Procurement Law RA 9184

PROCUREMENT OF
GOODS
Governing Principles
(Sec 3 of Revised IRR of RA 9184)
Public Monitoring
Accountability
Competetiveness
Transparency
Streamlined Process
Essence of PUBLIC
MONITORING
1.Allows
public involvement of qualified

and eligible Civil Society Organizations
(NGOs, academic institutions, and
religious groups) to observe and
monitor the procurement process until
contract implementation.
2.Increased
transparency
of
procurement transactions.
3
ACCOUNTABILITY OF
PUBLIC OFFICIALS
Pertinent laws and the prescribed
procedures must be faithfully
complied with in the discharge of
functions in all stages of the
procurement process as well as
the implementation of contracts.
4
Private
parties
that
deal
with
How to ensure
COMPETITIVENESS
As a rule, procurement
must
be
conducted
through
competitive
bidding process, unless
otherwise provided under
GPRA, its IRR and this
Manual,
then
the
Alternative Methods of
5
How to ensure
TRANSPARENCY
1.Posting
Procuring
website,
2.Posting
PhilGEPS
in
the
Entitys
in
the
website,
6
How to ensure
TRANSPARENCY
3.
Posting in a conspicuous
place
within
the
premises of the PE is
required
for
all
procurements.
7
Essence of STREAMLINED
PROCUREMENT SYSTEM
1.Uniform
application to
government
procurements.
8
all
Essence of STREAMLINED
PROCUREMENT SYSTEM
2. Simple and adaptable to
advances
in
modern
technology in order to ensure
an effective and efficient
method of procurement.
GPPB conducts a periodic review
of government procurement
procedures,
and
whenever
9
Definition of Terms
Procurement - refers to the acquisition of goods,
consulting services, and the contracting for
infrastructure projects by procuring entity. Procurement
shall also include the lease of goods and real estate.
(Sec. 5(aa), Revised IRR, R.A. 9184)
Definition of Terms
With respect to real property, its procurement shall be
governed by the provision of RA No. 8974 An Act to
Facilitate the Acquisition of Right-of-Way Site or
Location for National Government Infrastructure
Projects and for other Purposes, and other applicable
laws, rules and regulations.
GOODS
Sec 5 (r) of Revised IRR of RA 9184
Refer to
All
items,
supplies
and
materials
Including
general support
services
Which may be needed in the
project or activity, whether in
the nature of equipment,
12
GOODS
1.repair
and maintenance of
equipment and furniture
2.trucking,
hauling,
janitorial and security and
other related or analogous
services.
EXCEPT: consulting services
and infrastructure projects
13
Scope and Coverage

This IRR shall not apply to the following:
Procurement
for
goods,
infrastructure
projects,
and
consulting services funded from
Foreign Grants covered by R.A.
8182, as amended by R.A. 8555
14
Scope and Coverage
This IRR shall apply the :

Consignment
(Section 7.3.2
of Revised IRR of RA 9184)
15
Scope and Coverage

Disposal
of
properties;
government
1.
Commission
on
Audit
Circular No. 86-264
2. National Budget Circular No.
425
16
RA
9184 and its IRR will not

apply in the hiring of
individual personnel under
Job Order or Contract of
Service
METHOD OF PROCUREMENT
As
a general rule, all procurement

should be through public bidding
Capacity Development Division
18
Procurement
Methods
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
19
Procurement Methods
20
8/31/16
Pre-Procurement Conference
Purpose: Determine readiness to proceed
with the bidding process
Conducted before advertisement/posting of
the Invitation to Bid
Attended by the following:

a.BAC
b.BAC Secretariat
c.TWG
d.Consultants
e.End-user unit
8/31/16
II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID
Importance:
Signals
the start of the bidding process.

Procurement process should be made within 3
months or a shorter period to be determined by the
PE
concerned
starting
from
posting
and
advertisement until awarding of contract. (Sec. 38.1
IRR)
Signals
the availability of the bidding documents to

the prospective bidders. (if not mentioned in the
Invitation to Bid) (Sec. 17.3 IRR)
24
8/31/16
II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID

At
least once in one (1) newspaper of general

nationwide circulation, which has been regularly
published for at least two (2) years before
advertisement date. Not required for projects with
ABC of 2M and below.
Posted
continuously for 7 calendar days
PhilGEPS
website of the PE, if any.
At any conspicuous place in the premises of the PE.
26
II. ADVERTISEMENT/POSTING OF THE

INVITATION TO BID
(Sec 21.2 of Revised IRR
of RA ABC
9184)
ABC Above
2M and
2M
Newspaper of General
Nationwide Circulation
PhilGEPS website
below
PEs Website, if available
Conspicuous Place
Website prescribed by the

foreign government/foreign
or international funding
institution, in case of
foreign funded procurement
27
28
Penalty for Non-Posting

E.O. No. 662 dated 27 Sept. 2007, as amended by E.O.
No. 662-A & 662-B, reiterated posting of all procurement
opportunities and awards, and other related information
in the PhilGEPS bulletin board;
Failure to post the Invitation to Bid in the PhilGEPS will
hold accountable officials, particularly the BAC, liable
for dereliction of duty and conduct grossly prejudicial to
the best interest of the service, without prejudice to
other charges, whether administrative, civil or criminal,
that may be filed under appropriate laws and regulation.
8/31/16
PREPARATION OF
BIDDING DOCUMENTS
(by the BAC assisted by BAC Sec)
The Bidding Document shall

include the following:
Approved Budget for the Contra
ct
Invitation to Bid
Instructions to Bidders
Bid Data Sheet
General Conditions of Contract
Special Conditions of Contract
Schedule of Requirements
Technical Specifications
Bidding Forms
Preparation of Bidding Documents
Bidding Documents must be

available on the same date
the advertisement and/or
posting of the Invitation to
Bid is made

Bidding Documents shall be posted at
the PhilGEPS website and the
Procuring Entitys website wherein
prospective bidders may download,
provided that, bidders shall pay the
fee for the Bidding Documents on or
before submission of their bids

Bidders will be asked to pay for the Bidding
Documents to recover the cost of its
preparation and development;
BAC shall issue the bidding document upon
payment of the standard rate, as follows:
Approved Budget Maximum cost of

for the Contract Bidding Document
Php 500,000.00 &
Below
> 500,000.00 to 1M
> 1M to 5M
> 5M to 10M
>10M to 50M
>50M to 500M
>500M
Php 500.00
Php
Php
Php
Php
Php
Php
1,000.00
5,000.00
10,000.00
25,000.00
50,000.00
75,000.00
Reference to Brand Names

Section
18 of RA 9184
Provision/s for No brand
names ruling
The law prohibits us from
naming the brand of the
items to be purchased
It
is understood that
indicating brand
names in the PRs/
APPs/PPMPs is not
allowed under the
procurement law.
Question?
Do
we indicate the specs/

technical requirements for items
such as printer inks, spare parts
for motor vehicles which are
brand-specific (e.g., HP printers
can only be filled by HP inks/
cartridges)?
These
are exception to the rules.

Even in the Philgeps catalogue, Ink
printers are branded because as you
have mentioned you cannot refill HP
printers with Cannon ink and so as
with refills for sign pens.
8/31/16
Pre-Bid Conference
(Sec 22 of Revised IRR)
ABC of 1M or more;
Mandatory for projects with
Held at least
Attendance of the bidders shall not be mandatory.

However, at the option of procuring entity, only bidders
who purchased bid documents are allowed to attend or ask
questions
12cd before deadline for bid submission.
Pre-Bid Conference (Sec 22 of Revised IRR)
Discuss:
Eligibility requirements
Technical and financial components of the contract to
be bid
Clarify and explain any of the requirements,

terms,
conditions,
and
specifications
stipulated in the bidding documents.
Request for clarification of the bidding
documents by the bidder must be in writing
and submitted to the BAC at least 10 CD
before deadline set for submission and
receipt of bids.
Pre-Bid Conference (Sec 22 of Revised IRR)

The BAC shall respond to the request by
issuing Supplemental Bid Bulletin.
Supplemental Bid Bulletin
Statements made in prebid shall not modify the

terms
of
bidding
documents unless issued as
a
supplemental/bid
bulletin

issued by BAC should at least 7
c.d. before deadline for
submission of bids; posted in
PhilGEPS
and
agencys
website, if any;
Bidders who have submitted bids

before
issuance
of
Supplemental/ Bid Bulletin to be
informed in writing and allowed
to modify or withdraw their
respective bids.

In the event no supplemental/bid
bulletin was issued and posted, 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. (NPM 24-2013)
SAMPLE BID BULLETIN
49
Late Issuance of Supplemental/Bid

Bulletin
In light of the mandatory directive to issue
Supplemental/Bid Bulletin at least 7 CD before the
deadline for the submission and receipt of bids per
Section 22.5 of the IRR, we are of the view that
Supplemental/Bid Bulletins issued by the BAC after the
deadline of the submission and receipt of bids will be
considered invalid and ineffective in modifying the Bidding
Documents. If the BAC decides to carry the modifications
made by an invalid Supplemental/Bid Bulletin in
proceeding with the procurement activity, the BAC may
be considered to have failed in following with the
prescribed bidding procedures.
Modification and Withdrawal of Bids

A bidder may modify its bid, provided it
is done before the deadline for the
submission and receipt of bids;
A bidder modifying his bid will only be
allowed to send another bid equally
sealed, properly identified, linked to the
original and marked as a modification;
Modification and Withdrawal of Bids

Bid modifications received after the deadline shall
not be considered and shall be returned to the bidder
unopened;
A bidder may withdraw his bid before the deadline
for the receipt of bids;
The bidder who withdraws its bid shall not be
permitted to submit another bid, directly or
indirectly, for the same contract.
Non-posting of Supplemental Bid Bulletin

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.
8/31/16
Submission and Receipt of

Bids
IV. SUBMISSION AND

RECEIPT OF BIDS
Two-Envelope System
1st
Envelope
Eligibility
Requirements
and
Technical
Component
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.
56
IV. SUBMISSION AND

RECEIPT OF BIDS
The
submission of Letter of Intent (LOI) is

no longer required per GPPB Resolution
No. 27-2012 on 10 September 2013.
NPM 101-2013
IV. SUBMISSION AND

RECEIPT
OF
Whether
a procuring entity
couldBIDS
validly and legally refuse to accept a
sealed bid containing an accomplished Request for Quotation (RFQ) from
a qualified supplier.
Procuring entity cannot validly and legally

refuse to accept a bid submitted before
the deadline for the submission indicated
the Invitation to Bid or Request for
Quotation.
This shall open a ground for the aggrieved

bidder to file a request for reconsideration
and, subsequently, protest as provided in
Section 55 of RA 9184 and its IRR, without
58
8/31/16
V. OPENING AND EVALUATION OF 1ST

ENVELOPE
CONTENTS:
1.
Eligibility requirements (Sec 23.1)
2.
Bid Security
3.
Technical specifications
4. Omnibus sworn statement

Non-inclusion
in blacklist
Authenticity of documents
Verification authority
60
V. OPENING AND EVALUATION OF 1ST

ENVELOPE
CONTENTS (continuation):
Omnibus Sworn Statement

Signatorys authority
4.
Disclosure
of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly)
any commission, amount, fee, or any
form of consideration in relation to
any procurement project or activity
61
Eligibility Requirements
Class A Documents
SEC/DTI/CDA Registration Certificates;
Class A Documents
Mayors Permit
Class A Documents
Tax clearance per Executive Order
398, series of 2005, as finally
reviewed and approved by the BIR;
(GPPB Resolution No.21-2013)
Technical Documents
Statement of the prospective bidder

of all its ongoing government and
private
contracts
,
including
contracts awarded but not yet
started, if any whether similar or
not similar in nature and complexity
to the contract to be bid; and
Financial Documents
Net Financial Contracting Capacity;
and Audited Financial Statement
Class B Documents
Joint Venture Agreement or notarized statement from the
partners that they will enter into joint venture if awarded the
contract.
VI. OPENING AND

EVALUATION OF 2ND
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
68
V. OPENING AND EVALUATION

OF 1ST ENVELOPE
Section 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. (NPM 54-2013)
69
MAYORS
PERMIT
Mayors Permit allows an entity to legally
perform the requirements and obligations of the
project and the resultant contract.
It is therefore necessary for the BAC to
determine whether the Mayors Permit for
construction business issued to the construction
company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 362013)
70
MAYORS PERMIT
GPPB
Circular 01-2015 dated

January 30, 2015 regarding
submission of Mayors Permit as
legal eligibility requirements
amending Section 23.1
Acceptability
of the recently
expired Mayors Permit,
together with the Official
Receipt for renewal, as legal
eligibility requirements
Provided
that the current and

valid Mayors Permit, as renewed,
will be submitted or presented by
the bidder with the LCRB as a
condition to the award of
contract.
TAX
CLEARANCE
Tax Clearance is now included as part of the
Class A legal eligibility documents to be
submitted during the opening of bids. (GPPB
Resolution No.21-2013)
74
TAX
CLEARANCE
EO 398 specifically requires the submission of

Tax Clearance issued by the BIR. It refers to the
clearance issued by the Collection Enforcement
Division of BIR attesting that the bidder has no
outstanding Final Assessment Notice and/or
delinquent account.
Hence, submission of tax clearance of the

previous year and application for tax clearance
cannot be considered as compliance. (NPM 022013)
75
TAX CLEARANCE
Submission of BIR receipt for renewal of Tax

Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not
allowed under Section 34.2 of the IRR of RA 9184.
The Tax Clearance must be valid and existing at

the time it is submitted to BAC and must be
submitted within three (3) calendar days from
receipt of the notice from the BAC that the bidder
has the LCB. Failure to comply with the
requirement for the submission of a valid Tax
Clearance
shall
be
a
ground
for
postdisqualification of the bidder. (NPM 48-2013)
76
TAX
CLEARANCE
Submission of Provisionary Tax Clearance is
not considered as sufficient compliance for
bidding purposes. (GPPB Resolution No. 332013)
77
CREDIT LINE
COMMITMENT
Credit Line Commitment shall
no longer be accepted as an
alternative to the prospective
bidders computation of Net
Financial Contracting Capacity
(NFCC). (Resolution 20-2013)
78
ELIGIBILITY REQUIREMENTS
FOR FOREIGN BIDDERS
In the case of foreign bidders, the

foregoing eligibility requirements
under Class A Documents may
be submitted:
Equivalent
country
documents issued by
Accompanied
by
English
79
FOR FOREIGN BIDDERS
Foreign
bidders may substitute eligibility

documentary requirements with the appropriate
equivalent documents in their country.
Only
upon
actual
determination
and
confirmation of this equivalence through post
qualification by the BAC may it be categorically
resolved that the foreign documents submitted
are acceptable substitutes of the required
eligibility documents pursuant to 23.2 of the
IRR. (NPM 42-2013)
80
FOR FOREIGN BIDDERS
TAX CLEARANCE FOR FOREIGN BIDDERS
A Delinquency Verification Certificate issued to NonResident Foreign Corporations (NRFC)/NonResident Aliens Not Engaged in Trade or Business
(NRANETB) pursuant to BIR RR 3-2005, attesting
to the fact that the taxpayer has no outstanding
Final Assessment Notice and/or delinquent
account may be submitted as a form of Tax
Clearance required under Sec 34.2 of the IRR.
(NPM 02-2013)
81
ELIGIBILITY REQUIREMENTS FOR

GOVT. CORPORATE ENTITIES
Government corporate
entities may be eligible to
participate only if they can
establish that they:
1.are
legally and financially

autonomous,
2.operate under commercial
law, and
82
FOR JOINT VENTURES
1.WITH
AN EXISTING JOINT VENTURE:

submission of a valid joint venture
agreement
2.WITHOUT
AN
EXISTING
JOINT
VENTURE: submission by each of the
potential joint venture members of a duly
notarized statement stating that they will
enter into and abide by the provisions of
the joint venture in case their bid is
successful.
83
FOR JOINT VENTURES
SUBMISSION OF ELIGIBILITY REQUIREMENTS:
All
co-venturers of the joint venture

should submit legal eligibility
documents.
Any
of the co-venturers can submit

technical and financial eligibility
requirements
84
Financial Documents
The
prospective
bidders audited
financial statements, showing, among
others, the prospective bidders total
current assets and liabilities stamped
received
by the BIR or its duly

accredited and authorized institutions,
for the preceding calendar year which
should not be earlier than two (2) years
from the date of bid submission.
Issues Concern:Audited Financial

Statements
Whether
financial
statements
audited
by
Certified Public Accountants (CPAs) not

accredited by the Board of Accountancy (BOA)
can be considered compliant with the
requirement for an audited financial statement
as an eligibility requirement under Section 23.1
of the revised Implementing Rules and
Regulations (IRR) of Republic Act (RA) 9184.
Issues Concern:Audited Financial

Statements
A reading of Sections 26 and 28 of the IRR of RA 9298 reveals that no
person shall engage in the practice of public accountancy unless he/she
is a CPA and has received a certificate of accreditation from the BOA.
Since the audit of financial statement for purposes of participation in
public bidding can be considered a "practice of public accountancy"
under Section 4(a) of RA 9298, CPAs preparing such Audited Financial
Statement (AFS) must be accredited by the BOA.
Based on the foregoing, it is our considered view that
financial statements audited by CPAs not accredited by
the BOA cannot be considered for purposes of Sections
23.1(vi) and 24.1(vi) of the revised IRR of RA 9184.
Republic Act No. 9298
May 13, 2004
Philippine Accountancy Act

AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN
THE PHILIPPINES
NFCC COMPUTATION
Net Financial Contracting Capacity (NFCC) =
(current assets - current liabilities) (K) MINUS

(outstanding, uncompleted portions under
ongoing contracts + contracts awarded but
not yet started)
(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)
* The values of the bidders current assets and current liabilities
shall be based on the data submitted to the BIR, through its
Electronic Filing and Payment System (EFPS)
89
Whether the NFCC of a bidder

participating in the procurement of
several lots should be at least equal to
the ABC of all the lots to which it
participated in.
The NFCC, as a financial

eligibility requirement under
Sections 23.5.1.4 and 23.5.2.6
is approached differently
because the eligibility criteria
for compliance is the same
for all the lots, i.e., that the
NFCC is at least equal to the
ABC to be bid out.
The NFCC is intended as a

financial
eligibility
requirement in order to
determine
whether
the
participating
bidder
is
financially capable to carry
out the subject matter of the
contract to be awarded.
Thus, if a procuring entity divides its

procurement activity by lots, and each of
these lots have their own specific ABCs
and
are
treated
as
separate
procurements,
consequently,
the
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 that it is financially
capable of carrying out the contractual
obligations required by the lots to which
it participated in. (NPM 76-2013)
Bidding Documents:
Statement of Ongoing Contracts
Bidder should submit a statement of all its on-going government

and private contracts within the relevant period stated in the Bid
Documents, including contracts awarded but not yet started, if
any, as part of the Class A Eligibility Documents.
Additional documentary proof to support the statement of ongoing contracts such as contracts and notices to proceed need not
be attached. However, the BAC may request for additional proof
(e.g. copies of contracts and notices to proceed) during postqualification in order to verify, validate and ascertain all
statements made and documents submitted by the bidder.
NPM 86-2013
94
Bidding Documents:
Statement of Ongoing Contracts
Projects
where a NOA has been issued, but for which no contract

has been signed yet, should be included in the statement of ongoing
government and private contracts because these are already
considered awarded contracts.
NPM 111-2013
95
ALTERNATIVE BIDS
Alternative bid is an offer made by a Bidder in

addition or as a substitute to its original bid which may
be included as part of its original bid or submitted
separately therewith for purposes of bidding.
NOTE:
Alternative bids shall

be rejected.
96
BID SECURITY
Procuring entity shall indicate in the Bidding

Documents at least 2 acceptable forms of
bid security, one of which should be the Bid
Securing Declaration.
In general, bank issued securities must be

issued by a universal or commercial bank
Surety Bonds must be accompanied by

certification from Insurance Commission that
issuer is authorized to issue such security
97
BID SECURITY
Amount
Form of Bid Security
a) Cash or
cashiers/manager
s check
b) Bank
guarantee/draft or
Irrevocable LC
c) Surety bond
callable upon
demand
d) Combination of
the foregoing
e) Bid Securing
Bid Security
(% = ABC)
2%
5%
Proportionate to share of form
with respect to the total amount
of security
98
No percentage required
Bid Validity
BID VALIDITY (Sec 28.2 of Revised
IRR)
120 CD
99
BID SECURING DECLARATION

(Appendix 24 Guidelines on the Use of Bid
Securing Declaration)
Bid Securing Declaration
an additional form of bid security
A document/undertaking signed by the

bidder
committing
to
pay
the
corresponding fine and be suspended
for a period of time from being
qualified to participate in any government
activity in the event of violation of any of
the conditions stated therein.
100
BID SECURING DECLARATION
Penalties
Automatic blacklisting for
procurement activities, and
-
years
in
ALL
government
Payment of fine
For multiple bidders: 2% of the ABC or difference
between the evaluated bid prices of LCRB/HRB and
the bidder with the next LCRB/HRB, and so on,
whichever is higher.
In case bidder is the LCRB/HRB, the amount shall
be 2% of the ABC or difference between the
evaluated bid price and ABC, whichever is higher.
For a single bidder: 2% of the ABC or difference
between the evaluated bid price and ABC,
whichever is higher.
101
Absence of Quorum
(BAC) during the
Opening of
Financial Bid
Absent
such quorum, any decision

rendered by the Chairman and/or ViceChairman, acting alone or in concert, is
regarded as unofficial and cannot be
attributed to the collegial action of the
BAC. It follows that any decision
rendered during this stage, regardless of
the decision to move the date of
negotiation is an act that was done
outside the legal parameters set by RA
9184 and its IRR.
OBSERVERS
Stages
of procure
ment that observe
rs be invited..
Inall
stages of the
procurement process
as per section 13.
WHO ARE THE 3

OBSERVERS
UNDER SEC. 13?
Observers
1. COA representative
2. duly recognized private

group in a sector or discipline
relevant to the procurement at
hand and (PICPA or PICE)
3. coming from the NGO
Whether the Bids and

Awards Committee (BAC) is
required to invite
Observers during the postqualification stage of the
procurement process.
The BAC is mandated to

invite Observers in all stages
of the procurement process,
including the postqualification stage, x x x.
Whether the presence

of Observers may be
limited to the Opening
of Bids by the BAC.
YES OR NO?
NO, WHY?
Because to confine the

invitation of observers only
to the Opening of Bids
would limit transparency in
the procurement process.
Whether the attendance of COA's

representatives as Observers is not
mandatory, and whether it will not
nullify the proceedings of the Bids
and Awards Committee (BAC).
Absence
of Observers
will not nullify the BAC
proceedings, provided
that they have been
duly invited in writing.
If any of the Observers fail to

attend the bidding on the
indicated schedule, the
procurement process should
continue since the absence of
any of the observers is not a
ground to delay the proceedings.
But,
in case the PE fails to

properly invite and/or inform
the Observers of the planned
procurement process, what
happened to the bidding
process?
The
bidding could not

proceed without the
PE satisfying the
requirement.
8/31/16
VII. DETAILED
EVALUATION
OF BIDS
Purpose is to determine the Lowest

Calculated Bid (LCB), by:
1. Establishing correct calculated prices of
bids; and
2. Ranking calculated total bid prices from
lowest to highest
A non-discretionary criterion shall be used,

which shall include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections
119
VII. DETAILED EVALUATION

OF BIDS
No
Contact
Rule
prohibition
on
communication w/ bidders from bid evaluation
until award of contract.
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 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
120
subsequently denied are not covered by the
What stage of the procurement process should the no-contact

rule apply.
Reference to Section 32.1 and consideration of the rationale behind the

policy dictate that the prohibition attaches at the bid
evaluation
stage, which commences immediately after the preliminary examination

of bids, and ends
Award.
upon the issuance of the Notice of
It is our opinion that this prohibition (Section

32.3 of the IRR-A of R.A. 9184 or the "no
contact rule") is absolute and covers all kinds
of information. The rationale of the "no contact
rule" is to erase any opportunity for
bidders to influence or collude with

employees or officials of the
procuring entity. Hence, it does not
distinguish between the types of
information received.
VII. DETAILED
EVALUATION
OF BIDS
Bid Evaluation shall not be more than 7 cd.
In case of discrepancies, the ff. shall prevail:

words over figures
unit prices over total prices
actual sum of prices over total price
bill of quantities over detailed estimates
Section 32.2.3(c) of the IRR states that

where there is a discrepancy between the
stated total price and the actual sum of
prices of component items, the latter shall
prevail. (NPM 51-2013)
123
VII. DETAILED
EVALUATION
OF BIDS
Unless the ITB specifically allows partial bids,

those not providing all required items shall be
considered non-responsive
Placing no price is considered as non-responsive
Specifying a 0 or - means it is offered for free
124
8/31/16
VIII. POST-QUALIFICATION
To determine whether bidder with LCB complies

with and is responsive to all requirements and
conditions of eligibility and the bidding of the
contract to be declared the Lowest
Calculated and Responsive Bid (LCRB)
A non-discretionary pass/fail criterion shall be

used to Verify, Validate and Ascertain all
statements
and
documents
(licenses,
certificates, etc.)
To be accomplished not more than 7 c.d. from

determination of LCB. (Exceptional cases not to
exceed 30 c.d.)
126
VIII. POST-QUALIFICATION
BAC will notify the Bidder with the Lowest

Calculated Bid that it was determined as such.
Within 3 c.d. from receipt of Notice, submit the ff:

1.
Latest Income and Business Tax Returns;
2.
Certificate of PhilGEPS Registration; and,
3.
Other appropriate Licenses and permits

required by law and stated in the Bidding
Documents.
127
VIII. POSTQUALIFICATION
BAC shall recommend award of contract to the

LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price,
whichever is lower.
In case of approval by HOPE, Notice of Award

should be IMMEDIATELY issued by HOPE to the
LCRB. (HOPE has 7 days to decide w/n to issue
NOA)
128
Whether a Procuring Entity (PE) may validly accept the post-qualification documentary
requirements enumerated under Section 34.2 of the revised Implementing Rules and
Regulations (IRR) of Republic Act (RA) No. 9184 from the bidder with Lowest
Calculated Bid (LCB) submitted beyond the three-day reglementary period, in cases
when delay is due not to its fault but to the fault of the issuing government entity.
The three (3) calendar

day
period
under
Section 34.2 of the
IRR is mandatory and
should
not
be
extended.
In case PE accepts the post-qualification

documentary requirements beyond the
reglementary period, it must show that there
is a compelling, sufficient, valid, reasonable,
and justifiable cause for such extension.
Such valid justification,

however, will only free
officials
from
penal
sanction or liability, but
not
from
applicable
administrative and civil
sanctions
or
liabilities
under existing laws, rules
VIII. POSTQUALIFICATION
Whether the XYZ BAC could validly

declare a bidder post-disqualified
for its refusal to submit an
Affidavit declaring that they will
deliver genuine and authentic
products and disclosing its source.
132
XYZ-BAC cannot post-disqualify PVIC for noncompliance with the submission of the requested
Affidavit attesting to the genuineness and
authenticity of the goods it will deliver and
disclosing its source. However, as part of postqualification, XYZ Agency can validly inspect and
test the products that PVIC proposes to deliver visa-vis the legal, technical and financial requirements
provided for in the bidding documents, to determine
its compliance, and post-disqualify PVIC if it fails to
meet such requirements.
8/31/16
IX. AWARD OF
CONTRACT
Contract shall be awarded to the bidder with the

Lowest Calculated and Responsive Bid (LCRB) at
its submitted price or total calculated bid price,
whichever is lower
Notice of Award (NOA) is issued by the HOPE
NGAs and LGUs 7 cd

GOCCs and GFIs 15 cd
135
IX. AWARD OF
CONTRACT
NOA
is subject to the following conditions:

If joint venture, submission of JVA
If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
Posting of Performance Security
Signing of Contract (within 10 cd)
If required, approvals by higher authority
PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS
136
PERFORMANCE
SECURITY
Posted
by winning bidder upon signing of contract

to guarantee performance of obligation, in
such form and amount specified in the Bidding
Documents.
EFFECTS OF FAILURE TO POST:
1.Ground for disqualification
2.Next-ranked
LCRB
shall
undertake
postdisqualification
3.Bid security shall be forfeited without prejudice to
the imposition of sanctions
137
PERFORMANCE
SECURITY
Submission
by the winning bidder of

a Performance Security in the form
of a personal check after the signing
of the contract could be considered
as a failure to post the Performance
Security in the required form under
Section 39.2 of the IRR and in the
required period for posting under
Section 37.1.4(b) of the IRR.
138
PERFORMANCE
SECURITY
Form of Performance
Security
a) Cash or
cashiers/managers
check
b) Bank guarantee/draft
or Irrevocable LC
c) Surety bond callable
upon demand
d) Any Combination of
the foregoing
Amount
Performance Security
(% equal to the Contract Price)
5% (Goods ) & Consulting services

10% (Infra)
30%
Proportionate to share of form with
respect to the total amount of
security
139
RESERVATION
CLAUSE
HOPE
reserves the right to:
Reject any and all bids;
Declare a failure of bidding;
Not award the contract.
GROUNDS:
1.
Prima facie evidence of collusion;
2.
BAC is found to have failed in following the prescribed bidding procedures;
3.
For justifiable reasons, the award of contract will not redound to the
benefit of the Government:
Physical
and economic conditions have significantly changed;
Project
is no longer necessary
Source
of funds for the project has been withdrawn/reduced.

140
Whether the payment of Performance Security through a personal check

is one of the grounds to blacklist a winning bidder based on Section 4.1.5
of the Uniform Guidelines for Blacklisting of Manufacturers, Suppliers,
Distributors, Contractors and Consultants (Guidelines).
Section 4.1.5 of the Guidelines provides that the

refusal or failure of a contractor to post the required
Performance Security within the prescribed period is
one of the grounds for blacklisting. The aforesaid
provision thus considers two situations - (1) Refusal
to post the required Performance Security, or (2)
Failure to post the required Performance Security.
Failure to post denotes the inability to post the
Performance Security in the required form and in
accordance with the corresponding percentages
indicated in Section 39.2 of the IRR of RA 9184.
Hence, the submission by RJIR of a Performance
Security in the form of a personal check after the
signing of the contract could be considered as a
failure to post the required Performance Security.
8/31/16
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 should post a copy of the NTP

and the approved contract in the PhilGEPS or
PEs website within 15 cd from issuance of NTP
Present all modes of procurement
144
Whether posting of the

Notice of Award and Notice
to Proceed in the PhilGEPS
website, agency website and
in conspicuous place within
the agency premises are
mandatory. Yes or No?
(Section 37.1.6 of RA 9184)
Yes
(Section 37.1.6 of RA 9184)
"the BAC, through the Secretariat, shall post,

within three (3) calendar days from its
issuance, the Notice of Award and Notice to
Proceed in the
PhilGEPS
the website of the procuring entity, if any,
and
any conspicuous place in the premises of
the procuring entity."
LIQUIDATED DAMAGES
Whichever
is convenient to the procuring

entity, amount shall be deducted from:
1. any money due or which may become
due to the supplier, or
2. collected
from
any
securities
or
warranties posted by the supplier,
If
sum of liquidated damages reach 10% of

the
contract
amount,
PE
shall
automatically rescind the contract.
148
ADVANCE PAYMENT
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
149
ADVANCE
PAYMENT
For goods, 15% of the contract price

shall be paid within 60 days from
signing
of
contract
and
upon
submission of a claim and a bank
guarantee. (Amended by M.O. 15,
series of 2011)
NOTE: Progress payments shall first

be charged against the advance
150
DISCLOSURE OF
RELATIONS
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

project management office
Project
consultants
151
or
Warranty (Sec 62 of
the IRR)
For
procurement of goods
Purpose: to assure that manufacturing defects shall
be corrected by the supplier
Expendable supplies: warranty security shall be
required from contract awardee for a minimum period
of 3 months
Non-expendable supplies: warranty security shall be
required from contract awardee for a minimum period
of 1 year
warranty shall be covered by either
retention money = 10% of every progress payment or
special bank guarantee = 10% of total contract price
152
Warranty (Sec 62 of
the IRR) continuation
For
procurement of goods
Warranty security shall be released:
after the lapse of warranty period
after consumption in case of expendable

supplies
153
ALTERNATIVE
METHODS
OF
PROCUREMENT
154
PROCUREMENT STANDARD
GENERAL RULE
Procuring Entities shall adopt public bidding as the
general mode of procurement.
EXCEPTION
Alternative methods shall be resorted only:
1.
2.
3.
4.
In highly exceptional case

To promote economy and efficiency
Justified by conditions specified in IRR
GPPB approval as required under EO 423, S.
2005 (as amended)
155
Executive Order No. 423, s. 2005

Signed onApril 30, 2005
Section 4.Approval of
Government Contracts Entered
Into Through Alternative Methods
of Procurement.
8/31/16
.For
Government Contracts Involving

An Amount Of At Least Five Hundred
Million Pesos (P500 Million).
An opinion from the Government
Procurement Policy Board (GPPB) that said
Government contract falls within the
exceptions from public bidding
-
- Approval from the Director-General of

NEDA to proceed with a specific
alternative method of procurement
under the exceptional cases provided by
law and applicable rules and
regulations.
8/31/16
SUMMARY
Method
Goods
1. Limited Source Bidding
2. Direct Contracting
3. Repeat Order
4. Shopping
Infra
Consulting
5. Negotiated Procurement
158
SUMMARY
Negotiated Procurement
Goods
Infra
Consulting
3. Emergency Cases
4. Take Over Contracts
1. Small Value Procurement

2. Two Failed Biddings
5. Adjacent or Contiguous
6. Agency to Agency
159
SUMMARY
7. Procurement Agent
Goods
INFRA
CONSULTING
8. Highly Technical Consultants

9. Lease of Real Property
10. NGO Participation
11. Community Participation
12. UN Agencies
160
LIMITED SOURCE BIDDING

APPLICABILITY:
Goods
Consulting services
CONDITIONS:
Highly specialized types where only a few
bidders are known to be available
Major plant components beneficial to limit
bidding to known qualified bidders to
maintain uniform quality and performance of
the plant
161
EXAMPLE:
sophisticated defense
equipment, complex air navigation systems, coal
8/31/16
Pre-selection of suppliers or consultants

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
Financial position
The BAC of the concerned procuring entity

shall directly invite all the suppliers or
consultants appearing in the pre-selected list.
163
The pre-selected suppliers shall be those

appearing in a list maintained by the
relevant government authority that has
expertise in the type of procurement
concerned.
Examples of relevant government
authorities are
the NTC for telecommunications
equipment,
the PNP for firearms and ammunition,
and
the Bureau of Food and Drug for
drugs.
8/31/16

In
order to apply LSB on

the procurement of motor
vehicle, PE should first
establish that the motor
vehicle
sought
to
be
procured is either a highly
specialized type of goods
or
a
major
plant
165
DIRECT CONTRACTING or single

source procurement
APPLICABILITY:
Goods
CONDITIONS:
Items of proprietary nature from proprietary
source eg. Copyrights, patents
Items sold by an exclusive manufacturer or dealer
no other suppliers selling it at lower prices
no suitable substitute can be obtained at

more
advantageous
terms
to
the
Government e.g. 1) Water and Electricity Services
2) new lines of Telecommunications and ISP - if there is only one

service contractor within the area
166
REPEAT ORDER
APPLICABILITY:
Goods
CONDITIONS:
1.Same
or
lower
unit
prices, provided that such
prices are still the most
advantageous to the GOP
after price verification
167
REPEAT ORDER
3. Availed of within 6 months from the
contract effectivity date stated in the NTP
arising from the original contract, except
for existing lines of telecommunications
and ISP ( see appendix 12-guidelines on
procurement of water, electricity,
telecommunications and ISP)
4. Not to exceed 25% of the quantity of
each item IN THE ORIGINAL CONTRACT
168
Guidelines on Procurement of Water, Electricity,

Telecommunications and Internet Service Providers (Appendix 12 of
the IRR)
Water and Electricity Services

Mode of Procurement: Direct Contracting under Section
50(c) considering that water and electricity service
providers are granted exclusive franchises to operate
within a specific territory
Tellecommunications
Phones) existing lines
(Landline
and
Cellular
Mode of Procurement: Repeat Order under Section 51

(c) if additional lines are needed during the year.

the IRR)
Continuation
Section 3.2.1.4 - Telecommunications Existing Lines
Hence, the requirement under Section 51 (c) of the IRR
that the Repeat Order may only be availed of within six (6)
months from the effectivity period stated in the Notice to
Proceed arising from the original contract may be
dispensed with.

the IRR)
Continuation
Section 3.2.1.3 - Telecommunications Existing Lines
If results of said assessment or cost-benefit-analysis
continue to favor the existing service provider, then
the PE may simply renew its services (repeat order). If
it does not, bid out the said services per 3.2.2 of the
guidelines.

the IRR)
continuation
Telecommunications
Phones) New Lines
(Landline
and
Cellular
Mode of Procurement: Competitive Public Bidding if

more than one service contractor operating within the
area
Direct Contracting if there is only one service
contractor operating within the area

the IRR)
Continuation
Section 3.2.1.3 Internet Service Providers Existing
Lines
If results of said assessment or cost-benefit-analysis
continue to favor the existing service provider, then
the PE may simply renew its services (repeat order). If
it does not, bid out the said services per 3.2.2 of the
guidelines.

the IRR)
continuation
Internet Service Providers New Lines
Mode of Procurement: Competitive Public Bidding if
more than one service contractor operating within the
area
Direct Contracting if there is only one service
contractor operating within the area
Reportorial Requirement
Procurement
of
water,
electricity, telecommunications
and internet service providers
shall be stated in the APP of the
PE including the budget and
mode of procurement
8/31/16
FACTS
ISSUE:
Whether
post-qualification is
required in Repeat
Order.
8/31/16
Alternative Methods of Procurement:

Repeat Order
Repeat
Order under Section 51 of RA 9184 does

not require post-qualification.
The
phrase subject to post-qualification

process described in the Bidding Documents,
as stated in the provision refers to Competitive
Bidding and not to Repeat Order.
177
SHOPPING
(Appendix 19 Guidelines for Shopping and Small Value Procurement)
APPLICABILITY [52.1(A) AND (B)]:

Goods
CONDITIONS [SHOPPING UNDER Sec
52.1(A):
1.There is an unforeseen contingency
requiring immediate purchase
2.Amount does not exceed the
threshold prescribed in Annex H
3.RFQ may be sent to only 1 supplier
178
SHOPPING
CONDITIONS [SHOPPING UNDER Sec

52.1(B)]:
1.Procurement of ordinary or regular
office supplies and equipment not
available in PS
3.Decision to resort to shopping shall be
reflected in the Annual Procurement Plan
(APP)
4. At least 3 price
quotations from bona
179
SHOPPING
CONDITIONS [SHOPPING UNDER

52.1(B)]:
5. No splitting of contracts. Splitting of
contracts to make fall below the
threshold for shopping/SVP
6. RFQ and the Notice of Award shall be
posted (RFQ-for 7 CD) in PhilG-EPS
website, PE website if any, at any
conspicuous place
180
THRESHOLD FOR UNFORESEEN CONTINGENCIES [S.

52.1(a)]
REQUIRING IMMEDIATE PURCHASE, THE AMOUNT SHALL
NOT EXCEED THE FOLLOWING:
NGAs, GOCCs, GFIs, SUCs PhP100,000

LGUs
Classification
Maximum Amount (in Philippine Pesos)

Province
City
Municipality
1st Class
100,000
100,000
50,000
2nd Class
100,000
100,000
50,000
3rd Class
100,000
80,000
50,000
4th Class
80,000
60,000
50,000
5th Class
60,000
50,000
50,000
6th Class
50,000
50,000
50,000
In the case of Barangays, the maximum amount is PhP50,000

181
Splitting
of
contracts
is
strictly
prohibited.
Splitting of contracts means the breaking up of contracts into smaller quantities and amounts, or dividing contract
implementation into artificial phases or subcontracts, for the purpose of making it fall below the threshold for
shopping or small value procurement, or evading or circumventing the requirement of public bidding.
8/31/16
SUMMARY
Method
Goods
1. Limited Source Bidding
2. Direct Contracting
3. Repeat Order
4. Shopping
Infra
Consulting
5. Negotiated Procurement
183
SUMMARY
Goods
Infra
Consulting
3. Emergency Cases
4. Take Over Contracts
1. Small Value Procurement

2. Two Failed Biddings
5. Adjacent or Contiguous
6. Agency to Agency
184
SUMMARY
7. Procurement Agent
Goods
INFRA
CONSULTING
8. Highly Technical Consultants

9. Lease of Real Property
10. NGO Participation
11. Community Participation
12. UN Agencies
185
NEGOTIATED PROCUREMENT
SMALL VALUE PROCUREMENT
APPLICABILITY
All types of Procurement
CONDITIONS:
1.Procurement does not fall under
Shopping [52]
186
SHOPPING [S 52.1(b)] AND

SMALL VALUE PROCUREMENT
NGAs, GOCCs, GFIs, SUCs PhP500,000
LGUs
Classification
Maximum Amount (in Philippine Pesos)

Province
City
Municipality
1st Class
500,000
500,000
100,000
2nd Class
500,000
500,000
100,000
3rd Class
500,000
400,000
100,000
4th Class
400,000
300,000
50,000
5th Class
300,000
200,000
50,000
6th Class
200,000
100,000
50,000
In the case of Barangays, the maximum amount is PhP50,000
187
SHOPPING and SMALL VALUE

PROCUREMENT
Decision
to resort to shopping and small

value procurement shall be reflected in the
Annual Procurement Plan (APP)
RFQ - Posting in PhilGEPS, PE website
and in conspicuous place for 7 CDs required if amount is > PhP50,000
No splitting of contracts. Splitting of
contracts is made to fall below the
threshold for shopping or SVP
188
SHOPPING and SMALL VALUE

PROCUREMENT
Shopping/SVP
RFQ shall be sent to at least 3

suppliers (sec 3 of the guidelines)
Shopping at least 3 price quotations must be
obtained (sec f of the guidelines)
The PE must validate whether it is entering
into a contract with a technically, legally and
financially capable supplier, contractor or
consultant by requiring submission of relevant
documents (section j of appendix 19 of IRR)
189
TWO FAILED BIDDINGS
Section 35: Failure of Bidding when:
a) No bids received;
b) All prospective bidders are declared
ineligible;
c) All bids fail to comply with all the bid
requirements or fail to post-qualification, or
in the case of consulting services, there is no
successful negotiation; or
d) The bidder with LCRB refuses without
justifiable cause to accept the award of
contract or no award is made
190
TWO FAILED BIDDINGS
APPLICABILITY
CONDITIONS:
1.Two failed biddings
2.Mandatory review of the following:
Minimum technical specifications
ABC, which may be adjusted up to
20% from last failed bidding
191
TWO FAILED BIDDINGS
Following completion of the negotiations, the PE

shall request all suppliers to submit best and final
offer on a specified date.
Criteria in selecting the successful offer:

1. Offer should meet the PEs minimum technical
requirements.
2. Offer should not exceed ABC
Observers shall
negotiations
be
invited
in
all
stages
192
of
EMERGENCY CASES
APPLICABILITY:
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
193
EMERGENCY CASES
CONDITIONS:
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
194
TAKE-OVER OF CONTRACTS
APPLICABILITY:
CONDITIONS:
Rescinded or terminated contract
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
195
TAKE-OVER OF CONTRACTS
Negotiate
starting with the 2nd

LCB or HRB at the bidders
original bid price, then to the
next if negotiation fails
a
short list of at least 3
eligible contractors shall be
invited to submit bids and
negotiation shall be made
196
ADJACENT OR CONTIGUOUS
APPLICABILITY:
Infrastructure
Consulting
Services
CONDITIONS:
1.Subject contract is adjacent or contiguous to an on-going infra or consulting
2.Original contract is a result of competitive bidding
3.Subject contract has similar or related scopes of work
197
4.
5.
6.
7.
8.
Within the contracting capacity of

the contractor/consultant
The same prices or lower unit
prices as the original contract less
mobilization cost
Amount does not exceed amount
of the on-going project
No negative slippage
Negotiations commenced before
expiry of original contract
198
Can a proposed infrastructure project be
procured through Negotiated
Procurement (Adjacent or Contiguous)
under Section 53.4 of the revised
Implementing Rules and Regulations
(IRR) of Republic Act (RA) No. 9184.
199
Section 53.4 of the IRR of RA 9184
provides that in the instance of a
procurement of an infrastructure
project or consulting services that
is adjacent or contiguous to an
ongoing infrastructure project or
consulting services, the
alternative modality of
Negotiated Procurement may be
resorted to.
200
The phrase "adjacent or contiguous"
refers to projects that are in actual
physical contact with each other in the
case of infrastructure projects. Thus,
the physical connection of the two (2)
projects should be actual and not
superficial. The objective of this policy
is to take the advantage of the economy
and efficiency in engaging the
contractor for the on-going project, and
ensure that the two structures are
soundly connected.
201
Under Section 53.4 of the IRR of RA the
agency should be able to establish not
only the existence of the conditions under
Section 53.4 of the IRR of RA 9184, but
also that the Buildings 1 and 2 are in
actual physical contact of each other. The
determination of the existence of the
conditions warranting resort to any of the
alternative methods of procurement falls
solely within the authority and
accountability of the Procuring Entity.
202
AGENCY TO AGENCY
APPLICABILITY:
CONDITIONS:
1.Cost-benefit analysis indicating Ato-A is more efficient and economical
2.A-to-A does not exceed 25% of PEs
total budget for each category
(goods, infra, consulting)
203
AGENCY TO AGENCY
CONDITIONS:
3.Servicing agency has mandate

to deliver the goods and services
required to be procured
204
Alternative Methods of Procurement:

Negotiated Procurement (Agency-to-Agency)
Guidelines
on the Procurement of Printing

Services provides that Accountable Forms
and
Sensitive
High
Quality/Volume
Requirements should be sourced from
Recognized Government Printers (RGPs),
through Negotiated Procurement under
Section 53.5
205
PROCUREMENT AGENT
APPLICABILITY:
CONDITIONS:
HOPE has determined that PE does
not have procurement proficiency or
capability to undertake a particular
procurement
206
PROCUREMENT AGENT
ACTIONS AVAILABLE:
Request
other
GOP
agencies to undertake such
procurement for them
Recruit
and
hire
consultants or procurement
agents
to
assist
them
directly and/or train their
207
HIGHLY TECHNICAL PROCUREMENT
APPLICABILITY:
Consulting Services
CONDITIONS:
1.Individual consultant
2.Work involves:
Highly technical or proprietary
Primarily confidential or policy
determining, where trust and
confidence are the primary
consideration
208
HIGHLY TECHNICAL PROCUREMENT
3.Term is, at the most, 6

months, renewable at the
option of the appointing
HOPE, but in no case to
exceed the term of the
latter
209
LEASE OF REAL PROPERTY
APPLICABILITY:
Goods (Real Estate and Venue)
CONDITIONS:
1.Cost-benefit analysis indicating leasing privately-owned real
estate or venue is more efficient and economical
2.APP reflect the proposed lease
3.Selection to follow the guidelines (Appendix 18 of the IRRguidelines for lease of privately-owned real estate and venue))
Eligibility documents need not be submitted, but PE must
validate whether lessor is technically, legally, and financially
capable through other means
Lease contracts costing > PhP50,000 should be posted in the
PhilGEPS
Rating factors for lease of real estate follow Appendix A of
the guidelines)
210
LEASE OF REAL PROPERTY (CONTINUATION)
Terms and Conditions of Lease

Contracts:
The PE shall ensure that the lease
contract
provides
the
most
advantageous terms and conditions to
the Government
Lease contracts may be entered into
on a multi-year basis
211
NGO PARTICIPATION
APPLICABILITY:
CONDITIONS:
appropriation law or ordinance earmarks
an amount to be contracted to NGOs
PE may opt to conduct public bidding or
negotiated procurement for the selection
of NGO, subject to the rules provided in
the guidelines (Appendix 15 of the IRR)
212
COMMUNITY PARTICIPATION
APPLICABILITY:
Delivery of goods, including nonconsulting
services
and
simple
infrastructure projects
CONDITIONS:
1.In
the
interest
of
project
sustainability or to achieve certain
specific social objectives, to call for
participation of local communities in
the delivery of goods, subject to the
213
United Nations Agencies
APPLICABILITY:
CONDITIONS:
Procure from UN Agencies
Small
quantities
of
off-the-shelf
goods, primarily in the fields of
education and health
Specialized
products
where
the
number of suppliers is limited (e.g.,
vaccines or drugs)
214
OTHER TERMS AND CONDITIONS OF

PROCUREMENT
Most
advantageous
price for government
should be obtained (Sec
48.1)
Splitting
of contracts
strictly prohibited (Sec
54.1)
215
OTHER TERMS AND CONDITIONS

Performance
and warranty
necessary,
securities
except:
Shopping [52]
Emergency Cases [53.2]
Small Value Procurement
[53.9]
Lease of Real Property
216
CONFLICT OF INTEREST
Conflict
of interest
arises when, in the
case of the subject
matter of the inquiry,
the Chairman of the
BAC that conducted
the
earlier
217
GRANT OF HONORARIA
PE
is authorized to grant honoraria to

the members of the BAC, the TWG, and
the BAC Secretariat provided the amount
so granted does not exceed twenty-five
percent (25%) of their respective basic
monthly salary, subject to the following
conditions:
funds are available for the purpose; and

the grant of honoraria conforms to the
guidelines promulgated by the DBM.
(Section 15, IRR of R.A. 9184)
218
GUIDELINES ON THE GRANT OF

HONORARIA
Budget
Circular No. 2004-5A, dated 7

October 2005 As amended by Budget Circular
No. 2007-3, dated 29 November 2007.
Only
for successfully completed procurement

projects. A procurement project shall be
considered successfully completed once the
contract has been awarded to the winning
bidder.
Limited
to
procurement
competitive bidding.
that
involves
Granted
to Chair and Members of the BAC

and the TWG
219
GUIDELINES ON THE GRANT OF

HONORARIA
BAC
Secretariat
performing
attendant functions in addition to
their regular duties and functions
may be paid honoraria at the same
rate as the TWG Chair and Members
Those who are receiving honoraria

shall no longer be entitled to
overtime pay for procurementrelated services rendered.
Payment of overtime services may

be allowed for the administrative
staff,
(clerks,
messengers
and
220
drivers supporting the BAC, the
FUNDING SOURCE OF
HONORARIA
proceeds
from sale of bid documents;

fees from contractor/supplier registry;
fees charged for copies of minutes of bid
openings, BAC resolutions and other BAC
documents;
Protest fees
Liquidated damages
Performance security forfeiture
Savings from current year specific budget
of the agency under GAA
For GOCC, savings from the DBM approved
corporate operating budget
221
FUNDING SOURCE OF
HONORARIA
Savings
from
current
year
specific budget of the agency
under GAA
Savings mean free from any obligation of
encumbrance:
still available after the completion or final
discontinuance or abandonment of the work, activity
or purpose for which the appropriation is authorized;
arising
from
unpaid
compensation
pertaining to vacant positions and leaves of
absences without pay; and
222
FUNDING SOURCE OF
HONORARIA
Savings
from current year specific

budget of the agency under GAA
(continuation)
Savings mean free from any obligation of
encumbrance:
realized from the implementation of collective negotiation
agreements which resulted in improved system and thus
enabled the agency to meet and deliver the required
planned targets and services at lesser cost.
In the use of savings, priority shall be given.The

payment of honoraria and overtime pay for
procurement activities shall be made after satisfying
mandatory expenditure items.
223
CEILING FOR HONORARIA

Maximum Honorarium rate
per procurement project
BAC Chair
Php 3,000.00
BAC Members
Php 2,500.00
BAC Secretariat
TWG Chair and Members
Php 2,000.00
Members of the BAC Secretariat whose positions are in

the Procurement Unit of the agency shall not be entitled
to honoraria although the payment of overtime services
may be allowed, subject to existing policy on the matter.
Limitation: The payment of

honoraria do not exceed twenty-224
five percent (25%) of their
Scope and Application:

Grant of Honoraria
Payment
of honoraria is limited to
procurement that involves competitive
bidding:
o Competitive Bidding (Section 10),
o Limited Source Bidding (Section 49),
o Negotiated Procurement under Two-Failed
Biddings (Section 53.1)
225

Grant of Honoraria
Honoraria
will not be paid when

procurement is through all the other
alternative modes of procurement
226

Grant of Honoraria
If
the items awarded in the first bidding and those

subject of the re-bidding belong in the same
procurement project that is identified, described,
detailed, scheduled, and budgeted for in the procuring
entitys PPMP, the BAC may only claim honoraria once
all items have been successfully awarded. Hence, if
the BAC has already received its honoraria, it should
no longer be entitled to claim on the basis of the
successfully awarded items during the re-bid.
227

Grant of Honoraria
The
grant of honoraria shall not

exceed the rates and limits prescribed
in Sections 5.3 and 5.4 of BC 2004-5A
228
Scope and Application: Grant of Honoraria

all
agencies are authorized to treat the collections from the

sources identified treated as trust receipts per DOF-DBM-COA
Permanent Committee Resolution No. 2005-2 dated June
2005
Utilization
of collections for payment of honoraria and

overtime pay up to 100%
Any
excess in the amount collected shall be remitted by

NGAs to BTR. In case of GOCCs the same shall form part of
their corporate government funds
Total
amount of honoraria and overtime pay to be paid shall

not exceed the said collections
In
case collections is deficient, the amount of honoraria and

overtime pay shall be adjusted proportionately for those
entitled thereto.
229
Review of
Contracts as to
auditorial and
legal aspect
Review of Contracts as to auditorial and legal aspect (continuation)
1. The auditor shall be guided with COA

CIRCULAR No. : 2009-001 dated February
12, 2009
SUBJECT:
Restatement with amendment

of COA Circular 87-278 and COA
Memorandum 2005-027 re: submission
of copy of government contracts,
purchase orders and their supporting
documents to the Commission on Audit
3.0 SUBMISSION AND REVIEW PROCESS
3.1 Contracts
3.1.1 Within five (5) working days from the execution of a

contract by the government or any of its subdivisions,
agencies or instrumentalities, including government-owned
and controlled corporations and their subsidiaries, a copy of
said contract and each of all the documents forming part
thereof by reference or incorporation shall be furnished to
the Auditor of the agency concerned. In case of agencies
audited on an engagement basis, submission of a copy of the
contract and its supporting documents shall be to the
Auditor of the mother agency or parent company, as the case
may be.
3.1.2. The copies of documents required to be submitted shall include but not limited to the following:
a. Invitation to Apply for Eligibility and to Bid;
b. Letter of Intent;
c. Eligibility Documents and Eligibility Data Sheet;
d. Eligibility Requirements;
e. Results of Eligibility Check/Screening;
f. Bidding Documents (Sec. 17.1, IRR-A, RA 9184);
g. Minutes of Pre-bid Conference, if applicable;
h. Agenda and/or Supplemental Bid Bulletins, if any;
i. Bidders Technical and Financial Proposals;
j. Minutes of Bid Opening;
k. Abstract of Bids;
1. Post Qualification Report of Technical Working Group;
m. BAC Resolution declaring winning bidder;
n. Notice of Post Qualification;
o. BAC Resolution recommending approval;
p. Notice of Award;
q. Contract Agreement;
r. Performance Security;
s. Program of Work and Detailed Estimates;
t. Certificate of Availability of Funds, Obligation Request;
u. Notice to Proceed
v. Such other documents peculiar to the contract and/or to the mode of procurement and considered necessary in the
auditorial review and in the technical evaluation thereof.
Review of Contracts as to auditorial

and legal aspect (continuation)
The Auditor shall review the contract within a period

ranging from five (5) to twenty (20) working days from
receipt, depending on the complexity of the contract. The
auditorial review shall consist in the evaluation of
compliance with the requirements of applicable laws, rules
and regulations, completeness of documentary
requirements and an initial evaluation that the contractual
covenants are not disadvantageous to the government.
Within five (5) working days after the

auditorial review, the Auditor shall forward
the contract and its supporting documents for
technical review to the Technical Audit
Specialist (TAS) assigned in the auditing
unit/cluster or to the Regional Technical
Services Office (RTSO), as the case may be,
accompanied by the relevant checklist of
documentary requirements mentioned in item
3.1.3 hereof
Review of Purchase Orders
3.2 Purchase Orders
3.2.1 A copy of any purchase order irrespective of

amount, and each and every supporting document,
shall, within five (5) working days from issuance
thereof, be submitted to the Auditor concerned.
Within the same period, the Auditor shall review and
point out to management defects and/or deficiencies,
if any, in the same manner provided in the second and
third sentences of item 3.1.4 hereof
COA RESOLUTION NO : 2015- 014

DATE : APR 0 6 2015
SUBJECT: REVISED GUIDELINES GOVERNING AUDITORIAL
REVIEW AND EVALUATION OF GOVERNMENT
INFRASTRUCTURE CONTRACTS
4. The Auditor shall render a report that the contract has been found in order as
to the legal and auditorial review before the conduct of the technical review.
237
8/31/16
THANK YOU!!
241

Procurement Law RA 9184

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Procurement Law RA 9184

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PROCUREMENT OF

public involvement of qualified

Scope and Coverage

Scope and Coverage

This IRR shall apply the :

Scope and Coverage

9184 and its IRR will not

a general rule, all procurement

Capacity Development Division

Only in highly exceptional cases

To promote economy and efficiency

Justified by conditions specified in

Capacity Development Division

Attended by the following:

Capacity Development Division

II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID

the start of the bidding process.

the availability of the bidding documents to

Capacity Development Division

II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID

least once in one (1) newspaper of general

continuously for 7 calendar days

website of the PE, if any.

At any conspicuous place in the premises of the PE.

II. ADVERTISEMENT/POSTING OF THE

PEs Website, if available

Website prescribed by the

Penalty for Non-Posting

Capacity Development Division

The Bidding Document shall

Preparation of Bidding Documents

Bidding Documents must be

Preparation of Bidding Documents

Preparation of Bidding Documents

Approved Budget Maximum cost of

Reference to Brand Names

we indicate the specs/

are exception to the rules.

Capacity Development Division

(Sec 22 of Revised IRR)

Mandatory for projects with

Attendance of the bidders shall not be mandatory.

12cd before deadline for bid submission.

Pre-Bid Conference (Sec 22 of Revised IRR)

Clarify and explain any of the requirements,

Pre-Bid Conference (Sec 22 of Revised IRR)

Supplemental Bid Bulletin

Statements made in prebid shall not modify the

Supplemental Bid Bulletin

Supplemental Bid Bulletin

Supplemental Bid Bulletin

Bidders who have submitted bids

Supplemental Bid Bulletin

SAMPLE BID BULLETIN

Late Issuance of Supplemental/Bid

Modification and Withdrawal of Bids

Modification and Withdrawal of Bids

Non-posting of Supplemental Bid Bulletin

Capacity Development Division

Submission and Receipt of

IV. SUBMISSION AND

IV. SUBMISSION AND

submission of Letter of Intent (LOI) is