epublic Act No.

9184)
An Act Providing for the Modernization,
Standardization and Regulation of the
Procurement Activities of the Government and
for the other Purposes, otherwise known as
the Government Procurement Reform Act
(GPRA) Sec. 1, Rule I, RIRR of R.A. No.
9184.
Approved
Took Effect

------------ January 10, 2003

------------ January 26, 2003

RA 9184 Implementing Rules and Regulations-A

(IRR-A)
Approved
------------ Sept. 23, 2003
Took Effect ------------ Oct. 08, 2003
RA 9184 Revised Implementing Rules and
Regulations (IRR)
Approved
------------ July 22, 2009
Published
------------ Aug. 03, 2009
Took Effect ------------ Sept. 02, 2009

ures of the Procurement

Law
Enactment of the Government Procurement Reform
Act (GPRA) is the result of consolidation of procurement
rules and regulations.
Creation of the Government Procurement Policy Board
(GPPB) due to the lack of standards, inconsistencies in the
policies, rules & regulations led to the creation of GPPB.

Use of PhilGEPS because of lack of transparency, all

government agencies are required to register with the
PhilGEPS in order to post invitations to bid and notices.

Participation of Civil Society because of lack check

and balances, it requires the presence/ participation of civil
society.

Sec. 4, Rule 1, RIRR of RA 9184

Scope and Application of RA 9184:
Reference: NPM 165-2012
RA 9184 and its IRR do not cover disposal of
government properties
Disposal of unserviceable equipment and property of all
government agencies is covered by EO 888 (s.1983)
EO 285 (s. 1987) has identified DPWH as the agency-incharge with the disposal of government-owned
building. In line with this, DPWH, DBM, and DENR issued
Joint Circular No. 1, which provides the procedures on
demolition of buildings.
Disposal
and Procurement are two distinct
government transactions covered by different
rules and regulations.

Scope and application:

Lease of Government-Owned Building

Reference: NPM 50-2013

Transactions where a government agency leases out its real

property for private use, such as in the case of a canteen or
food concessionaire are governed by Executive Order 301
particularly section 7 thereof, series of 1987 and its associated
guidelines

Implementing Guidelines for Lease of Privately-Owned Real

Estate Guidelines will only apply to lease of privately-owned
real estate by government agencies for official use. See
Appendix 7, Handbook of Phil.Govt Procurement, 6 th Ed., 2012

Authority of GPPB (Rule XX of RA 9184 to

ensure
the
proper
implementation
by
procuring entities of the Act, this IRR and all
other relevant rules and regulations pertaining
to public procurement;
to formulate and
amend public procurement policies, rules and
regulations and amend , whenever necessary,
this IRR; etc.

Reference: NPM 56-2013

GPPB
has no jurisdiction to rule over actual
controversies with regard to the conduct of the bidding
since it has no quasi-judicial functions under the law.

It is the prerogative and discretion of the procuring

entity through its BAC to come up with the declaration
since they are in the best position to determine the
details of their Project.

What is Procurement?

Procurement refers to the acquisition of goods,

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

Projects involving mixed procurements, the nature

of the procurement, i.e., goods, infrastructure projects,
or consulting services, shall be determined based on the
primary purpose of the contract. Ibid.

Acquisition means the acquiring by contract, with

appropriated funds of supplies or services.

Reference: NPM 11-2013

PE is in the best position to determine the correct
classification of its procurement based on its identified
needs and the best way by which these needs may be
addressed, managed, and satisfied.

In case of mixed procurements, its nature can be best

determined based on the primary purpose of the contract
[S5(aa),RA 9184 IRR]

It is the motivation or intention of the PE in pursuing the

project that will determine the primary purpose of a
contract.

PE should be guided by the parameters and conditions in

the relevant provisions of RA 9184 and its IRR on what
should be considered as Goods, Infrastructure Projects
or Consulting Services procurement.

 Procurement

encompasses the whole

process of acquiring property or
services. It begins when an agency has
identified a need and decided on its
procurement requirement. Procurement
continues through the processes of risk
assessment, seeking and evaluating
alternative solutions, contract award,
delivery of and payment for the
property or services and, where
relevant, the on-going management of a
contract and consideration of options
related to the contract. (CPG, 2008)

Goods - refer to all items, supplies, materials

and general support services (except consulting
services and infrastructure projects) needed in
the transaction of public businesses or in the
pursuit of any government undertaking,
project or activity, whether in the nature of
equipment, furniture, stationery, materials for
construction, or personal property of any kind,
including non-personal or contractual services,
such as repair and maintenance of equipment and
furniture as well as trucking, hauling, janitorial,
security, and related or analogous services, as
well as procurement of materials and supplies
provided by the procuring entity for such services.
Sec 5., (r), RIRR of RA 9184.

ure of Goods
1. Equipment, furniture, stationery, construction
materials,
2. Non-personal or contractual services such
as hauling, janitorial, security and related or
analogous services - includes lease or purchase
of office space, media advertisements, health
maintenance services and other services essential
to the operation of the Procuring Entity.

Classified as:
Common-use supplies as those goods, materials,
and equipment that are repetitively used in the dayto-day operations of procuring entities in the
performance of their functions.
Inventory items include common-use supplies,
goods, materials and equipment that are not in the
Price List of the PS-DBM but are regularly used and
kept on stock by the procuring Entity. Inventory items
that are not common-use supplies may be procured
from commercial sources, or suppliers other than the
PS-DBM.
Non-common use supplies are those goods,
materials, and equipment that are neither commonuse supplies nor inventory items, and may include
those goods, materials and equipment that are
required by the Procuring Entity for a specific
project only.
Services refer to general support services except
consulting services and infrastructure projects, which
may be needed in support of the transaction of
public businesses or in the pursuit of any

 Expendable

supplies are articles which are normally

consumed in use with one (1) year or converted in the
process of manufacture or construction, or those having
a life expectancy of more than one (1) year but which
shall have decrease substantially in value after being
put to use for only one (1) year (e.g. medicines,
stationery, fuel, and spare parts)

Non-expendable

are articles which are not consumed

in use and ordinarily retain their original identity during
the period of use, whose serviceable life is more than
one (1) year and which add to the assets of the GOP
(e.g., furniture, fixtures, transport and other equipment)

hat is Procurement
Planning?
Process of identifying which project needs can be best met by procuring products and
services outside the project organization and should be accomplished during the
project planning effort
Why Plan? to investigate the risk
to lessen identified risk
to minimize losses, delays,
for effective implementation and value for money
Advantages of Procurement Planning
1. it gives higher efficiency and efficacy
2. it enables the procurement officials to anticipate the onset of events, to
choose the best and most feasible method of procurement to be applied
3. it enables the PE to determine the best manner by which to procure at
least cost.

 Procurement

planning entails ensuring that

plans for procurement are linked to budgets,
preparing the PPMP and consolidating all PPMPs
into a APP.

Procurement
Planning
Section 7. Procurement Planning
(See D.O. 64, s. 2012 dated September 17,
2012)
From PPMPs to APPs
General rules

 What

is a PPMP?

What is an APP?

PPMP

Project
Procurement
Management Plan
APP

Annual
Procurement Plan

 Formulating

the PPMP involves identifying

the procurement project requirements,
writing
the
technical
specifications,
determining the ABC, identifying the
schedule of milestone activities, and
determining the method of procurement.

General rules
All

procurement must be w/in

approved budget
No procurement unless in accord w/
approved APP
All procurement must be meticulously &
judiciously planned

General rules
Only

those considered crucial to

efficient discharge of governmental
functions must be included in APP
required for day-to-day operations
in pursuit of principal mandate
Include provisions for foreseeable
emergencies, based on historical records
ABC in APP/PPMP must be consistent w/
appropriations in GAA

Factor to be considered in planning for the procurement of Goods

The end-user unit should consider the following factors which
have an impact on contract packaging, the procurement method
to be used, and other components of Procurement Planning
pursuant to Section 7 of the Revised IRR of R.A. 9184:
1.
2.
3.

Nature of the Goods to be Procured

Availability of the Goods or Services in the Market
Obsolescence,
operation,
and
maintenance
equipment/non-consumable Goods

of

The End-User should also take into consideration the warranty

requirements (Section 62.1 Revised IRR or R.A. 9184) for
goods being procured as follows:

On using the PS-DBM for procurement:

The Department should consider the services of the PS-DBM in the procurement of
all kinds of supplies. This will free it from the tediousness of attending to recurring
transactions, and provide greater time for the procurement of high value, highly
specialized requirements for its more significant projects.
The Technical Specifications
Technical Specifications refers to the physical description of the goods and
services, as well as the Departments requirements in terms of the functional,
performance, environmental interface and design standard requirements to be met
by the goods to be manufactured or supplied, or services to be rendered.

it includes the testing parameters for goods, when such testing is required in the
contract.

Functional description is the description of the functions for which the Goods are to
be utilized. For example, a ballpen is expected to write 1.5 km straight, continuous lines.
Performance description refers to the manner that the Goods are required to
perform the functions expected of them. For example, a ballpen that writes at 1.5km
should do so continuously and smoothly, without skipping, and with the color of the ink
being consistent.
Environment interface refers to the environment in which the required functions are
performed at the desired level. For example, a ballpen should write continuously for
1.5km on pad paper or bond paper, but not necessarily on wood or on a white board.
Design refers to the technical design or drawing of the goods being procured. A
design standard is particularly useful in cases where the goods procured are specially
manufactured for the Department. For example, in procuring clothing materials for the
DPWH employees uniform, there is a specific pattern design, color and shade and textile
that should be followed.

Consideration in setting the technical specifications of the goods

to be procured.
In determining the technical specifications of the goods it will
procure, the PMO or end-user unit must:
consider the objectives of the project or the procurement at
hand. The conduct of a comparative study of the options
available in the market and their relevance to the requirements of
the Project is highly recommended. In-house experts who are
part of the TWG or the PMO must likewise be tapped to provide
technical advice. If there are no in-house experts available to
provide advice on highly technical Goods, the Department may
hire consultants to assist it in developing the technical
specifications for the procurement at hand.

 It is important to note that the use of brand names

is prohibited by the Revised IRR.
Specifications for the procurement of goods shall
be based on relevant characteristics and/or
performance requirements. Hence, a generic
description of the product or service must be used.

The Approved Budget for the Contract or the ABC

The ABC is the budget for the contract duly approved by the Head of the
Procuring Entity, as provided for in the GAA and/or continuing appropriations, in
the case of NGAs;
ABC basically refers to the proposed budget for the project approved by the
Head of the procuring Entity based on the APP as consolidated from various
PPMPs.
Factors to consider in determining the ABC:
In determining the ABC, the PMO or end-user unity, with the assistance of the
TWG (when necessary), must consider the different cost components, namely:

1.
2.
3.
4.
5.
6.

The cost or market price of the product or service itself;

Incidental expenses like freight, insurance, taxes, installation costs, training
costs, if terms;
The cost of money, to account for government agencies usually buying on
credit terms:
Inflationary factor, since the planning phase is usually done one year ahead of
the actual procurement date;
Quantities, considering that buying in bulk usually means lower unit prices; and
The supply of the spare parts and/or maintenance services, if these are part of
the contract package.
If the project or contract has a foreign component, it is also best to include a
currency valuation adjustment factor, in order to address foreign exchange rate
fluctuations between the planning phase and the actual procurement date. To
determine the factor to be used, the PMO or end-user unit may be request for
guidance from the BSP, or refer to BSP forecasts, if available

If the sum of the different cost components is lower than the appropriation for the
procurement, then the ABC should be equal to the sum of the cost components. If
the resulting sum is higher than the appropriation, it is advisable to review the
technical specifications and the computation of the ABC. In any case, the ABC
should not exceed the appropriation. In all instances, the procuring office shall
ensure that the ABC reflects the most advantageous prevailing price for the
government.
The BAC can make adjustment on the ABC after every failure of bidding provided,
that a mandatory review and evaluation of the terms, conditions, and specifications
in the Bidding Documents, including cost estimates is under taken and provided
further that the required approval are secured. However, the ABC cannot be
increased by more that twenty percent (20%) of the ABC of the last failed bidding.
(Section 53.1.1. of Revised IRR)

PPMP Preparation - END-USER (D.O. 64, s. 2012 dtd 9/17/12)

The Project Procurement Management Plan (PPMP) for
Goods(GPPB Standard Form No. ___) contains the
goods to be procured for the Fiscal Year. The goods must
be categorized or grouped accordingly; (furniture & fixtures,
construction materials, electrical, hardware materials, oil &
lubricants, etc.).
A List of Itemized Goods, reflecting its prices must
be attached to the PPMP. The sum total for each category should reflect
the total ABC for each category.
The Mode of Procurement being proposed by the end-user must be reflected in
thereat, as well as the period when intended to be procured, usually the procurement
is restricted on a quarterly basis in order to avoid overstocking of goods. After
approval of the PPMP and the APP (consolidated), the end-user may now prepare.
GOODS may be those considered Common-Use
Office Supplies, Materials and Equipment available from
PS-DBM and those Not Available from PS-DBM (Inventory Common-Use Office
Supplies, Materials and Equipment).

A.1. PPMP for Common Use Office Supplies, Materials and

Equipment Available from PS-DBM

PROCUREMENT OF COMMON-USE SUPPLIES. Commonuse supplies shall be procured directly from the PS or its depots
without need of public bidding as provided in section 53.5 of the
RIRR of RA 9184. (sec. 4, Administrative Order No. 17, dated
July 17, 2011 issued by the Office of the President)

Common-Use Supplies refers to those supplies, materials,

and equipment included in the price list of the PS which are
necessary in the transaction of the official business of the
procuring entity and consumed in its day-to-day operations.
Submission: On or before 15 November of the current year of
PPMP intended for the succeeding year.

The APP for Common-Use Supplies and Equipment (APP-CSE) shall be

submitted at the PS-DBM, Manila for government agencies located at
Metro Manila. For LGUs, government agencies field and Regional Offices
to be submitted at the PS-DBM Regional Office. (DBM Circular No. 2011-6
dated August 25, 2011 and 2011-6(A) dated September 28, 2011).

Note: The APP for Common-Use Supplies and Equipment shall be

submitted using the prescribed format. The said format maybe
downloaded thru the Procurement Service Website at
http://www.procurement service.org downloaded tabs and the Philgeps
website at http://www.philgeps.net about PhilGEPS tab useful
downloads. The same APP-CSE shall be e-mailed to app@procurement
service.org or app.psdbm@yahoo.com and submit one (1) hard copy to
the following:

For Main/Central Office to the concerned Budget and management Bureau

of the DBM Central Office; and
For Regional Offices, to the respective DBM Regional Office

PPMP FORM

A.2. PPMP for Supplies, Materials, Equipment and Services Not

Available from PS-DBM
These are goods which are not included in the PS-DBM List of
Goods which can be viewed at its Web Virtual Store.
Virtual Store- refers to an enhanced electronic catalogue of the
Philgeps that allows procuring entities to purchase common-use
supplies online that are available from the PS and its depots.
Electronic Catalogue refers to the list of common-use supplies that are
available from the PS and its depots as appearing in the Philgeps.
These goods (if not included in the PS-DBM List of Goods) are sourced
out thru alternative method of procurement (Shopping, Small Value
Procurement, Direct Contracting, Negotiated, Repeat Order) and thru
the regular mode of procurement Public Bidding or Competitive
Bidding.

Goods to be sourced outside PS may be require with

a Certification from PS that the said particular
goods are not available.
This can now be downloaded at the PS website.
The updating of PPMPs is the responsibility of the
end-user concerned, while the updating of the
APP shall be done by the BAC Secretariat on a
semestral basis or as the need arises.
The PPMPs should also include a provision for
contingency/unforeseen requirements.

ED LIST OF GOODS FORM

THRU PSDBM

n consolidating PPMPs
All procurement shall be separated whether goods,
civil works or consulting. Civil works or consulting
Services are usually distinct entries in the APP,
unless the PE finds merit in merging infrastructure
project scopes (civil works)or deliverables
(consultants)

Goods procurement can be separated into three

categories: common-use supplies (CSE) from the
Procurement Service (PS),
common-use supplies
(non-PS), other goods procurement
(see preparation of PPMP)

What is an APP?
Annual Procurement Plan (APP) the requisite document that the
agency must prepare to reflect the entire procurement activity
(i.e., goods, services, civil works to be procured) that it plans to
undertake within the calendar year.
This document contains the following information:
1. Name of the procurement program/project;
2. End-User unit;
3. General description of the procurement;
4. Procurement method to be adopted;
5. Time schedule for each procurement activity;
6. Source of fund; and
7. Approved Budget for the Contract.

reparation of APP
1.

Prepare Project
Plan (PPMP).

Procurement

Management

2.

Submit to Budget Office for evaluation.

3.

Submit Budget Proposal to HOPE.

4. Upon approval of HOPE, Budget Office will

forward PPMPs to BAC Secretariat for
Consolidation and Review.

5.When GAA, Corporate Budget or

Appropriation Ordinance becomes final,
PPMPs will be finalized and submitted to
BAC Secretariat for consolidation and
approval of the HOPE.

APP FORM

Updating of PPMP and consolidated APP (sec. 7.4, RIRR of

RA 9184.

1. The end-user shall revise and adjust the PPMP to reflect the
budgetary allocation for their respective procurement activities
as soon as the GAA becomes final;

2. The revised PPMP shall be submitted to the BAC thru its

Secretariat for the finalization of the modes of procurement
under the proposed APP for approval of the Secretary;

3. Updating of the individual PPMPs and the consolidated APP

shall be undertaken every 6 mos. or as often required by the
Secretary;

4. The ABC reflected in the PPMP shall at all times consistent

with the appropriations for the proposed projects authorized in
the GAA.

urement methods
All Procurement shall be done through competitive
bidding except as provided in R.A. 9184. (sec 10, Rule
IV)
Resort to alternative methods shall be made:

Only in highly exceptional cases

To promote economy and efficiency
Justified by conditions specified in R.A. 9184 and its IRR

Preparation of Purchase Request with the following

attachments:
a. Approved APP
b. Approved PPMPs and Itemized List of Goods
c. Pre-Inspection Report (Repair and Maintenance of
Equipment)
d. Authority to Procure (Heavy Equipment)
e. Sample Material (if applicable)
f. Plans, Program of Work or Drawings
(if applicable)
BRANDING IS PROHIBITED.
NO PROCUREMENT IF NOT INCLUDED IN THE
APPROVED APP

Reference to Brand Names

(Reference: NPM 156-2012)

18 R.A. 9184 and IRR prohibits reference to

brand names.
The PE cannot refuse to accept the delivery
of an item that is compliant with the
technical specifications provided in the
bidding documents.
If bidding documents identified a specific
brand, PE may consider declaring failure of
bidding as the BAC failed to conform with the
prescribed bidding procedures.

Technical Specifications
Reference: NPM 22-2013
*PEs are precluded from requiring specific
country of origin as part of the technical
specifications for the project.
*Specifications shall be based on the
performance requirements and recognized
industry standards and not on the basis of
country of origin.

The Purchase Request (PR)

- it contains the complete technical specifications of
the goods to be procured as well as the total ABC for
the purpose; quantity of the goods needed; supporting
documents to be attached:
- it must be numbered indicating the code of every office
with numbers (usually 4-digit numbers) as they
enter and year.
- it must be certified that the items are included in the
APP.
Who prepares the PR? The End-User prepares and
submits to the BAC for procurement. It shall be
approved by
the HOPE.

Procurement Methods

Metho
d

Goods

1.

Competitive Bidding

2.

Limited Source Bidding

3.

Direct Contracting

4.

Repeat Order

5.

Shopping

Bidding Process (Goods)

PreProcurement
Conference
sec. 20

Advertiseme
nt
and/or
Posting
sec. 21

Pre-Bid
Conference
Sec.22

Bid
Submissions

Opening of Technical
Proposal (inlc.
Eligibility docs)

Opening of
Financial
Proposal

Sec. 29, 30

Sec.25, 30.1

Sec. 30.2

Bid Evaluation
Sec. 32

PostQualification
Sec. 34

Contract
Award
Sec. 37.1

ods 2M & below

SEC. 20

- Pre-procurement may not be required for small value

procurement like goods costing P2M and below
Who may attend:
1. The BAC;
2. The BAC Secretariat/ Procuring Unit;
3. End-user unit/s;
4. The members of the TWG/s and consultants hired by
the Procuring Entity;

5. Officials who reviewed the above-enumerated documents prior

to final approval, if any;
6. Other officials concerned, as may be required
* no observers; no bidders
* HOPE cannot attend the Pre-Procurement (though there is
no prohibition) because the project was approved by him.

RE-PROCUREMENT
CONFERENCE
GOODS
2M & BELOW
(P2M and above, Pre-procurement is
necessary)

RE-PROCUREMENT
Section 20.1 x x x During this conference, the
participants, led by the BAC, shall:

1. Confirm the description and scope of the contract,

the ABC, and the contract duration

2. Ensure that the procurement is in accordance with

the project and annual procurement plans;

3. Determine the readiness of the procurement at

hand, including, among other aspects, the following:
a. Availability of appropriations and programmed
budget for contract
b. Completeness of the Bidding Documents and their
adherence to relevant general procurement
guidelines;
[c. Completion of the detailed engineering according
to the prescribed standards in case of infrastructure
projects; and
d. Confirmation of the availability of ROW and the
ownership of affected properties.]

 4.

Review, modify and agree on the criteria for

eligibility screening, evaluation, and postqualification;
5. Review and adopt the procurement schedule,
including the deadlines and timeframes, for the
different activities; and
Reiterate and emphasize the importance of
confidentiality, in accordance with Section 19 of
this IRR, and the applicable sanctions and
penalties, as well as agree on measures to ensure
compliance with the foregoing.

Advertisement
Posted in the:
1. PhilGEPS Website
2. Procuring Entitys Website
* 7cds starting on date of advertisement
3. Conspicuous place reserved for the purpose of
advertising procurement opportunities
* 7cds
Advertised at least once in:
4. Newspaper of general national circulation, regularly
published for at least two (2) years
See re: posting in secs. 21.2.1, advertisement of ITB; 22.5.3, supplemental/bid bulletin; 37.1.6, Notice
of Award; 37.4.2, Notice to Proceed; 54.2, Alternative Methods of Procurement, shopping, negotiated
procurement under two-failed biddings, small value procurement and NGO participation; 54.3, in all
instances of Alternative Methods of Procurement the Notice of Award.
*no advertisement, the results of the bidding is void. If there is lacking in the advertisement, it will
be considered void.

Note:
In the Pre-Procurement Conference, the Schedule
of Activities will be submitted and approved.
The Request for Advertisement to the publisher
will likewise submitted and approved.
The Schedule of Activities contains the dates of
pre-procurement conference, newspaper/websites
posting of ITB, issuance of bidding documents, prebid conference, submission and opening of bids,
bid evaluation, post-qualification, approval of
resolution/issuance of award, contract preparation
and signing, and approval of contract

RTISEMENT/POSTING OF
E INVITATION TO BID
Medium

Above 2M

2M and below

Newspaper of general

x (not required)

nationwide circulation
PhilGEPS website

PEs Website, if available

Conspicuous Place
Website prescribed by the
foreign government/foreign
or international funding
institution, in case of foreign
funded procurement

e of Bidding Documents
PARAMETER (ABC)

COST OF BIDDING
DOCUMENTS

0 to 500 k

500.00

More than 500 K to 1M

1000.00

More than 1M to 5M

5, 000.00

More than 5M to 10M

10, 000.00

More than 10M to 50M

25, 000.00

More than 50M to 500M

50, 000.00

More than 500M

75, 000.00

Charging of Fees
Reference: NPM-68-2013
Decision
in charging fees for bidding
documents, whether for the first bidding or
any subsequent re-bidding, depends upon
the procuring entity, taking into account the
need to recover the cost of its preparation
and development vis--vis the effects in
competition and participation of bidders.
However,
fees must conform with the
standard rates for the sale of bidding
documents under GPPB Res. No. 04-2012,
which took effect on 4 September 2012.

Payment for the 2nd

Bidding

Reference: NPM 163-2013

Where there was a failure of bidding for the first time,
the decision of charging fees for the Bidding
Documents for the subsequent re-bidding depends
upon the discretion of the procuring entity, taking
into account the need to recover the cost of its
preparation and development vis--vis the effects on
competition and participation of bidders.
The preparation and development of the revised Bidding
Documents may entail upon the procuring entity another
set of cost and expenses. Based on these costs and
expenses, procuring entities may deem it necessary to
charge bidders anew for the purpose of recovering the
costs for its development and preparation

Bidding Documents
Available

on the 1st day of Advertisement

Where:
Procuring

Entity

PhilGEPS
To

recover the cost of preparation and

development

-Bid Conference
Sec.22
ABC 1 Million Pesos or more - (Mandatory).
at least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms,
conditions, and specifications
ABC less than 1M, pre-bid conference conducted at the discretion of the BAC - (Discretionary)
*12 calendar days (cd) before bid opening or deadline for submission
*pre-bid conference discuss eligibility requirements and the technical and financial
components of the contract to be bid
*attendance of the bidders shall not be mandatory
*consultant/lawyers may be present
*at the option of the PE, only those who purchased bid documents allowed to participate and raise
or submit written queries or clarifications
Statements

made during the conference must be included in the Supplemental/Bid Bulletin

Sec. 22.5
request for clarifications or interpretations on the bid documents
must be in writing and submitted at least 10 cds before
deadline of submission and receipts of bids.
a

procuring entity must issue a Supplemental Bid Bulletin at

least 7 cd before deadline of submission and receipt of bids
in response to clarifications from the PE arising from the pre-bid
conference.

Supplemental/Bid

Bulletin posted on the Philgeps and website

of the PE.
Responsibility

of
the
bidders
to
inquire
and
secure
Supplemental/Bid Bulletin. BUT, bidders who have submitted bids
before issuance of Supplemental/Bid Bulletin must be informed in
writing and allowed to modify or withdraw their bids

 Purpose
1.

of Pre-Bid Conference

To clarify and address the bidders

questions on the technical and financial
components of the projecty
2. To ensure that the bidders fully understand
the Procuring Entitys requirements
3. To ensure that the bidders know the
changes and/or amendments to the bidding
documents.

Pre-Bid Conference

Reference: NPM 48-2013

Sec. 22.1 of the IRR of RA 9184 provides that at least
one (1) pre-bid conference should be conducted
by the procuring entity for projects costing at least
Php 1 Million, in order to afford prospective bidders
the opportunity to inquire on or clarify any of the
requirements, terms, conditions, and specifications
stipulated in the Bidding Documents.
Failure to conduct a pre-bid conference for the Project
amounts to a violation of a mandatory provision
of law, which will render the procurement activity
void under Art. 5 of the Civil Code of the Philippines.

Reasons for rejection of bids and

ineligibility of bidder

Failure to submit original copy of the Certificate from Insurance

Commission indicating the name of project; the procuring
entity and name of contractor.
Shorter bid validity and bid security validity period
Late bid
Wrong insertion of documents
Omnibus Sworn Statement/Secretarys Certificate/Board
Resolution not notarized
For Similar Contract, Single Largest Contract not indicated in
the Statement of all Government & Private Contracts
completed which are similar in nature
NFCC less than the ABC
Submitting forms not acceptable pursuant to the provisions of
the R-IRR of RA 9184
For Bid Security, Surety Bond, Callable on Demand and validity
of 120 days , not inscribed in the bond.
Bid prices higher than the ABC
Lack copies of the bid

Bid Bulletin
Posted at:
PhilGEPS
Website of Procuring Entity, if available
Bidders have the responsibility to inquire and secure
Bid Bulletins; however, those who have submitted bids
prior to the issuance of the Bid Bulletin must be
informed and allowed to modify their bids.

Supplemental/Bid
Bulletin

Reference: NPM 46-2013

S22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid

Bulletins upon their initiative for the purpose of
clarifying or modifying any provision in the Bidding
Documents, including the IB.
Accordingly, PE has the authority to revise or amend any
statement in the Bidding Documents, including the IB,
specifically when such revision or amendment is made for
the purpose of clarifying or modifying its provisions.
Supplemental/Bid Bulletins must be posted in the
PhilGeps and at the PEs website, in order to address
aspects of competition and transparency.

BILITY
IREMENTS
Section 23.
GOODS
Class A Documents
Legal Documents
1. DTI/SEC/CDA Registration
2. Mayors permit
3. Tax Clearance
Technical Documents
4. Statement of ongoing & completed contracts
Financial Documents
5. Audited Financial Statement
6. Computation of bidders NFCC (CLC is no longer accepted as an alternative to the bidders computation
of NFCC as amended by GPPB Res. No. 20-2013 dated July 30, 2013
Class B Document
JVA or notarized statement from the partners that they will enter into joint venture if awarded the contract

E: GPPB Resolution 12-

UPDATE: GPPB Resolution 12-2012:

Effective: 12 January 2013 (Publication: 28 December
2012)
Amendments to IRR: Sections 8.5.2, 23.4, 24.4.3
Guidelines for the Use of the GoP-OMR

BILITY REQUIREMENTS

UPDATE: GPPB Resolution 12-2012

23.4 / 24.4.3. To facilitate the determination of eligibility, the BAC of a
procuring entity may use the contents of the PhilGEPS electronic registry of
manufacturers, suppliers, distributors, contractors, and/or consultants.
23.4.1 / 24.4.3.1. The PhilGEPS registry system shall contain the
foregoing Class A documents, which should be maintained current and
updated by the bidder concerned at least once a year or more frequently
as may be necessary.
23.4.2 / 24.4.3.1. A bidder who maintains a current and updated file of his
Class A documents may submit to the procuring entity, in lieu of the said
documents, the Certificate of Registration and Membership issued by
PhilGEPS pursuant to Section 8.5.2.

PhilGEPS

Reference: NPM 19-2013

Registration Certificate

Although bidders are not precluded from submitting the postqualification documents required in s34.2 RA 9184 IRR during
submission of bids, it is prudent for the PE to request the latest and
current documents during post-qualification

PE cannot recommend the award of contract if the bidder failed to

submit a current and updated PhilGeps Registration Certificate within 3
calendar days from its receipt of the BACs notice.

Its belated submission of a renewed PhilGeps Registration Certificate

does not cure the defect, and should result in the disqualification of the
bidder and forfeiture of its bid security.

Registry System

Reference: NPM 16-2013

Secs. 23.4 and 24.4.3 allows the BAC of a procuring entity to

maintain a registry system using the PhilGeps or its own manual
or electronic system that allows submission and/or recording of
eligibility requirements simultaneously with registration. However,
prospective bidders not included in the registry system should not
be precluded from participating in any procurement opportunity.

This should not be considered an accreditation system, and is not

tantamount to a finding of eligibility, nor a guarantee that the
registered supplier, contractor, or consultant will be eligible for any
particular procurement activity or contract award.

PhilGEPS: Registration

Reference: NPM 34-2013

S8.5.1 RA 9184 IRR requires suppliers,
contractors, consultants to register with
PhilGeps. It does not qualify based on threshold.
Inapplicability of the posting requirement is not
tantamount to a situation where PhilGeps
registration may also be dispensed with since
the amount of the project is not a factor for the
condition to apply.
Registration with PhilGeps is absolute, and must
be complied with regardless of the amount of
procurement.

Additional
Requirements

Reference: NPM 24-2013

PE cannot compel prospective bidders or the winning bidder to

submit or comply with requirements not initially provided in the
Bidding Documents or through any Supplemental/Bid Bulletin issued
by the PE for the project that must be posted at the PhilGeps and
the PEs website.

If no Supplemental/Bid Bulletin is issued to reflect changes in the

Bidding Documents, or even if the same was issued but not posted
at the PhilGeps and PEs websites, the original provisions contained
in the Bidding Documents remain and the prospective bidder,
including the winning bidder cannot be compelled to abide or comply
with the changes made by the PE.

Submission of LOI no
longer required
Reference: NPM 55-2013
Bidders are no longer required to submit a
written LOI together with their application for
eligibility.
Instead, bidders only have to submit their
bids not later than the deadline for the
submission and receipt of bids, which can be
extended or rescheduled together with the
opening of bids as provided in sec. 29 of the
IRR of RA 9184.

GIBILITY CRITERIA
(LEGAL)
GOODS
General rule: 60% Filipino
Foreign bidder allowed if:
Stated in treaty or international or executive agreement
National of a country offering reciprocity rights to Filipinos
Goods not available from local suppliers
To prevent situations that defeat competition or restrain trade

LIGIBILITY CRITERIA
(TECHNICAL)
Goods - Single Largest Contract
General Rule
1. Value is at least
of 50% of ABC

2. Expendable --value of at least

25% of ABC

Exceptions

Then require the ff.:

If at the outset and a) At least 2 similar contracts

market research,
aggregate amount at least
applying the general equivalent to required
rule will likely result
percentage; and
to:
1. Failure of bidding; b) largest of the similar
or
contracts amounts to at
2. Monopoly
least 50% of required
percentage

Nature of Similar
Contracts

Reference: NPM 42-2013

PEs have the responsibility to clarify in the Bidding

Documents what projects can be considered similar to the
contract being bid out, for purposes of determining
compliance with the SLCC requirement (Single Largest
Completed Contracts).

As guidance, a contract shall be considered similar to the

contract to be bid out if it involves goods or services of the
same nature and complexity as the subject matter of the
project being procured. Similarity of contract should be
interpreted liberally in the sense that it should not refer to an
exact parallel, but only to an analogous one of similar
category.

Similar Contracts in
Goods
Reference:

NPM 54-2013
Definition or description of a similar contract
should not unreasonably limit competition and
inequitably bar participation of capable
suppliers.
Similarity of contract should be interpreted
liberally in the sense that it should not refer to
an exact parallel, but only to an analogous one
of similar category.

LIGIBILITY CRITERIA
(FINANCIAL)

Goods:
NFCC at least equal to ABC

NFCC formula
NFCC = [(current assets - current liabilities) x (K)] (outstanding, uncompleted portions under ongoing
contracts, contracts awarded but not yet started
included)
where:
(K) = 10 (contract is 1 year or less)
15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)

Required Amount of
NFCC
Reference:

NPM 76-2013
Participating bidder should be required to
submit an NFCC that is at least equal to all
the lots to which it participated in, in
order to establish the bidders financial
liquidity and absorptive capacity in
carrying out the contractual obligations
required by the lots to which it participated in.

Additional Eligibility
Requirements
Reference:

NPM 53-2013
Procuring entities are proscribed from requiring
additional eligibility requirements because the
list of minimum eligibility requirements has
been streamlined/simplified such that only
those requirements enumerated in Secs. 23.1,
24.1, and 25.1 of the IRR of RA 9184 are
necessary for purposes of determining a
bidders eligibility.

Authority of BAC Sec to

Open and Examine

Reference: NPM 69-2013

Sections 12. 1, 30.1 and 30.2 of the revised IRR of RA

9184 categorically vests upon the BAC the authority
to determine each bidders compliance with the
required documents for purposes of eligibility.

Such authority cannot be delegated to the BAC

Secretariat.

Authorized
Representative

Reference: NPM 43-2013

S25.2 RA 9184 IRR requires the bidder or its duly
authorized representative to issue a sworn
statement that the signatory is the duly
authorized representative, and granted full power
and authority to represent the bidder.
S29 RA 9184 IRR provides that bidders or their
duly authorized representative may attend
opening of bids.
PE cannot restrict participation only to the
principal/bidder, but shall likewise extend the
representation
to
the
duly
authorized
representative of the sole proprietorship.

Sealing and Marking of

Bids
Reference:

NPM 36-2013
Since the rule and the ITB Clauses 20.1
and 20.2 use the word shall,
connoting command and compulsion,
the requirements on sealing and
marking of bids are regarded as
mandatory.
Improper sealing and marking of bids
may be a ground to disqualify a bidder.

Bid Opening

Reference: NPM 54-2013

Sec. 30 requires that the preliminary examination
of bids be conducted by merely checking for the
presence or absence of documentary requirements
using a non-discretionary pass/fail criterion.
However, the BAC has the right to review the
qualifications of a bidder during the same stage if
it has reasonable grounds to believe that a
misrepresentation has been made or there has
been changes in the bidders capability to
undertake the project.

Submission and Opening

Date of submission should not be later than the maximum
period of 45 cds from the last day of posting of the
Invitation to Bid
2 - Envelope System:
1st Envelope Eligibility & Technical Proposal:
Legal & Financial Documents
Class A Documents
a. Registration Certificate for SEC, DTI, or CDA]
b. Mayors Permit
]Legal
c. Tax Clearance per Exec. Order 398, S. 2005] Docs.
d. Statement of on-going and completed contracts
(Technical Documents)
e. Audited Financial Statements ] Financial
f. Computation of NFCC
] Documents

SSION AND OPENING

S
Sec.25
Two-Envelope System:
1st Envelope - Eligibility Requirements and Technical Component
- in the Omnibus Affidavit, a statement is added: (name of bidder did not
give or pay directly or indirectly, any commission, amount, fee, or any form of
consideration, pecuniary or otherwise, to any person or official, personnel or
representative of the government in relation to any procurement project or activity).
Note: it also contains statement on Disclosure of Relatives
- Secretarys Certificate/Board Resolution
2nd Envelope - Financial Component
Submitted to the BAC on the date, time, and place specified in the Invitation to Bid
Bids submitted after the deadline should not be accepted

*the rules of public bidding is strictissimi otherwise, it would lack integrity of the bidding system.

CLOSURE OF
IONS
Sec. 47

Relatives within the third civil degree of the following shall be

disqualified:
Head of the procuring entity
Members of the BAC, Secretariat and TWG
Head of the end-user unit or project management office
Project consultants
Note: This should be read in relation to the Bidding Documents on Conflict of Interest as
stated in the Omnibus Affidavit. Sec. 47 of RIRR of RA provides only the penalty on the
conflict of interest.

Conflict of Interest

Reference: NPM 14-2013

Conflict of interest arises when, in the case of the subject matter of the
inquiry, the Chairman of the BAC that conducted the earlier
procurement was eventually designated as OIC of the Procuring Entity.

In this case, the subject procurement is deprived of checks and

balances as one of the persons conducting the bid evaluation and postqualification, who is no less than the BAC Chair, may have that degree
of proclivity towards the recommended action of the BAC; thus, the
subsequent award of contract may no longer enjoy the cold neutrality of
an impartial HOPE.

NG AND EVALUATION
COND ENVELOPE
Contents:
1. Financial Bid Form (includes bid prices and bill of quantities, as well
as applicable price schedules)
2. In case of goods, Certification from the DTI, SEC, or CDA, if
claiming preference as Domestic Bidder or Domestic Entity
3. Other documents required in the bidding documents

Class B Document
JVA or duly notarized statements of entering into a
JVA if awarded a contract
In the case of foreign bidders, foreign eligibility
requirements under Class A Documents may be
substituted by the appropriate equivalent
documents, if any, issued by the country of the
foreign bidder concerned

If foreign bidder:
Submit equivalent documents issued by country
Accompanied by English translation certified by
appropriate embassy or consulate in the Philippines
Government corporate entities eligible only if:
Legally and financially autonomous
Operate under commercial law
Not dependent agencies of GOP or procuring entity

Opening of Reconsidered Bid

Reference:

NPM 69-2013
BAC should open a reconsidered bid under the
same circumstances as it opened the bids that
were not disqualified, i.e., upon a duly
scheduled opening of bid with proper notices to
the concerned entities.

Pre-qualification
Reference: NPM 54-2013
The practice of pre-qualification has been
abandoned in RA 9184 and its IRR. The results
of a prequalification have no legal force and
effect, bearing or weight, and cannot preempt
the findings of the BAC during the preliminary
examination of bids conducted during the
opening of bids. Hence, a bidder may still be
declared ineligible during the opening of bids
despite a finding of qualification during the
purported pre-qualification exercise.

BID SECURITY
Amount of Bid Security
Form of Bid Security

a)
by

Cash or cashiers/managers check issued

a Universal or Commercial Bank.

a) Bank draft/guarantee or irrevocable letter of
credit issued by a Universal or Commercial
Bank: Provided, however, that it shall be
confirmed or authenticated by a Universal or
Commercial
Bank,
if
issued
by
a
foreign bank.
a) Surety bond callable upon demand issued by
a surety or insurance company duly certified
by the Insurance Commission as authorized
to issue such security.
a)

Any combination of the foregoing.

(Equal to Percentage of the ABC)

Two percent (2%)

Five percent (5%)

Proportionate to share of form with
respect to total amount of security

Sec. 27.1
Bid

security payable to PE
Purpose: to guarantee that the successful bidder shall, within ten
(10) cds or less, as indicated in the Instruction to Bidders, from
receipt of the Notice of Award, enter into contract with the
Procuring Entity and furnish the Performance Security.
When is bid security returned? After the bidder with the Lowest
Calculated Responsive Bid has signed the contract and furnished
the performance security, except those declared by the BAC as
failed or post-disqualified in acc. with this RIRR, upon submission
of a written waiver of their right to file a motion for
reconsideration and/or protest, sec. 27.4 of RIRR.
* Sec. 27.4, RIRR should be read in relation to sec. 34.4, 34.5 and
34.6
Bid security not returned later than the expiration of the bid validity
period unless extended.

Surety Bonds

Reference: NPM 151-2012

Although the phrase Callable on Demand appearing the face of

the Surety Bond is preferred, there is no requirement that the
exact/same phrase should appear on the face of the Surety Bond,
as this phrase simply provides the caveat to the obligee, obligor
and the surety that the surety contract facility may be called only
upon a proper demand callable on demand to establish
default, and to trigger the liability under the surety contract.

The phrase Callable upon Demand need not be specifically

written, or emphasized in bold letters across, or diagonally on the
face of the Surety Bond. It is sufficient that the import or totality of
the stipulations, covenants, provisions, and agreements written on
the instrument makes the Surety Bond callable upon demand.

ecuring Declaration
What is BSD?
An undertaking by a prospective bidder,
committing to pay the corresponding fine and
be suspended for a period of time from being
qualified to participate in any government
procurement activity in the event it violates any
of the conditions stated therein

GPPB Res No. 03-2012:

Guidelines in the Use of BSD

Published 20 August 2012

Effective 04 September 2012

Section 27 of the IRR is amended to include Bid Securing Declaration
as an alternative to the forms of bid security
What is BSD?
BSD shall be valid for a reasonable period determined by the HOPE
concernedin the Bid Documents
*Grounds for enforcement of BSD:
- bidder withdraws its bid during the period of bid validity
- bidder fails or refuses to accept the award and enter into contract
*Consequences of enforcing BSD
- payment of fine
- automatic blacklisting

Validity120 CDs
Sec. 28
Extension shall be requested by the Procuring
Entity to the Bidder, if necessary, Right to refuse
grant of extension without forfeiture of bid security

Bids and bid securities shall be valid for a reasonable period

as determined by the HOPE as indicated in the Bid Docs:
Not to exceed 120 days from the deadline of
submission of bids
If the period is extended, PE shall request in writing all
those who submitted bids for such extension before the
expiration date
NOTE: Bidders have a right to refuse to grant such
extension w/o forfeiting their bid security.

Bid Evaluation
Sec. 30
Preliminary Examination:
Pass or Fail Criterion (presence and absence of
required documents)

Sec. 32.2.1
Detailed Evaluation
Completeness of bid
Arithmetical corrections
Prices shall be inclusive of ALL taxes

LED EVALUATION OF
Sec. 32.1
No contact rule
BAC, thru Secretariat, may request for clarification of bid as long
as it is in writing

Sec. 32.2
Determine the LCB by:
Establishing correct calculated prices of bids
Ranking calculated total bid prices from lowest to highest

No Contact Rule

Reference: NPM 07-2013

The no contact rule applies only to those whose
bids are being evaluated by the BAC after passing
the preliminary examination.
No communication should be made by the bidders
until a decision to award a contract is made by the
BAC.
Bidders who waived their right to utilize the protest
mechanism
or
those
whose
request
for
reconsideration and/or protest were subsequently
denied are not covered by the prohibition under
S32.1 of RA 9184 IRR.

Nondiscretionary criteria shall be used, which shall

include consideration of:
completeness of bids
minor arithmetical corrections
Sec. 32.4
Completed within 7 cd from the deadline for receipt
of proposals Infrastructure Projects costing PhP 50M
and below within 5 cd

Discounts

Reference: NPM 154-12

Although discounts are not prohibited, it should be made
an integral part of the original bid such that the discount
and the bid price have the same validity period in order
for it to be considered for purposes of bid evaluation;
otherwise, the bid shall be evaluated sans the discount.
The discount proposed by the bidder after the submission,
receipt and opening of bids should not be considered by
the BAC as part of the bidders price. Acceptance of the
discount offered and made manifest only after the
deadline for submission of bids, and after the bids were
opened would constitute improvement or modification of
bids, which is prohibited under S26.1 of the IRR.

 Refrence:

NPM 17-2013
Discounts stated in the Bid Form allow bidders
to itemize the application of discounts that
are not yet reflected in the amounts specified in
its BOQ and detailed estimates vis--vis the
program of works, as there could be a situation
that the decision to offer a discount came long
after these amounts have been prepared,
finalized, and reflected in the bid documents,
and changing the entries may be too
cumbersome and time consuming for the bidder.
Discount offered in the Bid Form may be
accepted even though the financial documents
do not contain or indicate any reference to such
discount.

Sec. 32.3
In case of discrepancies, the ff. shall prevail:

words over figures

unit prices over total prices

bill of quantities over detailed estimate

Unless the ITB specifically allows partial bids, those not
providing all required items shall be considered nonresponsive

Placing no price is considered as nonresponsive

Specifying a 0 or - means it is offered for free

Form of Bid and

Performance Security

a) Cash or
cashiers/managers
10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC check

Amount
Bid Security
Performance Security
(% = ABC)
(% = Contract Price)

2%

5% (Goods

&Consulting)

c) Surety bond callable upon

demand 5% 30%
d) Combination of the
foregoing
Proportionate to share of form with respect
of security
Secs. 27 & 39.2

to the total amount

Sample Computation
Cash (60%)
Surety Bond (40%)
ABC
1,000,000
1,000,000
% Required
x .02
x .05
20,000
50,000
Share of form
x .60
x.40
Amount
12,000
20,000
Total:

32,000

st-Qualification
Post-qualification is the process of verifying,
validating and ascertaining all the statements made
and documents submitted by the bidder with the
lowest calculated bid (LCB), which includes
ascertaining the said bidders compliance with the
legal, financial and technical requirements of the
bid.
A bidder with the Lowest Calculated
Responsive Bid is one whose eligibility documents
had been validated and verified, and its compliance
with the legal, financial, and technical requirements
of the bid had been ascertained.

Sec. 34.2
Within 3 days from notice of LCB, submit the following
documents:
*
*
*

Latest income and business tax returns

Certificate of PhilGEPS registration
Other appropriate licenses and permit

Sec. 34.3
POST-QUALIFICATION
Verify, validate, ascertain all statements made and
documents submitted by LCB
Post-Qualification (Legal)
*To verify, validate, and ascertain licenses, certificates, permits, and
agreements submitted by the bidders required by law stated in the
Bidding Documents
*not in the consolidated file of blacklist

Technical requirements

-verification and validation:

* competence, experience of bidder and its personnel
* availability and commitment/capacities and operating
conditions of equipment, as well as performance of bidder
in ongoing contracts
* inspection & testing, after-sales and/or maintenance
capabilities (goods)
* sufficiency of the bid security as to type, amount, form &
wording, and validity period

Qualification
nical)
Sec. 34.3, b

1.Verification and validation of the bidders stated

competence and experience, and the competence
and experience of the bidders key personnel to be
assigned to the project
2.Verification of availability and commitment, and/or
inspection and testing for the required capacities and
operating conditions, of equipment units to be
owned/leased/under purchase by the bidder for use in the
contract under bidding

3. Verification and/or inspection and testing of the

goods/product, after-sales and/or maintenance
capabilities
4. Ascertainment of the sufficiency of the bid security
as to type, amount, form and wording, and validity
period

How about Joint Ventures?

All members of the JV are required to submit the
post-qualification requirements
These are legal eligibility requirements which should
be submitted by all members of the joint venture

Financial requirements:
To verify, validate and ascertain
1. the bid price proposal of the bidder, and
2. bidders NFCC computation
Sec. 34.8

- post-qualification process should be completed in not more than

7 cd
- may be extended by the HOPE to not more than 30 cd
Note: The BAC-TWG, after the conduct of post-qualification, shall then report
their evaluation to the BAC that the winning bidder with lowest calculated
bid passes all the criteria for post-qualification which the BAC
declares the LCB as the Lowest Calculated Responsive Bidder (LCRB) and
recommends to the HOPE. Sec. 34.4 of RIRR of RA

Preparation of BAC
Resolution
The

BAC Secretariat will prepare a BAC

Resolution to recommend the contract
to the LCRB for approval by the HOPE.

Post-Qualification: Requiring
Additional Documents

Reference: NPM 25-2013

PE may request for the submission of additional
documents from the bidder in support of the
information it has provided in the bidding documents.
However,
non-submission
of
the
additional
supporting documents requested cannot be a ground
for the bidders post-disqualification, as a bidder may
be post-disqualified only upon ascertainment,
validation, and verification of its non-compliance with
the legal, technical, and financial requirements of the
project as provided in the bidding documents.

Post-Qualification: EndUser Complaint

End-User

complaint is not in itself ground for

post-disqualification, unless the PE determines
that the bidder is not legally, technically and
financially capable to complete the project
based on such complaints.

Sec. 35
Failure of Bidding:
1. No bids are received;
2. All prospective bidders are declared ineligible;
3. All bids fail to comply with all the bid requirements or fail
post-qualification, or, in the case of consulting services, there is
no successful negotiation; or
4. The bidder with the Lowest Calculated Responsive
Bid/Highest Rated Responsive Bid refuses, without justifiable
cause, to accept the award of contract, and no award is made in
accordance with Section 40 of the Act and this IRR.

FAILURE OF BIDDING:

Mandatory review after each failed bidding

Based on findings
revise terms, conditions, specifications
adjust ABC, subject to required approvals
Sec. 53.1.1 the ABC cannot be increased by more than 20% of
the ABC for last failed bidding

Rebid, with readvertisement and/or reposting

Single Calculated and Responsive

Bid

Sec. 36
- considered for award subject to the following:
1. if after advertisement, only one prospective bidder
applies for eligibility check and meets the eligibility or
criteria after which it submits a bid which is responsive
to the bidding requirements;
2. if after advertisement, more than one prospective
bidder applies for eligibility requirements or criteria,
after which it submits a bid which is responsive to the
bidding requirements; or
3. if after the eligibility check, more than one bidder
meets the eligibility requirements, but only one bidder
submits a bid and its bid is responsive to the bidding
requirements

Notice of Award
In cases of Joint Ventures, potential partners have ten (10) CDs to enter into a valid JVA.

Note: Joint Venture partners shall also execute an agreement (Special Power of
Attorney) both signed by the parties duly notarized appointing either parties to
represent them in the joint venture undertakings. If it is a foreign partner, it must
be certified by the appropriate embassy or consulate in the Philippines
including the documents if they are in a foreign language.
Post Performance Security (Section 39)
- 10 CDs upon receipt of NOA

Contract Signing (Section 37.2)

Notice to Proceed
- 3 CDs from date of approval of contract

ARD OF CONTRACT
Award of contract conditioned on the following:
If JV, submission of JVA
If foreign-funded and stated in treaty, international License or executive
agreement, PCAB
Posting of Performance Security. This is to guarantee the faithful performance
by the winning bidder of its obligations under the contract in acc. with the bidding
documents prior to the signing of the contract, sec. 39 of RIRR.
Signing of Contract (within 10 cd)
Performance security is forfeited in the event it is established that the winning
bidder is in default in any of its obligations under the contract, sec.39.3.
It shall remain valid until issuance of the final Certificate of Acceptance. Sec.
39.4
It may be released after the issuance of the Certificate of Acceptance subject to
the following conditions: 1. no claims were filed against the contract awardee or
the surety company; 2. no claims for labor and materials filed against the
contractor; and3. other terms of the contract.

If required, approvals by higher authority

Note: 3 mos. - procurement process from opening
of bids up to award of contract or a shorter period
Contract shall be awarded to bidder with the LCRB
at its submitted price or total calculated bid price,
whichever is lower
Notice of Award (NOA) issued by the HOPE after approval
of BAC recommendation.
NOA posted within 3 cds from its issuance in the Philgeps
and procuring entity website and any conspicuous place
in the PEs premises.

Sec. 37.4
NOTICE TO PROCEED:
Issued to the successful bidder together with the copy
of the approved contract within 3 cd from date of approval.

Contract effectivity date should be provided in the NTP,

which should not be later than 7 cd from its issuance
BAC Secretariat must post a copy of the NTP and the
approved contract in the PhilGEPS or PEs website
within 15 cd from issuance of NTP

Performance
Security
Cash or cashiers/managers check issued by a Universal
or Commercial Bank.

Amount of Performance Security

(Equal to Percentage of the Total
Contract Price)

Goods and Consulting Services Five

percent (5%)
Infrastructure Projects Ten percent

Bank draft/guarantee or irrevocable letter of credit issued

(10%)
by a Universal or Commercial Bank: Provided, however,
that it shall be confirmed or authenticated by a Universal
or Commercial Bank, if issued by a foreign bank.

Surety bond callable upon demand issued by a surety or

insurance company duly certified by the Insurance
Commission as authorized to issue such security.

Any combination of the foregoing.

Thirty percent (30%)

Proportionate to share of form with

respect to total amount of security

AND PERFORMANCE
SECURITY)
Bidder has option to choose among acceptable forms.
Procuring entity may not limit options available to bidders.
In general, bank issued securities must be issued by a
universal or commercial bank.
However, in biddings conducted by LGUs, securities may be
issued by banks certified by BSP as authorized to issue said
instruments.

AND PERFORMANCE
SECURITY)
Sec. 39. Performance Security
Purpose: to guarantee the faithful performance by the winning bidder of its
obligations under the contract in acc. with the bidding documents
- post prior the signing of the contract
- remain valid until issuance of the final Certificate of Accepatance
Bidder has option to choose among acceptable forms.
Procuring entity may not limit options available to bidders.
In general, bank issued securities must be issued by a universal or commercial
bank.
However, in biddings conducted by LGUs, securities may be issued by banks

Sec. 40
Failure

to enter contract and post performance security:

Lowest

Calculated Responsive Bidder fails, refuses or is unable to

submit documents (in the post-qualification process), or enters into
contract, or post performance security bid security forfeited and
appropriate sanctions imposed except where such failure, refusal or
inability not thru fault of the bidder

Failure,

refusal or inability of the Lowest Calculated Responsive Bidder

to submit documents or enter contract and post performance
security --- disqualify said bidder and complete the postdisqualification process on 2nd LCB

Failure,

refusal or inability of the single calculated responsive

bidder to submit documents or enter contract and post
performance security disqualify said bidder and declare failure
of bidding and conduct rebidding with advertisement and/or
posting

WARRANTY
SECURITY
Form of Warranty Security

Amount of Warranty
Security
(Equal to Percentage of the
Total
Contract
Price)

Cash or Letter of Credit issued by a

Universal or Commercial Bank: Provided,
however, that the LC shall be confirmed or
authenticated by a Universal or Commercial
Bank, if issued by a foreign bank.
Bank guarantee confirmed by a Universal
or Commercial Bank.
Surety bond callable upon demand issued
by GSIS or a surety or insurance company
duly certified by the Insurance Commission
as authorized to issue such
security.

Five percent (5%)

Ten percent (10%)

Thirty percent (30%)

Sec. 62
Warranty Security (for GOODS only)
Purpose to assure that manufacturing defects are
corrected by the supplier
Goods
Minimum

three (3) months (expendable): Minimum one (1)

year (non-expendable)

Obligation

for the warranty covered by Ten percent (10%)

retention money or special bank guarantee 10% of the total
contract price

When

is the amount released? After the lapse of the

warranty period or, in case of Expendable Supplies, after
consumption, provided delivered supplies are free from
patent and latent defects and all conditions imposed under
the contract are fully met

Contract Implementation: Warranty

Security for Janitorial Services
Reference: NPM 64-2013

Interpretation and application of the clauses of the PBDs

are to be read together and in accordance with RA 9184
and its IRR. GCC Clauses 17.1 to 17.5, should be read in
consonance with sec. 62.1 of the IRR of RA 9184

The requirement for the posting of warranty security under

sec. 62.1 of the IRR of RA 9184 applies only in the case of
contracts involving expendable and non-expendable
supplies. It excludes services from its application.

Thank
You
for
Listening!

Onofre B. Llanes
Chief Goods and
Services Division

ADVANCE PAYMENT FOR GOODS

Made only after prior approval of the President
Single advance payment not to exceed 50% of the contract
for the following services:
Hotel and restaurant services
Use of conference/seminar and exhibit areas
Lease of office space
Advance payment not to exceed 15% allowed to address
contingencies arising from natural or man-made calamities in
areas where state of calamity has
been declared
Advance payment not to exceed 15% allowed and paid within
60 days from signing of contract upon submission of a claim
and an irrevocable letter of credit or bank guarantee issued
by Universal or Commercial bank

DOMESTIC PREFERENCE:

Applicable only for goods

Applies where the lowest bid has a foreign component (foreign

bid/entity) and the next lowest bid has a domestic component
(domestic bid/entity)
Requires PE to give preference to domestic entities and
domestic bid (to materials and supplies produced, made, and
manufactured in the Philippines)
Domestic entities can only claim preference if certified by SEC
(partnerships, corporations) / DTI (sole proprietorship) / CDA
(cooperatives)

Domestic bidder can only claim preference if certified by DTI

DEFINITIONS:
Domestic entities (Sec. 5 [k])
75% Filipino
Habitually established in business and engaged in
manufacture or sale of product to be bid
In existence for at least 5 consecutive years

the

Domestic bidder (Sec. 5 [j])

Any person or entity
Offering articles/materials/supplies
If unmanufactured, grown or produced in the Philippines
If manufactured, substantially from those grown or
produced in the Philippines

st-Qualification

st-Qualification