Guidelines on the Procurement of Goods and Services in the Implementation of the Disaster Risk Management and Institutional Strengthening (DRM-IS) Project

December 29, 2017

DILG CIRCULAR NO. 30-17

 

The Department of the Interior and Local Government, on behalf of the Government of the Philippines, is the Contracting Authority responsible for the administrative and financial management of the project Disaster Risk Management and Institutional Strengthening (DRM-IS) Project funded by Agence Francaise de Developpement (AFD).

As the Contracting Authority, the Department is also the Coordinating Authority for all other implementing partners and one of its undertakings is to ensure sound management of the administrative, visibility and financial aspects of the Project.

This Circular is hereby issued to provide guidelines for the smooth implementation of the Project and effective utilization of project funds. HTcADC

I. COVERAGE

This circular shall cover the procurement of goods and services in the implementation of DRM-IS.

II. LEGAL BASES

A. Financing Agreement between the Republic of the Philippines and the Agence Francaise de Developpement;

B. Guidelines for the Procurement of AFD-Financed Contracts in Foreign Countries;

C. Project Administration Manual.

III. GUIDELINES

A. Residential and Non-Residential Rates

The rates for the procurement of venues for workshops, meetings, conferences and similar activities whether within or outside Metro Manila are as follows:

1. The allowable rates/expenses for residential and non-residential per participant per day for trainings, seminars and other human resource development activities utilizing training venue/facilities of other service providers shall be as follows:

Residential (live-in) — Not more than	Php3,000.00
Non-Residential (live-out in Hotel)	2,000.00
Full day external meeting/activity (not in Hotel) with outside catering	1,500.00
Full day in-house activity utilizing DILG (LG and Interior Sectors) training venues/facilities with catering	1,300.00

2. The above residential and non-residential rates/expenses shall include meals and snacks, use of function room/s, provision for audio-visual facility system/facility and others (e.g., free-flowing coffee/tea, free internet connections, etc.) Residential rates/expenses shall include room accommodation.

3. For external activities less than one day or for external activities which do not require three (3) meals, the following rates shall apply:

Breakfast	-Not more than 300.00
Snacks (AM/PM)	-Not more than 150.00
Lunch/Dinner	-Not more than 700.00

4. For in-house activities less than one day utilizing DILG (LG and Interior Sectors) training venue which do not require three (3) meals, the following rates shall apply:

Breakfast	-Not more than 200.00
Snacks (AM/PM)	-Not more than 100.00
Lunch/Dinner	-Not more than 450.00

Any allocation in excess of the allowable rates mentioned above, may be allowed for justifiable reasons such as during the conduct of conventions, national fora/summits and other similar activities, the participants of which are high level officials/executives/dignitaries; provided, that the approval/authorization by the Secretary or his duly authorized representative shall be secured prior to the activity. Procurement of services shall be conducted within the threshold as indicated in the succeeding paragraph herein.

B. Threshold amount and corresponding mode of procurement for AFD Fund

Pursuant to Articles 5.6 and 6.4 of the Financing Agreement, the mode of procurement to be used shall be within the provisions of "Guidelines for the Procurement of AFD-Financed Contracts in Foreign Countries," to wit:

AMOUNT	MODE OF PROCUREMENT	PERSON/UNIT RESPONSIBLE	PAYMENT BASIS
Not exceeding €200,000 (approx. below Php11,000,000)	National Shopping supported by at least three (3) quotations from Suppliers and/or Service Providers.	Project Management Office (PMO)	Contract (Services)/Invoice (Goods)
For amount exceeding €200,000 (approx. above Php11,000,000) and above	1. Public Bidding for Procurement of Supplies, Equipment and Printing Services 2. Public Bidding for Procurement of Venue, Accommodation and Food	DRM-IS Special BAC and BAC Secretariat	Contract/Purchase Order

C. Threshold amount and corresponding mode of procurement for GoP Counterpart Fund

The procurement guidelines applicable to expenditures using the GoP Fund follow the provisions under the Republic Act 9184 and its Revised Implementing Rules and Regulations (RIRR).

D. Project Procurement Management Plan (PPMP)

The Project Procurement Management Plan (PPMP) for GoP and AFD funds are to be submitted on a yearly basis, for the duration of the project.

IV. EXPENDITURE MONITORING AND VERIFICATION (AUDIT)

Monitoring of expenditure shall be in accordance with the rules and procedures established in the Procurement Guidelines as provided by AFD (Financing Agreement clause 5.6, page 10). aScITE

There will be an expenditure verification on an annual basis for the duration of its utilization by an external auditor that must be carried out by an independent and reputable auditing firm. The auditing firm shall verify that all Advances paid into the Project Account have been used in accordance with the terms of Financing Agreement (Financing Agreement Clause 3.2.2 (h), page 7).

This Circular shall take effect immediately.

For strict compliance.

(SGD.) CATALINO S. CUYOfficer-in-Charge