SOP Library
SOP NO:
GM-GO14
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Area:
Grains Marketing (GM)
Activity:
General Operation (GM-GO)
Title:
Revised SOP on Warehouse Handling Services
Date Approved/Issued:
10/18/2000
Date Effective:
10/18/2000
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A. LABOR REQUIREMENT
1. The Provincial Operations Officer (POO) shall be responsible in forecasting/programming the labor requirement of the province based on historical/projected volume of transactions. Additional labor service, if necessary, shall be recommended for approval to the Provincial Manager.
2. The POO shall likewise be responsible in determining which mode of contracting labor, as discussed in the succeeding paragraph, would be most beneficial to the NFA.
B. MODES OF CONTRACTING LABOR
1.
The following are the possible modes of contracting labor
:
a. Hiring Labor Contractors
– with this mode NFA shall enter into a contract with a labor contractor who will supply NFA with laborers who will carry out NFA’s warehouse handling activities.
b. Hiring Job Order Laborers
– with this mode NFA shall hire job order laborers directly on a daily or piece rate basis.
2. NFA Provincial Offices with voluminous operations may hire a labor contractor in order to ensure a smooth flow of operations but those which could not get labor contractors in their area and/or those with minimal operations may hire job order laborers. This will all depend, however, upon the evaluation of the POO as to which mode is most beneficial to the NFA.
C. HIRING LABOR CONTRACTORS
1. Provincial Managers/OICs who will hire labor contractors shall request authority, in writing, from their respective Regional Managers.
2. The modes of hiring labor contractors are as follows:
Sealed Canvass – below Php 100,000
Public Bidding – Php 100,000 and above
3. Public bidding and sealed canvass shall be undertaken by the Regional Pre-qualification, Bids and Awards Committee (RPBAC) while open canvass shall be done by the Provincial Operations Officer.
4. All bids that will be submitted should always consider the mandated minimum wage in the area.
D. HIRING JOB ORDER LABORERS
NFA provincial/regional offices who will hire job order laborers shall follow existing procedures on hiring and payment.
E. NFA APPROVED HANDLING RATE
1. For NFA Provincial Offices that are hiring labor contractors:
The handling rate that will be applied shall be the rate quoted by the winning labor contractor which shall be specified in the
handling services contract
.
2. For NFA Provincial Offices that are hiring job order laborers
:
a. For NFA Provincial Offices that are paying job order laborers on a
daily basis,
the NFA handling rate shall be twenty percent (20%) above the mandated minimum daily wage of the area.
a.1 NFA Provincial Offices whose existing handling rates are below 120% of the mandated minimum daily wage rate in the area shall make the necessary adjustments.
a.2 NFA Provincial Offices whose existing handling rates are equal to or higher than 120% of the mandated minimum daily wage rate in the area shall continue giving such rates until there is an increase in the mandated minimum wage.
b. For NFA Provincial Offices that are paying laborers on a
piece rate basis
, the NFA handling rate shall be twenty percent (20%) above the average prevailing piece rate in the area.
b.1 The Provincial Service Rate Evaluation Committee (PSREC) shall conduct a canvass of the prevailing piece rates in the area and determine the average prevailing piece rate. One hundred twenty percent (120%) of the average prevailing piece rate in the area shall be recommended by the PSREC to the Regional Manager for approval, through the Regional Service Rate Evaluation Committee (RSREC), as the NFA provincial office’s labor piece rate.
b.2 NFA Provincial Offices whose existing handling rates are below 120% of the average prevailing piece rate in the area shall make the necessary adjustments.
b.3 NFA Provincial Offices whose existing handling rates is equal to or higher than 120% of the average prevailing piece rate in the area shall continue giving such rates until there is an increase in the average prevailing piece rate.
b.4 A canvass of prevailing piece rates in the area shall be done quarterly to determine if adjustments have to be made in the piece rate paid by the NFA to the job order laborers.
3. The Provincial / Regional Service Rate Evaluation Committee previously created under NFA Memorandum ’89 No. 084 shall be responsible in monitoring the implementation of the handling rate increase.
F.
HANDLING SERVICES CONTRACT
S
1. All
Handling Services Contract
s shall strictly conform to the revised NFA pro-forma
Handling Services Contract
(exhibit 1). Copy distribution shall be as follows:
Copy 1 - Provincial Manager
2 - Provincial Auditor
3 - Contractor
4 - Notary Public
5 - Regional Manager
6 - DLA
2. Recommending Approval / Approval
All
handling services contract
s shall be recommended for approval by the Provincial Manager/OIC, who will also act as witness for NFA, to the Regional Manager.
3. Amendments to the Contract
a. Any amendment to the pro-forma
Handling Services Contract
that may be requested by the Provincial Manager should be recommended for approval to the Administrator by the Regional Manager, Department Managers of DMO and DLA, Assistant Administrator concerned, and the Deputy Administrator for Operations.
b. The Regional Manager/Provincial Manager/OIC shall be held personally liable for consequent damages that the NFA may incur because of unauthorized revision/s.
c. Approved amendments or alterations in the pro-forma Contract shall only apply to the particular province and contractor that requested for such.
4. Requirements
a. For
new contracts
, the contractor shall be required to submit the following before the execution of the contract:
·
Police Clearance
·
Court Clearance
·
Mayor’s Permit
·
Income Tax Return
·
Surety Bond (should not be less than Php5,000.00 or 10% of the estimated annual collectibles from NFA, whichever is higher, and shall be determined by the NFA Regional/Provincial Office)
·
List of Members/Labor Force with their corresponding SSS No. (subject to periodic adjustment)
If the contractor is a corporation or partnership, it shall likewise be required to submit the following, aside from the aforementioned.
·
Articles of Incorporation or Partnership and By-Laws
·
SEC Registration
·
Authority of the representative to enter into a Contract with NFA
b. For
renewal of Contract
,
the contractor shall be required to submit the following:
·
Mayor’s Permit
·
Income Tax Return
·
Financial Statement
·
Performance Bond
5. The Provincial Manager shall be responsible in monitoring the Contractor’s compliance to the provision of the contract. Non-compliance to any provision/s in the contract shall be a ground for the termination of such contract.
G. PAYMENT OF HANDLING FEES
A
statement of account
(Exhibit 2) to be accomplished by the foreman (capataz) and certified correct by the Warehouse Supervisor, together with the WSR/WSI (handler’s copy), shall be used as bases for the processing of payments. Handling Movements and Corresponding Number of Moves are presented in
Annex A
.
H. REPORTING
The Regional Office shall submit a copy of all approved memoranda on handling rate adjustments for
job order laborers
to the Department for Marketing Operations, Operations Planning Division (DMO-OPD). They shall also report to DMO-OPD the handling rate that will be paid by a labor contractor to his/her people upon approval of the
Handling Services Contract
. These shall be supported by photocopies of all pertinent documents such as the Provincial Evaluation Sheet and duly certified canvass of prevailing handling rates (for job order laborers), and canvass of offers (for labor contractors).
This implementing guidelines shall take effect this ______ day of __________, 2000.
EDNO N. JOSON II
NFA Administrator
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Handling Services Accomplishment Form
(Statement of Account)
Handling Services Accomplishment Form