Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

3712
nousrmutno.__ 9712

Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO I

EXPLANATORY NOTE

The Philippine Constitution mandates that the State accord education the highest priority in
the government’s expenditure programs. As the country adheres to the Education for All (EFA)
Plan of Action of the global education community, the commitment to the program of compulsory
elementary education, the system of free secondary education and sustained delivery of non-school
based basic learning needs has to be guaranteed by the law.

However, in guaranteeing widest possible access to education, the Government need not be
the exclusive maintainer, caretaker, supervisor, quality controller and manager of all of these
educational schemes. Experiments and actual program implementation in a number of developing,
and developed countries have clearly shown that these functions may be effectively delegated to
qualified private partners and providers and other entities with better results in terms of wider
outreach and better or even superior quality impact. The efficient delivery of these education
services at least costs has also resulted to substantial savings on the part of the government which
enable them to devote additional resources to other priority programs, deserving geographic areas
and more needy groups and improve the quality and relevance of basic education.

The subject bill is submitted as an economic efficiency measure that will bring about fiscal
reforms, thus, revolutionize the delivery and management of basic education. This will ensure the
country’s commitment to Education for All (a global movement to promote the basic learning
needs and the Millennium Development Goal (MDG) for primary education.

This legislation is based on a viable private-public partnership in education and the evolving
paradigm of government assistance and/or subsidy anchored on market efficiency through the
concept and practice of “service purchasing.” The latter is exemplified and has been proven feasible
by the existing secondary education service contracting scheme. With this paradigm, the wide
range of basic education services that can be purchased by the State from qualified private
providers include literacy, early childhood care/education, and elementary and secondary education
and other non-school based basic learning needs. The government stands to benefit more from
better quality of services instead of having to spend bigger with higher overhead costs of
construction and maintenance of a big and expensive bureaucracy. Service purchasing shall be
applied in rationalizing the allocation for school-building program, staff recruitment and
development, educational management and supervision and monitoring and assessment at the local
levels and such other aspects of quality assurance in the delivery of basic education.



Without departing from the spirit of the existing legislat
schools, the measure would promote respectability and the
should henceforth be regarded as autonomous and self-reliant educational services providers for
their sustenance and survival and as capable and willing partners that perform public functions.
The viability of the operations of the private providers is also guaranteed with the utilization by the
government of their excess capacities.

n in assisting students of private
ignity of the private schools which

In view of the importance of this Bill, its earliest approval is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
‘Second Regular Session

3712

HOUSE BILL NO.

Introduced by Introduced by ATTY. MAGTANGGOL T. GUNIGUNDO 1

AN ACT.
STRENGTHENING THE EDUCATION SERVICE CONTRACTING SCHEME
FOR BASIC EDUCATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Title. ~ This Act shall be known as the “Basic Education Service Contracting,
Act”,

SECTION 2. Declaration of Policy. ~ It is a declared policy of the State, in conformity
with the mandate of the Constitution, to promote and make quality education accessible to all
Filipino citizens. ‘The State hereby recognizes that empowering the population with basic levels of
learning, skills, knowledge and values is essential for functioning effectively in society and for
continuing learning and development.

‘The State also hereby recognizes the complementary roles of public and private educational
institutions in the educational system and the invaluable contribution that the private institutions

have made and will make to education. The State also recogni

s that providing an efficiency
measure will carry out wider education outreach at the least cost and improvement of education and
its relevance. For these purposes, the State shall enhance partnership with all qualified providers,
provide mechanisms to improve quality in private education by maximizing the use of its existing

resources, recognizing in the process the government’s responsibility to provide equitable access to


early childhood education, formal basic education, and alternative learning system as having

priority over its other functions.

SECTION 3. Definition of terms. ~ For purposes of this Act, the terms and phrases used
shall mean or be understood as follows:

a, Alternative Learning System shall refer to a parallel learning system to provide a viable
alternative to the existing formal education. It compasses both the non-formal and informal sources
of knowledge and skills;

+b. Basie Education shall refer to both the elementary and secondary education intended to
meet basic learning needs, which lays the foundation on which subsequent learning can be based. It
encompasses early childhood, elementary and high schoo! education as well as alternative learning
system for out-of-school youth and adult learners and includes education for those with special
needs;

¢. Early Childhood Education shall refer to the two (2) year pre-clementary education, the
completion of which is attested by certificate issued by or permission of the Department of
Education and/or Local Government Unit;

d. Formal Education shall refer to the systematic and deliberate process of hierarchically
structured and sequential learning corresponding to the general concept of elementary and
secondary level of schooling. At the end of each level, the learner needs a certification in order to
enter or advance to the next level;

¢. Informal Education shall refer to a lifelong process of learning by which every person
acquires and accumulates knowledge, skills, attitudes and insights form daily experiences at home,
at work, at play and life itself;

J. Instructional Manager shall refer to the key learning group leader who is hired with a

service contract outlining their duties and responsibilities including the number of learning support

services to be rendered;


4g. Learner shall refer to any individual seeking basic literacy skills and functional life skills
or support services for the improvement of the people’s quality of life;

h. Learning Center shall refer to a physical space to house learning resources and facilities
of a learning program for out-of-school youth and adults. It is a venue for face-to-face learning
activities and other learning opportunities for community development and improvement of the
people’s quality of life;

i. Learning Facilitator shall refer to the key learning support person who is responsible for
supervising/ facilitating the learning process and activities of the learner;

J. Normative Financing shall refer to the formula in which resources are allocated to
schools strictly in proportion to their number of pupils, using a standard per capita sum;

k, Private Organization/Institution shall refer to any self-sustaining special interest group

set up by people or community acting outsi

e the scope of any official position, and independent
from the government in terms of funding and appointment of its official and staff. For the purpose
of this Act, private organization/institution shall include non-government organization, community
based organization, and private education service provider;

4. Private-Public Partnership shall refer to the link between the government and qualified
‘education service provider, wherein both parties entered into an agreement, for the delivery of basic

educational servic

.c. school building.
n. Underprivileged Student shall refer to a student whose gross income, if any, and that of
the combined annual gross income of his/her family do not exceed one hundred fifly thousand

pesos (150,000.00) or such amount declared as may be determined by the appropriate agency.

SECTION 4. Education Services. — For purposes of

is Act, the basic education services

that may be availed of by the government shall include but shall not be limited to the following.

areas regardless of basic education levels_and modality of delivery subject to the provisions of

rules and regulations laid down by the Basic Education Partnership Council (BEPC) hereinafter

referred to as the Council:


(a) Instructional services of private schools;
(b) Private management/supervision of certain public schools;
(©) Private-public partnership for school building;

(d) Educational assessment and monitoring; and

(c) Such other similar aspects of private-public partnership in education,
Provided, That the basic education services to be contracted shall be based on a set of
criteria which shall include, among others, the socioeconomic needs of each region, the academic
qualifications and the financial needs of the students and/or learners and the teachers and/or
learning facilitators and instructional managers, the geographic spread and size of student

population, and regional compliance with the certification standards.

SECTION 5. Planning of Education Services. ~ The planning of which services to be
prioritized and contracted at a given period particularly the school building and teacher recruitment
shall be based on regular school/learning center mapping that takes into account the availability of
private schools and potentially available program offerings of other providers in the locality.

‘The amount of basic education services to be contracted shall be allocated and distributed
among the seventeen (17) regions subject to the provisions of rules and regulations laid down by
the Basic Education Partnership Council (BEPC) in consideration to the total population, the
incidence of poverty, functional literacy status, and drop-out rates in the region.

The allocation and distribution of the amount of assistance among the private basic
education service providers shall be under the discretion of the DepEd Regional Offices except in

case provided in the last sentence of paragraph (a) of Section 7.

SECTION 6. Education Service Providers. ~ For purposes of this Act, the following
private or non-governmental service providers may be invited to participate in the program:

(a) Established private schools;


(b) Non-governmental or civic organizations which have substantial involvement in the
field of education;

(©) People and/or community organizations; and

(d) Other entities such as private firms which are committed to assist the government in
providing basic education for all,

In order to attract the most qual

ied providers, the Department of Education shall endeavor

to adequately publicize at the national and subnational levels the availability and operation of the

program, and the list and the performance track record of participating private and non-government

basic education service providers.

SECTION 7. Strengthening of the Existing Education Service Contracting (ESC) Scheme.

(a) DepEd shall enter into contracts with private schools and other qualified basic education
service providers in communities where there are no public and/or other private and non-
government basic education schools, as well as pre-schools, in which case DepEd shall pay the
private basic education provider. In areas where there are no private formal schools and non-formal
education centers, the contract with qualified basic education service provider shall be guaranteed;

(b) The amount to be given under every contract entered into by the government for the
purchase of priority basic education services shall be equivalent to that determined as the per
student/learner cost and other elements of normative financing in public elementary schools, high
schools, alternative learning system as well as pre-schools, as the case maybe;

(c) Every contract to purchase priority services shall be guaranteed and maintained for one
(1) year subject to renewal upon documented attestation of good performance or educational
impacts of the contracted services. In which case, the Basic Education Partnership Council (BEPC)
shall regularly oversee and evaluate the performance of the private basic education service
provider.

‘The Department of Education (DepEd) shall, based on agreed quality performance and

outcome criteria, determine the continuity of the contract in consultation with the Basic Education


Partnership Council (BEPC) and direct stakeholders anytime within the stipulated duration

mentioned above;

SECTION 8. Program Administration/Rules and Regulations. ~ (a) The Basic Education
Partnership Council (BEPC), hereinafter known as the Council, shall be responsible for policy
guidance, monitoring and evaluation of the implementing rules and regulations while the
Department of Education (DepEd) shall be responsible for the day-to-day administration and
implementation program. Likewise, it may engage the services and support of any qualified
government or private entity for its implementation.

(b) The Council shall be responsible for the over-all determination and promulgation of the
implementing rules and regulations, and appropriate guidelines on the identification of the priority

education services, contracting of services, the selection of qualified service providers, the

evaluation of the contracted services, and the renewal of contracts

(©) The Department of Education shall determine the priority education services to be
contracted in consultation with the direct stakeholders. The Department shall also endeavor to
adequately publicize at the national and subnational levels the availability and operation of the
program.

(d) DepEd shall determine the operational feasibility and financial viability and profitability
of the priority education services that will be contracted from qualified private service providers,
which shall form part of the annual budgetary and expenditure programs. Thereafter, DepEd shall
undertake regular monitoring of the academic outcomes and financial impact of the contracted
services to further rationalize resource allocation and academic programs.

(©) The Council shall be headed by the Secretary of Education as chairperson; with
representatives from the National Economic and Development Authority, the Department of
Budget and Management, the Department of Finance, and one each coming from duly organized
nationwide associations of education service providers, teachers, students, parents, and school

administrators concerned with early childhood education, formal basic education, and alternative


learning systems as members, The total number of the members shall in no case be not more than
eleven (11).

(f) There shall be a Basic Education Partnership Committee (BEPCom), hereinafter known

as the Committee, to be designated by the Council which shall oversee the administration and
implementation of the program. It shall be responsible on the evaluation of the contracted services
and the performance of the contracted private service provider. Thereafter, the Committee shall
submit report to the Basic Education Partnership Council (BEPC) and recommendation to the
Department of Education to determine the continuity of the contract based on the review of
programs/service performance anytime within the stipulated duration mentioned in section 7 (c).

(g) The Council shall meet at least once every quarter of the year and as the need arises, to
assess the over-all effectiveness and efficiency of the program, undertake a continuing and
progressive policy review and to ensure that the program continue to provide quality education.

(h) There shall be created a Basic Education Partnership Coun:

at the regional level to

Councils shall also oversee the implementation and execution of the poli

down by the National BEPC in their respective regions.

(i) The _local_government_unit their respective Local Basic Education Boards

formerly School Boards) may take their

ticipating in the

ram in their own

ities with their local resources and shall follow the standards of quality assurance and all

licies in establishing partnership with the accredited service providers in the region.

SECTION 9. Appropriations. ~ The Department of Budget and Management shall allocate
budgetary resources as part of the multi-year expenditure program of the government.
‘The Department of Budget and Management shall cause the savings to be realized from the

purchase of the priority services to be streamed back to budgetary entitlement of the Department of


Education (DepEd), which shall be expressly utilized for purposes directly related to improving

quality and greater access of basic education.

SECTION 10. Penalties. — In case of violations of the provisions of this Act or the rules

and regulations promulgated pursuant thereto by an insti

ion and DepEd, upon the
recommendation of the Council, may bar the institution from the participating in or benefiting from
the programs of this Act, and from other programs of the Department, without prejudice to
administrative and criminal charges as may be filed against the private education service provider

and/or its responsible officers under existing laws.

SECTION 1. Repealing Clause. — All laws and decrees, particularly Republic Act No.
8545 and Presidential Decree Nos. 932 and 1371, and such letter of instructions, rules and
regulations or parts thereof, which are inconsistent with this Act, are hereby repealed or modified

accordingly.

SECTION 12, Separability Clause. ~ If any provision of this Act is declared
unconstitutional, the same shall not effect the validity and effectivity of the other provisions not

affected thereby.

SECTION 13. Effectivity Clause. - This Act shall take effect immediately upon its
publication in the official gazette and/or in a newspaper of general circulation: Provided, That
implementation of new programs of assistance provided in this Act shall be effective in the school
year of the succeeding fiscal year within which the appropriations necessary to implement the new

programs shall have been approved into law.

‘Approved.