To orient participants on the current

procurement of infrastructure contracts

based of revised IRR of RA 9184

To have general understanding of the

process flow in accordance with the
specific requirements

To enable participants to apply the

standardize procedural flow of the
procurement process.
 IRR of R.A. 9184 (8th Edition)

Published at the Official Gazette on

August 29, 2016

Effective October 29, 2016

Competitive Bidding
A. Procurement Planning
B. Standard Bidding Procedures
C. Contract Implementation
Default Bidding – Competitive

As a general rule, procurement must be conducted through

competitive bidding process, unless otherwise provided
under GPRA and its IRR, then the Alternative Methods of
Procurement can be resorted to.
This is to guarantee:

1.Fair and impartial grounds for competition among

bidders.

2.That no single bidder significantly influences the

outcome of the bidding.

3. Transparency in the procurement process and in the

implementation of procurement contracts.
In case of projects involving mixed procurements, the
nature of the procurement shall be determined based on
the primary purpose of the contract. Determination shall be
made by the procuring entity.

Approved Budget for the Contract (ABC) is the ceiling for

the bid price.
Project Procurement Management Plan (PPMP)
Annual Procurement Plan (APP)
Approved Budget for the Contract (ABC)
Purpose

A guide document in the procurement and contract

implementation process

Prepared by the implementing unit during the budget

preparation to support the cost estimates in the budget
proposal
 Refers to the entirety of the procurement activities
that will be undertaken by the procuring Entity within
the calendar year using the prescribed format
required by the GPPB.

Shall be consolidated by the BAC Secretariat from

the PPMPs of end-user units. The BAC shall take
into consideration the following factors:
- One year planning perspective
- Emergency or Contingency Fund
- Schedule of Activities
No procurement shall be undertaken,
unless in accordance with the
approved APP
Approval of Head of Procuring Entity
(HOPE) or designated second-
ranking official
To facilitate implementation, even
pending approval of GAA, the PE
may undertake procurement activities
short of award
No award shall be made pending
approval of GAA
Quantities – construction quantities shall be
computed of not more than 10% of
the final quantities
Unit Cost – shall be based on current prices
as projected over the construction
period
ABC – shall consist of items of work, such
as, but not limited to, earthwork,
concreting, equipment, fuel, labor,
overhead, including cost of
construction safety and health,
bonds and warranty premiums.
Direct Costs
Materials
Cost at source
Hauling, royalties, local taxes
Handling expenses
Storage expenses
Allowance for Waste
Direct Costs
Labor
Salaries
Benefits
Equipment
Rental Rates
Mobilization & Demobilization
Permits, Clearances, Taxes
Indirect Costs
Overhead (5 to 8% of EDC)
• Engineering & Admin
Expenses Office Expenses
• Transportation,
Communication, Insurance
Costs

Contingencies (0.5 to 3% of
EDC)
Miscellaneous (0.5 to 1 % of
EDC)
Profit 8% (EDC > 5M )
10% (EDC < 5M)
VAT 5% of EDC, OCM & Profit
Contains the instructions and provisions
corresponding to the procurement at hand

Contents
a. Approved Budget for the Contract;
b. Invitation to Bid;
c. Eligibility Requirements;
d. Instruction to Bidders, including scope
of bid, criteria for eligibility, bid
evaluation methodology and post-
qualification,
e. date, time and place of the pre-bid
conference (where applicable),
submission of bids and opening of bids;
f. Scope of work, where applicable;
g. Plans/Drawings and Technical
Specifications;
h. Form of Bid, Price Form, and BOQ
i. Completion Schedule;
j. Form, Amount, and Validity Period of Bid
Security;
k. Form, Amount, and Validity of
Performance Security and Warranty; and
l. Form of Contract and General and
Special Conditions of Contract.
Standard Procedural Steps
Details to be discussed Meeting attended by
ABC and its availability - BAC
Method of procurement and the - TWG
related milestones - End-User or
Completeness and readiness of Implementing Unit
Bidding documents - Secretariat
Scope of Works
Plans and Technical
specifications
Schedules and Timeframes
Emphasize the importance of
confidentiality
 Is Detailed Engineering Complete?

Availability of Right of Way?

No procurement shall be undertaken unless it is in

accordance with the approved APP of the procuring
entity.
Purpose
To ensure transparency of the
procurement process
Widest possible dissemination to
increase the number of
prospective bidders
Intensify competition for the
procurement activity or project
Availability of bidding documents
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.

Posted continuously for 7 calendar days –

–PhilGEPS
–website of the PE
–website of IFI, if applicable.
–At any conspicuous place in the premises of the PE.

Newspaper advertisement is not required for projects with

ABC of 15M and below.
Two (2) years after the effectivity of this
IRR, advertisement in a newspaper of
general nationwide circulation shall no
longer be required. (Sec. 21.2.1)
Purpose
The pre-bid conference is the initial
forum where the Procuring Entity’s
representatives and the prospective
bidders discuss the different aspects of
the procurement at hand.
Gives bidders the opportunity to raise
concerns or clarifications on the
requirements, terms, conditions, and
specifications stipulated in the bidding
documents for the contract to be bid.
 Notes:
Shall be held at least 12 cd before
submission of bids
At least 1 PBC with
an ABC of P1M or
Questions or clarifications must more
be raised at least ten (10)
calendar days before the deadline Should there be
set for the submission and any Supplemental/
receipt of bids. Bid Bulletins it
must be issued by
the BAC and
The BAC shall respond at least 7
posted on the
cd before the submission of bids. PhilGEPS and at
the website of the
procuring entity
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 PE’s 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.
(NPM 24-2013)
Who are allowed to Bid
1. Filipino citizens
2. Partnership (75% Filipino)
3. Corporations (75% of stocks
owned by Filipinos)
4. Cooperatives
5. Foreign bidders are allowed
when provided for in any Treaty
or Int’l or Executive Agreement
6. PCAB License (RA 4566)
Two-Envelope System Note:
1st Envelope – Eligibility Requirements If the bids
and Technical Component cannot be
opened on the
specified date,
2nd Envelope – Financial Component the BAC shall
take hold of the
bidding
Submitted to the BAC on the date, time, and documents and
place specified in the Invitation to Bid. Bids re-schedule its
opening on the
submitted after the deadline should not be soonest
accepted. possible time.
Date of submission should not be later than
the following period from the last day of
posting of the Invitation to Bid.

ABC < P50 M 50 cds

ABC > P50 M 60 cds

Contents
1. PhilGEPS Certification
(Class “A” Documents)
2. Bid Security
3. Technical requirements
4. Omnibus Statement
1. PhilGEPS Certification

Class “A” Documents

- DTI / SEC / CDA
- Mayors Permit
- Tax Clearance
2. 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.
Bank issued securities must
be issued by a universal or
commercial bank
Bid Securing Document
A duly notarized
document/undertaking
which states that the bidder
will enter into contract with
the PE and furnish the
required performance
security within 10 cd upon
receipt of NOA.
 Bid Security Note:

Form Amount (% of Surety Bonds must be

ABC) accompanied by
Cash / 2% certification from
Managers Insurance Commission
Check that issuer is authorized
Bank Draft / 2% to issue such security
Bank Guarantee
Surety Bond 5%
 Bids and bid securities NOTE:
(including bid securing declaration)
shall be valid for a reasonable
period as determined by the Bidders have a
HOPE as indicated in the Bid right to refuse to
Docs. grant such
extension w/o
Not to exceed 120 cds forfeiting their bid
security
If the period is extended, PE
shall request in writing all those
who submitted bids for such
extension before the expiration
date.
3. Technical Documents
- Statement of ongoing contracts
- SLCC
- Valid PCAB License & Registration
- for JVs (Special PCAB License)
 Disclosure of Relations
4. Omnibus Statement
a) Signatory is authorized representative
b) Not blacklisted Bidders within the 3rd
c) Each document is submitted is an degree of relationship
authentic copy with the
d) Authorizes the HoPE to verify all
documents - HOPE
e) Complies with disclosure provision - BAC Members,
(Section 47) Secretariat, & TWG
f) Complies with law & regulations
g) Complies with the responsibilities as - End-user/PMO
provided in the BDs - Consultants / Designers
h) Did not give or pay any amount to any
person of official of the government
A public official or employee shall avoid conflict of interest
at all times. The BAC shall ascertain whether the
relationship of the bidder to the Head of the Procuring
Entity or any of its BAC, TWG, Secretariat, or officers or
employees having direct access to information that may
substantially affect the result of the bidding or any
procurement processes, puts the bidder in a position to
unduly influence or be given preference in the award of the
contract.
Contents
1. Bid in the Financial Bid Form
2. Bid in BOQ
3. Detailed Estimate
4. Cash Flow by Quarter
Purpose Notes
- determine correct calculation of not providing
bids amounts in all
- ranking items, non
responsive
Criteria specifying “-” of
zero “0” means it
- completeness
is offered for free
- arithmetical corrections
If there is conflict, the following shall
prevail: Notes

- figures vs words, bid in words over ABC is the

figures prevails Ceiling of Bid
Prices
- total price vs unit price per item, unit
price per item prevails
No contact
- total sum vs actual sum, actual sum rule until NOA
prevails is made

- unit cost in detailed estimate vs unit cost

in BOQ, unit cost in BOQ prevails
Frontloaded Bids – A bid is "front-loaded“ if the total price
is allocated in a manner where elements of the work to be
performed, and paid for, early in a project bear a
disproportionate amount of cost, overhead and profit. ...

A front-loaded contract poses financial dangers for a

project owner.
“…The ABC is the upper limit or ceiling for bid prices, it is
used by a bidder in submitting a responsive bid.
Accordingly, bids that are within the ABC, even if the price
offered for a particular component exceeds the identified
estimated cost for such component, can be considered for
award if proven to be the lowest calculated and responsive
bid among all other bids.” (NPM 13-2015)
Purpose
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)

To be accomplished not more than 12 c.d.

from determination of LCB. (Exceptional
cases not to exceed 45 c.d.)
Legal Requirements
verify all legal documents

Technical
competence & availability of key
technical personnel
availability of major equipment
material testing equipment
performance qualification
Performance Qualification
negative slippage >
15% in one project
10% in 2 or more projects
failure to commence repair works in ongoing works
failure to commence work for projects with pending
certificate of acceptance
substandard work
Note:
BAC shall recommend the award of contract at its
submitted bid price or its calculated bid price,
whichever is lower.
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
Documentary requirements
Contract agreement
Bidding documents
Eligibility requirements, technical & financial
proposals
Performance Security
NOA
Technical documents
S-curve, manpower schedule, construction
methods, equipment utilization schedule,
health & safety program
• NTP shall be issued within 7 cd from date of approval of
contract.
• Contract shall be effective only upon receipt by the
successful bidder.
Bidding Stage
Bid Security
 1 year Defects
Liability Period

Start of Completion of
Acceptance
Contract Contract

Contract Implementation Stage

Performance Security

CARI
PAYMENTS
Advance
Progress
Final
Retention
Warranty Security
1 year validity

Warranty Period
2 to 15 years
Bidding Stage
Bid Security

1 year Defects
Liability Period

Start of Completion of
Acceptance
Contract Contract

Contract Implementation Stage

Performance Security

CARI
PAYMENTS
Advance
Progress Warranty Security
1 year validity
Final
Retention
Warranty Period
2 to 15 years
Permanent Structures (15 yrs)
Buildings Types 4 & 5, bridges, flyovers, ports, dams,

Semi-Permanent (5 yrs)
Buildings Types 1, 2, 3, concrete roads, concrete river
control, drainage

Other Structures (2 yrs)

Bailey, wooden bridge, wells
Grounds
No bids are received
All bidders are declared ineligible
All bids fail in post-qualification
Refusal to accept the award
What to do
review terms & conditions by the
BAC
revise terms, conditions
Adjust ABC, subject for approval
Re-advertise and re-bid
If there is a 2nd failure, PE may
resort to negotiation
Grounds
collusion between the PE & the
bidders, bidders themselves, or
bidder and 3rd party
BAC failed to follow procedures
Project is no longer needed, or
source of funds are withheld
Project will not benefit the
general public
Variation Order - Change Order or
Extra Work Order which should not
exceed 10% of the original contract
price.

Variation Order greater than 10% are

subject to a separate contract
Supplemental Agreement is no longer allowed.

Advance Payment – not more than 15% of the contract

price subject to the submission of irrevocable letter of
credit, bank guarantee, or surety bond.
Progress payment – submission of statement of work
accomplished or progress billing

Retention Money – progress payment are subject to 10%

retention money.
The total “retention money” shall be released upon
final acceptance of the works.
Liquidated Damages –

When bidder fails to perform obligations

within specified schedule, inclusive of duly
granted time extensions, he shall be liable
for damages and shall pay the PE liquidates
damages.

Bidder shall pay an amount equal to 1/10

of 1% of the cost of the cost of
unperformed portion of works for every day
of delay

But not more than 10% of the total contract

Suspension of Work –
due to :
force majeure
adjustments of plans to suit field conditions
undelivered materials which are to be supplied by
the PE
Suspension of Work
ROW issues
Peace & Order conditions
Delay in government payment beyond 45 cds
Extension of Time
- only granted when the affected activities are in the
critical path of the PERT/CPM
Engr. Mariano N. Carbonell

References:
R.A. 9184 & its IRR
GPPB References
DPWH D.O.