N W P C Guide on Procurement

National Wages and Productivity Commission Department of Labor and Employment

A joint project of the

Review, Appeals and Legal Division

and the

Administrative Division

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TABLE OF CONTENTS

TOPIC PAGE

I. Purpose 1

II. Definition of Terms 3

III. Background on Procurement 8

IV. Budget Preparation and Procurement Planning 10

V. Procurement Groups 14

a. Bids and Awards Committee (BAC) 14

b. Bids and Awards Committee Secretariat

(BAC Secretariat) 16

c. Technical Working Group (TWG) 18

d. Observers 18

VI. Procurement Procedure Flow Chart 22

VII. Procurement Modes 23

VIII. Procurement Mode: Competitive Bidding 23

a. Step 1: Preparation of Bidding Documents 24

b. Step 2: Advertisement of the Invitation to Bid 25

c. Step 3: Pre-bid Conference 29

d. Step 4: Submission and Receipt of Bids 30

e. Step 5: Opening of Bids/Evaluation of Bids 35

f. Step 6: Post Qualification 37

g. Step 7: Award of the Contract 40

IX. Protest Mechanism 45

X. Procurement Mode: Alternative Methods

of Procurement 47

a. Limited Source Bidding 48

b. Direct Contracting/Single Source Procurement 49

c. Repeat Order 50

d. Shopping 51

ii

e. Negotiated Procurement: 52

1. Two Failed Bidding 52

2. Emergency Cases 52

3. Take Over of Contracts 52

4. Adjacent or Contiguous 53

5. Agency-to-Agency 53

6. Procurement Agent 53

7. Highly Technical Consultants 53

8. Defense Cooperation Agreement 54

9. Small Value Procurement 54

10. Lease of Real Property 54

11. NGO Participation 54

12. Community Participation 55

13. United Nations Agencies 55

a. Terms and Conditions for the Use of Alternative Method 55

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I. PURPOSE

Section 4.1 of the revised Implementing Rules and

Regulations (IRR) of Republic Act No. (RA) 91841 explicitly provides

that it shall apply to all procurement activities of any branch,

agency, department, bureau, office, or instrumentality of the

Government of the Philippines, including government owned

and/or controlled corporations (GOCCs), government financial

institutions (GFIs), state universities and colleges (SUCs), as well

as, local government units (LGUs). Hence, the National Wages and

Productivity Commission (NWPC), as an attached agency of the

Department of Labor and Employment and created under

Republic Act No. (RA) 6727, is not exempted from this

requirement. Thus, its procurement should be through public

bidding, as general rule, or through any of the alternative

methods of procurement as prescribed under RA 9184. As

provided for under Section 3 of R.A. 9184, government

procurement shall be governed by the principles of transparency,

competitiveness, streamlined procurement process, system of

accountability and public monitoring.

In line with this, there is a need for the crafting of a

procurement guide based on RA 9184 and its IRR and all other

Government Procurement Policy Board (GPPB) issuances and

other government issuances to provide the members of the

NWPC Bids and Awards Committee (BAC) with easy reference in

1 Government Procurement Reform Act; Signed by her Excellency President Gloria Macapagal-Arroyo on 10 January 2003, and was published on 11 January 2003, in two (2) newspapers of general nationwide circulation, namely, Manila times and Malaya. It took effect fifteen (15) days after its publication or on 26 January 2003.

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the performance of their duties relative to the procurement of

goods and services.

This will contain the basic process flow for the

procurement of goods, general support services, and

infrastructure projects, beginning from the budget preparation all

the way to the award of the contract. Topics and concerns that

have not been tackled by the Procurement Guide can be

addressed through RA 9184 itself and its Revised Implementing

Rules and Regulations.

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II. DEFINITION OF TERMS

2.1 Approved Budget for the Contract (ABC) - refers to the

budget for the contract duly approved by the Head of the

Procuring Entity, as provided for in the General Appropriations

Act (GAA) continuing, and automatic appropriations, in the case of

national government agencies (NGAs).

2.2 BAC - refers to the Bids and Awards Committee.

2.3 Bid - refers to a signed offer or proposal to undertake a

contract submitted by a bidder in response to and in consonance

with the requirements of the Bidding Documents.

2.4 Bidder - refers to an eligible contractor, manufacturer,

supplier, distributor and/or consultant, competing for the award

of a contract in any procurement by the Government of the

Philippines (GOP). A contractor, manufacturer, supplier,

distributor or consultant is said to be eligible if it meets all the

eligibility requirements issued by the procuring entity.

2.5 Bidding Documents - refer to the documents issued by the

Procuring Entity as the basis for bids, furnishing all information

necessary for a prospective bidder to prepare a bid for the

infrastructure projects, goods and/or consulting services required

by the Procuring Entity.

2.6 Bid Security – this shall serve as a guarantee that after

receipt of the Notice of Award, the winning bidder shall enter into

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contract with the Procuring Entity within the stipulated time and

furnish the required performance security.2

2.7 Common-Use Supplies - refer to those goods, materials

and equipment that are used in the day-to-day operations of

Procuring Entities in the performance of their functions.

2.8 Consulting Service - refers to services for infrastructure

projects and other types of projects or activities of the GOP

requiring adequate external technical and professional expertise

that are beyond the capability and/or capacity of the GOP to

undertake such as, but not limited to: (i) advisory and review

services; (ii) pre-investment or feasibility studies; (iii)design; (iv)

construction supervision; (v) management and related services;

and (vi) other technical services or special studies.

2.9 Competitive Bidding - refers to a method of procurement

which is open to participation by any interested party and which

consists of the following processes: advertisement, pre-bid

conference, eligibility screening of prospective bidders, receipt

and opening of bids, evaluation of bids, post-qualification, and

award of contract.

2.10 Expendable supplies - refer to articles which are normally

consumed in use within one (1) year or converted in the process

of manufacture or construction, or those having a life expectancy

of more than one (1) year but which shall have decreased

substantially in value after being put to use for only one year (e.g.,

medicines, stationery, fuel, and spare parts.)

2 Section 27, RA 9184.

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2.11 Goods - refer to all items, supplies, materials, and general

support services, except consulting services and infrastructure

projects, which may be needed in the transaction of public

businesses or in the pursuit of any government undertaking,

project or activity, whether in the nature of equipment, furniture,

stationery, materials for construction, or personal property of any

kind, including non-personal or contractual services, such as, the

repair and maintenance of equipment and furniture, as well as,

trucking, hauling, janitorial, security, and related or analogous

services, as well as procurement of materials and supplies

provided by the procuring entity for such services. The term

“related” or “analogous services” shall include, but not be limited

to, lease or purchase of office space, media advertisements,

health maintenance services, and other services essential to the

operation of the procuring entity.

2.12 Head of the Procuring Entity - refers to: (i) the head of the

agency or body, or his duly authorized official, for NGAs, and the

constitutional commissions or offices, and branches of

government; (ii) the governing board or its duly authorized official

for GOCCs, GFIs, and SUCs, or (iii) the local chief executive for

LGUs; Provided, however, That in an agency, department, or office

where the procurement is decentralized, the head of each

decentralized unit shall be considered as the Head of the

Procuring Entity, subject to the limitations and authority

delegated by the head of the agency, department, or office.

2.13 Non-expendable supplies - refer to articles which were

not consumed in use and ordinarily retain their original identity

during the period of use, whose serviceable life is more than one

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(1) year and which add to the assets of the GOP (e.g. furniture,

fixtures, transportation and other equipment).

2.14 PhilGEPS - refers to the Philippine Government Electronic

Procurement System.

2.15 Procuring Entity - refers to any branch, constitutional

commission or office, agency, department bureau, office, or

instrumentality of the GOP (NGA), including GOCCs, GFIs, SUCs

and LGUs procuring goods, consulting services and infrastructure

projects.

2.16 Procurement - refers to the acquisition of Goods,

Consulting Services and the contracting for Infrastructure Projects

by the Procuring Entity. Procurement shall also include the lease

of goods and real estate. With respect to real property, its

procurement shall be governed by the provisions of R.A. 8974

entitled “An Act to Facilitate the Acquisition of Right-of-Way Site

or Location for National Government Infrastructure Projects and

for Other Purposes”, and other applicable laws, rules and

regulations.

2.17 Virtual Store - refers to an enhanced electronic catalogue

of the PhilGEPS that allows procuring entities to purchase

common-use supplies online that are available from the PS and its

depot.3

2.18 Single Largest Completed Contract Rule - Under this rule,

the bidder must have an experience of having completed within

the period specified in the Invitation to Bid, a single contract that 3 Section 3 (e) OP Administrative Order No. 17 dated 28 July 2011.

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is “similar” to the contract to be bid, and whose value, adjusted to

current prices using the National Consumer Price Indices, must be

at least 50% of the ABC. However, in the case of Expendable

Supplies, said single contract must be at least 25% of the ABC. If,

at the outset, and after conducting market research, the

procuring entity can already determine that imposing the same

will likely to result to (a) failure of bidding or; (b) monopoly, the

bidder will instead be required of the following:

(a) Two (2) completed contracts similar to the contract being bid

out, and the aggregate contract amounts should be equivalent at

least to 50% or 25% as the case maybe of the ABC being bid out;

(b) The largest of these similar contracts must be equivalent to at

least half of 50% or 25%, as the case maybe, of the ABC being bid

out.

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III. BACKGROUND ON PROCUREMENT

Republic Act No. 9184

Republic Act No. 9184 is the Government Procurement Reform

Act which prescribes the rules and regulations in the procurement

activities of the government to promote good governance

through the principle of transparency, accountability, equity,

efficiency, and economy.4

Procurements covered under RA 9184

Procurements cover the acquisition of goods , consulting services,

and the contracting of infrastructure projects, as well as mixed

procurements, where the nature of the procurement shall be

determined by the primary purpose of the contract.

Procurements not covered under RA 9184

The following procurements are not covered under RA 91845:

a) Procurement of goods, infrastructure projects, and

consulting services funded from Foreign Grants covered

by RA 8182, as amended by RA 8555, entitled “An Act

Excluding Official Development Assistance (ODA) from the

Foreign Debt Limit in order to Facilitate the Absorption

and Optimize the Utilization of ODA Resources, Amending

for the Purpose Paragraph 1, Section 2 of Republic Act No.

4860, As Amended”, unless the GOP and the foreign

4 Section 2, Rule I, Revised IRR, RA 9184. 5 Section 4.4, Revised IRR, RA 1984.

9

grantor/foreign or international financing institution agree

otherwise.

b) Acquisition of real property which shall be governed by RA

8974, entitled “An Act to Facilitate the Acquisition of

Right-of-Way Site or Location for National Government

Infrastructure Projects and for Other Purposes,” and

other applicable laws.

c) Public-Private sector infrastructure or development

projects and other procurement covered by RA 6957, as

amended by RA 7718, entitled “An Act Authorizing the

Financing, Construction, Operation and Maintenance of

Infrastructure Projects by the Private Sector; and for

Other Purposes,” as amended: Provided, however, That

for the portions financed by the GOP regardless of source

of funds, whether local or foreign, the provisions of the

IRR shall apply.

“Mixed procurements”

A “mixed procurement” is a procurement which is a combination

of procurement of goods, infrastructure projects and services.

Said procurements may be considered as procurement of goods,

infrastructure projects, or services depending on the nature of the

procurement. The Procuring Entity shall be in the best position to

determine the correct classification of its procurement activities,

whether goods, infrastructure projects or services ( GPPB Non-

Policy Matter No. 004-2014, dated 10 March 2014).

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IV. BUDGET PREPARATION AND PROCUREMENT PLANNING

The following end-user units of the NWPC shall plan out all its

procurements and list them down in their respective Project

Procurement Management Plan (PPMP):

The different PPMPs shall be submitted to the Administrative

Division for consolidation and review. PPMPs shall be evaluated to

determine that only those necessary in the official discharge of

OED DED/DED

Policy Research

Service

Technical Services

Management

Support Services

Submission by the end-user units of their respective PPMPs to BUDGET

OFFICE for evaluation and inclusion in the NWPC’s BUDGET PROPOSAL

CONSOLIDATION by the BAC Secretariat of the

different PPMPs into a proposed APP

BUDGET PROPOSAL is approved by the Executive Director

WPRD PPRD PID TTSD AD FMD RALD

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government functions shall be included in the Annual

Procurement Plan (APP). With regard to the procurement of office

supplies, the prior year consumption shall be considered. The

proposed APP shall then be submitted to the Budget Unit for

further evaluation of what should be included in the procuring

entity’s budget proposal to be approved by the Executive

Director.

Budget preparation should be done a year before the intended

year when the projects and activities will be carried out.

(Example: the PPMP and APP for 2015 should be prepared in

2014)

When the General Appropriations Act (GAA) becomes final, the

different end-user units shall revise and adjust the PPMP to

reflect the budgetary allocation for the respective projects and

activities.6

6 Section 7.3.5, Revised IRR, RA 9184.

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Wage Policy and

Research Division

Productivity Policy

and Research Division

APPROVAL by the Executive Director of the APP

UPDATING OF APP by the BAC at least every 6 months.

In case of additional procurements, issuance of a SUPPLEMENTAL APP

containing the amended portion of the APP, to be approved by Executive

Director

Planning and

Information Division REVISION of PPMPs by the END-USER

UNITS

CONSOLIDATION by the BAC Secretariat (Admin

Division) of the different final PPMPs into a APP

OED DED/DED

Technical Services

Policy Research

Service

Management

Support Services

PID TTSD AD FMD RALD PPRD WPRD

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Remember, procurements should always be carried out in

accordance with what is indicated in the PPMP, and accordingly in

the APP. Thus, in view of the requirement that no government

procurement shall be undertaken unless it is in accordance with

an approved APP7, the NWPC is mandated to update the

individual PPMPs, and correspondingly, the APP at least every 6

months or as often as may be required. It is the end-user units’

responsibility to update their respective PPMPs, while it is the

BAC Secretariat’s (Admin Division) responsibility to update the

APP accordingly.8

The ABC as reflected in the APP and PPMP should also be

consistent with the appropriations for the project authorized in

the GAA, continuing, and automatic appropriations.

NOTE: In preparing the APP, the BAC shall indicate the mode of

procurement (i.e. Public bidding or any of the alternative

methods of procurement) to be used and shall execute the same

accordingly. The APP shall indicate the timelines from which the

procurement activity shall be carried out starting from the

posting of the Invitation to Bid all the way to the

Implementation of the contract.

7 Government Procurement Policy Board (GPPB) Non-Policy Matter Opinion No. 137-2004. 8 Section 7.4, Revised IRR, RA 9184.

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V. PROCUREMENT GROUPS:

a) Bids and Awards Committee (BAC)

b) Bids and Awards Committee Secretariat (BSC Secretariat)

c) Technical Working Group (TWG)

d) Observers

a) Bids and Awards Committee (BAC) -

The Executive Director shall designate to the BAC at least five (5)

but not more than seven (7) members of unquestionable integrity

and procurement proficiency. The members shall serve for a

period of one (1) year. In no case shall the Head of the Procuring

Entity and/or the approving authority be the Chairman or a

member of the BAC.9

The regular members are as follows:

(1) Chairperson, who is at least a third ranking permanent official

of the NWPC;

(2) An officer who is at least a 5th ranking permanent official, with

knowledge , experience and/or expertise in procurement who, to

the extent possible, represents the legal or administrative area of

the NWPC.

9 Section 11.2.5, Rule V, Revised IRR, R.A. 9184.

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(3) An officer who is at least a 5th ranking permanent official with

knowledge, experience and /or expertise in procurement who, to

the extent possible, represents the finance area of the NWPC.

NOTE: The Vice-chairperson shall be a regular member. The term

'permanent' shall refer to plantilla positions within the

procuring entity.10

The provisional members are as follows:

(4) An officer who has technical expertise relevant to the

procurement at hand (i.e. Procurement of goods, consulting

services or infrastructure projects), and to the extent possible, has

knowledge, experience, and expertise in procurement.

(5) A representative from the end-user unit.

NOTE: A majority of the total BAC composition shall constitute a

quorum for the transaction of business, provided that the

presence of the Chairperson or Vice-Chairperson shall be

required.11 The Chairperson, or in his absence, the Vice-

Chairperson, shall preside at all meetings of the BAC. The

decision of at least a majority of those present at a meeting

where there is a quorum shall be valid and binding as an act of

the BAC provided that the Chairperson or, in his absence, the

Vice-Chairperson , shall vote only in case of a tie.12

10 Section 11.2.2 (last paragraph), Rule V, Revised IRR, R.A. 9184. 11 Section 12.3, Rule V, Revised IRR, R.A. 9184. 12 Section 12.4, Rule V, Revised IRR, R.A. 9184.

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The BAC shall have the following functions:

a) advertise and/or post the invitation to bid/request for

expressions of interest;

b) conduct pre-procurement and pre-bid conferences;

c) determine the eligibility of prospective bidders;

d) receive bids;

e) conduct of bid evaluation;

f) undertake post-qualification;

g) resolve motions for reconsideration;

h) recommend award of contracts to the Head of the Procuring

Entity (Executive Director) or duly authorized representative;

i) recommend imposition of sanctions;

j) recommend use of alternative methods of procurement.

k) perform other necessary related functions including the

creation of the Technical Working Group.

b) Bids and Awards Committee Secretariat (BAC Secretariat)

BAC Secretariat shall be created by the Head of the Procuring

Entity which will serve as the main support unit of the NWPC BAC;

the Administrative Division is always designated as BAC

Secretariat. Its functions are as follows:

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(1) Provide administrative support;

(2) Organize and make all necessary arrangements for BAC

meetings and conferences;

(3) Prepare minutes of the meetings and resolutions;

(4) Take custody of procurement documents and other records;

(5) Manage the sale and distribution of bidding documents to

interested parties;

(6) Advertise and/or post bidding opportunities, including bidding

documents and notices of awards;

(7) Assist in managing the procurement processes;

(8) Monitor procurement activities and milestones for proper

reporting to relevant agencies when required.

(9) Consolidate PPMPs from various units of the procuring entity

to make available for review;

(10) Act as the central channel of communications for the BAC

with end users, PMOs, other units of the line agency, other

government agencies, providers of goods, infrastructure projects,

and consulting services, observers, and the general public.

NOTE: The head of the Secretariat in the NWPC shall be at least a

5th ranking permanent employee or, if not available, a

permanent official of the next lower rank.13

13 Section 14.2, Rule V, Revised IRR, R.A. 9184.

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c) Technical Working Group (TWG)-

Then TWG shall be created by the BAC to assist in the

procurement process, particularly in the eligibility screening,

evaluation of bids, and post-qualification.14

d) Observers-

Qualified observers, who shall be invited in all stages of the

procurement process, at least three (3) calendar days before the

date of the procurement stage/activity to sit in the proceedings,

shall consist of the following:

1) Representative from COA

2) At least one (1) representative from a duly recognized

private group in a sector or discipline relevant to the

procurement at hand:

a) For infrastructure projects, national associations of

constructors duly recognized by the Construction

Industry Authority of the Philippines (CIAP):

i. Philippine Constructors Association

ii. National Constructors Association of the

Philippines, Inc.

iii. Philippine Institute of Civil Engineers (PICE).

b) For goods, a specific relevant chamber-member of the

Philippine Chamber of Commerce and Industry.

14 Section 12.1, Rule V, Revised IRR, R.A. 9184.

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c) For consulting services, a project-related professional

organization accredited or duly recognized by the

Professional Regulation Commission or the Supreme

Court:

i. PICE

ii. Philippine Institute of Certified Public Accountants

(PICPA)

iii. Confederation of Filipino Consulting Organizations

3) At least another representative from a non-government

organization (NGO)

Qualifications of an Observer:

1) The observer shall come from an organization duly

registered with the SEC or CDA;

2) The observers should meet the following criteria:

a) Have knowledge, experience or expertise in

procurement or in the subject matter to be bid;

b) Absence of actual or potential conflict of interest in the

contract to be bid

c) Any other relevant criteria may be determined by the

BAC.

Responsibilities of Observers:

1) To prepare the report either jointly or separately

indicating their observations made on the procurement

activities conducted by the BAC for submission to the

Executive Director, copy furnished the BAC Chairperson.

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2) To submit their report to the NWPC and furnish a copy to

the GPPB and Office of the Ombudsman/Resident

Ombudsman. If no report is submitted by the observer,

then it is understood that the bidding activity conducted

by the BAC followed the correct procedure.

3) To immediately inhibit and notify in writing the NWPC of

any actual or potential interest in the contract to be bid.

Documents to which Observers are Allowed Access to:

Observers shall be allowed access to the following documents

upon request subject to signing of a confidentiality agreement:

1) Minutes of the BAC meetings

2) Abstract of Bids

3) Post-qualification Summary Report

4) APP and related PPMP

5) Opened Proposals

Observers not entitled to honoraria

To ensure independence “observers should not be granted

honoraria by the procuring entity for its participation in

the procurement process.” (GPPB Non-Policy Matter

Opinion No. 11-2005, dated 10 February 2005)

Non-attendance of the observers

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Absence of observers will not nullify the BAC proceedings,

provided that they have been duly notified in writing.15

Observers are required to be invited during the post-

qualification stage of the Bidding Process

Observers shall be invited in all stages of the procurement

stage, which shall include the post-qualification stage of a

bidding process.16

15 Section 13.3, Revised IRR, R.A. 9184. 16 Section 13.1, Revised IRR, R.A. 9184.

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VI.PROCUREMENT PROCEDURE FLOW CHART

PPMPs consolidated into

APP

Issuance of Purchase Request corresponding

to Procurements reflected in the APP

Procurement Process (Follow Procurement Mode indicated in the APP): Either COMPETITIVE BIDDING or any of the ALTERNATIVE

MODES OF PROCUREMENT (Public Bidding or

Alternative Method of

Procurement)

NOTICE OF AWARD issued to the

winning Bidder/Supplier

Issuance of CONTRACT/PURCHASE/JOB ORDER

Delivery/Inspection/Acceptance

PAYMENT

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VII. PROCUREMENT MODES

Competitive Bidding

Alternative Methods

Limited Source Bidding or Selective Bidding

Direct Contracting or Single Source Procurement

Repeat Order

Shopping

Negotiated Procurement

VIII. PROCUREMENT MODE: Competitive Bidding

All procurement shall be done through Competitive Bidding,

except as provided for in Article XVI (Alternative Methods) of R.A.

9184.

STEPS in conducting procurement through Competitive

Bidding

STEP 1: Preparation of Bidding Documents

STEP 3: Pre-bid Conference

STEP 4: Submission and Receipt of Bids

STEP 5: Opening of Bids /Evaluation of Bids

STEP 6: Post-qualification

STEP 7: Award of the Contract

STEP 2: Advertisement of the Invitation to Bid

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STEP 1: PREPARATION OF BIDDING DOCUMENTS

1) BAC Secretariat shall prepare the Bidding

Documents in cooperation with the End-User

concerned, who shall provide the technical

specifications for the goods/service to be procured.

The Documents shall be in accordance with the

standard forms prescribed by the Government

Procurement Policy Board (GPPB).

2) The Bidding Documents shall include the

following:

Approved Budget for the contract

Invitation to Bid/Request for Expression of

Interest

Eligibility Requirements

Instructions to Bidders

Terms of Reference (TOR) for consulting

services

Scope of work, where applicable

Plans/Drawing and Technical Specifications

Form of Bid, Price Form and List Goods or

Bill of Quantities

Delivery Time or Completion Schedule

Form, Amount and Validity Period of Bid

Security

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Form, Amount and Validity of Performance

Security and Warranty

Form of Contract and General and Special

Conditions of Contract

3) A PRE-PROCUREMENT CONFERENCE shall be

conducted in order to ensure that the Bidding

Documents and Invitation to Bid is well in order and is

conducted prior to the posting of the Bidding

Documents and Invitation to Bid. The pre-procurement

conference may not be required for small

procurements where the ABC is 2 Million and below

(for procurement of goods), 5 Million and below (for

procurement of infrastructure projects) and 1 Million

and below (for consulting services).17

STEP 2: ADVERTISEMENT OF THE INVITATION TO BID

1) The invitation shall provide prospective bidders

the following information:

For the procurement of:

Goods, the name of the contract to be

bid and a brief description of the goods

to be procured

Infrastructure projects, the name and

location of the contract to be bid, the

project background and other relevant

information;

17 Section 20, Revised IRR, R.A. 9184.

26

Consulting services, the name of the

contract to be bid, a general description

of the project and other relevant

information;

A general statement on the criteria to be used

by the Procuring Entity;

The date, time and place of the deadline for the

submission and receipt of the eligibility

requirements, the pre-bid conference if any,

the submission and receipt of bids and the

opening of bids;

ABC to be bid;

The source of funding;

The period and place of availability of the

Bidding Documents;

The contract duration or delivery schedule;

The name, telephone number, address (fax, e-

mail and website), and designated contact

person of the Procuring Entity; and

Other relevant information

2) The Invitation to Bid shall be posted by the BAC

Secretariat in accordance with the scheduled timelines

indicated in the APP.

3) The Invitation to Bid shall be posted in the

following:

(a) At least once in one (1) newspaper of general

nationwide circulation which should be regularly

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published for at least two (2) years before the date

of issue of the advertisement;

(b) Posted continuously in the PhilGEPS website, the

website of the NWPC for seven (7) calendar days

starting from the day of advertisement.

(c) Posted at any conspicuous place reserved for this

purpose in the premises of the NWPC for seven (7)

calendar days.

Advertisement in a newspaper of general

nationwide circulation shall no longer be

necessary18 in the following:

i. For procurement of goods where the ABC is 2

Million pesos and below;

ii. For procurement of infrastructure projects where

the ABC is 5 Million pesos and below;

iii. For procurement of consulting services, where the

duration is 4 months or less or 1 Million and

below.

4) The hard copy of the Bidding Documents should

be made available as of first posting until deadline for

submission and receipt of bids. Also, the soft copy

should be made available at the NWPC website and

PhilGEPS website as of first posting.

18 Section 21.2.2. Revised IRR, R.A. 9184.

28

The BAC is mandated to post all its bidding documents

on both its website and the PhilGEPS. (GPPB NPM 14-

2010, dated 21 May 2010)

5) The bidders may be asked to pay for the Bidding

Documents to recover the cost of its preparation and

development.

The cost of the bidding documents shall correspond to

the ABC ratings as indicated in GPPB Resolution No.

04-201219 (Guidelines of the Sale of Bidding

Documents):

ABC Maximum Cost of Bidding Documents

500,000 and below P500.00

More than 500,000 up to 1 Million

P1,000.00

More than 1 Million up to 5 Million

P5,000.00

More than 5 Million up to 10 Million

P10,000.00

More than 10 Million up to 50 Million

P25,000.00

More than 50 Million up to 500 Million

P50,000.00

More than 500 Million P75,000

19 Took effect on 20 August 2012.

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STEP 3: PRE-BID CONFERENCE

1) Pre-bid conference shall be required in

procurements where the ABC is 1 Million or more. For

contracts with an approved budget of less than 1

Million, pre-bid conference may be conducted at the

discretion of the BAC.

2) It shall be conducted by the BAC as scheduled in

the Invitation to Bid which should be at least twelve

(12) calendar days before the scheduled deadline for

submission and receipt of bids. If the Procuring Entity

determines that, by reason of the method, nature or

complexity of the contract to be bid or when

international participation will be more advantageous

to the GOP, a longer period for the preparation of bids

is necessary, the pre-bid conference shall be held at

least thirty (30) calendar days before the deadline for

the submission and receipt of bids20.

3) The pre-bid conference shall discuss the eligibility

requirements and the technical and financial

components of the contract to be bid. Attendance of

the bidders shall not be made mandatory.21

4) BAC Secretariat shall prepare the Minutes of the

Pre-bid Conference and should be made available to

all the participants not later than three (3) calendar

days after the pre-bid conference.

20 Section 22.2, Rule VII, Revised IRR, R.A. 9184. 21 Section 22.3, Rule VII, Revised IRR, R.A. 9184.

30

5) Likewise, any statement made during the pre-bid

conference shall not modify the terms of the Bidding

Documents, unless such statement is specifically

identified in writing as an amendment and issued in a

Supplement/Bid Bulletin.

STEP 4: SUBMISSION AND RECEIPT OF BIDS

1) Eligible Participants:22

(a) Duly licensed Filipino citizens/sole proprietorship;

(b) Partnerships duly organized under the laws of the

Philippines and of which at least 60% of the interest

belongs to citizens of the Philippines (for procurement

of goods and consulting services) or at least 75% of the

interest belongs to citizens of the Philippines in the

case of procurement of infrastructure projects;

(c) Corporations duly organized under the laws of the

Philippines of which at least 60% of the outstanding

capital stock belongs to Filipino citizens (for

procurement of goods and consulting services), or at

least 75% Filipino owned (procurement of

infrastructure projects)

(d) Cooperatives duly organized under the laws of the

Philippines of which at least 60% belongs to Filipinos

(for procurement of goods and consulting services), or

at least 75% belongs to Filipinos (procurement of

infrastructure projects)

22 Sections 23.5 and 24.3, Rule VIII, Revised IRR, R.A. 9184

31

(e) Persons/entities forming themselves into a joint

venture, the ownership of which shall be 60% Filipino

for procurement of goods/consulting services or 75%

for infrastructure.

2) Foreign bidder may be eligible to participate in a

public bidding in any of the following circumstances:

a) When provided for under a Treaty or International

Agreement

b) When the foreign supplier is a citizen, corporation,

cooperation or association of a country, the laws or

regulations of which grant reciprocal rights to Filipinos.

c) When the goods sought to be procured are not

available from the local supplier.

d) When there is a need to prevent situations that defeat

competition or restraint of trade.

3) A bidder’s bid shall consist of two (2) envelopes,

namely the Technical Component of the Bid including the

eligibility requirements under Section 23.1 of the IRR (1st

Envelope)23; and the Financial Component of the Bid (2nd

Envelope).

4) The Technical Component shall contain the

following documents:

Legal Documents (Mayor’s Permit, Registration

Certificate, Tax Clearance) 23 Section 25.2, Rule VIII, Revised IRR, R.A. 9184.

32

Technical Documents (Statement of all on-going

government and private contracts and one (1)

completed contract complying with the “Single

Largest Completed Contract Rule, PCAB License

and Registration for procurement of Infrastructure

Projects.

Bid Security shall be returned only after the

bidder with the Lowest Calculated Responsive Bid

has signed the contract and furnished the

performance security except to those declared by

the BAC as failed or post-disqualified (Section

27.4, Rule VIII, IRR). In no case shall bid security be

returned later than the expiration of the bid

validity period (Section 27.6, Rule VIII, IRR).

Technical Specifications

Sworn statement by the prospective bidder as to

the following:

It is not blacklisted;

The documents submitted are authentic

copies of the original with the information

provided therein being true and correct;

It is authorizing the Procuring Entity to

verify all the documents;

Signatory is duly authorized with notarized

Secretary’s Certificate attesting to such

fact if bidder is a corporation, partnership,

cooperative or joint venture;

It complies with the disclosure provision

under Section 47 of the Act;

33

It complies with the responsibilities of a

prospective bidder;

It complies with existing labor laws and

standards;

It did not give or pay any amount to any

personnel of the government in relation to

the procurement activity.

5) Financial Component of the Bid shall contain the

Audit Financial Statements stamped “received” by the BIR

and the Net Financial Contracting Capacity or NFCC.24

6) Credit Line Commitment is not an available

option, as a financial eligibility document, for the bidder.

Thus, the bidder is required to submit an Audited Financial

Statement and a net financial Contracting Capacity.25

7) The Bid Validity Period cannot exceed 120 days

counted from the opening of bids.26 Should it become

necessary to extend the validity of the bids and bid

securities beyond 120 calendar days, the procuring entity

shall request in writing all those who submitted bid for

such extension before the expiration date thereof.

Bidders, however, shall have the right to refuse to grant

such extension without forfeiting their bid security.27

8) Forms of Bid Security

24 Section 23, Rule VIII, Revised IRR, R.A. 9184. 25 GPPB Resolution No. 20-2013, took effect on 12 March 2014. 26 Section 28.1, Rule VIII, Revised IRR, R.A. 9184. 27 Section 28.2, Rule VIII, Revised IRR, R.A. 9184.

34

Form of Bid Security Amount to be paid

Cash/Cashier’s Manager’s Check 2% of the ABC

Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided, however, that it shall be confirmed or authenticated by a Universal or Commercial Bank, if issued by a foreign bank

2% of ABC

Surety Bond callable upon demand by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.

5% of ABC

Any combination of the foregoing

Proportionate to share of form with respect to total amount of security

A bidder can modify its bid provided that this is done before the

deadline for submission and receipt of bids. When the bidder

modifies its bid, it is not allowed to retrieve its original bid, but

shall only be allowed to send another bid equally sealed, properly

identified, linked to its original bid and marked as “modification”.

Bid modifications received after the applicable deadline for

submission and receipt of bids shall not be considered and shall

be returned to the bidder unopened.28

28 Section 26.1, Rule VIII, Revised IRR, R.A. 9184.

35

STEP 5: OPENING OF BIDS/EVALUTATION OF BIDS

1) The BAC shall open the bids immediately after the

deadline for the submission and receipt of bids.

2) The Technical Component shall be opened first.

3) The BAC, through the BAC Secretariat shall check

the documents in the Technical Component and shall

determine whether the documents are present using

the “pass-fail” criterion.

4) Bidders who have a complete set of documents

present in the Technical Component shall be

considered “PASSED”.

5) Only those bidders who are considered “PASSED”

shall proceed with the opening of the Financial

Component.

6) In the opening of the Financial Component, the

bidders’ Financial Offer shall be evaluated and the BAC

shall determine whether or not the computation

leading to the bid price is accurate. Only bids that are

determined to contain all the bid requirements for

both components shall be rated “passed” and shall be

considered for evaluation and comparison.

36

7) The bidder with a bid price higher than the ABC

shall be automatically disqualified. Once the Financial

Offers are evaluated, the BAC shall rank the bidders

based on their evaluated bid price, from the lowest

calculated bid to the highest calculated bid.

In the event of a tie breaker amongst the lowest

evaluated bid prices, the bidders with the lowest

evaluated bid prices are to all undergo post-

qualification. In the event that more than one bidder is

post-qualified, the bidders are to undergo a non-

discretionary process based on sheer luck, in order to

determine the winning bidder.

The Procuring Entity is advised at the onset, to

prescribe in its Bidding Documents the method of

breaking the tie. In the event that there is no

prescribed method mentioned in the Bidding

Documents, the bidders shall have to agree to a

method of breaking the tie. 29

8) The BAC Secretariat shall prepare the Abstract of

Bids which shall contain the following:

Name of the contract and its location, if

applicable

Time, date, and place of bid opening

29 GPPB Circular No. 06-2005, dated 5 August 2005.

37

Names of bidders and their corresponding

calculated bid prices arranged from lowest to

highest, the amount of bid security and the name

of issuing entity.

STEP 6: POST QUALIFICATION

1) The Lowest Calculated Bid/Highest Rated Bid shall

undergo post-qualification in order to determine

whether the bidder concerned complies with and is

responsive to all the requirements and conditions

as specified in the Bidding Documents.

2) The BAC Secretariat shall notify the bidder with

the Lowest Calculated Bid/Highest Rated Bid that it

shall be subject to post-qualification and shall be

required to submit the following post-qualification

documents within three (3) calendar days from

receipt:30

(a) Latest Income tax returns and business tax

returns;

(b) Certificate of PhilGEPS registration;

(c) Other licenses and permits required by law and

stated in the Bidding Documents

Failure to submit the above requirements on time

or a finding against the veracity of such shall be

30 Section 34.2, Rule X, Revised IRR, R.A. 9184.

38

ground for the forfeiture of the bid security and

disqualify the bidder for award.

3) The post-qualification shall verify, validate, and

ascertain all statements made and documents

submitted by the bidder with the Lowest Calculated

Bid/Highest Rated Bid, using non-discretionary criteria,

as stated in the Bidding Documents.

4) If it is determined that the bidder passes all the

criteria for post-qualification, the BAC shall declare the

said bid as the LOWEST CALCULATED RESPONSIVE BID

(LCRB)/Highest Rated Responsive Bid, and recommend

to the Head of the Procuring Entity, through a BAC

Resolution, the award of the contract.

5) If it is determined, however, that the bidder with

the Lowest Calculated Bid fails the criteria, the BAC

shall immediately notify the said bidder in writing of its

post-disqualification and the grounds for it.

Immediately thereafter, the notwithstanding any

pending request for reconsideration, the BAC shall

initiate and complete the same post-qualification

process on the bidder with the second Lowest

Calculated Bid/Highest Rated Responsive Bid.

6) If the second lowest calculated bidder fails to

post-qualify, the procedure is repeated for the bidder

next lower and so on until a bidder is post-qualified.

39

7) The post-qualification process shall be completed

in not more than seven (7) calendar days from the

determination of the lowest calculated bid. The post-

qualification stage may be extended but in no case

shall the aggregate period exceed 30 calendar days.31

8) Failure of Bidding. The BAC shall declare the

bidding a failure when:

No Bids are received;

All prospective bidders are declared

ineligible;

All bids fail to comply with all the bid

requirements or fail post-qualification or in the

case of consulting services, there is no

successful negotiation; or

The bidder with the Lowest Calculated

Responsive Bid/Highest Rated Responsive Bid

refuses, without justifiable cause, to accept

the award of contract and no award is made in

accordance with Section 40 of the Act and the

IRR.

31 Section 34.8, Rule X, Revised IRR, R.A. 9184.

40

STEP 7: AWARD OF THE CONTRACT

1) The BAC shall recommend to the Head of the

Procuring Entity the award of the contract to the

bidder with the Lowest Calculated Responsive

Bid/Highest Rated Responsive Bid.

2) In facilitating the award of the contract, the BAC

shall submit the following:

(a) Resolution of the BAC recommending award;

(b) Abstract of Bids

(c) Duly approved program of work or delivery

schedule, and Cost estimates;

(d) Document issued by appropriate entity

authorizing the Procuring Entity to incur

obligations for a specified amount

(e) Other pertinent documents required by

existing laws, rules and/or procuring entities

concerned.

3) Within seven (7) calendar days from receipt of the

recommendation of the BAC, the Head of the

Procuring Entity shall either approve or disapprove the

recommendation. Within the prescribed period, the

BAC shall notify all losing bidders.32

32 Section 37.1.2, Rule XI, Revised IRR, R.A. 9184.

41

4) In case of approval, the Head of the Procuring Entity

shall immediately issue the Notice of Award (NOA) to

the bidder with the Lowest Calculated Responsive Bid.

In case of disapproval, such disapproval shall be based

only on valid, reasonable, and justifiable grounds to be

expressed in writing. The NOA shall be posted within

three (3) calendar days in the PhilGEPS website,

website of the Procuring Entity, and conspicuous

places within the premises of the Procuring Entity.

5) Aside from the NOA, the bidder recommended for

award is required to comply with the following:

Submission of a valid Joint venture agreement,

in case the bidder consist of a group of entities

which signified their intention to enter into a

joint venture once identified as the winning

bidder;

Posting of a performance security

Signing of the contract within ten (10) days

from receipt by the bidder of the NOA.

Approval by higher authority as provided in

Section 37.3 of the IRR

6) Documents forming part of the contract

Contract Agreement

Bidding Documents

42

Winning bidder’s bid, including the Eligibility

requirements, Technical and Financial Proposals,

and all other documents/statements submitted;

Performance Security

Credit Line

Notice of Award of the Contract

Other contract documents that may be required

by existing laws and/or the NWPC

7) Notice to Proceed

Where applicable, the procuring entity shall issue the

Notice to Proceed together with a copy of the

approved contract to the successful bidder within

three (3) calendar days from the date of the approval

of the contract by the appropriate government

approving authority.

8) Performance Security is a security to guarantee

faithful performance by the winning bidder of its

obligations under the contract in accordance with the

Bidding Documents.

Forms of Performance Security:

Forms Amount

Cash or Cashier’s or Manager’s Check

5% (Goods) 10% (Infrastructure Projects)

Bank draft/guarantee or 5% (Goods) 10%

43

irrevocable letter of credit issued by a Universal or Commercial Bank; provided, however, that it shall be confirmed or authenticated by a universal or commercial bank, if issued by a foreign bank

(Infrastructure Projects)

Surety bond callable upon demand issued by a surety or insurance company duly certified by the insurance commission as authorized to issue such security.

30%

Any combination of the foregoing

Proportionate to share of form with respect to total amount of security

9) The performance security shall be valid until the

issuance by the Procuring Entity of a Certificate of

Acceptance.

10) Reservation Clause.

The Head of the Procuring Entity reserves the right to

reject any and all bids, declare a failure of bidding or

not to award the contract in the following situations:

a) There is prima facie evidence of collusion between

appropriate public officers or employees of the

Procuring Entity.

44

b) The BAC is found to have failed in following the

prescribed bidding procedures.

c) For any justifiable and reasonable ground, where the

award of the contract will not redound to the benefit

of the GOP, as follows:

i. If the physical and economic conditions

have significantly changed so as to

render the project no longer

economically, financially, or technically

feasible, as determined by the Head of

the Procuring Entity;

ii. If the project is no long necessary as

determined by the Head of the

Procuring Entity; and

iii. If the source of funds for the project

has been withheld or reduced through

no fault of the Procuring Entity.

45

IX. PROTEST MECHANISM33

Decisions of the BAC at any stage of the procurement process

may be questioned by filing a request for reconsideration within

three (3) calendar days upon receipt of the written notice or

upon verbal notification.

The BAC shall decide on the request for reconsideration within

seven (7) calendar days.

In the event that the request for reconsideration is denied, the

bidder can file within seven (7) calendar days, a PROTEST in the

form of a verified position paper, accompanied by a non-

refundable PROTEST FEE.

Protest fee

ABC Range Protest Fee Cost

50 Million pesos and below

0.75% of the ABC

More than 50 Million pesos to 100 Million pesos

P500,000

More than 100 Million pesos to 500 Million pesos

0.5% of the ABC

More than 500 Million pesos to 1 Billion pesos

P2,500,000

More than 1 Billion pesos to 2 Billion pesos

0.25% of the ABC

More than 2 Billion P5,000,000.00

33 Section 55, Rule XVII, Revised IRR, RA 9184.

46

pesos to 5 Billion pesos

More than 5 Billion pesos

0.1% of the ABC

47

X.PROCUREMENT MODE: Alternative Methods of Procurement

When justified by the conditions, these methods are resorted to

in order to promote economy and efficiency. However, they are

subject to the prior approval of the Head of Procuring Entity. The

Procuring Entity shall ensure that the most advantageous price for

the Government is obtained.

(1) Limited Source Bidding

(2) Direct Contracting*

(3) Repeat Order*

(4) Shopping*

(5) Negotiated Procurement:

Two Failed Bidding*

Emergency Cases*

Take Over of Contracts

Adjacent or Contiguous

Agency-to-Agency

Procurement Agent

Highly Technical Consultants*

Defense Cooperation Agreement

Small Value Procurement*

Lease of Real Property*

NGO Participation

Community Participation

United Nations Agencies

48

*Commonly used kinds of Negotiated Procurement

LIMITED SOURCE BIDDING OR SELECTIVE BIDDING

1) This involves direct invitation to bid by the Procuring

Entity from the list of pre-selected suppliers or consultants

with known experience and proven capability on the

requirements of the particular contract. This may be

employed under any of the following:

Procurement of highly specialized goods (example

– sophisticated defense equipment, complex air

navigation systems, coal) and consulting services

where only a few suppliers or consultants are

known to be available, such that resorting to the

public bidding method will not likely result in any

additional suppliers or consultants; or

Procurement of major plant components where it

is deemed advantageous to limit the bidding to

known qualified bidders.

2) The pre-selected suppliers or consultants shall be those

appearing in a list maintained by the relevant government

authority that has expertise in the type of procurement

concerned.

3) The pre-selection shall be based upon the capability and

resources of the bidders to perform the contract.

49

4) The BAC shall directly invite all the suppliers or

consultants appearing in the pre-selected list.

5) All other procedures for competitive bidding shall be

undertaken except for the advertisement of Invitation to

Bid/Request for Expression of Interest under Section

21.2.1 of the IRR.

DIRECT CONTRACTING OR SINGLE SOURCE PROCUREMENT

1) It does not require elaborate Bidding Documents. The

supplier is simply asked to submit a price quotation or a

pro-forma invoice together with the conditions of sale. The

offer may be accepted immediately or after some

negotiations. This may be resorted to by concerned

Procuring Entity under any of the following conditions:

Procurement of goods of propriety nature which

can be obtained only from the propriety source, i.e.

when patents, trade secrets, and copyrights

prohibit others from manufacturing the same item;

When the procurement of critical components

from a specific supplier is a condition precedent to

hold a contractor to guarantee its project

performance, in accordance with the provisions of

its contract; or

50

Those sold by an exclusive dealer or manufacturer

which does not have sub-dealers selling at lower

prices.

REPEAT ORDER

1) This is procurement of goods from the previous winning

bidder, whenever there is a need to replenish goods

procured under a contract previously awarded through

Competitive Bidding. It shall be subject to the following

conditions:

Unit prices of the repeat order must be the same as

or lower than those in the original contract,

provided that such prices are still the most

advantageous to the GOP after price verification;

It will not result in splitting of contracts,

requisitions, or purchase orders, as provided for in

Section 54.1 of this IRR;

Except in cases duly approved by the GPPB, it shall

be availed of only within six (6) months from the

contract effectivity date stated in the Notice to

Proceed arising from the original contract;

It shall not exceed twenty-five percent (25%) of the

quantity of each item in the original contract.

51

SHOPPING

1) This involves request by the Procuring Entity for the

submission of price quotations for readily available off-

the-shelf goods or ordinary/regular equipment to be

procured directly from suppliers of known qualifications.

This shall be employed in any of the following cases:

When there is an unforeseen contingency

requiring immediate purchase: Provided, however,

That the amount shall not exceed the thresholds

prescribed;

Procurement of ordinary or regular office supplies

and equipment not available in the Procurement

Service involving an amount not exceeding the

thresholds prescribed.34

2) The phrase “ordinary or regular office supplies” shall be

understood to include those supplies, commodities, or

materials which, depending on the Procuring Entity’s

mandate and nature of operations, are necessary in the

transaction of its official businesses, and consumed in the

day-to-day operations of said Procuring Entity. Office

supplies shall not include services such as repair and

maintenance of equipment and furniture, as well as

trucking, hauling, janitorial, security, and related or

analogous services.

34 Section 52.1.b, Rule XVI, Revised IRR, R.A. 9184.

52

3) At least three (3) price quotations from bona fide

suppliers shall be obtained for procurement of office

supplies under Section 52.1.b of the Revised IRR.

NEGOTIATED PROCUREMENT

1) This involves direct negotiation of a contract with a

technically, legally, and financially capable supplier,

contractor, or consultant in any of the following cases:

Two Failed Biddings. Where there has been failure

of public bidding for the second time.

Emergency Cases. In case of imminent danger to

life or property during a state of calamity, or when

time is of the essence arising from natural or man-

made calamities or other causes where immediate

action is necessary to prevent damage to or loss of

life or property, or to restore vital public services,

infrastructure facilities and other public utilities.

Take-Over of Contracts. Take-over of contracts,

which have been rescinded or terminated for

causes provided for in the contract and existing

laws, where immediate action is necessary to

prevent damage to or loss of life or property, or to

restore vital public services, infrastructure facilities

and other public utilities.

53

Adjacent or Contiguous. Where the subject

contract is adjacent or contiguous to an on-going

Infrastructure Project or Consulting Service where

the consultants have unique experience and

expertise to deliver the required service.

Agency-to-Agency. Procurement of infrastructure

projects, consulting services, and goods from

another agency of the GOP, such as the PS-DBM,

which is tasked with a centralized procurement of

Common-Use Supplies for the GOP.

Procurement Agent. In order to hasten project

implementation, Procuring Entities which may not

have the proficiency or capability to undertake a

particular procurement, as determined by the

Head of the Procuring Entity concerned, may

request other GOP agencies to undertake such

procurement for them, or at their option, recruit

and hire consultants or procurement agents to

assist them directly and/or train their staff in the

management of the procurement function.

Highly Technical Consultants. This is the case of

individual consultants hired to do work that is (i)

highly technical or proprietary; or (ii) primarily

confidential or policy determining, where trust and

confidence are the primary consideration for the

hiring of the consultant: Provided, however, that

the term of the individual consultants shall, at the

54

most, be on a six month basis, renewable at the

option of the appointing Head of the Procuring

Entity but in no case shall exceed the term of the

latter.

Defense Cooperation Management. Upon prior

approval by the President of the Philippines, and

when the procurement for use by the AFP involves

major defense equipment or materiel and/or

defense-related consultancy services, when the

expertise or capability required is not available

locally, and the Secretary of National Defense has

determined that the interests of the country shall

be protected by negotiating directly with an agency

or instrumentality of another country with which

the Philippines has entered into a defense

cooperation agreement or otherwise maintains

diplomatic relations.

Small Value Procurement. Where the procurement

does not fall under Shopping and the amount

involved does not exceed the thresholds

prescribed.

Lease of Real Property. Lease of privately owned

real property and venue for official use.

NGO Participation. When an appropriation law or

ordinance earmarks an amount to be specifically

contracted out to Non-Governmental

Organizations (NGOs), the Procuring Entity may

55

enter into a Memorandum of Agreement with an

NGO.

Community Participation. Where, in the interest of

project sustainability or to achieve certain specific

social objectives, it is desirable in selected projects,

or its components, to call for participation of local

communities in the delivery of goods, including

non-consulting services, and simple infrastructure

projects.

United Nations Agencies. Procurement from

specialized agencies of the United Nations of any of

the following: (a) small quantities of off-the-shelf

goods, primarily in the fields of education and

health; and (b) specialized products where the

number of suppliers is limited, such as vaccines or

drugs.

TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE METHODS

Splitting of contract is not allowed.

Advertisement and posting as prescribed in Section

21.2.1 of the Revised IRR may be dispensed with:

Provided, that the BAC, through its Secretariat, shall post

the invitation or request for submission of price

quotations for Shopping under Sections 52.1 (b) and

56

Negotiated Procurement under Sections 53.1 (two-failed

biddings), 53.9 (small value procurement); and 53.11 (NGO

Participation) of the IRR in the PhilGEPS website, the

website of the Procuring Entity concerned, if available, and

at any conspicuous place reserved for this purpose in the

premises of the procuring entity for a period of seven (7)

calendar days.

In all instances of alternative methods of procurement,

the BAC, through the Secretariat, shall post, for

information purposes, the Notice of Award in the PhilGEPS

website, the website of the Procuring Entity concerned, if

available, and at any conspicuous place reserved for this

purpose in the premises of the Procuring Entity.