Lecture Seminar On Ra 9184 and Its Revised Irr, 7-8 April 2016

THE PHILIPPINE GOVERNMENT
PROCUREMENT SYSTEM
An Overview
Public Procurement
 Process by which government buys
goods and services from suppliers (from
both public and private) for the needs of
its people.
Legal Definition
 A method of procurement which is open
to participation by any interested party

which consists of specific processes,
minimum requirements and mechanics.
Historical Background
Early laws on Procurement
 In 1900, the United States Philippine Commission introduced the
American practice of public bidding in procurement in the Philippines
a. Act No. 22 – Chief Engineer of US Army acted as the purchasing

agent of government
b. Act No. 74 (1901) – mandated contracts for purchase of school

supplies thru invitation to bid and the awarded to the lowest
responsive bidder
c. Act No. 82 (1901) – Provincial Governors and Municipal Mayors to

enter into contracts for public works and purchase of office supplies
thru competitive bidding
d. Act No. 146 – creating Bureau of Supply (supplies, materials,

equipment etc)
e. EO 16 (1936) – No contract shall be entered into or renewed without

public bidding
The Administrative Code of the Philippines (1917)
 Procurement – acquisition of supplies, materials and
equipment for the various offices and branches of
Government (Supply Law)
 Bureau of Public Works – award of contracts for the
construction and repair of national public works and
improvements
Procurement and Supply Law

 Office of Insular Purchasing Agent (1910)
 Division of Purchase and Supply (1932)
 The Procurement Office (1947)
 Bureau of Supply under Department of General Services
(1958)
Pre-Reform Procurement Legal Structures
1. Procurement of Civil Works – Presidential Decree No.
1594 (1978)
2. Procurement of Goods – EO No. 302 (1996), EO No.
201 (2000), as amended by EO 262 (2000)
3. Procurement of Consulting Services – NEDA
guidelines (1998)
4. Procurement among LGUs – RA No. 7160 (1990)
5. EO 40 (2001) – Consolidated procurement rules and
regulations for NGAs, GOCCs and GFIs
Reform Advocates
1. NGOs
 Procurement Watch Inc.
 Transparency International-Philippines
 Transparency and Accountability Network
2. Foreign Aid Organizations

 Asian Foundation Inc.
 US AID
 ADB
 JBIC (JICA)
 WB
Pre-Procurement Reform Situation
Legislative Executive Judicial
Outdated, No oversight Very few

fragmented policy body procurement
and cases filed
inconsistent No standard
procurement procurement Very few
laws and documents convictions
regulations
Non-
transparent
procurement
process
Lack of
monitoring
and feedback
COA mechanism Ombudsman
Lack of trust and confidence in Public Procurement System

(CSOs, People’s Orgs, NGOs, Private Sector)
Problem Areas and Reform Measures
PROBLEMS REFORMS
• Confusion caused by • Enactment of the
fragmented legal system Government Procurement
Reform Act (GPRA)
• Inconsistent policies, rules, • Creation of the
and regulations due to lack Government Procurement
of standards Policy Board (GPPB)
• Lack of transparency • Use of PhilGEPS
• Lack of check and balance • Participation of civil society

Problem Areas and Reform Measures
PROBLEMS REFORMS
• Unresolved procurement • Clearly defined protest

cases/controversies mechanisms in place
• Non-compliance with the • Penal, civil , and

requirements of law
administrative sanctions
available
Enactment of GPRA
Implementing Executive Memorandum

Administrative
Rules and Orders Circulars
Issuances
Regulations
over 100 procurement rules & regulations
Government
Government Procurement
Procurement Reform Act
10 JanuaryAct
Reform 2003
Implementing Rules 2003
10 January and Regulations
Goods,(IRR)
Infrastructure,
Part A
8 October2003
Consulting Services
Revised
Coverage: NGAsIRR and LGUs
2 September 2009
Prevailing Law
The Government Procurement
Reform Act
Republic Act No. 9184
“An Act Providing for the Modernization,
Regulation and Standardization of the
Procurement Activities of the Government
and for other Purposes”
RA 9184 IRR-A Revised IRR
GPPB Res. # 03-2009
Signed by Pres. Signed by Pres. Signed by GPPB, on

Gloria Macapagal- Gloria M. Arroyo on JULY 22, 2009
Arroyo on JANUARY SEPTEMBER 23,
10, 2003 2003
Published on Published on Published on
JANUARY 11, 2003 SEPTEMBER 24, AUGUST 3, 2009
2003
Took effect on Took effect on Took effect on

JANUARY 26, 2003 OCTOBER 8, 2003 SEPTEMBER 2, 2009
Factors of Procurement
• Description
CREATE COMPARE • Bids /
• ABC • Quotations
• Method of (Technical and
Procurement
• BAC/TWG/Sec.
Dynamic Results-driven Financial)
and Creative and Goal-

INTERNAL oriented EXTERNAL
COLLABORATE CONTROL
Collegial
Open, Implementing
Rules and
Decision
(BAC/TWG)
Friendly Structured Regulations
(RA 9184)
and Sharing and Formal
Procurement Policy Documents
Implementing
Circulars and
Rules and
Issuances
Regulations
Philippine Bidding Opinions

RA 9184 Documents
Government
Procurement
Manual
Local Government
Procurement
Manual
Procurement Structure
PRIVATE
GPPB TSO
DBM - PS MANUFACTURERS
SUPPLIERS
DISTRIBUTORS
CONTRACTORS
CONSULTANTS
NATIONAL GOCCs/
GOVT. GFIs LGUs FOREIGN /
ENTITIES SUCS LOCAL
Creation of Government Procurement
Policy Board (GPPB)
GPPB: spearheads the implementation of public

procurement reform initiatives in the Philippines
Inter-Agency Body
 Big procuring entities (defense, education, health, public

works, transportation and communications)
 Oversight agencies (budget, planning, finance, trade,

science and technology, interior and local government,
energy)
 Private Sector
 Resource Persons (audit, anti-corruption agencies)

Creation of the GPPB
 Policy-Making
 Amend implementing rules and regulations of
procurement law (quasi-legislative function)
 Prepare generic procurement manual and standard
bidding forms
 Capacity Development
 Establish a sustainable training program
 Professionalization Program for Public Procurement
Practitioners
 Nationwide procurement training programs for
procurement officials/personnel/private sectors
 Monitoring
 Assist procuring entities improve their compliance
 Review effectiveness of procurement law
GPPB Composition
- DBM Secretary – Chairman

- NEDA Director General - Alternate Chairman
Members:
- Secretaries of - DPWH, DOF, DTI, DOH, DND,
DepEd, DILG,DOST, DOTC and DOE or their
duly authorized representatives;
- Representative from the private sector to be
appointed by the President upon the
recommendation of the GPPB
- Resource person from the COA
Application
 R.A. 9184 Applies to:

a) National Government Agencies (NGAs)
b) State Universities and Colleges (SUCs)
c) Government Owned or Controlled Corporations (GOCCs)
d) Government Financial Institutions (GFIs)
e) Local Government Units (LGUs)
 R.A. 9184 governs the procurement of:

a) Infrastructure Projects
b) Goods (incl. Supplies, Materials, and Related Services)
c) Consulting Services
Scope and Coverage
 Section 4, Revised IRR
 All fully domestically-funded procurement activities
 All foreign-funded procurement activities, unless

otherwise provided in a treaty or int’l/executive
agreement
 As may be agreed upon by the GOP and IFI in their

treaty or int’l/executive agreement
 Projects funded from foreign grants
 Projects for International Competitive Bidding
 Consulting Services for National Competitive Bidding

Scope and Coverage
 GOP negotiating panels shall:
 Adopt as default position, use of the IRR or selection

through competitive bidding
 Explain in writing if treaty or int’l/executive agreement

states otherwise
Non-Application of GPRA
 Shall not apply to:

 Foreign Grants covered by RA 8555 – An Act Excluding
Official Dev. Assistance (ODA) from the Foreign
Debt Limit in order to Facilitate the Absorption and
Optimize the Utilization of ODA Resources, unless GOP
& IFI agree otherwise;
 Acquisition of Real Estate Property (RA 8974)
 Public-Private Sector Infrastructure or Dev. Projects (RA
6957 as amended by RA 7718)
Governing Principles
Transparency Competition Streamlined System of Public

Process Accountability Monitoring
• Wider • Equal
disseminati opportunity • Uniformly • Answerable • Awareness
on of bid to all applicable and
opportuniti eligible to all Vigilance
es bidders government
agencies
• Effective
and efficient
method
Key Features of GPRA
 Covers procurement of all government agencies
 General Rule is Public/Competitive Bidding
 Alternative Methods of Procurement allowed in highly exceptional

cases
 Use of the Approved Budget for the Contract (ABC) as ceiling for
the bid price
 Use of transparent, objective, and non-discretionary criteria
 Increased transparency in the procurement process
 Professionalization of procurement officials
 Inclusion of Penal and Civil Liabilities

Philippine Procurement Paradigm
Assess • Review studies • Post/Advertise Procure

• Consolidate into opportunity
APP • Open and evaluate
• Decide procurement bids
method • Post-qualify
• Approve APP • Award and enter
• Determine into contract
readiness
Identify • Cost-benefit • Oversee Implement

analysis implementation
• Feasibility study • Inspect and accept
• Market study deliveries
• PPMP • Release payment
NEEDS SATISFACTION
Procurement Organization
HOPE
The Bids and Awards Committee (BAC)
General Rule:
Single BAC in Head Office
Exception:
To expedite the procurement process for practical
intents and purposes where the number and
complexity of the items to be procured warrants
BAC Composition:
The BAC shall have at least FIVE (5) MEMBERS, but
not more than SEVEN (7) MEMBERS
BAC for NGAs, GOCCs, GFIs &
BAC for Local Government Units
SUCs
- The Local Chief Executive shall
- The members including the Chairman
designate the members of the BAC.
shall be designated by the Head of the
Procuring Entity
- The BAC members shall elect among
Regular Members -
themselves who shall act as the Chairman
1. Chairman (3rd Ranking Permanent
Official);
- Members:
2. Member representing the Legal or
1. Budget Office
Administrative areas of the
2. Legal Office
procuring entity;
3. Engineering Office
3. Member representing the Finance
4. General Services Office
Area of the Procuring Entity.
5. Administrative Office
Provisional Members -
6. End User Office
1. An officer who has Technical
7. Other Regular Office
expertise relevant to the procurement.
2. Representative from the end user
unit.
BAC
 Responsibilities of the BAC:
1. Recommend Method of Procurement
2. Create TWG
3. Advertise/Post Invitation to Bid
4. Pre-Procurement & Pre-Bid Conferences
5. Eligibility Check
6. Receive & Open Bids
7. Evaluate Bids (with assistance of TWG)
8. Post-Qualification
9. Resolve Motions for Reconsideration
10. Recommend Award of Contract
11. Recommend Imposition of Sanctions
Secretariat
 The BAC Secretariat
 Head of the Procuring Entity shall create a BAC
Secretariat to serve as the main support unit of
the BAC
 He may designate an existing organic office to
serve as BAC Secretariat
 To promote professionalization, he may
reorganize the organic office by designating it
as BAC Secretariat and redeploying appropriate
existing personnel to it to perform this function
and other procurement related tasks
Responsibilities of the BAC Secretariat
1. Provide administrative support to the BAC

2. Organize all BAC and TWG meetings
3. Attend BAC meetings as Secretary
4. Prepare minutes of the BAC meetings
5. Custody and distribution of procurement documents
6. Assist in managing procurement process
7. Monitor procurement activities and milestones
8. Prepare APP from consolidated PPMPs
9. Arrangements for Pre-Procurement and Pre-Bid
Conferences and bid openings
10. Central channel of communications for BAC with all
parties
11. Assist BAC in preparing drafts of Resolutions
Observers
 In addition to the representative of COA, the
BAC shall invite, IN ALL STAGES of the
procurement process, TWO (2) OBSERVERS to
sit and monitor the procurement proceedings, to
wit:
1. Duly recognized private sector association
2. Non-government organization (NGO)
 The observers shall come from an organization
duly registered with the SEC, and should:
1. Have knowledge, experience or expertise in
procurement
2. Have no direct or indirect interest in the contract to
be bid out
3. Comply with other criteria determined by the BAC
Honoraria
 Budget Circular
No 2004-05A
dated October 7, 2005
(Guidelines on the Grant of
Honoraria to Government Personnel
Involved in Government
Procurement)
 As Amended by Budget Circular
No. 2007-3
dated November 29, 2007
Honoraria
• The Chairs and

members of the BAC
and the TWG may be
paid honoraria only
for successfully
completed
procurement projects
Procurement Planning
What is a Project Procurement

Management Plan (PPMP) ?
it is a procurement plan for goods, infrastructure

projects and consulting services that shall specify
the type of contract to be employed, extent/size of
contract, scope/packages, the procurement
methods to be adapted, (indicating if the
procurement task is to be “outsourced”), time
schedule for each procurement activity and the
estimated Budget for each procurement.
Procurement Planning
Budget BAC Sec / Approving

End User
Office BAC Authority
Evaluate Approve
PPMP and Review and GAA/
1 Prepare PPMP include in consolidate Corporate
budget into APP Budget/
proposal Ordinance
Finalize HOPE or 2nd
2 Revise PPMP procurement in rank
mode approves APP
PPMP Form
Procurement Form No. 1

PROJECT PROCUREMENT MANAGEMENT PLAN
Procurment Unit:_________________________
Calendar Year:______________
Type of Contract To Extent/Size of Contract Procurement TIME SCHEDULE ESTIMATED

Be Employed Scope/Packages Method J F M A M J J A S O N D BUDGET
Prepared By: Approved By:
_____________________________________
GSO/EO/PDC/End User Head, End User of Procuring Entity
Approved Budget for the Contract
(ABC)
 Refers to budget for the contract duly

approved by the Head of the Procuring Entity
 Approved Budget is CEILING for bid prices
 Invitation to Bid should specify the
APPROVED BUDGET for the contract and the
source of funding
 In determining ABC, consider:
 Appropriation for the project/procurement
 Market price
 Inflation and cost of money directly related to the
procurement timetable
Annual Procurement Plan
(APP)
 It is a consolidation of all Project

Procurement Management Plans for a
procuring entity that is scheduled for
procurement for a calendar year. It shall
also include provisions for foreseeable
emergencies based on historical
data/records. Implementation of projects
not included in the APP shall not be
allowed.
APP Form
Procurement Form No. 2
ANNUAL PROCUREMENT PLAN
Procuring Entity / Units:_________________________
Calendar Year:______________
Extent/Size of Contract Procurement TIME SCHEDULE APPROVED BUDGET

Type of Contract
Scope/Packages Method J F M A M J J A S O N D FOR THE CONTRACT
A. Procurement of
Goods/
Supplies/Materials
B. Procurement of Civil
Works
C. Procurement of
Consulting Services
D. Provision for
Emergency Purchases
TOTAL
Prepared by: Recommended by: Approved by:
Name and Signature Name and Signature Name and Signature of Head
Position Position of Procuring Entity
Position
Procurement Methods
 All Procurement shall be done through competitive

bidding except as provided in R.A. 9184
 Resort to alternative methods shall be made
 Only in highly exceptional cases
 To promote economy and efficiency
 Justified by conditions specified in R.A. 9184 and its

IRR
Procurement Methods
Method Goods Infra Cons
1. Competitive Bidding   
2. Limited Source Bidding  
3. Direct Contracting 
4. Repeat Order 
5. Shopping 
6. Negotiated Procurement   
Bidding Process
Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference
Opening of
Bid Opening of
Technical Proposal
Submission Financial Proposal
(incl. eligibility docs)
Contract
Bid Evaluation Post-qualification
Award
Assessment Methodology
Agency Procurement Compliance and Performance Indicators
(APCPI)
Types of Scoring and Rating
• Uses a four-point rating scale based on recommended benchmarks
• (22 Sub-indicators)
Numerical Score Qualitative Rating Criteria
3 Very Satisfactory Ideal Benchmark
2 Satisfactory Above Benchmark
1 Acceptable Within Benchmark
0 Poor Below Benchmark
• Uses a two-point rating scale based on degree of compliance with a set of

conditions (4 Sub-indicators)
Numerical Score Qualitative Rating Scoring Range
3 Very Satisfactory Compliant
0 Poor Not Compliant
• Uses a four-point rating scale based on degree of compliance with a set of

conditions (14 Sub-indicators)
Numerical Score Qualitative Rating Criteria
3 Very Satisfactory Fully Compliant
2 Satisfactory Substantially Compliant
1 Acceptable Partially Compliant
46 0 Poor Not Compliant
APCPI Objectives
• Self-assessment tool to keep a record of agency’s

performance of their procurement system at a given period
of time
• Monitoring tool to find out if the country's national

compliance to procurement regulations and in
implementing the agency level Action Plans.
• An evaluation tool to determine the potential risk of the

agency procurement system for audit purposes
• A tool to find out the capacity of implementing agencies

THANK YOU
CAPACITY DEVELOPMENT DIVISION
GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)
Outline
I. Scope and Application
II. Procurement Organizations
III. PhilGEPS
IV. Bidding Documents
V. Bidding Procedure
VI. Detailed Evaluation of Bids
VII. Post-qualification
VIII. Award of Contract
IX. Alternative Methods of Procurement
X. Contract Implementation
XI. Protest Mechanism
XII. Blacklisting
Capacity Development Division 2

SCOPE AND APPLICATION
Scope and Application:
Authority of GPPB
On Granting exemption from application of RA 9184
 It is beyond the authority of the GPPB to grant exemptions from the

application of RA 9184 and its IRR as it does not have the mandate
to legislate nor determine the coverage of the law. The GPPB
however, may render contemporaneous construction of the
provisions of the law pursuant to its quasi-legislative fiat, and issue
rules and regulations on the basis of its rule-making power.
NPM 100-2013

Authority of GPPB
On Resolving issue on post-disqualification
 GPPB cannot grant a bidder’s request to resolve the issue of their
post-disqualification. Nonetheless, they are urged to follow the
prescribed rules and procedures on Protest Mechanism laid down in
Section 55 of the IRR of RA 9184.
 Itcannot dictate to the procuring entity how to decide or resolve

issues relative to its procurement activities. The GPPB is a quasi-
legislative body mandated to formulate and amend the IRR. It has
no quasi-judicial powers and functions; hence, cannot investigate
and ascertain the existence of facts, hold hearings, and exercise
discretion of a judicial nature over actual controversies with regard
to the conduct of bidding by procuring entities.
NPM 104-2013

Authority of GPPB
On Declaring Failure of Bidding
 GPPB is not vested with the authority to declare a PE’s

procurement activity to have incurred a failure of
bidding.
 Declaration of failure of bidding is within the authority

and accountability of the Bids and Awards Committee
and the Head of the Procuring Entity to exercise, under
Sections 35 and 41 of the IRR of RA 9184, respectively.
NPM 99-2013

Non-Applicability of RA 9184 and its IRR
Lease Concession Agreement

 This may be most appropriately conducted following PPP-related
laws, rules, and regulations, such as BOT Law or JV Guidelines.
NPM 48-2013
Partnership with interested private entities

 Transactions involving the contribution of money/capital, services,
or assets by the parties to the transaction is considered a Joint
Venture (JV) agreement under Section 5.7 of the Guidelines and
Procedures for Entering Into Joint Venture Agreements Between
Government and Private Entities (JV Guidelines).
NPM 58-2013

Treaty or International Executive Agreements
 Procurement rules shall not apply in cases when a Treaty or

International or Executive Agreement expressly provides use of
foreign government/foreign or international financing institution
procurement procedures and guidelines.
NPM 47-2013

Disposal of Confiscated Properties
 The Manual on the Disposal of Government Property

covers the disposal of government properties. The
issuance of rules or guidelines on disposal of
government properties is outside the mandate of GPPB.
NPM 03-2014

Leasing Out of Government Properties for Private Use
 As long as lease out undertakings do not involve

expenditure of public funds for the procurement of
goods, works and consulting services, RA 9184, its IRR,
and its associated rules will not apply.
 Transactions involving lease of government properties

for private use are covered by Executive Order No. 301,
series of 1987 (EO 301).
NPM 10-2014
Capacity Development Division

Engagement of Personnel under Job Order and Contract of Service
 RA 9184 and its IRR will not apply in the hiring of individual
personnel under Job Order or Contract of Service :
a. The engagement does not require that level of expertise as
primary consideration for its selection,
b. It is not what is contemplated under the definition and
enumeration of what involves General Support Services and
analogous services.
 However, RA 9184 and its IRR find applicability in the engagement

of non-personal service through sole proprietorship, partnership or
a corporation contracted for the purpose.
NPM 15-2014

Expandable Supplies
Spare Parts as Expendable Supplies
 If the spare parts sought to be procured have a life expectancy of

more than one (1) year but which shall have decreased substantially
in value after being put to use for only one (1) year, then the same
shall be classified as expendable supplies.
NPM 14-2014

Procurement of Second-Hand Equipment
 Procurement of second-hand, refurbished, or reconditioned

equipment is allowed under RA 9184 and its IRR.
 The decision of PE to procure second-hand, refurbished, or

reconditioned equipment does not require prior approval or
confirmation from GPPB inasmuch as the responsibility to identify
projects, as well as its requirements and specifications, including
considerations for the acquisition of brand new or second hand
goods/ equipment, rests with the procuring entity.
NPM 11-2014

General Support Service
Engineering Services as General Services
 For the maintenance of PE’s offices and facilities,

engineering services may be considered as within the
contemplated coverage of general support services, in
the same vein as are the services for janitorial and
security.
NPM 82-2013

General Support Service
Encoding Service as General Support Service

 “General support services” is understood to include those services
that are essential, indispensable, or necessary to support the
operations of the procuring entity or for the enhancement of the
welfare of its personnel, including non-personal or contractual
services.
 If the encoding services being acquired are essential, indispensable,

or necessary to support of PE’S operations, then such service may be
considered within the coverage of the term “general support
services”.
NPM 127-2013

Accreditation of Bidders
Accreditation System
 Municipal Order requiring an accreditation process for Bidders as a

condition precedent for their participation in procurement activities
of the local government unit runs counter RA 9185 and its IRR
would limit the participation of bidders only to those accredited
suppliers, to the exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic principles of
competitive bidding.
NPM 48-2013

Registry System
 Registry system 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.
 Prospective bidders not included in the registry system used by the

procuring entity, whether the PhilGEPS or its own manual or
electronic system, should not be precluded from participating in any
procurement opportunity.
NPM 97-2013

Bidder’s Right to Ask Questions
Protest Mechanism
 Section 55 of the IRR states that prospective bidders are allowed to question
decisions of the BAC at any stage of the procurement process by filing a
request for reconsideration within three (3) calendar days from receipt of
written notice or upon verbal notification of such decision.
Clarifications
 Section 22 also affords bidders the opportunity to raise concerns or
clarifications on the requirements, terms, conditions, and specifications
stipulated in the bidding documents for the contract to be bid. Questions or
clarifications pertaining to the matters that may be discussed during the
pre-bid conference must be raised at least ten (10) calendar days before the
deadline set for the submission and receipt of bids
NPM 49-2013

Mixed Procurement
Classification of ICT Services
 An ICT procurement consisting of different components involving

goods, infrastructure project or consulting service is regarded as a
mixed procurement and the nature thereof is based on the primary
purpose of the contract, which must be determined by the procuring
entity based on its identified needs and the best way by which these
needs may be addressed, managed and satisfied.
NPM 88-2013

Mixed Procurement
“Installation” of air conditioning system as a Construction Activity
 The motivation and underlying reason behind the project is of

primordial importance as this will dictate the nature and
categorization of the procurement and the process and procedures
to be adopted whether the procurement activity is treated as goods
or infrastructure project.
NPM 04-2014

PADPAO Rates
 PADPAO rates are rates issued and prescribed by the PADPAO, an
organization of private security agencies (PSAs), in order to ensure
that its member security agencies pay uniform rates for the service
of its security guards.
 However, said rate must be compliant to the wage orders issued by

RTWPB which form part of the labor laws and standards in order to
qualify PSA as bidder. Their compliance is ensured through the
submission of an Omnibus Sworn Statement.
 Non-compliance therewith shall result in the bidder’s

disqualification.
NPM 91-2013

Extension of Mandatory Periods
 Should PE decides to extend the period, it must show and provide

compelling, sufficient, valid, reasonable, and justifiable cause. Such
valid justification, however, will only free officials from penal
sanction or liability, but not from applicable administrative and civil
sanctions or liabilities under existing laws, rules and regulations
NPM 57-2013

Trade-in Transaction
 Proposal amounts to an acquisition of brand new equipment, rather
than just mere repair services, which is different from the original
procurement activity.
 Proposal is akin to a trade-in transaction. It involves two distinct,

but relatively connected activities of government, namely, Disposal
(EO 888) and Procurement (RA 9184).
 Although trade-in is not prohibited, the PE must have intended to

resort to such scheme from the start, and not merely as an after-
thought, considering that corresponding disposal and procurement
processes and documentations must be complied with.
NPM 41-2013

Joint Venture Agreements
 The IAESP reveals that the Project pertains to a JV between a GOCC

and a private entity in pursuit of development goals.
 The rules for such transaction are either covered by the Joint Venture
Guidelines issued by NEDA pursuant to §8 of EO 423 (s. 2005); or by RA
6957 (BOT Law), as amended by RA 7718.
 Since the Project involves a JVA, RA 9184 and its IRR, including its
associated guidelines, such as the Guidelines on the Sale of Bidding
Documents, do not apply.
NPM 28-2013

Submission of Letter of Intent (LOI)
 The submission of LOI is no longer required upon the

effectivity of GPPB Resolution No. 27-2012.
NPM 101-2013

Projects Partly Funded by Private Funds
 As long as public fund is utilized or contemplated to be

spent for any procurement activity, it shall by force, fall
within the ambit of the present procurement law.
NPM 44-2013

Grant of Honoraria
 Payment of honoraria is limited to procurement that involves
competitive bidding:
o Competitive Bidding (Section 10),
o Limited Source Bidding (Section 49),
o Negotiated Procurement under Two-Failed Biddings (Section 53.1)
 Honoraria will not be paid when procurement is through all the

other alternative modes of procurement
NPM 59-2013

Grant of Honoraria
 Section 5 of DBM BC 2004-5A provides that the Chairs and members of the
BAC and its TWG may be paid honoraria only for successfully completed
procurement projects.
 If the items awarded in the first bidding and those subject of the re-bidding
belong in the same procurement project that is identified, described,
detailed, scheduled, and budgeted for in the procuring entity’s PPMP, the
BAC may only claim honoraria once all items have been successfully
awarded. Hence, if the BAC has already received its honoraria, it should no
longer be entitled to claim on the basis of the successfully awarded items
during the re-bid.
 The grant of honoraria shall not exceed the rates and limits prescribed in
Sections 5.3 and 5.4 of BC 2004-5A
NPM 108-2013

PROCUREMENT
ORGANIZATIONS
Procurement Organizations:
Head of the Procuring Entity
 Designation as OIC, although temporary in nature, entails the assignment
of additional functions bestowed upon him – functions which otherwise
would have been performed by a duly appointed regular Chief.
 Designation entails exercise and execution of actual, related, incidental

power and authority inherent in the office, unless designation contains
specific reservations, limitations, or qualifications on the functions to be
performed.
 Hence, the OIC is authorized to make decisions on procurement activities of

the PE, subject to the limits stated in the Department Circular.
NPM 14-2013

BAC Functions
On Declaration of failure of bidding

 The authority of the BAC to declare a failure of bidding is limited to
instances enumerated in Section 35.1 of the IRR of RA 9184, specifically,
when (a) no bids are received, (b) all prospective bidders are declared
ineligible, (c) all bids fail to comply with all the bid requirements or fail
post-qualification, or, in the case of consulting services, there is no
successful negotiation, or (d) the bidder with the LCB or HRB refuses to
accept the award.
 The BAC cannot declare a failure of bidding for reasons other than those
provided in Section 35. It cannot exercise the reservation clause provided in
Section 41 of the IRR in declaring a failure of bidding since such authority
exclusively belongs to the HOPE.
NPM 122-2013

BAC Functions
On evaluation of bids
 The BAC, in line with its function of determining the

eligibility of prospective bidders, conducting the evaluation of
bids and undertaking post-qualification, is in the position to
rate bidders as having “passed” or “failed” in complying with
the requirements in the Bidding Documents in accordance
with the provisions of RA 9184 and its IRR.
NPM 94-2013

Qualifications of a BAC Chair
 Procuring entity’s compliance with the ranking requirement under
Section 11.2.2 of RA 9184 and its IRR for its BAC composition and
membership is based on the term “permanent”.
 The term “permanent”, does not qualify whether the personnel

occupying the plantilla position holds the same in a contractual,
regular, or permanent status, rather the concern specifically refers to
whether the position exists within the organizational structure of the
procuring entity.
 HOPE may appoint someone as BAC Chairperson provided that he

is occupying a plantilla position that is at least third ranking within
the organizational structure of the PE and is not a designated
approving authority.
NPM 95-2013

Qualifications of a BAC Chair
4th Level Official cannot be designated as BAC Chairperson
 The absence of a personnel occupying the position of Sr. Vice

President (second ranking), does not make the plantilla positions for
the Sr. Department Manager (fourth ranking) a third ranking plantilla
position.
 As long as the entire organizational structure has the Sr. Vice

President position in the plantilla, the Sr. Department Manager
position remains a fourth ranking plantilla position, for which reason
the Sr. Department Manager cannot be designated as BAC Chairman.
NPM 02-2014

Qualifications of a BAC Vice-Chairman
Executive Assistant of the General Manager as BAC Vice-
Chairperson
 The EA of the GM may be appointed as Vice-Chairman of the BAC

provided that he possesses all the qualifications as a regular member of the
BAC under Section 11.2.2(b) or Section 11.2.2(c) of the IRR of RA 9184, and
does not have an approving authority delegated unto him by the HOPE.
 The prohibition stated in Section 11.2.5 of IRR of RA No. 9184 is limited to

the HOPE and/or approving authority wherein they cannot be the
Chairman or a member of the BAC. It is the approving authority that may
be deemed the alter-ego of the HOPE. Thus, for the Alter-Ego Principle to
apply, the EA should be the designated approving authority by the HOPE.
NPM 134-2013

Qualifications of a BAC Member
4th Level Official as BAC Member
 The BAC for regional offices consists of at least three (3) regular
members, and at least two (2) provisional members. The regular
BAC members, including the BAC Chairperson, shall be at least
third ranking permanent officials.
 Fourth ranking permanent officials of regional offices are

disqualified from becoming regular BAC members, but may be
designated as a provisional BAC member since Section 11 of the IRR
does not require a provisional BAC member to be of a specific rank,
thus implying that an employee of any rank can qualify as a
provisional BAC member.
NPM 001-2014

Concurrent Positions in the BAC and its Secretariat
 RA 9184 and its IRR do not categorically prohibit the HOPE from
designating the same personnel as BAC member and BAC
Secretariat Head.
 Nevertheless, procurement officials should avoid holding

concurrent positions in the BAC and its Secretariat in accordance
with the thrust to professionalize the procurement organization
geared towards strengthening the procurement functions in order to
increase operational effectiveness and efficiency.
NPM 001-2014

Authority of BAC Sec Head to Notarize
 It is not advisable that the BAC Secretariat Head be the same Notary
Public who will notarize the ensuing contract for the project
although the BAC Secretariat Head is, technically speaking, not a
party to a contract between the procuring entity and the winning
bidder.
 It is worthy to stress that questions, insinuations and doubts on the

execution of documents should be obviated at all times.
NPM 66-2013

Authority of BAC Sec Head to Sign Document
 BAC Secretariat Head’s authority to sign procurement-related

documents should be confined to those that are within the scope of
her duties and responsibilities under Republic Act (RA) No. 9184
and its IRR, and should exclude those that require the exercise of
discretion, consent or approval on matters under the jurisdiction of
a different authority
NPM 66-2013

Authority of BAC Sec to Open and Examine Bids
 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
bidder's compliance with the required documents for purposes of
eligibility
 Such authority cannot be delegated to the BAC Secretariat
NPM 69-2013

BAC Sec to Conduct Limited Source Bidding
 Section 12.1 of the IRR of RA 9184 categorically vests upon the BAC the authority to
process and evaluate the procurement requirements of bidders.
 The BAC Secretariat, which is tasked to assist the BAC, cannot be delegated with the
functions expressly conferred upon the BAC by RA 9184 and its IRR. An exception to
this policy was established for procurement using Shopping and Negotiated
Procurement (Small Value Procurement) under GPPB Resolution No. 09-2009 for the
reason that these particular methods of procurement are used for contracts that are of
considerably small amount and are generally simple/routinary, such that delegating
the functions to another unit will be more efficient and economical for the procuring
entity.
 However, GPPB Resolution No. 09-2009 did not provide that the same exception be
applicable to LSB inasmuch as the circumstances surrounding procurement activities
using LSB are not similar to those covered by Shopping and Negotiated Procurement
(Small Value Procurement).
NPM 135-2013

Procurement Organization:
Provisional Member
 Alter Ego principle (also Doctrine of Qualified Political Agency) falls
under the control power of the President, and dictates that
department secretaries are considered alter egos of the President.
 Approving authority may be deemed the alter ego of the HOPE.

Thus, for the Alter Ego principle to apply, the EA must be
designated as the approving authority.
 It is only when the EA is an approving authority that it is

disqualified under §11.2.5 of the IRR of RA 9184 from becoming a
BAC member.
NPM 32-2013

Separate BAC
 The HOPE may create a separate BAC pursuant to §11.1.2 of the IRR to
expedite the bidding of its numerous projects without the need of securing
any approval or ratification from GPPB, provided it is warranted by: the
number of the items, and the complexity of the items to be procured by the
PE.
 Rank requirement for BAC members provided in §11.2.2 of the IRR should
be followed in the creation of separate BACs.
NPM 04-2013
 State University has authority to establish separate BACs upon its

determination that the creation of separate BACs according to its
geographical location is necessary to expedite the procurement process.
 It may create separate BACs for each of its campuses.
NPM 26-2013

Special BAC for Multi-Agency Joint Procurement
 The BAC composition established in Section 11.2 of the IRR of RA

9184 requires that the members be permanent officials of the
procuring entity, i.e., those occupying plantilla position in the
procuring entity.
 The concept of a multi-agency joint procurement that will be

conducted using a Special BAC composed of the agencies’ respective
officials will run counter to the provisions of RA 9184 and its IRR.
NPM 131-2013

Conflict of Interest
 Conflict of interest arises when, in the case of the subject matter of
the inquiry, the Chairman of the BFP-BAC that conducted the earlier
procurement was eventually designated as OIC-BFP Chief.
 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.
NPM 14-2013

PhilGEPS
PhilGEPS:
Registration
 §8.5.1 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 cost of procurement.
NPM 34-2013

PhilGEPS:
Registration Certificate
 Although bidders are not precluded from submitting the post-qualification
documents required in §34.2 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 BAC’s 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.
NPM 19-2013

BIDDING DOCUMENTS
Bidding Documents:
Wage Adjustment in ABC
 §35.2 of RA 9184 IRR provides that when there is failure
of bidding, the BAC shall conduct mandatory review
and evaluation of the terms, conditions, and
specifications in the bidding documents.
 Prior to the 2nd bidding, PE may modify the ABC for its
procurement of security services to incorporate the new
minimum wage rate/adjustment, subject to the necessary
approval processes in changing the APP to reflect the
revised ABC for the project.
NPM 18-2013

Bidding Documents:
Authorized Representative
 §25.2 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.
 §29 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.
NPM 43-2013

Bidding Documents:
Technical Specifications
 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.
NPM 22-2013

Bidding Documents:
Net Financial Contracting Capacity (NFCC)
Required Amount of NFCC
 Participating 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 bidder’s financial liquidity and absorptive capacity in
carrying out the contractual obligations required by the lots to which
it participated in.
NOTE:
Credit Line Commitment shall no longer be accepted as an alternative to the
prospective bidder’s computation of Net Financial Contracting Capacity.
(GPPB Resolution 20-2013)
NPM 76-2013

Bidding Documents:
NFCC Computation
 During the preliminary examination of bids, the BAC shall examine

the NFCC computation submitted by the bidder based on a non-
discretionary “pass/fail” criterion.
 Bidders shall be deemed compliant with the requirement if the

submitted NFCC computation is at least equal to the ABC;
otherwise, it will be declared “failed” regardless of the fact that the
computation was based on an erroneous data or a mistake in
arithmetical computation.
NPM 08-2014

Bidding Documents:
Basis in the Computation of NFCC

 The total “current” assets and liabilities as indicated in
the prospective bidder’s AFS, which is stamped
“received” by the BIR or its duly accredited and
authorized institutions for the preceding calendar year,
should be the basis for computing the NFCC.
NPM 08-2014

Bidding Documents:
Similar Contracts
Nature of Similar Contracts
 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.
 As guidance, a contract shall be considered "similar" to the contract
to be bid 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.
NPM 42-2013

Bidding Documents:
Similar Contracts
 Definition 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.
NPM 54-2013

Bidding Documents:
Single Largest and Completed Contract (SLCC)
 IRR does not give the PE the option to adopt a different
criterion for eligibility.
 PE cannot aggregate the amount of two (2) contracts as

compliance with the eligibility criterion on SLCC under
Section 23.5.2.5 of the IRR.
NPM 85-2013

Bidding Documents:
Sub-contracting to be included in SLCC
 IRR of RA 9184 does not limit the contracts that should be included
in the statement of all ongoing and completed contracts to those
where the bidder is the principal or main contractor. It can be
inferred from the PBDs that sub-contracts should be included in the
statement together with the percentage of the bidder’s participation
as a sub-contractor.
NOTE:
The 10-year limitation under Section 23.5.2.5 is no longer applicable.
(GPPB Resolution No. 11-2012, )
NPM 77-2013

Bidding Documents:
SLCC Requirement for Small A and Small B Projects
 A contractor will be qualified even if it does not have at least fifty

percent (50%) SLCC if such bidder is either a Small A or Small B
contractor participating in a project the Approved Budget for the
Contract for which is within fifty percent (50%) of its ARCC.
NPM 118-2013

Bidding Documents:
SLCC Requirement for Several Lots
 In the case of a procurement activity that is divided into several lots,

where each lot may result in a separate contract, the ABC for each lot
becomes the reference of the required minimum percentage of the
amount of the SLCC to be complied.
 The participation of a bidder in several lots does not require the

submission of an SLCC that will specifically correspond to each lot.
It is sufficient that the bidder presents an SLCC that complies with
the percentage requirement for every lot that it participates in.
NPM 123-2013

Bidding Documents:
Statement of Ongoing Contracts
 Bidder should submit a statement of all its on-going government
and private contracts within the relevant period stated in the Bid
Documents, including contracts awarded but not yet started, if any,
as part of the Class “A” Eligibility Documents.
 Additional documentary proof to support the statement of on-going

contracts such as contracts and notices to proceed need not be
attached. However, the BAC may request for additional proof (e.g.
copies of contracts and notices to proceed) during post-qualification
in order to verify, validate and ascertain all statements made and
documents submitted by the bidder.
NPM 86-2013

Bidding Documents:
 Projects where a NOA has been issued, but for which no contract
has been signed yet, should be included in the statement of ongoing
government and private contracts because these are already
considered awarded contracts.
NPM 111-2013

Bidding Documents:
 The statement of ongoing government and private contracts to be
submitted by the bidder should include all of its ongoing
government and private contracts, even if they are immaterial or
dissimilar to the contract to be bid.
 GPPB Resolution No. 29-2012 provides that the failure to include or

disclose complete information in the statement of contracts shall
result in the “disqualification of the bidder for non-compliance with
the eligibility requirement under Sections 23.1 or 24.1 of the revised
IRR.” and may also be a ground for blacklisting under Section 65.3
(a) or (b) of the revised IRR
NPM 08-2014

Bidding Documents:
Charging of fees
 Decision 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-a-vis the effects on competition
and participation of bidders.
 However, fees must conform with the standard rates for the sale of
bidding documents under GPPB Resolution No. 04-2012, which took
effect on 4 September 2012.
NPM 68-2013

Bidding Documents:
Discounts
 Discounts 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-à-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.
NPM 17-2013

Bidding Documents:
Discounts
 Although Section 32.2.4 of the IRR does not mention the word “discount”, ITB Clause
27.4 of the PBDs for the Procurement of Infrastructure Projects provides that the
determination of the Lowest Calculated Bid requires the evaluation and correction for
computational errors, discounts and other modifications.
 If the offered discount does not qualify the methodology of its application, it can be
presumed that the discount will apply to the whole amount of the identified bid
price. For instance, the bidder’s offer is PhP961,474.88, and offered a discount 5%. The
total calculated bid will be determined by deducting 5% from the bid price of
PhP961,474.88.
 The clause “excluding any discounts offered in item (d) below found in paragraph (b)
of the Bid Form, please note that considering that discounts cannot be offered in
relation to performance security, such clause will have no effect on the computation
of the bid price vis-à-vis the offered discount to arrive at the total calculated bid price.
NPM 126-2013

Bidding Documents:
Re-advertisement of IB
 Advertisement or posting requirement under §21 RA 9184 IRR
serves as a notice to bidders informing them, directly or by
reference, of the matters to be bid upon and of the time and place of
receiving bids.
 Re-advertisement is not necessary since the original IB that was

advertised already provided the necessary and relevant information
that would sufficiently notify the public of the procurement
opportunity, including relevant components and the corresponding
ABC for each component.
NPM 46-2013

Bidding Documents:
Supplemental/Bid Bulletin
 §22.5.2 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 PE’s website, in order to address aspects of competition and
transparency.
NPM 46-2013

Bidding Documents:
Conduct of a new pre-bid conference
 In the case of a new procurement activity or a re-bidding activity, bidders

are informed of the details of the pre-bid conference through the IB, which
should comply with the posting/advertisement requirements under Section
21.2 of the IRR of RA 9184.
 In case the BAC decides to conduct new pre-bid conference not included in
the IB, it has to issue a Supplemental/Bid Bulletin on the matter. The
Supplemental/Bid Bulletin should be posted on the PhilGEPS and the
website of the procuring entity, if available.
 The BAC must inform bidders who have submitted bids before the issuance
of Supplemental/Bid Bulletin.
NPM 124-2013

Bidding Documents:
Extension of the bid closing time
 If the procuring entity intends to postpone or reschedule the deadline for

the submission and receipt of bids, it may do so by issuing a
Supplemental/Bid Bulletin specifying the revised schedule for the
 Section 22.5.2 of the IRR of RA 9184 provides that “Supplemental/Bid

Bulletins may be issued upon the procuring entity’s initiative for purposes
of clarifying or modifying any provision of the Bidding Documents at least
seven (7) calendar days before the deadline for the submission and
receipt of bids.”
NPM 122-2013

Bidding Documents:
Failure to Post
 Section 22.5.3 of the IRR of RA 9184 states that “[a]ny Supplemental/Bid
Bulletin issued by the BAC shall also be posted on the PhilGEPS and the
website of the procuring entity concerned, if available.”
 The phrase “if available” refers to the phrase “the website of the procuring
entity”, and not “the PhilGEPS”.
 PE is mandated to post the Supplemental/Bid Bulletin in the PhilGEPS

website. The failure of the BAC to comply with this procedural requirement
amounts to a failure to follow the prescribed bidding procedures that may
warrant declaration of failure of bidding by the Head of the Procuring
Entity pursuant to Section 41 (b) of the IRR of RA 9184.
NPM 121-2013

Bidding Documents:
Contracts for General Support Services
Multi-Year Contract
 General Appropriations Act provides that no agency shall enter into a

multi-year contract without securing a Multi-Year Obligational Authority
(MYOA) from the DBM following the provisions of Circular Letter No.
2004-12 dated 27 October 2004.
 As such, PE must first verify if it is allowed to enter into multi-year

contracts or whether its governing board is authorized to enter into multi-
year contracts under its enabling law or corporate charter. In the event that
the confirmation yields a negative result, the contract should be procured
on a yearly basis.
NPM 130-2013

Bidding Documents:
Amendment of Existing Multi-Year Contract
 Section 5 of the Guidelines on the Procurement of Security and

Janitorial Services provides that all bid prices for a duration of three
(3) years shall be fixed and shall not be adjusted during contract
implementation.
 One of the exceptions is, when during the term of the contract the
procuring entity sees the need for an increase or decrease in the
number of security guards, it may make the necessary adjustments
in the bid price provided that the resulting cost does not exceed the
Approved Budget for the Contract (ABC) for the relevant year.
NPM 05-2014

Bidding Documents:
Extension of contract for additional guards procured through SVP
 The Guidelines for Extension of Contracts do not require that the

original contract to be extended was awarded as a result of
competitive bidding. Hence to maintain status quo in the operations
of the procuring entity, the contract for additional guards procured
through SVP may be extended subject to the other conditions
provided in the Guidelines.
NPM 05-2014

Contract Implementation:
Contract Extension for General Support Services of a Province
 All contract extensions shall be subject to the prior approval of the

HOPE upon recommendation of the BAC. If the proposed contract
extension exceeds six (6) months, the HOPE is required to inform
the GPPB in writing of its intent to extend beyond six (6) months.
 Approval of the GPPB to extend the ongoing contracts for general

support services of the Province is not necessary, since it could do so
as long as the a conditions provided in the Guidelines are complied
with.
NPM 107-2013

Bidding Documents:
Additional Participants in Consultancy Service Contract
 Section 61.1 provides that all bid prices shall be considered as fixed prices,
and therefore not subject to price adjustment and escalation during the
contract implementation.
 Section 2 of Annex F of the IRR of RA 9184 reiterates the same principle and
adds that any extension of the contract time shall not involve any additional
cost.
 Clause 55.6 of the GCC of the Philippine Bidding Documents for the
Procurement of Consulting Services provides that no additional payment
for variation order, if any, shall be allowed for the consultancy contract
Contract Implementation Guidelines for the Procurement of Consulting
Services.
 Additional participants may be allowed provided that there will be no
increase in contract cost, otherwise it shall be considered violative of the
provisions of RA 9184, its IRR and associated issuances.
NPM 70-2013

Bidding Documents:
Additional Deliverables in Consultancy Contract
 PE may revise an existing design contract to include

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

Bidding Documents:
Modification of Bidding Documents
Modifying or Adding to the Statements in the Invitation to Bid
 Procuring entities are allowed to insert any necessary information in the Invitation to
Bid as it deems relevant to the procurement project. However, such information must
conform to the Instructions to Bidders and, in particular, to the relevant information
in the Bid Data.
 Clause 20.3 of the PBDs for the Procurement of Goods provides that the original and
copies of the envelopes containing the technical and financial components of the bid
shall be signed by the bidder, but is silent whether the same should be done with the
single envelope where all the envelopes containing the original and copies of the
technical and financial components of the bid are enclosed.
 The instruction that “all envelopes shall be duly signed in the sealed overlaps or
flaps by the bidder or duly authorized representative in order to maintain the
integrity of the documents” may be considered an additional information that
procuring entities may validly include in the Invitation to Bid inasmuch as it is not
contrary to the provisions of the PBDs.
NPM 102-2013

Bidding Documents:
Modification of Bidding Documents
Change in Project Site
 The change in the project site after the issuance of Notice of Award
amounts to modification of bidding documents and it is not allowed
under RA 9184 and its IRR.
 Modification of government contracts, after the same had been

awarded after a public bidding, is not allowed because such
modification serves to nullify the effect of public bidding and
whatever advantages the Government had secured thereby and may
also result in manifest injustice to other bidders.
(Mata v. San Diego G.R. No. L-30447, 21 March 1975.)
NPM 90-2013

Bidding Documents:
Source of Funds
 As provided in the template for the IB in the PBDs for the
Procurement of Infrastructure Projects, the source of funding
and the year to be indicated shall be the Budget for the
contract approved by the respective Sanggunian of the local
government unit.
 The information required in the IB should be clear and

adequate for the prospective bidder to understand and
identify in accordance with the guide notes provided in the
PBDs, failure to comply with which may affect the validity of
the process.
NPM 115-2013

Bidding Documents:
Bill of Quantities
 The Bill of Quantities forms part of the Philippine Bidding

Documents (PBDs) for Goods and Infrastructure Projects, which
should be properly filled-out and submitted by the bidder as part of
his Bidding Documents, and evaluated by the bids and Awards
committee (BAC) using a non-discretionary “pass/fail” criterion.
 When a quantity of an item submitted by the bidder does not

comply with the quantity prescribed in the Bill of Quantities, the bid
shall be considered non-responsive and the bidder shall be
disqualified accordingly.
NPM 78-2013

Bidding Documents:
Bill of Quantities
 Unless the Instructions to Bidders allow partial bids, bids that do

not address or provide all the required items or where no price was
indicated in the Bidding Documents, including bill of quantities,
shall be considered non-responsive, and thus, automatically
disqualified.
 Specifying a “0” (zero) or a “-” (dash) for an item would mean that
it is being offered for free to the Government.
NPM 80-2013

Bidding Documents:
Bid Securing Declaration
 Section 27.2 gives bidders the option to choose from the
acceptable forms of Bid Security, including the Bid Securing
Declaration.
 PE may not limit the acceptable forms of bid security to only

cash or cashier’s/manager’s check and bank draft/guarantee or
irrevocable LC.
NOTE:
Bid Securing Declaration as an additional form of bid security
NPM 85-2013

BIDDING PROCEDURES
Bidding Procedures:
Pre-Qualification
 The practice of pre-qualification has been abandoned in RA 9184

and its IRR. the results of a pre-qualification 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.
NPM 54-2013

Bidding Procedures:
Pre-Bid Conference
 Section 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 PhP1 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 Article 5 of the Civil Code of the
Philippines.
NPM 48-2013

Bidding Procedures:
Refusal to Accept a Bid
 Procuring entity cannot validly and legally refuse to
accept a bid submitted before the deadline for the
submission indicated in the RFQ. This shall open a
ground for the aggrieved bidder to file a request for
reconsideration and, subsequently, protest as provided
in Section 55 of RA 9184 and its IRR, without prejudice
to the institution of civil, administrative and/or criminal
actions against the erring officials under applicable laws
and rules.
NPM 67-2013

Bidding Procedures:
Bid Opening
 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.
NPM 69-2013

Bidding Procedures:
Opening of a Reconsidered Bid
 Section 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 bidder’s capability to undertake the project.
NPM 54-2013

DETAILED EVALUATION
OF BIDS
Detailed Evaluation of Bids:
Arithmetical Corrections
 The process of rounding off numbers may be construed as an arithmetical
correction which may be done during the evaluation of bids for the
determination of the LCB. However, the details on how the prices should be
rounded off should be clearly stated by the procuring entity in its Invitation
to Bid (IB), and applied similarly to all bids so as to ensure that bids are
evaluated on equal footing, to ensure fair and competitive bid evaluation
Item 7, IB for Goods; Item 8, IB for Infrastructure Projects.
 Having made the arithmetical correction, and the bidder with the LCRB
fails, refuses or is unable to enter into contract with the procuring entity
and furnish the required performance security within ten (10) calendar days
from receipt of the notice of award, the bid security shall be forfeited and
appropriate sanctions provided in the IRR and existing laws shall be
imposed
NPM 125-2013

Valid PCAB License
 A valid PCAB license required as an eligibility requirement for the

procurement of infrastructure projects under Section 23.1 (a) (iv) of
the revised IRR of RA 9184 should be valid at the time of the
deadline for the submission and opening of bids.
 The submission of a PCAB license with validity period after the date
of the opening of the bids is a ground for the prospective bidder’s
disqualification
NPM 71-2013

PCAB License for JV
 JV Bidders are required to submit a Joint License issued by the
PCAB in compliance with the eligibility requirement for a “valid
PCAB license and registration.
 §38 RA 4566 prohibits 2 or more contractors from jointly submitting

a bid without first securing a Joint License to engage or act in the
capacity of such a joint venture.
 Failure of the JV Bidder to submit a Joint License may be a ground

for its disqualification despite the submission of the individual
licenses of each joint venture partner.
NPM 17-2013

Audited Financial Statement
 Failure to submit documents or the submission of an otherwise incomplete
or patently insufficient AFS will disqualify the bidder based on the non-
discretionary “pass/fail” criterion under Section 30.1 of the IRR.
 AFS must comply with the requirements under Section 23.1(a)(v) of the IRR
of RA 9184, namely, (i) showing the prospective bidder’s current assets and
liabilities, (ii) stamped “received” by the BIR or its duly accredited and
authorized institutions, and (iii) for the preceding calendar year which
should not be earlier than two (2) years from the date of bid submission.
 The term “earlier” means that if the bid submission date is on 2013, an AFS
for the year 2011 can be considered compliant, provided that such AFS is the
most recent document that can be produced by the bidder without fault or
delay on its part in filing the same with the BIR.
NPM 103-2013

Submission of Tax Clearance
 EO 398 specifically requires the submission of Tax

Clearance issued by the BIR. It refers to the clearance
issued by the Collection Enforcement Division of BIR
attesting that the bidder has no outstanding Final
Assessment Notice and/or delinquent account.
NPM 02-2013

Submission of Tax Clearance
Submission of BIR receipt for renewal of Tax

Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not
allowed under Section 34.2 of the IRR of RA
9184.
NPM 48-2013

Tax Clearance of Foreign Bidder
 A Delinquency Verification Certificate issued to Non-Resident

Foreign Corporations (NRFC)/Non-Resident Aliens Not Engaged in
Trade or Business (NRANETB) pursuant to BIR RR 3-2005, attesting
to the fact that the taxpayer has no outstanding Final Assessment
Notice and/or delinquent account may be submitted as a form of
Tax Clearance required under Sec 34.2 of the IRR.
NPM 02-2013

Equivalent Document
 Foreign bidders may substitute eligibility documentary
requirements with the appropriate equivalent documents in their
country.
 BAC’s function to undertake post-qualification proceedings to look

into the legal validity of each documents by conducting proper
verification and validation.
 Only upon actual determination and confirmation of this

equivalence may it be categorically resolved that the foreign
documents submitted are acceptable substitutes of the required
eligibility documents pursuant to §23.2 of the IRR.
NPM 42-2013

Track Record
 Construction experience/track record of a sole
proprietor, cannot be carried over to a corporation
despite the fact that the sole proprietor’s assets,
personnel and other resources have been infused into the
corporation inasmuch as the latter has a separate and
distinct juridical personality from the former.
NPM 31-2013

Track Record
 Corporation is an artificial being created by operation of law, and

has a legal personality of its own, separate and distinct from the
persons composing it, as well as any other legal entity to which it
may be related.
 JV, professional partnerships, or sole proprietorships cannot be

credited with the past experiences of their corporation of origin.
 §§24.5.3(a) and 33.2.2(b) of RA 9184 IRR provides that, in case of

new firms, the individual experiences of the principal and key staff,
including the times when employed by other consultants, may be
considered as part of the new firms’ overall experience.
NPM 40-2013

Compliance with DOLE DO 18-A
 Except those that are in direct contravention to RA 9184

and its IRR, bidders are expected to comply with
existing labor laws and standards as these laws are
deemed incorporated in the offer, promise and
responsibilities of the bidder.
NPM 29-2013

No Contact Rule
 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 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 §32.1
of RA 9184 IRR.
NPM 07-2013

Sealing and Marking of Bids
 Since 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.
NPM 36-2013

Discrepancies in Bid Price
 Section 32.2.3(c) of the IRR states that where there is a

discrepancy between the stated total price and the actual
sum of prices of component items, the latter shall
prevail.
NPM 51-2013

Nature of Bidder’s Business
 Mayor’s Permit allows an entity to legally perform the requirements

and obligations of the project and the resultant contract.
 It is therefore necessary for the BAC to determine whether the

Mayor’s Permit issued to the construction company authorizes it to
engage in the business of supplying dump trucks.
 A finding to the contrary would amount to non-compliance by the

bidder and will result in its disqualification.
NPM 36-2013

Conflict of Interest
 GPM provides that the firm that has been engaged to provide
consulting services for the preparation or implementation of a
project, and each of its affiliates, will be disqualified from
subsequently providing goods, works, or services resulting from or
directly related to the firm’s consulting services for such preparation
or implementation.
 There is conflict of interest when the entity that prepared the

plans/drawings likewise participates in the ensuing procurement
activities for the Project.
NPM 10-2013

Functional Testing
 The product testing, during which the procuring entity may conduct
the “functional test” and other test parameters is done during the
post-qualification stage. Thus, before BAC could even conduct the
product testing, it should first ensure that the bidder who will
undergo post-qualification has submitted all the legal, technical, and
financial requirements, and declared as the LCB/HRB.
 Subjecting all bids declared as “passed” during the bid evaluation

to a “functional test” before the verification, validation, and
ascertainment of the submitted documents of the Lowest Calculated
Bid (LCB) runs counter to the provisions of Section 32 and 34 of RA
9184 and its IRR.
NPM 106-2013

POST-QUALIFICATION
Post-Qualification:
Requiring Additional Documents
 PE 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 bidder’s 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.
NPM 25-2013

Post-Qualification:
Submission of Additional Requirements
 The three (3) calendar day period under §34.2 of the IRR
is mandatory and should not be extended.
 In case PE accepts the post-qualification documentary

requirements beyond the reglementary period, it must
show that there is a compelling, sufficient, valid,
reasonable, and justifiable cause for such extension, so
that penal sanction or liability will not set in. Applicable
administrative and civil sanctions or liabilities may also
be imposed against the concerned officials.
NPM 27-2013

Post-Qualification:
Additional Eligibility Requirements
 Procuring 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 Sections 23.1, 24.1, and 25.1
of the IRR of RA 9184 are necessary for purposes of
determining a bidder’s eligibility.
NPM 53-2013

Post-Qualification:
Tax Returns
 BDS Clause 29.2(b), provides that the option of allowing submission
of manually filed tax returns should be exercised by the PE by
specifying so in the Bidding Documents. (Amended by GPPB
Resolution 11-2013)
 Only EFPS-filed tax returns are now allowed and accepted.
NPM 01-2013
NOTE:
Mandatory requirement for the filing of tax returns and payment of
taxes through the EFPS. (GPPB Resolution 11-2013)

Post-Qualification:
Submission of Certified True Copies
 The PE cannot require the submission of originals or certified true

copies as even the procurement rules allow the submission of copies
as sufficient compliance with the requirements.
 Section 25.2(a)(iv) of the IRR provides that a prospective bidder or

its duly authorized representative is required to submit a Sworn
Statement in the form prescribed by the GPPB, certifying under
oath, among other things, that each of the documents submitted in
satisfaction of the bidding requirements is an authentic copy of the
original, complete, and all statements and information provided
therein are true and correct.
NPM 133-2013

Post-Qualification:
Observers’ Participation
 §13 of RA 9184 expressly states that the BAC shall, in "all stages of
the procurement process", invite Observers to sit in the proceedings.
 BAC is mandated to invite Observers in all stages of the

procurement process, including post-qualification stage.
 GPM enumerates the parties who are to conduct post-qualification.

Although Observers do not conduct post-qualification of the bidder,
they are not precluded from being invited and be present in the
meeting.
NPM 05-2013

Post-Qualification:
Submission of Sample
 In the event that a sample product, indicating its brand
and model, has to be submitted, this requirement must
be clearly specified in the bidding documents. Absent
any clear requirement regarding the matter, the
procuring entity has no basis to disqualify the bidder.
NPM 49-2013

Post-Qualification:
End User Complaint
 End-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.
NPM 24-2013

Post-Qualification:
Tie-Breaking Method
Drawing of lots for purposes of breaking a tie

should be conducted only after all the bidders
that submitted the lowest calculated bids are
declared post-qualified.
NPM 51-2013

Post-Qualification:
Post-qualification Team
 Neither RA 9184 nor its IRR provide for the establishment of a post-
qualification team that is separate and distinct from the BAC, since
the responsibility and authority of conducting the post-qualification
is categorically delegated to the BAC under Section 12.1 of the IRR
of RA 9184.
 The post-qualification team shall be the BAC, which can be assisted

by the TWG, and shall be responsible in determining the
compliance of the bidder with the LCB with all the requirements
and conditions specified in the Bidding Documents.
NPM 117-2013

Post-Qualification:
Internal Post-Qualification Procedures
 Procuring entity may adopt internal procedures on how it will conduct

the post-qualification in a manner that it deems effective in establishing the
responsiveness of the bidder with the requirements, and at the same time,
reliable in impressing upon the procuring entity the confidence of and
certainty in declaring the bidder as having submitted the Lowest Calculated
Responsive Bid.
 Adoption of an internal procedure on the manner of conducting post-

qualification is well within the discretion and accountability of the
procuring entity to undertake, and does not need the clearance or authority
from the GPPB as long as it does not run counter to the provisions of RA
9184 and its IRR.
NPM 114-2013

Post-Qualification:
Certification of Domestic Preference
 PEs cannot require a bidder to submit a Certificate claiming
domestic preference as this is not an eligibility requirement and not
among those expressly required and enumerated by the IRR.
 If a bidder wishes to claim domestic preference, it should include
said Certification as among the documents in the Second Envelope,
forming part of the Financial Component of the bid.
 A bidder waives its right to claim preference as a Domestic Bidder

or Domestic Entity if it does not include said Certification as among
the documents to be included in the Second Envelope comprising
the Financial Component of the bid.
NPM 79-2013

AWARD OF CONTRACT
Award of Contract:
Performance Security
 Submission by the winning bidder of a Performance Security in the
form of a personal check after the signing of the contract could be
considered as a failure to post the Performance Security in the
required form under §39.2 of the IRR and in the required period for
posting under § 37.1.4(b) of the IRR.
 §4.1.5 of the Guidelines provides that the refusal or failure of a

contractor to post the required Performance Security within the
prescribed period is one of the grounds for blacklisting.
NPM 35-2013

Award of Contract:
Higher Approving Authority
 §37.3 of RA 9184 IRR recognizes that there are decisions on
procurement activities that may require further approval by higher
authority.
 In exercising the power to approve, the approving authority is

likewise deemed to have the mandate to disapprove any
recommendation on the matter.
 To interpret that the recommending official is only required to

elevate those matters it favorably recommends weakens the
mandate of the higher approving authority to take full jurisdiction
and cognizance of the matter.
NPM 14-2013

Award of Contract:
Authorization from the Sangguniang Bayan
 Should the appropriation ordinance already contain in sufficient

detail the project and cost of a capital outlay such that all that the local
chief executive needs to do after undergoing the requisite public
bidding is to execute the contract, no further authorization is required,
the appropriation ordinance already being sufficient.
 But if the appropriation ordinance describe the projects in generic

terms there is an obvious need for a covering contract for every
specific project that in turn requires approval by the sanggunian. (Ex.
“infrastructure projects,” “inter-municipal waterworks, drainage and
sewerage, flood control, and irrigation systems projects,” “reclamation
projects” or “roads and bridges”)
NPM 17-2014

ALTERNATIVE METHODS OF
PROCUREMENT
Alternative Methods of Procurement:
NGO Participation
 When there is no appropriation law or ordinance that earmarks an amount
for projects to be specifically contracted out to NGOs, procuring entities
cannot resort to Negotiated Procurement (NGO Participation) and use the
Guidelines for the selection of the supplier, contractor, or consultant that
will perform the project.
 PE cannot limit its selection process to NGOs when the same condition for a
specifically earmarked budget is wanting. The general rule on public or
competitive bidding provided in Section 10 of RA 9184 and its IRR will
apply, and the selection of the supplier, contractor, or consultant for the
project shall be open to all entities allowed under Sections 23 and 24 of the
same law and rules.
NPM 137-2013

NGO Participation
Posting of Performance Security
 Regardless of the category of procurement for a contract where the

NGO is engaged using Negotiated Procurement (NGO Participation)
under Section 53.11 of the IRR of RA 9184 and Section 6 of the
Guidelines, the selected NGO is required to post a performance
security upon signing of the MOA.
NPM 120-2013

Negotiated Procurement (Procurement Agent)
 Where a PE has determined that it lacks the proficiency or capability

to undertake its rehabilitation project, which need not be based
solely on the PE’s failure to constitute its BAC, the PE may request
another government agency to be its Procurement Agent as Section
53.6 of the IRR may also apply in cases where a BAC is validly
constituted, but due to the number of bidding activities to be
undertaken by the procuring entity; magnitude and complexity of
the project; experience of the members of the BAC; location and
situs of both the principal and the agent; and, other valid and
reasonable circumstances, the procuring entity may not have the
proficiency or capability to undertake the particular procurement
activity.
NPM 38-2013

Negotiated Procurement (Procurement Agent)
For multi-agency joint procurement

 Negotiated Procurement (Procurement Agent) under Section 53.6 of the IRR
of RA 9184 may be adopted as a modality to address multi-agency bulk
procurement.
 The member-offices may agree with the procurement agent to assign its
officials as part of the Technical Working Group that will assist the BAC of
the procurement agent in the procurement activity in order to ensure that
the views of member-offices are taken into consideration.
 Each member-office has the authority to approve the award of contract that
will be recommended by the BAC of the procurement agent, thereby
maintaining the power to make the final decision on the process.
NPM 131-2013

Negotiated Procurement (Two-Failed Bidding)
 In the implementation of this alternative modality of procurement,

Section 53.1.5 of the IRR requires that the procuring entity shall
select the successful offer on the basis of the best and final offer
which meets:
1. The procuring entity’s minimum technical requirements
2. An offer that does not exceed the ABC.
 Failure of a bidder to satisfy either one will result in its

disqualification.
NPM 109-2013

 If the failure of bidding is due to the declaration by the

HOPE pursuant to Section 41 of the IRR , Negotiated
Procurement (Two Failed Biddings) cannot be resorted
to.
NPM 72-2013

Minimum Number of Contractors Engaging in Negotiation
 Section 53.1.2 of the IRR of RA 9184 provides that where there has been a
failure of public bidding for the second time, the BAC shall invite and
engage in negotiations with a sufficient number of suppliers, contractors
or consultants to ensure effective negotiations.
 The phrase “sufficient number of suppliers, contractors or consultant”

refers to the minimum number of contractors that the PE must invite for
the purpose of engaging in negotiation.
 If only one bidder responded to such invitation, the PE may proceed with
the Negotiated Procurement as long as it has invited contractors of a
number that it deems sufficient to ensure competition in accordance with
Section 53.1.2 of the IRR of RA 9184.
NPM 136-2013

Adjustment of ABC after Two-Failed Bidding
 After two failed biddings under Section 35 of the IRR, and the PE
decides to resort to Negotiated Procurement (Two-Failed Biddings),
Section 53.1.1 of the IRR requires the BAC to conduct a mandatory
review of the terms, conditions, specifications, and cost estimates;
and, when necessary, increase the ABC provided that it is not more
than twenty percent (20%) of the ABC for the last failed bidding.
NPM 93-2013

Negotiated Procurement (Adjacent or Contiguous)
 The determination and the decision to resort to the alternative
modality of Negotiated Procurement (Adjacent or Contiguous)
under Section 53.4 of IRR of RA 9184 is subject to the prior approval
of the HOPE upon favorable recommendation of the BAC, provided
that the conditions set forth therein are present.
 The phrase “adjacent or contiguous” refers to projects that are in

actual physical contact with each other in the case of infrastructure
projects. Thus, the physical connection of the two (2) projects should
be actual and not superficial. The objective of this policy is to take
the advantage of the economy and efficiency in engaging the
contractor for the on-going project, and ensure that the two
structures are soundly connected.
NPM 96-2013

Use of the Same Prices or Lower Unit Prices
 Section 53.4 of the IRR stating that the contractor/consultant shall use
the same or lower unit prices as in the original contract, applies only
to the scopes of work that are present in both projects and should not
be interpreted as a qualification that only adjacent or contiguous
projects that have the exact same scopes of work shall be acceptable.
 If there are no similar scope of work between the two projects,

compliance with such condition is not necessary. The procuring
entity, however, should ensure that the unit prices are lower than or
equal to the prevailing market prices.
NPM 112-2013

Submission of Offer by the Original Contractor
 Although the rules are silent as to the submission by the contractor

of a formal offer for the adjacent/contiguous project, it is imperative
that the original contractor submits an offer that is acceptable to the
procuring entity as compliant with the terms and conditions the
latter has adopted for the adjacent/contiguous project, in order to
establish the basis for the new contract.
NPM 112-2013

Negotiated Procurement (Agency-to-Agency)
Non-chartered GOCCs as Servicing Agency
 Non-chartered GOCCs may be engaged as Servicing Agency by

procuring entities in contracts procured using Negotiated
Procurement (Agency-to-Agency) under Section 53.5 of the IRR of
RA 9184 starting 13 November 2013, subject to the requirements
provided in the Guidelines.
 GPPB Resolution No. 12-2013 removes the disqualification of non-

chartered GOCCs from being engaged as Servicing Agency for
projects procured through Negotiated Procurement (Agency-to-
Agency).
NPM 110-2013

 PITC Pharma, Inc. (PPI) has been given express mandate to be the
central/lead agency for procurement of all government agencies’
requirements for drugs and medicines pursuant to RA 9501.
 However, RA 9501 does not exempt it from the procurement

policies, rules and regulations established under RA 9184 and its
IRR.
 PPI is not exempt from posting a Performance Security under §39 of

RA 9184 and its IRR when entering into a contract with other
government agencies and the PE requires such security.
NPM 37-2013

 Guidelines on the Procurement of Printing Services provides that …

Accountable Forms and Sensitive High Quality/Volume
Requirements should be sourced from Recognized Government
Printers (RGPs), through Negotiated Procurement under Section
53.5
 If SSS plans to procure printing services for some of its forms
through public bidding, it has to identify whether said forms are
considered Accountable Forms, and therefore subject to the
Guidelines. If SSS determines that said forms are not Accountable
Forms, printing services for its procurement may be engaged
through Competitive Bidding under RA 9184 and its IRR.
NPM 62-2013

 For the procurement of CTC, the more appropriate method to be

used is A to A rather than Direct Contracting
 In cases where procurement from another agency of the government

is more efficient and economical, Negotiated Procurement under
Section 53.5 (Agency-to-Agency Agreements) may be resorted to.
This rule allows a government entity to procure from another
government entity without need of public bidding, subject to
compliance with the prescribed conditions and procedures under
existing rules and the Guidelines on Agency-to-Agency Agreements
(Guidelines).
NPM 52-2013

Negotiated Procurement (Emergency Cases)
GPPB Resolution No. 34-2013
 GPPB Resolution No. 34-2013 dated 14 November 2013, has granted authority to all
concerned government procuring entities to procure goods and infrastructure
projects, for the purpose of providing rescue, recovery, relief, and/or rehabilitation
efforts for, and to continue to provide basic services to victims in areas affected by
Typhoon Yolanda, through Negotiated Procurement (Emergency Cases) under
Section 53.2 of the IRR of RA 9184 with an ABC of at least Five Hundred Million
Pesos (PhP500,000,000.00) for the duration of the State of Calamity until lifted by the
President pursuant to Proclamation No. 682, Series of 2013.
 The same GPPB Resolution requires all concerned procuring entities to submit to this
office a list of all transactions covered by the grant of authority at the end of every
month.
NPM 107-2013

Negotiated Procurement (Emergency Cases)
GPPB Resolution No. 34-2013
 The grant of authority in GPPB Resolution No. 34-2013 is limited to

the use of Negotiated Procurement under Section 53.2 of the IRR of
RA 9184. Procurement activities for contracts amounting to at least
Five Hundred Million Pesos using alternative method of
procurement other than Negotiated Procurement under Section 53.2
of RA 9184 and its IRR are still subject to the requirement for prior
GPPB approval pursuant to Section 4 of EO No. 423, s. 2005, even if
the purpose is to provide rescue, recovery, relief, and/or
rehabilitation efforts for, or to continue to provide basic services to
victims in areas affected by Typhoon Yolanda.
NPM 06-2014

Direct Contracting
 Since there are other Passport Readers available in the market apart
from that manufactured by 3M Corporation, Direct Contracting
cannot be utilized for the acquisition of brand new passport readers.
 Even though 3M Passport Reader is proprietary in nature and can

be obtained from the proprietary source, there may be other
Passport Readers in the market, which are likewise proprietary in
nature that can be obtained.
NPM 41-2013

Direct Contracting
 Assuming that only one supplier has been given a certification by PTRI for
being compliant to RA 9242, it does not automatically provide a basis to
resort to direct contracting.
 PE has to first provide sufficient justification and proof of the

following(Section 50):
a. Procurement of goods of proprietary nature which can be obtained
only from the proprietary source
b. When the procurement of critical components from a specific supplier
is a condition precedent to hold a contractor to guarantee its project
performance, in accordance with the provisions of its contract, or
c. Those sold by an exclusive dealer or manufacturer which does not
have sub-dealers selling at lower prices and for which no suitable
substitute can be obtained at more advantageous terms to the
government.
NPM 89-2013

Extension of Lease of Office Space
 PE may extend the duration or effectivity of contracts of lease of office
space that are about to expire, for a period not exceeding one (1) year, as an
emergency measure to maintain status quo in its operations and to avoid
interruption of such services that are essential, indispensable, or necessary
to support the operations of PE.
 In the event of failure of bidding for the new contract, PE may further
extend the duration of the contract provided that the aggregate period of all
extensions shall not exceed one (1) year in accordance with Section 4.1 of
the Guidelines.
 Under Section 5.2 of the Guidelines, if the proposed contract extension

exceeds six (6) months, the HOPE shall immediately report to the GPPB
through its TSO in writing of PCSO’s intent to extend beyond six (6)
months.
NPM 132-2013

Direct Transaction in Lease of Office Space
 There are only two modalities that would permit direct transaction
with a building owner without need of inviting other owners, i.e.,
Negotiated Procurement (Emergency Cases) under Section 53.2 and
Negotiated Procurement (Take Over of Contracts) under Section
53.3.
 However, PE may resort to any of the alternative modalities if it

cannot establish the conditions allowing the afore-mentioned
modalities of procurement provided that it can establish and justify
the existence of the conditions warranting its use.
NPM 113-2013

Repeat Order
 Repeat Order under Section 51 of RA 9184 does not require post-

qualification.
 The phrase “subject to post-qualification process described in the

Bidding Documents”, as stated in the provision refers to
Competitive Bidding and not to Repeat Order.
NPM 13-2013

By Administration
 Clearance from GPPB is not a requirement in

implementing projects by administration
 Undertaking infrastructure projects by administration is

a decision that appropriately falls within the discretion
and responsibility of the procuring entity concerned. In
the same vein, it falls upon the same procuring entity to
ensure that the conditions and requirements established
in the Guidelines are complied with.
NPM 12-2014

LSB for the Procurement of Catering Services
 Catering Services does not involve highly specialized

requirements, and is undoubtedly not a major plant
component. Limited Source Bidding cannot be resorted
to in the procurement of Catering Services. Competitive
Bidding should be resorted to in the acquisition of the
contemplated service.
NPM 61-2013

LSB for the Procurement of Utility Motor Vehicle
 Section 49 of the IRR provides that LSB may be resorted to only

under two possible conditions:
(a) procurement of highly specialized types of goods and consulting

services which are known to be obtainable only from a limited
number of sources; and
(b) procurement of major plant components
 In order to apply LSB on the subject procurement, PE should first

establish that the motor vehicle sought to be procured is either a
highly specialized type of goods or a major plant component;
otherwise, Competitive Bidding shall apply.
NPM 63-2013

CONTRACT
IMPLEMENTATION
Notice to Proceed
 PE cannot forego the issuance of the Notice to Proceed (NTP) for the
procurement of goods and services based on the claim that the
issued Purchase Order or Job Order already contains the conforme of
the winning supplier and indicates the delivery date, which in effect
authorizes the supplier to proceed and deliver the required goods
and services.
 RA 9184, having been enacted for the advancement of public welfare,

contains mandatory provisions. Failure to follow such rules render
the proceeding to which it relates illegal and void, or the violation of
which makes the decision rendered therein invalid.
 NTP together with the approved contract should be issued by PE to

the successful bidder within three (3) calendar days from the date of
the approval of the contract.
NPM 87-2013

Advance Payment
 Advance payment in case of infrastructure projects may be granted
by the procuring entity upon compliance with the conditions
provided in Section 4 of the Guidelines and only for the purpose of
mobilization.
 Thus, if the contractor has already mobilized its equipment and has
commenced with the required works under the contract, advance
payment can no longer be provided as doing so already negates the
very purpose of granting such privilege to the contractor.
NPM 56-2013

Warranty Security for Janitorial Services
 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 Section 62.1
of the IRR of RA 9184
 The requirement for the posting of warranty security under Section

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.
NPM 64-2013

Variation Order
Deletion of Work Through Variation Order
 Section 1.1 of Annex E of the IRR of RA 9184 provides that the scope of
works shall not be reduced so as to accommodate a Positive Variation
Order. In addition, the Manual of Procedures for the Procurement of
Infrastructure Projects provides that the “addition/deletion of works should
be within the general scope of the project as bid and awarded, and the
deletion of the work should not affect the integrity and usefulness of the
structure.”
 It should be satisfactorily shown that the suggested deletion will not affect
the integrity and usefulness of the structure, why it is no longer necessary
and was not meant to accommodate a Positive Variation Order.
 It is also necessary to verify whether the claim was made within the
applicable time required under Section 1.5 of Annex E of the IRR of RA 9184.
NMP 84-2013

PROTEST MECHANISM
Protest Mechanism:
Rationalized Protest Fee
 The rules on Protest, particularly §55.3 of the IRR, which requires

that the verified position paper should be accompanied by a non-
refundable protest fee, has been recently amended by the
Government Procurement Policy Board (GPPB) through GPPB
Resolution No. 05-2012 to rationalize the amount of such fee.
 The rationalization of the protest fee amount is perceived to strike a

balance between the institution and filing of valid protests, and the
deterrence of filing vexatious and frivolous ones.
NPM 39-2013

Protest Mechanism:
Protest Fee
 The posting of a surety bond as a form of non-refundable protest fee

should not be countenanced.
 A surety bond is a contractual arrangement between the surety, the

principal and the obligee whereby the surety agrees to protect the
obligee if the principal defaults in performing the principal’s
contractual obligations. This is not the rationale and purpose for
which the protest mechanism and fee are required under the Law
and rules; the purposes being to deter filing of frivolous complaints
and answer for the costs of the action.
NPM 39-2013

Protest Mechanism:
Remedy Pending Protest
 Only upon the final resolution of the protest can the aggrieved party be
said to have exhausted the available remedies at the administrative
level. In other words, only then can he viably avail of the remedy
of certiorari before the proper courts. Non-compliance with this
statutory requirement, under Section 58 of R.A. No. 9184, constitutes a
ground for the dismissal of the action for lack of jurisdiction.”
(Dimson (Manila), Inc. and Phesco, Inc. v. Local Water Utilities Administration)
 Pending a request for reconsideration or protest, the aggrieved bidder

must await its resolution, unless it can establish that there is no other
plain, speedy, and adequate remedy in the ordinary course of law then
extraordinary remedies of certiorari and mandamus may be resorted to.
NPM 116-2013

BLACKLISTING
Blacklisting:
Applicability
 Section 2 of the Guidelines expressly provides that the Blacklisting
Order shall apply to all the JV partners as they are treated
collectively as one bidder.
 The members of the JV expectedly intend themselves to be jointly

and severally responsible or liable for the obligations and civil
liabilities actually incurred by the particular joint venture.
NPM 23-2013

Blacklisting:
Applicability
Affiliate Company
 Affiliate/sister company of a blacklisted bidder may only be considered as
blacklisted upon determination by the procuring entity that the blacklisted
entity has that degree of relationship or extent of representation mentioned
in Section 2 of the Guidelines existing in the affiliate/sister company.
 If the blacklisted entity and its affiliate/sister company are sole
proprietorships owned by the same person, the blacklisting order applies to
the affiliate/sister company since a sole proprietorship does not have a
separate juridical nor legal personality from its owner, and it is thru the
individual doing business under the name and style of the sole
proprietorship who would in effect be blacklisted under the Guidelines.
 In this regard, the blacklisted person remains blacklisted regardless of the
name and number of sole proprietorships registered under her name, and
shall not be allowed to participate in the bidding of all government projects
during the period of disqualification unless delisted as provided for in the
Guidelines.
NPM 92-2013
Blacklisting:
Applicability
Forfeiture of Performance Security Prior to Award of NOA
 Section 7 of the Uniform Guidelines for Blacklisting states that if the

Blacklisting Order is issued prior to the date of the NOA, the blacklisted
entity shall not be qualified for the award, and such project or contract shall
be awarded to another bidder.
 The performance security posted by a bidder who has been issued a

Blacklisting Order prior to the issuance of NOA should not be forfeited, but
instead returned in accordance with the principle of solutio indebiti under
Article 2154 of the Civil Code of the Philippines.
NPM 98-2013

THANK YOU!!
Contact us at:
Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44

Procurement Process
Goods and Services &
Infrastructure Projects
Presenter: Atty. Tommy S. Dimaala

GOODS
• All Items, supplies, materials and general support services, except

consulting services and infrastructure project.
• Needed in the transaction of public business or in the pursuit of
any government undertaking, project or activity.
• In the nature of equipment, furniture, stationery, material for
construction, or personal property of any kind.
• Including non-personal or contractual services (trucking, hauling,
janitorial and security services.)
• Other analogous services (e.g. lease or purchase of office space,
media advertisements, health maintenance services)
• Other services essential to the operation of the procuring entity.
INFRASTRUCTURE
include the –
• Construction
• Improvement
• Rehabilitation
• Demolition
• Repair
• Restoration or Maintenance
of roads and bridges, railways, airports, seaports, communication
facilities, irrigation, flood control and drainage, water supply,
sewerage and solid waste management systems, shore protection,
energy/ power and electrification facilities, buildings, and other
related construction projects of the government.
Bidding Procedures for Goods
Advertisement – 1c.d.
Posting – 7 c.d. 1 c.d.
Pre-Procurement
Advertisement/Posting Pre-Bid
Conference
Conference
at least 12 c.d.
1 c.d.
Bid Opening/ Opening of Opening of

Bid Preliminary First Second
Submission Examination Envelope Envelope
(Elig./Tech.) (Financial)
Bid Evaluation Award of Contract

Post-qualification NTP
& Ranking Contract Signing
within 7 c.d. within 7 c.d.
Pre-Procurement
Conference
• Undertaken prior to the posting/advertisement of the

Invitation to Bid
• Attended by the ff:

a) BAC;
b) TWG;
c) BAC Secretariat;
d) end users;
e) consultants; and
f) other relevant officials
Pre-Procurement
Conference
• General purpose:
Determine readiness of procurement and criteria
• Mandatory in case of:
Goods – above P 2 Million

Infra - above P 5 Million
Pre-Procurement
Conference
Description
Scope
Approved Budget for the Contract (ABC)
Project and Annual Procurement Plan (APP)
Availability of Fund
Bid Documents (PBD)
Procurement Schedule
INFRA
• Detailed Engineering
• Program of Work (POW)
• Contract Duration
Philippine Bidding Documents (PBD)
Section GOODS INFRASTRUCTURE

I Invitation to Bid (IB) Invitation to Bid (IB)
II Instructions to Bidders (ITB) Instructions to Bidders (ITB)
III Bid Data Sheet (BDS) Bid Data Sheet (BDS)
IV General Conditions of Contract (GCC) General Conditions of Contract (GCC)
V Special Conditions of Contract (SCC) Special Conditions of Contract (SCC)
VI Schedule of Requirements Specifications
VII Technical Specifications Drawings
VIII Bidding Forms Bill of Quantities
IX Bidding Forms
X Foreign Assisted Projects
Advertisement and Posting
• Advertisement
Goods costing - above P 2M

Infra - above P 5M
1. Newspaper of general nationwide circulation
2. Regularly Published at least Two Years from the

date of publication
• Posting Requirements
1. PhilGEPS Website
2. Conspicuous place reserved for posting in the agency

premises
3. PhilGEPS
4. Website of agency (if any) and its service provider (if any)
Pre Bid Conference
• Initial forum where the Procuring Entity’s representatives and the

prospective bidders discuss the different aspects of the project
procurement
• At least 1 required for bids with

• Goods/infra - ABC of P1M or more.
• Held at least twelve (12) cd before deadline for Submission of Bids
• Any statement made at the pre-bid conference shall not modify the
terms of the bidding documents, unless such statement is specifically
identified in writing as an amendment thereto and issued as a
Supplemental/Bid Bulletins
• Issued at least seven (7) c.d. before deadline for the

submission of bids to answer requests for clarification or
interpretation, and upon BAC’s initiative to clarify or modify
any provision of Bidding Docs.
• Posted in PhilGEPS and agency’s website, if any.
• Bidders who have submitted bids before issuance of

Supplemental/Bid Bulletin have to be informed in writing and
allowed to modify or withdraw their respective bids.
Deadline for Submission of Bids
• Bids must be received by the PROCURING ENTITY’s BAC on

or before the date and time and at the place indicated in
the Bid Data Sheet (BDS).
• Any Bid submitted after the deadline for submission and

receipt of Bids shall be declared “Late” and shall not be
accepted by the PROCURING ENTITY.
First Envelope
1. Eligibility Requirements
a) Tax Clearance
b) Registration Certificate (SEC,DTI or CDA)
c) Mayor’s Permit
d) Statements of Projects (Ongoing/Completed)
e) PCAB License and registration (for infra only)
f) Audited Financial Statement
g) Net Financial Contracting Capacity (NFCC)
First Envelope
1. Bid Security
2. Organizational Chart (for infra only)
3. List of Contractor’s personnel (for infra only)
4. List of Contractor’s equipment (for infra only)
5. Omnibus Sworn Statement

(Authority of the Signatory)
Board Resolution/Secretary’s Cert.– Corporation or Cooperative
JV Resolution – JV
Partnership Resolution – Partnership
SPA by the Gen. Manager or Proprietor – Sole Proprietor
3. Technical Specification (Production/Delivery Schedule, Manpower

Requirements, After-sales service and parts ) (for Goods only)
4. Technical Specifications (for Goods only)

7. Other documents/materials stated in the BDS.
Bid Security
Form of Bid Security Minimum Percentage of

the ABC
Cash, 2%
Cashier’s/Manager’s Check
Bank Draft/Guarantee 2%
Irrevocable LC
Surety Bond 5%
Bid Securing Declaration None
Second Envelope
Preliminary Examination of Financial Information/Document
 Shall be opened within the same day after determining

compliance with the eligibility and technical requirements
 Only bids that are determined to contain all the bid

requirements for both components shall be rated
“passed” and shall immediately be considered for
evaluation and comparison
Bid Evaluation
• Primary Purpose
Determine the Lowest Calculated Bid (LCB):

1. Completeness of the bid; and
2. Arithmetical Computations
Ranking calculated total bid prices from lowest to highest (Abstract of Bids)
• A non-discretionary criteria shall be used, which shall include consideration of: (a)
completeness of bids; and (b) minor arithmetical corrections
• Bid Evaluation shall not be more than 7 c. d. from deadline of bid submission.
Bid Evaluation
• In case of discrepancies, the ff. shall prevail:

• words over figures
• unit prices over total prices
• bill of quantities over detailed est.
• Those not providing all required items shall be considered non-

responsive
• Ex.: Placing no price for an item would be considered as non-
responsive
• But specifying a “0” or “-” (dash) for an item would mean it is
being offered for free
FINANCIAL PROPOSAL
(Item & Specifications) Bidder 1 Bidder 2 Bidder 3
Agency
Information
System Plan
1. Hardware 13,499,244.32 12,088,044.23 13,440,153.20
Components
2. Software Components 7,758,647 7,075,669.57 7,135,555.01
3. Training 680,000 LOWEST CALCULATED 170,000

204,000.00
BID (LCB)
4. Cabling/Installation/ to undergo2,215,000
1,266,186.38 Post-qualification 545,000
Delivery
Total Bid Price: 23,204,077.70 21,582,713.80 21,290,708.21
3rd 2nd 1st

Post Qualification
Purpose:
Verify, validate, and ascertain all statements made and documents
submitted by the bidder with the Lowest Calculated Bid (LCB)
Period:
Within seven (7) cd from the determination of the LCB.
May be extended by HOPE – the aggregate period shall not exceed 30 days
Post Qualification
Post-Qualification Criteria
1. Legal Requirements
i. licenses and agreements
ii. legal documents under eligibility envelope
iii. Not blacklisted
2. Technical Requirements
i. sufficiency of the bid security as to type,
amount, form wording and validity period
3. Financial Requirements
i. bid price proposal,
ii. NFCC computation,
Post Qualification
Additional Documentary Requirements:

1. Latest Income Tax (ITR)
2. Business Tax Return (VAT for 6 months)
3. Certificate of PhilGEPS Registration, and
4. Other appropriate licenses and permits required by law
and stated in the Bidding Documents
Award of Contract
Contract shall be awarded to the bidder with the Lowest Calculated

Responsive Bid (LCRB) at its submitted price or total calculated bid
price, whichever is lower.
Notice of Award is issued by the HOPE
a) NGAs, SUCs and LGUs – seven (7) cd (Goods)
four (4) cd - P50M & below (infra)
a) GOCCs and GFIs – fifteen (15) cd
If the deadline for each activity falls on a non-working day (i.e. Saturday
and Sunday), legal holiday, or special non-working holiday, the
deadline shall be the next working day
Contract Signing
Procurement process from opening of bids up to award of contract shall not

exceed three (3) months or a shorter period as determined by the head of the
procuring entity.
Both parties must sign the contract within ten (10) c.d. from receipt by the
winning bidder of the Notice of Award
The following documents shall form part of the contract:
1. Contract Agreement;
2. Conditions of Contract;
3. Drawings/Plans, if applicable;
4. Specifications, if applicable;
5. Invitation to Apply for Eligibility and to Bid;
6. Bidding Documents;
7. Addenda and/or Supplemental/Bid Bulletins, if any;
8. Bid Form
Notice to Proceed (NTP)
• The procuring entity issue the NTP plus the approved

contract
• Three (3) Cd from the date of the approval of the
contract
• Effectivity of the Contract – not later than seven (7) CD
from its issuance.
• Copy of the NTP shall be posted in the PhilGEPS and
agency website within 15 days from the issuance of NTP
Failure of Bidding
 Grounds:
1. No bids are received
2. All prospective bidders declared ineligible
3. All bids fail to comply with bid requirements, fail post-qualification
4. LCRB unjustifiably refuses to accept award and award not made to
next bidders
 Re-bidding with re-advertisement/re-posting
 ABC to be maintained as ceiling

Atty. Tommy S. Dimaala-0915 7879099
GPPB – 900-6741 to 44
1
GENERAL
General OVERVIEW
Overview
3 Categories of Government Procurement:

1. Goods and Services
2. Infrastructure Projects
3. Consulting Services

DEFINITION OF TERMS
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.

DEFINITION OF TERMS
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.

IMPORTANT CONSIDERATIONS
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. Technology and knowledge transfer to the

procuring entity shall be required in the provision
of consulting services, where applicable.
On Hiring Filipinos:
a) selected on the basis of proven expertise,

experience, capability, also cost.;
b) hired whenever the services required for

the
project are within their expertise and
capability;
c) requires technology and knowledge

transfer to
the PE, where applicable 6
On Hiring Foreigners:
a) hired in the event Filipino consultants do not
have sufficient expertise and capability to
render services required in the project as
determined by the PE;
b) hired in accordance with all pertinent laws
and
regulations of the Philippines;
c) requires technology and knowledge transfer
to the
PE, where applicable
7
Condition: ensure professional independence
Prohibitions: prohibit conflict of interest and non-

disclosure;
a) Not hired for any project that would be in

conflict with their prior or current obligations to
other entities, or that may place them in a
position of not being able to carry out the Project
in the best interest of the PE.
8
b) Not be related to the HOPE, members of the BAC,

the TWG, and the BAC Secretariat, the head of the
PMO or the end-user unit, and the project
consultants, by consanguinity or affinity up to the
third civil degree.
c) Failure to fully disclose potential conflict of

interest at the time of Bid submission, or at a later
date in the event that the potential conflict arises
after such date
9
CONFLICT
Conflict OF INTEREST
of Interest
 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

On Coverage: not applicable in the hiring of

individual personnel under Job Order or
Contract of Service except those under sole
proprietorship, partnership or a corporation
contracted for the purpose (NPM 15-2014)

UMBRELLA ORGANIZATION OF
Umbrella Organization
CONSULTANTS of Consultants
 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
 GPPB Resolution No. 6-2013, 15 March 2013 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.

PROCUREMENT PROCEDURE
Process Flow
Pre- Submission of
Advertisement /
Procurement Eligibility Eligibility Check
Posting
Conference Requirements
7cd
not >
20cd
Opening and Submission of Pre-Bid

Evaluation of Short Listing
Proposals Conference
Proposals
not > 21cd not > 75cd at least12/30cd
Negotiation &
Contract
Post- Contract Award
Implementation
qualification
Nego = not > 10cd
Post-Qua = ≤ 7-30cd

I. PRE-PROCUREMENT
Pre-Procurement Conference
CONFERENCE
 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

II. ADVERTISEMENT AND
Advertisement and
POSTING Posting
The Request for Expression of Interest (REI) must contain

the following: (revised IRR Section 21.1)
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;

Advertisement and
POSTING Posting
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;

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

Adveartisement and Posting
POSTING

POSTING
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 documents have been downloaded, BAC shall only accept the

submitted bid envelopes, upon payment of the corresponding bid
fee.
 BAC must issue copies of the bidding documents to the Observers

free of charge.

POSTING
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. (Section 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.

POSTING
 Procuring entity may charge fees for the acquisition of Bidding
Documents based on the following rates:
GPPB Resolution No. 04-2012, 24 February 2012

III. ELIGIBILITY AND
Eligibility Documents
SHORTLISTING
ELIGIBILITY DOCUMENTS
CLASS A DOCUMENTS:
 Legal Documents
 DTI / SEC / CDA Registration Certificate
 Mayor’s permit from the bidder’s principal place of business
 Tax clearance
 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.
SHORTLISTING
CLASS B DOCUMENTS
 Valid JV agreement in case of a joint venture

 Notarized Statements by each partner that they will enter into and
abide by provisions of the JVA if awarded the contract

ELIGIBLE
EligibLEBIDDERS
Bidders
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

ELIGIBLE
EligibLEBIDDERS
Bidders
 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.

ELIGIBLE
EligibLEBIDDERS
Bidders
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.
 Hiring of foreign consultant should be in compliance to pertinent

laws and regulations of the Philippines.

Eligibility Check
SHORTLISTING
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.

SHORTLISTING
The submission of LOI is no longer required upon

the effectivity of GPPB Resolution No. 27-2012 on
10 September 2013. (NPM 101-2013)

SHORTLISTING
Short Listing
 It 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 it less than the desired number, the BAC
shall consider all such consultants as being short listed.

SHORTLISTING
Short - Listing
The process of eligibility check and short listing

must not exceed 20 calendar days after opening
the eligibility envelopes (IRR Section 24.5.4).

IV. PRE-BID
Pre – BidCONFERENCE
Conference
 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 12/30 calendar days before the

deadline for Submission and Opening of bids. (Sec. 22.2 of IRR)
 Statement made therein do not modify the terms of the bidding

documents unless specified in a supplemental/bid bulletin

IV. PRE-BID
Pre – BidCONFERENCE
Conference
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES
 It shall be held 3 calendar days after the conduct of Eligibility check

and Short listing (For Earliest Possible time)
 It shall be held 20 calendar days after the conduct of Eligibility

check and Short listing (For Latest allowable time)

V. SUBMISSION AND OPENING
Submission and Receipt of Bids
OF BIDS
The FIRST envelope shall contain the following technical
information/documents:
 Bid security
 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

V. SUBMISSION AND OPENING
SubmissionOF
andBIDS
Receipt of Bids
The SECOND envelope shall contain the:
 Financial information/documents specified in

the Philippine Bidding Documents

VI. BID EVALUATION
Bid Evaluation
 This is to determine the bidder with the Highest Rated Bid (HRB).
Two methods of evaluating bids:

1. 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.

VI. BID EVALUATION
Bid Evaluation
2. 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.

Bid Evaluation
VI. BID EVALUATION
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
 Numerical ratings based on either QBE or QCBE Procedure
 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.
VI. BID EVALUATION
Bid Evaluation
The entire evaluation process, from proposal opening to

submission of the bid evaluation results to the HOPE,
should not exceed twenty-one (21) calendar days. (Section
33.4, IRR of RA 9184)

Sample Evaluation
SAMPLE (Individual)
EVALUATION
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 Capacity Development
1 Division 2 5 4
39
QBE PROCESS
Process FLOW
Flow (QBE)
Evaluation and
Submission of
Open Technical Ranking of
Technical and
Proposals only Technical
Financial Proposals
Proposals
HOPE-
Notification of HRB Approval/Disappro BAC
for negotiations val of BAC Recommendation
(3 cd) recommendation for approval of HRB
(2 cd)
Opening of
Negotiations
Financial Proposal

QCBE PROCESS
Process FLOW
Flow (QCBE)
* consultants meeting
minimum technical score
Opening and Opening and

Submission of
Evaluation of Evaluation of
Technical and
Technical Financial
Financial Proposals
Proposals Proposals
HOPE -
Notification of HRB Approval/Disappro Ranking and
for negotiations val of BAC determination of
(3 cd) recommendation HRB
(2 cd)
Negotiations

TECHNICAL PROPOSALS OF CONSULTANTS:
CRITERIA AND RECOMMENDED WEIGHTS

HOW ARE BIDS EVALUATED
QCBEPROCEDURE?
USING THE QCBE
 Lowest financial proposal given 100 points
 Other financial proposals are scored using the following formula:

How are bids evaluated using QCBE Procedure?
USING THE QCBE PROCEDURE?
Sample Sf Computation Bidder 1
1,000,000
90.9 = 100 x
Example: 1,100,000
Bidder 2
1,000,000
Bidder 1 = 1,100,000 100 = 100 x
1,000,000
Bidder 2 = 1,000,000
Bidder 3
Bidder 3 = 1,500,000
1,000,000
Bidder 4 = 1,300,000 66.7 = 100X
1,500,000
Bidder 5 = 1,200,000 Bidder 4
1,000,000
76.9 = 100X
1,300,000
Bidder 5
1,000,000
83.0 = 100 x
1,200,000
QCBE
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

SAMPLE COMPUTATION
QCBE FOR QCBE
Bidder 2
St = 86
Sf = 100
T = 70%
F = 30%
S = (86 x 70%) + (100 x 30%)

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

VII. NEGOTIATIONS
Negotiations
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);

VII. NEGOTIATIONS
Negotiations
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; and
 Provisions of the contract.

VII. NEGOTIATIONS
Negotiations
 Except for meritorious reasons, negotiations with any

one consultant shall be completed within ten (10)
calendar days.
 In case the negotiation with HRB fails, PE shall

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

KEYKey
PERSONNEL
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

KEY PERSONNEL
Key Personnel
After Award of Contract
No replacement shall be allowed until after 50% of the personnel’s

man-months have been served
Except for justifiable reasons, subject to appropriate sanctions as

prescribed in the PBDs

VIII. POST-QUALIFICATION
Post-Qualification
 Legal Requirements
o Licenses, permits, certificates, agreements, and statements
 Technical Requirements
o Stated competence and experience of the bidder and its key personnel
to be assigned
o Sufficiency of bid security as to type, amount, form and wording, and
validity period
 Financial Requirements
o Bid price proposal
Completed in 7 cd. But, may be extended by the HOPE

to not more than 30 cd

IX. AWARD OF CONTRACT
 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 – 7 cd | GOCCs and GFIs – 15 cd
 NOA conditioned on the following:

 If joint venture, submission of JVA
 Posting of Performance Security
 Signing of Contract (within 10 cd)
 If required, approvals by higher authority
 Procurement process, i.e., from opening of bids up to award of

contract, shall not exceed 3 months.

IX. AWARD
Award OF CONTRACT
of Contract
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 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.

VARIATION ORDER
Award of Contract
 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)

ADVANCE PAYMENT
Advance Payment
 < 15% of the total contract price
 Made upon submission to & PE’s acceptance of an irrevocable

standby LC of equivalent value from a commercial bank, a bank
guarantee or a surety bond callable upon demand from duly
licensed surety or insurance company.
 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

SUBCONTRACTING
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 necessary
 PE’s consent will not relieve main contractor from liability

LIQUIDATED DAMAGES
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

THANK YOU!!
Contact us at:

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

1
OUTLINE
I. Procurement Standards
II. Alternative Methods
1. Limited Source Bidding
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
a. Two Failed Biddings
b. Emergency Cases
c. Take Over Contracts
d. Adjacent or Contiguous
e. Agency-to-Agency
f. Procurement Agent
g. Highly Technical Consultants
h. Defense Cooperation Agreement
i. Small Value Procurement
j. Lease of Real Property
k. NGO Participation
l. Community Participation
m. United Nations Agencies
III. Other Terms and Conditions
2
PROCUREMENT STANDARD
Procuring Entities shall adopt public bidding as
the general mode of procurement.
EXCEPTION
Alternative methods shall be resorted only:
1. In highly exceptional case
2. To promote economy and efficiency
3. Justified by conditions specified in IRR
4. GPPB approval as required under EO 423, S. 2005
(as amended)
 No government procurement shall be undertaken unless

it is in accordance with the approved APP of the PE.
3
METHOD OF PROCUREMENT
In case of change in original mode of procurement in

approved APP from public bidding to AMPs:
Consolidate
Update PPMP/s updated PPMP/s to Recommend Approve
APP through a Supplemental APP
(End-user) Resolution (BAC) (HOPE)
(BAC Sec)
4
Consent of GPPB as a Requirement
 The approval of GPPB before a PE may proceed with the

alternative method of procurement is only necessary for
government contracts involving an amount of at least
500 Million Pesos, where the HOPE has made a
determination that such contract falls under any of the
exceptions from public bidding.
NPM 110-2014
5
1. LIMITED SOURCE BIDDING
Also known as “selective bidding” which

involves direct invitation to bid by the
procuring entity from the list of pre-
selected suppliers or consultants
6
APPLICABILITY:
Goods
Consulting services
CONDITIONS:
Highly specialized types where only a few bidders
are known to be available, or
Major plant components beneficial to limit bidding to
known qualified bidders to maintain uniform quality
and performance of the plant
7
 Follows all procedures for competitive bidding except

advertisement of ITB/REI since it involves direct
invitation to bid from the list of pre-selected suppliers
or consultants.
 Pre-selection based on capability and resources to

perform the contract taking into account:
 Experience and past performance on similar
contracts
 Capabilities with respect to personnel, equipment,
and/or manufacturing facilities
 Financial position
8
 Pre-selected list of suppliers and consultants to be maintained by
the relevant government authority
 PE may be the relevant government authority
 Should be updated periodically and submitted to the GPPB
9
PRE-SELECTION PROCEDURE : IF PE is a RELEVANT
GOVERNMENT AUTHORITY
GPPB Resolution 06-2012
PE identifies LSB as Issues a Pre-selected

applicable mode List
HOPE transmits list

to the GPPB
PE posts GPPB-TSO
procurement acknowledges
opportunity and receipt and posts the
conducts LSB list in the website
10
PRE-SELECTION PROCEDURE : IF PE is NOT A

RELEVANT GOVERNMENT AUTHORITY
GPPB Resolution 06-2012
Relevant Request for

Government a List from
Authority? RGA
Y
PE
Y Limited
represents Issues a
Source
itself as the List?
Bidding
RGA
N
Competitive
Bidding
11
 In order to apply LSB on the procurement of motor vehicle,
PE should first establish that the motor vehicle sought to be
procured is either a highly specialized type of goods or a
major plant component; otherwise, Competitive Bidding
shall apply. (NPM 63-2013)
 Catering Services does not involve highly specialized

requirements, and is undoubtedly not a major plant
component. Limited Source Bidding cannot be resorted to
in the procurement of Catering Services. Competitive
Bidding should be resorted to in the acquisition of the
contemplated service. (NPM 61-2013)
12
2. DIRECT CONTRACTING
Single source procurement that does

not require elaborate Bidding
Documents
13
APPLICABILITY:
 Goods
CONDITIONS:
 Items of proprietary nature from proprietary source,

 Critical components from a specific supplier to hold a contractor
to guarantee its project performance, or
 Items sold by an exclusive manufacturer or dealer
 no other suppliers selling it at lower prices
 no suitable substitute can be obtained at more
advantageous terms to the Government
14
 Since there are other Passport Readers available in the

market apart from that manufactured by 3M Corporation,
Direct Contracting cannot be utilized for the acquisition of
brand new passport readers.
 Even though 3M Passport Reader is proprietary in nature and

can be obtained from the proprietary source, there may be
other Passport Readers in the market, which are likewise
proprietary in nature that can be obtained.
NPM 41-2013
15
Replacement for NFCC as an Eligibility Requirement in Direct
Contracting
 NFCC is one of the financial documents that form part of the eligibility
requirements for competitive bidding.
 Under Section 48(b) of Republic Act No. (RA) 9184, Direct Contracting is a
method of procurement that does not require elaborate Bidding Documents
because the supplier is simply asked to submit a price quotation or a pro-
forma invoice together with the conditions of sale.
 In resorting to Direct Contracting, PE has the discretion to require the

prospective contractors to submit the eligibility documents mentioned
under Section 23.1 of the IRR of RA 9184 or other documents that will
establish the contractors’ legal, technical or financial capacity.
NPM 60-2014
16
3. REPEAT ORDER
Procurement from the previous

winning bidder, whenever there is a
need to replenish goods procured under
a contract previously awarded through
Competitive Bidding
17
3. REPEAT ORDER
APPLICABILITY:
 Goods
CONDITIONS:
1. Same or lower unit prices, provided that such
prices are still the most advantageous to the GOP
after price verification;
2. No splitting of contracts, requisitions and POs;
3. Availed of within 6 months from the contract
effectivity date stated in the NTP arising from
the original contract, except in cases duly approved
by the GPPB;
4. Not to exceed 25% of the quantity of each item;
and
5. Original contract awarded through competitive
bidding 18
3. REPEAT ORDER
 Repeat Order under Section 51 of RA 9184 does not

require post-qualification.
 The phrase “ subject to post-qualification process

described in the Bidding Documents”, as stated in the
provision refers to Competitive Bidding and not to
Repeat Order.
NPM 13-2013
19
4. SHOPPING
Method where the procuring entity simply

requests for the submission of price
quotations for readily available off-the-
shelf goods or ordinary/regular equipment
to be procured directly from suppliers of
known qualifications
20
4. SHOPPING
APPLICABILITY [52.1(A) AND (B)]:
 Goods
CONDITIONS [SHOPPING UNDER §52.1(a)]:

1. There is an unforeseen contingency requiring immediate
purchase; and
2. Amount does not exceed the threshold
CONDITIONS [SHOPPING UNDER §52.1(B)]:

1. Procurement of ordinary or regular office supplies and
equipment not available in PS-DBM; and
21
SHOPPING
THRESHOLD FOR UNFORESEEN CONTINGENCIES [S.
52.1(a)] (Annex “H”)
 NGAs, GOCCs, GFIs, SUCs – PhP100,000
 LGUs –
Maximum Amount (in Philippine Pesos)

Classification
Province City Municipality
1st Class 100,000 100,000 50,000
2nd Class 100,000 100,000 50,000
3rd Class 100,000 80,000 50,000
4th Class 80,000 60,000 50,000
5th Class 60,000 50,000 50,000
6th Class 50,000 50,000 50,000
In the case of Barangays, the maximum amount is PhP50,000
22
SHOPPING [S 52.1(b)]
THRESHOLD (Annex “H”)

 LGUs:
Classification
1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
23
4. SHOPPING
Standard Form for RFQ
 There is no prescribed template or standard form for the RFQ.
 The RFQ must indicate the specification, quantity, ABC, and other
terms and conditions of the item to be procured pursuant to Section
3(a) of the Guidelines.
 In addition, RFQ must prescribe the manner by which price

quotations shall be submitted i.e., by sealed or open quotation.
24
4. SHOPPING
BAC’s Participation
 Section 2(c) of the Guidelines for Shopping and Small Value

Procurement (Guidelines) provides that the conduct of the actual
activity to do the Shopping or Small Value Procurement may be
delegated to the appropriate bureau, committee, or support unit
duly authorized by the BAC, which shall comply with the
procedural guideposts prescribed under the Guidelines and IRR of
RA 9184. (GPPB Resolution 09-2009 dated 23 November 2009)
 Such BAC delegation may be performed or accomplished prior to

the happening of any event within the purview of Section 52.1(a) of
the IRR of RA 9184.
NPM 114-2014
25
4. SHOPPING
Approval of RFQ
 As with any type of procurement, including alternative modes of

procurement such as Shopping, the BAC has the power to conduct
the bidding activities.
 The BAC may validly delegate the authority to a unit within the
agency to handle shopping and small value procurement.
 However, the powers delegated by the BAC do not include the

power to award the procurement contract as this is vested with the
HOPE. But the HOPE may however, delegate this power to an
approving authority.
NPM 127-2014
26
4. SHOPPING
Reduction/Adjustment of Quantity
 The quantity of a particular item cannot be reduced to accommodate the

price proposal of one supplier. It is the supplier who should conform to the
requirements of the PE and not otherwise. A supplier who sent a quotation
beyond the ABC does not comply with the terms and conditions stated in
the RFQ and should be disqualified.
 In the event that no supplier submits quotation that conforms with the
requirement of the PE, the proper step to be undertaken is to extend the
deadline for the submission of price quotations, subject to required
approvals, but not to adjust the quantity of the items to be procured to
accommodate the price proposal of one supplier.
NPM 19-2014
27
4. SHOPPING
 When the procurement falls under Section 52.1(b), no award

of contract can be made if only one supplier submitted a price
quotation. It is imperative upon the PE to obtain at least three
(3) quotations before awarding a contract that is procured
through Shopping under Section 52.1(b).
NPM 019-2014
28
5.a NEGOTIATED PROCUREMENT -
SMALL VALUE PROCUREMENT
APPLICABILITY
 All types of Procurement
CONDITIONS:
1. Procurement does NOT fall under
Shopping [§52]; and
29
THRESHOLD (Annex “H”)

 LGUs:
Classification
1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
30
SHOPPING and SMALL VALUE
PROCUREMENT
 Decision to resort to shopping/SVP shall be
reflected in the Annual Procurement Plan (APP)
 After approval, BAC may delegate execution
 Posting is required if amount is > PhP50,000.00,
except for SHP Sec. 52.1(a):
 Request for Quotation
 Extension of deadline for submission of
quotation
 Award
 PE to validate legal, technical, and financial
capability through relevant documents or other
means
31
SHOPPING and SMALL VALUE
PROCUREMENT
PROCEDURAL GUIDELINES:
Send RFQ to at least Post in PhilGEPS,

3 suppliers PE’s website and
*May be 1 in case of 52.1(a) conspicuous place
Prepare RFQ
*Receipt of 3 RFQs for 52.1(b) *Except 52.1(a) and ABC
is mandatory 50k and below
Receipt of 1 RFQ in SVP will *Extend deadline if no
suffice quotation is received
Award to LCB (for

SHP & SVP)/HRB
Prepare Abstract
(for SVP) that
of Quotations complies with
specs and ABC
32
Lone Bidder
 Under Section 3(c) of the Guidelines, the Request for Quotation

(RFQ) shall be sent to at least three (3) suppliers, contractors, or
consultants of known qualification.
 Unlike in Shopping under Section 52.1(b), it will suffice to request

quotations from three (3) suppliers under SVP, but it is not required
to actually wait and receive three (3) quotations in order to
proceed with the bid evaluation.
NPM 35-2014
33
 In Small Value Procurement, a Quotation/Proposal

submitted by a lone bidder is acceptable, provided that
the PE invited at least three (3) suppliers to submit
quotations, and provided further that the submission
complies with the specifications and terms and
conditions required by the PE.
NPM 097-2014
34
5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS
APPLICABILITY
CONDITIONS:
1. Failed biddings for the second time under Sec.
35; and
2. Mandatory review of the following:
 Terms, conditions and specifications
 ABC, which may be adjusted up to 20% of
ABC for the last failed bidding
35
NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS
 BAC shall invite and engage in negotiations with

sufficient number of suppliers, contractors or
consultants to ensure effective competition
 Requirements, guidelines, documents,

clarifications, or other information relative to the
negotiations shall be communicated on an equal
basis
36
TWO FAILED BIDDINGS
 Submission of best and final offer by suppliers,

contractors, or consultants on a specified date.
 Criteria in selecting the successful offer:

1. Offer should meet the PE’s minimum technical
requirements.
2. Offer should not exceed ABC
 Observers shall be invited in all stages
37
TWO FAILED BIDDINGS
PROCEDURAL GUIDELINE
Invite sufficient
Preparation of Negotiation with
number of
RFQ/Bid docs bidders
bidders
Submission and
Awarding of
opening of best
contract
and final offer
38
INVITATION OF OBSERVERS
 Generally, invitation of Observers are not required when resorting to

alternative methods of procurement except in those where competitive
bidding or semblance a semblance thereof is still present, such as in
Limited Source Bidding and Negotiated Procurement (Two Failed
Biddings) under Section 49 and Section 53.1, respectively, of the revised
IRR.
 Under Section 13.3 of the revised IRR of RA 9184, Observers shall be invited
at least three (3) calendar days before the date of the negotiation and the
absence of Observers will not nullify the BAC proceedings, provided that
they have been duly invited in writing.
NPM 124-2014
39
40
TWO-FAILED BIDDING
After Two-Failed SVP
 Negotiated Procurement through Two-Failed Biddings modality may

be resorted to only where there has been failure of public bidding for
the second time as provided in Section 35 of RA 9184 and its IRR.
 Failure of PE to obtain the required number of price quotations do not
fit the requirement of two failed biddings warranting the PE to use
Negotiated Procurement under Section 53.1.
 It is important to note however that in SVP, the receipt of a single price
quotation from any of the three (3) suppliers can be considered for
award of contract. In case no price quotation is received, the PE shall
extend the deadline for submission of quotation until receipt of at least
a single price quotation is obtained.
NPM 75-2014
41
TWO-FAILED BIDDING
Failure of Bidding as Declared by HOPE
 If the failure of bidding is due to the declaration by the HOPE

pursuant to Section 41 of the IRR , Negotiated Procurement
(Two Failed Biddings) cannot be resorted to.
NPM 72-2013
42
TWO-FAILED BIDDING
What is the allowable threshold if an increase in the ABC

has to be made?
 Sections 35, 53 and 75 of the IRR repealed GPPB
Resolution No. 07-2005 with both Sections 35 and 53.1 of
the IRR of RA 9184 now expressly providing for the
adjustment of ABC, if necessary, subject to the required
approvals, with Section 53.1.1 specifically providing for
a twenty percent (20%) threshold in case of increase in
ABC.
CIRCULAR 02-2015 30 January 2015
43
5.c NEGOTIATED PROCUREMENT -
EMERGENCY CASES
APPLICABILITY:
CONDITIONS:
 In case of imminent danger to life or property during
a state of calamity;
 When time is of the essence arising from natural or
man-made calamities; or
 Other causes where immediate action is necessary
• To prevent damage to or loss of life or property
• To restore vital public services, infrastructure
facilities and other public utilities
44
SALE OF BIDDING DOCUMENTS IN NEGOTIATED
PROCUREMENT THROUGH EMERGENCY CASES
Sale of Bidding Documents in Negotiated Procurement through

Emergency Cases
 The Guidelines on the Sale of Bidding Documents do not apply to

all alternative modalities, but only to those that adopt processes
and procedures akin to competitive bidding, such as Limited
Source Bidding under Section 49 and Negotiated Procurement
under Section 53.1 (Two-Failed Biddings) of the IRR of RA 9184.
 The Guidelines finds no application for acquisition, through
negotiated procurement under Emergency Cases modality. Thus,
procuring entities are allowed to directly negotiate with a legally,
technically, and financially capable supplier or contractor for the
procurement of the goods, works, and/or consulting services,
provided that the required conditions, parameters or instances are
present.
NPM 83-2014
45
EMERGENCY CASES
Applicability of GPPB Resolution 34-2013
 GPPB Resolution No. 34-2013 restates the rule that all Procuring Entities,
including PNP Police Regional Office VIII, may resort to Negotiated
Procurement under Section 53.2 (Emergency Cases) of the IRR of RA 9184
without GPPB approval, provided that the ABC is less than 500 Million
Pesos.
 This is subject to the condition that any alternative method of procurement
may only be resorted to under highly exceptional circumstances; and when
warranted by valid, lawful, reasonable and justifiable conditions and
circumstances allowing the use of the proposed alternative modality that
would be most advantageous to the procuring entity taking into
consideration the principles of competition, economy and efficiency in
public procurement.
NPM 30-2014
46
5.d NEGOTIATED PROCUREMENT -
TAKE-OVER OF CONTRACTS
APPLICABILITY:
CONDITIONS:
Rescinded or terminated contract; and
Immediate action is necessary:
 To prevent damage to or loss of life or
property
 To restore vital public services, infrastructure
facilities, and other public utilities
47
 Negotiate starting with the 2nd LCB or HRB at the

bidder’s original bid price, then to the next if
negotiation fails
 If negotiation fails, invite a short list of at least 3

to submit bids and negotiate starting with the LCB
or HRB
48
 Where immediate action is necessary to prevent damage to or loss of

life or property, or to restore vital public services, infrastructure
facilities and other public utilities, PE may resort to Negotiated
Procurement under Take-over of Contracts modality for the supply
and delivery of remaining goods after the contract has been
provided that all the conditions and requirements under Section 53.3
of the IRR of RA 9184 will be observed.
NPM 59-2014
49
5.e NEGOTIATED PROCUREMENT -
ADJACENT OR CONTIGUOUS
APPLICABILITY:
 Infrastructure
 Consulting Services
CONDITIONS:
1. Subject contract is adjacent or contiguous to
an on-going infra or consulting,
2. Original contract is a result of competitive
bidding,
3. Subject contract has similar or related scopes
of work,
50
4. Within the contracting capacity of the

contractor/consultant,
5. The same prices or lower unit prices as the
original contract less mobilization cost,
6. Amount does not exceed amount of the on-
going project,
7. No negative slippage, and
8. Negotiations commenced before expiry of
original contract.
51
When Original Contract has already been Completed
 The determination and decision to resort to the alternative modality

of Negotiated Procurement under Section 53.4 is subject to the prior
approval of the HOPE, upon favorable recommendation of the BAC,
provided that the conditions set forth therein are present, one of
which is that “the negotiations for the procurement are commenced
before the expiry of the original contract”.
NPM 18-2014
52
5.f NEGOTIATED PROCUREMENT -
AGENCY-TO-AGENCY
APPLICABILITY:
CONDITIONS:
1. Cost-benefit analysis indicating A-to-A is more efficient
and economical;
2. A-to-A does not exceed 25% of PE’s total budget for
each category (goods, infra, consulting);
3. Servicing agency has mandate to undertake the
project; and
4. Servicing agency owns or has access to necessary
tools required for the project
53
AGENCY-TO-AGENCY
In addition, for procurement of infrastructure projects under Agency-
to-Agency agreements, the Servicing Agency must comply with the
following conditions:
– It must have a track record of having completed, or supervised
a project, by administration or by contract, similar to and with
a cost of at least fifty percent (50%) of the project at hand; and
– It shall not directly or indirectly engage private contractors to
undertake the project and may only implement the
infrastructure project in-house, by job-order, or through the
pakyaw contracting system.
54
AGENCY-TO-AGENCY
 Other requirements provided in Implementing

Guidelines on Agency-to-Agency Arrangements
 All procurement to be undertaken by the Servicing

Agency, including those required for the project,
shall be governed by the provisions of R.A. 9184.
55
(AGENCY-TO-AGENCY)
 For the procurement of CTC, the more appropriate method to be
used is A to A rather than Direct Contracting
 In cases where procurement from another agency of the

government is more efficient and economical, Negotiated
Procurement under Section 53.5 (Agency-to-Agency Agreements)
may be resorted to. This rule allows a government entity to procure
from another government entity without need of public bidding,
subject to compliance with the prescribed conditions and
procedures under existing rules and the Guidelines on Agency-to-
Agency Agreements (Guidelines).
NPM 52-2013
56
ALTERNATIVE METHODS OF PROCUREMENT:
NEGOTIATED PROCUREMENT (AGENCY-TO-AGENCY)
Lease-to-Own Agreement with a Private Corporation wholly-owned

by a GOCC
 A private corporation wholly-owned by a GOCC, may be

considered as a Servicing Agency under an Agency-to-Agency
Agreement relative to the Lease-to-Own provided that the foregoing
conditions set by the Guidelines have been complied with.
NPM 25-2014
57
5.g NEGOTIATED PROCUREMENT
PROCUREMENT AGENT
APPLICABILITY:
CONDITIONS:
 HOPE has determined that PE does not have procurement
proficiency or capability to undertake a particular
procurement
ACTIONS AVAILABLE:
 Request other GOP agencies to undertake such procurement
for them; or
 Recruit and hire consultants or procurement agents to assist
them directly and/or train their staff in the management of
the procurement function
58
Negotiated Procurement
(Procurement Agent)
 Where a PE has determined that it lacks the proficiency or
capability to undertake its rehabilitation project, which need
not be based solely on the PE’s failure to constitute its BAC,
the PE may request another government agency to be its
Procurement Agent as Section 53.6 of the IRR may also
apply in cases where a BAC is validly constituted, but due
to the number of bidding activities to be undertaken by the
procuring entity; magnitude and complexity of the project;
experience of the members of the BAC; location and situs of
both the principal and the agent; and, other valid and
reasonable circumstances, the procuring entity may not
have the proficiency or capability to undertake the particular
NPM 38-2013
59
5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL CONSULTANTS
APPLICABILITY:
 Consulting Services
CONDITIONS:
1. Individual consultant;
2. Work involves:
 Highly technical or proprietary; or
 Primarily confidential or policy determining, where
trust and confidence are the primary consideration;
and
3. Term is, at the most, 6 months, renewable at the option of
the appointing HOPE, but in no case to exceed the term of
the latter
60
Posting Requirements for the Engagement of
Highly Technical or Primarily Confidential
Consultants
Advertisement and Posting Requirements
 Advertisement and/or posting of procurement opportunity for the
engagement of highly technical or primarily confidential consultants may
be dispensed with pursuant to Section 54.2 of the IRR of RA 9184.
Posting of Notice of Award

 Posting of the Notice of Award for highly technical or primarily
confidential consultants is mandatory under Section 54.3 of the IRR of RA
9184.
Posting of Contracts
 Posting of electronic copy of contracts in the PhilGEPS is likewise
mandatory pursuant to Section 2.2 of the IRR of EO 662 (Enhancing
Transparency Measures under RA 9184 and Creating the Procurement
Transparency Board)

NPM 94-2014
61
5.i NEGOTIATED PROCUREMENT
DEFENSE COOPERATION AGREEMENT
APPLICABILITY:
 Goods and Consulting Services to be used by AFP
 major defense equipment or materiel
 defense-related consultancy services
CONDITIONS:
1. Prior approval of the President;
2. Expertise or capability required is not available locally;
3. DND Secretary has determined that the interests of the country shall be
protected by negotiating directly with an agency or instrumentality of
another country with existing defense cooperation agreement or
diplomatic relations with the Philippines; and
4. Performance security under §39 of IRR of RA 9184 shall be
required to supplier
62
5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY
APPLICABILITY:
 Goods (Privately-Owned Real Estate and Venue)
CONDITIONS:
1. Cost-benefit analysis indicating leasing privately-owned real
estate or venue is more efficient and economical
2. APP reflect the proposed lease
3. Selection to follow the guidelines under GPPB Resolution 08-
2009
 Eligibility documents need not be submitted, but PE must validate

whether lessor is technically, legally, and financially capable
through other means
 Lease contracts costing > PhP50,000 should be posted in the
PhilGEPS
63
5.k NEGOTIATED PROCUREMENT -
NGO PARTICIPATION
APPLICABILITY:
CONDITIONS:
 Appropriation law or ordinance earmarks an
amount to be contracted to NGOs
 PE may opt to conduct public bidding or

negotiated procurement for the selection of NGO,
subject to the rules provided in the guidelines
64
5.l NEGOTIATED PROCUREMENT -
COMMUNITY PARTICIPATION
APPLICABILITY:
 Delivery of goods, including non-consulting services and
simple infrastructure projects
CONDITIONS:
 In the interest of project sustainability or to achieve
certain specific social objectives
PROCEDURE:
 GPPB Resolution No. 09-2014, approved for adoption on 23
May 2014
65
5.l NEGOTIATED PROCUREMENT -
 Newspaper Advertisement is not required for

Negotiated Procurement through Community
Participation under Section 53.12 of the revised IRR.
GPPB Resolution No. 09-2014.
66
THRESHOLDS:
MAXIMUM AMOUNT
PROCURING ENTITY (In Philippine Peso)
Goods Infrastructure Projects
NGAs, GOCCs, GFIs and SUCs 2,000,000 5,000,000
LGUs:
1st-3rd Class Provinces 1,000,000 2,500,000
1st-2nd Class Cities
Highly Urbanized Cities
4th Class Province 800,000 1,750,000
3rd Class City
5th Class Province 600,000 1,000,000
4th Class City
6th Class Province 500,000 750,000
5th-6th Class Cities
Municipalities
Barangays
67
68
5.m NEGOTIATED PROCUREMENT -
UN AGENCIES
APPLICABILITY:
CONDITIONS:
 Procure from UN Agencies;
 Small quantities of off-the-shelf goods,
primarily in the fields of education and health;
and
 Specialized products where the number of
suppliers is limited (e.g., vaccines or drugs)
69
OTHER TERMS AND CONDITIONS
 Most advantageous price for government should be

obtained (§48.1)
 Splitting of contracts strictly prohibited (§54.1)
 Advertisement and posting may be dispensed with provided

that the BAC through its Secretariat shall post the Invitation
or Request for Submission of Price Quotations for the
following methods:
 Shopping [§52.1(b)]
 Except: PhP50,000 and below
 Negotiated Procurement under Two Failed Biddings
[§53.1]
 NGO Participation [§53.11]
 Small Value Procurement [§53.9]
 Except: PhP50,000 and below
70
 ALL awards should be posted.
 Bid security NOT necessary, except in Limited Source

Bidding
 Performance and warranty securities necessary, except

for:
 Shopping [§52]
 Emergency Cases [§53.2]
 Agency-to-Agency [§53.5]
 Small Value Procurement [§53.9]
 Lease of Real Property [§53.10]
 Community Participation [§53.12]
 Procurement from UN agencies [§53.13]
71
 Bidders are mandated to register with PhilGEPS, and

provide PhilGEPS Registration Number as a condition
for award, except for:
 Shopping Unforeseen Contingency [§52.1 (a)]
 Emergency Cases [§53.2]
 Agency-to-Agency [§53.5]
 Procurement Agent [§53.6], except private
procurement agents
 Highly Technical Consultants [§53.7]
 Defense Cooperation Agreement [§53.8]
 Community Participation [§53.12]
 Procurement from UN agencies [§53.13]
72
DOCUMENTARY REQUIREMENTS FOR
ALTERNATIVE METHODS OF PROCUREMENT
 Under Section 3(j) of GPPB Resolution No. 09-2009, the Procuring Entity
(PE) must validate whether it is entering into a contract with a technically,
legally and financially capable supplier, contractor or consultant by
requiring the submission of relevant documents or through other means.
 This permits any PE to require the suppliers, contractors or consultants to

submit documentary requirements to establish their legal, technical and
financial capabilities.
 PE may opt to use other means that it may deem necessary and proper,
within the boundaries allowed by law, to determine the required
capabilities of the suppliers, contractors or consultants without requiring
the submission of relevant documents.

NPM 68-2014
73
SUMMARY
Method Goods Infrastructure Consulting
1. Limited Source Bidding   

2. Direct Contracting   
3. Repeat Order   
4. Shopping   
5. Negotiated Procurement   
74
SUMMARY
Negotiated Procurement Goods Infra Consulting
1. Small Value Procurement   
  
2. Two Failed Biddings
 
3. Emergency Cases 
 
4. Take Over Contracts 

5. Adjacent or Contiguous  
  
6. Agency to Agency
75
SUMMARY
Negotiated Procurement Goods Infra Consulting
  
7. Procurement Agent
  
8. Highly Technical Consultants
  
9. Lease of Real Property
  
10. NGO Participation
  
11. Community Participation
  
12. UN Agencies
76
THANK YOU!!
Contact us at:

TeleFax: (632)900-6741 to 44
77
1
REQUEST FOR RECONSIDERATION
 Decisions of the BAC at any stage of the procurement process may be questioned
by filing a request for reconsideration within the three (3) calendar days upon
receipt of written notice or upon verbal notification.
 BAC may still entertain the manifestation of an eligible or disqualified bidder to

file a request for reconsideration even after the return of the financial envelope to
the concerned bidder, provided that such request for reconsideration is made
within the three-day reglamentary period (NPM 23-2014)
 Requests for reconsideration filed in accordance with Section 55 of the IRR of RA

9184 may be considered excluded from the coverage of the prohibition under
Section 32.1 of the IRR in order to pave way to a bidder to exercise its right to
question decisions of the BAC at any stage of the process, particularly, when a
request for reconsideration may only be filed timely if submitted within the
period covered by the "no contact" rule. (NPM 121-2013)
 The BAC shall decide on the request for reconsideration within seven (7)
calendar days from receipt thereof.
2
REQUEST FOR RECONSIDERATION
If denied, decisions of the BAC may be

protested in writing to the Head of the
Procuring Entity.
Provided:
1. That a prior request for reconsideration
should have been filed by the party
concerned in accordance with the
preceding Section, and
2. Request for reconsideration has been

resolved. 3
REQUISITES FOR THE FILING OF A
VALID PROTEST
1. Must be in writing (Verified Position

Paper);
2. Addressed to the HOPE;
3. Filed within seven (7) calendar days from
receipt by the party concerned of the
resolution of the BAC denying its request
for reconsideration; and
4. Accompanied by the payment of a non-
refundable protest fee within the
reglementary period.
4
VERIFIED POSITION PAPER
The verified position paper shall contain the
following information:
1. The name of bidder;
2. The office address of the bidder;
3. The name of project/contract;
4. The implementing office/agency or procuring
entity;
5. A brief statement of facts;
6. The issue to be resolved;
7. Such other matters and information pertinent
and relevant to the proper resolution of the
protest; and
8. Certification against forum shopping
5
 To be considered verified, the position paper shall contain an
affidavit stating that the affiant:
1. has read and understood the contents thereof, and
2. allegations therein are true and correct of based on authentic records or on
his personal knowledge.
 In addition to the above, the bidder shall likewise execute under

oath a certification against forum shopping stating that:
1. he has not commenced any action or filed any claim in any court, tribunal
or quasi-judicial agency, involving the same issue;
2. to the best of his knowledge, no such other action or claim is pending
therein;
3. shall include a complete statement of the present status of the pending
claim or action, should there be any; and
4. should he thereafter learn that the same or similar action or claim is
pending, he shall report that fact to the Procuring Entity wherein his
protest is filed within 5 days therefrom.
6
An unverified position paper shall be

considered unsigned, produces no legal
effect, and results to the outright dismissal
of the protest.
Failure to comply with the requirements

shall not be curable by mere amendment of
the verified position paper.
7
RESOLUTION OF PROTESTS
The protests shall be resolved strictly on

the basis of records of the BAC. The Head
of the Procuring Entity shall resolve the
protest within seven (7) calendar days from
receipt thereof.
The head of the BAC Secretariat shall

furnish the GPPB a copy of the decision
resolving the protest within seven (7)
calendar days from receipt thereof.
8
NON-INTERRUPTION OF THE
BIDDING PROCESS
 In no case shall any protest taken from any
decision treated in this Rule stay or delay the
bidding process: Provided, however, That
protests must first be resolved before any award
is made.
 Court action may be resorted to only after the

protests contemplated in this Rule shall have
been completed.
 The BAC Secretariat Head of the procuring

entity concerned shall ensure that the GPPB
shall be furnished a copy of the cases filed in
accordance with this Section
9
RESORT TO REGULAR COURTS
 Court Action may be resorted to only after the
protest shall have been resolved with finality.
(Doctrine of Exhaustion of Administrative
Remedies)
Land Bank of the Philippines v Atlanta Industries, Inc., G.R.
No. 193796 , July 2, 2014
 Non-compliance with this statutory requirement,
under Section 58 of R.A. No. 9184, constitutes a
ground for the dismissal of the action for lack of
jurisdiction.
Dimson (Manila), Inc. and Phesco, Inc. v Local Water Utilities
Administration, G.R. No. 168656, September 22, 2010.
 Regional Trial Court under Certiorari (Rule 65)
10
RESORT TO REGULAR COURTS
 Protest must comply with Section 55 of

R.A. 9184. Where the protest was not
verified and the protest fee was not paid,
respondent was held to have failed to avail
of the correct protest procedure before it
filed its petition for annulment of the
award before the RTC.
Land Registration Authority, et. al. vs
Lanting Security and Watchman Agency,
G.R. No. 181735
11
PROTEST FEES
Resolution 05-2012
ABC RANGE PROTEST FEE

50 million pesos and below 0.75% of the ABC
More than 50 million pesos to PhP 500,000.00
100 million pesos
More than 100 million pesos to 0.5% of the ABC
500 million pesos
More than 500 million pesos to PhP 2,500,000.00
1 billion pesos
More than 1 billion pesos to 2 0.25% of the ABC
billion pesos
More than 2 billion pesos to 5 PhP 5,000,000.00
billion pesos
More than 5 billion pesos 0.1% of the ABC
12
NON-POLICY MATTER
OPINIONS
NPM 084-2012
REQUEST TO HOLD THE AWARDING OF CONTRACT IN
ABEYANCE UNTIL THE BIDDER HAS SECURED A COPY OF
THE MINUTES OF THE POST-QUALIFICATION
PROCEEDINGS
[A] protest filed with the HOPE preceded by a request for
reconsideration filed with the BAC are the proper steps to take
in order to prevent the awarding of the contract until such time
that the protest has been resolved. Hence, a mere request to
hold the proceedings in abeyance which is filed after bid
opening will not suffice. Otherwise, the bidding process would
be unnecessarily hampered if each bidder may simply request to
hold the proceedings in abeyance without following the correct
process within the proper periods laid out by the rules
13
NON-POLICY MATTER
OPINIONS
NPM 145-2012
PAYMENT OF NON-REFUNDABLE FEE A CONDITION

SINE QUA NON FOR FILING A WRITTEN PROTEST
[B]eing one of the indispensable requirements for filing a
protest, the non-payment of the protest fee does not toll
the prescriptive period for filing a protest and it becomes
a justifiable basis for the HOPE not to entertain a protest.
Simply stated, a bidder whose request for reconsideration
was denied must pay the required protest fee to avail of
the protest mechanism under the procurement law and its
associated rules.
14
NON-POLICY MATTER
OPINIONS
NPM 067-2007
NON-REFUNDABILITY OF PROTEST FEE FOR

FOREIGN-FUNDED PROJECTS
In the case of DBM-PS IABAC vs. Kolonwel Trading (G.R.
No. 175616, 08 June 2007), the Supreme Court upheld
the applicability of the protest mechanism prescribed
under Section 55 of Republic Act No. 9184 and its IRR-A
to both fully-domestically funded and foreign-funded
procurement activities. It is to be stressed that the protest
mechanism adverted to is a built-in administrative
remedy embodied in the law itself. Ignoring thus this
administrative remedy would be to defy the law itself.
15
NON-POLICY MATTER
OPINIONS
NPM 078-2007
EFFECT OF DELAY BY THE BAC IN RESOLVING THE

REQUEST FOR RECONSIDERATION BY A
DISQUALIFIED BIDDER
Failure to decide on the protest within the prescribed
seven (7) calendar day period, does not result in the
automatic qualification of an ineligible bidder nor in the
curing of any defect found in its bid. The post-disqualified
bidder cannot be awarded the contract by mere failure of
the BAC/HOPE to resolve or rule on the MR or protest,
without prejudice to whatever sanctions that may be
imposed upon the BAC/HOPE if there is delay without
justifiable cause.
16
NON-POLICY MATTER
OPINIONS
NPM 007-2013
APPLICABILITY OF ‘NO CONTACT RULE’ TO
DISQUALIFIED BIDDERS
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 Section 32.1 of the IRR. Since
their bids are no longer part of the evaluation, the “no
contact rule” need not be applied to them. Hence,
disqualified bidders may convey to the BAC any valid,
reasonable and lawful information or observation they
have pertaining to the bids submitted by qualified
bidders.
17
18
STANDARD OF ETHICS
Highest Standard of Ethics

• The standard of ethics required to be
observed by procuring entities and bidders,
manufacturers, suppliers or distributors
during the procurement and execution of
contract.
• Bidders determined to have committed

corrupt, fraudulent, collusive and coercive
practices by the government will not be
eligible to bid in its projects.
19
PENAL PROVISIONS
20
CORRUPT PRACTICES
Behavior on the part of officials in the public or
private sectors by which they improperly and
unlawfully enrich themselves, others, or induce
others to do so, by misusing the position in which
they are placed, and it includes the offering, giving,
receiving, or soliciting of anything of value to
influence the action of any such official in the
procurement process or in contracting execution;
entering, on behalf of the government, into any
contract or transaction manifestly and grossly
disadvantageous to the same, whether or not the
public officer profited or will profit thereby.
21
FRAUDULENT PRACTICES
Misrepresentation of facts in order to

influence a procurement process or the
execution of a contract to the detriment of
the Procuring Entity, and includes collusive
practices among bidders (prior to or after bid
submission) designed to establish bid prices
at artificial, non-competitive levels and to
deprive the Procuring Entity of the
benefits of free and open competition.
22
CORRUPT OR FRAUDULENT
PRACTICES
The pertinent provisions of the Anti-Graft

and Corrupt Practices Act, or R.A. 3019,
shall also be applied in determining the
existence of “corrupt or fraudulent
practice”.
23
COLLUSIVE PRACTICES
Scheme or arrangement between two (2) or

more bidders, with or without the knowledge
of the Procuring Entity, designed to
establish bid prices at artificial, non-
competitive levels.
24
COERCIVE PRACTICES
Harming or threatening to harm,

directly or indirectly, persons, or their
property to influence their
participation in a procurement process,
or affect the execution of a contract.
25
APPLICABLE PENALTY
Imprisonment for not less than six (6)

years and one (1) day but not more than
fifteen (15) years.
Penalty of temporary or perpetual

disqualification from public office (Public
Official)
Permanent disqualification from

transacting business with the government
(Private Individual)
26
OFFENSES COMMITTED BY PUBLIC
OFFICERS
1. Opening any sealed Bid including but not
limited to Bids prior to the appointed time
for the public opening of Bids or other
documents.
2. Delaying, without justifiable cause, the

screening for eligibility, opening of bids,
evaluation and post evaluation of bids,
and awarding of contracts beyond the
prescribed periods of action.
27
OFFENSES COMMITTED BY PUBLIC
OFFICERS
3. Unduly influencing or exerting undue
pressure on any member of the BAC or
any officer or employee of the procuring
entity.
4. Splitting of contracts.
5. Abuse by the head of the procuring entity

of his power to reject any and all bids with
manifest preference to any bidder who is
closely related to him.
28
OFFENSES COMMITTED BY
PRIVATE INDIVIDUALS
1. When two or more bidders agree and submit
different bids all the while knowing that the
bid(s) was so much higher than the other that
the latter could not be accepted and that the
contract will surely be awarded to the pre-
arranged lowest bid.
2. When a bidder maliciously submits different bids
through two or more persons, corporations,
partnerships or any other business entity in
which he has an interest, to create the
appearance of competition that does not in fact
exist so as to be adjudged as the winning bidder.
29
PRIVATE INDIVIDUALS
3. When two or more bidders enter into an
agreement which calls upon one or more of them
to refrain from bidding for procurement
contracts, or which requires one or more of them
to withdraw Bids already submitted, in order to
secure an undue advantage to any one of them.
4. When a bidder, by himself or in connivance with

others, employs schemes which tend to restrain
the natural rivalry of the parties or operates to
stifle or suppress competition and thus produce a
result disadvantageous to the public.
30
PRIVATE INDIVIDUALS
5. Submitting eligibility requirements that contain

false information or falsified documents
calculated to influence the outcome of the
eligibility screening process.
6. Submitting Bidding Documents that contain false

information or falsified documents or conceal
such information to influence the outcome of the
public bidding.
31
PRIVATE INDIVIDUALS
7. Participating in a public bidding using the name
of another or allow another to use one’s name.
8. Withdrawing a Bid, after it shall have qualified
as the Lowest Calculated Bid/Highest Rated Bid,
or refusal to accept an award, without just cause
or for the purpose of forcing the Procuring
Entity to award the contract to another bidder.
This shall include the non-submission within the
prescribed time, or delaying the submission of
requirements such as, but not limited to,
performance security, preparatory to the final
award of the contract.
32
COVERAGE
 The foregoing penalties and offenses shall cover

all types of procurement whether done manually
or electronically.
 When the bidder is a juridical entity, criminal

liability and the accessory penalties shall be
imposed on its directors, officers or employees
who actually commit any of the foregoing acts.
33
COVERAGE
 If a person previously held liable or found guilty

under the provisions of the Act and this IRR has a
controlling interest in a prospective bidder-entity
the said bidder-entity shall be disqualified to
participate in any procurement activity being
conducted by the Government.
34
JURISDICTION
Jurisdiction over the offenses defined under this

Rule shall belong to the appropriate courts,
according to laws existing at the time of the
commission of the offenses.
35
CIVIL LIABILITY
36
CIVIL LIABILITY
Restitution for the damage done; or
Forfeiture in favor of the government of

any unwarranted benefit derived from the
act or acts in question or both, at the
discretion of the courts.
37
CIVIL LIABILITY
All contracts executed in accordance with

this Act shall contain a provision on
liquidated damages which shall be
payable in case of breach thereof.
Once the cumulative amount of liquidated
damages reaches 10% of the amount of the
contract, the procuring entity shall
terminate the contract, without prejudice to
other causes of action and remedies open to it.
(NPM 59-2014)
38
ADMINISTRATIVE
SANCTIONS
39
ADMINISTRATIVE
SANCTIONS
Suspension for 1 year (first offense); for 2
years (second offense)
Bid Security or the Performance Security
posted by the concerned bidder or
prospective bidder shall also be forfeited.
The HOPE may delegate to the BAC the
authority to impose the aforementioned
administrative penalties.
40
ADMINISTRATIVE
SANCTIONS
 The procedures for the blacklisting of
manufacturers, suppliers, distributors,
contractors, or consultants for
Government projects shall be undertaken
in accordance with the guidelines to be
issued by the GPPB. (GPPB Resolution No.
09-2004 pursuant to 69.4 of the Revised
IRR)
41
42
BLACKLISTING AND SUSPENSION
BLACKLISTING
An administrative penalty disqualifying a
person or an entity from participating in any
government procurement for a given period.
SUSPENSION
The administrative penalty imposed for
infractions committed by a contractor during
competitive bidding stage, whereby such
contractor is prohibited from further
participation in the bidding process of an
agency. 43
SANCTIONS
I. FIRST OFFENSE:
 Suspension for one (1) year
II. SECOND OFFENSE:

 Suspension for two (2) years
III. Bid Security or Performance Security is

also forfeited
- without prejudice to the imposition of

additional administrative sanctions as the
internal rules of the agency may provide
and/or further criminal prosecution.
44
WHO MAY INITIATE
• Any bidder/prospective bidder or duly

authorized observer by filing a written complaint
with the BAC.
• BAC may also motu proprio commence the

proceedings upon prima facie determination that
the contractor as a bidder or prospective bidder
has committed any of the grounds for
blacklisting during the competitive bidding stage.
45
COMPETITIVE
BIDDING STAGE
46
GROUNDS FOR BLACKLISTING
1. Submission of eligibility requirements

containing false information or falsified
documents.
2. Submission of Bids that contain false
information or falsified documents, or the
concealment of such information in the Bids
in order to influence the outcome of
eligibility screening or any other stage of the
public bidding.
3. Allowing the use of one’s name , or using the
name of the name of another for purpose of
public bidding.
47
4. Withdrawal of a bid, or refusal to accept

an award, or enter into contract with the
government without justifiable cause,
after he had been adjudged as having
submitted the Lowest Calculated
Responsive Bid or Highest Rated
Responsive Bid.
5. Refusal or failure to post the required
performance security within the
prescribed time.
48
6. Refusal to clarify or validate in writing its
Bid during post qualification within a period
of seven (7) calendar days from receipt of the
request for clarification.
7. Any documented unsolicited attempt by a
bidder to unduly influence the outcome of the
bidding in his favor.
8. All other acts that tend to defeat the purpose
of the competitive bidding, such as habitually
withdrawing from bidding or submitting late
bids or patently insufficient bids, for at least
three (3) times within a year, except for valid
reasons.
49
PROCEDURE FOR
BLACKLISTING
1. Initiation of Action
2. BAC to verify the existence of the grounds
3. Notify Contractor
Complaint has been filed
Show cause
Hearing to be conducted upon request
Consequence of being blacklisted
4. Submit within 5 cd from receipt, contractor to

submit written answer (no time extension
allowed)
50
PROCEDURE FOR
BLACKLISTING
5. Failure to answer, BAC to issue a resolution
recommending suspension in any bidding
process of the agency and forfeiture of bid
security
6. If an Answer is submitted but no hearing is
requested, BAC shall determine the case based on
the documents then issue a resolution
recommending suspension in any bidding
process of the agency and forfeiture of bid
security
7. Hearing
Non-litigious and to be terminated within 5
cd
51
BAC may Invite Observers
PROCEDURE FOR
BLACKLISTING
8. Decision
 HOPE shall issue Resolution within 15 cd from
receipt
9. Determine if reasonable cause exists
10. To issue Resolution suspending contractor in any

bidding process of the agency and forfeiture of
bid security
11. Each violation shall be meted the corresponding

penalty.
12. Notify Contractor of Decision immediately from

its promulgation
52
PROCEDURE FOR
BLACKLISTING
13.File Motion for Reconsideration
 To be filed within 3cd from receipt
 Grounds:
1. Decision is not in conformity with evidence
and/or facts presented; and
2. Newly discovered evidence or facts
 HOPE to decide within 15 cd from filing
 Furnish contractor of the Decision immediately

after promulgation
53
PROCEDURE FOR
BLACKLISTING
14.Protest from Decision
 File a Protest under the IRR with the Appellate
authority within 7 cd from receipt of the
Resolution of MR
15.Finality of Decision
 Appellate Authority issues Blacklisting Order
disqualifying the erring contractor from
participating in the bidding of all government
projects.
54
STATUS OF BLACKLISTED
PERSON/ENTITY
Before issuance of order: erring contractor may

participate in the procurement of any government
project except in the agency where he is suspended.
Blacklisting Order is issued prior to the date of

the notice of award: blacklisted person/entity shall
not be qualified for award and such project/contract
shall be awarded to another bidder. If the
Blacklisting Order was issued after the award,
awarded contract shall not be prejudiced provided
the offense is not connected with the award. (NPM
125-2014)
55
CONTRACT IMPLEMENTATION
STAGE
56
1. Failure of the contractor, due solely to his

fault or negligence, to mobilize and start
work or performance within the specified
period in the Notice to Proceed (“NTP”);
2. Failure by the contractor to fully and

faithfully comply with its contractual
obligations without valid cause, or failure by
the contractor to comply with any written
lawful instruction of the procuring entity or
its representative(s) pursuant to the
implementation of the Contract;
57
3. Assignment and subcontracting of the

contract or any part thereof or substitution of
key personnel named in the proposal without
prior written approval by the procuring
entity;
4. For the procurement of goods, unsatisfactory

progress in the delivery of the goods by the
manufacturer, supplier or distributor arising
from his fault or negligence and/or
unsatisfactory or inferior quality of goods, as
may be provided in the contract;
58
5. For the procurement of consulting

services, poor performance by the
consultant of his services arising from his
fault or negligence;
6. For the procurement of infrastructure

projects, poor performance by the
contractor or unsatisfactory quality
and/or progress of work arising from his
fault or negligence as reflected in the
Constructor's Performance Evaluation;
59
7. Willful or deliberate abandonment or non-

performance of the project or contract by
the contractor resulting to substantial
breach thereof without lawful and/or just
cause;
In addition to the penalty of suspension,

the performance security shall also be
forfeited.
60
PROCEDURE FOR
BLACKLISTING
1. Undertake Contract Termination Proceedings:
Refer to Guidelines on Termination of Contracts
under GPPB Resolution No. 18-2004 dated 22
December 2004
2. HOPE shall immediately issue a Blacklisting

Order disqualifying the erring contractor from
participating in the bidding of all government
projects upon termination of the contract due to
default of contractor.
3. Forfeiture of performance security
61
DELISTING
Removal of a person/entity from the

Consolidated Blacklisting Report.
Automatically delisted after the period of

the penalty shall have elapsed, unless
blacklisting agency requests the GPPB to
maintain the blacklisted person/entity in
the list for justifiable reasons. Delisting
shall be made after the issuance of the
agency of a Delisting Order.
62
NON-POLICY MATTER
OPINIONS
NPM 109-2012
BLACKLISTING AFTER CONCLUSION OF

PROCUREMENT PROCESS
[B]lacklisting is possible even during contract
implementation, when an award has already
been made, or the subject procurement has been
concluded. However, in case the ground for
blacklisting was committed during the
competitive bidding stage and is pursued during
contract implementation, the PE should refer to
the Guidelines on Termination of Contracts
particularly on Termination for Unlawful Acts.
63
NON-POLICY MATTER
OPINIONS
NPM 033-2012
ALL OTHER ACTS UNDER SECTION 4.1(8) OF
THE BLACKLISTING GUIDELINES
Violation of the rules and procedures on

protest mechanism under RA 9184 and its
IRR does not involve the same kind of acts as
those in the examples given in Section 4.1(8),
such act cannot be deemed to be an act that
tend to defeat the purpose of competitive
bidding that will cause the imposition of
blacklisting against the actor.
64
NON-POLICY MATTER
OPINIONS
NPM 036-2009
SUSPENDED CONTRACTORS PARTICIPATING IN
FUTURE GOVERNMENT PROJECTS
It can be deduced from [Sec. 7 of the Uniform
Guidelines for Blacklisting] that a suspended
contractor may still be allowed to participate in
future government projects, except in the agency
where said contractor has been suspended, until a
Blacklisting Order shall have been issued and
become final and executory, subject to the conditions
provided therein.
65
66
GROUNDS FOR TERMINATION
1. Termination for Default;

2. Termination for Convenience;
3. Termination for Insolvency;
4. Termination for Unlawful Acts; and
5. Termination by Contractor / Consultant.
67
TERMINATION FOR DEFAULT
The PE shall terminate a contract when any

of the following conditions attend its
implementation:
1. In contracts for Goods

a. outside force majeure, the Supplier fails
to perform or deliver any or all of the
Goods, wherein such failure amounts to
at least 10% of the contract price.
68
b. As a result of force majeure, the

Supplier is unable to deliver or perform
any or all of the Goods, wherein such
failure amounts to at least 10% of the
contract price, for a period of not less
than 60 cd after receipt of notice from
the PE that the force majeure is
deemed to have ceased.
69
c. The Supplier fails to perform any other

obligation under the Contract.
70
2. In contracts for Infrastructure Projects
a. Due to Contractor’s fault and while the

project is on-going, it has incurred a
negative slippage of 15% or more;
b. After the expiration of the contract
time, the Contractor incurred negative
slippage of 10% or more, due to its own
fault; or
71
c. The Contractor commits any or all of

the following:
i. Abandons the contract works, refuses or fails
to comply with a valid instruction of the PE
or fails to proceed expeditiously and without
delay despite a written notice by the PE;
ii. Does not have the listed minimum essential
equipment in the project site in accordance
with the approved work plan and equipment
deployment schedule;
72
c. The Contractor commits any or all of the
following:
iii. Does not execute the works in accordance with

the contract or neglects to carry out its
contractual obligations;
iv. Neglects or refuses to remove materials or
perform a new work that has been rejected as
defective or unsuitable; or
v. sub-lets any part of the works without
approval of the PE.
73
TERMINATION FOR CONVENIENCE
 The PE may terminate the contract at

any time for its convenience.
 The HOPE shall determine the existence

of conditions that would make the project
implementation economically,
financially or technically impractical
and/or unnecessary.
74
TERMINATION FOR
INSOLVENCY
 The PE shall terminate the contract if

the Supplier/Contractor/Consultant is
declared bankrupt or insolvent.
 The bankruptcy/insolvency of the

Supplier/ Contractor/ Consultant must
be that as determined by a court of
competent jurisdiction.
75
TERMINATION FOR UNLAWFUL
ACTS
 The PE may terminate the contract in

case it is determined prima facie that
the Supplier/ Contractor/ Consultant
has engaged, before or during the
implementation of the contract in
unlawful deeds and behaviors relative
to the contract acquisition and
implementation.
76
TERMINATION FOR UNLAWFUL
ACTS
 Unlawful acts include, but not limited to,
the following:
i. Corrupt, fraudulent, collusive and coercive

practices;
ii. Drawing up or using forged documents;
iii. Using adulterated materials, means or
methods, or engaging in production
contrary to rules of science or the trade;
iv. Any other act/s analogous to the foregoing.
77
TERMINATION BY
CONTRACTOR/CONSULTANT
 The Contractor may terminate his contract with
the PE if the works are completely stopped for a
continuous period of at least 60 cd, through no
fault of its own for the following reasons:
i. Failure of PE to deliver supplies, materials, right-

of- way, or other items under the terms of the
contract; or
ii. Works is disrupted by adverse peace and order
situation, certified by the AFP Provincial
Commander and approved by the Secretary of
National Defense.
78
TERMINATION BY
CONTRACTOR/CONSULTANT
2. In contracts for Consulting Services
 The Consultant may terminate its agreement

with the PE if the latter is in material breach of
its contractual obligations and has not remedied
the same within 60 cd from receipt of the
Consultant’s notice specifying such breach.
79
PROCEDURES FOR TERMINATION
OF CONTRACTS
1. Verification
 The implementing unit shall, within 7cd

from receipt of written report of acts or
causes which may constitute ground/s for
termination, verify the existence of such
grounds, and shall execute a Verified
Report, with all relevant evidence attached.
80
OF CONTRACTS
2. Notice to Terminate
 The HOPE shall terminate contract only by written
notice to the Contractor/Supplier stating therein the
following:
i. the grounds and the statement of the acts that
constitute the grounds for which the contract is
being terminated;
ii. extent of termination;
iii. an instruction to the Supplier/ Contractor/
Consultant to show cause why the contract
should not be terminated; and
iv. special instruction of the PE, if any.
81
OF CONTRACTS
2. Notice to Terminate
 The PE may withdraw the Notice to Terminate, at
any time before the receipt of the Supplier’s/
Contractor’s/ Consultant’s position paper.
 Withdrawal of Notice to Terminate shall be based

on PE’s determination that items or works,
subject of the notice, had been completed,
delivered, or performed.
82
OF CONTRACTS
3. Show Cause
 A Verified position paper shall be submitted
by the Supplier/ Contractor/ Consultant to the
HOPE within 7cd from receipt of the Notice
of Termination.
 Failure by the Supplier/ Contractor/

Consultant to submit the verified position
paper within the reglementary period shall
cause the HOPE to issue an Order of
termination.
83
OF CONTRACTS
4. Decision
 Within a non-extendible period of 10 cd upon
receipt of the verified position paper, the
HOPE shall decide, whether or not to
terminate the contract.
 Failure by the Supplier/ Contractor/

Consultant to submit the verified position
paper within the reglementary period shall
cause the HOPE to issue an Order of
termination.
84
OF CONTRACTS
4. Decision
 Termination shall be based only on the
ground/s stated in the Notice to Terminate.
 HOPE may create Contract Termination

Review Committee (CTRC) to assist him in the
discharge of his function.
 All findings or decisions of the CTRC are

subject to the approval of the HOPE.
85
OF CONTRACTS
5. Take-over of Contracts
 If a PE terminates a contract due to default,
insolvency, or for a cause, it may enter into a
Negotiated Procurement pursuant to Section
53(c) of RA 9184 and 53.3 of its IRR.
86
OF CONTRACTS
 Sections 53.3.1 to 53.3.3 of the IRR of RA

9184 provides for the procedures in
conducting the negotiation, thus:
1. The contract may be negotiated starting with the second
lowest calculated/highest rated bidder for the project
under consideration at the bidder’s original bid price.
2. If negotiation fails, then negotiation shall be done with

the third lowest calculated/highest rated bidder at his
original price. If the negotiation fails again, a short list
of at least three (3) eligible contractors shall be invited
to submit their bids, and negotiation shall be made
starting with the lowest calculated/highest rated bidder.
87
OF CONTRACTS
 Sections 53.3.1 to 53.3.3 of the IRR of RA

9184 provides for the procedures in
conducting the negotiation, thus:
3. Authority to negotiate contracts for projects under these
exceptional cases shall be subject to prior approval by
the Heads of the Procuring Entities concerned, within
their respective limits of approving authority.
88
OF CONTRACTS
6. PE’s options in Termination for
Convenience
 Applies only to contract for Goods
 Goods shall be accepted if performed or are ready for

delivery within 30 cd after receipt of Supplier’s Notice to
Terminate at the contract terms and prices.
 Goods not yet performed or ready for delivery, PE may

elect:
i. To have any portion delivered or performed and paid

at the contract terms and prices; and/or
ii. to cancel the remaining and pay to the Supplier an
agreed amount for partially completed or performed
goods and for materials and parts previously procured
89
by the Supplier
OF CONTRACTS
7. Notice by Contractor/Consultant
 Written notice must be served to the PE

at least 30 cd before its intended
termination.
 Contract is deemed terminated if it is

not resumed in 30 cd after receipt of
such notice by the PE.
90
NON-POLICY MATTER
OPINIONS
NPM 93-2012
TERMINATION FOR CONVENIENCE

A contract, in whole or in part, may be terminated at
any time for the convenience of the PE provided that
actual conditions exist making the project
implementation economically, financially, or
technically impractical and/or unnecessary, such as,
but not limited to, fortuitous event(s) or changes in
law and national government policies.
91
NON-POLICY MATTER
OPINIONS
NPM 93-2012
PAYMENT BASED ON QUANTUM MERUIT

xxx payment on quantum meruit is allowed only in
Termination for Convenience involving Contracts for
Goods. For infrastructure projects, however, the
contractor normally submits a statement of work
accomplished or progress billing in order that it will
receive the corresponding progress payment.
92
NON-POLICY MATTER
OPINIONS
NPM 44-2014
APPLICABILITY OF PROCEDURE FOR

TERMINATION OF CONTRACT
xxx procedures for termination of contracts mentioned in
Section IV of the Guidelines and in GCC Clause 19.1 of the
PBDs for the Procurement of Infrastructure Projects
apply to all types of termination of contracts regardless of
the grounds for termination. The mentioned
Section/Clause of the Guidelines and GCC does not
distinguish the grounds to which they shall be made
applicable. Exceptio firmat regulam in casibus non
exceptis. A thing not being excepted must be regarded as
coming within the purview of the general rule.
93
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THE PHILIPPINE GOVERNMENT

to participation by any interested party

a. Act No. 22 – Chief Engineer of US Army acted as the purchasing

b. Act No. 74 (1901) – mandated contracts for purchase of school

c. Act No. 82 (1901) – Provincial Governors and Municipal Mayors to

d. Act No. 146 – creating Bureau of Supply (supplies, materials,

e. EO 16 (1936) – No contract shall be entered into or renewed without

Procurement and Supply Law

2. Foreign Aid Organizations

Legislative Executive Judicial

Outdated, No oversight Very few

Lack of trust and confidence in Public Procurement System

• Lack of transparency • Use of PhilGEPS

• Lack of check and balance • Participation of civil society

• Unresolved procurement • Clearly defined protest

• Non-compliance with the • Penal, civil , and

Implementing Executive Memorandum

over 100 procurement rules & regulations

Signed by Pres. Signed by Pres. Signed by GPPB, on

Took effect on Took effect on Took effect on

and Creative and Goal-

Philippine Bidding Opinions

GPPB: spearheads the implementation of public

 Big procuring entities (defense, education, health, public

 Oversight agencies (budget, planning, finance, trade,

 Resource Persons (audit, anti-corruption agencies)

- DBM Secretary – Chairman

 R.A. 9184 Applies to:

b) State Universities and Colleges (SUCs)

c) Government Owned or Controlled Corporations (GOCCs)

d) Government Financial Institutions (GFIs)

e) Local Government Units (LGUs)

 R.A. 9184 governs the procurement of:

 Section 4, Revised IRR

 All fully domestically-funded procurement activities

 All foreign-funded procurement activities, unless

 As may be agreed upon by the GOP and IFI in their

 Projects funded from foreign grants

 Projects for International Competitive Bidding

 Consulting Services for National Competitive Bidding

 GOP negotiating panels shall:

 Adopt as default position, use of the IRR or selection

 Explain in writing if treaty or int’l/executive agreement

 Shall not apply to:

Transparency Competition Streamlined System of Public

 Covers procurement of all government agencies

 General Rule is Public/Competitive Bidding

 Alternative Methods of Procurement allowed in highly exceptional

 Use of transparent, objective, and non-discretionary criteria

 Increased transparency in the procurement process

 Professionalization of procurement officials

 Inclusion of Penal and Civil Liabilities

Assess • Review studies • Post/Advertise Procure

Identify • Cost-benefit • Oversee Implement

1. Provide administrative support to the BAC

• The Chairs and

What is a Project Procurement