (PPMPs) for programs, activities, and projects (PAPs) anict all pre-procurement documents necessary for procurement activity, including but shall not be limited to, the Technical Specifications, Scope of I Work, or Terms of Reference,5 and have direct supervision or administration over the implementation of ~he contract. 6 ' 2. Farmer's and/or Fisherfolk's Organizations/ Associations- refers to farmer and fisherfolk's cooper;ative, associations, or corporations duly registered with appropriate government agep.cies and which are composed primarily of small agricultural produ~ers, farmers, farm work:ers agrarian reform beneficiaries fisherfolk who volu~tarily join together to from business enterprises or non-business ' organization which !they themselves own, control and patronize.7 3. Observers- refers to the following: (1) a representative of the Commission on Audit; (2) an observer fro~ a duly recognized private group in a sector or discipline relevant to the procurement at hand ( e.g., Philippine Contractors Association for infrastructure); (3) ;3n observer from a non-government organization (NGO); and (4) I Farmer's and/or Fisherfolk's Organizations/ Associations. III. PLANNING AND IDENTIFICATION OF PROJECTS The Department hereby: adopts a participatory process of project planning and identification8 through farmer's and/ or fisherfolk's participation with the following procedural requirements: · 1. The End User /Implementing Unit shall identify project proposals in line with the ' procuring entity's strategic plan, key results areas, and major final outputs that will be procured with the participation of target farmer and/ or fisherfolk beneficiary(ies ); 2. The End-User /Implementing Unit shal1 prepare the objectives, requirements, estimated budget, outputs and target farmer and/ or fisherfolk beneficiary(ies) of the selected project and present the same through consultation meeting with them for review and discussibn. 3. The proposed projects that were found to be acceptable by the target farmer and/or fisherfolk beneficiary(ies) shall be included in the end user unit's PPMP and the procuring entity's approved APP. ' Accordingly, the End-User /Implementing Unit concerned shall conduct the said consultation meeting or discussion withi the target farmer and/ or fisherfolk beneficiary(ies) for purposes of drawing up the farmer's: and fisher folk's needs relative to Specifications, Scope of Work, ' and/or Terms of Reference of the proposed bidding project. IV. PRE-PROCUREMENT CONFERENCE The Bids and Awards Committee (BAC) shall take into consideration the farmer's and/or fisherfolk's needs in the re~iew of the Technical Specifications, Scope of Work, and Terms of I Reference, assisted by the: Technical Working Group (TWG) and End-User/Implementing I 5 Section 7.3.2, IRR of RA No. 9184 ' 6 Section 7.3.5, Annex I (6), IRR of RA No. 9184 7 Section 4, Republic Act No. 843Sialso known as Agriculture and Fisheries Modernization Act of 1997 8 Item 2.3 (A), Manual on CommuITTity Participation in Government Procurement Page 2 of 5 Unit prior to the conduct of bidding and in the preparation of bidding documents and agree on the final technical, legal and financial eligibility requirements of the procurement project. However, reference to bra11d names shall not be allowed.9 The BAC shall likewise ensure that the terms and conditions for the contract to be adopted will be more advantageous to the government. ' IV. OBSERVERS DURING THE BIDDING PROCESS ! ' To enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite, in addition to the representative of the COA, at least two (2) observers to sit in its proceedings. 10 Farmer and/ or fisherfolks 1 may affiliate11 themselves with an organization duly registered with the Securities and Exchange Commission (SEC) or the Cooperative Development Authority (CDA) and, as 09serversJ should meet the following criteria:12 I ' ' a) Knowledge, experie1;1ce or expertise in procurement or in the subject matter of tl1e contract to be :bid; b) Absence of actual or;potential conflict of interest in the contract to be bid; and : ' c) Any other relevant c.riteria that may be determined by the BAC. ' In order to promote greaker awareness and a more empowering participation of citizen stakeholders, qualified non-government organizations (NGOs) based in communities of project beneficiaries are encouraged to volunteer as observers in procurement activities in their locality. I . A. Observers Responsibilities13 a) To prepare ~he report either jointly or separately indicating their observations made on the procurement activities conducted by the BAC for submission to the HoPE, c 1 opy furmished the BAC Chairperson. The report shall assess tl1e extent of the BAC's compliance with the provisions of this IRR and areas of improvement in the, BAC's proceedings; b) To submit their report to the Procuring Entity and furnish a copy to the GPPB and Office of the Ombudsman/Resident Ombudsman. Ifno report is submitted by the obs~rver within seven (7) calendar days after each procurement activity, then it is presumed that the bidding activity conducted by the BAC ' followed th~ correct procedure; and c) To immedi4tely inhibit and notify in writing the Procuring Entity concerned of any actual dr potential interest in the contract to be bid. B. Observer's Right~ a) Attend any ;or all stages of the procurement process; I ' I 9 Section 18, IRR of RA No. 9184: 10 Par. 3, II. Definition of Terms of this Adn:iinistrative Circular 11 2014 Procurement Observer's Guide, p.6 12 Section 13.2, IRR of RA No. 9 r 84 13 Section 13.4, Ibid Page 3 of 5 ' b) Record what they have observed during any of the procurement proceedings; c) Access the I following procurement related documents upon request and subject to signing of Confidentiality Agreement: such as Annual Procurement Plan (APP) ~nd Project PPMP; Minutes of the BAC Meetings; Abstract of Bids; Opened Proposals and Post Qualification Summary Report.14 C. Observer's Accountabilityis I a) Observers j>hall ob:serve the Code of Conduct for Observers16 P;ovided under the 2{)14 Procur:ement Observer's Guide and may be held liable'in cases of commission of prohibited acts, such as, the prohibition on conflict of interest, kit kbacks,. acceptance of gratuities, discussing detailed information with tl1e biqders in support of the "no contact rule" under R.A. No. 9184 and its revised IRR. I ' b) In case of failure ~o perform their duties and responsibilities or in case of inapproprif1te beh\:ivior during the bidding process, observers a11d the organizations they: represent shall be accountable and liable for any or all actions in violation of the procurement law, its associated rules, and other procurement-related statutes, rules, and regulations during the procurement I process. 1 ' ' c) In as muqh as the law requires that observers must have knowledge, experienc~ and expertise in procurement or in the subject matter of the ' contract toibe bid, NGOs are encouraged to provide the necessary training and orientation to their members before deploying them as observers. It is strongly r~commended that a thorough and rigid screening be performed to ensure the·integrify of the NGO observer. I ' d) Procuring entities may disqualify observers, or the NGO they represent, under I Section 13!.2(c) of the IRR wherein the BAC of the PE concerned may impose any other relevan~ criteria applying R.A. No. 9184, which the observers shall n1eet befdre being able to participate as an observer. Moreover, errant ' observers 1 are not r recluded from being charged with a civil or criminal case, when the circumstances so warrant and all the requisites are present, under existing cif il and driminal laws. e) Observer~ shall not be granted honoraria for its participation in the procurement process in order to ensure their independence from any influence !that the body it monitors may assert so that the integrity of its observations will not be compromised or tainted with bias.17 ' f) A duly authorize,d observer may initiate the suspension and blacklisting proceedings against a bidder /s by filing a written complaint with the Bids and ' Awards Committee ("BAC") pursuant to 5.1, Appendix 17 Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors and Consultants. I 14 2014 Procurement Observer's Guide, p.8 lS Ibid, p.9 . 16 Ibid, p.36-39 I 17 GPPB NPM 037-2007 and NPM 011-2005 ' ' Page 4 of 5 The foregoing provisions shall have suppletory application to the provisions of the revised IRR of RA No. 9184. This Order hereby r.m::>nds, repeals, revokes and renders of no force and effect any order or other issuance . consistent herewith. EMMANUEL Secretary OL ·1 DEPARTMENT OF AGRICULTURE IIIIHll901Ulllill1Ullllil!I\I Ill HWIIU Mll!rdllllnli in r•plying pls cite this code : For Signature: S-05-19-0327 Receiv•d : 05/2112019 11 :53 AM Page 5 of 5