3 Categories of Government Procurement

1. G o o d s
2. Infrastructure Projects
3. Consulting Services
Consulting Services refer to services for infrastructure projects and other
types of projects or activities 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:
1. advisory and review services;
2. pre-investment or feasibility studies;
3. design;
4. construction supervision;
5. management and related services; and
6. other technical services or special studies.
Consultant is a natural or juridical person, qualified by appropriate
education, training and relevant experience to render any or all of the
types and fields of consulting services.
In hiring a Consultant, ensure the following:

1. Filipino First Policy (Article XII of the Constitution)

2. Consultant’s professional independence

 Prohibition on conflict of interest

3. Hiring is based on proven expertise, experience and capability

4. Technology and knowledge transfer to the procuring entity shall be

required in the provision of consulting services, where applicable.
 Consultancy assignment is in conflict with prior or current obligations to
other clients and Consultant is unable to carry out the assignment in
the best interest of the procuring entity.

 Examples of conflict:
 Conflict between consulting activities and procurement of goods or
works
 Conflict among consulting assignments
 Relationship with the procuring entity’s staff
(Sec. 47.2(f-j), 2016 IRR of RA 9184)
Filipino Consultants

 Hired whenever the services required for the project are within their
expertise and capability in order to manifest trust and confidence in and
promote the development of Filipino consultancy

Foreign Consultants

 Hired in the event Filipino consultants do not have sufficient expertise

and capability to render the services required under the project, as
determined by the HOPE.
On Coverage: not applicable in the hiring of individual personnel under
Contract of Service (COS) or Job Order (JO) except those under sole
proprietorship, partnership or a corporation contracted for the purpose
(NPM 15-2014)

Hiring of JO Workers is not a procurement activity under RA 9184 and its IRR
(Sec. 4.5(d), 2016 IRR of RA 9184)

UPDATE: CSC-COA-DBM JOINT CIRCULAR NO. 1, S. 2017 ISSUED ON JUNE 15,

2017 (RULES AND REGULATIONS GOVERNING CONTRACT OF SERVICE AND
JOB ORDER WORKERS)

Engaging the services through contract of service (whether institutional or

individual) shall be subject to the provisions of RA No. 9184 and its IRR.
Transitory provisions—Agencies may renew contracts of existing COS and JO
until December 31, 2018. Thereafter, engagement of COS and JOs shall be in
accordance with this JC.
 Composed of various organizations of consultants

 Accredits technically and financially qualified members on the types of

services and fields of professions

 Prepares and certifies a list of fields where Filipino consultants can

provide competent consulting services

 Recognizes Confederation of Filipino Consulting Organizations, Inc.

(COFILCO) as the umbrella organization of consultants for the following
sectors: i) Disaster, ii) Environment, iii) Infrastructure, and iv)
Management. (GPPB Resolution No. 6-2013)
 Pre- Submission of
Advertisement
Procurement Eligibility Eligibility Check
/ Posting
Conference Requirements
7cd
not >
20cd

Opening and Submission of Pre-Bid

Evaluation of Proposals Short Listing
Conference
Proposals
not > 21cd not > 75cd at least12/30cd

Negotiation &
Contract
Post- Contract Award
Implementation
qualification
Nego = not > 10cd
Post-Qua = ≤ 7-30cd
 Ensure procurement is in accord with the PPMP, APP, and ABC

 Determine readiness of procurement

 Availability of appropriations
 Completeness of Bidding Documents

 Agree on the following criteria:

 for eligibility screening and short listing, including the weights for
each criterion and the minimum score required
 for evaluation of proposals, including the evaluation procedure (QBE
or QCBE), the corresponding weights for the technical and financial
proposals, and the minimum technical score required

 Determine actual number of consultants in the short list

 3 to 7, with 5 as preferable number
 The Request for Expression of Interest (REI) must contain the following:

1. The name of the contract, a general description of the project and

other important or relevant information on the project;

2. A general statement on the criteria to be used by the Procuring Entity

for
a. The eligibility check; and
b. The short listing of eligible consultants;

3. The nature of the evaluation process, that is, whether Quality-Based or

Quality-Cost-Based;
4. The weights for the technical and financial proposals under the Quality
Cost-Based Evaluation process;

5. The number of firms to be included in the short list;

6. The date, time and place of the:

a. Deadline for the submission and receipt of the eligibility and
shortlisting requirements;
b. Pre-Bid Conference, if any;

7. The ABC

8. The source of funding;

9. The period of availability of the eligibility documents, the place where
the eligibility documents may be secured and, how much

10. The contract duration;

11. The name, address, telephone number, facsimile number, and e-mail
and website addresses of the concerned Procuring Entity, as well as its
designated contact person;

12. The Reservation Clause, which is normally located at the bottom of the
notice; and

13. Such other necessary information that are deemed relevant by the
Procuring Entity.
 Medium Frequency

Newspaper x  Once in 1 newspaper

PhilGEPS   Continuously for 7 cd

Website of Procuring
Entity   Continuously for 7 cd

Conspicuous Place   Continuously for 7 cd

Advertisement shall not be required for contracts to be bid with an ABC of
Five Million Pesos (₱5,000,000.00) and below for the procurement of
Consulting Services.

Two (2) years after the effectivity of the 2016 IRR, advertisement in a
newspaper of general nationwide circulation shall no longer be required
unless the PE cannot post its opportunities in the PhilGEPS for justifiable
reasons (Sec. 21.2.1, 2016 IRR of RA 9184)
Distribution and Sale of Bidding Documents:

 If bidding documents are sold, the BAC shall issue the Bidding
Documents upon payment of the corresponding cost thereof
to the collecting/disbursing officer of the PE concerned, if
applicable.

 If documents have been downloaded, BAC shall only accept

the submitted bid envelopes, upon payment of the
corresponding bid fee, if applicable.

BAC must issue copies of the bidding documents to the Observers free
of charge.

Bidding Documents Fee may be refunded in accordance with the

Guidelines on the Sale of Bidding Documents based on the grounds
provided for under Section 41 RA 9184 and its IRR. (Sec. 17.5, 2016 IRR
of RA 9184)
Confidentiality of Bidding Documents

The bidding documents are strictly confidential and shall not be

divulged or released to any person prior to its official release, except

those officially authorized to handle them. (Sec. 19, IRR of RA 9184)

However, after its official release, it shall be made available to the

public, unless the procurement at hand affects national security.

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 Procuring entity may charge fees for the acquisition of Bidding
Documents based on the following rates:

GPPB Resolution No. 04-2012, 24 February 2012

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 ELIGIBILITY CHECK

 Eligibility check is a procedure to determine if a prospective bidder is

eligible to participate in the bidding.

 The BAC shall use non-discretionary “pass/fail” criteria, as stated in

the REI and the bidding documents, in determining a prospective
bidder’s eligibility,

 The absence, incompleteness or insufficiency of a document shall

make a prospective bidder ineligible to bid for the particular
procurement.

Capacity Development Division 20

 ELIGIBILITY DOCUMENTS

CLASS A DOCUMENTS:

 Legal Documents
 DTI / SEC / CDA Registration Certificate
 Mayor’s permit from the bidder’s principal place of business, or equivalent
document for Exclusive Economic Zones or Areas

In cases of recently expired Mayor’s/Business permits, it shall be accepted

together with the official receipt as proof that the bidder has applied for renewal
within the period prescribed by the concerned local government unit: Provided,
That the renewed permit shall be submitted as a post-qualification requirement in
accordance with Sec. 34.2.

For individual consultants not registered under a sole proprietorship, a BIR

Certificate of Registration shall be submitted, in lieu of DTI registration and
Mayor’s/Business permit.

 Tax Clearance
 ELIGIBILITY DOCUMENTS

CLASS A DOCUMENTS:

 Technical Documents
 Statement of completed and ongoing government and private projects
 Consultant’s statement of its nationality and key personnel are registered
professionals (includes Curriculum Vitae)

 Financial Documents
 Audited financial statement received by the BIR or its duly accredited institution
for the preceding calendar year which should not be earlier than two (2) years
from the date of bid submission.
 ELIGIBILITY DOCUMENTS

CLASS A DOCUMENTS:

 Technical Documents
 Statement of completed and ongoing government and private projects
 Consultant’s statement of its nationality and key personnel are registered
professionals (includes Curriculum Vitae)

 Financial Documents
 Audited financial statement received by the BIR or its duly accredited institution
for the preceding calendar year which should not be earlier than two (2) years
from the date of bid submission.

Capacity Development Division 23

CLASS B DOCUMENTS

Valid JV agreement in case of a joint venture; or

Notarized Statements by each partner that they will enter

into and abide by provisions of the JVA if awarded the
contract

Capacity Development Division 24

 SUBMISSION OF ELIGIBILITY DOCUMENTS

To facilitate determination of eligibility, the BAC shall use

the contents of the PhilGEPS electronic registry of
manufacturers, suppliers, distributors, contractors, and/or
consultants, in accordance with Sec. 8.5.2 of the IRR.
Bidders should now only submit a PhilGEPs Certificate of
Registration and Membership.

Capacity Development Division 25

 SUBMISSION OF ELIGIBILITY DOCUMENTS

However, foreign consultants participating in the

procurement by a Philippine Foreign Service Office or Post
shall be allowed to submit their eligibility documents under
Sec. 24.1 of the IRR, in lieu of the PhilGEPS Certificate of
Registration: Provided, That the winning bidder should
register with the PhilGEPS in accordance with Sec. 37.1.4 of
theis IRR.
(Sec. 24.4.3, 2016 IRR of RA 9184)

Capacity Development Division 26

 FILIPINO CONSULTANTS
Joint Venture are associations among Filipino consultants
and among Filipino and foreign consultants who may wish
to complement their respective areas of expertise.

All members shall sign the contract and shall be jointly

and severally liable for the entire assignment.
At least 60% of the interest is owned by citizens of the
Philippines
All stockholders and directors must be Filipino citizens
and registered professional authorized by a regulatory
board
Capacity Development Division 27
All the members of the joint venture should submit the
required legal documents to assure that it has a legal
personality to business in the Philippines.

However, a joint venture will be considered eligible if any

of its members submits and comply with the Class “A”
Technical and Financial Eligibility Documents.

Capacity Development Division 28

All the members of the joint venture should submit the
required legal documents to assure that it has a legal
personality to business in the Philippines.

Each partner of the joint venture shall submit the

PhilGEPS Certificate of Registration and Membership in
accordance with Section 8.5.2 of this IRR. (Sec. 24.1(b),
2016 IRR of RA 9184)

However, a joint venture will be considered eligible if any

of its members submits and comply with the Class “A”
Technical and Financial Eligibility Documents.

Capacity Development Division 29

 FOREIGN CONSULTANTS

May be an individual, sole proprietorship, partnership,

corporation or joint venture that does not meet the
requirements for a Filipino consultant

 Must be registered with the SEC or any agency authorized

by the law of the Philippines.

 Foreign Consultant must be authorized by a Philippine

government regulatory board.

Capacity Development Division 30

 FOREIGN CONSULTANTS
Notwithstanding the issuance of the NOA, award of contract to
foreign consultant shall be subject to the submission of the
following documents within ten (10) cd upon receipt of NOA:
1. the SEC Certificate of Registration of the foreign consulting
firm, and/or
2. the authorization or license issued by the appropriate GoP
professional regulatory body of the foreign professionals
engaging in the practice of regulated professions and allied
professions, where applicable

(Sec. 37.1.4(a)(iv) in relation to Sec. 24.3.3 of the 2016 IRR of RA

9184)
Capacity Development Division 31
SHORTLISTING is the process of determining the most qualified
consultants from those who have been determined as eligible.
Short list shall consist of 3 to 7 consultants, with 5 as the preferable
number. If one (1) or less than the desired number, the BAC shall
consider such consultant/s as being short listed.

Capacity Development Division 33

The process of eligibility check and short listing
must not exceed 20 cd after opening the eligibility
envelopes (Sec. 24.5.4, IRR of RA 9184).

Capacity Development Division 34

Pre-bid conference is the initial forum where the PE’s
representatives and the prospective bidders discuss the
different aspects of the procurement at hand.

At least 1 required for bids with ABC of > 1M

Attendance of bidders not mandatory

It must be conducted at least 12 cd before the deadline

for Submission and Opening of bids but not earlier than
seven (7) cd from the determination of the shortlisted
consultants.
Capacity Development Division 35
Statement made therein do not modify the terms of the
bidding documents unless specified in a
supplemental/bid bulletin

Minutes of the Pre-bid Conference shall be recorded and

made available to all participants not later than 3 cd after
the Pre-bid Conference.

Capacity Development Division 36

Pre-bid conference may be conducted in person or face-to-face
through videoconferencing, webcasting, or similar technology, or
a combination thereof.
The Pre-Bid Conference is open to the shortlisted bidders.

Capacity Development Division 37

Decisions of the BAC amending any provision of the Bidding
Documents shall be issued in writing through a
Supplemental/Bid Bulletin at least seven (7) cd before the
deadline for the submission and receipt of bids.

The minutes of the pre-bid conference shall be recorded and

prepared not later than five (5) cd after the pre-bid conference,
and shall be made available to prospective bidders not later than
five (5) cd upon written request.

Capacity Development Division 38

The FIRST envelope shall contain the following technical
information/documents:
 Bid security, the form of which shall be at the option of
the bidder
 Organizational chart for the contract to bid
 List of on-going and completed government and private
contracts
 Approach, work plan and schedule
 List of key personnel to be assigned (includes complete
qualifications and experience data)
 Omnibus Sworn Statement
Capacity Development Division 39
The SECOND envelope shall contain the:

 Financial information/documents specified in the

Philippine Bidding Documents

Capacity Development Division 40

This is to determine the bidder with the Highest Rated Bid
(HRB).

TWO METHODS OF EVALUATING BIDS:

1. Quality-Based Evaluation (QBE) considers only the Technical
Proposals in the ranking of consultants. This is applied for:

 Complex or highly specialized assignments for which it is

difficult to precisely define the TOR and the required
inputs from the consultants; and
 Where the assignment can be carried out in substantially
different ways, such that the proposals are not
comparable.

Capacity Development Division 41

2. Quality-Cost-Based Evaluation (QCBE), on the other hand,
considers both the Technical and Financial Proposals in the
ranking of consultants. This is applied in other cases.

 Weight of the Financial Proposal shall be from 15% to

40%
 Oral presentation may be required for complex or
unique undertakings, within 15 cd after the deadline
for submission of bids

Whatever evaluation method is applied, bids are rated

numerically. This can be done in either of two ways: individual
or collegial rating.

Capacity Development Division 42

Individual
 Each evaluator assigns numerical rates to a proposal
 Rates are tabulated and ranked in descending order
 Highest and lowest rates are disregarded

Collegial
 Evaluate as a group
 Rate is the consensus of the evaluators

Bidders should be furnished the results (ranking and total

scores) after the evaluation is approved by the HOPE. Results
are also posted in the PhilGEPS and website of the PE.

Capacity Development Division 43

The entire evaluation process, from proposal opening to
submission of the bid evaluation results to the HOPE,
should not exceed twenty-one (21) cd.
(Sec. 33.4, IRR of RA 9184)

Capacity Development Division 44

SAMPLE EVALUATION (INDIVIDUAL)
EVALUATOR FIRM 1 FIRM 2 FIRM 3 FIRM 4 FIRM 5
A 95 75 84 83 85
B 84 88 86 81 81
C 84 86 85 76 83
D 83 85 85 80 83
E 84 87 86 80 83
AVERAGE
86 84 85 80 83
(5E)
RANK 1 3 2 5 4

AVERAGE
84 86 85 80 83
(3E)
RANK 3 1 2 5 4
Capacity Development Division 45
 Submission of Evaluation and
Technical and Open Technical Ranking of
Financial Proposals only Technical
Proposals Proposals

HOPE-
Notification of HRB Approval/Disappro BAC
for negotiations Recommendation
val of BAC for approval of
(3 cd) recommendation HRB
(2 cd)

QBE PROCESS
Opening of
Negotiations
FLOW
Financial Proposal

Capacity Development Division 46

 * consultants meeting
minimum technical score

Opening and
Submission of Opening and Evaluation of
Technical and Evaluation of
Financial Proposals Technical Proposals Financial
Proposals

HOPE -
Notification of HRB Approval/Disapprova Ranking and
for negotiations l of BAC determination of
(3 cd) recommendation HRB
(2 cd)

QCBE PROCESS FLOW

Negotiations

Capacity Development Division 47

Capacity Development Division 48
QCBE

HOW ARE BIDS EVALUATED

USING THE QCBE PROCEDURE?

Lowest financial proposal given 100 points

Other financial proposals are scored using the following

formula:

Capacity Development Division 49

SAMPLE Sf COMPUTATION Bidder 1
1,000,000
90.9 = 100 x
1,100,000
Bidder 1 = 1,100,000
Bidder 2
Bidder 2 = 1,000,000
1,000,000
Bidder 3 = 1,500,000 100 = 100 x
1,000,000
Bidder 4 = 1,300,000 Bidder 3

Bidder 5 = 1,200,000 66.7 = 100X

1,000,000
1,500,000
Bidder 4
1,000,000
76.9 = 100X
1,300,000
Bidder 5
1,000,000
83.0 = 100 x
1,200,000
Capacity Development Division 50
 HOW ARE BIDS EVALUATED
USING THE QCBE PROCEDURE?

How to compute for the Total Score in QCBE?

Determine the HRB using the formula below:

S = (St x T%) + (Sf x F%)
Where:
S is the Total Score
St is the Technical Score
Sf is the Financial Score
T is the weight given to the Technical Proposal
F is the weight given to the Financial Proposal
Capacity Development Division 51
Bidder 2
St = 86
Sf = 100 S = (St x T%) + (Sf x F%)
T = 70%
F = 30%

S = (86 x 70%) + (100 x 30%)

S = (60.2) + (30)
S = 90.2

Capacity Development Division 52

Negotiations shall cover the following:

Discussion and clarification of the TOR and Scope of Services;

Discussion and finalization of the Procedural Requirements and

work program;

Consideration of appropriateness of qualifications and pertinent

compensation, number of man-months and the personnel, taking
note of over-qualified personnel, to be commensurate with the
compensation of personnel with the appropriate qualifications,
number of man-months and schedule of activities (manning
schedule);

Capacity Development Division 53

Negotiations shall cover the following:

Discussion on the services, facilities and data, if any, to

be provided by PE concerned;

Discussion on the financial proposal submitted by the

consultant for QBE; and

Provisions of the contract.

Capacity Development Division 54

 Except for meritorious reasons, negotiations with any one
consultant shall be completed within ten (10) cd.

 In case the negotiation with HRB fails, PE shall terminate

the negotiation and shall invite the next ranked
consultant for a negotiation.

Capacity Development Division 55

 KEY PERSONNEL
Before Award of Contract
General Rule:
No replacement of key personnel

Exception:
For justifiable reason, such as illness, death, or resignation
provided it is supported by relevant certificates

If there is unjustifiable replacement, PE shall immediately

negotiate with the next ranked consultant
Capacity Development Division 56
 KEY PERSONNEL
After Award of Contract

General Rule:
No replacement shall be allowed until after 50% of the
personnel’s man-months have been served

Exception:
With justifiable reasons, subject to appropriate sanctions
as prescribed in the PBDs

Capacity Development Division 57

 BAC will notify the Bidder with the Highest Rated Bid that it
was determined as such.

 Within 5 cds from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. Other appropriate Licenses and permits required by
law and stated in the Bidding Documents.

Capacity Development Division 58

Legal Requirements
- Licenses, permits, certificates, agreements, and statements

 Technical Requirements
- Stated competence and experience of the bidder and its key
personnel to be assigned
- Sufficiency of bid security as to type, amount, form and wording,
and validity period

Financial Requirement
- Bid price proposal

Capacity Development Division 59

Completed in 12 cd but, may be extended by the HOPE to not
more than 30 cd. In case of post-disqualification of the HRB,
the BAC shall be given the same fresh period to conduct the
post-qualification of the next highest rated bid. (Sec. 34.8,
2016 IRR of RA 9184)

Capacity Development Division 60

 Contract shall be awarded to the bidder with the HRRB or SRRB
at its submitted price or total calculated bid price, whichever is
lower.
 Notice of Award (NOA) is issued by the HOPE
 NGAs and LGUs –15 cd| GOCCs and GFIs – 15 cd

Capacity Development Division 61

 NOA conditioned on the following:
 If joint venture, submission of JVA
 Submission of SEC Registration and/or license or authority
from GoP professional regulatory body
 Posting of Performance Security, form of which shall be at
the option of the consultant
 Signing of Contract within 10 cd
 If required, approvals by higher authority

Capacity Development Division 62

Notice to Proceed

 Issued to the successful bidder together with the copy of the

approved contract within 7cd from date of approval.

 Contract effectivity date should be provided in the NTP,

which should not be later than 7 cd from its issuance. All
notices called for by the terms of the contract shall be
effective only at the time of receipt thereof by the successful
bidder.

 BAC Secretariat should post a copy of the NTP and the

approved contract in the PhilGEPS or PE’s website within 15
cd from issuance of NTP.

Capacity Development Division 63

 VARIATION ORDER

 No additional payment for variation order, if any, shall be

allowed for the consultancy contract.

 PE may revise an existing contract to include additional

deliverables, provided, that such revision will entail no
additional payment or cost. (NPM 119-2013)

Capacity Development Division 64

 ADVANCE PAYMENT

Allowed < 15% of the total contract price

Made upon submission to & PE’s acceptance of an irrevocable

standby Letter of Credit (LC) of equivalent value from a
commercial bank.

Recovered by deducting from progress payments agreed upon

during contract negotiations until fully liquidated

Consultant may reduce standby LC by the amounts refunded in

the advance payment

Capacity Development Division 65

 SUBCONTRACTING

 Limitations:
 Do not exceed 20% of the total project cost
 Exclude material or significant portion of the project

 Follow the conditions below:

 Material portions should be specified in the bidding documents
 PE’s consent is necessary
 PE’s consent will not relieve main contractor from liability

Capacity Development Division 66

 LIQUIDATED DAMAGES
Amount is 1/10 of 1% of the cost of unperformed portion
for every day of delay

Automatically rescind contract when sum of liquidated

damages reaches 10% of the contract amount.

Once the cumulative amount of liquidated damages

reaches ten percent (10%) of the amount of the contract,
the Procuring Entity may rescind or terminate the contract,
without prejudice to other courses of action and remedies
available under the circumstances.
Capacity Development Division 67
CONTACT US AT:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph