A quiet revolution is unfolding in the SOCCSKSARGEN Region.
Farmers and fisherfolk groups, women associations, cooperatives, organized Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries, and other community-based organizations (CBOs) have become suppliers in government procurement activities, mainly for needed supplies of food, dairy, and other agri-fishery products.
In 2024 alone, 13 CBOs, mostly farmer groups, across SOCCSKSARGEN Region earned a staggering P104 million from supplying hot meals and milk to feeding programs of the Department of Social Welfare and Development, Department of Education, and National Nutrition Council, and rice and other food items for persons deprived of liberty in Bureau of Jail Management and Penology facilities.
One of these CBOs was Tboli Vegetable Farmers Association (TVFA) that bagged P5.264-million contract with the Department of Social Welfare and Development to supply assorted vegetables and rice for the Cycle 14 supplementary feeding in Koronadal City and nearby municipalities of Tupi and Tboli, all in South Cotabato.
“Para sa amin, malaking tulong ito, kasi marami tayong matutulungan na mga member na nagtatanim ng gulay. So far, ang members namin happy,” Renante Gegantoka, who was then the vice president of the TVFA, told the Philippine Information Agency.
(For us, this is a big help because we can assist many of our members who are growing vegetables. So far, our members are happy.)
“Masaya rin ang iba pang mga magsasaka sa aming lugar, kahit hindi miyembro, dahil nabibili ng organisasyon ang kanilang mga gulay sa mga panahon na magkulang ang ani ng mga miyembro namin,” he added.
(Other farmers in our area, even those who are not members, are also happy because the organization buys their vegetables during times when the harvests of our members fall short.)
TVFA has since upgraded into a cooperative, the Highland Vegetable Farmers Agriculture Cooperative (HVFAC), for better access to markets and essential services such as training and credit.
CBOs’ success is attributed to NP-CP, a government procurement procedure called negotiated procurement—community participation (NP-CP) that ensures a market, better income, and empowers them in fighting hunger and malnutrition.
In the recent SOCCSKSARGEN Regional Forum on Food NP-CP, Department of Budget and Management (DBM) Regional Director Akmad J. Usman explained in detail this relatively less appreciated procurement process that he emphasized effectively bypasses layers of go-betweens in trading chain, thereby ensuring savings on the government side and the larger profits for farmers, fisherfolk and other local community suppliers.
Legal basis
NP-CP, Usman explained, is a procurement method that emphasizes the involvement of CBOs, also referred to as community social groups (CSGs) in delivering goods, services and infrastructure through direct negotiation.
NP-CP, he underscored, is specifically mandated in Republic Act 120009 (New Government Procurement Act). Section 35 (k) of the Act states: “Community Participation. The PE [Procuring Entity] may directly purchase agricultural and fishery products from local farmers and fisherfolk and directly negotiate simple Infrastructure Projects with local communities or social groups or members thereof.”
Unlike in the Republic Act. 8194 (Government Procurement Reform Act), which required that all procurements shall be undertaken through public bidding, in the new law “it is not anymore required to conduct public bidding as a general rule; instead, what is provided are modalities.”
“Meaning to say, depending on the suitability — because there is now a principle called proportionality — depending on the requirements of the program, the objectives, and even the capacity of the government entity, they can choose whatever appropriate or suitable of modality,” Usman explained further.
Usman emphasized that community participation ensures value for money and efficiency by eliminating layers of middlemen profiting without even adding value.
“The provision is very clear. What is lacking is appreciation. We have to campaign for it.” he said.
Community participation
Usman noted that community participation in government procurement is open to both organized and organized community or social groups (CSG).
Based on the guidelines of the Government Procurement Policy Board (GPPB), organized CSGs are defined as those registered under the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), Department of Agriculture (DA), and National Commission on Indigenous People (NCIP).
Organized CSGs may also refer to accredited farmers and fisherfolk cooperatives and enterprises, civil society organizations, community-based organizations, agrarian reform beneficiary organizations, and DSWD sustainable livelihood associations.
On the other hand, unorganized CSGs may include labor community groups or “pakyaw” groups, association of barangay health workers, farmers, fisherfolk, women, elderly, indigenous peoples, and parents-teacher associations, among others.
The DBM regional chief, however, emphasized that whether contracting with organized or unorganized CSGs, the government mandates that “our suppliers must possess legal, technical, and financial capability,” as demonstrated by various documents, including invoices, receipts, and the largest completed contracts.
At present, according to data from the Enhanced Partnership Against Hunger and Poverty (EPAHP), a Department of Social Welfare and Development-led, multi-stakeholder coalition, 31 CBOs in the four provinces of Region 12 are already compliant to participate in the NP-CP process.
These CBOs, according to Ibrahim Sangcupan, EPAHP 12 regional program coordinator, are backed by government agencies such as Department of Agriculture, National Irrigation Administration, Philippine Carabao Center, National Dairy Authority, and Department of Social Welfare and Development, as well as private sector partner, Mahintana Foundation Inc.
An important factor to kick off a community participation process, Director Usman noted, is for an end-user unit (i.e., a division of a national line agency) must prepare a project proposal with defined objectives, and the target community of the community-based project. The end user must also prepare technical specifications of the products to be purchased with clear standards of functionality and performance.
In case of simple infrastructure projects, the procuring entity shall ensure the conduct of detailed engineering activities.
Under RA 8194, community participation is limited to approved budget contracts (ABC) of P5 million for goods, P5 million for simple infrastructure projects, and P1 million for labor-only contracts.
“This provision is no longer carried over in the new procurement law. Meaning to say, wala nang limit, unless may guidelines,” Usman stated.
As provided in the new law, “a PE (procuring entity) may increase the ABC subject to prior approval of the HOPE (head of procuring entity). HOPE to submit a report to the GPPB on the amount of the ABC approved and the reason for monitoring.”
“Clearly in the law, the procuring entity 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,” Director Usman stated.
These products may include 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.
Under this scheme, the Bids and Awards Committee (BAC) shall directly negotiate with local farmers or fisherfolk, guided by the average prevailing farm-gate price for the province or the recommended by the local price coordinating council for commodities.
Usman, however, pointed out that “one good provision in the new law is the delegation of the functions of the functions of the BAC for certain modalities. Meaning to say, if the BAC would not want to negotiate, they can delegate it to the end-user.”
Eligibility requirements
To qualify for NP-CP, an organized community social group must present a certificate of registration from SEC, DTI, CDA, DA, Department of Labor and Employment (DOLE), or NCIP. In the case of civil society organizations, non-governmental organizations, and people’s organizations, the certificate of registration may come from national government agencies or local government units.
An organized CSG is also required to submit sworn affidavits on disclosure of no relationship and/or ownership/interest in related business.
Additionally, such organizations are also required to submit a statement of all completed contracts similar to community-based projects to be bid and/or list of work experiences of members.
Organized CSGs that would negotiate for a simple infrastructure project must present a statement of all ongoing government and private contracts and Philippine Contractors Accreditation Board (PCAB) license.
As a financial requirement, organized CSGs should also submit a photocopy or scanned copy of a bank book with latest bank account information, and for those who have participated in any government community-based project, their latest income tax return and audited financial statement.
Those negotiating for simple construction must also present a computation of their net financial contracting capacity (NFCC).
Meanwhile, for unorganized CSGs, the requirements are: photocopy of government-issued ID of the officers or members; sworn affidavit showing no conflict of interest and commitment to perform and deliver all obligations; list of completed work experiences of members; and photocopy or scanned copy of the bank account under the name of any of its officers or members with complete account information or proof that the group maintains books of accounts (cash receipts journal, cash disbursement journal, general ledger).
Usman also underscored in his presentation that individual farmers and fisherfolk may also enter into negotiated procurement with government offices.
“Contrary to our understanding that an organized organization must have these particular requirements, No, they (individual farmers and fisherfolk) can directly negotiate, because they are part of the unorganized groups,” he explained.
For direct procurement, a farmer or a fisherfolk may submit a formal written offer/bid and a certification that he/she is registered in the Registry System for Basic Sectors in Agriculture (RSBSA) or the National Program for Municipal Fisherfolk Registration (FishR).
To learn more about NP-CP, you may visit the website GPPB (www.gppb.gov.ph) and its social media accounts.
The regional forum on NP-CP in General Santos where this topic was discussed was implemented by the GIZ-SPADe project and Collectif Stratégies Alimentaires (CSA) which co-financed by the EU and the Federal Ministry for Economic Cooperation and Development (BMZ) of the German government. (DED, PIA Region 12)
