Bidding Procedures for the procurement of Goods and Infrastructure Projects
description
Transcript of Bidding Procedures for the procurement of Goods and Infrastructure Projects
General purpose:
Determine readiness of procurement and criteria
Conducted prior to advertisement/posting of the ITB/REI
Mandatory – above Php. 2 M (Goods) - above Php. 5 M (Infra)
Attended by the ff:a) BAC d) BAC Secretariatb) TWG e) End-user unit/Other officialsc) Consultants
Pre-BidConference
Opening ofTechnical Proposal
(incl. eligibility docs)Opening of
Financial Proposal
Bid Evaluation Post-qualification
Bidding ProcessAdvertise/
Post Invitation to
Bid
Distribution of Bid Docs
Bid Submissio
n
Contract
Award
3 months
IAEB to Invitation to Bid (goods and infra) or Request for Expression of Interest (consulting)
Includes posting in the website prescribed by the foreign government/foreign or international financing institution, for foreign-funded procurement
Posting at PE’s internet service provider’s website not necessary
Posting requirements for alternative methods of procurement was transferred to Sec. 54.2
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ADVERTISEMENT/POSTING OF ADVERTISEMENT/POSTING OF THE INVITATION TO BIDTHE INVITATION TO BID
Medium≤ 2 M
(goods) ≤ 5 M (infra)
2 M (goods)> 5 M (infra)
Frequency
Newspaper Once in 1 newspaper
PhilGEPS Continuously
Until Bid Submission
Website of Procuring Entity
Continuously Until Bid
Submission
Conspicuous place Continuously
Until Bid Submission
Distribution of Bidding Documents
Deleted provisions on the bidder’s responsibilities under Sec. 17.7 & transferred to PBDs
Period for the availability of bidding documents Goods & infra projects
IB’s date of advertisement - bid submission
4th Edition of Standard Bidding Documents - approved by the GPPB through Res. No. 06-2010, dated 17
December 2010- Mandatorily to be use last 21 February 2011.
DISTRIBUTION OF BID DOCSDISTRIBUTION OF BID DOCS
Distribution of Bidding Documents
Post at the PE’s website and at the PhilGEPS from the time the ITB/REI is advertised.
Prospective bidders may download the bidding documents
Pay the bid fee upon bid submission
Cost for the sale of bidding shall be in a reasonable amount to recover the cost of its preparation and development.
DISTRIBUTION OF BID DOCSDISTRIBUTION OF BID DOCS
Forum where the PE’s representatives & the bidders discuss the different aspects of the project
Mandatory – ABC 1M or more; Discretionary – ABC less than 1M
Statements made during the conference should be included in the Supplemental/Bid Bulletin in order to be considered as modifications to the terms of the bid docs
Held at least 12 cd before deadline for bid submission. May be extended to at least 30 cd considering: Method, nature, and complexity of contract International participation is more advantageous
At the option of procuring entity, only bidders who purchased bid documents are allowed to attend or ask questions
Request for clarifications must be submitted at least 10 cd before bid submission
Supplemental/Bid Bulletins must be issued at least 7 cd before bid submission to answer requests for clarification/interpretation, and upon BAC’s initiative to clarify/modify any bid docs’ provision
Posted in PhilGEPS and PE’s website
Supplemental Bid Bulletin shall be duly signed by the BAC Chairperson
Bidders who have submitted bids before issuance of Supplemental/Bid Bulletin have to be informed in writing and allowed to modify/withdraw their bids.
SUPPLEMENTAL BID BULLETINSUPPLEMENTAL BID BULLETIN
Goods and Infra:
Two-Envelope System 1st Envelope - Eligibility Req. & Technical Component 2nd Envelope – Financial Component
Submitted to the BAC on the date, time, and place specified in the Invitation to Bid.
Bids submitted after the deadline should not be accepted
Date of submission should not be later than the following period from the last day of posting of the Invitation to Bid
Documentary requirements trimmed down
Category Maximum Period (cd)
Goods 45Infra (50M and below) 50
OPENING AND EVALUATION OF OPENING AND EVALUATION OF BIDSBIDS
A bidder may modify or withdraw its bid provided this is done before the deadline for the submission and receipt of bids
Bid modifications received after the deadline shall not be considered and shall be returned to the bidder unopened.
Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions
Contents of the 1st Envelope (Technical Component)
1. Eligibility requirements2. Bid security3. Goods - Technical specifications
- production/delivery schedule;- manpower requirements; and/or,- after-sales service/parts
Infra - Project Requirements - Organizational chart; - List of contractor’s personnel; and;- List of contractor’s equipment units)
Contents of the 1st Envelope (Technical Component)
4. Omnibus sworn statement Non-inclusion in blacklist Authenticity of documents Verification authority Signatory’s authority Disclosure of relations Responsibilities of bidders Labor laws and standards
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Reduced to 5-6 documents
Others to be submitted during – Post-qualification Prior to Award of Contract
ELIGIBILITY REQUIREMENTSELIGIBILITY REQUIREMENTS
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Class “A” Eligibility DocumentsGOODS INFRASTRUCTURE
1. DTI/SEC/CDA Registration or other proofs of registration, expressly enumerated in bid docs
1. DTI/SEC/CDA Registration or other proofs of registration expressly enumerated in the bid docs
2. Mayor’s permit from principal place of business
2. Mayor’s permit from principal place of business
3. Statement of all ongoing & completed contracts
3. Statement of all ongoing & completed contracts
4. Audited financial statement 4. Valid PCAB license & registration
5. NFCC computation or CLC 5. Audited financial statement
6. NFCC computation or CLC
ELIGIBILITY REQUIREMENTSELIGIBILITY REQUIREMENTS
Class “B” Eligibility Documents
If Joint Venture - JVA or sworn statements by each partner that
they will enter into and abide by provisions of the JVA if awarded the contract
Each JV partner shall submit the legal eligibility docs.
Submission of the technical and financial eligibility docs. by any of the JV partners constitutes compliance
Failure to enter into a JV in the event of contract award shall be a ground for bid security forfeiture.
ELIGIBILITY REQUIREMENTSELIGIBILITY REQUIREMENTS
Legal Eligibility Criteria – Goods (Sec. 23)
General rule: 60% Filipino
Foreign bidders eligible allowed – If stated in treaty or international or executive
agreement National of a country offering reciprocity rights
to Filipinos Goods not available from local suppliers To prevent situations that defeat competition
or restrain trade
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ELIGIBILITY CRITERIAELIGIBILITY CRITERIA
Legal Eligibility Criteria - Infra (Sec. 23)
General rule: 75% Filipino (LOI 630)
Foreign contractors allowed if stated in treaty or international or executive agreement
If joint venture, less than 75% is allowed if Structures to be built require techniques not
possessed by 75% Filipinos Not less than 25% Filipino
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ELIGIBILITY CRITERIAELIGIBILITY CRITERIA
Technical Eligibility Criteria – Goods (Sec. 23)
General Rule Exceptions Require the ff.:1. Expendable
Supplies• 25% of the
ABC
2. Services and Non-expendable Supplies• 50% of the
ABC
If, at the outset and after market research, applying the general rule will likely result to:
1.Failure of bidding; or2.Monopoly
a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and
b) Largest of the similar contracts amounts to at least 50% of required percentage
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ELIGIBILITY CRITERIAELIGIBILITY CRITERIA
Technical Eligibility Criteria - Infra (Sec. 23)
Track Record: Single Largest Contract Retain at 50% But w/in 10 yrs from bid submission
Contractors under Small A and B categories w/out similar experience on the contract may bid if the contract cost is not more than 50% of the ARCC of their registration.
PCAB License (RA 4566) to engage or act as a contractor
Satisfactory CPES Rating and/or certificate of completion and owner’s acceptance
Contract shall be considered “similar” if it has the same major categories of work 21
ELIGIBILITY CRITERIAELIGIBILITY CRITERIA
Financial Eligibility Criteria – Goods and Infra (Sec. 23)
NFCC at least equal to ABC
CLC at least equal to 10% of ABC Issued by Universal or Commercial Bank For LGUs: other banks certified by BSP as
authorized to issued said CLC
Option to submit cash deposit certificate deleted
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ELIGIBILITY CRITERIAELIGIBILITY CRITERIA
Contents of the 2nd Envelope (Financial Component)
1. Financial Bid Form (includes bid prices and bill of quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI, SEC, or CDA, if claiming preference as Domestic Bidder or Domestic Entity
3. Other documents required in the bidding documents
Deleted certified check and foreign government guarantee from acceptable forms
In general, bank issued securities must be issued by a universal/commercial bank
However, in biddings conducted by LGUs, securities may be issued by banks certified by BSP as authorized to issue said instruments
Surety Bonds must be accompanied by certification from Insurance Commission that issuer is authorized to issue such security
Bidder has option to choose among acceptable forms of security
Procuring entity may not limit options available to bidders
BID & PERFORMANCE BID & PERFORMANCE SECURITYSECURITY
Form of Bid and Performance
Security
Amt of Bid Security
(% = ABC)
Amt of Performance Security
(% = Contract Price)
a)Cash or cashier’s/manager’s check 2% 5% (Goods & Consulting)
10% (Infra)b)Bank guarantee/draft or Irrevocable LC
c)Surety bond callable upon demand
5% 30%
d)Combination of the foregoing Proportionate to share of form with respect
to the total amount of security
BID & PERFORMANCE BID & PERFORMANCE SECURITYSECURITY
No contact rule BAC, thru Secretariat, may request for clarification of
bid as long as it is in writing Determine the LCB by1. Establishing correct calculated prices of bids; and2. Ranking calculated total bid prices from lowest to
highest A non-discretionary criteria shall be used, which shall
include consideration of: 1. completeness of bids; and 2. minor arithmetical corrections 7 cd from the deadline for receipt of proposals. In the case of infra. Proj. costing 50M and below – 5 cd
DETAILED EVALUATION OF DETAILED EVALUATION OF BIDSBIDS
In case of discrepancies, the ff. shall prevail: words over figures unit prices over total prices bill of quantities over detailed estimate
Unless the ITB specifically allows partial bids, those not providing all required items shall be considered non-responsive Placing no price is considered as non-responsive Specifying a “0” or “-” means it is offered for free
DETAILED EVALUATION OF DETAILED EVALUATION OF BIDSBIDS
Verify, validate and ascertain the following: Legal Requirements 1. licenses and agreements2. legal documents under eligibility envelope Technical Requirements 1. sufficiency of the bid security as to type, amount, form
wording and validity period Financial Requirements 1. bid price proposal2. NFCC computation3. credit line or cash deposit certificate, to ensure that
bidder can sustain the operating cash flow transaction Completed in 7 cd. But, may be extended by the HOPE to
not more than 30 cd
POST-QUALIFICATIONPOST-QUALIFICATION
3 days from notice of LCB, submit the ff: Tax clearance Latest income and business tax returns Certificate of PhilGEPS registration Other appropriate licenses & permits required by
law & stated in the Bid Docs.
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POST-QUALIFICATIONPOST-QUALIFICATION
Disclosure of Relations (Sec. 47)
Relatives within the 3rd civil degree of the following shall be disqualified:
Head of the procuring entity Members of the BAC, Secretariat and TWG Head of the end-user unit/PMO Project consultants
DISCLOSURE OF RELATIONSDISCLOSURE OF RELATIONS
Contract shall be awarded to the bidder with the LCRB or SCRB at its submitted price or total calculated bid price, whichever is lower
Notice of Award (NOA) is issued by the HOPE NGAs and LGUs – 7 cd NOA conditioned on the following: If joint venture, submission of JVA If foreign-funded and stated in treaty, international or
executive agreement, PCAB License Posting of Performance Security Signing of Contract (within 10 cd) If required, approvals by higher authority 3 mos. - procurement process from opening of bids up to
award of contract or a shorter period
ISSUANCE OF NOTICE OF ISSUANCE OF NOTICE OF AWARDAWARD
NOA posted within 3 cd from its issuance in the following: a) PhilGEPS website;
b) PE’s website; and
c) Conspicuous places
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ISSUANCE OF NOTICE OF ISSUANCE OF NOTICE OF AWARD AWARD
Contract Signing (Sec. 37.2)
Within 10 cd from receipt of NOA
Mandatory submission of other contract documents that may be required by existing laws and/or the PE (infra):
a) Construction schedule and S-curve;b) Manpower schedule;c) Construction methods;d) Equipment utilization schedule;e) Construction safety and health program
approved by DOLE; and,f) PERT/CPM
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CONTRACT SIGNINGCONTRACT SIGNING
Issued to the successful bidder together with the copy of the approved contract within 3 cd from date of approval
For infrastructure projects with ABC of 50M and below, the maximum period is 2 cd
Contract effectivity date should be provided in the NTP, which should not be later than 7 cd from its issuance
BAC Secretariat should post a copy of the NTP and the approved contract in the PhilGEPS and PE’s website within 15 cd from issuance of NTP
NOTICE TO PROCEEDNOTICE TO PROCEED
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 BIDDINGFAILURE OF BIDDING
Procurement Timelines
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Timelines for the Procurement of Goods (Annex C) – Latest Allowable Time
Timelines for the Procurement of Infrastructure Projects with an ABC of Php. 50 Million and below (Annex C) – Latest Allowable Time
Timelines for the Procurement of Goods and Infrastructure Projects (Annex C) – Earliest Possible Time
Contract Implementation
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Type Period Form Percentage of Contract Price
Expendable 3 mos., unless earlier
consumed
Special bank guarantee or
Retention money
10%
Non-expendable 1 year
Services None None None
Form of Warranty Security Amt of Warranty Security
(% of Contract Price)
a)Cash or LC from a Universal/Commercial Bank
5%
b) Bank guarantee from Universal/Commercial Bank
10%
c) Surety bond callable upon demand issued by GSIS or a surety/insurance company certified by the Insurance Comm.
30%
WARRANTY SECURITY (INFRA)
Warranty Security – Infra (Sec. 62)
Warranty period vs. Warranty security period Warranty security period reduced to 1 year
from issuance of the Certificate of Final Acceptance
Liability per stage From project construction to final acceptance From project completion to final acceptance From final acceptance to warranty security period
PLAN /BUDGET
START ACCEPT ENDEnd of
W SCOMPLETE
BID
Security
WARRANTY
Security
PERFORMANCE
Security
1 yr 1 yr
PRECON
Period
IMPLEMENTATION
PeriodWARRANTY
Period
Defect /
liability
Period
PROJECT CYCLE / MILESTONES
• CARICARI• PaymentsPayments- Advance- Advance- Progress- Progress
- Final- Final- Retention money- Retention money
GOODS : Supplier Fails to perform obligations within specified schedule,
inclusive of duly granted time extensions
Imposed for every day of delay until performance and acceptance
PE need not prove it incurred actual damages
Amount is 1/10 of 1% of the cost of the unperformed portion for every day of delay
If sum of liquidated damages reaches 10% of the contract amount, PE shall automatically rescind the contract and impose appropriate sanctions over and above the liquidated damages
General Rule: Made only after President’s prior approval and
shall not exceed 15% of the contract price
Exceptions: Single advance payment not to exceed 50%
of the contract price for the ff. services: Hotel and restaurant services Use of conference/seminar and exhibit areas Lease of office space
Exceptions: (Cont.)ΘAdvance payment not to exceed 15% allowed to address contingencies arising from natural or man-made calamities in areas where “state of calamity” has been declaredΘ15% of the contract price shall be paid within 60 days from signing of contract and upon submission of a claim and a irrevocable standby letter of credit (Memorandum Order No. 15 dated May, 2011)
Requirements:
Written request from the contractor Submission of an irrevocable standby
letter of credit of equivalent value from a commercial bank, bank guarantee, or surety bond
Amount not to exceed 15% of the contract price subject to recoupment every progress billing
Progress payments subject to 10% retention money
Conditions Deducted until 50% of the works has been
completed
If after 50%, work is satisfactory and on schedule, no additional retention is made, otherwise 10% shall be imposed
Total retention is due for release upon issuance of a certificate of final acceptance
PROGRESS PAYMENT (INFRA)
Allowed as long as stated in bid docs
Bid docs shall identify portions of the contract which may be subcontracted which shall not exceed the maximum percentage limitations
Goods – no limit Infra – 50%
Subcontracting shall not relieve the principal from any liability or obligation
SUB-CONTRACTING
Subcontractor may be identified at any stage of the bidding process or during contract implementation
Subcontractors must comply with the eligibility criteria and documentary requirements as specified by the PE in their bid docs
Proposed sub-contractor may be changed during contract implementation upon HOPE’s approval.
SUB-CONTRACTING
If sub-contractor is ineligible, sub-contracting shall be disallowed.
If subcontractor is disclosed during bid submission, bidder shall include the required documents as part of the bid’s technical component.
SUB-CONTRACTING
- THANK YOU -
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