Provision of one (1) unit Shredder for Vermicomposting Project for Sustainability... Tender

Procurement Summary

Country : Philippines

Summary : Provision of one (1) unit Shredder for Vermicomposting Project for Sustainability Livelihood Program

Deadline : 17 Aug 2018

Other Information

Notice Type : Tender

TOT Ref.No.: 25831450

Document Ref. No. : GEPS-2018-08-001

Competition : ICB

Financier : Self Financed

Purchaser Ownership : -

Tender Value : Refer Document

Purchaser's Detail

Purchaser : DEPARTMENT OF AGRARIAN REFORM - NUEVA VIZCAYA PROV'L OFFICE
Vicente Galiza Natividad
COMPUTER PROGRAMMER II
Sgt. LB Perez St., Don Mariano Perez
Bayombong, Nueva Vizcaya
Bayombong
Nueva Vizcaya
Philippines 3700
63-78-3212412
63-78-3212499
pmeu_nv@yahoo.com.ph
Philippines
Email :pmeu_nv@yahoo.com.ph

Tender Details

Provision of one (1) unit Shredder for Vermicomposting Project for Sustainability Livelihood Program

REPUBLIC OF THE PHILIPPINE

DEPARTMENT OF AGRARIAN REFORM

Tunay na Pagbabago sa Repormang Agraryo



PROJECT PROPOSAL



I. Project Title: Provision of one (1) unit Shredder for Vermicomposting Project for Sustainability Livelihood Program



II. Project Proponent:



Name of ARBO Magapuy Farmers Multi-Purpose Cooperative

Number of Members 636

Number of ARB members 161

Address Barangay Magapuy, Bayombong, Nueva Vizcaya

Name of Contact person Mr. Roger P. Cordero

Cellphone Number 09171383178

Exact Title of Contact Person Manager

Name of ARC PAIMA ARC

Municipality Bayombong

Province/Region Nueva Vizcaya/02



III. Project Description:



The project involves the procurement of One Unit Biomass Shredder, 9 hp, diesel (water - cooled) engine with input capacity of 3, 046 of kg/hr. coupled with vermicomposting project which involves the construction of vermicomposting house and vermin-beds. The machine shall be used in shredding reducing the agricultural wastes that are present in the households and farms in the ARC such as coconut husk, vegetable residue, plant twigs, rice straw, plant twigs, rice straw, sugar cane bagasses, corn stalks, banana sheath, bamboo twigs to be provided to Magapuy Farmers Multi-PurposeCooperative with business address located at Magapuy, Bayombong, Nueva Vizcaya.



The purpose for the provision of the machine to the cooperative is to enhance farm mechanization and to increase agricultural productivity of farming household. This include the employment of technical staff and manpower to run the business.



IV. General Objectives



The general objective of the project is to increase cooperative income by 15% through the provision of one (1) unit biomass shredder machine by utilizing readily available agricultural wastes present in the farm, reducing its size to be converted into organic fertilizers through vermicomposting activities.



Specific Objectives:



1. To implement farm modeling project on organic agriculture for atleast 30 new ARB members;

2. To procure one (1) unit biomass shredder, locally made machine, 9 hp, diesel (water-cooled )engine with fuel consumption of 6.0 Liters per hour, dimesion length(mm), 1750 ; width (mm), 1, 260 ; height (mm) 1, 475 with input capacity of 3, 046 kg/hr. ;

3. To contribute in solving climate change concerns through mitigation measures to be adopted in the ARC particularly on solid waste utilization management in the households and farms;

4. To produce 144 bags of vermicomposting -organic fertilizers during the 1st year of operation and production increase by 50% on the second year and by 100% increase on the 3rd year;

5. Generate additional income for the cooperative and increase household income of small farmer members which will be employed by the project; and

6. To employ at least 2 members in the agrarian reform community.



V. ORGANIZATION AND MANAGEMENT PLAN:



1. Experience Of the ARBO



MAGAPUY FARMERS MULTI PURPOSE COOPERATIVE, is a duly registered cooperative with the Cooperative Development Authority bearing Registration Number 9520-02008435, operating in the province for 27 years, with high ITeMA Maturity Level of 5, and have complied with the requirements of the DAR.



The cooperative is a self-reliant cooperative and as a partner in ARC development implemented several projects for the benefit of its members. It manages a re-lending operation with LBP assistance and maintained its good credit relationship. Thru the support of various sectors and initiative of its members, the cooperative could own warehouse, solar and mechanical dryer. They have also availed of mini-dump truck being used as hauling truck for the farmer-members produce during harvest on a payment-in-kind scheme and it is also being used as public transport. The truck is used to transport their palay produce to Bambang Fruits & Vegetable Growers MPC in Bambang for milling in their rice trading business. They also have a swine fattening project which prompted them to operate a meatshop near the public market in the town proper of Bayombong.



1.1 Form of Business



The business will be an agri-business enterprise.



1.2 Organizational Structure



The operation of the Vermicomposting project with the provision of a biomass shredder management committee at the ARBO level shall be composed of a Farm Supervisor, Operator/ Helper. The individuals who will fill the earlier-mentioned positions shall be determined by the cooperative. The Farm Manager shall be identified and hired to ensure management sustainability. A Machine Operator/helper shall be identified and designated for the facility. The management staff at the ARBO level at the same time shall be responsible in the supervision and should directly be involved in the management, operation and maintenance of the facility.



On the other hand, the overall Management staff is the Project Manager of Magapuy Farmers MPC who shall be responsible in overseeing the overall management and operation of the facility. In case a certain position require expertise, the management team may opt to hire or designate, whichever is beneficial to the Cooperative, a permanent individual to be responsible in doing the work of the position.



The key personnel who are responsible in the execution of important financial and accounting tasks related to the management of the machinery include the following:



1.1Project Manager

- Responsible in overseeing the day-to-day operation of the machinery and provide direction to the overall operation and management of the machinery including the revenues generated from their use.



1.2 Farm Supervisor

- Receives payment from the operation of the machinery and remit it to the cashier of the cooperative.

- Maintains and book to document all receipts and operation of the machinery including schedule.

- Reports to the management committee the extent of accomplishment of financial targets



1.3 Operator/Helper



- Responsible for handling and maintaining machinery.

- Responsible for ensuring efficient working of the Machinery.

- Responsible in gathering, consolidating, segregating, handling and processing of agricultural waste materials

- Do maintenance works in the vermicomposting farm.



1.4 Business Experience and Qualifications of the Entrepreneur



Magapuy Farmers MPC is registered with the Cooperative Development Authority (CDA) with established track record for agri-business management, agri-credit, micro-financing and facility service provider.



1.5 Pre-Operating Activities and Expenses



Pre-operating activities and expenses related to the management and operation of the machinery include the following:

i⤠Operation and Maintenance

i⤠Training for operators and BODs

i⤠Formulation of CSF policy

i⤠Formulation of the CSF organizational structure

i⤠Preparation of business plan.



VI. TECHNICAL ASPECT:



The cooperative shall identify thirty (30) rice farmers who shall be approved with certified seeds inbred variety, farm inputs of organic fertilizers and inorganic fertilizers coupled with trainings on Palay Check Technology. The demonstration farms using certified seeds, inputs to be provided to them will be demonstrated in two years using chosen certified seed varieties which could be adopted in dry and wet seasons. The organic vermi-cast fertilizers to be used as inputs shall be out of the production in the ARBOs project. Second year production which shall be harvested from the project shall be used as inputs. The fund to be used will come from the Magapuy Farmers MPC as production loan for their selected members willing to established a demonstration palay production projects.



VII. FINANCIAL PLAN



Total Project Cost is 250, 000.00 which will be charge to Climate Resilient farm productivity Support Fund. The project has two (2) component. The hard Component shall be the procurement of One (1) unit Biomas Shredder, 9HP, diesel engine(water-cooled) with input capacity of 3.046kg. /hr., Dimensions: length: 1, 750.00mm; width 1, 260mm; height 3, 046mm; Equipped with 2 Pneumatic Tires for Ease in handling and Drawbar for towing by trailer or Jeep, machine pressed and locally made machine and to be delivered to Bayombong. in the amount of P 140, 000.00 and the soft component which is the conduct of technology trainings with techno Demo amounting to P .



Particulars Materials/Equipment unit Unit cost Total Cost

HARD COMPONENT

1. Procurement of Biomass Shredder Biomass Shredder, 9HP, diesel engine

1 140, 000.00 P140, 000.00



1. Purchase of Vermiworms Vermiworms 10 kg. 700.00 7, 000.00

2. Procurement of Tools Spading Forks 10pcs. 250.00 2, 500.00

Shovel 10pcs. 2, 500.00

3. Procurement of materials Plastic bags 1, 500pcs. 10, 000.00

Sacks 1, 500pcs. 20, 000.00

Sifter/sieve 4pcs. 100.00 400.00

Plastic Canvass10 pcs. (6x12 ft.) 10 pcs. 50.00 5, 000.00

4. Diesel fuel Initial Operation Diesel 50 ltrs. 32.00 1, 600.00

5. 5. Oil & Lubricants Oil & Lubricants 1 ltrs. 200.00 200.00

6. Construction of Vermi-beds Vermi Beds (2 x 3 m.) 4 beds 40, 800.00





SOFT COMPONENT

7. Training on Organic Rice Production cum vermicomposting (45pax)



iƒ˜ Supplies & Materials:

Ballpen - 40 pax @ 10.00

iƒ˜ Meals & Snacks: 45 pax @ 200.00

iƒ˜ Token for one (1) Resource Speaker (MASIPAG)



400.00





9, 000.00





600.00

8. Climate Change Farm Production Systems (50pax) 10, 000.00

TOTAL 250, 000.00



Charge to 4.1.1 AES

Training & Seminar 20, 000.00

Subsidies & Donation Expenses 230, 000.00

Total P 250, 000.00



VII. INCOME FORECAST:



FACILITY ONE UNIT BIOMASS SHREDDER, 9 HP., WATER COOLED DIESEL WITH INPUT CAPACITY OF 3, 046 KG. /HR., DIMENSIONS LENGTH OF 1, 750 (mm.), WIDTH 1, 260 (mm.) AND HEIGHT OF 1, 475 (mm.) EQUIPPED WITH 2 PNEUMATIC TIRES AND DRAW BAR, MACHINE PRESSED AND LOCALLY MADE MACHINE



Existing Service Area PAIMA ARC, Bayombong, Nueva Vizcaya

Capacity (ha/day) 3, 046 kg. /hr.

Covered Area/year 150 ha. /year

Total Operating Cost- P425, 000.00

Income computation - Shredder Operation:

I. Organic Fertilizers

90 kg./bed x 8 cycles/year = 720 kg. x 10 vermibeds = P7, 200 kg/50 kg/sack = 144 sacks @ P150.00/sack

II. Vermiworms

10 BEDS x 4 kg. of vermiworms x 8 cycles x P500/ kg.

Total Revenues



PRODUCTION COST:

VERMIWORMS (African Night Crawler) 2, 000 worms per bed at 1.5 kg. x P600 x 10 beds

Labor/wages:

Farm Supervisor (P300/day x 22 days

x 12 months

Operator/Helper(P250/day x 22 days

x 12 months



P21, 600.00





P160, 000.00

P181, 600.00



P9, 000.00



79, 200.00



66, 000.00

Vermicomposting house (10 -year Eco. Life) P50, 000 P5, 000.00

Depreciation Cost: Shredder machine (10 -year eco. Life) USING ST.-LINE-METHOD P12, 000.00

1. Maintenance Cost-Replacement and Maintenance of Parts 1.5% of the machine cost 1, 800.00/year

2. Diesel Fuel (6 lit./hr. x 8 hr. operation, 4X in a month @P28.00/liter for 12 months P8, 064.00

3. Oil and lubricants (every quarter, 1 liter per quarter at P180.00/liter P720.00

4. Tools=

2 spading forks @ P1, 000, shovel @ P500/pc., 150 black plastic bags @ 10.00/bag, 150 sacks at P20.00/sack, sifter/siever 2 pcs at P100/pc., plastic canvass, 10 pcs. =6 x 12 ft @ 500/PC. P11, 700

Total Production Cost P193, 484.000

Projected Annual Net Income P125, 000.00

Payback Period 2.4 years

Annual Return of Investment (ROI) 41.71



1.Net Income................................ P 175, 000.00



ROI=Net Income= P175, 000.00

Total Project Cost 425, 000.00



= 41.71%



Operating Assumptions:



Operating hours per day ======= 8 hours/day

Operating days per year ======= 259 days/year

Operating hours per year ======= 2, 072 hrs./year

Operating capacity ===== 3, 046 kg./hr.

Volume of agricultural waste shredded in during

the 1st year = _____kgs.(tons)

Volume of organic fertilizer produce during the 1st year = _______bags



SOCIO ECONOMIC ASPECTS



The Cooperative would generate income and employment for the operation of this bio-mass shredder equipment. An increase of the farmer member-s income and readily organic fertilizer available will be available to the members of the cooperative as well to other rice, corn, vegetable farmers and gardeners ; orchards, household ornamental gardeners in a very affordable and low price offer.



VIII. Marketing plan:



This business plan encompasses the management and operation of one (1) unit biomass shredder machine, 9 HP., Diesel (water cooled Engine) to be provided by the Department of Agrarian Reform (DAR) under ARBDSP activity to Magapuy Farmers Multi-Purpose Cooperative, Barangay Magapuy, Bayombong, Nueva Vizcaya. This will be a cooperative - based project wherein its operation and the production of organic fertilizers through vermicomposting shall be managed by the cooperative. Its direct target clients or customers are the members of the cooperative and other members of the agrarian reform community who are in the production of rice, corn, vegetables and other crops and even households who are on ornamental plants production inside and outside the agrarian reform community.

1.1 Location of the Project



Magapuy is in the Southwestern part of Bayombong in the province of Nueva Vizcaya, where the Magapuy Farmers Multi-Purpose Cooperative is located with business address at BarangayMagapuy, Bayombong Nueva Vizcaya. The project shall be operating within the lot already occupied by the proponent in its business operation.



The said facility will also be handed-over to Magapuy Farmers Multi-Purpose Cooperative through its representative, the Chairperson, Mr. Robert C. Pacis. The use of these facilities will be covered by the policy manual formulated by the officers of the ARBOs covered by the project.



1.2 Market Area



Presently, the most immediate market areas for the facility are the ARBO and non-ARBO members residing inside the barangays and other ARC barangay where the ARBO operating. However, market area will be province-wide.



1.3 Main Customers



The main customers of the facility are the members of the ARBO covered by the project. The ARBO members are considered the main and priority customers of the facility.



Non-ARBO members and farmers from other adjacent barangays can also benefit from the facility services. The ARBO recipient is advised to encourage non-ARBO members to join the cooperative/organization so that they will also benefit from the special rental fees offered by the project.



1.4 Total Demand



The total area covered by the subproject is about 4, 150 hectares; however, the potential service area could be smaller because of the presence of the same farm implements in the area.



1.5 Promotional Measures



To get the maximum benefit from the operation of the facility, members who patronize the use of the facility will get special discount on purchases made especially on volumes procured directly to the cooperative office. Non-ARBO members will likewise be encouraged to become members of the ARBO within the project. Promotional materials shall likewise be prepared so that customers are aware of the products locally produced by the proponent.



1.6 Marketing Strategy



The Management Team will be responsible in promoting the availability of the Shredder in positioning the product which is best within the ARC.



The ARBO will encourage non-members to join the ARBO to get benefits (ie. discount on product purchase) enjoyed by ARBO members.



IX. Pricing/Fees:



One bag of organic fertilizer shall be Php150.00 for members and Php200.00 for non-members.



X. Project Management:



The General Manager is responsible in overseeing the day-to-day operation of the machinery and provide direction to the overall management of the machinery including the revenues generated from their use.



Prepared by: Reviewed by:





GLORIA B. GATCHALIAN EDWIN C. ALGERIA

ARPT ARPO II



Endorsing Approval by: Recommending Approval:



ENGR. CHERRY N. MAGNO ZENY G. BALAUAG

CARPO-ARBDSP CAO



Fund Availability:



CHRISTINE R. JOROLAN MARY ANN P. QUIAMBAO Admin. Officer III /Acting Budget Officer Accountant II



Approved by:



PRIMO C. LARA

PARPO II





Line Items

Item No.Product/Service NameDescriptionQuantityUOMBudget (PHP)

1Biomass ShredderBiomass Shredder, 9HP, Diesel Engine1Unit140, 000.00

Closing Date : 2018-08-17

Documents

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