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APPROVING AND ADOPTING THE REVISED GUIDELINES FOR THE
IMPLEMENTATION OF INFRASTRUCTURE PROJECTS BY ADMINISTRATION
WHEREAS, Republic Act No. 9184 (R.A. 9184), otherwise known as Government
Procurement Reform Act and its Implementing Rules and Regulations Part A (IRR-A) took
effect on January 26, 2003 and October 8, 2003, respectively;
WHEREAS, under Section 53 (b) of the IRR-A, in exceptional cases expressed therein,
the procuring entity has the option to undertake infrastructure projects through negotiated
procurement, by administration or, in high security risk areas, through the Armed Forces of
the Philippines (AFP);
WHEREAS, pursuant thereto, the Government Procurement Policy Board (GPPB),
through Resolution No. 13-2005 issued the Guidelines for the Implementation of
Infrastructure Projects through Negotiated Procurement under Section 54.2 (d) of IRR-A of
RA 9184 and By Administration which took effect last 26 September 2005;
WHEREAS, there is a need to revise the above-mentioned guidelines in view of recent
amendments to the provisions on negotiated procurement under Section 54.2 (b) and (d) of
the IRR-A of R.A. 9184 under Memorandum Order No. 213 dated May 8, 2006, and to
harmonize the provisions of the guidelines with the special provisions for the Department of
Public Works and Highways (DPWH) under the General Appropriation Act (GAA)
governing implementation of projects by Administration or Force Account;
WHEREAS, the GPPB in its 5th meeting on 06 December 2006 discussed and
unanimously agreed to adopt the revised guidelines on the implementation of projects by
administration;
NOW, THEREFORE, premises considered, WE, the Members of the GOVERNMENT
PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby
RESOLVE to approve and adopt, as WE hereby approve and adopt the Revised Guidelines
for the Implementation of Infrastructure Projects By Administration, attached hereto as
Annex A and made an integral part hereof.
This resolution shall take effect immediately.
APPROVED this 6th day of December 2006 at Pasig City, Philippines
(Sgd.)
_____________________________________ _____________________________________
ROLANDO G. ANDAYA JR. ROMULO L.NERI
Secretary Director General
Department of Budget and Management National Economic and Development
Authority
GPPB Resolution No. 018-2006, dated December 06, 2006 page 1 of 7
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NATIONAL ECONOMIC AND DEPARTMENT OF NATIONAL
DEVELOPMENT AUTHORITY DEFENSE
(Sgd.)
_____________________________________ (Sgd.)
_____________________________________
DEPARTMENT OF EDUCATION DEPARTMENT OF HEALTH
_____________________________________ (Sgd.)
_____________________________________
DEPARTMENT OF THE INTERIOR DEPARTMENT OF ENERGY
AND LOCAL GOVERNMENT
(Sgd.)
_____________________________________ (Sgd.)
_____________________________________
DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF FINANCE
AND HIGHWAYS
_____________________________________ _____________________________________
DEPARTMENT OF TRADE AND DEPARTMENT OF SCIENCE AND
INDUSTRY TECHNOLOGY
(Sgd.)
_____________________________________ _____________________________________
DEPARTMENT OF TRANSPORTATION PRIVATE SECTOR REPRESENTATIVE
AND COMMUNICATIONS
Attested by:
(Sgd.)
____________________________________
RUBY U. ALVAREZ
Board Secretary, GPPB
Executive Director, GPPB-TSO
GPPB Resolution No. 018-2006, dated December 06, 2006 page 2 of 7
Annex A
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GUIDELINES FOR THE IMPLEMENTATION OF INFRASTRUCTURE PROJECTS
BY ADMINISTRATION
1.0 Purpose and Coverage
These guidelines shall provide rules for the implementation of projects by
administration by all Departments, Bureaus, Offices and Agencies of the National
Government (NGA), Government-Owned and/or Controlled Corporations (GOCCs),
Government Financing Institutions (GFIs), State Universities and Colleges (SUCs),
and Local Government Units (LGUs).
Projects undertaken by administration by the Armed Forces of the Philippines
Corps of Engineers (AFPCOE) shall be governed by the guidelines issued by the
GPPB through Resolution 09-2005 dated 28 April 2005.
2.0 Definition of Terms
For purposes of these guidelines, the following terms shall be defined as follows:
2.1 By Administration refers to the procedure by which the implementation of
an infrastructure project is carried out under the administration and
supervision of the concerned agency through its own personnel.
2.2 Implementing Agency refers to any government unit undertaking the
construction of an infrastructure project.
2.3 Job-Contractor refers to a person or entity who carries out, under his own
responsibility, supervision and control, the performance or completion of a
specific job, service or work which has been farmed out by another for the
latters benefit.
2.4 Job-order refers to employment of individuals to undertake piece or lump
sum works, or intermittent jobs of short duration not exceeding six months on
a daily basis.
2.5 Labor-only Contractor refers to a person or entity that engages in the supply
of workers/laborers to an employer but does not have substantial capital or
investment in the form of tools, equipment, machineries, work premises,
among others, and the workers recruited and placed perform activities directly
related to the principal business of the employer.
2.6 Pakyaw refers to a system of hiring a labor group for the performance of a
specific work and/or service incidental to the implementation of an
infrastructure project by administration whereby tools and materials are
Annex A of GPPB Resolution No. 018-2006, dated December 6, 2006 page 3 of 7
Annex A
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furnished by the implementing agency. For the specific work/service output, a
lump-sum payment is made either through the group leader or divided among
the pakyaw workers and disbursed using a payroll system.
2.7 Semi-skilled Work/Job refers to a work/job which needs some skills but does
not require doing the more complex work duties. Semi-skilled jobs may
require alertness and close attention to watching machine processes; or
inspecting, testing or otherwise looking for irregularities; or tending or
guarding equipment, property, materials, or persons against loss, damage or
injury; or other types of activities which are similarly less complex than
skilled work, but more complex than unskilled work. A job may be classified
as semi-skilled where coordination and dexterity are necessary, as when hands
or feet must be moved quickly to do repetitive tasks.
2.8 Skilled Work/Job refers to work that requires qualifications in which a
person uses judgment to determine the machine and manual operations in
order to obtain the proper form, quality, or quantity of material to be produced.
Skilled work may require laying out work estimating quality, determining the
suitability and needed quantities of materials, making precise measurements,
reading blueprints or other specifications, or making necessary computations
or mechanical adjustments to control or regulate the work.
2.9 Unskilled Work/Job refers to work which needs little or no judgment that can
be learned on the job in a short period of time. The job may or may not require
considerable strength.
3.0 Conditions and Requirements for the use of By Administration
3.1 Projects undertaken by Administration shall be included in the approved
Annual Procurement Plan (APP) of the procuring entity concerned. If the
original mode of procurement recommended in the APP was Public Bidding
but cannot be ultimately pursued, or the project to be undertaken by
administration has not been previously included, the BAC, through a
resolution shall justify and recommend the change in the mode of procurement
or the updating of the APP to be approved by the Head of the Procuring
Entity.
3.2 To undertake projects by administration, the implementing agency must:
a. have a track record of having completed, or supervised a project, by
administration or by contract, similar to and with a cost of at least fifty
percent (50%) of the project at hand, and
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b. own the tools and construction equipment to be used or have access to
such tools and equipment owned by other government agencies.
The criteria for evaluating the track record and capability of implementing
agencies shall be in accordance with the guidelines to be issued by the
Department of Public Works and Highways in consultation with the leagues
enumerated under the Local Government Code.
3.3 Any project costing Five Million (P 5,000,000) or less may be undertaken by
administration or force account by the implementing agency concerned. A
project costing over Five Million (P 5,000,000) may be undertaken by the
agency concerned only in the following cases:
a. emergency arising from natural calamities or where immediate action is
necessary to prevent imminent loss of life or property;
b. to comply with government commitments, as certified by the concerned
government authority;
c. failure to award a contract after competitive bidding for a valid cause;
d. termination or rescission of contract;
e. areas with critical peace and order problems as certified by the Local
Peace and Order Council;
PROVIDED, that prior authority shall be obtained from the Secretary of
Public Works and Highways, if the project cost is Five Million (P5,000,000)
up to Twenty Million (P20,000,000), or from the President of the Philippines,
upon the favorable recommendation of the Secretary of Public Works and
Highways, if the project cost is more than Twenty Million (P 20,000,000).
3.4 No contractor shall be used by the procuring entity, directly or indirectly for
works undertaken by administration.
3.5 Procurement of tools and construction equipment shall be subject to the rules
on public bidding.
3.6 For projects funded by the National Government and implemented by a Local
Government Unit, the latter shall be required to post the necessary warranty
security in accordance with Section 62 of RA 9184 and its IRR-A.
3.7 The manual labor component of projects undertaken by administration may be
undertaken in-house by the implementing agency concerned, by job-order or
through the pakyaw contracting system. In-house labor is undertaken if the
workers are employees or personnel occupying regular plantilla positions in
the implementing agency. Job-order contracts shall be governed by relevant
Commission on Audit (COA) and/or Civil Service Commission (CSC) rules.
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4.0 Pakyaw Contracting System
4.1 Pakyaw labor shall be drawn from the vicinity of the project, or Pakyaw labor
groups belong to various Barangay Associations contiguous to the project site.
Unskilled labor should be drawn from the Barangay where the project is
located; semi-skilled labor shall be recruited within the municipality,
preferably within the Barangay; skilled labor shall be recruited within the
province but preferably within the Barangay/Municipality.
4.2 The formation of Pakyaw Groups should actively involve the Barangay
leaders and the community. A Project Facilitator (PF) shall be appointed by
the implementing agency to assist in the organization of the Pakyaw Groups
and in the preparation of the Pakyaw Contracts. The PF shall, for purposes of
informing the community of the project and of organizing pakyaw groups,
shall convene community meetings, with the assistance of the Barangay
Chairperson/s. The PF shall cause the registration of all unemployed or
underemployed members of the community who are interested to join Pakyaw
groups being formed for the project.
4.3 The Pakyaw workers should be formed into groups of workers based on the
lump sum works. In case of competitive selection, pakyaw groups which were
not selected for a particular lump sum work may choose to compete for other
works requiring pakyaw groups.
4.4 Where there is competition for the award of Pakyaw works, the pakyaw labor
contract shall be awarded through competitive selection with at least three (3)
Pakyaw Groups participating. There is deemed to be a competition for the
award of pakyaw contracts when the number of laborers who registered during
the community meeting is more than what is reasonably needed for the lump
sum work required under the project. The competitive selection shall be done
on a per-output basis. And the winner(s) shall be determined based on what
group(s) undertake(s) to deliver the desired output at the lowest rate, either per
item of output or per lump sum work, within the required period.
4.5 For purposes of Item 4.4 hereof, the number of members per group shall be
determined by the Project Facilitator to ensure that at least three Pakyaw
Groups are organized for the competitive selection. The determination by the
Project Facilitator of the number of members per Pakyaw Group shall be
exercised with regard to the objective of providing work to as many laborers
as possible.
4.6 A Group Leader shall be elected from among the members of the group who
shall be the signatory to the Pakyaw Contract and any other documents
pertaining to the work on behalf of the Pakyaw Group. He may be replaced at
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any time by the group through an election for that purpose, after due notice to
the Project Facilitator and the Barangay Chairperson. Any such replacement
shall not invalidate any previous Pakyaw Contract.
4.7 In no case may Pakyaw Groups be regular or licensed contractors or organized
by and/or under the management of a regular or licensed contractor. Laborers
supplied by job-contractors/labor-only contractors are likewise disqualified to
become members of the Pakyaw groups when the job-contracting/labor-only
contracting is specifically carried out for the purpose.
4.8 The amount of a pakyaw labor contract per project shall not exceed Five
Hundred Thousand Pesos (P500,000.00) per pakyaw group.
6.0 Repealing Clause
This set of guidelines repeals GPPB Resolution 13-2005 approving and adopting the
Guidelines for the Implementation of Infrastructure Projects through Negotiated
Procurement under Sec. 54.2 (d) of IRR-A of RA 9184 and by Administration.
7.0 Effectivity
These Guidelines or any amendments hereto shall take effect fifteen (15) days after
publication in the Official Gazette or in a newspaper of general nationwide circulation
and upon filing with the University of the Philippines Law Center of three (3)
certified copies of these guidelines.
Annex A of GPPB Resolution No. 018-2006, dated December 6, 2006 page 7 of 7
