RA 9184

GOODS

Phases of Property and Supply Management

• Acquisition
• Utilization
• Disposition

PHASES OF PROPERTY AND SUPPLY MANAGEMENT

• Acquisition
• Utilization
• Disposition

Note:

3E’s : Economy, Efficiency,

Effectiveness

​

4

Modes of Acquisition

• Purchase/Procurement ( RA 9184 )
• Transfer
• Donation
• Confiscation, Seizure and Foreclosure
• Production/Manufacture : natural and industrial fruits

​

PHASES OF PROPERTY AND SUPPLY MANAGEMENT

• ACQUISITION/Procurement

Governed by RA 9184 & its

IRR.

Coverage Of RA 9184 : From

Procurement Planning to Payment of

Deliverables. Responsibilities of

each official involved – clear and

legally identifiable.

​

Government Procurement Reform Act (Rep. Act 9184)

​

​

“Not just doing the right things, but doing it right”

​

The Government Procurement Reform Act

Republic Act No. 9184

“An Act providing for the Modernization, Regulation and Standardization of the Procurement Activities of the Government and for other Purposes”

7

ANNEX “H”.C : CONSOLIDATED GUIDELINES FOR THE ALTERNATIVE METHODS OF PROCUREMENT

“ The Procuring Entity shall ensure that the

objectives and purpose of the contract

do not constitute an unnecessary, excessive,

extravagant, or unconscionable expenditure.”

Sec. 41 Reservation Clause

HOPE reserves the right to:

1. Reject Any and All Bids
2. Declare Failure of Bidding
3. Not Award Contract

​

SITUATIONS:

1. Prima Facie Evidence of COLLUSION
2. BAC failed in following the Prescribed Bidding Procedures
3. Project no longer necessary as determined by the HOPE or if the source of funds for the project has been withheld through no fault of the Procuring Entity.

2016 Revised IRR

• “The 2016 Revised IRR was approved by the Government Procurement Policy Board (GPPB) through its Resolution 13-2016, dated 9 August 2016, and published in the official Gazette on 29 August 2016. It took effect sixty (60) days after its publication or on 28 October 2016.”

PROCUREMENT ORGANIZATION

HOPE

TWG

BIDS AND AWARDS

COMMITTEE

(BAC)

BAC Secretariat

Chairperson

Vice-Chairperson

BAC Members

(including

provisional member)

OBSERVERS

1 COA

1 NGO

1 Private Sector

. . . . . .

END-USERS/PMO

12

DELEGATION OF AUTHORITY (Annex “H”.j)

​

• The conduct of the following may be delegated to End-user unit or any other appropriate bureau, committee, or support unit duly authorized by the BAC through a Resolution approved by the HOPE:

​

• Shopping
• Negotiated Procurement (Emergency Cases)
• Negotiated Procurement (Small Value)
• Negotiated Procurement (Lease of Real Property and/or Venue)

​

Professionalization Measures (2016 Revised IRR,�Sec 16)�

• The HOPE shall ensure that the BAC, its Secretariat and TWG members, including other relevant procurement personnel are sent to attend procurement training or capacity development program. Within six (6) months upon designation, the BAC, its Secretariat and TWG members should have satisfactorily completed such training or program conducted.
• The HOPE is encouraged to attend similar procurement training and capacity development activities.

PROCUREMENT PLANNING �Rule II

Capacity Development Division

PLANNING

​

- refers to predetermined course/s of action to achieve a desired end/goal.

​

​

​

​

​

​

​

15

• Murphy’s Law

​

“Whatever will go wrong, will go wrong.”

Planning

PROCUREMENT PLANNING

PROCUREMENT PLANNING

​

• Process of identifying which project needs can be best met by procuring products and services outside the project organization and should be accomplished during the project planning effort

​

​

​

​

​

SECTION 7 : PROCUREMENT PLANNING AND BUDGETING LINKAGE

• Includes deciding on:
• Whether to procure?
• What to procure?
• How to procure?
• Where to procure?
• How much to procure?
• When to procure?

PROCUREMENT PLANNING

PROCUREMENT PLANNING

• Proper Planning ensures that the Procuring Entity (PE) should be able to answer the following questions:

1. Whether to procure? Whether procurement will meet

the particular need of the PE? or a status quo to be

maintained?

2. What to procure? What kind or service will the PE

need to procure? In terms of both quantity and quality.

3. How will the PE procure the same? i.e., whether by

competitive bidding or through any of the alternative

methods?

PROCUREMENT PLANNING

• Continuation:

4. Where to procure? From where will the item

or service be sourced? Local market and/or

foreign market?

5. How much to procure? How much will the

PE need to procure the same? Is the

Approved Budget enough for the purpose?

6. When to procure? When will the PE procure

the same? When will it be needed?

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6. When to procure? When will the PE procure

the same? When will it be needed?

• The following competencies are required:
• knowledge of the items to be procured
• accounting, audit and budget rules and regulations
• warranty and contract laws, and
• scheduling.

​

PROCUREMENT PLANNING

1.0 All procurement should be within the approved budget

of the procuring entity.

​

2.0 All procurement should be meticulously and judiciously

planned by the Procuring Entity.

​

​

PROCUREMENT PLANNING & BUDGETING GUIDELINES

3.0 Approved Budget or Approved Budget for the Contract

- refers to the budget for the contract or approved

budget of the procuring entity duly approved by the

Local Sanggunian with the corresponding enactment

of an Appropriation Ordinance in Annual or

Supplemental Budget, the Corporate Budget approved

by the Governing Board or the GAA in the NGAS.

​

4.0 No government procurement shall be undertaken if unless it is in accordance with an Annual Procurement

Plan or APP.

PROCUREMENT PLANNING & BUDGETING GUIDELINES

… it is a consolidation of all Procurement Project Management Plans for a procuring entity that is scheduled for procurement for a calendar year. It shall also include provisions for foreseeable emergencies based on historical data/records. Implementation of projects not included in the APP shall not be allowed.

What is Annual Procurement Plan (APP)?

• Consistent with the approved yearly budget of the procuring entity
• Approved by the head of the procuring entity or a second-ranking official designated by him.

​

Requirements for the ANNUAL PROCUREMENT PLAN (APP)

• Those projects considered crucial to the efficient

discharge of governmental functions;

• if it is required for the day-to-day operations;

• it is in pursuit of the principal mandate of the

procuring entity.

What shall be included in the APP?

… it is a procurement plan for goods, infrastructure projects and consulting services that shall specify the type of contract to be employed, extent/size of contract, scope/packages, the procurement methods to be adapted, (indicating if the procurement task is to be “outsourced”), time schedule for each procurement activity and the estimated Budget for each procurement.

What is Procurement Project Management Plan (PPMP) ?

• The preparation and updating of the PPMPs shall be the

responsibility of the respective Project Management Offices

(PMOs) or end-user units of the procuring entities.

​

• The consolidation of these PPMPs into into an APP shall be

lodged with the BAC Secretariat of that procuring entity.

​

• These units may avail of the services of technical experts to

review the individual APPs.

Who Prepares the PPMP and the APP?

​

• Based on the Plan, the Budget is prepared.

​

• The Budget includes the requirements for commonly-used supplies/materials; equipment; infra projects/civil works.

​

Budget PREPARATION

PROCEDURE

Budget EXECUTION

PROCEDURE

​

• The end-users prepare the PPMP.

​

• The BAC Secretariat consolidates the PPMPs into an APP.
• The HOPE approves the APP.
• Contract implementation/delivery by the winning bidder.
• Acceptance of goods/infra project by the Procuring

Entity.

​

​

​

IRR Highlights

• Procurement Planning (Sec. 7)

- End-user units shall prepare their PPMP which

shall be submitted to the Budget Office

- Budget Office to evaluate the PPMPs and if

warranted include in the budget proposal

- PPMPs included in the budget proposal shall

be forwarded to:

1) BAC Secretariat – For consolidation into

an indicative APP

2) BAC – for final recommendation of the

appropriate procurement modality

​

​

​

IRR Highlights

• Procurement Planning (Sec. 7), cont.

- Upon approval of the GAA/Corporate budget/

Ordinance, end-user units shall revise/adjust

their PPMPs

- The revised PPMPs shall be submitted to the

BAC, via its Secretariat, for final recommen-

dation of the methods of procurement

- The indicative APP shall then be revised and

to be approved by the HOPE

​

​

ANNUAL PROCUREMENT PLAN PREPARATION (SECTION 7)

END-USER

PREPARES PPMP

HOPE

END-USER

SUBMITS

BUDGET OFFICE

(inclusion in the

Budget proposal)

BAC - SEC

CONSLIDATE

PPMPs TO

INDICATIVE APP

BAC

RECOMMEND

PROCUREMENT

MODALITY.

SUBMIT TO HOPE

LOCAL

SANGGUNIANG BAYAN/ PANGLUNGSOD/ PANLALAWIGAN FOR BUDGET APPROVAL

APPROVED PROPOSE AGENCY BUDGET (APP, PS, MOOE, ETC.)

SUBMITS

GOCC/GFI

GOVERNING BOARD/ BOARD OF DIRECTORS FOR BUDGET APPROVAL

NATIONAL

CENTRAL OFFICES FOR INCLUSION IN THE PROPOSED NATIONAL BUDGET

PREPARES PPMP BASED ON APPROVED BUDGET – APPROPRIATION ORDINANCE / CORPORATE BUDGET / GAA

SUBMITS

BUDGET OFFICE

(inclusion in the FINAL budget as approved)

BAC - SEC

Consolidates Final PPMPs to Final APP

HOPE APPROVES

APPROPRIATION ORDINANCE / CORPORATE BUDGET / GAA

Sec. 41 Reservation Clause

HOPE reserves the right to:

1. Reject Any and All Bids
2. Declare Failure of Bidding
3. Not Award Contract

​

SITUATIONS:

1. Prima Facie Evidence of COLLUSION
2. BAC failed in following the Prescribed Bidding Procedures
3. Project no longer necessary as determined by the HOPE or if the source of funds for the project has been withheld through no fault of the Procuring Entity.

WHAT ARE THE FORMS...

36

PPMP

Section 7.6, IRR of R.A. 9184

​

• To facilitate the immediate implementation of procurement of Goods, Infrastructure Projects or Consulting Services, even pending approval of the GAA, corporate budget or appropriations ordinance, Procuring Entity may undertake the procurement activities short of award.

​

​

Legal Basis

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

Section 7.6, IRR of R.A. 9184

• NGAs, SUCs, Constitutional Commissions or Offices are encouraged to start their procurement activities immediately after the National Expenditure Program (NEP) has been submitted by the President to Congress, provided that the HOPE has approved the corresponding APP.

​

• This will facilitate the awarding of procurement contracts after the enactment of the GAA, enabling the timely implementation and completion of programs and projects.

​

Legal Basis

ANNUAL PROCUREMENT PLAN PREPARATION (SECTION 7)

END-USER

PREPARES PPMP

HOPE

END-USER

SUBMITS

BUDGET OFFICE

(inclusion in the

Budget proposal)

BAC - SEC

CONSLIDATE

PPMPs TO

INDICATIVE APP

BAC

RECOMMEND

PROCUREMENT

MODALITY.

SUBMIT TO HOPE

LOCAL

SANGGUNIANG BAYAN/ PANGLUNGSOD/ PANLALAWIGAN FOR BUDGET APPROVAL

APPROVED PROPOSE AGENCY BUDGET (APP, PS, MOOE, ETC.)

SUBMITS

GOCC/GFI

GOVERNING BOARD/ BOARD OF DIRECTORS FOR BUDGET APPROVAL

NATIONAL

CENTRAL OFFICES FOR INCLUSION IN THE PROPOSED NATIONAL BUDGET

PREPARES PPMP BASED ON APPROVED BUDGET – APPROPRIATION ORDINANCE / CORPORATE BUDGET / GAA

SUBMITS

BUDGET OFFICE

(inclusion in the FINAL budget as approved)

BAC - SEC

Consolidates Final PPMPs to Final APP

HOPE APPROVES

APPROPRIATION ORDINANCE / CORPORATE BUDGET / GAA

41

PPMP

Procurement Timelines for Goods

​

​

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

44

PPMP

Procurement Timelines for Goods

​

​

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

47

PPMP

48

ANNUAL PROCUREMENT PLAN (APP)

Per GPPB Resolution No. 20-2015

1

2

3

4

5

6

7

• Name of Procurement Project;
• Procurement Management Office (PMO)/end-user/implementing unit;
• Method of Procurement;

​

• Schedule of identified procurement activities;
• Source of funds;
• Indicative ABC;
• Other relevant descriptions of the project, if applicable.

​

​

Annual Procurement Plan

(Procurement Form No. 2)

50

Implementing Rules

& Regulations of

REPUBLIC ACT NO. 9184

​

Rules for the Procurement of Goods

DEFINITION (GOODS)

Items, supplies, materials & general support services, except consulting services & infra projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking ( Sec. 5.r)

Includes, but is not limited to the following:

1. equipment,
2. furniture,
3. stationery,
4. materials for construction,
5. personal property of any kind,
6. non-personal or contractual services,
1. repair & maintenance of equipment and furniture
2. trucking, hauling, and courier
3. janitorial, security and manpower

​

DEFINITION (GOODS)

Related or analogous services shall include, but not limited to the following ( Sec. 5.r ):

1. lease or purchase of office space
2. media advertisements
3. health maintenance services
4. other services essential to the operation of the procuring entity
1. rental of venues and facilities
2. catering services
3. lease of computers, copiers and other information technology equipment

​

​

Mixed Procurements (Sec, 17.2)

• In mixed procurements, the Procuring Entity shall specify in the Bidding Documents the requirements, criteria and other conditions of the bidding procedures and of the ensuing contract as applicable to each component of the project. In the preparation of Bidding Documents, the Procuring Entity shall ensure compliance with existing laws, rules and regulations, especially those concerning licenses and permits required for the project.

Preparing for the Procurement of Goods and Services

Factors to consider in Determining ABC:

• Cost or market price of the product or service
• Incidental expenses (freight, insurance, taxes, installation costs, training costs if necessary, cost of inspection)
• Inflationary factor
• Quantities
• Supply of spare parts and/or maintenance services (if part of the contract package)

Competitive Bidding

• Method of procurement that is open to any interested and qualified party

​

• Preferred over other methods of procurement

​

• Procuring Entity should see to it that its procurement program allows enough time to conduct a public bidding

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

​

​

NOTE:

Decisions of the BAC amending any provision

of the Bidding Documents shall be issued in

writing through a Supplemental/Bid Bulletin at

least seven (7) calendar days before the

deadline for the submission and receipt of bids

( Sec. 22.4 ).

​

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

TECHNICAL �Information Documents/1^st Envelope�(Sec. 25.2)

• PHILGEPS Certificate of Registration and membership
• Statement of all On going Government and Private Contracts
• Statement of Single Largest Contract Completed (SLCC)
• NFCC Computation or committed Line of Credit
• JVA or the Duly Notarized Statement in accordance with Section 23.1(b) of this IRR, if applicable
• Bid Security in the prescribed form, amount and validity period
• Technical Specifications, production/delivery schedule, manpower requirements, and/or after sales service/parts, if applicable
• Omnibus Sworn Statement in accordance with Section 25.3 of this IRR
• For foreign bidders claiming eligibility by reason of their country’s extension of reciprocal rights to Filipinos, a certification from the relevant government office of their country stating that Filipinos are allowed to participate in their government procurement activities for the same item or product.

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

Disqualified Bidders

​

Notes:

1) Disqualified Bidder/s may file

Motion for Reconsideration/s once.

2) BAC resolves MRs of

disqualified bidder/s. This is

known as another stage in the

bidding process known as BAC

Special Meeting. Do not

forget to invite Observers.

Other BAC Responsibilities

• To enhance transparency, BAC shall invite Observers

during Eligibility Screening, Shortlisting, Pre-bid

Conference, Preliminary Examination of Bids, Bid

Evaluation and Post-qualification. Observers shall be

invited at least five (5) calendar days (cd) before the

date of the procurement stage/activity. In the event that

a procurement activity has to be postponed, the

observers shall be notified immediately of the change

in schedule ( Sec. 13.1 and Sec. 13.3)

​

Non Govt. Org./ Civil Society Org.

​

​

​

GPPB Res. 17-2012

Mandatory grant of Transportation

Allowance to NGO/CSO observers

participating in Government Procurement

Activities.

Procedural Steps for Procurement �of Goods/Services – Public Bidding ( 2016 Revised IRR)

Pre-Procurement

Conf.

Advertise/Post ITB

Call/Hold Pre-Bid

Conference

Open Technical (with

eligibility documents)

Envelope

Open

Financial

Envelope

Receive the

Two (2)

Envelopes

Submission of

Additional Req.

Post-qualify

LCB

Issue

Notice to

Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

Within 45 c.d.

.Posting – 7 c.d.

within 7 c.d.

​

Prepare &

Sign Contract

​

Within 10 c.d.

Approve Resolution

/ Issue Notice

of Award - LCRB

Issue Bidding

Documents

Evaluate &

Rank Bid/s

Within 5 c.d.

Within 7c.d.

Within 15 c.d.

PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICES

Preparing for the Procurement of Goods and Services

​

• Procurement Planning
• Conduct of the Pre- Procurement Conference
• Preparing the Bidding Documents

TOPIC OUTLINE

Preparing for the Procurement of Goods and Services

Factors to consider in planning for the procurement of Goods:

• Nature of the Goods to be procured
• Common-use supplies
• Inventory items
• Non-common use supplies
• Services
• Availability of Goods/Service in the Market
• Obsolescence, operation and maintenance of equipment/non-consumable Goods

Preparing for the Procurement of Goods and Services

Technical Specifications – refers to the physical description of the Goods/ Services, as well as the Procuring Entity’s requirements in terms of:

• Functional Description
• Performance Requirements

3. Design

NOTE: Reference to Brand Names not allowed

except for items/parts that are compatible

with the existing fleet or equipment (Sec. 18)

Preparing for the Procurement of Goods and Services

Bidding Documents should define:

​

• Objectives, scope and expected outputs/results of contract
• Technical specifications of Goods to be procured
• Expected contract duration, est. quantity for goods, delivery schedule and time frame
• Obligations of winning bidder
• Minimum eligibility requirements of bidders

Preparing for the Procurement of Goods and Services

​

Pre-Procurement Conference ( Sec. 20)

• Undertaken prior to Advertising

of Invitation to Bid

• To be attended by: BAC, Secretariat, consultants and relevant officials
• General purpose: Determine readiness of procurement and criteria
• May not required for Goods costing P2M & below

​

Preparing for the Procurement of Goods and Services

Bidding Documents :

- are prepared by the BAC Secretariat/TWG,

with the assistance of consultants if any

and the end-user unit/PMO.

- must be prepared in time for presentation

at the Pre-procurement Conference.

​

Preparing for the Procurement of Goods and Services�

The following must participate in the preparation of the bidding documents:

​

• Bids and Awards Committee (BAC)
• Technical Working Group (TWG)
• End-user unit/Project Mgmt. Office (PMO)
• Consultants, if any
• BAC Secretariat / Procurement Unit

Preparing for the Procurement of Goods and Services

The bidding documents must contain the following (Sec. 17.1)

​

• ABC and source of funds;
• Date, time and place of pre-bid conference, submission of bids and opening of bids; eligibility requirements;
• Eligibility requirements;
• Instructions To Bidders (ITB), including criteria for eligibility, bid evaluation and post- qualification;
• Scope of work, for services;
• Technical specifications;
• Form of bid, price form, and list of goods or bill of quantities;
• Delivery time or completion schedule;
• Form, amount and validity period of bid security;
• Form and amount of performance security and warranty; and
• Form of contract, General Conditions of the Contract (GCC) and Special Conditions of the Contract (SCC)

​

​

Preparing for the Procurement of Goods and Services

Contents of PBD for Goods

Section I. Invitation to Bid (ITB)

Section II. Instructions to Bidders

Section III. Bid Data Sheet

Section IV. General Conditions of Contract

Section V. Special Conditions of Contract

Section VI. Schedule of Requirements

Section VII. Technical Specifications

Section VIII. Sample Forms

Section IX. Foreign Assisted Projects

GPPB Res. # 04 – 2012 Dtd. Feb. 24, 2012�Sale of Bidding Documents:�Standard Rates:

Procedural Steps for Procurement �of Goods/Services

• Step 1 – Advertise and Post an Invitation to Bid (ITB)

Advertising of ITB ( GPPB Cir. 08-2018)

• Starting 29 Oct. 2018, PE are reminded advertising the bid opportunities under 21.2.1 (c) of 2016 Revised IRR of RA 9184 is hereby removed. PE shall continue to post its bid opportunities in the following:

​

1. PHILGEPS Website;

2. Procuring Entity’s Website;

3. Website of the government/foreign or international

financing institution, if applicable; and

4. Conspicuous place reserved for the purpose.

​

Advertising Of ITB (Sec 21.2)

• Two (2) years after the effectivity of this IRR advertisement in a newspaper of general nationwide circulation shall no longer be required. However, a Procuring Entity that cannot post its opportunities in the PHILGEPS for justifiable reasons shall continue to publish its advertisements in a newspaper of general nationwide circulation.

Procedural Steps for Procurement �of Goods/Services

• Step 2 – Issue the Bidding Documents

Procedural Steps for Procurement �of Goods/Services

Issue the Bidding Documents

​

The bidding documents (BDs) must be made available to the prospective bidders (PBs) from the time the ITB is first advertised/posted until immediately before the deadline for submission of bids. (Sec.17.3)

Procuring Entity shall post the Bidding Documents at its website and the PHILGEPS from the time the ITB is advertised (Sec. 17.4)

​

Procedural Steps for Procurement �of Goods/Services

• Step 3 – Call a Pre-Bid Conference and, if necessary, Issue Supplemental/Bid Bulletins

Pre-Bid Conference�(Sec. 22)

• Initial forum where the Procuring Entity’s representatives and the prospective bidders discuss the different aspects of the procurement at hand
• At least 1 required for bids with ABC of P1M or more
• Discretionary for bids costing less than P1M
• Held at least 12 CDs before deadline for Submission of Bids

Pre-Bid Conference�(Sec. 22)

• Sec. 22.4 :

The minutes of the pre-bid conference

shall be recorded and prepared not later

than five (5) calendar days after the pre

bid conference, and shall be made

available to prospective bidders not later

than five (5) days upon written request.

Pre-Bid Conference�(GPPB Res. 02-2018)

• Sec 4.2.5 :

The Bids and Awards Committee (BAC)

shall post the minutes of the Pre-bid

conference in the Procuring Entity’s

Website.

Pre-bid Conference

85

( 7 c.d. max. pd.)

1 2 3 4 5 6 7

45 CDs from last day of ITB

Date of Bid Opening

Sec. 25.5.a

Supplemental/Bid Bulletins (Sec. 22.5)

• Issued by BAC to answer requests for clarification or interpretation, and upon BAC’s initiative to clarify or modify any provision of Bidding Docs. (at least 7 c.d. before deadline for bids)

​

• Posted in G-EPS and agency’s website, if any

​

• Bidders who have submitted bids before issuance of Supplemental/Bid Bulletin have to be informed in writing and allowed to modify or withdraw their respective bids

Supplemental/Bid Bulletins (Sec. 22.5)

• Requests for clarification(s) on any part of the Bidding Documents (BD) or for an interpretation must be made in writing and submitted to the BAC at least ten (10) cd before deadline for the submission of bids. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin, duly signed by the BAC Chairperson, to be made available to all those who have properly secured the BD, at least seven (7) cd before the deadline for the submission and receipt of bids ( Sec. 22.5.1)

Procedural Steps for Procurement �of Goods/Services

• Step 4 – Receive and Open the Eligibility and Bid Envelopes

SUBMISSION AND RECEIPT �OF BIDS

• Two-Envelope System
• 1^st Envelope – Technical Component, including the eligibility requirements under Section 23.1
• 2^nd Envelope – Financial Component

​

• Bidders shall submit their bids through their duly authorized representative using the forms specified in the Bidding Documents in 2 separate sealed bid envelopes, and which shall be submitted simultaneously.

​

​

​

​

​

Eligibility Criteria

• The following are eligible to bid: (Sec. 23.4.1.1)
1. Duly licensed Filipino citizens/sole proprietors
2. Partnerships organized under Phil. laws with at least 60% Filipino ownership
3. Corporations organized under Phil. laws with at least 60% Filipino Outstanding Capital Stock
4. Joint Ventures with at least 60% Filipino ownership (subject to principle of “collective compliance)
5. Cooperatives duly registered with the Cooperatives Development Authority

Eligibility Check

• On Entity – Nationality Requirement for locally-funded projects
• Goods: 60/40 Filipino Ownership (R.A. 5183)
• Civil Works: 75/25 Filipino Ownership (LOI 630)
• On Goods – May be obtained from domestic and foreign source, but note 15% Domestic Preference (Flag Law) for locally-funded projects (Sec. 43)
• Preference for Domestic Bidder (75/25 nationality)
• Preference for Domestic Bid (goods substantially sourced from Philippines)

Eligibility Criteria

• Experience Requirement (Sec. 23.4.1.3):

The prospective bidder must have completed,

within the specified period in the ITB, a Single

Largest Contract Completed (SLCC) that is

similar to the contract to be bid, and whose value,

adjusted to current prices using Philippine

Statistics Authority (PSA) consumer price indices,

must be at least 50% of the ABC. If Expendable

Supplies, said SLCC must be at least 25% of the

ABC.

Eligibility Criteria

• Experience Requirement (Sec. 23.4.1.3)

Ex.: Proc. of IT resources – ABC = P4M

Single Largest Contract Completed

(SLCC) = 50% ABC = P2M

​

Within the Period : Say 2-year Period

2011 2017 2-yr period 2019 (Present)

​

P10M w/in the period

​

​

​

​

​

​

Eligibility Criteria

• Experience Requirement (Sec. 23.4.1.3)

PSA consumer price indices – used as the

adjustment factor to update the SLCC

w/in the period to current/present date.

​

2017 2-yr period 2019 (Present)

PSA = 2 PSA = 4

4/2 = 2

​

P1M x 2 P2M✔

PSA = 4 PSA = 2

2/4 = 0.5

P2M x0.5 P1M

​

​

​

​

​

ELIGIBILITY CRITERIA

• Experience Requirement (Sec. 23.4.1.3)

​

• Single Largest Contract Completed (SLCC)

​

Eligibility Criteria

• Financial Requirement ( Sec.23.4.1.3)

​

• NFCC must be at least equal to the ABC NFCC = [(Current Assets – Current Liabilities) (15)] – value of all Outstanding or uncompleted portions of the projects
• Value of the local bidder’s current assets and liabilities (CAL) shall be based on the latest Audited Financial Statements (AFS) submitted to BIR.
• For Foreign Bidder’s NFCC, the value “CAL” shall be based on the AFS prepared according to International Financial Reporting Standards.

​

​

​

Eligibility Criteria

• Financial Requirement ( Sec.23.4.1.3)

​

• If the Prospective Bidder submits a Committed Line of Credit, it must be equal to Ten Percent (10%) of the ABC to be bid. Provided, that if the same is issued by a foreign Universal or Commercial Bank, it shall be confirmed or authenticated by a local Universal or Commercial Bank.

​

​

​

Eligibility Requirements (Sec. 23)

• Eligibility Check based on the following documents:

1. Legal Documents

2. Technical Documents

3. Financial Documents

Opening of Bid Envelopes

PREL. EXAMINATION OF TECHNICAL PROPOSAL (Sec. 30.1)

• Opening the Technical Envelopes which contain the Technical Proposals to ascertain compliance with the submission of requirements
• A non-discretionary “pass/fail” criteria shall be used ( a check list of required documents shall be utilized)

​

Opening of Bid Envelopes

PREL. EXAMINATION OF TECHNICAL PROPOSAL (Sec. 30.1)

• Opening the Technical Envelopes which contain the Technical Proposals to ascertain compliance with the submission of requirements
• A non-discretionary “pass/fail” criteria shall be used ( a check list of required documents shall be utilized)
• “Failed” bidder has 3 c.d. to file request for reconsideration. BAC has 7 c.d. to decide

​

​

​

TECHNICAL �Information Documents/1^st Envelope�(Sec. 25.2)

• PHILGEPS Certificate of Registration and membership
• Statement of all On going Government and Private Contracts
• Statement of Single Largest Contract Completed (SLCC)
• NFCC Computation or committed Line of Credit
• JVA or the Duly Notarized Statement in accordance with Section 23.1(b) of this IRR, if applicable
• Bid Security in the prescribed form, amount and validity period
• Technical Specifications, production/delivery schedule, manpower requirements, and/or after sales service/parts, if applicable
• Omnibus Sworn Statement in accordance with Section 25.3 of this IRR
• For foreign bidders claiming eligibility by reason of their country’s extension of reciprocal rights to Filipinos, a certification from the relevant government office of their country stating that Filipinos are allowed to participate in their government procurement activities for the same item or product.

UPDATE

• GPPB Res. No. 26-2017 dated 31 July 2017 :

Approving the issuance of a Circular on the deferment of the Implementation of the Mandatory Submission of PHILGEPS Certificate of Registration and Membership in Competitive Bidding

​

GPPB Cir. No. 07- 2017 dated 31 July 2017 :

Deferment of the Implementation of the Mandatory Submission of

PHILGEPS Certificate of Registration and Membership

Sec. 4.1.1 For all procurement projects advertised and/or posted after the effectivity of this Circular, bidders may still submit their Class “A” Eligibility Documents required to be uploaded and maintained current and updated in the PHILGEPS pursuant to Sec. 8.5.2 of the same IRR,… In case the Bidder opted to submit their Class “A” Documents, the Certificate of the PHILGEPS Registration (Platinum Membership) shall remain as a post-qualification requirement to be submitted in accordance with Sec. 34.2 of the 2016 Revised IRR of RA 9184.

ELIGIBILITY REQUIREMENTS FOR BIDDERS, Class “A” Documents, (Sec 23.1)

​

LEGAL DOCUMENTS

• DTI/SEC Registration/CDA for cooperatives
• Mayor’s Permit/equivalent document for Exclusive Economic Zones
• Tax clearance per EO 398, series of 2005 as finally reviewed by the BIR

TECHNICAL DOCUMENTS

• Statement of all ongoing government and private contracts, whether similar in nature and complexity to the contract to bid; and
• Statement identifying the bidder’s single largest completed contract to be bid, except under conditions provided for in Sec. 23.4.1.3 of the IRR, within the relevant period as provided in the bidding documents.

FINANCIAL Documents :

• AFS with total & current assets and liabilities, stamped “received” by the BIR; and
• NFCC at least = ABC or committed Line of Credit

​

​

​

​

​

​

​

​

​

​

​

​

Receive and Open the Technical and Financial Envelopes

• BID SECURITY (Sec. 27) :

Sec. 27.2 “ The bidder shall submit a Bid Securing

Declaration, or any form of Bid Security, in an

amount not less than the required percentage of the

ABC in accordance with the following schedule:

BID SECURITY (Sec. 27.2)

�BID SECURING DECLARATION

DEFINITION (SEC 27.5)

​

A Bid Securing Declaration is an undertaking which states, among

others, that the bidder shall enter into contract with the procuring

entity and furnish the required performance security within ten (10)

calendar days, or less, as indicated in the Bidding Documents from

receipt of the Notice of Award, and committing to pay the

corresponding fine and be suspended for a period of time from

being qualified to participate in any government activity in the

event it violates any of the conditions stated therein as required in

guidelines issued by the GPPB

​

​

​

REPUBLIC OF THE PHILIPPINES )

CITY OF _______________________ ) S.S.

x-------------------------------------------------------x

​

BID-SECURING DECLARATION

​

Invitation to Bid/Request for Expression of Interest No.1: [Insert reference number]

1 Select one and delete the other.

2 Select one and delete the other. Adopt same instruction for similar terms throughout the document.

3 Issued by the GPPB through GPPB Resolution 03-2012 on 27 January 2012.

4 Select one and delete the other.

To: [Insert name and address of the Procuring Entity]

I/We, the undersigned, declare that:

1. I/We understand that, according to your conditions, bids must be supported by a Bid Security, which may be in the form of a Bid-Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any contract with any procuring entity for a period of two (2) years upon receipt of your Blacklisting Order; and, (b) I/we will pay the applicable fine provided under Section 6 of the Guidelines on the Use of Bid Securing Declaration3, if I/we have committed any of the following actions:

(i) Withdrawn my/our Bid during the period of bid validity required in the Bidding Documents; or

(ii) Fail or refuse to accept the award and enter into contract or perform any and all acts necessary to the execution of the Contract, in accordance with the Bidding Documents after having been notified of your acceptance of our Bid during the period of bid validity.

3. I/We understand that this Bid-Securing Declaration shall cease to be valid on the following circumstances:

(a) Upon expiration of the bid validity period, or any extension thereof pursuant to your request;

(b) I am/we are declared ineligible or post-disqualified upon receipt of your notice to such effect, and (i) I/we failed to timely file a request for reconsideration or (ii) I/we filed a waiver to avail of said right;

​

(c) I am/we are declared as the bidder with the Lowest Calculated and Responsive Bid/Highest Rated and Responsive Bid4, and I/we have furnished the performance security and signed the Contract.

GPPB Resolution No. 03-2012, dated 27 January 2012 page 8 of 8

IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of [month] [year] at [place of execution].

[Insert NAME OF BIDDER’S AUTHORIZED REPRESENTATIVE]

[Insert signatory’s legal capacity]

Affiant

​

SUBSCRIBED AND SWORN to before me this __ day of [month] [year] at [place of execution], Philippines. Affiant/s is/are personally known to me and was/were identified by me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government identification card used], with his/her photograph and signature appearing thereon, with no. ______ and his/her Community Tax Certificate No. _______ issued on ______ at ______.

​

Witness my hand and seal this ___ day of [month] [year].

​

NAME OF NOTARY PUBLIC

Serial No. of Commission ___________

Notary Public for ______ until _______

Roll of Attorneys No. _____

PTR No. __, [date issued], [place issued]

IBP No. __, [date issued], [place issued]

Doc. No. ___

Page No. ___

Book No. ___

Series of ____.

FINANCIAL INFORMATION/DOCUMENTS (Second Envelope)

• As specified in the PBDs, which generally are:
• Duly signed Bid Prices in the Bill of �Quantities for procurement of Goods, or Scope of Work for procurement of Services
• Recurring and maintenance costs, if applicable

Opening of Bid Envelopes

PREL. EXAMINATION OF FINANCIAL PROPOSAL (Sec. 30.2)

• Opening the Financial Envelopes of remaining eligible bidders whose Technical Proposals were rated “passed” to ascertain: (a) compliance with the submission requirements; and (b) that bid price does not exceed ABC
• Only bids that pass prel. examination of both envelopes shall be rated “passed” and considered for evaluation and comparison
• “Failed” bidder has 3 c.d. to file request for reconsideration. BAC has 7 c.d. to decide

Procedural Steps for Procurement �of Goods/Services

• Step 5 – Evaluate the Bids

Bid Evaluation (Sec.32)

Purpose is to determine the Lowest Calculated Bid (LCB), by:

1. Establishing correct calculated prices of bids; and

2. Ranking calculated total bid prices from lowest to highest

• A non-discretionary criteria shall be used, which shall include consideration of: (a) completeness of bids; and (b) minor arithmetical corrections

Bid Evaluation

• Prohibition on communication w/ bidders until award of contract (Sec. 32.1)
• Bid Evaluation shall not be more than 7 days
• In case of discrepancies, the ff. shall prevail (Sec. 32.2.3):

- words over figures

- unit prices over total prices

- bill of quantities over detailed estimates

Bid Evaluation

• Where a required item is provided, but no price is indicated, the same shall be considered as non-responsive

- Ex.: Placing no price for an item would

be considered as non-responsive

- But specifying a (0) or (-) for an item would

mean it is offered for free

​

Bid Evaluation

• All bids shall be evaluate on equal footing to ensure fair and competitive bid evaluation (Sec. 32.2.2)

​

• All bidders are required to include the cost of all taxes (VAT, income tax, local taxes) and other fiscal levies and duties, which should be itemized in the bid form and reflected in the detailed estimates

​

117

Evaluate the Bids

Ranking of Total Bid Prices, ABC = P5,000,000

​

3

1

5

2

4

LCB

​

• The Lowest Calculated shall undergo post-qualification to determine whether the bidder complies with and is responsive to all the requirements & conditions specified in the Bid Docs.

​

• Within 5 cd from receipt of BAC notice of the LCB/SCB, submit the ff:The Lowest Calculated shall undergo post-qualification to determine whether the bidder complies with and is responsive to all the requirements
• Latest income and business tax returns filed and paid thru EFPS.
• Latest ITR – ITR for the preceding year, whether calendar or fiscal, and
• Latest business tax returns – Percentage Tax or VAT covering the previous 6 mos.
• Other appropriate licenses/permits required by law and stated in the Bidding Documents

118

Procedural Steps for Procurement �of Goods/Services

• Step 6 – Post – qualify

Post-Qualification (Sec. 34)

• To determine whether bidder with LCB complies with and is responsive to all requirements and conditions of eligibility and the bidding of the contract – to be declared the Lowest Calculated Responsive Bid (LCRB)
• A non-discretionary criteria shall be used to “Verify, Validate and Ascertain” all statements and documents
• To be accomplished within 12-45 calendar days from determination of LCB

Post-Qualification

• Post-Qualification Criteria (Sec 34.3)
1. Legal Requirements – Legal documents submitted by bidder as part of Eligibility Requirements
2. Technical Requirements – Compliance of the goods and services with the requirements of the contract and bidding documents. Also includes the bidder’s bid security, stated experience, after-sales or maintenance capabilities, plant/factory of a manufacturer
3. Financial Requirements – Bid price proposal, the required committed Line of Credit or the bidder’s NFCC to ensure that the bidder can sustain the operating cash flow of the transaction.

​

Costs Incurred at Post-qualification�(GPPB Res. 06-2016)

• During the conduct of post-qualification, the ocular inspection would sometimes entail cost on the part of the Procuring Entity (PE), which cost shall be borne by the PE considering that this is to performed in the course of official duties. Shifting to the bidders the burden to shoulder the post-qualification expenses, which will, in effect, make the bid prices higher than the usual, is not in consonance with the existing laws, rules and regulations, and may even create an impression of partiality, conflict of interest and receiving undue favor from the bidders.

123

ABC = P5,000,000

​

LCB

Post – qualify

LCRB

3

1

5

2

4

Procedural Steps for Procurement �of Goods/Services

• Step 7 – Award the contract

Award the Contract (Sec. 37)

• The contract shall be awarded to the bidder with the LCRB at its submitted price or calculated price, whichever is lower
• Within 15 c.d. from date of receipt of the recommendation of the BAC, the HOPE shall approve or disapprove the said recommendation. In case of approval, the HOPE shall immediately issue the Notice of Award.
• Contract award shall be made within the bid validity period not to exceed 120 calendar days from the date of the opening of bids.

Posting of the Notice Of Award (NOA)

• Sec. 37.1.6 :

The BAC, through the Secretariat shall post

within three (3) calendar days from issuance, the Notice Of Award in the PHILGEPS, the website of the Procuring Entity concerned, if any, and at any conspicuous place of Procuring Entity.

127

ABC = P5,000,000

​

LCB

Post – qualify

LCRB

3

1

5

2

4

• BAC shall declare a failure of bidding when
• No bids are received
• All bidders are declared ineligible
• All bids fail to comply with the bid requirements or fail post-qualification
• LCRB/HRRB refuses, without justifiable cause, to accept award of contract and no award is made

​

• Mandatory review after each failed bidding. Based on findings
• Revise terms, conditions, specifications
• Adjust ABC, subject to required approvals

​

• Rebid, with re-advertisement/posting

​

​

FAILURE OF BIDDING (SEC.35.1)

• Winning Bidder shall post a performance security w/in 10 cd from NOA’s receipt and in no case later than contract signing to guarantee the faithful performance by of its contract obligations

​

• Failure to sign the Contract or post Performance Security sufficient grounds to ANNUL the award and FORFEIT Bid Security

​

• Performance security shall be denominated in Phil. Pesos and posted in PE’s favor in an amount equal to the percentage of the total contract price

​

PERFORMANCE SECURITY (SEC.39)

Performance Security (Sec. 39)

Procedural Steps for Procurement �of Goods/Services

• Step 8 – Have the Contract signed and approved and issue the Notice to Proceed

• Procuring Entity shall enter into contract with the winning bidder w/in the same 10 day period provided that all the documentary requirements are complied with. (Sec. 37.22

​

• The following documents shall form part of the contract. (Sec.37.2.3)
• Contract Agreement and Bidding Documents;
• Winning bidder’s bid, including Eligibility requirements, Technical and Financial Proposals, and all other documents/statements submitted;
• Performance Security and NOA; and
• Other contract documents that may be required by existing laws and/or the Procuring Entity concerned in the Bidding Documents

​

132

CONTRACT SIGNING

• When further approval of higher authority is required, the approving authority for the contract or his duly authorized representative shall be given a max. of the following periods from receipt to approve or disapprove it.
• 20 cd (for NGAs, LGUs and SUCs); OR
• 30 cd (for GOCCs and GFIs)

​

133

CONTRACT APPROVAL OF A HIGHER AUTHORITY (SEC. 37.3)

• The concerned Procuring Entity shall issue the Notice to Proceed together with a copy or copies of the approved contract to the successful bidder w/in 7 cd from the date of approval of the contract by the appropriate government approving authority.

​

• All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the successful bidder.

​

NOTICE TO PROCEED (SEC. 37.4)

• The BAC Secretariat, shall post a copy of the Notice to Proceed and the approved contract w/in 15 cd from the NTP issuance in the following:

a) PHILGEPS

b) Procuring Entity’s website

NOTICE TO PROCEED (SEC. 37.4.2)

​

​

RULE XVI – ALTERNATIVE

METHODS OF PROCUREMENT

( Sections 48 – 54 )

​

PROCUREMENT STANDARDS

• Procuring Entities shall
• Adopt competitive bidding as the general mode of procurement
• Ensure that the procurement program allows sufficient lead time to conduct competitive bidding

​

• Alternative Methods of Procurement shall be resorted only
• In highly exceptional cases
• To promote economy and efficiency
• Justified by conditions specified in the 2016 Revised IRR of R.A. 9184

​

​

​

PROCUREMENT STANDARDS

• In all instances, Procuring Entities shall ensure that the most advantageous price for the Government is obtained.

​

• Procuring Entity shall ensure that the objectives and purpose of the contract do not constitute an unnecessary, excessive, extravagant, or unconscionable expenditure.

​

• Method of procurement to be used shall be indicated in the approved APP

​

​

​

PROCUREMENT STANDARDS

• If the original mode of procurement recommended in the APP was competitive bidding but cannot be ultimately pursued, the actions shall be as follows:
• BAC assisted by its Secretariat, the Technical Working Group, and by the appropriate End-User or relevant office, as the case may be, shall justify and recommend through a BAC Resolution such change in the mode of procurement to be approved by the HOPE.

​

• Changes in the procurement method must be reflected in the APP to be submitted to the GPPB

​

​

​

​

PROCUREMENT STANDARDS

• Splitting of Government Contracts is not allowed.

​

• Splitting of Government Contracts:
• division or breaking up of GOP contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and the IRR of R.A. 9184, particularly the necessity of competitive bidding and the requirements for the alternative methods of procurement.

​

PROCUREMENT STANDARDS

• Splitting of Government Contracts is not allowed.

​

• Splitting of Government Contracts:
• division or breaking up of GOP contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and the IRR of R.A. 9184, particularly the necessity of competitive bidding and the requirements for the alternative methods of procurement.

​

PROCUREMENT STANDARDS

• OBSERVERS:

​

• General Rule:

Observers may be invited as it may deem necessary

​

• Exception:

Observers shall be invited for:

• Limited Source Bidding
• Negotiated Procurement (Two-Failed Biddings)

​

​

​

Alternative Methods of Procurement (Secs. 48 - 54)

1. Limited Source Bidding – Direct invitation to pre-selected suppliers or consultants
2. Direct Contracting – Submission of price quotations by selected supplier
3. Repeat Order – Replenishment of goods within 6 mos. from previous winning bidder, not more than 25% of original quantity
4. Shopping – For unforeseen contingency and ordinary/regular office supplies & equipment to include commodities or supplies which, depending on the PE’s mandate & nature of operations, are necessary in the transaction of its official business (Annex “H”)
5. Negotiated Procurement – Direct negotiation w/ capable supplier, contractor or consultant

​

NEGOTIATED PROCUREMENT

• DEFINITION AND APPLICABILITY:
• Procurement of Goods, Infra. Proj. and Consulting services, whereby Procuring Entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant

​

• CONDITIONS:
• Two Failed Biddings
• Emergency Cases
• Take-Over of Contracts
• Adjacent or Contiguous
• Agency-to-Agency
• Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services.
• Highly Technical
• Defense Cooperation Agreement
• Lease of Real Property or Venue
• Small Value
• NGO Participation
• Community Participation
• UN Agencies

145

DELEGATION OF AUTHORITY (Annex “H”.j)

​

• The conduct of the following may be delegated to End-user unit or any other appropriate bureau, committee, or support unit duly authorized by the BAC through a Resolution approved by the HOPE:

​

• Shopping
• Negotiated Procurement (Emergency Cases)
• Negotiated Procurement (Small Value)
• Negotiated Procurement (Lease of Real Property and/or Venue)

​

146

DELEGATION OF AUTHORITY (Annex “H”.j)

​

• Shopping under Section 52.1(a) and Negotiated Procurement under Emergency Cases due to the urgent nature of the attendant circumstances, the BAC via a resolution and the HOPE through an Office Order may delegate to specific officials, personnel, committee or office of the Procuring Entity the conduct of shopping and award of contract to efficiently and expeditiously deal with the emergency sought to be addressed.
• For record and monitoring purposes, all awards shall be immediately reported with all supporting documents to the HOPE, through the BAC, to ensure compliance with all the conditions and requirements provided for under RA 9184, its IRR and related guidelines.

​

MANDATORY REVIEW ( Annex “H”.K )

• The BAC shall conduct mandatory review and evaluation of the terms, conditions, specifications, cost estimates in the RFQ or RFP, if none or less than the required number of quotations or proposals are received, despite the extension of deadline for the third time.
• Based on its findings, the BAC may revise the terms, conditions and specifications, and if necessary, adjust the ABC, subject to the required approvals, and repeat the procurement process.

Start

Planned

?

ABC<200K

?

​

ABC<1M

?

Available

at PS?

NEGOTIATE

with PS

​

P B

U I

B D

L D

I I

C N

G

ABC<1M

SHOPPING

​

ABC<1M

?

​

Proprietary?

Highly

Specialized

?

Highly

Technical /

Confidential

?

PUBLIC BIDDING

DIRECT

CONTRACT

LIMITED

SOURCE

BIDDING

NEGOTIATED

PROCUREMENT

Yes

No

No

No

Yes

Yes

No

No

Yes

No

No

Yes

Yes

No

Yes

No

DECISION TREE FOR ALTERNATIVE MODES OF PROCUREMENT: GOODS

REPEAT ORDER

FAILURE

Yes

Regular

Office

Supplies?

No

Yes

Additional?

<25%

<6 months?

Yes

No

AWARD

1^st

FAILURE

No

Yes

Yes

Yes

Imminent

Danger?

No

Yes

PUBLIC BIDDING

+ Scholarly/Scientific?

+ Lease of Real Property/Venue?

+ NGO Participation?

+ Community Participation?

+ UN Agencies?

Yes

Annual Procurement Plan

(Procurement Form No. 2)

Start

Planned

?

ABC<200K

?

​

ABC<1M

?

Available

at PS?

NEGOTIATE

with PS

​

P B

U I

B D

L D

I I

C N

G

ABC<1M

SHOPPING

​

ABC<1M

?

​

Proprietary?

Highly

Specialized

?

Highly

Technical /

Confidential

?

PUBLIC BIDDING

DIRECT

CONTRACT

LIMITED

SOURCE

BIDDING

NEGOTIATED

PROCUREMENT

Yes

No

No

No

Yes

Yes

No

No

Yes

No

No

Yes

Yes

No

Yes

No

DECISION TREE FOR ALTERNATIVE MODES OF PROCUREMENT: GOODS

REPEAT ORDER

FAILURE

Yes

Regular

Office

Supplies?

No

Yes

Additional?

<25%

<6 months?

Yes

No

AWARD

1^st

FAILURE

No

Yes

Yes

Yes

Imminent

Danger?

No

Yes

PUBLIC BIDDING

+ Scholarly/Scientific?

+ Lease of Real Property/Venue?

+ NGO Participation?

+ Community Participation?

+ UN Agencies?

Yes

IRR Highlights

• Failure of Bidding (Sec. 35)

​

• Mandatory review after each failed bidding

​

• Based on findings
• Revise terms, conditions, specifications
• Adjust ABC, subject to required approvals

​

• Rebid
• Invite previous bidders

​

Start

Planned

?

ABC<200K

?

​

ABC<1M

?

Available

at PS?

NEGOTIATE

with PS

​

P B

U I

B D

L D

I I

C N

G

ABC<1M

SHOPPING

​

ABC<1M

?

​

Proprietary?

Highly

Specialized

?

Highly

Technical /

Confidential

?

PUBLIC BIDDING

DIRECT

CONTRACT

LIMITED

SOURCE

BIDDING

NEGOTIATED

PROCUREMENT

Yes

No

No

No

Yes

Yes

No

No

Yes

No

No

Yes

Yes

No

Yes

No

DECISION TREE FOR ALTERNATIVE MODES OF PROCUREMENT: GOODS

REPEAT ORDER

FAILURE

Yes

Regular

Office

Supplies?

No

Yes

Additional?

<25%

<6 months?

Yes

No

AWARD

1^st

FAILURE

No

Yes

Yes

Yes

Imminent

Danger?

No

Yes

PUBLIC BIDDING

+ Scholarly/Scientific?

+ Lease of Real Property/Venue?

+ NGO Participation?

+ Community Participation?

+ UN Agencies?

Yes

NEGOTIATED PROCUREMENT�(TWO FAILED BIDDINGS)

• APPLICABILITY:

ALL types of procurement

​

• CONDITIONS:
• Where there has been failure of competitive bidding or Limited Source Bidding for the second time as provided for in Section 35 of RA 9184 and its IRR

​

• Mandatory review of the following:
• Minimum technical specifications
• ABC, which may be adjusted up to 20% from last bidding

​

153

NEGOTIATED PROCUREMENT�(TWO FAILED BIDDINGS)

​

• GPPB CIRCULAR 05-2016 DATED DECEMBER 20, 2016:

​

BAC shall endeavor to conduct Negotiated Procurement (Two-Failed Biddings) immediately, but it should not exceed 15 days after the declaration of the 2^nd failure of bidding under Sections 35, 53.1 and Annex H of the 2016 Revised IRR of R.A. 9184.

​

May be extended up to thirty (30) days upon HOPE approval.

154

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• After conduct of the mandatory review of the terms, conditions, specifications, and cost estimates, as prescribed in Section 35 of the IRR of R.A. 9184, BAC, based on its findings, as assisted by its Secretariat, TWG and End-User may revise and agree on the technical, legal and financial eligibility requirements and technical specifications or terms of reference, and if necessary, adjust the ABC, subject to the required approvals.

However, ABC cannot be increased by more than 20% of the ABC for the last failed bidding.

​

• BAC, through the Secretariat, shall post the invitation or the request for submission of quotations or proposals for a period of at least 3 cd , in the following:
1. PhilGEPS website,
2. Procuring Entity’s website, if available, and
3. Conspicuous place within the premises of the Procuring Entity.

​

155

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• BAC shall invite at least 3 suppliers, contractors or consultants, including those disqualified in previous biddings for the project, for negotiations to ensure effective competition.

This, notwithstanding, those who responded through any of the required postings shall be allowed to participate.

​

Even if only 1 bidder should respond to such invitation or posting, BAC shall proceed with the negotiation.

​

​

​

156

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• Any requirements, guidelines, documents, clarifications, or other information relative to the negotiations that are communicated by the BAC to a supplier, contractor, or consultant shall be communicated on an equal basis to all other suppliers, contractors, or consultants engaging in negotiations with the BAC relative to the procurement.

​

• Prospective bidders shall be given equal time and opportunity to negotiate and discuss the technical and financial requirements of the project to be able to submit a responsive quotation or proposal.

​

​

​

​

157

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• Following completion of the negotiations, BAC shall request all suppliers, contractors, or consultants in the proceedings to submit, on a specified date, a best offer based on the final technical and financial requirements

​

• Submission of PHILGEPS Registration Certificate is required

​

• Bid Security submission may be dispensed with

​

• BAC shall recommend award of contract to the HOPE in favor of the supplier, contractor or consultant determined to have the Single or Lowest Calculated and Responsive Quotation (for goods and infrastructure projects) or Single or Highest Rated and Responsive Proposal (for consulting services)

​

​

158

PROCEDURES:

• Within a period not exceeding 15 cd from receipt, HOPE shall approve or disapprove the BAC’s recommendation.

​

• In case of approval, HOPE shall immediately issue the NOA to the Supplier, Contractor or Consultant

​

• In the event HOPE shall disapprove the recommendation, such disapproval shall be based only on valid, reasonable, and justifiable grounds to be expressed in writing, addressed to the BAC.

​

• Supplier, contractor or consultant shall immediately enter into contract with the Procuring Entity upon receipt of the NOA.

​

​

159

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• Upon transmission of the signed contract/PO, HOPE or his duly authorized representative shall immediately sign the contract/PO provided that all the relevant documentary requirements are submitted.

​

• HOPE or his duly authorized representative shall issue the NTP, if necessary, and a copy of the approved contract to the Supplier, Contractor or Consultant w/in 3 cd from the date of approval of the contract by the appropriate government approving authority.

160

NEGOTIATED PROCUREMENT �(TWO-FAILED BIDDINGS)

PROCEDURES:

• Performance securities are required

​

• Warranty securities are required, except for consulting services.

​

• BAC, through its Secretariat, shall post the NOA, Contract/PO, including the NTP if necessary, for information purposes, w/in 10 cd from their issuance, except for contracts with an ABC of PhP 50,000.00 and below, in the following:
• PHILGEPS website,
• Website of the Procuring Entity, if available, and
• Conspicuous place w/in the premises of the Procuring Entity

161

NEGO PROC (TWO-FAILED)

162

NEGO PROC (TWO-FAILED)

163

NEGO PROC (TWO-FAILED)

164

Start

Planned

?

ABC<200K

?

​

ABC<1M

?

Available

at PS?

NEGOTIATE

with PS

​

P B

U I

B D

L D

I I

C N

G

ABC<1M

SHOPPING

​

ABC<1M

?

​

Proprietary?

Highly

Specialized

?

Highly

Technical /

Confidential

?

PUBLIC BIDDING

DIRECT

CONTRACT

LIMITED

SOURCE

BIDDING

NEGOTIATED

PROCUREMENT

Yes

No

No

No

Yes

Yes

No

No

Yes

No

No

Yes

Yes

No

Yes

No

DECISION TREE FOR ALTERNATIVE MODES OF PROCUREMENT: GOODS

REPEAT ORDER

FAILURE

Yes

Regular

Office

Supplies?

No

Yes

Additional?

<25%

<6 months?

Yes

No

AWARD

1^st

FAILURE

No

Yes

Yes

Yes

Imminent

Danger?

No

Yes

PUBLIC BIDDING

+ Scholarly/Scientific?

+ Lease of Real Property/Venue?

+ NGO Participation?

+ Community Participation?

+ UN Agencies?

Yes

NEGOTIATED PROCUREMENT�(EMERGENCY CASES)

• APPLICABILITY:

ALL types of procurement

Can be delegated to the end-user unit or any other

appropriate bureau/committee/support unit

​

• CIRCUMSTANCES/CONDITIONS:
• Imminent danger to life or property during a state of calamity
• When time is of the essence arising from natural or man-made calamities
• Other causes where immediate action is necessary:
• To prevent damage to or loss of life or property
• To restore vital public services, infrastructure facilities, and other public utilities

​

​

166

NEGOTIATED PROCUREMENT�(EMERGENCY CASES)

• PROCEDURES:
• End-User unit or the duly authorized official or personnel shall submit a request to the BAC or the HOPE, as the case may be, accompanied by appropriate supporting documents identifying the emergency sought to be addressed, and the necessary goods, civil works or consulting services (e.g., Technical Specifications, Scope of Work or Terms of Reference) that have to be procured to address the emergency.

​

• Upon preparation of the appropriate procurement documents, BAC may directly negotiate with a supplier, contractor or consultant with technical, legal and financial capability to deliver the goods, execute the works and perform the services to address the emergency.

​

167

NEGOTIATED PROCUREMENT�(EMERGENCY CASES)

• PROCEDURES:
• Upon confirmation and ascertainment of such capability to address the emergency, HOPE, upon BAC recommendation, shall immediately award the contract to the Supplier, Contractor or Consultant.

​

• BAC, through its Secretariat, shall post the NOA, Contract/PO, including the NTP if necessary, for information purposes, w/in 10 cd from their issuance, except for contracts with an ABC of PhP 50,000.00 and below, in the following:
• PHILGEPS website,
• Website of the Procuring Entity, if available, and
• Any conspicuous place w/in the premises of the Procuring Entity

​

168

NEGO PROC (EMERGENCY CASES)

169

NEGO PROC (EMERGENCY CASES)

170

NEGO PROC (EMERGENCY CASES)

171

Start

Planned

?

ABC<200K

?

​

ABC<1M

?

Available

at PS?

NEGOTIATE

with PS

​

P B

U I

B D

L D

I I

C N

G

ABC<1M

SHOPPING

​

ABC<1M

?

​

Proprietary?

Highly

Specialized

?

Highly

Technical /

Confidential

?

PUBLIC BIDDING

DIRECT

CONTRACT

LIMITED

SOURCE

BIDDING

NEGOTIATED

PROCUREMENT

Yes

No

No