Guidelines on the DA Procurement of Agricultural and Fisheries Machinery and Equipment

July 14, 2017

DA ADMINISTRATIVE ORDER NO. 06-17

 

In order to address the issues and problems on the procurement of agricultural and fisheries machinery raised in various meetings and consultations of the Agriculture and Fishery Mechanization Committee (AFMeC) of the Philippine Council for Agriculture and Fisheries (PCAF), and as a result of PCAF monitoring on DA programs and projects conducted hereto attached as Annex "A", and in view of the implementation of R.A. No. 10601 (Agricultural and Fisheries Mechanization Law) and other pertinent laws and regulations, the following guidelines and measures are hereby issued to ensure the proper implementation of R.A. No. 9184 (Government Procurement Reform Act) and its Implementing Rules and Regulations (IRR):

1. DEFINITION OF TERMS

1.1 Agricultural and Fisheries Machinery and Equipment — refers to machinery and equipment for the production, post-production, harvesting, processing, storage, manufacture, preserving, transporting and distribution of agricultural and fisheries products. It includes, but is not limited to, tractors and their attachments, power tillers, seeders, transplanters, windmills, harvesting machines, crop protection and maintenance equipment, irrigation equipment and accessories, greenhouses and other thermal conditioning equipment, livestock equipment, fishery equipment, slaughtering equipment, meat/fishery and crop processing equipment, post-harvest machines such as milling machines, dryers, threshers, grain and other strippers, agricultural transport machinery and storage facilities including cold storage, reefer vans, slaughter houses and fishing boats of three (3) gross tons or less. New agricultural and fishery machinery includes those that are newly imported as well as one that has been used since its date of manufacture. HTcADC

1.2 The following acronyms are also used in this Administrative Order:

 

AFC	- Agricultural and Fishery Council
AFMeC	- Agriculture and Fishery Mechanization Committee
BAC	- Bids and Awards Committee
BAFE	- Bureau of Agricultural and Fisheries Engineering
DA	- Department of Agriculture
LGU	- Local Government Unit
NAFMP	- National Agri-Fishery Mechanization Program
PAES	- Philippine Agricultural Engineering Standards
PCAF	- Philippine Council for Agriculture and Fisheries
PhilGEPS	- Philippine Government Electronic Procurement System
RAED	- Regional Agricultural Engineering Division
RED	- Regional Executive Director
RFO	- Regional Field Office
TESDA	- Technical Education and Skills Development Authority
TWG	- Technical Working Group
UP	- University of the Philippines
UPLB-AMTEC	- University of the Philippines Los Baños-Agricultural Machinery Testing and Evaluation Center

2. PROCUREMENT PLANNING

2.1. Pursuant to Section 7, Rule II of the Revised Implementing Rules and Regulations of Republic Act No. 9184, otherwise known as The Government Procurement Reform Act, all procurement, including agricultural and fishery machinery, should be meticulously and judiciously planned by the Procuring Entity. Consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of government functions shall be included in the Annual Procurement Plan.

2.2. In ensuring the above procurement planning requirements (Item 2.1), the DA procuring entities shall strengthen their planning, programming and budgeting process by:

a) proper coordination with their Agricultural Engineering, Planning and Budget Divisions/Units and Banner Program Coordinators and for this purpose, the BAFE shall act as Over-all Coordinator for the national planning and programming on the procurement of agri-fisheries machinery and equipment. In the meantime that the BAFE is not yet officially established, the interim BAFE shall perform this function;

b) strict compliance with the existing selection and prioritization criteria/guidelines of the DA agricultural and fisheries mechanization program;

c) proper and thorough validation and inspection of project beneficiaries and sites;

d) timely formulation of annual agricultural and fisheries machinery procurement plan which shall be consistent and supportive to the NAFMP and the LGUs' Local Agricultural and Fisheries Mechanization Plan pursuant to Sections 5, 6 and 13 of R.A. No. 10601 and in compliance with R.A. 9184, the Government Procurement Reform Act and its Revised Implementing Rules and Regulations, with respect to the timely formulation of the Annual Agricultural and Fisheries Machinery Procurement Plan;

e) ensuring that project beneficiaries selected should be able to provide their counterpart, if applicable;

f) requiring the endorsement of the projects by the AFCs in the locality;

g) requiring Validation and Utilization Plan of agricultural and fisheries machinery projects costing Php1Million and above. The said plan shall be prepared/certified by a licensed agricultural and biosystems engineer to be engaged by the proponent or by the Provincial/City or Municipal LGU Agricultural Engineering Division/Section/Unit;

h) ensuring the availability of competent agricultural and fisheries machinery operators and technicians/farm mechanics in the area, which the project recipients shall hire or engage. Operators who are certified by TESDA are preferred; and

i) ensuring the compliance of project beneficiaries with the provisions of Section 13 of R.A. No. 10601 and DA Memorandum Circular No. 4, series of 2015 pertaining to the required manpower complement of agricultural and fisheries machinery operators and technicians and agricultural engineers/agricultural and biosystems engineers in agricultural and fisheries machinery pools and service centers. aScITE

3. INVITATION TO BID

All DA Procuring Entities must ensure wide participation of qualified bidders in the bidding of agricultural and fisheries machinery and equipment. The PHILGEPS posting must also be placed under their respective commodity listings (i.e., agricultural machinery).

4. TECHNICAL SPECIFICATIONS

4.1 The technical specifications as part of the Bidding Document prepared by the procuring entity shall be based on relevant characteristics and/or performance requirements, and must conform to the PAES. It must be commercially available and not lead to favor certain brand/s or tailor fitting. The DA compendium may serve as reference/shopping list;

4.2 The BAFE, RAED and Agricultural Engineering Division/Unit of concerned DA bureaus and attached agencies/corporations, pursuant to their mandates under Sections 24 and 29 of R.A. No. 10601 shall be the responsible and authorized unit to prepare and/or prescribe technical specifications for agricultural and fishery machinery;

4.3 The technical specifications of the technical component of the bid shall be prepared, signed and sealed by a licensed agricultural and biosystems engineer pursuant to Section 27 (b) of R.A. No. 10915; and

4.4 The preparation of technical specifications shall be anchored on the policy under Section 43 of R.A. No. 9184 and Section 15 of R.A. No. 10601 in which the purchase of locally-manufactured agricultural and fisheries machinery and equipment shall be given preference.

5. AMTEC TEST REPORT

5.1. Test results shall be issued only by AMTEC and/or other accredited testing centers. Tampering with AMTEC test results is a ground for black listing of bidders pursuant to Section 65, Article XXI of R.A. No. 9184, without prejudice to other available legal remedies;

5.2. The BAC and/or TWG of the DA procuring entities shall directly coordinate with AMTEC to check the validity and authenticity of the Test Report;

5.1. n Small agri-fishery machinery and equipment costing fifty thousand pesos (P50,000.00) and below and agricultural and fisheries machinery to be used for R&D which are not covered by the existing PAES, are exempted from the submission of AMTEC test report based on approved PCAF-AFMeC Resolution No. 5, Series of 2016 dated March 31, 2016 and memorandum dated April 1, 2016 until national policies and procedures have been issued;

5.2. Since the AMTEC Test Report is a mandatory document to be submitted by the bidder, AMTEC in the Visayas and Mindanao shall be immediately established, including the accreditation of testing centers in other parts of the country.

 The REDs of DA Region VI and DA Region XI shall support AMTEC in the immediate establishment of satellite centers in the Visayas and Mindanao in coordination and collaboration with BAFE, PCAF-AFMeC, State Colleges and Universities, and other concerned government agencies.

6. COMPLIANCE WITH THE PHILIPPINE AGRICULTURAL ENGINEERING STANDARDS (PAES)

Pursuant to Section 21 of R.A. No. 10601, the DA in collaboration with the Professional Regulatory Board of Agricultural and Biosystems Engineering shall enforce the PAES on the manufacture, sale and distribution of agricultural and fisheries machinery and equipment, and its accreditation system for agricultural and fisheries facilities and establishments. HEITAD

In line with this policy, the DA procuring entities, BAC and TWG shall ensure compliance with the PAES in the procurement process of agricultural and fisheries machinery.

7. BID EVALUATION AND POST-QUALIFICATION

7.1. The BAC and the TWG of the DA procuring entities shall ensure proper bid evaluation and post-qualification of the participating bidders in accordance with the guidelines set under R.A. No. 9184 and its Revised IRR. Strict compliance with the legal, technical and financial requirements in the bid evaluation and post qualification must be observed.

7.2. The BAFE shall promulgate registration guidelines of agricultural and fisheries machinery manufacturers, fabricators, assemblers and importers within six (6) months from publication of this Administrative Order.

8. AWARD, IMPLEMENTATION AND OTHER PROCUREMENT STAGES

8.1. All DA procuring entities shall ensure timely release of payments to the bidders pursuant to the contract.

8.2. The Procuring entities and BACs to strictly follow the number of days required in the bidding of projects as prescribed in Annex "B" of the Revised IRR of R.A. No. 9184, and to make timely replies to all requests of bidders.

The DA-RFOs and concerned bureaus and attached agencies/corporation may adopt and promulgate additional/supplemental guidelines regarding the implementation of this Administrative Order.

9. EFFECTIVITY

This Administrative Order shall take effect within fifteen (15) days upon publication in a newspaper of general circulation and filing in the Administrative Register of the University of the Philippines (UP) Law Center.

(SGD.) EMMANUEL F. PIÑOL

Secretary

 

n Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence.