Sagip-Saka: How a cooperative gets accredited to sell directly to the government?

GPPB Approves New Procurement Guidelines for Sagip Saka

To sell directly to government agencies without going through competitive public bidding, a cooperative or enterprise must be registered and accredited under the Farmers and Fisherfolk Enterprise Development Information System (FFEDIS) managed by the Department of Agriculture (DA).

The Government Procurement Policy Board (GPPB) has heavily streamlined this process to eliminate standard red tape. Crucially, cooperatives do not even need to be registered in PhilGEPS to participate in this specific program.

The pathway to accreditation and securing government contracts follows a clear process:

Step 1: Secure Your Core Legal Registration

Before approaching the DA, your group must be recognized as a formal legal entity. The government looks for standard organizational credentials:

• For Cooperatives: A Certificate of Registration from the Cooperative Development Authority (CDA).

• For Associations/Farmer Groups: Registration from the Securities and Exchange Commission (SEC) or the Department of Labor and Employment (DOLE).

• For Micro-Enterprises: A Department of Trade and Industry (DTI) registration and a valid Mayor's/Business Permit.

Step 2: Enroll in the DA-FFEDIS Registry

The critical step that unlocks direct bidding exemptions is getting listed on the FFEDIS database.

1. Gather the Documentation:1-2 days.

Prepare your official legal registration certificate (CDA, SEC, or DTI), your valid Business Permit, and download the official FFEDIS Enrolment Form.

2. Submit via AMAD: Walk-in or Online.

Submit your files to the Agribusiness and Marketing Assistance Division (AMAD) at your nearest DA Regional Field Office. Alternatively, registration can be processed digitally through the web portal at ffedis.da.gov.ph.

3. Validation and Review: DA Internal Process.

The AMAD registration officer reviews and validates the submission to ensure the cooperative produces active agricultural or fishery commodities.

4. Issuance of Certificate: Final Approval.

Once validated, the DA Regional Executive Director approves and issues your official FFEDIS Certificate of Registration. Your cooperative's profile is now officially part of the national database used by buying government entities.

Step 3: Transacting via "Negotiated Procurement - Sagip Saka" (NP-SS)

Once accredited, the cooperative can actively bid for government supply opportunities. The procurement rules operate under a specialized track:

• No Red Tape: Government agencies (like schools, public hospitals, or provincial offices) looking to buy food items will check the FFEDIS database or post opportunities directly on it.

• The Single-Proposal Rule: Unlike standard public bids that require multiple competing quotes, the buying agency can legally award a contract based on a single, valid proposal from an accredited cooperative, drastically shortening the timeline.

• Price Finalization: The agency and the cooperative negotiate the contract pricing directly. By law, the buying price must give the cooperative a fair profit margin, using the local prevailing farmgate price as a benchmark.

Note on Compliance: Even though standard public bidding documents are waived, the cooperative must still sign a standard Omnibus Sworn Statement during contract finalization to attest to the authenticity of its documents and its capacity to deliver the harvest.

Cagayan Agrarian Reform Employees (CARE) Cooperative Supports ARBOs through Rice Buying Initiative

Many farmers in Cagayan are struggling as farmgate prices of palay continue to drop, leaving them with little profit (mostly loss) despite long months of hard work under the sun. After enduring floods, rising input costs, and unpredictable weather, the recent decline in rice prices has made it harder for them to recover their investments and sustain their families. For many agrarian reform beneficiaries, every sack of rice sold now earns only a fraction of what it once did. Amid this challenge, the DARPO-Cagayan employees cooperative’s effort to buy directly from ARBOs offers hope—ensuring that farmers are paid fair prices and that their harvests reach consumers who value their labor and dedication.

Hence, the DARPO-Cagayan employees cooperative is strengthening its partnership with agrarian reform beneficiaries’ organizations (ARBOs) by buying from ARBOs and selling rice to member-employees directly sourced from local ARBOs.

Through this initiative, the cooperative ensures a steady supply of affordable quality rice for its members (and DAR regional office 02 employees) while providing ARBOs with a reliable market for their produce. This mutually beneficial effort supports the Partnership Against Hunger and Poverty (PAHP) and the Sagip Saka Act (RA 11321), which encourages direct institutional procurement from farmers and cooperatives.

The initiative highlights how DAR’s own employees can actively contribute to rural development by supporting the livelihoods of agrarian reform beneficiaries and promoting inclusive local economic growth.