Salient Provision and Latest Updates On The 2016 Revised IRR - 042019

SALIENT PROVISIONS AND
LATEST UPDATES ON THE 2016

REVISED IMPLEMENTING RULES
AND REGULATIONS (IRR)
OF REPUBLIC ACT (RA) NO.
9184
1
GENERAL OVERVIEW OF RA
9184
AND ITS REVISED IRR
2
PROBLEM AREAS
AND
REFORM MEASURES
PROBLEMS REFORMS
• Confusion caused by • Enactment of the Government
fragmented legal system
Procurement Reform Act
(GPRA)
• Inconsistent policies, rules, • Creation of the Government
and regulations due to lack
Procurement Policy Board
of standards
(GPPB)
• Lack of transparency • Use of PhilGEPS
(Philippine Government
Electronic Procurement
System)
• Lack of check and balance • Participation of civil
society
3
PROBLEM AREAS
AND
REFORM MEASURES
PROBLEMS REFORMS
• Unresolved procurement • Clearly defined protest
cases/controversies mechanisms in place
• Non-compliance with the • Penal, civil, and
requirements of law
administrative sanctions
available
4
ENACTMENT OF GPRA
Implementing Executive Orders

Administrative Memorandum
Rules and
Issuances Regulations
Circulars
over 100 procurement rules & regulations
Government Procurement Reform Act

10 January 2003
}
Implementing Rules and Regulations (IRR) Part A

8 October2003
Revised IRR of 2009

2 September 2009
Revised IRR of 2016

28 October 2016
5
PROCUREMENT POLICY
DOCUMENTS
Implementing
Circulars and
Rules and
Issuances
Regulations
Philippine Bidding Opinions

RA 9184 Documents
Government
Procurement
Manual
Local Government
Procurement
Manual
6
GOVERNMENT PROCUREMENT POLICY
BOARD (GPPB)
▪ Composed of the following:
➢ Chairman: DBM Secretary
➢ Alternate Chairman: Director-
NEDA General
➢ 12 Regular Members – Secretaries of
DPWH, DTI, DOH, DND, DepEd,
DOF, DILG, DOST, DOTr, DOE & DICT
(Per RA or their
10844), duly authorized
representatives; and Private Sector
Representative
➢ Invited Persons (audit, anti-
corruption
Resource agencies)
7
GPPB FUNCTIONS
Capacity
Policy-Making Development Monitoring
• Amend implementing • Establish a • Ensure the proper

rules & regulations of implementation by
procurement law sustainable
PEs of the Act, this
(quasi-legislative training IRR and all other
function) program relevant rules and
• Prepare generic
procurement manual
regulations on public
and standard bidding procurement
forms • Review
effectiveness
of procurement law
• Protect national interest in all matters affecting public procurement,

having due regard to the country’s regional and international obligations
8
GOVERNING PRINCIPLES
Transparency Competition Streamlined System of Public

Process Accountability Monitoring
• Wider • Equal
dissemination opportunity to • Uniformly • Answerable • Awareness
of bid all eligible applicable to and Vigilance
opportunities bidders all
government
agencies
• Effective and
efficient
method
9
SALIENT PROVISIONS AND LATEST
UPDATES ON THE 2016 REVISED
OF
IRRRA
9184
12
2016 REVISED IRR OF RA 9184
Issue/s Revision Impact
Varying Enumerated activities that are not Clarification14on
interpretation considered as the
s on what are procurement undertakings under RA applicability of
covered by 9184 and its IRR: RA 9184 and
RA 9184 its IRR
1. Direct financial or material
assistance to beneficiaries
2. Participation to scholarships,
trainings, continuing education etc.
3. Lease of gov’t property for
private use
4. Job order workers
5. Joint Venture Agreements
between Private Entities and
GOCCs or LGUs
6. Disposal of property and
assets
(Sec. 4.5)
Section 4.5(a) of the 2016 Revised IRR of RA

9184 contemplates financial or material assistance
given directly to individual recipients or beneficiaries to
address their immediate medical, funeral,
transportation and other allied needs and concerns,
which do not involve actual procurement of goods and
services by government agencies.
Accordingly, if the direct financial or material
assistance takes the form of goods, supplies or items
that are to be procured (e.g., relief goods), the same
do not fall within the coverage of the cited provision,
but is subject to procurement rules and regulations
embodied in RA 9184 and its IRR.
15
Lack of Allows designation of an officer of Increases the16
members to the next lower rank, in case pool from

constitute of unavailability of 5th ranking which HOPE
BAC permanent official (except for BAC select its BAC
Chairperson) (Sec. 11.2.2) members
In case of procurement outsourcing,

a representative from the Procuring
Entity may be designated as a
provisional member
The Chairperson and Vice-chairperson

shall be designated by the local
chief executive (Sec.11.2.2,
11.2.3(a), 11.2.3(b)(iii))

17
Lack of full- Allows designation of an officer of Fast-track
time BAC the lower rank, in case of procurement
Sec unavailability of 5th ranking permanent
members to official
support the
BAC in every In case of ad hoc BAC Secretariat, the
procurement HOPE shall assign full-time
activity support staff in its BAC Secretariat
(Sec. 14.2)

18
Role of TWG Duties of TWG: Avoids
pinpointing of
1. Review of the Technical responsibilities
Specifications, Scope of Work, and
Terms of Reference;
2. Review of Bidding Documents;
3. Shortlisting of Consultants;
4. Eligibility Screening;
5. Evaluation of Bids;
6. Post-Qualification; and
7. Resolution of Request for
Reconsideration (Sec. 12.1)

19
Lack of The HoPE shall ensure that the Procurement
training of BAC, its Secretariat and TWG Professionali-
HOPE, BAC, members, including other relevant zation
Secretariat procurement personnel are sent to
and TWG attend capacity development
program.
Within six (6) months upon

designation, the BAC, its
Secretariat and TWG members
should have satisfactorily completed
such training or program
conducted, authorized or
accredited by the GPPB through
its Technical Support Office.

20
Low-turn out a. Identify stages of Increase
of procurement when observers are observers’
procurement invited; participation
observers
b. Increase the period of notice
from 3 to 5 days
c. Allow access or provide copy of
bidding documents
d. If no observer report within 7 days
from activity, there is a
presumption that the BAC followed
the correct procedure (Sec. 13)

21
Poor a. Bid documents shall reflect Quality of
specifications the necessary specifications Goods for the
required to meet the needs of the lowest prices
PE
b. For mixed procurement, PE shall

specify all relevant
requirements for each
procurement type (Sec. 17.2)
Non- Provide instances when bid doc Fairness in
Refundable fees may be refunded to the procurement
Fee bidder, i.e. declaration of failure of
For bid bidding under Section 41 (Sec. 17.5)
docs

22
Difficulty in Prohibition on brand names likewise Ensure
preparing apply to the goods component of compatibility,
technical Infrastructure Projects and interoperability
specifications Consulting Services. (Sec. 18) , performance,
functionality
Reference to and useful life
Brand However, PEs may indicate of the
Names brand names for items or parts equipment.
that are compatible with the
existing fleet or equipment of the
same make and brand and
will maintain the performance,
functionality and useful life of the
equipment.
Poor Quality Requirement on detailed Quality of Goods
23
of Works engineering is emphasized. (Sec. for the lowest
17.6) prices
Newspaper a. Increase thresholds for Reduce
advertisement advertisement requirement government cost
for newspaper
b. 2 years sunset clause on advertisements
advertisement requirement (Sec.
21.2.1) GPPB CIRCULAR 08-2018
Low a. Allow conduct of pre-bid Clarifies
participation of via procurement
bidders in pre- video-conferencing, webcasting requirements;
bid Reduce
b. Allow all prospective bidders disqualification;
(even those who did not buy Increase
bid docs) to raise queries (Sec. competition
22)
Disqualificati a. Mandatory registration under Easier 24
on of Platinum Membership (Sec. 8.5.2, eligibility check
Bidders/ 25.2)
Failure of Reduce
Biddings due Per GPPB Circular No. 07-2017 which disqualification
to took effect on 3 September 2017, the of bidders/
documentary mandatory requirement under Sec. failure of
requirements 8.5.2 on the submission of PhilGEPS biddings
Certificate of Registration and Increase
Low turn-out Membership under Platinum competition
of bidders category for Competitive
Bidding, Limited Source Bidding
and Two- Failed Bidding has
been deferred until revoked by the
GPPB.
Disqualificati b. Mayor’s permit: Easier 25
on of - Allows submission of recently eligibility check

Bidders/
expired mayor’s permit with official
Failure of Reduce
Biddings due receipt of application for renewal
disqualification
to of permit of bidders/
documentary - Allows equivalent document failure of
requirements for economic zones (Sec. biddings
23.1(a)(ii), 24.1(a)(ii)) Increase
Low turn-out competition
of bidders
c. For goods
procurement, submission of a
Credit Line, as an alternative
to NFCC (Sec. 23.1(a)(viii))
Disqualificati d. For goods and infrastructure Easier 26
on of projects, fixing the NFCC’s K eligibility check
Bidders/Failu factor at 15, regardless of contract
re of Biddings duration (Sec. 23.4.1.4, 23.4.2.7) Reduce
due to e. For individual consultants disqualification
not
documentary of bidders/
registered as sole proprietors, they can
requirements submit BIR Certificate failure of
of
Registration instead of DTIbiddings
Low turn-out and Mayor’s Permit (Sec. 24.1(a)(ii)) Increase
of bidders f. In consulting services, submission of competition
foreign bidders’ SEC Certificate of
Registration and/or PRC permit is
moved from eligibility to contract
award (Sec. 37.1.4(a)(iv))
Disqualification g. NPM No. 007-2018 - Although the Easier eligibility
27
of registration requirement in the SEC by foreign check
Bidders/Failure firms is only expressly provided in the
procurement of consulting services, it would still
of Biddings apply to foreign suppliers and contractors in the Reduce
due to procurement of goods disqualification
and services, and
documentary infrastructure projects, respectively. of bidders/
requirements Thus, even though 2016 IRR of RA 9184 does not failure of
expressly provide for this requirement, for the biddings
Low turn-out of procurement of goods, foreign bidders are still Increase
bidders required to register with the SEC as mandated by the competition
Corporation Code and jurisprudence. This license
shall be required as a post-qualification requirement
under Section 34.2 of the IRR where the bidder is
mandated to submit “other appropriate licenses and
permits required by law and stated in the Bidding
Documents”.

28
Strict rules on Bid envelopes that are not properly Reduce
marking/ sealed and marked, as required in the disqualification
sealing of bidding documents, shall of bidders
bids be accepted, provided that the
bidder or its duly authorized
representative shall acknowledge
such condition of the bid as
submitted. The BAC shall assume
no responsibility for the
misplacement of the contents of the
improperly sealed or marked bid, or for
its premature opening(Sec. 25.9)

29
Bid Rigging/ a. BAC Secretariat shall notify in Ensure
Simulation of writing all bidders whose bids transparency
bids; it has received through its and accurate
PhilGEPS- registered physical representation
address or official e-mail address of the bid
(Sec. 25.7) submission
b. The BAC shall notify all

other bidders, in writing,
of its recommendation to
HOPE of award of contract to
LCRB/HRRB within 3 calendar
days. (Sec. 37.1.1)
Procurement a. Exempts foreign bidders from Encourage 30
by Foreign the mandatory PhilGEPS participation of
Service Posts Certificate of Registration (Sec. foreign bidders
25.2) in the
procurement
b. Winning bidder shall be required to by FSPs
register (Registration Number only)
prior to contract signing. (Section
37.1.4(a)(ii) GPPB RESOLUTION
NO.
36-2017
Bid and a. Allows the bidder to choose Avoid undue

Performance their preferred form of bid security disqualification
Securities (Sec. 27.2) of bidders who
posted more
b. Clarifies the required amount for than the
Bid Security and required
Performance Security(Secs. 27.2 amount.
Technical Strengthen post-qualification process: Ensures 31
capability of a. For Goods, BAC shall check: technical
suppliers and capability of
1. Delay in the partial delivery of
contractors bidders from
goods amounting to ten percent (10%)
their past or
of the contract price in its ongoing
on-going
contracts;
contracts
2. Bidder’s failure to deliver on
schedule or within any time extension
and such failure amounts to at least
ten percent (10%) of the contract price;
or
3. Unsatisfactory performance of the
supplier’s obligations as per contract
terms and conditions at the time of
inspection (Sec. 34.3(b)(iii))
Technical b. For Infrastructure Projects, BAC Ensures 32
capability of shall check: technical
suppliers and 1. Negative slippage of at least 15% in any capability of
contractors one project or a negative slippage of at bidders from
least 10% in each of 2 or their past or
more contracts; on-going
contracts
2. Failure of the contractor to
commence repair works on ongoing
contracts in accordance with Section
34.3
3. Failure of the contractor to
commence repair works on contracts
with pending certificates of acceptance
in accordance with Sec. 34.3
4. Substandard quality of work or
unsatisfactory performance at the
time of inspection.
Period of a. Re-scheduling of bid opening BAC/HOPE 33is
Action per (due to justifiable reasons, given a
procurement i.e lack of quorum, cancellation standardized
activity of office work due to bad time to
weather): determine the
eligibility and
➢ reschedule on the next working capability of
day or at the soonest bidders
possible time (Sec. 29)
b. Standardize/adjusted
period of
action:
➢ Bid Evaluation for goods and
infra
- 7 calendar days,
regardless of amount of ABC

34
Delay in Specific procurement activities Fastrack
procurement may be held on a Saturday, Sunday, procurement
process due to nonworking day or holiday: provided, activities
declaration of that the BAC, secretariat and TWG
holidays members shall be available on such
date, and the appropriate
supplemental/bid bulletin is
issued and posted pursuant to the
posting requirements embodied in
section 22.5.3 of
this IRR.
(GPPB Resolution No. 21-2017)

Period of Post-qualification: BAC/HOPE 35is
Action per ➢ Within 12 calendar days, or up to 45 given more
procurement calendar days in exceptional cases time to
activity for goods & infrastructure projects, or determine the
up to eligibility and
30 calendar days for capability of
consulting services. bidders
➢ In case of post-disqualification of the
LCB/HRB, the BAC is given a fresh
period to post-qualify the next
LCB/HRB. (Sec. 34.8)
Contract Approval by Higher Authority:
➢ NGAs, SUCs, LGUs, - 20 cd
➢ GOCCs – 30 cd (Sec. 37.3)

36
Rate of Obligation for the warranty shall More
warranty for be covered by either retention money in competitive bid
GOODS an amount equivalent to at least prices
one percent (1%) but not to exceed
five percent (5%) of every Reduce
progress payment, or a special bank transaction
guarantee equivalent to at least one cost results to
percent (1%) but not to exceed five lower bid
percent (5%) of the total contract price prices

Terminatio Once the cumulative amount of PE has the 37
n of liquidated damages reaches ten discretion w/n
contract/ percent (10%) of the amount of the to terminate
Liquidated contract, the Procuring Entity may the contract,
damages rescind or terminate the especially
contract, without prejudice to other when the
Project is near
courses of action and remedies
completion
available under the circumstances.
(Sec. 68)
Procurement Removed Procurement Agent as an Clarified that38
Agent alternative modality. However, PE Procurement
may still outsource their Agent is not a
procurement activities by: method of
procurement.
a) Requesting other GoP agencies
to undertake such procurement
for them
b) Engaging private procurement
agents in accordance with GPPB
Guidelines
c) Recruiting or engaging
consultants to assist them directly
and/or train their staff (Sec. 7.3.3)

39
Difficulty in New Alternative Modality: Efficiency in
procuring the procurement
following: considering
-Media Section 53.6 Scientific, Scholarly that only 1
services;
or Artistic Work, Exclusive supplier/contra
-Scientific,
academic Technology and Media Services. ctor could
references, provide the
works needs of the
-life-saving PE
equipment
-Legal
services
-Artistic
works
-Infra projects
with exclusive
technology
Posting 3-day posting shall be required for the Standardize41
Requirement following modalities: AMP rules
s for
1. Limited Source Bidding;
Alternative
Methods of 2. Shopping under Section 52.1 above
Procurement P50K
3. Two Failed Biddings
4. Small Value Procurement
5. NGO Participation (Sec. 54.2)
Posting of awards for all Alternative

Methods, except for projects with ABC
P50K and below (Sec. 54.3)
PhilGEPS PhilGEPS Registration Number Standardize42
Registration required, as a condition for award, on AMP rules
Requirement the following modalities:
s for 1. Direct Contracting
Alternative
2. Shopping under Sec. 52.1(b)
Methods of
Procurement 3. Take over of contracts (new bidders)
4. Scientific, Scholarly, Artistic Works etc.
5. Highly Technical Consultants
6. Small Value Procurement
7. Lease of Real Property and Venue
For Limited Source Bidding and Two-Failed

Biddings, PhilGEPS Certificate
of Registration is required. (Sec. 54.6)
ANNEX “H” OF THE 2016 REVISED IRR
Different Issuance of Annex “H” of the 2016 Revised Single 43
guidelines for IRR of RA 9184. Consolidated reference on
alternative Guidelines for the following Alternative the
method of Methods of Procurement: procurement
procurement 1. Direct Contracting; procedures
and
2. Repeat Order
Various requirements
interpretation 3. Shopping for the
s of 4. Negotiated Procurement (Two Failed commonly-
stakeholders Biddings; Emergency Cases; Take- resorted
on the Over of Contracts; Alternative
procedures of Adjacent/Contiguous; Agency-to- Modalities
AMPs Agency; Scientific, Scholarly, Artistic
Works etc.; Highly Technical
Consultants; and Lease of
Real Property and Venue)
Issue/s Revision
44
The number a. Shopping 52.1(a) and Emergency Procurement–
of quotation send at least 1 RFQ
that the BAC
has to obtain,
in order to b. Shopping 52.1(b) – send at least 3 RFQs, receive
proceed with at least 3 quotations
the
negotiation
c. Two Failed Biddings, Small Value
Procurement, Lease of Real Property/Venue -
send at least 3 RFQs, receive at least 1 quotation
will suffice
Issue/s Revision
25% 45
25% threshold requirement is removed, provided
threshold that the servicing agency has the mandate and
requirement absorptive capacity to undertake the project
for Agency to
Agency
procurement
Procurement Negotiated Procurement under Section 53.10 on lease
of Public- of real property and venue for public-use cover
owned real both publicly-owned and privately-owned.
property/venu
e for public
use
Thresholds Doubled the thresholds for all PEs, except
for SH & SVP for Barangays (maintained at P50,000)

46
Stringent Prescribed thresholds for the Fastrack
requirements requirements on Income/Business procurement
for Tax Return for SVP and Omnibus activities and
procurement Sworn Statement for Emergency higher
with low ABC Cases and SVP participation
for AMPs from bidders
PHILIPPINE BIDDING DOCUMENTS
• To conform with the 2016 Revised IRR of RA 47
9184, the Philippine Bidding Documents for

goods and services, infrastructure projects and
consulting services have also been updated.
• Through GPPB Resolution No. 24-2016, dated

27 October 2016, the 5th Edition of the PBDs was
issued.
• Additional amendments were on the PBDs
issued GPPB Resolution No. 23-2017
through
GUIDELINES ON PROCUREMENT OF
WETI SERVICE PROVIDERS
GPPB Resolution No. 41-2017 48
– During the effectivity of the contract, or upon its

renewal, the PE may consider the expansion or
reduction of the services provided by the
existing service provider subject to the need of the
PE and the best way by which such need may be
addressed and satisfied
– Resort to competitive bidding, or any of the
applicable alternative methods of procurement in
case there is more than one service
contractor operating within the area
GUIDELINES ON CONTRACT
IMPLEMENTATION FOR INFRASTRUCTURE
PROJECTS
– Progress Payment – PE may require in the Bidding

Documents that statement of work accomplished
or progress billing and the corresponding request
for progress payment may only be submitted upon
actual completion of the infrastructure project or a
specific portion, segment, milestone or phase thereof.
GREEN PUBLIC PROCUREMENT
• GPPB Resolution No. 15-2013, dated 10 May 2013,50
commits the support of GPPB in the

implementation of Sustainable and/or Green
Public Procurement Regime in Government.
• Through GPPB Resolution No. 20-2016, dated

23 September 2016, GPPB espoused that in
the procurement of goods, government agencies
shall be able to incorporate the minimum
energy performance standards for equipment,
products and devices in crafting technical
specifications.
GREEN PUBLIC PROCUREMENT
• GPPB Resolution 21-2016, dated 23 September 51
2016 approves the green specifications for the

first tranche of Common-Use Supplies and
Equipment.
– Toilet Paper - LEDs
– Record Books - Toilet Cleaner
– Multicopy paper - Detergent Powder
– Plastic Trash - Liquid Hand Soap
Bag - Disinfectant Hand
– Plastic Chairs
Spray
What is a Framework
Agreement?
52
FRAMEWORK AGREEMENT
• GPPB Resolution No. 12-2017, dated 10 April 2017,

which took effect on 23 November 2017, provides the
Guidelines on the Use of Framework Agreement
• Pilot tested by the Department of Budget

and Management – Procurement Service
(DBM-PS), Department of Education (DepEd),
Department of Health (DOH) and Department of
National Defense (DND)
• The GPPB has recently approved the use of

Framework Agreement by all agencies
53
GUIDELINES ON FRAMEWORK
AGREEMENT
Definition of Framework Agreement
• It is in the nature of an ‘option contract’ between the PE

and the bidder(s) granting the procuring entity the option
to either place an order for any of the goods and services
identified in the Framework Agreement List or not a buy
at all within a minimum period of one year to a maximum
of three years.
54
AGREEMENT
Instances for Entering Into Framework Agreement
• For necessary and desirable goods that

are repeatedly required by the procuring entity,
but by their nature, use, or characteristic, the quantity
and/or exact time of need cannot be
accurately pre- determined; and
• In case of expendable or non-expendable goods, it is

inadvisable for the procuring entity to carry the same
in stock or commit to purchase a certain quantity
within a given period.
55
AGREEMENT
Scope and Coverage
• All departments, bureaus, offices, and agencies of

the national government, including SUCs, GOCCs,
GFIs and LGUs.
• Expendable or non-expendable goods that

are repeatedly required by the procuring entity in the
regular course of business.
• Services, such as, hotel accommodation, air

travel, including simple and non-complex services,
such as, but not limited to, janitorial, security,
catering, maintenance and repair services.
56
AGREEMENT
General Conditions (Cont)
• Procurement shall be conducted following the procedures

for Competitive Bidding provided in RA 9184 and
its IRR, subject to Section 6 of the proposed Guidelines.
• Prices shall be fixed price per unit or item or identified

service.
58
AGREEMENT
Procurement Planning
• The APP shall indicate the types of units or

items considered for inclusion in the Framework
Agreement List, which shall contain the following:
✓Type and nature of each item;

✓Technical specifications or Scope of Work;
✓Maximum quantity of items or services;
✓Estimated contract price per item or service;
60
AGREEMENT
Procurement Planning (Cont)
• The APP shall indicate the types of units or

items considered for inclusion in the Framework
Agreement List, which shall contain the following:
✓Total ABC with budgetary allotments per

type of
product or service;
✓Expected delivery timeframe after receipt of a
Call- Off; and
✓Other appropriate information as may be
necessary.
61
AGREEMENT
Competitive Bidding
• The Invitation to Bid shall indicate that the

procurement will be subject to a
Agreement arrangement Framework these
pursuant
Guidelines, and shall state to whether the
Framework Agreement is subject to Mini-
Competition or Outright Determination of the
LCRB.
62
AGREEMENT
Competitive Bidding
Outright Determination of LCRB
- For a duration of one (1) year
- Upon determination of the bidder with the LCRB, the

HoPE shall award the option contract (Framework
Agreement), in the form of a Notice to Execute
Framework Agreement, to the bidder with the LCRB.
This notwithstanding, actual purchase of the
procuring entity shall only be made upon issuance of
Call-Off.
64
AGREEMENT
Competitive Bidding
Determination of LCRB After Mini Competition
- for a duration of two (2) to three (3) years
- The BAC shall initially determine compliance of

bidders with the technical and financial aspects of
the project, and recommend the execution
of Framework Agreement to all complying bidders.
65
AGREEMENT
Competitive Bidding
Determination of LCRB After Mini Competition (Cont)
- The HoPE shall then issue to all complying bidders

a Notice to Execute a Framework Agreement.
- The determination of the LCRB shall not
be performed by the BAC until a Mini-
Competition is conducted among the
complying bidders to determine the bidder with
the LCRB.
66
AGREEMENT
Framework Agreement
• Within ten (10) calendar days from receipt by

the participating bidder(s) of the Notification to
Execute a Framework Agreement with the Procuring
Entity, the bidder shall formally enter into a
Framework Agreement with the PE for an amount
of One Peso to be paid by the PE as a consideration
for the option granted to the PE to procure the
items in the Framework Agreement List when the
need arises.
67
AGREEMENT
Framework Agreement
• Executed within ten (10) calendar days from

receipt by the participating bidder(s) of the
Notification to Execute a Framework Agreement.
• Submission of a Performance
Securing Declaration to guarantee the faithful
performance by the supplier/service provider of its
obligations.
• Payment of an amount of One Peso by the procuring

entity as a consideration for the option granted to the
procuring entity.
68
AGREEMENT
Framework Agreement
• Framework Agreements shall include the following:
(a) Framework Agreement List;

(b) Contract price per item/service specified in the
Framework Agreement List;
(c) Delivery/service terms and conditions;
(d) Terms of payment;
(e) Specify that the perfection of the actual procurement
contract shall be reckoned from the execution of the Call-
Offs; and
(f) Statement that upon the execution of the Call-Offs, all
rules and guidelines governing implementation of
procurement contracts under RA 9184 and its IRR shall be
applicable.
69
AGREEMENT
Framework Agreement
• Shall not state or imply any agreement by

the procuring entity to place future contracts or
make orders with the supplier/service provider.
• No modification of the Framework Agreement during

its lifetime shall be allowed.
• Valid only for the period stated in the

Bidding Documents which, in no case shall exceed
three (3) years from the time the Framework
Agreement was executed.
70
AGREEMENT
Call-Off
• Upon the determination of the need to procure

the items or services, the PE will issue a
Call-Off, immediately if single-year Framework
after the
Agreement, or of Mini-Competition if multi-year
Framework
conduct Agreement, in favor of
suppliers/service providers to obligate the the
latter to
deliver or perform according to the terms
and conditions stated in the Framework Agreement.
71
AGREEMENT
Call-Off
• No limit in the of Call- that may be

number executed. Offs
However:
- Subsequent Call-Offs shall not exceed
the maximum quantity in the Framework
Agreement List;
- The fixed contract prices rule shall be observed;
- All executed Call-Offs shall not exceed the
total contract price specified in the
Framework Agreement.
72
AGREEMENT
Call-Offs and Participation in Other Bidding Activities
• The aggregate of the Call-Offs for a particular item or

similar items satisfactorily completed by
the supplier/service provider shall be considered as
one (1) completed contract with the cumulative
amount as the total contract amount.
• Only those undelivered items in the
executed
Call-Offs by the PE shall be included in the
Statement of All Ongoing Government
and Private Contracts for purposes of
participating in other bidding activities.
73
AGREEMENT
Implementation
• After receipt of the Call-Off from the PE, the supplier

shall deliver/perform the within the period
specified in the Framework
items Agreement, unless a
different time is provided in the Call-Off; in
which case, the period stated in the latter shall
prevail.
• All other rules governing contract

implementation under RA 9184, its IRR, and
relevant procurement policies shall be applicable
such as the rules on extension of time, payment
of liquidated damages and warranty, among
others. 74
AGREEMENT
Termination
• Without prejudice to the provisions of applicable laws,

rules, and guidelines, the Framework Agreement
shall automatically terminate under the following
conditions:
- When the total maximum quantity specified

in the Framework Agreement has been
exhausted; or
- When the specified duration of the
Framework
Agreement has expired.
75
AGREEMENT
Repeat Order
• Allowed after PE has exhausted maximum

quantity for the same item or after the Framework
Agreement has expired:
- Subject to conditions under Section 51.

- Repeat Order shall be availed of only within 6
months from the date of the last of final Call-Off
for a specific item or from the expiration of
the Framework Agreement.
76
What is mPhilgeps?
77
PHILGEPS MODERNIZATION
78
Modernization of the Philippine

Government Electronic Procurement System
(mPhilGEPS)
Existing Features Additional Features in mPhilGEPS
• Electronic Bulletin Board • Annual Procurement Plan
• Subscriber Registry (Uploading and Modification)
• Automatic Notification • e-Catalogue
• Government of the Philippines- • e-Bid Submission
Official Merchants Registry • Contract Management
(GOP-OMR) • e-Payment
• e-Reverse Auction
• Analytics
• System Linkages
79
80
What is the virtual store?
82
ONLINE PROCUREMENT via the
VIRTUAL STORE
83
Refers to the online

service of the mPhilGEPS
that allows
agencies to view,
search, select, and procure
CSE.
VIRTUAL STORE
a) Faster procurement and ordering process for 84
CSE;
b) Easier payment process on orders through the e-
Wallet;
c) Real-time stock level and prices are readily
available;
d) Ensures availability of CSEs ordered
(reservations are not allowed); and
e) VS kiosks will be available in the DBM-PS
Regional depots.
VIRTUAL STORE
85
5. 1. Agency
DeliverY
2. VS
4. e-
Walle 3. CSE
t
PARTICIPATION OF GOVERNMENT
EMPLOYEES’ COOPERATIVES
• Allows participation of Employees’

Government Cooperatives in
procurement activities
• The aforementioned shall comply existing
with
requirements and regulations
OVERSEAS PROCUREMENT
• Foreign service posts shall not be required to

post activities in the PhilGEPS website until
modernization project has been completed
• Continuous posting of RFQs and RFPs in website and

conspicuous area in the place of the Procuring Entity
REVISED BLACKLISTING GUIDELINES
Revised Blacklisting Guidelines 88
(Resolution No. 40-2017)
• Use of the term “Blacklisting” instead of

“Suspension” for the applicable Sanctions.
• Imposition of civil or criminal sanctions provided by
applicable laws.
• Use of terms “Appeal” and “Notice of Appeal”
instead
of “Protest” to avoid confusion with Rule XVII.
• Blacklisted bidders shall be automatically delisted
after the lapse of the period of the penalty.
• Applicability of Blacklisting for alternative methods of
procurement.
SUBMISSION OF BLACKLISTING
GUIDELINES
GPPB Circular No. 10-2017 89
• Reiteration of the requirement for the submission

of Blacklisting Orders to GPPB within seven (7)
calendar days after its issuance
REVISED GUIDELINES ON THE
PROCUREMENT OF POL PRODUCTS
90
GPPB Resolution No. 05-2018
• Provides additional guidelines on the procurement of

POL products in small or necessary quantities,
including automotive fuels for government vehicles
and equipment for official use.
91
Definition of Terms:
• Bulk Procurement – refers to any

procurement which, by the totality of its POL
requirements and by their sheer volume,
necessitates procurement from major suppliers
for purposes of economies of scale. All others
are procurement by retail pump price.”
• Retail Pump Price – the price of petroleum
fuel per liter, such as, gasoline, diesel oil and
kerosene, as established by retailers, dealers or
gas stations for the day.”
92
NECESSARY QUANTITIES OF PETROLEUM OIL &
LUBRICANT
• For necessary of petroleum fuel (gasoline,

quantitiesoil, and kerosene), and of Oil and
diesel,
Lubricant products, not in bulk, to be used for official
government vehicles and equipment for ultimate
consumption:
– Procuring entities may directly purchase from

any reputable retailers, dealers or gas stations at
retail pump price
– Subject to the controls on fuel purchase
and consumption issued by the COA to avoid
excessive purchases.
93
PROCUREMENT OF FLEET CARDS OR GAS VOUCHERS
• Procuring entities can continue procuring fuels (by

fleet cards or gas vouchers) through public bidding or any
of the alternative methods of procurement.
• In such procurements, the ABC and resulting contract

price for the purchase of fuels shall also be at retail pump
price subject to the discounts and additional services
offered as part of the bid.
MINUTES OF THE PRE-BID
CONFERENCE
94
• The minutes of the pre-bid conference shall be

recorded and prepared not later than five (5) calendar
pre-bid
days afterconference,
the and shall be made available
prospective bidders to
written request. The minutes
not later
of the
thanpre-bid
five (5)conference
days
shall likewise be posted in the website
upon of procuring
entities.
AWARDS OF CONTRACTS UNDER A
REENACTED BUDGET
95
What can be awarded on the basis of FY 2019 Reenacted
Budget
• Procurement projects covering recurring activities or

projects,
undertaken through EPA under the FY 2019 NEP
• In case the amount appropriated for the recurring activities

or projects in the FY 2019 Reenacted Budget is within the
amount of contract to be awarded but with a higher ABC as
included in the FY 2019 NEP,
REENACTED BUDGET
96
How new activities/projects are treated
• The 15-day period for the HoPE to approve the Resolution of the
BAC and to issue the NOA and the three-month period
within which to complete the procurement process shall be
tolled or suspended or shall not be counted beginning
January 1, 2019 until the effectivity of the new GAA for FY
2019.
• The period of time for the award of contract and termination of

the procurement process, as the case may be, shall begin to
run again upon the effectivity of the new GAA for FY 2019.
REENACTED BUDGET
97
Validity of Bids and Bid Security
• It shall be extended, at the option of the bidder, to adjust to

the new procurement timeline in case the period is tolled
pending the enactment of the new GAA for FY 2019
Early Procurement Regime
98
LEGAL REFERENCES
General Provisions • To ensure full budget utilization, timely

of the 2018
General contract implementation and efficient delivery
Appropriations Act of services, agencies are authorized to
(GAA) undertake procurement activities from pre-
procurement conference until post-qualification
of bids based on their proposed budget in the
National Expenditure Program, Corporate
Operating Budgets or Appropriations
Ordinances.
• Agencies may only proceed with the awarding
of contract upon approval or enactment of
their respective appropriations or budget
authorization document, as the case may be,
and based on the amount authorized.
LEGAL REFERENCES
DBM Circular • Prescribing Guidelines on the Conduct of

Letter 2018-8 and Early Procurement for the Fiscal Year (FY)
2018-12 2019 National Expenditure Program (NEP)
LEGAL REFERENCES
Section 7.6 of • Procuring Entity may undertake the

RA 9184 procurement activities short of award
even pending approval of the GAA,
corporate budget or appropriations
ordinance
• Procuring Entity to start their
procurement activities immediately after
NEP has been submitted to Congress,
provided that the HoPE has approved the
corresponding indicative APP.
• No award of contract shall be made

until the GAA, corporate budget or
appropriations ordinance, has been
approved or enacted
LEGAL REFERENCES
Section 20.1 • “[f]or the purpose of pre-

(c)(i) of RA procurement conference, pending
9184 the approval or enactment of the
GAA, corporate budget or
appropriations ordinances, as the
case may be, the certification of
availability of funds refers to the
amount in the indicative APP
consistent with the NEP, or
MYOA or its equivalent
document, the proposed corporate
budget or executive budget
EARLY PROCUREMENT ACTIVITIES
• Refer pre-procurement conference until post-

qualification
to of bids and recommendation by the
Bids and Awards Committee (BAC) to the
award contract to the winning bidder, in with
Section 7.6 of the 2016 IRR of RA 9184 and Section 19
accordance
of the General Provisions of the FY 2019 NEP
EARLY PROCUREMENT ACTIVITIES
Shall only commence upon completion of the following:
1. The harmonization of the Indicative APPs for non-common-used

supplies and equipment (non-CSE) with the FY 2019 NEP
2. Approval of the HOPE of the Indicative APP. Procuring Entities shall
ensure that APPs and its corresponding Indicative APPs contain all the
planned procurement regardless of fund source or mode of procurement
3. Posting of the Indicative APP on the Transparency Seal page of
the agency's website
4. Securing of a MYOA from the DBM for each multi-year project to
start implementation in FY 2019
5. Completion of appropriate preparatory activities, such as the

accomplishment of feasibility studies, detailed engineering designs,
securing the required regulatory clearances, and right-of-way acquisitions
for civil works projects
Early Procurement
Procurement Identification Procurement Assessment
•Cost-benefit Project Procurement Consolidation of Approval of

PPMPs to Revision of
analysis Management Plan Indicative APP
Indicative Annual PPMP &
•Feasibility (PPMP) and budget
Procurement Indicative APP
study proposal
Plan (APP) based on NEP
•Market
study
End-User Representative/Unit BAC & Secretariat HOPE/
Approving BAC & Secretariat
Authority
105
Capacity Development Division 105

Early Procurement
Procurement Procurement
Revision of PPMP
•Advertisement and •Award of
•Update PhilGEPS
& Indicative APP
Posting based on GAA Contract postings for Early
•Open and evaluate Procurement by
bids
posting the
•Post-qualify
Approved Contract
BAC & Secretariat
and the Notice to
Proceed
BAC & Secretariat
BAC & Secretariat

106
Capacity Development Division 106

THANK YOU 117
Address: Unit 2506 Raffles Corporate Center, F. Ortigas Jr. Road,

Ortigas Center, Pasig City
Telephone (+632) 9006741 to 44
: Website: http://www.gppb.gov.ph
Email: gppb@gppb.gov.ph

Salient Provision and Latest Updates On The 2016 Revised IRR - 042019

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Salient Provision and Latest Updates On The 2016 Revised IRR - 042019

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SALIENT PROVISIONS AND

LATEST UPDATES ON THE 2016

Implementing Executive Orders

over 100 procurement rules & regulations

Government Procurement Reform Act

Implementing Rules and Regulations (IRR) Part A

Revised IRR of 2009

Revised IRR of 2016

Philippine Bidding Opinions

• Amend implementing • Establish a • Ensure the proper

• Protect national interest in all matters affecting public procurement,

Transparency Competition Streamlined System of Public

Section 4.5(a) of the 2016 Revised IRR of RA

members to the next lower rank, in case pool from

In case of procurement outsourcing,

The Chairperson and Vice-chairperson

Issue/s Revision Impact

Issue/s Revision Impact

Issue/s Revision Impact

Within six (6) months upon

Issue/s Revision Impact

Issue/s Revision Impact

b. For mixed procurement, PE shall

Issue/s Revision Impact

on of - Allows submission of recently eligibility check

Issue/s Revision Impact

Issue/s Revision Impact

b. The BAC shall notify all

Bid and a. Allows the bidder to choose Avoid undue

Issue/s Revision Impact

(GPPB Resolution No. 21-2017)

Issue/s Revision Impact

(GPPB Resolution No. 30-2017)

Issue/s Revision Impact

Posting of awards for all Alternative

For Limited Source Bidding and Two-Failed

Issue/s Revision Impact

• To conform with the 2016 Revised IRR of RA 47

9184, the Philippine Bidding Documents for

• Through GPPB Resolution No. 24-2016, dated

– During the effectivity of the contract, or upon its

– Progress Payment – PE may require in the Bidding

• GPPB Resolution No. 15-2013, dated 10 May 2013,50

commits the support of GPPB in the

• Through GPPB Resolution No. 20-2016, dated

• GPPB Resolution 21-2016, dated 23 September 51

2016 approves the green specifications for the

• GPPB Resolution No. 12-2017, dated 10 April 2017,

• Pilot tested by the Department of Budget

• The GPPB has recently approved the use of

Definition of Framework Agreement

• It is in the nature of an ‘option contract’ between the PE

• For necessary and desirable goods that

• In case of expendable or non-expendable goods, it is

• All departments, bureaus, offices, and agencies of

• Expendable or non-expendable goods that

• Services, such as, hotel accommodation, air

• Procurement shall be conducted following the procedures

• Prices shall be fixed price per unit or item or identified

• The APP shall indicate the types of units or

✓Type and nature of each item;

• The APP shall indicate the types of units or