Standard Bidding Procedures For Goods and Infrastructure Projects

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STANDARD BIDDING PROCEDURES

FOR GOODS AND INFRASTRUCTURE


PROJECTS

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
I General Principles and Considerations

II Competitive Bidding Procedure and Requirements

III

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and
distribution without the author’s approval is prohibited.
GENERAL PRINCIPLES AND
CONSIDERATIONS

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
GENERAL MODE OF PROCUREMENT

Default Method It is a method of procurement


which is open to participation by
any interested party and which
Competitive Bidding consists of the following
(Sec. 10, IRR of R.A. No. 9184) processes:
1) advertisement,
2) pre-bid conference,
3) eligibility screening of
Exception prospective bidders,
4) receipt and opening of bids,
Alternative Methods of 5) evaluation of bids,
Procurement 6) post-qualification, and
7) award of contract.
(Sec. 48 to 54, IRR of R.A. No. 9184) (Sec. 5(h), IRR of RA 9184)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
COMPETITIVE BIDDING

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without the author’s approval is prohibited.
PROCUREMENT STANDARD

No procurement shall be undertaken unless it is in


accordance with the approved
Annual Procurement Plan (APP) of the PE

The method of procurement to be used shall


be as indicated in the approved APP

Mode of
Procurement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
WHAT ARE GOODS?

Supplies and Materials Lease of Office Space Office Equipment

Repairs Security and Janitorial Furnitures and


Services Fixtures
INFRASTRUCTURE PROJECTS
Include the construction, improvement,
rehabilitation, demolition, repair,
restoration or maintenance of roads and
bridges, railways, airports, seaports,
communication facilities, civil works components
of information technology projects, irrigation,
flood control and drainage, water supply,
sanitation, sewerage and solid waste
management systems, shore protection,
energy/power and electrification facilities,
national buildings, school buildings, hospital
buildings, and other related construction projects
of the government.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
REQUIREMENTS PRIOR TO COMMENCEMENT OF
PROCUREMENT
🙵 Scope of Work/
🙵 Plans/Drawings 🙵 Bill of Quantities
Technical Specifications
The DPWH Standard Graphic List of the specific
Specifications for Public representation of items of the Work
Works and Highways (“Blue the Works required and their
Book”) shall be the main corresponding unit
basis for the standards and prices, lump sums,
codes to be met by the goods and/or provisional
and materials to be furnished sums
and work performed or tested
for the Contract.

These shall likewise form part of the Bidding Documents

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
REQUIREMENTS PRIOR TO COMMENCEMENT OF
PROCUREMENT
🙵 Bill of Quantities

🙵 Plans/Drawings
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
REQUIREMENTS PRIOR TO COMMENCEMENT OF
PROCUREMENT
Detailed
Engineering:
❑ Detailed engineering investigations, surveys and designs
❑ In case of projects with pending acquisition of right-of-way site
or location, the procurement process may commence, but no
award of contract shall be made until:
🙵 an authority or permit to enter is issued by the property
owner; or
🙵 a notarized deed of sale or deed of donation is executed in
favor of the government; or
🙵 a writ of possession is issued by a court of competent
jurisdiction
Exemption: In case of Design and Build Scheme
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without the author’s approval is prohibited.
WHO ARE ELIGIBLE BIDDERS

Duly licensed Filipino citizens/sole proprietorships

Partnerships with at least 60% Filipino interest or


ownership
Corporations with at least 60% Filipino interest or
ownership
Cooperatives duly organized under the laws of the
Philippines
Joint Ventures (JVs) with at least 60% Filipino
interest or ownership
Foreign bidders when provided under any Treaty
or International or Executive Agreement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
FOREIGN EQUITY REQUIREMENT IN
GOVERNMENT PROCUREMENT
Executive Order No. 65, s. 2018
✔ Promulgated the 11th Foreign Investment Negative List (FINL) which provides for limitation
on investment by foreign entities in specific business and/or industry
✔ Intended to ease restrictions on foreign participation in certain investment areas or
activities by increasing the threshold of how much foreign entities may own from 25% to
40%

Amendment on Foreign Equity Requirement


✔ Partnerships duly organized under the laws of the Philippines and which at least 60%
[from 75%] of the interest belongs to citizens of the Philippines
✔ Corporations duly organized under the laws of the Philippines, and of which at least 60% of
the outstanding capital stock belongs to citizens of the Philippines
✔ For persons/entities forming themselves into a joint venture, Filipino ownership or interest of
the joint venture concerned shall be at least 60%
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
WHO ARE ELIGIBLE BIDDERS
Infra

JVs with less than 60% Filipino GOCCs may be eligible to


ownership or interest may be allowed participate only if they can
to participate for Infra Projects if: establish that:
❑ The structures to be built require the
❑ They are legally and
application of techniques and/or
financially autonomous;
technologies which are not adequately
❑ They operate under
possessed by a person/entity meeting
commercial law; and
the 60% Filipino ownership requirement
❑ They are not attached
agencies of the PE
Provided further that Filipino ownership
or interest shall not be less than 25%

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INVITATION TO OBSERVERS

Represent the public, the taxpayers who are


interested in seeing to it that procurement laws are
observed and irregularities are averted

At least three (3) Must be invited in writing at least five (5) calendar
Observers days (CD) before the date of the following
procurement stage/activity:
COA
Preliminary Bid
Duly recognized Pre-bid Conference
Examination
private sector
group
Bid Evaluation Post-Qualification
NGO

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COMPETITIVE BIDDING
PROCEDURE AND
REQUIREMENTS

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STANDARD BIDDING PROCEDURE FOR
INFRASTRUCTURE PROJECTS

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without the author’s approval is prohibited.
USE OF DIGITAL SIGNATURE

Allows use of Digital Signature


(GPPB Resolution No. 16-2019
dated 17 July 2019) or similar
means in all procurement related
documents (GPPB Resolution No.
09-2020 dated 7 May 2020)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR TECHNOLOGY
(GPPB Resolution No. 24-2018)

Procurement Activities that may be conducted electronically

All other procurement


Pre-Procurement Conference Bid Opening
activities/ meetings

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction
19 and distribution
without the author’s approval is prohibited.
USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR TECHNOLOGY
(GPPB Resolution No. 24-2018)

QUORUM
A member of the BAC (including
Chairperson and
Vice-Chairperson) may be
present either in person or
face-to-face through
videoconferencing, webcasting
or similar technology for PEs
with such technology

Decisions made of at least a majority of the BAC members present, using such
technology shall be considered valid and binding
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction
20 and distribution
without the author’s approval is prohibited.
PRE-PROCUREMENT CONFERENCE

Purpose: To determine the readiness of the procurement

🙵 Description and scope of the contract 🙵 Completion of the detailed engineering


🙵 Approved Budget for the Contract according to the prescribed standards in
(ABC) the case of Infrastructure Projects
🙵 Contract duration 🙵 Availability of right-of-way site or location,
🙵 Whether project is in accordance with and the possession of affected properties
the PPMP and APP 🙵 Review and adopt the procurement
🙵 Availability of appropriations schedule
🙵 Completeness and correctness of the 🙵 Reiterate and emphasize the importance
Bidding Documents of confidentiality

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
PRE-PROCUREMENT CONFERENCE

Timeline Condition 👪 Participants


❑ Conducted ❑ Mandatory for ❑ Bids and Awards
prior to projects with Committee (BAC)
advertisement Approved Budget ❑ BAC Secretariat
or posting of for the Contract ❑ Technical Working
the Invitation to (ABC) above Group (TWG)
Bid (IB) PhP2,000,000.00 ❑ Consultants for the
for Goods and subject procurement
above project, if any
PhP5,000,000.00 ❑ End-user unit
for Infra Projects ❑ Other Officials

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

❑ The prohibition applies to the procurement of goods, and


goods component of Infrastructure Projects and Consulting
Services.

❑ Specifications should be based on relevant characteristics,


functionality and performance requirements, except for
items or parts that are compatible with the existing fleet or
equipment of the same make and brand, and to maintain the
performance, functionality and useful life of the equipment.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Purpose Guidelines
To signal the start Bid opportunity, including complete Bidding Documents
of the bidding shall be posted continuously for seven (7) CDs, in the
process and following:
invite interested ✔ Philippine Government Electronic Procurement System
(PhilGEPS);
bidders to
✔ Website of the PE, if any;
participate in the
✔ Website of IFI, if applicable; and
procurement
✔ At any conspicuous place in the premises of the PE.
activity

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SUNSET PROVISION ON ADVERTISEMENT IN
NEWSPAPER
Advertisement of bid opportunities in a newspaper
shall no longer be required two (2) years after the
effectivity of the 2016 Revised IRR of RA No. 9184 or
from October 28, 2018 onwards (GPPB Resolution
No. 22-2018)
However:

PEs that cannot post its opportunities in the PhilGEPS for


justifiable reasons shall continue to publish its advertisements in
a newspaper of general nationwide circulation

Posting shall be for a continuous period of 7 calendar days

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
BIDDING DOCUMENTS FEE

❑ PEs may charge fees for the acquisition of Bidding


Documents based on the following rates:
APPROVED BUDGET FOR THE MAXIMUM COST OF BIDDING
CONTRACT DOCUMENTS IN PHP
500, 000 and below 500.00 May be refunded
More than 500, 000 up to 1 Million 1,000.00 based on the
grounds provided
More than 1 Million up to 5 Million 5,000.00
for under Section
More than 5 Million up to 10 Million 10,000.00 41 (Reservation
More than 10 Million up to 50 Million 25,000.00 Clause)
More than 50 Million to 500 Million 50,000.00
More than 500 Million 75,000.00

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
PRE-BID CONFERENCE
Purpose
❑ To discuss, clarify and explain, among other things,
the eligibility requirements and the technical and
financial components of the contract to be bid
including questions and clarifications raised by the
prospective bidders before and during the Pre-Bid
Conference

❑ It is open to prospective bidders, but attendance shall


not be mandatory

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
PRE-BID CONFERENCE

Timeline Condition
❑ Held at least 12 CDs before deadline for bid
submission but not earlier than 7 CDs from ❑ Mandatory for
the PhilGEPS posting of the IB and Bidding projects with
Documents ABC of
❑ May be held at least 30 CDs before deadline PhP1,000,000.00
for bid submission, considering the or more
following:
✔ Method, nature, and complexity of contract
✔ International participation is more
advantageous

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
MEASURES TO MAXIMIZE PRE-BID CONFERENCE

GPPB Resolution No. 02-2018


BAC shall have a proactive role during the Pre-Bid Conference by:

Initiating discussions on the requirements of the


project
Discussing the common reasons of bidders’
disqualification and ways to prevent occurrence of
such reasons
Issuance of Supplemental/Bid Bulletin at its own
initiative or in response to requests for clarifications

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
MEASURES TO MAXIMIZE PRE-BID CONFERENCE

GPPB Resolution No. 02-2018


BAC shall have a proactive role during the Pre-Bid Conference by:

Provision of alternative documents to the Eligibility


Requirements
Relaxing the eligibility requirements for foreign
consultants
Separate eligibility requirements for individual
consultants

Less stringent rules in sealing and marking of bids

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SUPPLEMENTAL/BID BULLETINS

Purpose Timeline Conditions


Issued by the BAC, duly signed by ❑ Must be posted in
❑ Must be issued at PhilGEPS and PE’s
BAC Chairperson, to: least 7 CDs
❑ Answer requests for website, and at a
before deadline conspicuous place within
clarification or interpretation for bid
❑ Clarify or modify any the premises of the PE
submission ❑ Bidders who have
provision of Bidding Docs ❑ Meanwhile, submitted bids before
queries should be issuance of
submitted to the Supplemental/Bid Bulletin
BAC 10 CDs must be informed in
before deadline writing and allowed to
for bid modify or withdraw their
submission bids

This learning module was developed by the Government Procurement Policy Board – Technical Support
Office, and any form of reproduction and distribution without the author’s approval is prohibited.
SUBMISSION AND RECEIPT OF BIDS

Bids should be submitted


to the BAC on the date,
time, and either at its Financial Proposal
physical address or
through online
submission specified in
the IB, through the
bidder’s duly authorized
representative in a
Two-Envelope System Bids should be valid for a period not exceeding one hundred twenty
(120) calendar days from the date of the opening of bids

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SEALING AND MARKING OF BIDS
Enclose the ORIGINAL eligibility and
technical documents in one sealed

1
envelope marked “ORIGINAL –
TECHNICAL COMPONENT” and the
ORIGINAL financial component in
another sealed envelope marked
“ORIGINAL – FINANCIAL
COMPONENT”
(Apply the same for copies, if PE quested, but
marking should be “Copy # - Technical/Financial
Component”) 33

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction
33 and distribution
without the author’s approval is prohibited.
SEALING AND MARKING OF BIDS

2
Seal both envelopes in an
outer envelope marked
“ORIGINAL BID”

(Apply the same for copies, if PE requested,


but marking should be “Copy # of Original
Bid”)

34

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction
34 and distribution
without the author’s approval is prohibited.
SEALING AND MARKING OF BIDS

The ORIGINAL

3 Technical/Financial Envelope
and the COPY Envelopes, if
any, shall be CONTAINED in
ONE ENVELOPE

35

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction
35 and distribution
without the author’s approval is prohibited.
SEALING AND MARKING OF BIDS

Unsealed or unmarked REJECTED


bid envelopes

Improperly sealed and ACCEPTED Provided that the bidder or


marked bid envelopes its duly authorized
representative shall
acknowledge such condition
of the bid as submitted.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
ELECTRONIC SUBMISSION AND
RECEIPT OF BIDS
GPPB RESOLUTION NO. 09-2020
The BAC shall decide whether to allow the online or electronic submission and
receipt of bids based on the PE’s procurement needs and capabilities, and shall
be clearly stated in the IB, including bidding documents if allowed

1. Through Any Electronic Means Available


Online or electronic submission and receipt of bids for procurement
modalities where a two-envelope procedure or sealed price quotation is
required shall be allowed.

2. Through the GPPB Online Portal


https://gppbgovph.com/
Currently being developed
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
ELECTRONIC SUBMISSION AND
RECEIPT OF BIDS
GPPB RESOLUTION NO. 09-2020

SUBMISSION THROUGH ANY ELECTRONIC MEANS AVAILABLE

Archive PASSWORD-
Format 🙵 Password PROTECTED
BIDDING
Protection
Compression DOCUMENTS Capable of
Passwords shall be disclosed by the generating an audit
Bidders only during the actual bid opening trail of transactions
to ensure the
Upon receipt of the first and second envelopes, PEs shall generate a Bid security, integrity and
receipt page for the official time of submission which can be saved or authenticity of bid
printed by the bidder submissions

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
CERTIFICATION ON ELECTRONIC SUBMISSION
AND RECEIPT OF BIDS
GPPB RESOLUTION NO. 12-2020

Certification, using GPPB-prescribed format, must:

❑ Be issued by the highest official managing the Information


Technology system of the agency

❑ Describe the electronic system or procedure to be used by


the PE for the electronic submission and receipt of bids, and
compliant with the requirements under GPPB Resolution No.
09-2020

❑ Submitted to the GPPB-TSO through


ITcertification@gppb.gov.ph

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SUBMISSION AND RECEIPT OF BIDS

Date of submission should not be later than the


following periods from the last day of posting of the IB:
ABC (in PhP) PERIOD (in CD)
Goods 45
Infra Project, 50,000,000.00 and Below 50
Infra Project, Above 50,000,000.00 65
For bids submitted
Bids submitted after the deadline shall not be accepted electronically, the PEs shall
generate a Bid receipt page for
the official time of submission
The BAC Secretariat shall notify in writing all bidders which can be saved or printed
whose bids it has received through its by the bidder, upon receipt of
PhilGEPS-registered physical address or official e-mail the first and second envelope
address within 7 CD from the date of the bid opening (GPPB Resolution No. 09-2020)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SUBMISSION AND RECEIPT OF BIDS

MODIFICATION OF BIDS WITHDRAWAL OF BIDS

❑ LETTER of WITHDRAWAL, must be


All Bids may be
modified before received prior to the deadline for
the deadline submission and receipt of bids
❑ Withdrawing bidder is NOT allowed to
submit another Bid.
❑ For bids withdrawn within the interval
For electronic bid submission, Bidders shall send between the deadline and expiration
another Bid equally secured, properly identified, and
of Bid validity, the Bid Security shall
labelled as a “modification” of the one previously
submitted. The time indicated in the latest Bid receipt be FORFEITED
page generated shall be the official time of submission.
(GPPB Resolution No. 09-2020)
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without the author’s approval is prohibited.
OPENING AND PRELIMINARY EXAMINATION OF BIDS
The BAC shall open the bids in public immediately after the deadline for the
submission and receipt of bids

Opening of Opening of Ranking


1st Envelope 2nd Envelope An electronic
Checking presence ▪ Only 2nd Envelopes of copy that cannot
bidders whose 1st Envelope Only bidders be opened or is
or absence of
Corrupted shall
submitted documents was rated “Passed” will be whose both 1st be considered
against a checklist of opened and 2nd non-responsive
required documents ▪ Bids with missing, envelopes were and, thus,
using a incomplete or patently rated “Passed” automatically
non-discretionary insufficient, and/or bid price will be ranked disqualified.
“pass/fail” criterion exceeding the ABC shall be
rated “Failed”
OPENING AND PRELIMINARY EXAMINATION OF BIDS

In case the submitted bids cannot be opened


as scheduled due to justifiable reasons, the
BAC shall take custody of the said bids and
reschedule the opening on the next working
day or at the soonest possible time through
the issuance of a Notice of Postponement OF
to be posted in the PhilGEPS website and the
website of the PE concerned.
4.57 POSTPONEMENT

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OPENING AND EVALUATION OF 1ST ENVELOPE

Opening of 1st Envelope –


Eligibility Docs & Technical Eligibility Requirements Technical Requirements
Requirements

1. Legal Documents 1. Bid Security


2. Technical 2. Project
Documents Requirements
3. Financial 3. Omnibus Sworn
Documents Statement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
ELIGIBILITY REQUIREMENTS

Legal Technical Financial


🙵 PhilGEPS 🙵 Statement of all ongoing 🙵 Net Financial
Class “A”

Certificate of contracts Contracting


Registration 🙵 Statement of Single Largest Capacity (NFCC)
and Completed Contract (SLCC) or Committed Line
Membership 🙵 Philippine Contractors of Credit (CLC),
Accreditation Board (PCAB) for Goods
License (For Joint Venture) 🙵 NFCC, for Infra
for Infra Projects Projects

🙵 Goods – JVA or notarized statement from the partners that they will
Class “B” enter into JV if awarded the contract
🙵 Infra - In case of JV, JV Agreement entered into by the parties
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ELIGIBILITY REQUIREMENTS (CLASS “A”)

PhilGEPS Certificate of Registration and Membership

All bidders shall upload and maintain in PhilGEPS a current


and updated file of the following Class “A” eligibility
documents under Sections 23.1(a) and 24.1(a):
1. Registration Certificate;
2. Mayor’s/Business Permit or its Equivalent Document;
3. Tax Clearance;
4. PCAB license and registration; and
5. Audited Financial Statements (AFS)

Mandatory submission of PhilGEPS Certificate of Registration and Membership under Platinum category
for Competitive Bidding, Limited Source Bidding and Two-Failed Bidding has been suspended, thus,
bidders can submit the individual eligibility documents. However, said Certificate shall be required to be
submitted during post-qualification (GPPB Circular No. 07-2017)
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
ELIGIBILITY REQUIREMENTS (CLASS “A”)

PhilGEPS Certificate of Registration and Membership

For foreign bidders participating in the procurement by a Philippine


Foreign Service Office or Post, they shall submit their eligibility
documents under Section 23.1, 2016 IRR of R.A. No. 9184.
Provided, that the winning bidder shall register with the PhilGEPS
in accordance with Sec. 37.1.4 of the 2016 IRR of R.A. No. 9184.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ Recently expired Mayor’s/Business permit shall


be accepted together with the official receipt as
proof that the bidder has applied for renewal
within the period prescribed by the concerned
LGU. MAYOR’S PERMIT
❑ However, the renewed permit shall be
submitted as a post-qualification requirement
in accordance with Sec. 34.2 of the 2016 IRR of
R.A. No. 9184

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ 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 R.A. No.
9184. TAX CLEARANCE
❑ Submission of Provisionary Tax Clearance issued by
the BIR for bidding purposes is not acceptable form
of Tax Clearance. (GPPB Resolution No. 01-2014)

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without the author’s approval is prohibited.
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

STATEMENT OF ALL ONGOING GOVERNMENT AND


PRIVATE CONTRACTS
❑ Statement of the prospective bidder of all ongoing
government and private contracts, including
contracts awarded but not yet started, if any, whether
similar or not similar in nature and complexity to the
contract to be bid. (Sec. 23.1(a)(iv), IRR of R.A. No.
9184)

❑ The statement shall include all information required in


the Philippine Bidding Documents prescribed by
GPPB

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without the author’s approval is prohibited.
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

Completion of Single Largest Completed Contract (SLCC)


for Goods and Services
General Rule Exceptions Then require the ff.:

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

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without the author’s approval is prohibited.
TECHNICAL ELIGIBILITY REQUIREMENT

Single Largest Completed Contract (SLCC)


EXPENDABLE GOODS NON-EXPENDABLE GOODS
ABC = P1,000,000.00 ABC = P1,000,000.00
GR: 25% of the ABC GR: 50% of the ABC

THUS: Previous contract should be at least THUS: Previous contract should be at least
P250,000.00 (required percentage) P500,000.00 (required percentage)

EXCEPTION: The aggregate amount of at EXCEPTION: The aggregate amount of at least 2


least 2 similar contracts is at least equivalent similar contracts is at least equivalent to required
to the required percentage; and Largest of the percentage; and Largest of the similar contracts
similar contracts amounts to at least 50% of amounts to at least 50% of required percentage.
required percentage. nd
2 Envelope – Financial
THUS: 1st contract = P300,000.00
Component
THUS: 1st contract = P100,000.00 2nd contract = P400,000.00
2nd contract = P200,000.00

52
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

SINGLE LARGEST COMPLETED CONTRACTS (SLCC) FOR


INFRA PROJECTS
❑ The SLCC completed should be similar to the contract to be bid, or
has the same major categories of work

❑ The SLCC’s value should be at least 50% of the ABC to be bid upon
adjustment to current prices using the PSA consumer price indices

❑ Contractors under Small A and Small B categories without similar


experience on the contract may participate if the cost of the contract
to be bid is not more than the Allowable Range of Contract Cost
(ARCC) of their registration

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without the author’s approval is prohibited.
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ A valid PCAB License or Special PCAB


License for JV, and Registration for the type
and cost of the contract to be bid, should be
valid at the time of the deadline for the PCAB LICENSE
submission and opening of bids.

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without the author’s approval is prohibited.
NON-ACCEPTABILITY OF TEMPORARY PCAB LICENSE

GPPB Resolution No. 10-2019

PCAB License ✋Temporary PCAB License

✔ License issued by the Philippine ✔ Refers to the document issued by


Contractors Accreditation Board PCAB to a contractor who has filed for
allowing an entity to engage in renewal of PCAB License before the
business as a contractor 30th day of June but have not yet been
✔ Turn-around time for its issuance is processed due to high volume of
twenty (20) calendar days applicants

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without the author’s approval is prohibited.
NON-ACCEPTABILITY OF TEMPORARY PCAB LICENSE

GPPB Resolution No. 10-2019

Bidders shall submit a valid PCAB License for the following procurement
projects:
Infrastructure Projects, either procured through competitive bidding
or alternative methods of procurement.
Goods or Consulting Services with civil works component, either
procured through competitive bidding or alternative methods of
procurement.

Temporary PCAB License shall not be accepted as an eligibility or


documentary requirement in lieu of a valid PCAB license

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without the author’s approval is prohibited.
FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

AUDITED FINANCIAL STATEMENT

Audited financial statements, showing, among


others, the bidder’s total and current assets and
liabilities, stamped “received” by the BIR or its
duly accredited and authorized institutions, for
the preceding calendar year which should not be
earlier than two (2) years from the date of bid
submission.

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without the author’s approval is prohibited.
FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

NET FINANCIAL CONTRACTING CAPACITY (NFCC)

❑ The NFCC value should be at least equal to the ABC to be bid

[(Current assets minus current liabilities) (K)] minus


the value of all outstanding or uncompleted portions
NFCC = of the projects under ongoing contracts, including
awarded contracts yet to be started, coinciding with
the contract to be bid.

The constant NFCC’s K factor is set at 15,


regardless of contract duration
– Financial Component
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without the author’s approval is prohibited.
FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

NET FINANCIAL CONTRACTING CAPACITY (NFCC)

❑ The values of the domestic bidder’s current assets and


current liabilities shall be based on the latest AFS submitted
to the BIR.

❑ For purposes of computing the foreign bidder’s NFCC, the


value of the current assets and current liabilities shall be
based on their AFS prepared in accordance with
international financial reporting standards.

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FINANCIAL ELIGIBILITY REQUIREMENT

Committed Line of Credit (CLC)


A bidder may opt to submit a
committed Line of Credit (CLC)
from a universal or commercial
bank, in lieu of its NFCC
computation. (Sec. 23.1 (a) (viii),
2016 IRR of RA 9184)

CLC = at least 10% of ABC


60
ELIGIBILITY REQUIREMENTS (CLASS “B”)

REQUIREMENTS FOR JOINT VENTURES

Joint Submission
🙵 Valid Joint Venture Agreement

To be Submitted by To be Submitted by
All Partners Any of the Partners
🙵 Legal Eligibility 🙵 Technical Eligibility
Documents (or Documents
PhilGEPS Certificates 🙵 Financial Eligibility
of Registration under Documents
Platinum membership
category)

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ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS

Equivalent Must be in ENGLISH


If not, it must have a translation in ENGLISH
Class “A” Documents by any of the following:
❑ relevant foreign government agency;
Issued in the country of the
Foreign Bidder ❑ the foreign government agency
authorized to translate documents, or
❑ a registered translator in the foreign
bidder’s country.

Documents shall be authenticated by the appropriate Philippine foreign service


establishment/post or the equivalent office having jurisdiction over the foreign
bidder’s affairs in the Philippines.

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ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS
NEW PROVISION
For Contracting Parties to
the Apostille Convention,
the documents shall be
authenticated through an
apostille by the
Competent Authority,
except for countries
identified by the Department
of Foreign Affairs (DFA) that
will still require legalization
(red ribbon) by the relevant
Embassy or Consulate.

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without the author’s approval is prohibited.
TECHNICAL REQUIREMENTS

BID SECURITY Form of Bid Security Amount


a) Cash or cashier’s/ manager’s check
Purpose
2% of ABC
b) Bank guarantee/draft or Irrevocable Letter of
To guarantee that the Credit, issued by a universal or commercial bank
successful bidder shall,
c) Surety bond callable upon demand, accompanied
within ten (10) CDs from 5% of ABC
by certification from Insurance Commission
receipt of the notice of
No percentage
award, enter into contract e) Bid Securing Declaration
required
with the PE and furnish
the performance security *For biddings conducted by LGUs, these may be issued by other banks
required certified by the BSP as authorized to issue such financial instrument

❑ Only 1 form of Bid Security is required to be submitted


❑ Bidders have the option to choose their preferred form of bid security
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without the author’s approval is prohibited.
TECHNICAL REQUIREMENTS
BID SECURING DECLARATION
(GPPB Resolution No. 16-2020)

REVISED PROVISION REVISED PENALTIES


A document/undertaking signed ❑ Penalty of
by the bidder committing to pay disqualification for two
the corresponding fine and be (2) years from bidding for
automatically disqualified from any procurement
bidding of any procurement contract with any PE,
contract of ant PE for a period of upon receipt of the BO;
time, upon receipt of the and
Blacklisting Order (BO), in the ❑ Payment of fine to be
event it violated any of the calculated in accordance
conditions stated therein to the rules set

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without the author’s approval is prohibited.
TECHNICAL REQUIREMENTS

PROJECT REQUIREMENTS
Must contain the following:

🙵 Organizational chart for the contract to be bid

🙵 List of contractor’s personnel (e.g., Project Manager, Project


Engineers, Materials Engineers, and Foremen), to be assigned to
the contract to be bid, with their complete qualification and
experience data; and

🙵 List of contractor’s major equipment units, which are owned,


leased, and/or under purchase agreements, supported by proof
of ownership or certification of availability of equipment from the
equipment lessor/vendor for the duration of the project

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without the author’s approval is prohibited.
TECHNICAL REQUIREMENTS

REVISED OMNIBUS SWORN STATEMENT


(GPPB Resolution No. 16-2020)
New Form containing the following:

❖ Non-inclusion in blacklist (*revised*) ❖ Non-payment (directly or indirectly) any


❖ Authenticity of documents commission, amount, fee, or any form of
❖ Verification authority consideration in relation to any
❖ Signatory’s authority procurement project or activity
❖ Disclosure of relations ❖ In case advance payment was made or
❖ Responsibilities of bidders given, failure to perform or deliver any of
❖ Labor laws and standards the obligations and undertakings in the
contract shall be sufficient grounds to
constitute criminal liability (*new*)

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TECHNICAL REQUIREMENTS

REVISED
OMNIBUS
SWORN
STATEMENT
FORM
(GPPB Resolution
No. 16-2020)

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without the author’s approval is prohibited.
ELECTRONIC
SIXTH EDITIONSUBMISSION AND
OF THE PHILIPPINE BIDDING
RECEIPT OF BIDS
DOCUMENTS
GPPB RESOLUTION NO. 16-2020
The SCANNED Copies of the FIRST ENVELOPE with the
Required Forms shall be considered as compliant with the
requirements of bid submission,

✔ subject to the submission of the original copies of the


following during post-qualification:

1. Bid Security or Bid Securing Declaration


2. Omnibus Sworn Statement
Non-submission of these forms shall be a ground for
post-disqualification, pursuant to Section 30.1 of the 2016
revised IRR of RA No. 9184
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without the author’s approval is prohibited.
ALTERNATIVE DOCUMENTARY REQUIREMENTS
DURING A STATE OF CALAMITY OR RESTRICTIONS
GPPB RESOLUTION NO. 09-2020

PEs shall accept alternate Unnotarized Bid


documentary requirements Securing Declaration
for procurement activities
during a State of Calamity, Expired Business or
or implementation of Mayor's permit with subject to submission of Business or
community quarantine or Official Receipt of renewal Mayor's permit after award of
application contract but before payment;
similar restrictions
declared, which existence
shall be determined and Omnibus Sworn subject to compliance therewith after
validated by the BAC Statement award of contract but before
payment

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without the author’s approval is prohibited.
CONTENTS OF 2ND ENVELOPE

1. Financial Bid Form,


including bid prices and
bill of quantities, as well
as applicable price
schedules
2. In case of Goods,
Certification from the DTI
Opening of 2nd
Envelope – Financial
if claiming preference as
Proposal Domestic Bidder (RA No.
10667)
3. Other documents
required in the bidding
documents
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without the author’s approval is prohibited.
DETAILED EVALUATION OF BIDS
Purpose Method Timeline
To determine the A non-discretionary Should be
Lowest Calculated criterion shall be used, completed
Bid (LCB) , by: which shall include within 7 CD
❑ Establishing consideration of: from the
correct calculated ❑ Completeness of deadline for
prices of bids; bids; and
receipt of
and ❑ Minor arithmetical
proposals
❑ Ranking corrections
calculated total Results shall be
bid prices from contained in the
lowest to highest Abstract of Bids

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without the author’s approval is prohibited.
DETAILED EVALUATION OF BIDS

Unless the Instructions to


Bidders (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 “-” NO CONTACT RULE


means it is offered for free
Prohibition on communication w/ bidders from bid
evaluation until award of contract
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without the author’s approval is prohibited.
BID EVALUATION
Domestic Preference
Domestic Foreign
Bidder Bidder Applies where the lowest bid
has a foreign component
(foreign bid) and the next
15k lowest bid has a domestic
component (domestic bidder)
100k 100k
❑ The lowest foreign bid is
increased by 15%; and
100k 100k ❑ The lowest domestic bidder
matches the lowest bid of the
foreign bidder

74
BID EVALUATION
SAMPLE COMPUTATION Domestic Preference
NEXT LOWEST
LOWEST CALCULATED BID
CALCULATED BID
Foreign Bidder Domestic Bidder
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as
3,051,364.00 3,009,492.00
increased
Award to Domestic Bidder at 2,653,360.00, or
RESULT Award to Foreign Bidder if Domestic Bidder refuses

75
POST-QUALIFICATION

Purpose Method
To determine whether A
the LCB complies with non-discretionary
and is responsive to all pass or fail
requirements and criterion shall be
conditions as specified used to “Verify,
in the Bidding Validate and
Documents, to be Ascertain” all
declared the Lowest statements and
Calculated and documents
Responsive Bid (LCRB) submitted by the
LCB

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without the author’s approval is prohibited.
POST-QUALIFICATION
The BAC shall check:
a) Delay in the partial delivery of
goods amounting to ten
percent (10%) of the contract
price
b) Bidder’s failure to deliver or
perform
c) Unsatisfactory performance

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without the author’s approval is prohibited.
POST-QUALIFICATION

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without the author’s approval is prohibited.
SEC CERTIFICATE OF REGISTRATION FOR
FOREIGN BIDDERS
GPPB Resolution No. 25-2019

Amendment
Section 37.1.4 (a)(iii) of the IRR of RA 9184
Within ten (10) CD from receipt by the winning bidder of the Notice of Award,
the following documents shall be submitted before the contract may be
awarded:
i. xxx
ii. xxx
iii. The SEC Certificate of Registration of the foreign
corporation/consulting firm and/or the authority or license from the
appropriate government agency or professional regulatory body of the
foreign professionals engaging in the practice of regulated professions
and allied professions, where applicable.

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without the author’s approval is prohibited.
AWARD OF CONTRACT

❑ The BAC shall recommend award of contract to Award of contract is subject to the
the Lowest Calculated and Responsive Bid following conditions within 10 CD from
(LCRB) at submitted price or calculated price, issuance of NOA:
whichever is lower. 🙵 If JV, submission of JVA
🙵 In the case of procurement by a
❑ The BAC shall notify all other bidders, in Philippine Foreign Office or Post,
writing, of its recommendation to HoPE of PhilGEPS Registration Number
award of contract to LCRB within 3 CD from the 🙵 If foreign-funded and stated in treaty,
issuance of the resolution recommending international or executive agreement,
award PCAB License
🙵 Posting of Performance Security
🙵 Signing of Contract upon compliance
with all documentary requirements
🙵 If required, approvals by higher
authority
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without the author’s approval is prohibited.
AWARD OF CONTRACT

POSTING OF PERFORMANCE SECURITY Form of Performance Security Amount


a) Cash or
Effects of Failure to Post cashier’s/manager’s check Not less than
Purpose 5% for Goods
issued by Universal of
To guarantee ❑ Ground for Commercial Bank* and not less
than 10% for
performance of disqualification b) Bank draft/guarantee or Infra Project, of
obligation by the ❑ Next-ranked LCB Irrevocable LC issued by the Contract
Universal of Commercial
LCRB in such form shall undertake Price
Bank*
and amount post-qualification
c) Surety bond callable upon
specified in the ❑ Bid security shall be demand certified by the Not less than
Bidding forfeited without Insurance Commission as 30% of the
Documents prejudice to the authorized to issue such Contract Price
imposition of security
sanctions *For biddings conducted by LGUs, these may be
issued by other banks certified by the BSP as
authorized to issue such financial instrument
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without the author’s approval is prohibited.
ALTERNATIVE DOCUMENTARY REQUIREMENTS
DURING A STATE OF CALAMITY OR RESTRICTIONS
REVISED PERFORMANCE SECURING
DECLARATION FORM
(GPPB Resolution No. 16-2020)

Similar to the PSD used in Framework Agreement, such


declaration shall state, among others, that the winning bidder
that it will be automatically disqualified from bidding of any
procurement contract of any procuring entity for a period of
one (1) year for the first offense or two (2) years for the
second offense, upon receipt of the Blacklisting Order, in the
event it violates any of the conditions stated in the contract.
🙵 An unnotarized PSD may be accepted, subject to submission of a
notarized PSD before payment, unless the same is replaced with a
performance security in the prescribed form

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AWARD OF CONTRACT

CONTRACT SIGNING

APPROVING
HIGHER
20 CD
Maximum days from receipt to APPROVE
AUTHORITY or DISAPPROVE the CONTRACT

GOCC’s
CONCERNED
BOARD
30 CD
Maximum days from receipt to APPROVE
or DISAPPROVE the CONTRACT

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AWARD OF CONTRACT

ISSUANCE OF NOTICE TO PROCEED POSTING REQUIREMENT

TIMEFRAME: The PE shall issue the NOA within 3 CD from issuance, in:
Notice to Proceed (NTP) together with a copy
or copies of the approved contract to the
successful bidder within 7 CD from the date
of approval of the contract by the appropriate PhilGEPS PE’s Website Conspicuous Place
government approving authority.
NTP and the approved contract within 15 CD
from the issuance of the NTP, in:
All notices called for by the terms of the contract
shall be effective only at the time of receipt thereof
by the successful bidder.

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AWARD OF CONTRACT

POSTING OF WARRANTY SECURITY Type of Structural Defects Warranty


and Failures Period
Purpose Permanent
Structures(Types 4 and 5; 15 years
To guarantee that the
Ex. steel, iron, concrete)
contractor shall perform his
Semi-Permanent structures
responsibilities and shall (Types 1,2 and 3; Ex. roads,
answer for an liability concrete river control, 5 years
arising due to: drainage, irrigation lined
❑ improper construction canals)
❑ use of inferior Other structures (Ex.
quality/standard wooden bridges, spring 2 years
❑ any violation of the contract developments)
plans and specifications

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AWARD OF CONTRACT

POSTING OF WARRANTY SECURITY


Form of Warranty Security Amount
a) Cash or cashier’s/manager’s check
Not less than 5% of
issued by Universal of Commercial
the Contract Price
Bank*
b) Bank draft/guarantee or Irrevocable LC
Not less than 10% of
issued by Universal of Commercial
the Contract Price
Bank*
c) Surety bond callable upon demand
Not less than 30% of
certified by the Insurance Commission
the Contract Price
as authorized to issue such security
*For biddings conducted by LGUs, these may be issued by other banks certified by
the BSP as authorized to issue such financial instrument
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AWARD OF CONTRACT

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without the author’s approval is prohibited.
FAILURE OF BIDDING

Declared by the BAC when: Effects


No bids are received; 1. Mandatory review shall be
conducted by BAC
Bids were received but no 2. Based on findings, BAC
one was eligible; shall:
• Revise terms, conditions,
All bids failed to post qualify; or specifications
• Adjust ABC, subject to
Refusal of the post-qualified required approvals
bidder to accept award 3. Re-bidding
without justifiable cause 4. Re-advertisement

SECTION 35
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without the author’s approval is prohibited.
CANCELLATION/TERMINATION OF
PROCUREMENT ACTIVITIES
GPPB RESOLUTION NO. 09-2020

Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184, the BAC,
upon consultation with the end-user unit, shall be allowed to cancel or terminate the
conduct of procurement activities for any justifiable reason, such as but not limited to:

1 the physical and economic conditions have 3 the source of funds for the project has
significantly changed so as to render the been withheld or reduced through no fault
project no longer economically, financially, or of the PE; or
technically feasible, as determined by the
end-user unit; brought about by the declaration of a State
4
of Calamity, or implementation of
2 the project is no longer necessary as community quarantine or similar
determined by the end-user unit; restrictions.
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RESERVATION CLAUSE

HoPE reserves the right to: Grounds


❑ Prima facie evidence of collusion
Reject any and all bids
❑ BAC is found to have failed in following the
prescribed bidding procedures
Declare a failure of ❑ For justifiable reasons, the award of contract
bidding; or will not redound to the benefit of the
Government:
Not award the contract 🙵 Physical and economic conditions have
significantly changed;
🙵 Project is no longer necessary
🙵 Source of funds for the project has been
withdrawn/reduced.

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without the author’s approval is prohibited.
RECOMMENDED POSSIBLE PERIOD TO COMPLETE
THE PROCUREMENT ACTIVITY FOR GOODS

EARLIEST PERIOD MAXIMUM PERIOD

26 CDs 136 CDs


.

Excluding Approval of Higher Authority, if applicable


RECOMMENDED POSSIBLE PERIOD TO COMPLETE
THE PROCUREMENT ACTIVITY FOR INFRA PROJECTS

EARLIEST PERIOD MAXIMUM PERIOD

141 or
26 CDs
156 CDs .

Excluding Approval of Higher Authority, if applicable

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without the author’s approval is prohibited.
Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph

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