06 Alternative Methods of Procurement.05282018 - EDITED

ALTERNATIVE METHODS
OF PROCUREMENT
Annex “H” of the 2016 IRR of RA 9184
Government Procurement Policy Board – Technical Support Office

OUTLINE
I. Procurement Standards
II. Alternative Methods
1. Limited Source Bidding*
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
a. Two Failed Biddings
b. Take Over Contracts
c. Emergency Cases
d. Adjacent or Contiguous
e. Agency-to-Agency
f. Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services
g. Highly Technical Consultants
h. Defense Cooperation Agreement*
i. Small Value Procurement
j. Lease of Real Property and Venue
k. NGO Participation*
l. Community Participation*
m. UN Agencies, International Organizations or
International Financing Institutions*
Government Procurement Policy Board – Technical Support Office 2
PROCUREMENT STANDARD
Procuring Entities shall adopt

Public Competitive Bidding as the
GENERAL mode of procurement.

PROCUREMENT STANDARD
EXCEPTION
Alternative methods shall be resorted ONLY:

For any change in
1. In highly exceptional case the method of
procurement, the
2. To promote economy and efficiency APP shall be
3. Justified by conditions specified in IRR updated first prior to
the conduct of the
procurement
activity.
 No government procurement shall be undertaken unless it is in accordance

with the approved Annual Procurement Plan (APP) of the Procuring Entity
(PE).

Update!
 Executive Order 34
Signed 17 July 2017
 Authorizes the HoPE to proceed with the resort to alternative methods of

procurement, provided that for contracts with an amount of at least PhP 500
Million, the HoPE issues a certification under oath that the contract falls
within the exception of public bidding, is being entered into in faithful
compliance with all applicable laws, rules and regulations, and is
advantageous to the government.

1. LIMITED SOURCE BIDDING
Also known as “selective bidding” which involves direct

invitation to bid by the procuring entity from the list of pre-
selected suppliers or consultants.

PPLICABILITY:
GOODS INFRASTRUCTURE CONSULTING
 
ONDITIONS:
 Highly specialized types where only a few bidders are known
to be available, or
 Major plant components beneficial to limit bidding to known
qualified bidders to maintain uniform quality and
performance of the plant
7
APPLICABILITY:
 
CONDITIONS:
 Highly specialized types where only a few bidders are known to be available,
or
 Major plant components beneficial to limit bidding to known qualified
bidders to maintain uniform quality and performance of the plant

 Pre-selection is based on capability and resources to perform the contract

taking into account:
 Experience and past performance on similar contracts;
 Capabilities with respect to personnel, equipment, and/or manufacturing
facilities; and
 Financial position.
 The pre-selected list of suppliers and consultants shall be maintained by the

The pre-selected list
relevant
may begovernment
accessed at authority in which the PE may be the relevant
government authority.
http://www.gppb.gov.
ph/monitoring/pre_s
elected.php
 The pre-selected list shall be updated periodically and submitted to the GPPB.

2. DIRECT CONTRACTING
Single source procurement that does NOT require elaborate

Bidding Documents.
The supplier is simply asked to submit a price quotation or a

pro-forma invoice together with the conditions of sale. The
offer may be accepted immediately or after some
negotiations.

APPLICABILITY:

REQUIREMENTS PRIOR TO CONDUCT:
 End-user to conduct survey of the industry and determine the supply source.
End-user should also justify the necessity for the item that may be only
procured through Direct Contracting and prove that there is no suitable
substitute in the market.

CONDITIONS: (Continuation)
 Items of proprietary nature from proprietary source, i.e patents, trade secrets,
and copyrights;
 Critical components from a specific supplier to hold a contractor to guarantee
its project performance; or
 Items sold by an exclusive manufacturer or dealer, subject to the following
conditions:
 No other suppliers selling it at lower prices; and
 No suitable substitute can be obtained at more advantageous terms to the
Government

3. REPEAT ORDER
Procurement from the previous winning bidder, whenever

there is a need to replenish goods procured under a contract
previously awarded through Competitive Bidding.

3. REPEAT ORDER
APPLICABILITY:

CONDITIONS:
1. Same or lower unit prices than those in the original contract, provided
that such prices are still the most advantageous to the GOP after price
verification;
2. No splitting of contracts, requisitions and Purchase Orders;

3. REPEAT ORDER
CONDITIONS: (Continuation)
3. Availed of within 6 months from the date of the NTP arising from the
original contract, provided that there has been a partial delivery,
inspection and acceptance of the goods within the same period;
4. Not to exceed 25% of the quantity of each item in the original contract;
5. Original contract awarded through competitive bidding; and
6. The goods under the original contract must be quantifiable, divisible
and consisting of at least four (4) units per item

4. SHOPPING
Method where the procuring entity simply requests for the

submission of price quotations for readily available off-the-
shelf goods or ordinary/regular equipment to be procured
directly from suppliers of known qualifications.

4. SHOPPING
APPLICABILITY [Sec. 52.1(a) and Sec. 52.1(b)]:

 The phrase “ordinary or regular office supplies” are those supplies,
commodities, or materials which are necessary in the transaction of official
business, and consumed in the day-to-day operations. This will not include
services such as repair and maintenance of equipment and furniture, as well as
trucking, hauling and related ot analogous services.

4. SHOPPING
CONDITIONS [SHOPPING UNDER Sec. 52.1(a)]:
1. There is an unforeseen contingency requiring immediate purchase; and

2. Amount does not exceed the threshold.
 The RFQ may be sent directly to the supplier of known technical, legal and
financial qualifications. Sending of one (1) RFQ will suffice.
 Posting of the RFQ may be dispensed with.

4. SHOPPING
CONDITIONS [SHOPPING UNDER Sec. 52.1(b)]:
1. Procurement of ordinary or regular office supplies and equipment

not available in PS-DBM; and
2. Amount does not exceed the threshold.
 The BAC shall send the RFQs to at least three (3) suppliers of known
qualifications, and at least three (3) price quotations must be obtained.
 The deadline for submission may be extended thrice, if none or less
than the required number of quotations are received.
 In case no supplier responded after the third extension, the BAC
shall conduct a mandatory review in accordance with Section IV(K)
of Annex H.

4. SHOPPING
THRESHOLD FOR UNFORESEEN CONTINGENCIES [Sec. 52.1(a)]
 NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government–
PhP200,000
 LGUs :
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
In the case of Barangays, the maximum amount is PhP50,000

4. SHOPPING
THRESHOLD FOR Sec. 52.1(b)
PhP1,000,000
 LGUs :
Classification
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000

4. SHOPPING
STANDARD FORM FOR RFQ
 There is no prescribed template or standard form for the RFQ.
 The RFQ must indicate the specification, quantity, ABC, and other terms and
conditions of the item to be procured pursuant to Section 3(a) of the
Guidelines.
 In addition, the RFQ must prescribe the manner by which price quotations
shall be submitted i.e., by sealed or open quotation.

5.a NEGOTIATED PROCUREMENT -
SMALL VALUE PROCUREMENT
Procurement of goods not covered by Shopping under Sec.

52, infrastructure projects and consulting services not
exceeding the threshold.

APPLICABILITY:
  
 The BAC shall prepare and send the RFQs/RFPs to at least three (3) suppliers,
contractors or consultants of known qualifications.
 Receipt of at least one (1) quotation/proposal is sufficient to proceed with the
evaluation thereof.

AWARD OF CONTRACT TO A LONE BIDDER IN SVP
 In SVP, it is mandatory to send the RFQ to at least 3 prospective

bidders/proponents and invite them to submit proposals; but it is not necessary
to actually receive 3 proposals.
 It is enough that the PE receives at least one (1) bid/proposal on the day of the
deadline for submission of quotations.
 Thus, if the lone proposal already complies with the technical, legal and
financial requirements of the procuring entity, the contract can be awarded to
the lone offeror.

THRESHOLD:
PhP1,000,000
 LGUs :
Classification
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000

SHOPPING AND SMALL
The PE should be able to
PROCEDURAL
VALUEproduce
PROCUREMENT
supporting
documents that it has
invited at least 3
GUIDELINES: suppliers.
Send RFQ/RFP to at Post in PhilGEPS, PE’s
least 3 suppliers website and conspicuous
Prepare
*May be 1 in case of 52.1(a) place for 3 cd
RFQ/RFP
*Receipt of 3 RFQs for 52.1(b) is *Except 52.1(a) and ABC 50k and below
mandatory *Extend deadline if no quotation is received
Receipt of 1 RFQ in SVP will suffice
Award to LCB (for SHP

Prepare Abstract of & SVP)/HRB (for SVP)
Quotations that complies with
specs and ABC

SHOPPING AND SMALL
VALUE PROCUREMENT
 For both Shopping under Sec. 52.1(b) and Small Value Procurement, posting
of the following in the PhilGEPS website, PE’s website, if available, and at
any conspicuous place is required if the ABC of the procurement project is
more than PhP50,000.00:
 Request for Quotation/Proposal (For 3 calendar days);

 Extension of deadline for submission of quotation (For 3 calendar days);
and
 Award of contract

5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS
APPLICABILITY:
1. No bids were received;

2. All prospective bidders are ineligible;
3. All bids failed to comply with all the bid
requirements, post-qualification, or there
  
is no successful negotiation; or
4. The Single/LCRB/HRCB refuses, without
justifiable cause, to accept the award or
CONDITIONS: no award was made
1. Failed competitive bidding or Limited Source Bidding for the second

time under Sec. 35; and
2. Mandatory review of the Terms, conditions and specifications, and
ABC, which may be adjusted up to 20% of ABC for the last failed
bidding

TWO FAILED BIDDINGS
PROCEDURAL
GUIDELINES:
- Disqualified bidders
in previous biddings
for the project shall 2 Failed Mandatory
also be invited Competitive Preparation of
Review RFQ/Bid docs
Bidding/LSB
- Even if only one (1)
bidder should
respond, the BAC
shall proceed with
the negotiation
Invite at least
three (3)
suppliers/ Best Offer Awarding of
contractors/ contract
consultants
Requirements, guidelines,
documents, clarifications, or other
information relative to the
negotiations shall be
communicated
Government Procurement Policy Board – Technical on an equal basis.
Support Office
TWO FAILED BIDDINGS
 Criteria in selecting the successful offer:
1. Offer should meet the PE’s minimum technical requirements; and

2. Offer should not exceed ABC.
3. Best Offer
 Observers shall be invited in all stages

TWO FAILED BIDDINGS
FAILURE OF BIDDING AS DECLARED BY HOPE
 If the failure of bidding is due to the declaration by the HOPE pursuant to

Section 41 of the IRR , Negotiated Procurement (Two Failed Biddings)
cannot be resorted to.

TWO FAILED BIDDINGS
APPLICABILITY:
  

5.c NEGOTIATED PROCUREMENT -
EMERGENCY CASES
CONDITIONS:
 In case of imminent danger to life or property during a state of calamity;

 When time is of the essence arising from natural or man-made calamities; or
 Other causes where immediate action is necessary:
 To prevent damage to or loss of life or property
 To restore vital public services, infrastructure facilities and other public
utilities

5.c NEGOTIATED PROCUREMENT -
EMERGENCY CASES
 In all instances, the HoPE shall confirm in writing the existence and veracity
of the ground/s relied upon before approving the contract.
 Considering that the underlying reason of this modality relates to “time

element”, the PE should consider appropriate timing or the proximity of time
between the actual procurement activity to be conducted and the emergency
sought to be addressed.
 When the reason or cause for the emergency has already been abated,
adoption of competitive bidding shall be considered.
 When the ground is based on imminent danger to life during a state of

calamity, there must be a declaration by a competent authority of a state of
calamity before any procurement activity may be undertaken.

5.d NEGOTIATED PROCUREMENT -
TAKE-OVER OF CONTRACTS
APPLICABILITY:
  

CONDITIONS:
 The contract, previously awarded through Competitive Bidding, has been

rescinded or terminated for causes provided for in the contract and existing
laws; and
 Immediate action is necessary:
 To prevent damage to or loss of life or property; or
 To restore vital public services, infrastructure facilities, and other public
utilities.

 The BAC shall post-qualify and negotiate starting with the 2nd LCB or HRB
Authority to negotiate
at the said bidder’s original bid price, then oncontracts
to the next
for if negotiation
projects under fails.
this modality shall be subject
to prior approval by the HoPE.
 If negotiation fails, the BAC may either:
1. Invite a short list of at least three (3) suppliers, contractors or
consultants to submit bids and negotiate starting with the LCB or HRB;
or
2. Resort to any other appropriate alternative method of procurement.

5.e NEGOTIATED PROCUREMENT -
ADJACENT OR CONTIGUOUS
Where the subject contract is adjacent or contiguous to an

on-going Infrastructure Project or Consulting Service where
the consultants have unique experience and expertise to
deliver the required service.

APPLICABILITY:
 
CONDITIONS:
1. Original contract is a result of competitive bidding;
2. Subject contract has similar or related scopes of work;
3. Within the contracting capacity of the contractor/consultant;

CONDITIONS:
4. In determining the SLCC, NFCC and PCAB license, the sum of the
value of the remaining works for the existing contract and the
ABC of the contiguous or adjacent work shall be considered;
5. The same prices or lower unit prices as the original contract less
mobilization cost,
6. The ABC of the contiguous or adjacent work involved does not
exceed the contract amount of the ongoing project.
7. No negative slippage/delay during the time of negotiation, and
8. Negotiations (e.g. scope of work or terms of reference, unit price
and other terms and conditions) commenced before expiry of
original contract.

WHEN ORIGINAL CONTRACT HAS ALREADY BEEN COMPLETED
 The determination and decision to resort to the alternative modality of

Negotiated Procurement under Section 53.4 is subject to the prior approval of
the HOPE, upon favorable recommendation of the BAC, provided that the
conditions set forth therein are present, one of which is that “the negotiations
for the procurement are commenced before the expiry of the original contract”.

5.f NEGOTIATED PROCUREMENT -
AGENCY – TO – AGENCY
Procurement from another agency of the government
(Servicing Agency) that has the mandate to deliver goods or

services or to undertake infrastructure projects or
consultancy services as required by the PE.

APPLICABILITY:
  
 All procurement to be undertaken by the Servicing Agency, including those

required for the project, shall be governed by the provisions of RA 9184.
 All projects undertaken under A-to-A shall be subject to pertinent budgeting,
accounting, and auditing rules and regulations.

CONDITIONS:
1. The PE shall justify that entering into an A-to-A with the Servicing Agency
is more efficient and economical to the government;
2. The Servicing Agency has the mandate to deliver the goods and services
required to be procured or to undertake the infrastructure project or
consultancy required by the Procuring Agency;
3. Servicing Agency has the absorptive capacity to undertake the project;
4. Servicing Agency owns or has access to the necessary tools and equipment
required for the project;

CONDITIONS:
5. Sub-contracting is not allowed. However, the servicing agency may

implement the infrastructure project in-house, by job-order, or through
the pakyaw contracting system; and
6. For procurement of infrastructure projects, the Servicing Agency must
have a track record of having completed, or supervised a project, by
administration or by contract, similar to and with a cost of at least fifty
percent (50%) of the project at hand.

PROCEDURAL
GUIDELINES:
The End-User
The End-User shall secure a The HoPE shall
shall justify to certificate enter into a
The BAC shall
the BAC that from the MOA with the
issue a
the resort to relevant officer Servicing
Resolution
A-to-A is more of the Agency upon
recommending
efficient and Servicing approval of the
the use of A-to-
economical to Agency that BAC
A to the HoPE.
the the latter recommendati
government. complies with on
the conditions.

5.g NEGOTIATED PROCUREMENT
SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES
Where Goods, Infrastructure Projects and Consulting

Services can be contracted to a particular supplier, contractor
or consultant as determined by the HoPE.

APPLICABILITY:
 All types of Procurement involving:
1. Work of art; commissioned work or services of an artist for specific

artistic skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.);
2. Scientific, academic, scholarly work or research, or legal services;
3. Highly-specialized life-saving medical equipment, as certified by the

Department of Health;

APPLICABILITY:
4. Scientific, technical, economic, business, trade or legal journal,
magazine, paper, subscription, or other exclusive statistical
publications and references;
5. Media documentation, advertisement, or announcement through
television, radio, newspaper, internet, and other communication
media.
6. The construction or installation of an infrastructure facility where
the material, equipment, or technology under a proprietary right
can only be obtained from the same contractor.
CONDITIONS:
1. End-User shall conduct a market study and determine the probable

sources to justify the need to procure through this negotiated modality;
2. The study should confirm that the supplier, contractor or consultant

could undertake the project at more advantageous terms; and
3. The market study must be conducted prior to the commencement of the

procurement process.

5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL
CONSULTANTS
Procurement of consultancy contract involving an individual

consultant who is found to be legally, technically and
financially capable after negotiation.

5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL
APPLICABILITY:
CONSULTANTS

CONDITIONS:
1. Work involves:
 Highly technical or proprietary; or
 Primarily confidential or policy determining, where trust and confidence are
the
primary consideration; and
2. Term is, at the most, 1 year, renewable at the option of the appointing HOPE, but
in no case to exceed the term of the latter.
5.i NEGOTIATED PROCUREMENT
DEFENSE COOPERATION
APPLICABILITY:
AGREEMENT
 Goods and Consulting Services to be used by AFP
 major defense equipment or materiel
 defense-related consultancy services
CONDITIONS:
1. Prior approval of the President;
2. Expertise or capability required is not available locally;
3. DND Secretary has determined that the interests of the country shall be
protected by negotiating directly with an agency or instrumentality of another
country with existing defense cooperation agreement or diplomatic relations
with the Philippines; and
4. Performance security under §39 of IRR of RA 9184 shall be required to supplier

5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND
VENUE
Procurement covering lease of
real property and venue for official use.

CONDITIONS: VENUE
1. The End-User shall prepare a Cost-Benefit Analysis indicating leasing
privately-owned real property or venue is more efficient and economical
 The ABC shall be set using the mid point of the range obtained from the
results of the market analysis on the prevailing lease rates.
 Rental rates should also be within the prevailing market rates
There is no threshold for the use
of this modality so long as it
covers
2. Technical lease of privately-owned
Specifications shall be prepared taking into consideration
real property or venue.
the Rating Factors under Appendix B.

VENUE
 The BAC shall invite at least three (3) prospective lessors/venues within the
vicinity of the selected location to submit sealed price quotations for real-
property and open price quotations for venue.
The RFQ is not required to be
posted in the PhilGEPS website
 Receipt of at least one (1) quotation is sufficient to proceed with the
evaluation.
 Lease contracts amounting to more than PhP50,000.00 shall be posted in the

PhilGEPS website.

5.k NEGOTIATED PROCUREMENT -
NGO PARTICIPATION
APPLICABILITY:
  
CONDITION:
 Appropriation law or ordinance earmarks an amount to b
contracted to NGOs
PE may opt to:
1. Conduct public bidding; or
2. Enter into a MOA with an NGO, subject to the guidelines issued
by the GPPB for the purpose
58
5.k NEGOTIATED PROCUREMENT
NGO PARTICIPATION
APPLICABILITY:
  
CONDITIONS:
 Appropriation law or ordinance earmarks an amount to be contracted to
NGOs
PE may opt to:

1. Conduct public bidding; or
2. Enter into a MOA with an NGO, subject to the guidelines issued by the
GPPB for the purpose
5.l NEGOTIATED PROCUREMENT
COMMUNITY PARTICIPATION
APPLICABILITY:
 Delivery of goods, including non-consulting services and simple

infrastructure projects
CONDITION:
 In the interest of project sustainability or to achieve certain specific social

objectives

COMMUNITY PARTICIPATION IN
PROCUREMENT MANUAL
 The current legal framework on Community Participation modality is
embodied in the Community Participation in Procurement Manual (CPPM)
and its annexes issued by the GPPB.
 After issuance of the CPPM, the GPPB approved the Supplemental

Guidelines for Community Participation in Procurement Method for Foreign
Assisted Projects, and adopting the Community-Managed Procurement
approach in the CPPM; subject to the implementing guidelines to be issued by
the GPPB.

COMMUNITY PARTICIPATION IN
PROCUREMENT MANUAL
 Accordingly, GPPB Resolution No. 28 -2016 was issued on 20 December

2016 approving the Supplemental Guidelines for Community-Managed
Procurement in Locally-Funded Projects.
 With the issuance of these resolutions adopting two (2) Supplemental

Guidelines to CPPM, community groups may now be engaged as either
service providers or community contract managers.

NEGOTIATED
PROCUREMENTCOMMUNITY
PARTICIPATION THRESHOLD
MAXIMUM AMOUNT
(In Philippine Peso)
PROCURING ENTITY
Infrastructure
Goods
Projects
1. National Government Agencies

2. Government Owned/Controlled Corporations 2,000,000 5,000,000
3. Government Financial Institutions
4. State Universities and Colleges
5. Local Government Units
 1st-3rd Class Provinces

1,000,000 2,500,000
 1st-2nd Class Cities

 Highly Urbanized Cities

NEGOTIATED
PROCUREMENTCOMMUNITY
PARTICIPATION MAXIMUM
THRESHOLD
AMOUNT
(In Philippine Peso)
PROCURING ENTITY
Infrastructure
Goods
Projects
5. Local Government Units
 4th Class Province
800,000 1,750,000
 3rd Class City
600,000 1,000,000
 4th Class City
 5th-6th Class Cities
500,000 750,000
 Municipalities
 Barangays

ELIGIBILITY
REQUIREMENTS
Legal Requirements
Technical Requirements For registered

community-
based service
providers
Financial Requirements

ELIGIBILITY
REQUIREMENTS
1. Legal Requirements
●
Certificate of Registration from DTI, SEC, CDA, DOLE, NCIP, national
government agency or local government unit (LGU)
●
Certificate from the leader of the community-based provider
●
Stating no relationship, either by consanguinity or affinity up to the fourth
degree, to the Head of Procuring Entity, a member of the BAC, or other
official authorized to process and/or approve the proposal, contract, and
release of funds
●
Disclosure of related business/es

ELIGIBILITY
REQUIREMENTS
2. Technical Requirements
●
List of completed contracts
●
similar to procurement or list
●
indicating the experiences of members of the community-based service
provider that satisfies the technical requirements of the procurement at hand
●
in terms of its capacity to deliver the goods
●
perform the non-consulting service
●
or construct the simple infrastructure project, at an equal or higher established
standards.

ELIGIBILITY
REQUIREMENTS
3. Financial Requirements
●
Certificate that the community-based service provider has an existing bank
account
●
Updated audited financial statement
●
Proof that it has financial management system that maintains the following
sets of book of accounts: cash receipts book, cash disbursement book,
ledger/logbook, subsidiary ledger (particularly for inputs, assets, properties
belonging to community based service provider, bank book/bank
statements, disbursement vouchers, and official receipt

ELIGIBILITY
REQUIREMENTS
For non-registered community-

based service providers
●
Legal Requirements
●
Technical Requirements
●

ELIGIBILITY
REQUIREMENTS
●
Legal Requirements
●
Certificate from the Punong Barangay
●
Stating individual members of the group are residents of the target community(ies)
●
Resolution or minutes of the Barangay Assembly
●
approving the creation of the community group as a community-based service provider

ELIGIBILITY
REQUIREMENTS
●
Technical Requirements
●
List indicating the experiences of members of the community-based service
provider
●
satisfies the workmanship and skill set requirements for the procurement at
hand

ELIGIBILITY
REQUIREMENTS
●
●
Guidelines for the establishment of a financial management system
necessary for the performance of the project and the implementation of a
payroll system

ELIGIBILITY
REQUIREMENTS
Option of Community Groups

In lieu of the above-mentioned requirements,
the community group, whether registered or not,
may submit Certificate of Accreditation issued
by the appropriate government agency pursuant
to the provisions of the applicable General
Appropriations Act.

5.m NEGOTIATED PROCUREMENT -
UN AGENCIES, INTERNATIONAL ORGANIZATIONS OR
INTERNATIONAL FINANCING INSTITUTIONS
APPLICABILITY:
  
CONDITIONS:
Procurement from UN Agencies, IOs or IFIs, of any of the following:
a. Small quantities of off-the-shelf goods, primarily in the fields of education and
health;
b. Specialized products where the number of suppliers is limited; or
c. Goods, Infrastructure Projects and Consulting Services, involving advanced
technologies, techniques and innovations not locally available as certified by the
HoPE,.
DOCUMENTARY
REQUIREMENTS
The BAC shall indicate in the RFQ or RFP at what stage of the procurement
process these requirements must be submitted, i.e., submission of offer/s,
evaluation of offer/s, before issuance of Notice of Award or prior to payment.

DOCUMENTARY
REQUIREMENTS
Professional Income/
Mayor’s/ PhilGEPS PCAB Omnibus
License /CV NFCC Business
Alternative Modality Business Reg. License Sworn
(Consulting (Infra.) Tax
Permit Number (Infra.) Statement
Services) Return

Direct Contracting For ABCs
  above
[Section 50]
P500K
Shopping [Sec 52.1(b)]  
   
For For ABCs For ABCs
Emergency Cases ABCs above above

(Section 53.2)] P500K
above P500K

P500K

DOCUMENTARY
REQUIREMENTS
Professional Income/
Mayor’s/ PhilGEPS PCAB Omnibus
License /CV NFCC Business
Alternative Modality Business Reg. License Sworn
(Consulting (Infra.) Tax
Permit Number (Infra.) Statement
Services) Return

Take-Over of Contracts
(Section 53.3.2; for new     
bidders)
Adjacent/ Contiguous
 
(Section 53.4)
Scientific, Scholarly or 
Artistic Work, Exclusive For ABCs
   above
Technology and Media
Services (Section 53.6) P500K

DOCUMENTARY
Mayor’s/B
Professional
License /CV
REQUIREMENTS
PhilGEPS PCAB
NFCC
Income/ Omnibus
Alternative Modality usiness Reg. License Business Sworn
(Consulting (Infra.)
Permit Number (Infra.) Tax Return Statement
Services)
Highly Technical
Consultant (Section   
53.7)
 
Small Value For ABCs For ABCs
Procurement (Section     above above
53.9) P500K P50K
  
Lease of Real Property Except for Except for Except for
Or Venue (Section gov’t gov’t gov’t
53.10) agencies agencies agencies
as lessors as lessors as lessors

DOCUMENTARY
REQUIREMENTS
 For individuals engaged under Sec. 53.6 (Scientific, Scholarly…), 53.7
(Highly Technical Consultant) and 53.9 (Small Value Procurement) of the
IRR of RA 9184, only the BIR Certificate of Registration shall be submitted
in lieu of Mayor’s Permit.
 Requirements under Section 53.6 (Scientific, Scholarly…) of the IRR of RA

9184 will not apply to artists such as singer, performer, poet, writer, painter
and sculptor who are not engaged in business.
 For methods of procurement requiring Mayor’s Permit and PhilGEPS

Registration Number, Certificate of Platinum Membership may be submitted
in lieu of the said documents.

POSTING REQUIREMENTS
Advertisement in the newspaper and posting requirements may be dispensed with
provided that the BAC through its Secretariat shall post the procurement
opportunity (RFQ or RFP) in PhilGEPS, website of PE if available, and
conspicuous place in the premise of PE for a period of at least three (3) calendar
days, for the following methods:
 Limited Source Bidding [Sec. 54.2]

 Shopping [Sec. 52.1(b)] above P50K
 Negotiated Procurement under Two Failed Biddings [Sec. 53.1]
 NGO Participation [Sec. 53.11]
 Small Value Procurement [Sec. 53.9] above P50K

PHILGEPS REGISTRATION
Bidders are mandated to register with PhilGEPS, and provide PhilGEPS
Registration Number as a condition for award on the following modalities:
1. Sec. 50 – Direct Contracting;

2. Sec. 52.1(b) – Shopping for ordinary office supplies and equipment not
available in DBM-PS;
3. Sec. 53.3 – Take Over of Contracts (Only for New Bidders, if any.);
4. Section 53.6 – Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services;
5. Section 53.7 – Highly Technical Consultants;
6. Section 53.9 – Small Value Procurement; and
7. Section 53.10 – Lease of Real Property and Venue.
For Two-Failed Biddings and LSB, the BAC shall require the submission of a
Certificate of PhilGEPS Registration in accordance with Sec. 8.5.2 of the IRR of
RA 9184

INVITATION OF OBSERVERS
 Generally, invitation of Observers are not required when resorting to
alternative methods of procurement except in those where competitive
bidding or semblance a semblance thereof is still present, such as in Limited
Source Bidding and Negotiated Procurement (Two Failed Biddings) under
Sec. 49 and Sec. 53.1, respectively, of the revised IRR.
 Under Sec. 13.3 of the revised IRR of RA 9184, Observers shall be invited at
least five (5) cd before the date of the negotiation and the absence of
Observers will not nullify the BAC proceedings, provided that they have been
duly invited in writing.

REFERENCE TO BRAND
NAMES
 Reference to brand names shall NOT BE ALLOWED except for items or
parts 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.
 This rule shall also apply to the goods component of infrastructure projects
and consulting services.

DELEGATION OF AUTHORITY
The conduct of the following may be delegated to End-user unit or any other
appropriate bureau, committee, or support unit duly authorized by the BAC
through a Resolution approved by the HoPE:
1. Shopping (b)
2. Negotiated Procurement under Emergency Cases
3. Small Value Procurement
4. Lease of Real Property and Venue
 Shopping A and Emergency cases, the delegated authority can be until award
of contract

PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of
Performance Security (PS) Warranty Security (WS)
Procurement
Limited Source Bidding  
Direct Contracting x 
Repeat Order x 

In no case shall WS be
Two-Failed Biddings  required in the
procurement of
Consulting Services.

PERFORMANCE and
WARRANTY SECURITIES
Procurement
Procuring Entity may require PS Procuring Entity may require
depending on the nature of the WS depending on the nature
procurement project. However, of the procurement project.
for Infrastructure Projects, PS is In no case shall WS be
Emergency Cases required. required in the procurement
of Consulting Services.
Take-over of Contracts  
Adjacent/Contiguous For Infrastructure Projects,
 WS is required.

PERFORMANCE and
WARRANTY SECURITIES
Procurement
Procuring Entity may require PS Procuring Entity may require
depending on the nature of the WS depending on the nature
procurement project. However, of the procurement project.
for Infrastructure Projects, PS is In no case shall WS be
Small Value Procurement required. required in the procurement
of Consulting Services.

OTHER TERMS AND
CONDITIONS
 No procurement shall be undertaken unless in accordance with APP.
 Most advantageous price for government should be obtained (Sec. 48.1)
 Splitting of contracts is strictly prohibited (Sec. 54.1)
 Bid security NOT necessary, except in Limited Source Bidding.
 The Uniform Guidelines for Blacklisting of Manufacturers, Suppliers,

Distributors, Contractors, and Consultants also apply to Alternative Methods
of Procurement.

T H AN K YO U!
CONTACT US AT:
Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph

06 Alternative Methods of Procurement.05282018 - EDITED

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

06 Alternative Methods of Procurement.05282018 - EDITED

Uploaded by

Copyright:

Available Formats

ALTERNATIVE METHODS

Government Procurement Policy Board – Technical Support Office

Procuring Entities shall adopt

Government Procurement Policy Board – Technical Support Office

Alternative methods shall be resorted ONLY:

 No government procurement shall be undertaken unless it is in accordance

Government Procurement Policy Board – Technical Support Office

 Authorizes the HoPE to proceed with the resort to alternative methods of

Government Procurement Policy Board – Technical Support Office

Also known as “selective bidding” which involves direct

Government Procurement Policy Board – Technical Support Office

GOODS INFRASTRUCTURE CONSULTING

GOODS INFRASTRUCTURE CONSULTING

Government Procurement Policy Board – Technical Support Office

 Pre-selection is based on capability and resources to perform the contract

 The pre-selected list of suppliers and consultants shall be maintained by the

Government Procurement Policy Board – Technical Support Office

Single source procurement that does NOT require elaborate

The supplier is simply asked to submit a price quotation or a

Government Procurement Policy Board – Technical Support Office

GOODS INFRASTRUCTURE CONSULTING

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Procurement from the previous winning bidder, whenever

Government Procurement Policy Board – Technical Support Office

GOODS INFRASTRUCTURE CONSULTING

Government Procurement Policy Board – Technical Support Office

original contract, provided that there has been a partial delivery,

inspection and acceptance of the goods within the same period;

5. Original contract awarded through competitive bidding; and

6. The goods under the original contract must be quantifiable, divisible

and consisting of at least four (4) units per item

Government Procurement Policy Board – Technical Support Office

Method where the procuring entity simply requests for the

Government Procurement Policy Board – Technical Support Office

GOODS INFRASTRUCTURE CONSULTING

Government Procurement Policy Board – Technical Support Office

CONDITIONS [SHOPPING UNDER Sec. 52.1(a)]:

1. There is an unforeseen contingency requiring immediate purchase; and

Government Procurement Policy Board – Technical Support Office

1. Procurement of ordinary or regular office supplies and equipment

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

 There is no prescribed template or standard form for the RFQ.

Government Procurement Policy Board – Technical Support Office

Procurement of goods not covered by Shopping under Sec.

Government Procurement Policy Board – Technical Support Office

GOODS INFRASTRUCTURE CONSULTING

Government Procurement Policy Board – Technical Support Office

 In SVP, it is mandatory to send the RFQ to at least 3 prospective

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Award to LCB (for SHP

Government Procurement Policy Board – Technical Support Office

 Request for Quotation/Proposal (For 3 calendar days);

Government Procurement Policy Board – Technical Support Office

1. No bids were received;

1. Failed competitive bidding or Limited Source Bidding for the second

Government Procurement Policy Board – Technical Support Office

 Criteria in selecting the successful offer:

1. Offer should meet the PE’s minimum technical requirements; and

 Observers shall be invited in all stages