Training on

RA 9184:
Government Procurement Reform Act
and its
Implementing Rules and Regulation
EnP Review

13 May 2018
OBJECTIVES
By the end of presenting this topic, the participants will
be able to understand:
a. the principles and concepts of
procurement;
b. the people involved and their roles in the
procurement;
c. the preparation/processes involved in
procurement;
d. the appropriate methods used/applied in
the procurement; and
e. the necessary policies/provisions involved
in procurement
W H AT IS PROCUREMENT?

 Procurement encompasses the whole process of

acquiring property or services. It begins when
an agency has identified a need and decided on
its procurement requirement. Procurement
continues through the processes of risk
assessment, seeking and evaluating
alternative solutions, contract award, delivery
of and payment for the property or services
and, where relevant, the ongoing management
of a contract and consideration of options
related to the contract. ( CP G , 2008)
W H AT IS PROCUREMENT?

 Procurement refers to the acquisition of goods,

consulting services, and the contracting for
infrastructure projects by procuring entity.
(Sec. 5(aa), IRR, R.A. 9184)

 Note:It may be necessary to integrate the

appropriate disposal of goods and
infrastructure projects.
W H AT IS PROCUREMENT?
 Value for Money – is the optimum combination of
whole of life costs and quality to meet the
customer’s requirements… (P. G.)

 It must be government’s policy that all public

procurement, should be based on value for
money, having due regard to propriety and
regularity. (P.G.)
 PHILIPPINE PROCUREMENT PARADIGM

HOPE Assess • Review studies • Post/Advertise

Procure HOPE
• Consolidate into APP opportunity
• Decide procurement • Open and evaluate
BAC BAC
method bids
• Approve APP • Post-qualify
BAC Sec • Determine readiness • Award and enter into TWG
contract
Budget BAC Sec

End User End User

Identify • Cost-benefit analysis • Oversee Implement

• Feasibility study implementation
• Market study • Inspect and accept
• PPMP deliveries
• Release payment

NEEDS SATISFACTION
The Government
Procurement Reform Act
⚫Republic Act No. 9184
“An Act providing for the Modernization,
Standardization and Regulation of the
Procurement Activities of the Government and
for other Purposes”
E FFECTIVITY
✓ Consolidation of House Bill 4809 and
Senate Bill 2248
✓ Signed into law on J A N U A RY 10, 2003
✓ Published on J A N U A RY 11, 2003
✓ Took effect on J A N U A RY 26, 2003
✓ IRR-A took effect on October 8, 2003
✓ R E V I S E D IRR signed July 22, 2009
✓ Published on August 3, 2009
✓ E F F E C T I V I T Y is September 2, 2009

✓ 2016 R E V I S E D I R R
✓ Published on August 29, 2016
✓ E F F E C T I V I T Y is October 28, 2016
GENERAL PROVISIONS

1. Declaration of Policy
2. Procurement Governing
Principles
3. Scope and Application
DECLARATION OF POLICY

⚫ Government’s commitment to good governance

⚫ Adherence to the principle of transparency,

accountability, equity, efficiency and economy

⚫ Procurement must be competitive and

transparent – Public Bidding

⚫ Adoption of standard and uniform set of rules

governing procurement of works, goods and
consulting services
 Procurement Governing
Principles
⦿ 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 GOVERNING PRINCIPLES

⚫ Transparency
⚫ Efficiency – Streamline Procurement Process

⚫ Equity – Fairness

⚫ Competition

⚫ Accountability

⚫ Public Monitoring
⚫Economy – Value for Money

(TEE-CAPE)
 5 “R IGHTS ” IN PUBLIC PROCUREMENT

Value for Money Source

Time/ Quantity
Deliver
y
Procurement

P r ice Quality
SCOPE AND APPLICATION
 R.A. 9184 Governs the Procurement of:
a. Infrastructure Projects
b. Goods, Supplies, Materials and
Related Services
c. Consulting Services

 R.A. 9184 Covers – Procurement Planning up to

Contract Implementation
S COP E AND APPLICATION
⚫ Scope and Application of the revised IRR:
a. Domestically-funded procurement.
b. Foreign-funded procurement, unless
otherwise specified in treaty stipulations.
c. “Pacta sunt servanda” - Any treaty or
international or executive agreement shall
be observed.

NOTE: Negotiating panel members’ default

position - use of the IRR, or at least, selection
through competitive bidding.
 Scope and Application
 The revised IRR shall not apply to:
⚫ Procurement of Goods, Infrastructure Projects, and Consulting
Services funded from foreign Grants covered by R A 8182
⚫ Acquisition of real property (RA 8974)
⚫ Public-Private sector infrastructure or development projects
(RA 6957 /7718)
 Procurement
Planning and
Budget Linkage
PROCUREMENT PLANNING AND
BUDGET LINKAGE
 Section 7, R.A. No. 9184:
⚫ Allprocurement should be within the approved
budget
⚫ Should be meticulously and judiciously planned
⚫ Only those considered crucial to the efficient
discharge of governmental functions shall be included
in the Annual Procurement Plan
PROCUREMENT PLANNING AND
BUDGET LINKAGE
⚫ Noprocurement shall be undertaken unless it is in
accordance with the approved APP
⚫ APP shall be approved by the H O P E and must be
consistent with yearly budget
⚫ AP Pshall be formulated and revised only in
accordance with the guidelines set forth in the IRR
 PROCUREMENT PLANNING AND
BUDGET LINKAGE

• Approved Budget for the Contract (ABC)

--budget for the contract duly approved by the HOPE, as
provided for in the GAA, continuing, and automatic
appropriations, in the case of National Government
Agencies ….xxx…
– pending approval of the GAA, the ABC shall be based
on the budget levels in the NEP
P R E P AR ATIO N OF PPMP
The PPMPs shall include:
– Information on whether PAPs will be contracted out,
implemented by administration, or consigned
– Type and objective of the contract to be employed
– Extent/size of contract scopes/packages
⚫ Procurement methods to be adopted, and indicating if the
procurement tasks are to be outsourced
⚫ Time schedule for each procurement activity and for
contract implementation
⚫ Estimated budget for the general component of the
contract.
P R E P AR ATIO N OF APP
 Only those considered crucial to efficient
discharge of functions shall be included in the
APP
 APP shall include provisions for foreseeable
emergencies based on historical records
 In case of infrastructure projects, APP shall
consider appropriate timing/phasing of related
project activities, such as engineering design
and acquisition of right-of-way
 AP P shall be approved by H O P E
 AP P must be consistent with approved budget
 Includes AP P -CS E and AP P for all goods,
consultancy, and infrastructure
 ANNUAL PROCUREMENT PLAN
(Name of Agency) Annual Procurement Plan for F Y

Code Procurem P M O Mode of Schedule for Each Procurement Activity Sour Estimated Remarks
(PAP ent / Procureme ce of Budget (PhP) (brief description of
) Program/ End- nt Ads/Post Sub/Open Notice of Contract Fund Total MOO C O Program/Project)
Project User of IB/REI of Bids Award Signing s E

DEF I N I TI ON
1. P R O G R A M (BESF)– A homogeneous group of activities necessary for the performance of a major purpose for which a
government agency is established, for the basic maintenance of the agency’s administrative operations or for the provisions
of staff support to the agency’s administrative operations or for the provisions of staff support to the agency’s line functions.
2. P R O J E C T (BESF)– Special agency undertakings which are to be carried out within a definite time frame and which are
intended to result in some pre-determined measure of goods and services.
3. PMO/End User - Unit as proponent of program or project
4. Mode of Procurement - Competitive Bidding and Alternative Methods including: selective bidding, direct contracting,
repeat order, shopping, and negotiated procurement.
5. Schedule for Each Procurement Activity - Major procurement activities (advertising/posting; submission and
receipt/Opening of bids; award of contract; contract signing).
6. Source of Funds - Whether GoP, Foreign Assisted or Special Purpose Fund
7. Estimated Budget - Agency approved estimate of project/program costs

8. Remarks - brief description of program or project

PREPARATION OF PPMP AND APP

• At the start of budget preparation period, prepare respective

proposed budgets for the budget year;
• Prepare respective PPMPs for different programs, activities, and
E nd -user
projects (PAPs) and submit to the procuring entity’s Budget Office.
Units

• Evaluates each end-user’s submitted P P M P and, if warranted,

include in the budget proposal for approval by the HO P E ;
• Furnish copy of budget proposal, after H O P E approval, and
B u dget corresponding PPMPs to the B A C Secretariat for review and
Office consolidation into proposed APPP.

• Consolidates the different PPMPs into the proposed APP;

• Finalize the APP, including the modes of procurement, as soon as
BAC/ the GA A , corporate budget, or appropriation ordinance is approved,
Secretariat for approval by the H O P E .
PREPARATION O F PROCUREMENT
M O N I T O R I N G R E P O R T (PMR)
⚫ Preparation shall be the responsibility of the
BAC
⚫ Shall cover all procurement activities specified
in the APP, whether ongoing and completed,
from the holding of pre-procurement conference
to issuance of N OA and approval of contract,
including the standard and actual time for each
major procurement activity
⚫P M R shall be approved and submitted
by the H O P E to the G P P B in printed and
electronic format within 14 c.d. after the
end of each semester
POSTING REQUIREMENT OF APP & P M R
⚫ Implementing Guidelines of Executive Order
No. 662, as amended, provides that:
All NGAs, G O C C s , GF Is, S U C s , and L G U s , through
their BACs and B AC Secretariats, shall post or cause to
be posted the following:
⯍ Annual Procurement Plan
⯍ Procurement Monitoring Report
⯍ List of N G O s , C S O s , or professional association invited as Observers
⯍ Blacklisting and Delisting Orders against Suppliers, Constructors,
and Consultants
U P DATIN G OF PPMPS AND APP
 Shall be undertaken every six (6) months or as often as
may be required by the H OPE ;
 Updating of PPM P shall be the responsibility of
respective end-user units
 Philippine Government Electronic
Procurement System (PhilGEPS)

 Phil GEPS shall serve as the primary and definitive source of

information on all government procurement.
 Utilized for the procurement of common-used supplies and
equipment
 Features of the G - E P S
a) Electronic Bulletin Board
b) Registry of Manufacturers, Suppliers, Distributors,
Contractors and Consultants
c) Electronic Catalogue
d) Virtual Store
e) Electronic Payment
f) Electronic Bid Submission
Procurement of Common-Use Supplies and
Equipment
- DBM-Procurement Service (PS)
- DBM-PS Catalogue in the P h il GEPS
- Procuring Entities without internet
access may avail of the PhilGEPS Public
Access Terminals to be installed at
D B M designated locations.
Bids and Awards Committee (BAC)
General Rule:
- Single B A C in Head Office
Exception:
- to expedite the procurement process for
practical intents and purposes H O P E
may create separate BACs where the
number and complexity of the items to be
procured so warrants
BAC Composition
- The Head of the PE shall designate at least FIVE (5)
but not more than SEVEN (7) MEMBERS of
unquestionable integrity and procurement proficiency.
Regular Members

1. Chairman (At least 3rd Ranking

Permanent Official)
2. Member representing the Legal or
Administrative areas
(At least a 5th Ranking Permanent Official)
3. Member representing the Finance area
(At least a 5th Ranking Permanent Official)
Provisional Members

1. An officer who has Technical expertise relevant to

the procurement.

2. Representative from the end user unit

- In Bureaus, Regional /Sub-Regional /District
Offices regular members shall be 3rd Ranking
Permanent Personnel.

- Alternate Members - The H O P E may designate

alternate B A C members who shall have the
same qualification as their principal. The
accountability of the principal and the alternate
shall be limited to their respective acts and
decisions.
- Term - B AC Members shall have a fixed term of
O N E (1) Y E A R

- Quorum – majority is required and presence of

the Chairman or Vice-Chairman is required.
- Upon expiration of the terms of the current
members, they shall continue to exercise their
functions until new BAC members are
designated.

- Succession- in case of resignation, retirement,

separation, transfer, re-assignment, removal or
death, the replacement shall serve only for the
unexpired term.
- Leave or Suspension - In case of leave or
suspension, the replacement shall serve only for
the duration of the leave or suspension.
- Check and Balance - In no case shall the
approving authority be the Chairman or a
member of the BAC.
- Jury Duty - BAC members shall give utmost
priority to BAC assignments over all other
duties and responsibilities.
Functions of the BAC
1. Advertise/Post Invitation to Bid
2. Conduct pre-procurement / pre-bid conference
3. Determine eligibility of bidders
4. Receive bids
5. Conduct evaluation of bids
6. Undertake post-qualification
7. Resolve motions for reconsideration
8. Recommend award of contracts
9.Recommend imposition of sanctions
10.Recommend use of Alternative Methods
11. Perform such other related functions
BAC Secretariat

- HOPE shall create a BAC Secretariat from

an existing organic office or create a
procurement unit to serve concurrently as
BAC Secretariat

- main support unit of the BAC

Head of the Secretariat:
* Central Offices - 5th ranking permanent
employee
*Bureaus/Regional Offices - 3rd ranking permanent
employee
*If not available, a permanent employee of
the next lower rank
 Functions of the B A C Secretariat:

- Provide administrative support for the

BAC
- Organize and make all necessary
arrangements for B A C meetings
- Attend B A C meetings
- Prepare minutes of the B A C meeting
- Take custody of procurement documents
- Manage the sale and distribution of
bidding documents
- Advertise/Post Bid Opportunities, Bid Docs
and N OA
- Assist in managing the procurement
processes
- Monitor procurement activities and make
proper report
-Consolidate PPMPs from various units of
the procuring entity
- Central channel of communication
- Jury Duty
Technical Working Group (TWG)
-Created by the BA C from a pool of technical,
financial and/or legal experts.
-Assist in the eligibility screening,
evaluation of bids and postqualification
- Jury Duty
Honoraria of BAC , B AC Sec and TWG Members
- P E may grant Honoraria in an amount not
to exceed 25% of their respective
monthly salary subject to availability of
funds
Observers

 In addition to the representative of C OA , the

B A C shall invite, I N A L L S TA G E S of the
procurement process, TWO (2) O B S E RV E RS ,
1. Duly recognized private sector
association
2. Non-government organization (NGO)
• The observers shall come from an organization duly
registered with the SEC or CDA, thus:
a. Have knowledge, experience or
expertise in procurement;
b. Absence of actual or potential conflict
of interest in the contract to be bid;
c. Comply with other criteria
determined by the BAC.
•
Legal Assistance & Indemnification

- The G P P B shall establish an equitable

indemnification package for BAC , B AC
Secretariat & TWG Members
Disclosure of Relations
- All bidding documents shall be
accompanied by a SW O R N A F F IDAVIT
of the bidder that he or any officer of
their partnership or corporation is N O T
R E L AT E D to the H O P E by
consanguinity or affinity up to the third
(3rd) civil degree.
- Applies to B AC , B A C Secretariat ,
TWG members and Project
Consultants.
Protest Mechanism

- Motion for Reconsideration (MR) – filed

within three (3) c.d. from receipt of B A C
Notice.
- B A C shall resolve M R within seven (7) c.d.
- If M R is denied, bidder may file a PROTEST
in WRITING to the H O P E
-
- Non-refundable Protest fee equal to 1% of ABC
(New GPPB Reso. 05-2012)
-Protest must be filed within seven (7) c.d. from the
date the BAC issued a Resolution denying the MR.
-The Head of the Agency shall resolve the Protest
within seven (7) c.d. from RECEIPT thereof.
G P P B R E S O . 05-2012 ( DATED 30 M A R 2012) A M E N D I N G
S E C T I O N S 55.3 A N D 55.4 O F T H E R E V I S E D I R R O F R A 9184 O N T H E
AMOUNT OF THE NON-REFUNDABLE PROTEST F E E AND FOR OTHER
PURPOSES

A B C Range Protest Fee

PhP50 Million and below 0.75% of the A B C

More than PhP50 Million to PhP100 P h P 500,000.00

Million
More than PhP100 Million to PhP500 0.5% of the A B C
Million

More than PhP500 Million to PhP1 P h P 2,500,000.00

Billion
More than PhP1 Billion to PhP2 0.25% of the A B C
Billion
More than PhP2 Billion to PhP5 P h P 5,000,000.00
Billion
More than PhP5 Billion 0.1 % of the ABC
Administrative, Civil & Criminal Liability
1. Administrative Liability
- 1st offense - 1 yr. suspension
- 2nd offense - 2 yrs. Suspension
- Disqualification to participate in any
specific bidding
2. Civil Liability
- A conviction shall carry with it civil
liability, in the form of:
a . restitution for the damage done; or b.
forfeiture of unwarranted benefit.
3. Criminal Liability
- Imprisonment for not less than S I X (6)
Y E A R S and O N E (1) DAY, but not more than
F I F T E E N (15) Y E A R S
Standardized
Bidding
Procedures
S T A N D A R D I Z E D B I D D IN G P R O C E D U R E S
FOR GOODS
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference

Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope – Financial
Docs & Technical
Proposal
Proposal

Bid Evaluation Award of

Post-qualification Contract
& Ranking
62
 STANDARD BIDDING PROCEDURES FOR
C O N S U LT I N G S E RV I C E S
Pre-Procurement Submission and Opening of
Advertisement Eligibility Envelopes
Conf.
(Eligibility Check)

Submission Opening of
Pre-Bid of Technical Envelopes
Shortlisting Conference Bids & Preliminary Exam.

Bid Evaluation
Post- Award of
& Negotiation
Qualification Contract
Ranking
 STANDARD BIDDING PROCEDURES

• Pre-Procurement Conference
• Advertisement/Posting of ITB or REI
• Pre-Bid Conference
• Supplemental/Bid Bulletin
• Submission and receipt of Bids
• Opening of Bids
- Technical
- Financial
PRE-PROCUREMENT C O N F E R E N C E
 Purpose:
To determine readiness of procurement and criteria

 Conducted prior to advertisement/posting of the ITB/REI

 Mandatory – above PhP 2 M for Goods, above PhP1M for
Consulting Services and above PhP5M for Civil Works
 Attended by the ffg:
a) BAC d) Consultants
b ) B A C Sec. e) EU/Other officials
c ) B A C -T WG
A D V E R T I S E M E N T /PO S T IN G OF
INVITATION TO BID
⦿ Purpose:
To open/encourage wide participation among prospective bidders
in pursuit of transparency and economy

⦿ Contents of the Invitation to Bid:

▪ Name and brief description of the specific procurement
▪ Criteria used for bid examination and evaluation, post-
qualification and award of contract
▪ Date, time and place of the ff.:
i. Submission, receipt, opening and examination of bids; and
ii. Pre-bid conference
▪ A B C and source of funding
▪ Period of availability and price of the bid docs, place where the bid
docs may be secured and websites where the bid docs may be
downloaded
▪ Name, address, tel. and fax numbers, e-mail and website addresses
of the procuring entity concerned
▪ Other relevant information
ADVERTISEMENT/POSTING O F
R E Q U E S T F O R E LIGIB ILITY AND
I N T E R E S T (REI)
⦿ Purpose:
To open/encourage wide participation among prospective bidders in
pursuit of transparency and economy

⦿ Contents of the R E I :
▪ Name and brief description of the specific procurement
▪ General Criteria to be used for eligibility check, the shortlisting,
and examination of evaluation of bids, post-qualification and award
of contract
▪ Date, time and place of the ff.:
i. Submission, receipt, opening and examination of bids; and
ii.Pre-bid conference A B C
▪ and source of funding
▪ Period of availability and price of the bid docs, place where the bid
docs may be secured and websites where the bid docs may be
downloaded
▪ Name, address, tel. and fax numbers, e-mail and website addresses
of the procuring entity concerned
▪ Other relevant information
ADVERTISEMENT OF INVITATION TO
BID
 Period between last day of period for Advertisement of
Invitation to Bid and Opening of Bids: 45 Calendar
Days

 Invitation to Bid should specify the A P P ROV E D

B U D G E T for the contract and the source of funding.

 A B C shall be the upper limit/ceiling for bid prices.

ADVERTISEMENT OF INVITATION TO
B ID
 Mandatory :
⚫ Goods -above P2M (old)- P10M (new)
⚫ Consulting Services – above P1M- P5M
⚫ Infrastructure Projects – above P5M- P15M
 Posted continuously for 7 calendar days –
⚫ Newspaper Advertisement
(At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at least
two (2) years before advertisement date)
⚫ PhilGEPS
⚫ website of the P E , if any.
⚫ website of IFI, if applicable. (Website prescribed by the foreign
government/foreign or international funding institution, in case of foreign
funded procurement)
⚫ At any conspicuous place in the P E premises
 I N V I T A T I O N T O B I D (IB) -
Condition Condition
Medium Frequency
1 2
• Newspaper of General Once in one
Nationwide Circulation newspaper of
🗸 
general nationwide
circulation
• PhilGEPS website Continuous posting
🗸 🗸

• PE’s Website, if available Continuous posting

🗸 🗸

• Conspicuous Place within the For at least 7 cd

premises of the Procuring Entity 🗸 🗸
concerned

Items to Procure Condition 1 Co ndition 2

• GOODS Above PhP2M/ P1 0M PhP2M/ P10Mand below
• INFRASTRUCTURE Above PhP5M PhP5 M/ P15M and
PROJECTS P15M below
• CONSULTING SERVICES PhP1M/ P5M
Above PhP1M/ P5M and below or with
duration of 4 months or
less
P R E -B ID C O N F E R E N C E
• Purpose:
To clarify and/or explain any of the requirements,
terms, conditions and specifications

• Required – ABC >=PhP1M (conducted at least once)

• Discretionary for ABC of less than P1M
• Held at least 12 c.d. before deadline for Submission of
Bids but not earlier than 7cd from posting the
advertisement or bid opportunities
• 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
Bulletin.
P R E -B ID C O N F E R E N C E
• Attendance of Bidder is not mandatory.
• At the option of the PE, only those who purchased bidding
docs shall be allowed to participate
• Bidders reps may be allowed to participate with a
written authorization
• Minutes shall be made available to all bidders/participants
not later than 3 c.d. after the Pre-Bid Conference.
⚫ Requests for clarification be made in writing at least
ten (10) c.d before the deadline set for the submission
and receipt of bids, for which B AC shall respond by
issuing Supplemental Bid Bulletin at least seven
(7) cd before the deadline set for the submission and
receipt of bids.
S UPPLE ME NTAL /B ID B U L L E T I N

 Purpose:
To clarify or modify any provision of the Bidding
Documents.

 Posted in P hi lGEPS and PE’s website

 Issued at least 7 cd before the deadline for bid
submission
 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
SUBMISSION AND RECEIPT OF BIDS

• Bids shall be submitted in two (2) separate sealed

bid envelopes (i.e., technical and financial) on or
before the date, time, and place specified in the
Invitation to Bid and bidding documents.

• Bids submitted after the deadline shall be

considered as “Late” and should not be accepted
 Opening of Bids
 Purpose:
To determine the eligibility of the bidders
using the criteria specified in the Bidding
Documents
 Bids shall be opened immediately after the
deadline for submission and receipt of bids (Sec.
29)
 The bidders or their duly reps may attend the
opening of bids.
 Observers shall also be invited to enhance
transparency (Sec. 13)
 Opening of Bids

• Two-Envelope System
1st Envelope - Eligibility Req. &
Technical Component
2nd Envelope – Financial
Component
OPENING OF BIDS

Technical Proposal (1st Envelope)

• Eligibility Requirements
• Tax Clearance;
• Certificate of P hi lGEP S Registration
• Bid Security – Form, Amount and Validity
• Technical Specifications -
• Production/delivery schedule
• Manpower requirements
• After sales service/parts
• Omnibus Sworn Statement
77
OPENING OF BIDS

 P R E L . E X A M I NAT I O N O F T E C H N I C A L
PROPOSAL

 Opening the Technical Envelope which contains

the Technical Proposals to ascertain compliance
with the submission requirements
 A non-discretionary “pass/fail” criterion shall be
used
 A checklist of requirements (Class “A” and “B”)
shall be used.
 OPENING OF BIDS

 Eligibility Requirements

 The capabilities and resources of prospective bidders

shall be initially assessed, S U B J E C T TO POST-
Q UA L I F I C AT I O N, to determine eligibility.

 The Eligibility Requirements are not contract sensitive.

ELIGIBILITY REQUIREMENTS
C L A S S “A” D O C U M E N T S

Legal Eligibility
• S E C , DTI, C D A Registration
• Tax Clearance;
• Mayor’s Permit
• Certificate of P h il GEP S Registration

Technical Eligibility

• Statement of A L L ongoing and completed gov’t & private Ks, including Ks

awarded but not yet started, w/in relevant period.

Financial Eligibility

• Audited Financial Statement stamped “received” by the B I R

• Net Financial Contracting Capacity or Credit Line Certificate

C L A S S “B” D O C U M E N T S

• Valid J o in t Venture Agreement ( JVA), if available; OR, Duly Notarized Statements

from A L L potential J V partners
 ELIGIBILITY REQUIREMENTS

• Legal Eligibility Criteria – Goods

• General rule: 60% Filipino
• Foreign bidders eligible allowed –
– If stated in treaty or international or executive
agreement
– National of a country offering reciprocity rights to

Filipinos
– Goods not available from local suppliers

– To prevent situations that defeat competition or

restrain trade
 ELIGIBILITY REQUIREMENTS

• Technical Eligibility Criteria – Goods

General Rule Exceptions Require the ff.:
1. Expendable If, at the outset and after a) At least 2 similar
Supplies market research, applying contracts aggregate
• 25% of the ABC the general rule will likely amount at least
result to: equivalent to required
2. Services and Non- percentage; and
expendable Supplies 1.Failure of bidding; or b) Largest of the similar
• 50% of the ABC 2.Monopoly contracts amounts to
at least 50% of
required percentage
 ELIGIBILITY REQUIREMENTS

• Financial Eligibility Criteria –

• N F C C at least equal to A B C
• N F C C = [Current Assets – Current liabilities (K)] minus the value of all
outstanding or uncompleted contracts, including awarded contract not
yet started
• C L C at least equal to 10% of A B C
– Issued by Universal or Commercial Bank
ELIGIBILITY REQUIREMENTS
 Class B:
⚫ Valid J VA .
⚫ Duly Notarized Sworn Statements from all potential
J V partners to enter into a J VA .
⚫ Failure to create J VA - ground for forfeiture of Bid
Security.
⚫ Each J V partner shall submit Legal eligibility doc,
but submission of technical & financial docs by one
J V partner will suffice.
BID SECURITY
(Sec 27)
• Purpose:
To serve as guarantee that the successful
bidder shall, within 10 cd or less from receipt
of the NOA, enter into contract with the PE
and furnish the Performance Security
required.

• The BS shall be in an amount specified in Sec

27 of the IRR
– Bank issued securities must be issued by a
universal/commercial bank
– Surety Bonds must be accompanied by
certification from Insurance Commission that
issuer is authorized to issue such security
 BID SECURITY (S EC . 27)
Form of Bid Security Amount of Bid Security
(Equal to Percentage of the
ABC)
a) Cash or cashier’s/manager’s check issued
by a Universal or Commercial Bank.
b) Bank draft/guarantee or irrevocable letter
of credit issued by a Universal or Commercial
Bank: Provided, however, that it shall be Two percent (2%)
confirmed or authenticated by a Universal or
Commercial Bank, if issued by a foreign bank.
c) Surety bond callable upon demand issued
by a surety or insurance company duly
certified by the Insurance Commission as Five percent (5%)
authorized to issue such security.
d) Any combination of the foregoing. Proportionate to share of form
with respect to total amount of
security
 BID SECURITY
⚫ Bidderhas option to choose among acceptable
forms of security

⚫ Procuring entity may not limit options available to

bidders
 Inlieu of the bid security, per G P P B
Resolution No. 03-2012 (27 J a n 2012), the
bidder may provide a duly-notarized Bid
Securing Declaration, additional form of
B S that has no or insignificant money
value, aimed to increase bidders’
participation, decrease transactional cost,
and reduce bid prices
BID VALIDITY
(Sec. 28)
⚫ Bids and bid securities shall be valid for a
reasonable peroid as determined by the HOPE,
which shall be indicated in the Bid Docs, but in no
case shall exceed 120 days from bid opening

⚫ Unless necessary to extend the bid validity, the

HOPE shall request the extension in writing to all
those who submitted bids before the expiration
date, therefor. While bidders has the right to
refuse to grant without forfeiting their bid
security
OMNIBUS SWORN STATEMENT

➢ Project Related statement that includes the following:

 Non-inclusion in blacklist
 Authenticity of documents
 Verification authority
 Signatory’s authority
 Disclosure of relations
 Responsibilities of bidders
 Labor laws and standards

❑ A Proforma is provided in the Bidding Docs which the Bidder will

fill-out and have it duly-notarized prior to submission of the Bids.
OPENING OF BIDS

Financial Proposal (2nd Envelope)

• Financial Bid Component /B id Price

 OPENING OF BIDS
 P R E L . E X A M I NAT I O N O F F I N A N C I A L P RO P O S A L

 Open the Financial Envelopes of remaining eligible

bidders whose Technical Proposals were rated
“passed” to ascertain: (a) compliance with the
submission requirements; and (b) that bid price does
not exceed A B C

 Only bids that pass prel. examination of both

envelopes shall be rated “passed” and considered for
evaluation and comparison

 “Failed” bidder has 3 c.d. to file request for

91
reconsideration. B AC has 7 c.d. to decide
OPENING OF BIDS

• Contents of the 2 nd Envelope (Financial

Component)

1. Financial Bid Form (includes bid prices and bill of

quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI, S E C ,
or C DA , if claiming preference as Domestic Bidder
or Domestic Entity
3. Other documents required in the bidding
documents
B I D M O D I F I C A T I O N A N D W ITH DRAWAL O F
B I D S (S EC 26)

➢ Bid Modification
 A bidder may modify his bid, provided that this is done
before the deadline for the receipt of bids.
 The modification shall be submitted in a sealed envelope duly
identified as a modification of the original bid and stamped
received by the BAC .
➢ Bid Withdrawal
 A bidder may, through a letter, withdraw his bid or express
his intention not to participate in the bidding before the
deadline for the receipt of bids. In such case, he shall no
longer be allowed to submit another Bid for the same contract
either directly or indirectly.
BID EVALUATION
 Purpose:
To determine the Lowest Calculated Bid (LCB),
by:
1. Establishing correct calculated prices of
bids; and
2. Ranking calculated total bid prices from
lowest to highest

 A non-discretionary criterion shall be used,

which shall include consideration of: (a)
completeness of bids; and (b) minor arithmetical
corrections
BID EVALUATION
 No Contact Rule - Prohibition on
communication w/ bidders from bid evaluation
until award of contract (sec 32.1 of IRR)

 Bid Evaluation shall not be more than 7 c.d.

 In case of discrepancies, the ff. shall prevail:

- words over figures
- unit prices over total prices
- actual sum of prices over total price
- bill of quantities over detailed est.
BID EVALUATION
 Unless the ITB specifically allows partial bids,
those not providing all required items shall be
considered non-responsive

 Placing no price is considered as non-responsive

 Specifying a “0” or “-” means it is offered for free

 POST-QUALIFICATION
 Purpose:
To determine whether bidder with L C B
complies with and is responsive to all
requirements and conditions of eligibility and
the bidding of the contract – to be declared the
Lowest Calculated and Responsive Bid
(LCRB)
 A non-discretionary pass/fail criterion shall be used to
“Verify, Validate and Ascertain” all statements and
documents (licenses, certificates, etc.)

 To be accomplished not more than 7 c.d. from

determination of L C B . (Exceptional cases not to exceed 30
97c.d.)
POST-QUALIFICATION
 B AC will notify the Bidder with the Lowest
Calculated Bid that it was determined as such.
 Within 3 c.d. from receipt of Notice, submit the
ffg:
⚫ Latest Income and Business Tax Returns; and,
⚫ Other appropriate Licenses.
 POST-QUALIFICATION

 B AC shall recommend award of contract to the

L O W E S T C A L C U L AT E D A N D R E S P O N S I V E BID
(LCRB) at submitted price or calculated price,
whichever is lower

 In case of approval by H O P E , Notice of Award

should be I M M E D I AT E LY issued by H O P E to the
L C R B . (HOPE has 7 days to decide w/n to issue
NOA)
 AWARD OF CONTRACT
 N OA is subject to the following conditions:

⚫ Submission of valid J VA , within 10 c.d. upon

receipt by bidder that it was determined as the
LC R B ;
⚫ Posting of Performance Security (post within 10
days, including signing);
⚫ Signed Contract.
 Contract award shall be made within the bid validity
period.
 Notice of Award of Contract to be posted at the
PhilGEPS, website and C P within 3 c.d. after
issuance.
 NOTICE TO PROCEED
 The P E shall issue the Notice to Proceed (NTP)
together with a copy of the Contract within 3 c.d.
upon approval.

 Contract effectivity date – indicated in the N TP

w/c shall not be later than 7 c.d. from its issuance.

 Within 15 c.d. from the issuance of NTP, B AC

Secretariat shall post a copy of the NTP and the
Approved Contract in the PhilGEPS .
 For A N N E X C – Allowable Time and Detailed
Flow Process – see excel file
A L T E R N A TIVE
METHODS
 ALTERNATIVE METHODS
• General Rule: Public Bidding as a general
mode
– APP provides sufficient lead time for bidding

• Resort to Alternative Methods allowed -

– Highly exceptional cases
– To promote economy and efficiency
– Justified by conditions specified in IRR
– G P P B approval as required under E O 423, s.2005 (as
amended)
 A LT E R N AT I V E M E T H O D S
OF PROCUREMENT

1) Limited Source Bidding

2) Direct Contracting
3) Shopping
4) Repeat Order
5) Negotiated Procurement :
ALTERNATIVE METHODS
OF PROCUREMENT
5) Negotiated Procurement:
a. Two failed biddings;
b. Emergency cases;
c. Take-over of contracts;
d . AD JACENT AND CONTIGU OU S
e . A G E N C Y - T O - AG E N C Y
f . S C I E N T I F I C S C H O L A R LY O R ARTISTIC WO R K , E X C L U S I V E
T E C H N O L O G Y A N D M E D I A S E RV I C E S ;
g. Highly-technical C O N S U LTA N T S ;
h. Small value procurement;
i. Lease of real property;
j. Defense cooperation agreement;
k . N G O participation;
l. Community participation;
m.United Nations agencies, I N TE R NATI O NA L O RGA N I Z ATI O N S O R
I N TE R NATI O NA L F I N A N C I N G I N STI TU TI O N S
SHOPPING
 THRESHOLD FOR UNFORESEEN CONTINGENCIES
[Sec. 52.1(a)]
 ❖NGAs, GOCCs, GFIs, SUCs and Autonomous
Regional Government– PhP100,000 (old) PhP200,000 (new)
 ❖LGUs :
 Classification Maximum Amount (in Philippine Pesos)
Province City Municipality
 1st Class 100,000 200,000 100,000 200,000 50,000 100,000
 2nd Class 100,000 200,000 100,000 200,000 50,000 100,000
 3rd Class 100,000 200,000 80,000 160,000 50,000 100,000
 4th Class 80,000 160,000 60,000 120,000 50,000 100,000
 5th Class 60,000 120,000 50,000 100,000 50,000 100,000
 6th Class 50,000 100,000 50,000 100,000 50,000 100,000
 In the case of Barangays, the maximum amount is PhP50,000
SHOPPING
 T H R E S H O L D F O R Sec. 52.1 (b):
 ❖NGAs, G O C C s , G F I s , S U C s and Autonomous Regional
Government– PhP500,000 (old) PhP1,000,000 (new)
 ❖LGUs :
 Classification Maximum Amount (in Philippine Pesos)
Province City Municipality
 1st Class 500,000 1.000,000 500,000 1.000,000 100,000 200,000
 2nd Class 500,000 1.000,000 500,000 1.000,000 100,000 200,000
 3rd Class 500,000 1.000,000 400,000 800,000 100,000 200,000
 4th Class 400,000 800,000 300,000 600,000 50,000 100,000
 5th Class 300,000 600,000 200,000 400,000 50,000 100,000
 6th Class 200,000 400,000 100,000 200,000 50,000 100,000
 In the case of Barangays, the maximum amount is PhP50,000
N E G O T I A T E D : S M A L L V A L U E P R O C U R E M E N T ( SVP )

 T H R E S H O L D F O R SVP:
 ❖NGAs, G O C C s , G F I s , S U C s and Autonomous Regional
Government– PhP500,000 (old) PhP1,000,000 (new)
 ❖LGUs :
 Classification Maximum Amount (in Philippine Pesos)
Province City Municipality
 1st Class 500,000 1.000,000 500,000 1.000,000 100,000 200,000
 2nd Class 500,000 1.000,000 500,000 1.000,000 100,000 200,000
 3rd Class 500,000 1.000,000 400,000 800,000 100,000 200,000
 4th Class 400,000 800,000 300,000 600,000 50,000 100,000
 5th Class 300,000 600,000 200,000 400,000 50,000 100,000
 6th Class 200,000 400,000 100,000 200,000 50,000 100,000
 In the case of Barangays, the maximum amount is PhP50,000
PHILIPPINE
BIDDING
DOCUMENTS
P R O C U R E M E NT
OF
GOODS
PHILIPPINE BIDDING DOCUMENTS

⚫ Importance of the Bidding Documents:

⚫ Guide – Defines the objective, scope and outputs of the
project
⚫ Eligibility of bidders
⚫ Defines K duration, quantity and delivery
⚫ Technical Requirements
⚫ Contractual Basis
PHILIPPINE BIDDING DOCUMENTS
● Prescribed Format:
5th Edition – consistent with 2016 Revised IRR

● Usage:
All procuring entities are mandated to use the 5th
edition

● Availability Period:
From the 1st Day of the Advertisement/Posting of the
Invitation to Bid until the Deadline for the
Submission and Receipt of Bids
PHILIPPINE BIDDING DOCUMENTS

● Fee:
Cost for the sale of bidding documents shall be in a
reasonable amount to recover the cost of its preparation
and development. (GPPB Resolution 04-2012)

● Posting Requirements:
— Copy of the entire Bid Docs shall be posted at the
PhilGEPS website and website of the procuring entity
concerned.

— Posted from the 1st Day of the Advertisement/

Posting of the Invitation to Bid until the Deadline for the
Submission and Receipt of Bids.

— Prospective bidders may download a copy for free.

G P P B R E S O . 04-2012 ( DATED 24 F E B 2012) G U I D E L I N E S
ON THE SALE OF BIDDING DOCUMENTS

ABC Maximum Cost of

Bidding Documents
(in Philippine Peso)
PhP500,000 and below 500
More than PhP500,000 to PhP1 1,000
Million
More than PhP1 Million to PhP5 5,000
Million
More than PhP5 Million to PhP10 10,000
Million
More than PhP10 Million to PhP50 25,000
Million
More than PhP50 Million to PhP500 50,000
Million
More than PhP500 Million 75,000
PHILIPPINE BIDDING DOCUMENTS

● Fee:
Cost for the sale of bidding documents shall be in a
reasonable amount to recover the cost of its preparation
and development. (GPPB Resolution 04-2012)

● Posting Requirements:
— Copy of the entire Bid Docs shall be posted at the
PhilGEPS website and website of the procuring entity
concerned.

— Posted from the 1st Day of the Advertisement/

Posting of the Invitation to Bid until the Deadline for the
Submission and Receipt of Bids.

— Prospective bidders may download a copy for free.

PHILIPPINE BIDDING DOCUMENTS

GENERAL CONDITIONS
⚫ PBDs to be used by all NGAs, GFIs, SUCs, GOCCs and LGUs for
fully domestically-funded projects.

⚫ PBDs to be used in ADB, JICA and WB Projects in case of

National Competitive Bidding.

⚫ The provisions of Section II - Instruction to Bidders (ITB) and

Section IV - General Conditions of Contract (GCC) shall not be
changed.

⚫ Any amendments/modifications in the ITB / GCC shall be made

in the BDS/SCC, respectively.
PHILIPPINE BIDDING DOCUMENTS

GENERAL CONDITIONS
⚫ Bid Forms in the Bid Docs should be completed by the
Bidder
⚫ Specific details (of the project) should be made available
in the Invitation to Bid, B D S and S C C .
⚫ Footnotes or Notes in Italics appearing in B D S not part
of the F I NA L Bidding Document.
⚫ Procuring entities should carefully review the Bid
evaluation process in the ITB, only necessary provisions
should be retained in the B D S .
PHILIPPINE BIDDING DOCUMENTS
GOODS
Summary of Contents of BDs for Goods:

Section I - Invitation to Bid (IB)

Section II - Instructions to Bidders (ITB)
Section III - Bid Data Sheet (BDS)
Section IV - General Conditions of Contract (GCC)
Section V - Special Conditions of Contract (SCC)
Section VI - Schedule of Requirements
Section VII - Technical Specifications
Section VIII - Bidding Forms
Section I X – Foreign Assisted Projects
PHILIPPINE BIDDING DOCUMENTS
INFRA PROJECTS

Summary of Contents of BDs for Infra Projects:

Sec. I - Invitation to Bid (IB)

Sec. II - Instructions to Bidders (ITB)
Sec. III - Bid Data Sheet (BDS)
Sec. IV - General Conditions of Contract (GCC)
Sec. V - Special Conditions of Contract (SCC)
Sec. VI - Specifications
Sec. VII - Drawings
Sec. VIII - Bill of Quantities (BOQ)
Sec. I X - Bidding Forms
Sec. X - Foreign-Assisted Projects
PHILIPPINE BIDDING DOCUMENTS
CONSULTING SERVICES
Summary of Contents of BDs for Consulting Services:
Part I
⚫ Section 1– Request for Expression of Interest
⚫ Section 2 - Eligibility Documents
⚫ Section 3– Eligibility Data Sheet
Part II
⚫ Section 1 – Notice of Eligibility and Short Listing
⚫ Section 2 – Instructions to Bidders
⚫ Section 3 – Bid Data Sheet
⚫ Section 4 – General Conditions of Contract
⚫ Section 5 – Special Conditions of Contract
⚫ Section 6 – Terms of Reference
⚫ Section 7 – Bidding Forms
⚫ Section 8 – Appendices