ANTIQUES

An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for the other Purposes, otherwise known as the Government Procurement Reform Act (GPRA) Sec. 1, Rule I, RIRR of R.A. No. 9184.

Approved ------------January 10, 2003Took Effect ------------January 26, 2003

(Republic Act No. 9184)

RA 9184 Implementing Rules and Regulations-A (IRR-A) Approved ------------Sept. 23, 2003 Took Effect ------------Oct. 08, 2003

RA 9184 Revised Implementing Rules and Regulations (IRR) Approved ------------July 22, 2009Published ------------ Aug. 03, 2009 Took Effect ------------Sept. 02, 2009

Enactment of the Government Procurement Reform Act (GPRA) is the result of consolidation of procurement rules and regulations. Creation of the Government Procurement Policy Board (GPPB) due to the lack of standards, inconsistencies in the policies, rules & regulations led to the creation of GPPB. Use of PhilGEPS because of lack of transparency, all government agencies are required to register with the PhilGEPS in order to post invitations to bid and notices. Participation of Civil Society because of lack check and balances, it requires the presence/ participation of civil society.

Features of the Procurement LawSec. 4, Rule 1, RIRR of RA 9184Scope and Application of RA 9184:Reference: NPM 165-2012RA 9184 and its IRR do not cover disposal of government propertiesDisposal of unserviceable equipment and property of all government agencies is covered by EO 888 (s.1983)EO 285 (s. 1987) has identified DPWH as the agency-in-charge with the disposal of government-owned building. In line with this, DPWH, DBM, and DENR issued Joint Circular No. 1, which provides the procedures on demolition of buildings.Disposal and Procurement are two distinct government transactions covered by different rules and regulations.Scope and application:Lease of Government-Owned BuildingReference: NPM 50-2013 Transactions where a government agency leases out its real property for private use, such as in the case of a canteen or food concessionaire are governed by Executive Order 301 particularly section 7 thereof, series of 1987 and its associated guidelines

Implementing Guidelines for Lease of Privately-Owned Real Estate Guidelines will only apply to lease of privately-owned real estate by government agencies for official use. See Appendix 7, Handbook of Phil.Govt Procurement, 6th Ed., 2012

Authority of GPPB (Rule XX of RA 9184 to ensure the proper implementation by procuring entities of the Act, this IRR and all other relevant rules and regulations pertaining to public procurement; to formulate and amend public procurement policies, rules and regulations and amend , whenever necessary, this IRR; etc.Reference: NPM 56-2013 GPPB has no jurisdiction to rule over actual controversies with regard to the conduct of the bidding since it has no quasi-judicial functions under the law.

It is the prerogative and discretion of the procuring entity through its BAC to come up with the declaration since they are in the best position to determine the details of their Project.What is Procurement?Procurement refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), RIRR, R.A. 9184)

Projects involving mixed procurements, the nature of the procurement, i.e., goods, infrastructure projects, or consulting services, shall be determined based on the primary purpose of the contract. Ibid.

Acquisition means the acquiring by contract, with appropriated funds of supplies or services.

Reference: NPM 11-2013 PE is in the best position to determine the correct classification of its procurement based on its identified needs and the best way by which these needs may be addressed, managed, and satisfied.

In case of mixed procurements, its nature can be best determined based on the primary purpose of the contract [S5(aa),RA 9184 IRR]

It is the motivation or intention of the PE in pursuing the project that will determine the primary purpose of a contract.

PE should be guided by the parameters and conditions in the relevant provisions of RA 9184 and its IRR on what should be considered as Goods, Infrastructure Projects or Consulting Services procurement.Procurement encompasses the whole process of acquiring property or services. It begins when an agency has identified a need and decided on its procurement requirement. Procurement continues through the processes of risk assessment, seeking and evaluating alternative solutions, contract award, delivery of and payment for the property or services and, where relevant, the on-going management of a contract and consideration of options related to the contract. (CPG, 2008)

Goods- refer to all items, supplies, materials and general support services (except consulting services and infrastructure projects) 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 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. Sec 5., (r), RIRR of RA 9184.

1. Equipment, furniture, stationery, construction materials, 2. Non-personal or contractual services such as hauling, janitorial, security and related or analogous services - includes lease or purchase of office space, media advertisements, health maintenance services and other services essential to the operation of the Procuring Entity. Nature of Goods

Classified as:Common-use supplies as those goods, materials, and equipment that are repetitively used in the day-to-day operations of procuring entities in the performance of their functions.Inventory items include common-use supplies, goods, materials and equipment that are not in the Price List of the PS-DBM but are regularly used and kept on stock by the procuring Entity. Inventory items that are not common-use supplies may be procured from commercial sources, or suppliers other than the PS-DBM.Non-common use supplies are those goods, materials, and equipment that are neither common-use supplies nor inventory items, and may include those goods, materials and equipment that are required by the Procuring Entity for a specific project only.Services refer to general support services except consulting services and infrastructure projects, which may be needed in support of the transaction of public businesses or in the pursuit of any government undertaking, project or activity.Expendable supplies are articles which are normally consumed in use with 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 decrease substantially in value after being put to use for only one (1) year (e.g. medicines, stationery, fuel, and spare parts)

Non-expendable are articles which are not consumed in use and ordinarily retain their original identity during the period of use, whose serviceable life is more than one (1) year and which add to the assets of the GOP (e.g., furniture, fixtures, transport and other equipment)

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

Why Plan? to investigate the risk to lessen identified risk to minimize losses, delays, for effective implementation and value for money Advantages of Procurement Planning 1. it gives higher efficiency and efficacy 2. it enables the procurement officials to anticipate the onset of events, to choose the best and most feasible method of procurement to be applied 3. it enables the PE to determine the best manner by which to procure at least cost.What is Procurement Planning?

14Procurement planning entails ensuring that plans for procurement are linked to budgets, preparing the PPMP and consolidating all PPMPs into a APP. Section 7.Procurement Planning (See D.O. 64, s. 2012 dated September 17, 2012)

From PPMPs to APPs General rules

Procurement Planning

What is a PPMP?

What is an APP?PPMPProject Procurement Management Plan

APPAnnual Procurement Plan

Formulating the PPMP involves identifying the procurement project requirements, writing the technical specifications, determining the ABC, identifying the schedule of milestone activities, and determining the method of procurement.General rulesAll procurement must be w/in approved budgetNo procurement unless in accord w/ approved APPAll procurement must be meticulously & judiciously plannedGeneral rulesOnly those considered crucial to efficient discharge of governmental functions must be included in APPrequired for day-to-day operationsin pursuit of principal mandateInclude provisions for foreseeable emergencies, based on historical recordsABC in APP/PPMP must be consistent w/ appropriations in GAAFactor to be considered in planning for the procurement of Goods

The end-user unit should consider the following factors which have an impact on contract packaging, the procurement method to be used, and other components of Procurement Planning pursuant to Section 7 of the Revised IRR of R.A. 9184:

Nature of the Goods to be ProcuredAvailability of the Goods or Services in the MarketObsolescence, operation, and maintenance of equipment/non-consumable Goods

The End-User should also take into consideration the warranty requirements (Section 62.1 Revised IRR or R.A. 9184) for goods being procured as follows:

On using the PS-DBM for procurement:

The Department should consider the services of the PS-DBM in the procurement of all kinds of supplies. This will free it from the tediousness of attending to recurring transactions, and provide greater time for the procurement of high value, highly specialized requirements for its more significant projects.

The Technical Specifications

Technical Specifications refers to the physical description of the goods and services, as well as the Departments requirements in terms of the functional, performance, environmental interface and design standard requirements to be met by the goods to be manufactured or supplied, or services to be rendered.

it includes the testing parameters for goods, when such testing is required in the contract.

Functional description is the description of the functions for which the Goods are to be utilized. For example, a ballpen is expected to write 1.5 km straight, continuous lines.

Performance description refers to the manner that the Goods are required to perform the functions expected of them. For example, a ballpen that writes at 1.5km should do so continuously and smoothly, without skipping, and with the color of the ink being consistent.

Environment interface refers to the environment in which the required functions are performed at the desired level. For example, a ballpen should write continuously for 1.5km on pad paper or bond paper, but not necessarily on wood or on a white board.

Design refers to the technical design or drawing of the goods being procured. A design standard is particularly useful in cases where the goods procured are specially manufactured for the Department. For example, in procuring clothing materials for the DPWH employees uniform, there is a specific pattern design, color and shade and textile that should be followed.

Consideration in setting the technical specifications of the goods to be procured.

In determining the technical specifications of the goods it will procure, the PMO or end-user unit must:

consider the objectives of the project or the procurement at hand. The conduct of a comparative study of the options available in the market and their relevance to the requirements of the Project is highly recommended. In-house experts who are part of the TWG or the PMO must likewise be tapped to provide technical advice. If there are no in-house experts available to provide advice on highly technical Goods, the Department may hire consultants to assist it in developing the technical specifications for the procurement at hand.

It is important to note that the use of brand names is prohibited by the Revised IRR.

Specifications for the procurement of goods shall be based on relevant characteristics and/or performance requirements. Hence, a generic description of the product or service must be used.

The Approved Budget for the Contract or the ABC

The ABC is the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the GAA and/or continuing appropriations, in the case of NGAs;

ABC basically refers to the proposed budget for the project approved by the Head of the procuring Entity based on the APP as consolidated from various PPMPs.

Factors to consider in determining the ABC:

In determining the ABC, the PMO or end-user unity, with the assistance of the TWG (when necessary), must consider the different cost components, namely:

The cost or market price of the product or service itself;Incidental expenses like freight, insurance, taxes, installation costs, training costs, if terms;The cost of money, to account for government agencies usually buying on credit terms:Inflationary factor, since the planning phase is usually done one year ahead of the actual procurement date;Quantities, considering that buying in bulk usually means lower unit prices; andThe supply of the spare parts and/or maintenance services, if these are part of the contract package.

If the project or contract has a foreign component, it is also best to include a currency valuation adjustment factor, in order to address foreign exchange rate fluctuations between the planning phase and the actual procurement date. To determine the factor to be used, the PMO or end-user unit may be request for guidance from the BSP, or refer to BSP forecasts, if available

If the sum of the different cost components is lower than the appropriation for theprocurement, then the ABC should be equal to the sum of the cost components. Ifthe resulting sum is higher than the appropriation, it is advisable to review thetechnical specifications and the computation of the ABC. In any case, the ABCshould not exceed the appropriation. In all instances, the procuring office shallensure that the ABC reflects the most advantageous prevailing price for thegovernment.

The BAC can make adjustment on the ABC after every failure of bidding provided,that a mandatory review and evaluation of the terms, conditions, and specificationsin the Bidding Documents, including cost estimates is under taken and providedfurther that the required approval are secured. However, the ABC cannot beincreased by more that twenty percent (20%) of the ABC of the last failed bidding.(Section 53.1.1. of Revised IRR)

PPMP Preparation - END-USER (D.O. 64, s. 2012 dtd 9/17/12)The Project Procurement Management Plan (PPMP) forGoods(GPPB Standard Form No. ___) contains the goods to be procured for the Fiscal Year. The goods mustbe categorized or grouped accordingly; (furniture & fixtures,construction materials, electrical, hardware materials, oil &lubricants, etc.).

A List of Itemized Goods, reflecting its prices must be attached to the PPMP. The sum total for each category should reflectthe total ABC for each category.

The Mode of Procurement being proposed by the end-user must be reflected in thereat, as well as the period when intended to be procured, usually the procurement is restricted on a quarterly basis in order to avoid overstocking of goods. After approval of the PPMP and the APP (consolidated), the end-user may now prepare.

GOODS may be those considered Common-Use Office Supplies, Materials and Equipment available from PS-DBM and those Not Available from PS-DBM (Inventory Common-Use Office Supplies, Materials and Equipment).

A.1. PPMP for Common Use Office Supplies, Materials and Equipment Available from PS-DBM

PROCUREMENT OF COMMON-USE SUPPLIES. Common-use supplies shall be procured directly from the PS or its depots without need of public bidding as provided in section 53.5 of the RIRR of RA 9184. (sec. 4, Administrative Order No. 17, dated July 17, 2011 issued by the Office of the President)

Common-Use Supplies refers to those supplies, materials, and equipment included in the price list of the PS which are necessary in the transaction of the official business of the procuring entity and consumed in its day-to-day operations.

Submission: On or before 15 November of the current year of PPMP intended for the succeeding year.

The APP for Common-Use Supplies and Equipment (APP-CSE) shall be submitted at the PS-DBM, Manila for government agencies located at Metro Manila. For LGUs, government agencies field and Regional Offices to be submitted at the PS-DBM Regional Office. (DBM Circular No. 2011-6 dated August 25, 2011 and 2011-6(A) dated September 28, 2011).

Note: The APP for Common-Use Supplies and Equipment shall be submitted using the prescribed format. The said format maybe downloaded thru the Procurement Service Website at http://www.procurement service.org downloaded tabs and the Philgeps website at http://www.philgeps.net about PhilGEPS tab useful downloads. The same APP-CSE shall be e-mailed to app@procurement service.org or app.psdbm@yahoo.com and submit one (1) hard copy to the following:

For Main/Central Office to the concerned Budget and management Bureau of the DBM Central Office; and For Regional Offices, to the respective DBM Regional Office

PPMP FORM

A.2. PPMP for Supplies, Materials, Equipment and Services Not Available from PS-DBM

These are goods which are not included in the PS-DBM List of Goods which can be viewed at its Web Virtual Store.

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 depots.

Electronic Catalogue refers to the list of common-use supplies that are available from the PS and its depots as appearing in the Philgeps.

These goods (if not included in the PS-DBM List of Goods) are sourced out thru alternative method of procurement (Shopping, Small Value Procurement, Direct Contracting, Negotiated, Repeat Order) and thru the regular mode of procurement Public Bidding or Competitive Bidding.

Goods to be sourced outside PS may be require with a Certification from PS that the said particular goods are not available. This can now be downloaded at the PS website.

The updating of PPMPs is the responsibility of the end-user concerned, while the updating of the APP shall be done by the BAC Secretariat on a semestral basis or as the need arises.

The PPMPs should also include a provision forcontingency/unforeseen requirements.

ITEMIZED LIST OF GOODS FORM

THRU PSDBMAll procurement shall be separated whether goods,civil works or consulting. Civil works or consulting Services are usually distinct entries in the APP, unless the PE finds merit in merging infrastructure project scopes (civil works)or deliverables (consultants)

Tips in consolidating PPMPsGoods procurement can be separated into three categories: common-use supplies (CSE) from the Procurement Service (PS), common-use supplies (non-PS), other goods procurement

(see preparation of PPMP)Annual Procurement Plan (APP) the requisite document that the agency must prepare to reflect the entire procurement activity (i.e., goods, services, civil works to be procured) that it plans to undertake within the calendar year. This document contains the following information:1. Name of the procurement program/project;2. End-User unit;3. General description of the procurement;4. Procurement method to be adopted;5. Time schedule for each procurement activity;6. Source of fund; and7. Approved Budget for the Contract.What is an APP?

Prepare Project Procurement Management Plan (PPMP).

Submit to Budget Office for evaluation.

Submit Budget Proposal to HOPE.

Preparation of APP4. Upon approval of HOPE, Budget Office will forward PPMPs to BAC Secretariat for Consolidation and Review.

5.When GAA, Corporate Budget or Appropriation Ordinance becomes final, PPMPs will be finalized and submitted to BAC Secretariat for consolidation and approval of the HOPE.

APP FORM

Updating of PPMP and consolidated APP (sec. 7.4, RIRR of RA 9184.

1. The end-user shall revise and adjust the PPMP to reflect the budgetary allocation for their respective procurement activities as soon as the GAA becomes final;

2. The revised PPMP shall be submitted to the BAC thru its Secretariat for the finalization of the modes of procurement under the proposed APP for approval of the Secretary;

3. Updating of the individual PPMPs and the consolidated APP shall be undertaken every 6 mos. or as often required by the Secretary;

4. The ABC reflected in the PPMP shall at all times consistent with the appropriations for the proposed projects authorized in the GAA.All Procurement shall be done through competitivebidding except as provided in R.A. 9184. (sec 10, Rule IV)

Resort to alternative methods shall be made:

Only in highly exceptional casesTo promote economy and efficiencyJustified by conditions specified in R.A. 9184 and its IRR

Procurement methodsPreparation of Purchase Request with the following attachments:a. Approved APPb. Approved PPMPs and Itemized List of Goodsc. Pre-Inspection Report (Repair and Maintenance of Equipment)d. Authority to Procure (Heavy Equipment)e. Sample Material (if applicable)f. Plans, Program of Work or Drawings (if applicable)

BRANDING IS PROHIBITED.

NO PROCUREMENT IF NOT INCLUDED IN THE APPROVED APP

Reference to Brand Names(Reference: NPM 156-2012) 18 R.A. 9184 and IRR prohibits reference to brand names.The PE cannot refuse to accept the delivery of an item that is compliant with the technical specifications provided in the bidding documents. If bidding documents identified a specific brand, PE may consider declaring failure of bidding as the BAC failed to conform with the prescribed bidding procedures.Technical SpecificationsReference: NPM 22-2013

*PEs are precluded from requiring specific country of origin as part of the technical specifications for the project.*Specifications shall be based on the performance requirements and recognized industry standards and not on the basis of country of origin. The Purchase Request (PR)- it contains the complete technical specifications of the goods to be procured as well as the total ABC for the purpose; quantity of the goods needed; supporting documents to be attached: - it must be numbered indicating the code of every office with numbers (usually 4-digit numbers) as they enter and year.

- it must be certified that the items are included in the APP. Who prepares the PR? The End-User prepares and submits to the BAC for procurement. It shall be approved by the HOPE.

MethodGoods1.Competitive Bidding

2.Limited Source Bidding3.Direct Contracting4.Repeat Order5.Shopping6.Negotiated Procurement

Procurement Methods69Bidding Process (Goods)

Pre-Bid ConferenceSec.22

Opening of Technical Proposal (inlc. Eligibility docs)Sec.25, 30.1Opening of Financial ProposalSec. 30.2Bid EvaluationSec. 32

Post-QualificationSec. 34

Bid SubmissionsSec. 29, 30

Contract AwardSec. 37.1

Pre- Procurement Conference sec. 20Advertisementand/orPosting sec. 21SEC. 20- Pre-procurement may not be required for small value procurement like goods costing P2M and below

Who may attend:1. The BAC;2. The BAC Secretariat/ Procuring Unit;3. End-user unit/s;4. The members of the TWG/s and consultants hired by the Procuring Entity;

Goods 2M & below

5. Officials who reviewed the above-enumerated documents prior to final approval, if any;6. Other officials concerned, as may be required * no observers; no bidders * HOPE cannot attend the Pre-Procurement (though there is no prohibition) because the project was approved by him.72GOODS2M & BELOW(P2M and above, Pre-procurement is necessary)PRE-PROCUREMENT CONFERENCE73Section 20.1 x x x During this conference, the participants, led by the BAC, shall:

1. Confirm the description and scope of the contract, the ABC, and the contract duration

2. Ensure that the procurement is in accordance with the project and annual procurement plans;

PRE-PROCUREMENT3. Determine the readiness of the procurement at hand, including, among other aspects, the following:a. Availability of appropriations and programmed budget for contractb. Completeness of the Bidding Documents and their adherence to relevant general procurement guidelines;[c. Completion of the detailed engineering according to the prescribed standards in case of infrastructure projects; andd. Confirmation of the availability of ROW and the ownership of affected properties.]

4. Review, modify and agree on the criteria for eligibility screening, evaluation, and post-qualification;5. Review and adopt the procurement schedule, including the deadlines and timeframes, for the different activities; andReiterate and emphasize the importance of confidentiality, in accordance with Section 19 of this IRR, and the applicable sanctions and penalties, as well as agree on measures to ensure compliance with the foregoing.

Posted in the:1. PhilGEPS Website2. Procuring Entitys Website * 7cds starting on date of advertisement3. Conspicuous place reserved for the purpose ofadvertising procurement opportunities * 7cds Advertised at least once in: 4. Newspaper of general national circulation, regularlypublished for at least two (2) years

See re: posting in secs. 21.2.1, advertisement of ITB; 22.5.3, supplemental/bid bulletin; 37.1.6, Notice of Award; 37.4.2, Notice to Proceed; 54.2, Alternative Methods of Procurement, shopping, negotiated procurement under two-failed biddings, small value procurement and NGO participation; 54.3, in all instances of Alternative Methods of Procurement the Notice of Award.

*no advertisement, the results of the bidding is void. If there is lacking in the advertisement, it will be considered void.Advertisement

Note: In the Pre-Procurement Conference, the Schedule of Activities will be submitted and approved.The Request for Advertisement to the publisher will likewise submitted and approved.The Schedule of Activities contains the dates of pre-procurement conference, newspaper/websites posting of ITB, issuance of bidding documents, pre-bid conference, submission and opening of bids, bid evaluation, post-qualification, approval of resolution/issuance of award, contract preparation and signing, and approval of contract Medium Above 2M 2M and below Newspaper of general x (not required) nationwide circulation

PhilGEPS website

PEs Website, if available

Conspicuous Place

Website prescribed by the foreign government/foreign or international funding institution, in case of foreign funded procurement

ADVERTISEMENT/POSTING OF THE INVITATION TO BID79Sale of Bidding DocumentsPARAMETER (ABC)COST OF BIDDING DOCUMENTS0 to 500 k500.00More than 500 K to 1M1000.00More than 1M to 5M5, 000.00More than 5M to 10M 10, 000.00More than 10M to 50M25, 000.00More than 50M to 500M50, 000.00More than 500M75, 000.00Charging of FeesReference: NPM-68-2013Decision in charging fees for bidding documents, whether for the first bidding or any subsequent re-bidding, depends upon the procuring entity, taking into account the need to recover the cost of its preparation and development vis--vis the effects in competition and participation of bidders.However, fees must conform with the standard rates for the sale of bidding documents under GPPB Res. No. 04-2012, which took effect on 4 September 2012.

Payment for the 2nd BiddingReference: NPM 163-2013Where there was a failure of bidding for the first time, the decision of charging fees for the Bidding Documents for the subsequent re-bidding depends upon the discretion of the procuring entity, taking into account the need to recover the cost of its preparation and development vis--vis the effects on competition and participation of bidders.The preparation and development of the revised Bidding Documents may entail upon the procuring entity another set of cost and expenses. Based on these costs and expenses, procuring entities may deem it necessary to charge bidders anew for the purpose of recovering the costs for its development and preparationBidding DocumentsAvailable on the 1st day of AdvertisementWhere:Procuring EntityPhilGEPSTo recover the cost of preparation and development

Sec.22ABC 1 Million Pesos or more - (Mandatory).at least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms, conditions, and specifications

ABC less than 1M, pre-bid conference conducted at the discretion of the BAC - (Discretionary)

*12 calendar days (cd) before bid opening or deadline for submission

*pre-bid conference discuss eligibility requirements and the technical and financial components of the contract to be bid

*attendance of the bidders shall not be mandatory*consultant/lawyers may be present*at the option of the PE, only those who purchased bid documents allowed to participate and raise or submit written queries or clarifications

Statements made during the conference must be included in the Supplemental/Bid Bulletin

Pre-Bid Conference84Sec. 22.5request for clarifications or interpretations on the bid documents must be in writing and submitted at least 10 cds before deadline of submission and receipts of bids.

a procuring entity must issue a Supplemental Bid Bulletin at least 7 cd before deadline of submission and receipt of bids in response to clarifications from the PE arising from the pre-bid conference.

Supplemental/Bid Bulletin posted on the Philgeps and website of the PE.

Responsibility of the bidders to inquire and secure Supplemental/Bid Bulletin. BUT, bidders who have submitted bids before issuance of Supplemental/Bid Bulletin must be informed in writing and allowed to modify or withdraw their bids

Purpose of Pre-Bid Conference

1. To clarify and address the bidders questions on the technical and financial components of the projecty2. To ensure that the bidders fully understand the Procuring Entitys requirements3. To ensure that the bidders know the changes and/or amendments to the bidding documents.Pre-Bid ConferenceReference: NPM 48-2013Sec. 22.1 of the IRR of RA 9184 provides that at least one (1) pre-bid conference should be conducted by the procuring entity for projects costing at least Php 1 Million, in order to afford prospective bidders the opportunity to inquire on or clarify any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents.Failure to conduct a pre-bid conference for the Project amounts to a violation of a mandatory provision of law, which will render the procurement activity void under Art. 5 of the Civil Code of the Philippines.

Reasons for rejection of bids and ineligibility of bidderFailure to submit original copy of the Certificate from Insurance Commission indicating the name of project; the procuring entity and name of contractor.Shorter bid validity and bid security validity periodLate bidWrong insertion of documentsOmnibus Sworn Statement/Secretarys Certificate/Board Resolution not notarizedFor Similar Contract, Single Largest Contract not indicated in the Statement of all Government & Private Contracts completed which are similar in natureNFCC less than the ABCSubmitting forms not acceptable pursuant to the provisions of the R-IRR of RA 9184For Bid Security, Surety Bond, Callable on Demand and validity of 120 days , not inscribed in the bond.Bid prices higher than the ABCLack copies of the bid

Posted at:

PhilGEPS Website of Procuring Entity, if availableBidders have the responsibility to inquire and secure Bid Bulletins; however, those who have submitted bids prior to the issuance of the Bid Bulletin must be informed and allowed to modify their bids.

Bid BulletinSupplemental/Bid Bulletin Reference: NPM 46-2013

S22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid Bulletins upon their initiative for the purpose of clarifying or modifying any provision in the Bidding Documents, including the IB.Accordingly, PE has the authority to revise or amend any statement in the Bidding Documents, including the IB, specifically when such revision or amendment is made for the purpose of clarifying or modifying its provisions.Supplemental/Bid Bulletins must be posted in the PhilGeps and at the PEs website, in order to address aspects of competition and transparency.Section 23. GOODSClass A DocumentsLegal Documents1. DTI/SEC/CDA Registration2. Mayors permit3. Tax Clearance

Technical Documents4. Statement of ongoing & completed contracts

Financial Documents5. Audited Financial Statement6. Computation of bidders NFCC (CLC is no longer accepted as an alternative to the bidders computation of NFCC as amended by GPPB Res. No. 20-2013 dated July 30, 2013Class B Document

JVA or notarized statement from the partners that they will enter into joint venture if awarded the contract

ELIGIBILITY REQUIREMENTSUPDATE: GPPB Resolution 12-2012:

Effective: 12 January 2013 (Publication: 28 December 2012)

Amendments to IRR: Sections 8.5.2, 23.4, 24.4.3

Guidelines for the Use of the GoP-OMR

UPDATE: GPPB Resolution 12-2012UPDATE: GPPB Resolution 12-2012

23.4 / 24.4.3.To facilitate the determination of eligibility, the BAC of a procuring entity may use the contents of the PhilGEPS electronic registry of manufacturers, suppliers, distributors, contractors, and/or consultants.

23.4.1 / 24.4.3.1. The PhilGEPS registry system shall contain the foregoing Class A documents, which should be maintained current and updated by the bidder concerned at least once a year or more frequently as may be necessary. 23.4.2 / 24.4.3.1. A bidder who maintains a current and updated file of his Class A documents may submit to the procuring entity, in lieu of the said documents, the Certificate of Registration and Membership issued by PhilGEPS pursuant to Section 8.5.2.

ELIGIBILITY REQUIREMENTSPhilGEPSReference: NPM 19-2013

Registration Certificate

Although bidders are not precluded from submitting the post-qualification documents required in s34.2 RA 9184 IRR during submission of bids, it is prudent for the PE to request the latest and current documents during post-qualification

PE cannot recommend the award of contract if the bidder failed to submit a current and updated PhilGeps Registration Certificate within 3 calendar days from its receipt of the BACs notice.

Its belated submission of a renewed PhilGeps Registration Certificate does not cure the defect, and should result in the disqualification of the bidder and forfeiture of its bid security.Registry System Reference: NPM 16-2013

Secs. 23.4 and 24.4.3 allows the BAC of a procuring entity to maintain a registry system using the PhilGeps or its own manual or electronic system that allows submission and/or recording of eligibility requirements simultaneously with registration. However, prospective bidders not included in the registry system should not be precluded from participating in any procurement opportunity.

This should not be considered an accreditation system, and is not tantamount to a finding of eligibility, nor a guarantee that the registered supplier, contractor, or consultant will be eligible for any particular procurement activity or contract award.PhilGEPS: RegistrationReference: NPM 34-2013S8.5.1 RA 9184 IRR requires suppliers, contractors, consultants to register with PhilGeps. It does not qualify based on threshold.Inapplicability of the posting requirement is not tantamount to a situation where PhilGeps registration may also be dispensed with since the amount of the project is not a factor for the condition to apply.Registration with PhilGeps is absolute, and must be complied with regardless of the amount of procurement.

Additional RequirementsReference: NPM 24-2013

PE cannot compel prospective bidders or the winning bidder to submit or comply with requirements not initially provided in the Bidding Documents or through any Supplemental/Bid Bulletin issued by the PE for the project that must be posted at the PhilGeps and the PEs website.

If no Supplemental/Bid Bulletin is issued to reflect changes in the Bidding Documents, or even if the same was issued but not posted at the PhilGeps and PEs websites, the original provisions contained in the Bidding Documents remain and the prospective bidder, including the winning bidder cannot be compelled to abide or comply with the changes made by the PE.Submission of LOI no longer requiredReference: NPM 55-2013Bidders are no longer required to submit a written LOI together with their application for eligibility.Instead, bidders only have to submit their bids not later than the deadline for the submission and receipt of bids, which can be extended or rescheduled together with the opening of bids as provided in sec. 29 of the IRR of RA 9184.GOODS

General rule: 60% Filipino Foreign bidder 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

ELIGIBILITY CRITERIA (LEGAL)

100Goods - Single Largest Contract General Rule Exceptions Then require the ff.: 1. Value is at least If at the outset and a) At least 2 similar contracts of 50% of ABC market research, aggregate amount at least applying the general equivalent to required rule will likely result percentage; and to: 2. Expendable --- value of at least 1. Failure of bidding; b) largest of the similar 25% of ABC or contracts amounts to at 2. Monopoly least 50% of required percentageELIGIBILITY CRITERIA (TECHNICAL)Nature of Similar ContractsReference: NPM 42-2013

PEs have the responsibility to clarify in the Bidding Documents what projects can be considered similar to the contract being bid out, for purposes of determining compliance with the SLCC requirement (Single Largest Completed Contracts).

As guidance, a contract shall be considered similar to the contract to be bid out if it involves goods or services of the same nature and complexity as the subject matter of the project being procured. Similarity of contract should be interpreted liberally in the sense that it should not refer to an exact parallel, but only to an analogous one of similar category.Similar Contracts in GoodsReference: NPM 54-2013Definition or description of a similar contract should not unreasonably limit competition and inequitably bar participation of capable suppliers.Similarity of contract should be interpreted liberally in the sense that it should not refer to an exact parallel, but only to an analogous one of similar category.Goods:

NFCC at least equal to ABC

ELIGIBILITY CRITERIA (FINANCIAL)NFCC formula NFCC = [(current assets - current liabilities) x (K)] -(outstanding, uncompleted portions under ongoing contracts, contracts awarded but not yet started included) where: (K) = 10 (contract is 1 year or less) 15 (contract is more than 1 year to 2 years) 20 (contract is more than 2 years)

Required Amount of NFCCReference: NPM 76-2013Participating bidder should be required to submit an NFCC that is at least equal to all the lots to which it participated in, in order to establish the bidders financial liquidity and absorptive capacity in carrying out the contractual obligations required by the lots to which it participated in.Additional Eligibility RequirementsReference: NPM 53-2013Procuring entities are proscribed from requiring additional eligibility requirements because the list of minimum eligibility requirements has been streamlined/simplified such that only those requirements enumerated in Secs. 23.1, 24.1, and 25.1 of the IRR of RA 9184 are necessary for purposes of determining a bidders eligibility.Authority of BAC Sec to Open and ExamineReference: NPM 69-2013

Sections 12. 1, 30.1 and 30.2 of the revised IRR of RA 9184 categorically vests upon the BAC the authority to determine each bidders compliance with the required documents for purposes of eligibility.

Such authority cannot be delegated to the BAC Secretariat.Authorized RepresentativeReference: NPM 43-2013S25.2 RA 9184 IRR requires the bidder or its duly authorized representative to issue a sworn statement that the signatory is the duly authorized representative, and granted full power and authority to represent the bidder.S29 RA 9184 IRR provides that bidders or their duly authorized representative may attend opening of bids.PE cannot restrict participation only to the principal/bidder, but shall likewise extend the representation to the duly authorized representative of the sole proprietorship.

Sealing and Marking of BidsReference: NPM 36-2013Since the rule and the ITB Clauses 20.1 and 20.2 use the word shall, connoting command and compulsion, the requirements on sealing and marking of bids are regarded as mandatory.Improper sealing and marking of bids may be a ground to disqualify a bidder.Bid OpeningReference: NPM 54-2013Sec. 30 requires that the preliminary examination of bids be conducted by merely checking for the presence or absence of documentary requirements using a non-discretionary pass/fail criterion.However, the BAC has the right to review the qualifications of a bidder during the same stage if it has reasonable grounds to believe that a misrepresentation has been made or there has been changes in the bidders capability to undertake the project.Submission and OpeningDate of submission should not be later than the maximum period of 45 cds from the last day of posting of the Invitation to Bid2 - Envelope System:1st Envelope Eligibility & Technical Proposal: Legal & Financial Documents Class A Documents a. Registration Certificate for SEC, DTI, or CDA] b. Mayors Permit ]Legal c. Tax Clearance per Exec. Order 398, S. 2005]Docs. d. Statement of on-going and completed contracts (Technical Documents) e. Audited Financial Statements ] Financial f. Computation of NFCC ] Documents

Sec.25Two-Envelope System:1st Envelope - Eligibility Requirements and Technical Component - in the Omnibus Affidavit, a statement is added: (name of bidder did not give or pay directly or indirectly, any commission, amount, fee, or any form of consideration, pecuniary or otherwise, to any person or official, personnel or representative of the government in relation to any procurement project or activity). Note: it also contains statement on Disclosure of Relatives - Secretarys Certificate/Board Resolution

2nd Envelope - Financial ComponentSubmitted to the BAC on the date, time, and place specified in the Invitation to BidBids submitted after the deadline should not be accepted

*the rules of public bidding is strictissimi otherwise, it would lack integrity of the bidding system.

SUBMISSION AND OPENING OF BIDSSec. 47Relatives within the third 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 or project management office Project consultants

Note: This should be read in relation to the Bidding Documents on Conflict of Interest as stated in the Omnibus Affidavit. Sec. 47 of RIRR of RA provides only the penalty on the conflict of interest.

DISCLOSURE OF RELATIONSConflict of InterestReference: NPM 14-2013

Conflict of interest arises when, in the case of the subject matter of the inquiry, the Chairman of the BAC that conducted the earlier procurement was eventually designated as OIC of the Procuring Entity.

In this case, the subject procurement is deprived of checks and balances as one of the persons conducting the bid evaluation and post-qualification, who is no less than the BAC Chair, may have that degree of proclivity towards the recommended action of the BAC; thus, the subsequent award of contract may no longer enjoy the cold neutrality of an impartial HOPE.Contents: 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

OPENING AND EVALUATION OF SECOND ENVELOPEClass B Document JVA or duly notarized statements of entering into a JVA if awarded a contractIn the case of foreign bidders, foreign eligibility requirements under Class A Documents may be substituted by the appropriate equivalent documents, if any, issued by the country of the foreign bidder concerned

If foreign bidder: Submit equivalent documents issued by country Accompanied by English translation certified by appropriate embassy or consulate in the Philippines

Government corporate entities eligible only if: Legally and financially autonomous Operate under commercial law Not dependent agencies of GOP or procuring entity

Opening of Reconsidered BidReference: NPM 69-2013 BAC should open a reconsidered bid under the same circumstances as it opened the bids that were not disqualified, i.e., upon a duly scheduled opening of bid with proper notices to the concerned entities.Pre-qualificationReference: NPM 54-2013The practice of pre-qualification has been abandoned in RA 9184 and its IRR. The results of a prequalification have no legal force and effect, bearing or weight, and cannot preempt the findings of the BAC during the preliminary examination of bids conducted during the opening of bids. Hence, a bidder may still be declared ineligible during the opening of bids despite a finding of qualification during the purported pre-qualification exercise.BID SECURITYForm of Bid SecurityAmount of Bid Security(Equal to Percentage of the ABC)a)Cash or cashiers/managers check issued bya Universal or Commercial Bank.Two percent (2%)a)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.a)Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.Five percent (5%)a)Any combination of the foregoing.Proportionate to share of form withrespect to total amount of securitySec. 27.1Bid security payable to PEPurpose: to guarantee that the successful bidder shall, within ten (10) cds or less, as indicated in the Instruction to Bidders, from receipt of the Notice of Award, enter into contract with the Procuring Entity and furnish the Performance Security.When is bid security returned? After the bidder with the Lowest Calculated Responsive Bid has signed the contract and furnished the performance security, except those declared by the BAC as failed or post-disqualified in acc. with this RIRR, upon submission of a written waiver of their right to file a motion for reconsideration and/or protest, sec. 27.4 of RIRR.* Sec. 27.4, RIRR should be read in relation to sec. 34.4, 34.5 and 34.6 Bid security not returned later than the expiration of the bid validity period unless extended.Surety BondsReference: NPM 151-2012

Although the phrase Callable on Demand appearing the face of the Surety Bond is preferred, there is no requirement that the exact/same phrase should appear on the face of the Surety Bond, as this phrase simply provides the caveat to the obligee, obligor and the surety that the surety contract facility may be called only upon a proper demand callable on demand to establish default, and to trigger the liability under the surety contract.

The phrase Callable upon Demand need not be specifically written, or emphasized in bold letters across, or diagonally on the face of the Surety Bond. It is sufficient that the import or totality of the stipulations, covenants, provisions, and agreements written on the instrument makes the Surety Bond callable upon demand.What is BSD?

An undertaking by a prospective bidder, committing to pay the corresponding fine and be suspended for a period of time from being qualified to participate in any government procurement activity in the event it violates any of the conditions stated therein

Bid Securing Declaration (BSD)GPPB Res No. 03-2012:

Guidelines in the Use of BSDPublished 20 August 2012Effective 04 September 2012Section 27 of the IRR is amended to include Bid Securing Declaration as an alternative to the forms of bid securityWhat is BSD?BSD shall be valid for a reasonable period determined by the HOPE concernedin the Bid Documents*Grounds for enforcement of BSD: - bidder withdraws its bid during the period of bid validity - bidder fails or refuses to accept the award and enter into contract*Consequences of enforcing BSD - payment of fine - automatic blacklisting

Sec. 28Extension shall be requested by the ProcuringEntity to the Bidder, if necessary, Right to refuse grant of extension without forfeiture of bid security

Bid Validity120 CDsBids and bid securities shall be valid for a reasonable period as determined by the HOPE as indicated in the Bid Docs:

Not to exceed 120 days from the deadline of submission of bids

If the period is extended, PE shall request in writing all those who submitted bids for such extension before the expiration date

NOTE: Bidders have a right to refuse to grant such extension w/o forfeiting their bid security.

Sec. 30 Preliminary Examination: Pass or Fail Criterion (presence and absence of required documents)

Sec. 32.2.1 Detailed Evaluation Completeness of bid Arithmetical corrections Prices shall be inclusive of ALL taxes

Bid EvaluationSec. 32.1 No contact rule BAC, thru Secretariat, may request for clarification of bid as long as it is in writing

Sec. 32.2 Determine the LCB by: Establishing correct calculated prices of bidsRanking calculated total bid prices from lowest to highest

DETAILED EVALUATION OF BIDSNo Contact RuleReference: NPM 07-2013 The no contact rule applies only to those whose bids are being evaluated by the BAC after passing the preliminary examination. No communication should be made by the bidders until a decision to award a contract is made by the BAC.Bidders who waived their right to utilize the protest mechanism or those whose request for reconsideration and/or protest were subsequently denied are not covered by the prohibition under S32.1 of RA 9184 IRR. Nondiscretionary criteria shall be used, which shall include consideration of:

completeness of bids minor arithmetical corrections

Sec. 32.4 Completed within 7 cd from the deadline for receipt of proposals Infrastructure Projects costing PhP 50M and below within 5 cd

DiscountsReference: NPM 154-12Although discounts are not prohibited, it should be made an integral part of the original bid such that the discount and the bid price have the same validity period in order for it to be considered for purposes of bid evaluation; otherwise, the bid shall be evaluated sans the discount.The discount proposed by the bidder after the submission, receipt and opening of bids should not be considered by the BAC as part of the bidders price. Acceptance of the discount offered and made manifest only after the deadline for submission of bids, and after the bids were opened would constitute improvement or modification of bids, which is prohibited under S26.1 of the IRR. Refrence: NPM 17-2013Discounts stated in the Bid Form allow bidders to itemize the application of discounts that are not yet reflected in the amounts specified in its BOQ and detailed estimates vis--vis the program of works, as there could be a situation that the decision to offer a discount came long after these amounts have been prepared, finalized, and reflected in the bid documents, and changing the entries may be too cumbersome and time consuming for the bidder.Discount offered in the Bid Form may be accepted even though the financial documents do not contain or indicate any reference to such discount.

Sec. 32.3In 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-responsivePlacing no price is considered as nonresponsiveSpecifying a 0 or - means it is offered for free

Form of Bid and AmountPerformance Security Bid Security Performance Security (% = ABC) (% = Contract Price)a) Cash or cashiers/managers 2% 5% (Goods &Consulting) 10% (Infra)b) Bank guarantee/draft orIrrevocable LC check

c) Surety bond callable upondemand 5%30%

d) Combination of the foregoing Proportionate to share of form with respect to the total amount of security

Secs. 27 & 39.2Sample ComputationCash (60%) Surety Bond (40%)ABC1,000,0001,000,000% Required x .02 x .0520,000 50,000Share of form x .60 x.40Amount 12,000 20,000

Total: 32,000

Post-QualificationPost-qualification is the process of verifying, validating and ascertaining all the statements made and documents submitted by the bidder with the lowest calculated bid (LCB), which includes ascertaining the said bidders compliance with the legal, financial and technical requirements of the bid.

A bidder with the Lowest Calculated Responsive Bid is one whose eligibility documents had been validated and verified, and its compliance with the legal, financial, and technical requirements of the bid had been ascertained. Sec. 34.2Within 3 days from notice of LCB, submit the following documents:

*Latest income and business tax returns*Certificate of PhilGEPS registration*Other appropriate licenses and permit

Sec. 34.3

POST-QUALIFICATION

Verify, validate, ascertain all statements made and documents submitted by LCB Post-Qualification (Legal)*To verify, validate, and ascertain licenses, certificates, permits, and agreements submitted by the bidders required by law stated in the Bidding Documents *not in the consolidated file of blacklist

Technical requirements-verification and validation:* competence, experience of bidder and its personnel* availability and commitment/capacities and operating conditions of equipment, as well as performance of bidder in ongoing contracts* inspection & testing, after-sales and/or maintenance capabilities (goods)* sufficiency of the bid security as to type, amount, form & wording, and validity period

Sec. 34.3, b

1.Verification and validation of the bidders statedcompetence and experience, and the competenceand experience of the bidders key personnel to beassigned to the project2.Verification of availability and commitment, and/or inspection and testing for the required capacities and operating conditions, of equipment units to be owned/leased/under purchase by the bidder for use in the contract under bidding

Post-Qualification (Technical)

3.Verification and/or inspection and testing of the goods/product, after-sales and/or maintenance capabilities

4.Ascertainment of the sufficiency of the bid security as to type, amount, form and wording, and validity period

How about Joint Ventures?

All members of the JV are required to submit the post-qualification requirements

These are legal eligibility requirements which should be submitted by all members of the joint venture

Financial requirements:

To verify, validate and ascertain 1. the bid price proposal of the bidder, and 2. bidders NFCC computation

Sec. 34.8 - post-qualification process should be completed in not more than 7 cd

- may be extended by the HOPE to not more than 30 cd

Note: The BAC-TWG, after the conduct of post-qualification, shall then report their evaluation to the BAC that the winning bidder with lowest calculated bid passes all the criteria for post-qualification which the BAC declares the LCB as the Lowest Calculated Responsive Bidder (LCRB) and recommends to the HOPE. Sec. 34.4 of RIRR of RA

Preparation of BAC ResolutionThe BAC Secretariat will prepare a BAC Resolution to recommend the contract to the LCRB for approval by the HOPE.Post-Qualification: Requiring Additional DocumentsReference: NPM 25-2013PE may request for the submission of additional documents from the bidder in support of the information it has provided in the bidding documents.However, non-submission of the additional supporting documents requested cannot be a ground for the bidders post-disqualification, as a bidder may be post-disqualified only upon ascertainment, validation, and verification of its non-compliance with the legal, technical, and financial requirements of the project as provided in the bidding documents.

Post-Qualification: End-User ComplaintEnd-User complaint is not in itself ground for post-disqualification, unless the PE determines that the bidder is not legally, technically and financially capable to complete the project based on such complaints.Sec. 35

Failure of Bidding:1.No bids are received;2.All prospective bidders are declared ineligible; 3.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; or4.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 this IRR.

FAILURE OF BIDDING:Mandatory review after each failed biddingBased on findingsrevise terms, conditions, specificationsadjust ABC, subject to required approvals

Sec. 53.1.1 the ABC cannot be increased by more than 20% of the ABC for last failed bidding

Rebid, with readvertisement and/or reposting

Single Calculated and Responsive Bid Sec. 36 - considered for award subject to the following: 1. if after advertisement, only one prospective bidder applies for eligibility check and meets the eligibility or criteria after which it submits a bid which is responsive to the bidding requirements; 2. if after advertisement, more than one prospective bidder applies for eligibility requirements or criteria, after which it submits a bid which is responsive to the bidding requirements; or 3. if after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid and its bid is responsive to the bidding requirements

In cases of Joint Ventures, potential partners have ten (10) CDs to enter into a valid JVA.

Note: Joint Venture partners shall also execute an agreement (Special Power of Attorney) both signed by the parties duly notarized appointing either parties to represent them in the joint venture undertakings. If it is a foreign partner, it must be certified by the appropriate embassy or consulate in the Philippines including the documents if they are in a foreign language. Post Performance Security (Section 39) - 10 CDs upon receipt of NOA

Contract Signing (Section 37.2)

Notice to Proceed- 3 CDs from date of approval of contract

Notice of AwardAward of contract conditioned on the following:If JV, submission of JVA If foreign-funded and stated in treaty, international License or executive agreement, PCABPosting of Performance Security. This is to guarantee the faithful performance by the winning bidder of its obligations under the contract in acc. with the bidding documents prior to the signing of the contract, sec. 39 of RIRR.Signing of Contract (within 10 cd)Performance security is forfeited in the event it is established that the winning bidder is in default in any of its obligations under the contract, sec.39.3.It shall remain valid until issuance of the final Certificate of Acceptance. Sec. 39.4It may be released after the issuance of the Certificate of Acceptance subject to the following conditions: 1. no claims were filed against the contract awardee or the surety company; 2. no claims for labor and materials filed against the contractor; and3. other terms of the contract.

AWARD OF CONTRACTIf required, approvals by higher authority

Note: 3 mos. - procurement process from openingof bids up to award of contract or a shorter period

Contract shall be awarded to bidder with the LCRB at its submitted price or total calculated bid price, whichever is lower

Notice of Award (NOA) issued by the HOPE after approval of BAC recommendation. NOA posted within 3 cds from its issuance in the Philgeps and procuring entity website and any conspicuous place in the PEs premises.Sec. 37.4 NOTICE TO PROCEED:

Issued to the successful bidder together with the copy of the approved contract within 3 cd from date of approval.

Contract effectivity date should be provided in the NTP, which should not be later than 7 cd from its issuance

BAC Secretariat must post a copy of the NTP and the approved contract in the PhilGEPS or PEs website within 15 cd from issuance of NTP

Performance Security

Amount of Performance Security (Equal to Percentage of the Total Contract Price)Cash or cashiers/managers check issued by a Universalor Commercial Bank.Goods and Consulting Services Five percent (5%)Infrastructure Projects Ten percent(10%)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.Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.Thirty percent (30%)Any combination of the foregoing.Proportionate to share of form with respect to total amount of securityBidder has option to choose among acceptable forms.Procuring entity may not limit options available to bidders.In general, bank issued securities must be issued by a universal or commercial bank.

However, in biddings conducted by LGUs, securities may be issued by banks certified by BSP as authorized to issue said instruments.

BID (AND PERFORMANCE SECURITY)

Sec. 39. Performance Security

Purpose: to guarantee the faithful performance by the winning bidder of its obligations under the contract in acc. with the bidding documents

- post prior the signing of the contract - remain valid until issuance of the final Certificate of Accepatance

Bidder has option to choose among acceptable forms.Procuring entity may not limit options available to bidders.In general, bank issued securities must be issued by a universal or commercial bank.

However, in biddings conducted by LGUs, securities may be issued by banks certified by BSP as authorized to issue said instruments.

BID (AND PERFORMANCE SECURITY)

SssSec. 40

Failure to enter contract and post performance security:

Lowest Calculated Responsive Bidder fails, refuses or is unable to submit documents (in the post-qualification process), or enters into contract, or post performance security bid security forfeited and appropriate sanctions imposed except where such failure, refusal or inability not thru fault of the bidder

Failure, refusal or inability of the Lowest Calculated Responsive Bidder to submit documents or enter contract and post performance security --- disqualify said bidder and complete the post-disqualification process on 2nd LCB

Failure, refusal or inability of the single calculated responsive bidder to submit documents or enter contract and post performance security disqualify said bidder and declare failure of bidding and conduct rebidding with advertisement and/or posting

WARRANTY SECURITYForm of Warranty SecurityAmount of Warranty Security(Equal to Percentage of the TotalContract Price)Cash or Letter of Credit issued by a Universal or Commercial Bank: Provided, however, that the LC shall be confirmed or authenticated by a Universal or Commercial Bank, if issued by a foreign bank.Five percent (5%)Bank guarantee confirmed by a Universalor Commercial Bank.Ten percent (10%)Surety bond callable upon demand issued by GSIS or a surety or insurance company duly certified by the Insurance Commission as authorized to issue suchsecurity.Thirty percent (30%)Sec. 62Warranty Security (for GOODS only) Purpose to assure that manufacturing defects are corrected by the supplier Goods

Minimum three (3) months (expendable): Minimum one (1) year (non-expendable)

Obligation for the warranty covered by Ten percent (10%) retention money or special bank guarantee 10% of the total contract price

When is the amount released? After the lapse of the warranty period or, in case of Expendable Supplies, after consumption, provided delivered supplies are free from patent and latent defects and all conditions imposed under the contract are fully met

Contract Implementation: Warranty Security for Janitorial Services Reference: NPM 64-2013

Interpretation and application of the clauses of the PBDs are to be read together and in accordance with RA 9184 and its IRR. GCC Clauses 17.1 to 17.5, should be read in consonance with sec. 62.1 of the IRR of RA 9184

The requirement for the posting of warranty security under sec. 62.1 of the IRR of RA 9184 applies only in the case of contracts involving expendable and non-expendable supplies. It excludes services from its application.

Thank Youfor Listening!Onofre B. LlanesChief Goods and Services DivisionProcurement ServiceADVANCE PAYMENT FOR GOODS

Made only after prior approval of the PresidentSingle advance payment not to exceed 50% of the contract for the following services:

Hotel and restaurant servicesUse of conference/seminar and exhibit areasLease of office space

Advance payment not to exceed 15% allowed to address contingencies arising from natural or man-made calamities in areas where state of calamity hasbeen declared

Advance payment not to exceed 15% allowed and paid within 60 days from signing of contract upon submission of a claim and an irrevocable letter of credit or bank guarantee issued by Universal or Commercial bank

DOMESTIC PREFERENCE:

Applicable only for goods

Applies where the lowest bid has a foreign component (foreign bid/entity) and the next lowest bid has a domestic component (domestic bid/entity)

Requires PE to give preference to domestic entities and domestic bid (to materials and supplies produced, made, and manufactured in the Philippines)

Domestic entities can only claim preference if certified by SEC (partnerships, corporations) / DTI (sole proprietorship) / CDA (cooperatives)

Domestic bidder can only claim preference if certified by DTIDEFINITIONS:

Domestic entities (Sec. 5 [k])

75% FilipinoHabitually established in business and engaged in the manufacture or sale of product to be bidIn existence for at least 5 consecutive years

Domestic bidder (Sec. 5 [j])

Any person or entityOffering articles/materials/suppliesIf unmanufactured, grown or produced in the PhilippinesIf manufactured, substantially from those grown or produced in the Philippines

Post-QualificationPost-Qualification

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