IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO.

9184
OTHERWISWE KNOWN AS AN ACT PROVIDING FOR THE MODERNIZATION,
STANDARDIZATION AND REGULATIONS OF THE PROCUREMENT ACTIVITIES OF
THE GOVERNMENT AND OTHER PURPOSES
GENERAL COVERAGE
All procurement activities from procurement planning up to contract implementation and
termination, except for the following:
a)
b)

Acquisition of real property

Private sector infrastructure or development projects

SCOPE AND APPLICATION

Procurement of infrastructure projects, goods and consulting services regardless of source of funds,
wether local or foreign.
BIDS AND AWARDS COMMITTEE (BAC)
BAC shall have at least five (5) members but not more than seven (7) members.
The members of the BAC, including the Chairman and Vice Chairman shall be designated by the
head of the procuring entity.
The Vice Chairman shall be a regular member of BAC.
Functions of the BAC

Advertise and/or post the invitation to bid.

Conduct pre-procurement and pre-bid conferences.
Determine the eligibility of prospective bidders.
Receive bids.
Conduct evaluation of bids.
Undertake post-qualification proceedings.
Recommend the imposition of sanctions.
Perform such other related functions.
Create TWG from pool of technical, financial and/or legal experts.
Recommend the use of Alternative Methods of Procurement.

Observers
The observers shall come from organization duly registered with the SEC and should meet the
following criteria:
1.
2.
3.

Knowledge and expertise in procurement or in the subject matter of the contract to be bid.
Absence of direct or indirect interest in the contract to be bid out.
Any other criteria that may be determined by the BAC.

BAC Secretariat will serve as the main support unit of the BAC and shall have the following
functions:
1.
2.
3.
4.
5.

Provide administrative support to the BAC.

Organize and make all necessary arrangements for the BAC meetings;
Attend BAC meetings.
Prepare Minutes of the BAC meetings.
Take custody of procurement documents and responsible for the sale and distribution of
bidding documents to interested bidders.
6.
Assist in managing the procurement processes.
7.
Monitor procurement activities and milestone for proper reporting to relevant agencies when
required.
8.
Consolidate PPMPs from various units of the procuring entity to make them available for
review.
9.
Make arrangements for the pre-procurement and pre-bid conferences and bid openings.
10.
Be the central channel of communications.
PREPARATION OF BIDDING DOCUMENTS
Form and Contents of Bidding Documents
The bidding documents shall include the following:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)

Approved Budget for the contract;

Eligibility Requirements;
Instructions to Bidders, including criteria for eligibility, bid evaluation and postqualification, as well as the date, time and place for the pre-bid Conference, submission of bids
and opening of bids;
Terms of Reference (TOR), for consulting services;
Scope of work;
Plans and Technical Specifications;
Form of Bid, Price Form, and List of Goods or Bill of Quantities;
Delivery Time or Completion Schedule;
Form, Amount and Validity Period of Bid Security;
Form and Amount of Performances Security and Warranty; and
Form of Contract, and General and Specification Conditions of Contract.

Detailed Engineering for the Procurement of Infrastructure Projects

No bidding and award of contract for infrastructure projects shall be made unless the detailed
engineering investigations, surveys and designs, except for design and build schemes, including the
acquisition of the ROW for the project have been sufficiently carried out and duly approved in
accordance with the standards and specifications prescribed by the head of the procuring entity
concerned or his duly authorized representative.

PROCEDURES IN PROCUREMENT (for Infrastructure Projects)

1.
2.
3.
4.
5.
6.
7.
8.

Pre-procurement Conference
Advertisement / Posting
Eligibility Screening
Pre-Bid Conference
Submission and Receipt of Bid
Bid Evaluation
Post-Qualification
Award of Contract

1.

Pre-procurement Conference
Prior to advertisement or the issuance of the Invitation to Apply for Eligibility and to Bid, the
BAC, through it Secretariat, shall call for a pre-procurement conference, to;
A.
B.
C.
D.
E.

Ensure that the procurement is in accordance with the project and annual procurement plans;
Determine the readiness of the procurement at hand;
Review modify and agree on the criteria for eligibility screening;
Review, modify and agree on the criteria for the evaluation of bids/proposals;
Clarify that the specifications and other terms in the bidding documents are minimum
requirements;
F. Reiterate and emphasize the importance of confidentiality during the bid evaluation process,
and applicable sanctions and penalties;
The holding of a pre-procurement conference may not be required for small procurements, i.e.,
procurement of infrastructure projects costing five million pesos (P5, 000,000.00) and below.
2.

Advertisement / Posting
A.

For contracts above P 5 million

1.

Advertised at least twice within a minimum period of 14 cd, within a

minimum period of six 960 cd between publications, in a newspaper of general
nationwide circulation which have been regularly published for at least two (2) years
before the date of issuance of the advertisement;
2.
Posted continuously in the website of the procuring entity concerned;
3.
Posted in the G-EPS during the two-week period;
4.
Posted at any conspicuous place reserved for this purpose in the premises
of the procuring entity.
B.

For contracts P 5 million and below

1.
2.
3.

Posted continuously in the website of procuring entity concerned;

Posted in G-EPS during the two-week period;
Posted at any conspicuous place reserved for this purpose in the premises
of the procuring entity.

For infrastructure projects, the bidding documents shall be issued within thirty (30) calendar
days from last day of the period of advertising and/or posting of Invitation to Apply for

Eligibility and to Bid, and the opening of bids shall be conducted within the following
periods from the last day of the issuance of the bidding documents.
Estimated Contract Cost (PhP)
Up to twenty five (25) million
Above twenty five (25) million
up to fifty (50)
Above fifty (50) million up to
two hundred (200)
Above two hundred (200) million

Period
15 to 30 calendar days
15 to 45 calendar days
30 to 60 calendar days
60 to 90 calendar days

In case of simple or repetitive or standardized works where time is of the essence, the head
of the procuring entity may reduce the above term of issuance to not less than fifty percent
(50%) of the periods indicated above.
Provided, however, That the periods for conducting eligibility check, pre-bid conference and
the issuance of the bidding documents shall be followed.
3. Eligibility Screening
A.

Eligibility Criteria
1.

2.
3.

The following person/ entities shall be allowed to participate in the

bidding for infrastructure project:
a.
Duly licensed Filipino citizens/ sole proprietorship.
b.
Partnership duly organized under the laws of the Philippines and
of which at least 75% of the interest to citizens of the Philippines.
c.
Corporations duly organized under the laws of the Philippines and
of which at least 75% of the outstanding capital stock belongs to citizens of the
Philippines.
d.
Persons/ entities forming themselves into a joint venture.
e.
Cooperatives duly registered with CDA.
Must have a PCAB license.
The value of the prospective bidders largest single completed contract,
adjusted to current prices using NSO consumer price indices at G-EPS website, and
similar to the contract to be bid.

In the case of a small A and B contractors without similar experience on the contact to be
bid, they may be allowed to bid if the cost of such contract is not more than 50% of their
registration particular for such category. The allowable range of contract cost per PCAB
registration of contractor shall be:

Category
Small A
Small B
Medium A

Registration Particular
Allowable Range of Contract Cost
(in Million Pesos)
Up to 0.5
Up to 10
Up to 50

Medium B
Large A
Large B

Up to 100
Up to 150
Less than or above 150

4.

The Contractors Performance Evaluation System (CPES) rating and / or

certification of completion and owners acceptance of the contract must be satisfactory.
5.
Credit line commitment or Bank Deposit Certificate of at least 10% of ABC,
or the prospective bidders NFCC must be at least equal to the ABC, calculated as
follows
NFCC = [(Current assets minus current liabilities) * K] - (The value of all outstanding
works or projects under ongoing contracts, including awarded contracts yet to be started).
K= 10 for a contract duration of one year or less, 15 for a contract duration of more than one
year up to two years, and 20 for a contract duration of more the two years.
The BAC shall determine if each prospective bidder is eligible to participate in the bidding by
examining the completeness of each prospective bidders eligibility requirements or statement
against a checklist of requirements, using a non discretionary pass / fail criteria, and shall be
determined as either eligible or ineligible .
Notwithstanding the eligibility of a prospective bidders, the procuring entity concerned reserves
the right to review it qualification at any stage of the procurement process if it has reasonable
grounds to believe that a misrepresentation has been made by the said prospective bidder, or that
there has been a change in the prospective bidders situation from the time submitted its
eligibility requirements.
B.

Eligibility Check for Infrastructure Projects

The determination of eligibility shall be based on the submission of the following:
Class A Documents
a.
b.
c.
d.
e.

f.
g.
h.
i.

Department of Trade and Industry (DTI) business name registration or SEC

registration certificate, whichever may be appropriate under existing laws of the
Philippines.
Valid and current Mayors permit/ municipal license.
Taxpayers Identification Number.
Prospective Bidders computation for the NFCC.
Statement of the prospective bidder that is not blacklisted or barred from the
bidding by the Government or any of its agencies, offices, corporation or LGUs,
including, non-conclusion in the blacklist of the contractors issued by the
Construction Industry Authority of the Philippines.
Other appropriate license as may be required by the procuring entity concerned.
Statement of the prospective bidder of all its ongoing and completed government
and private contracts, including contracts awarded but not yet started, if any.
Valid PCAB license and registration for the type and cost of the contracts to be bid.
The prospective bidders statement of:

i.1. Availability of the prospective bidders key personnel, such as project managers,
project engineers, materials engineers and foremen, that may be used for
constructing contracts; and
i.2. Availability of equipment that he owns, has under lease, and/ or has under
purchase agreements, that may be used for constructing contracts, provided that
the ownership of equipment is not a requisite for eligibility.
j. The prospective bidders audited financial statement, stamped received by the
BIR or its duly accredited and authorized, institution, for the immediately preceding
calendar year, showing, among other, the prospective bidders total and current assets
and liabilities.
k. A sworn affidavit of compliance with the Disclosure Provision of RA 9184 in
relation to other provision of R.A. 3019.
l. Tax Clearance Certificate from BIR.
Class B Documents
a.
b.

Valid joint venture agreement, in case of a joint venture.

Letter authorizing the BAC or its duly representative/s to
verify any or all of the documents submitted for the eligibility check.

The prospective bidder or its duly authorized shall certify under oath that each of the documents
submitted in satisfaction of the eligibility requirements is an authentic and original copy, or a
true and faithful reproduction or copy of the original, complete, and that all statement and
information provided therein are true and correct.
4.

Pre-Bid Conference
For contracts to be bid with an a approved budget of P 1,000,000.00 or more, the BAC shall
convene at least one (1) pre-bid conference to clarify and/ or explain any requirements, terms,
conditions and specifications stipulated in the bidding documents.
For contracts to be bid costing less than P1, 000,000.00, pre- bid conference may be conducted
at the discretion of the BAC. Subject to the approval of the BAC, a pre bid conference may
also conducted upon written request of any prospective bidder.
The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for
the submission and receipt of bids. However, attendance of the bidders shall not be mandatory.
The pre-bid conference shall discuss, among other things, the technical and financial
components of the contract to be bid. The minutes of the pre-bid conference shall be recorded
and made available to all participants not later than three (3) calendar days after the pre-bid
conference.
Request for clarification(s) must be in writing and submitted to the BAC at least ten (10)
calendar days before the deadline set for the submission and receipt for bids. The BAC shall
response to the said request by issuing a Supplement/ Bid Bulletin, at last seven (7) calendar
days before the deadline for the submission and receipt of bids.
Any Supplemental/ Bid Bulletin issued by the BAC shall also be posted on the website of
procuring entity concerned, if available, and on the G-EPS.

5.

Submission and Receipt of Bids

Eligible bidder shall submit their bids through their authorized officer or their duly authorized
representative
In the prescribed Bid Form, including its annexes, as specified in the
bidding documents,

On or before the specified deadline, and

In two (2) separate sealed bid envelopes, the first containing the technical
component of the bid.

Bids submitted after the deadline shall not be accepted by the BAC.
The first envelope (Technical Proposal) shall contain the following technical information/
documents, at the least:
1.
2.
3.
4.
5.
6.
7.

Bid security as to form , amount and validity period;

Authority of signing official;
Construction schedule and S-curve ;
Manpower schedule;
Construction method;
Organization chart for the contract to be bid;
List of contractors personnel (viz., project managers, project engineers , materials
engineers and foremen), to be assigned to the contract to be bid, with their complete
qualification and experience data;
8.
List of contractors equipment units, which are owned, leased, and / or under purchased
agreements, supported by certification of availability of equipment from the equipment
lessor/ vendor for the duration of the project;
9.
Equipment utilization schedule;
10.
Affidavit of site inspection;
11.
Commitment from a licensed to extend to the bidder a credit line if awarded the contract
to be bid, or cash deposit certificate, in an amount not lower than that set by the agency in
the Instruction to Bidders, which shall at least be 10% of the ABC;
12.
Construction safety and health program of the contractor;
13.
Certificate from the bidder under oath of its compliance with existing labor laws and
standards;
14.
A sworn statement attesting compliance to the responsibilities of a prospective bidder;
15.
Documents/ materials to comply with other non-discretionary criteria and requirements
as stated in the Instruction to Bidders.
The second envelope (Financial Proposal) shall contain the following financial information/
documents, at the least:
1.
2.

Bid prices in Bill of Quantities in the prescribed Bid form;

Detailed estimates including a summary sheet indicating the unit prices of construction
materials, labor rates and equipments rentals used in coming up with the bid; and
3.
Cash flow by the quarter and payment schedule.

Modification and Withdrawal of Bids

A bidder may modify its bids, provided that this is done before the deadline for the submission
and receipt of bids. Where a bidder modifies its bid, it shall not be allowed to retrieve its
original bid, but shall only be allowed to send another bid equally sealed properly identified,
marked as a modification. bid modification received after deadline shall not be considered and
shall be returned to the bidder unopened.
A bidder may, trough a letter, withdraw its bid before the deadline for the receipt of bids.
Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions. A
bidder may also express its intention not to participate in the bidding through a letter which
should reach and be stamped received by the BAC before the deadline for the receipt of bids. A
bidder that withdraws its bids shall not be permitted to submit another bid, directly or indirectly,
for the same contract.
Bid Security
The Bid security shall be in an amount at least equal to, and not lower than, a percentage of the
approved budget for the contract to be bid, as advertised by the concerned procuring entity, in a
form of
Form of Security
Cash,
certified
check,
cashiers
check,
Managers check, bank draft or
irrevocable letter of credit.
2.
Bank Guarantee
3.
Surety bond,
callable on demand
4.
Foreign
government guarantee

Minimum Amount in % of Approved

Budget
for the Contract to be Bid

1.

One percent (1%)

One and a half percent (1 % )
Two and a half percent ( 2 %)
One hundred percent (100%)

Bid Opening
The BAC shall open the bids at the time, date and place specified in the Invitation to Apply for
Eligibility and to Bid and the bidding documents. The bidders or their duly authorized
representative may attend the opening of bids. All members of the BAC or their duly authorized
representatives who are present during bid opening shall initial every page of the original copies
of all bids received and opened. The minutes of the bid opening shall be made available to the
public upon written request and payment of a specified fee.
6.

Bid Evaluation

The purpose of bid evaluation is to determine the Lowest Calculated Bid. This bid shall be
subject to post-qualification to determine its responsiveness to the eligibility and bid
requirements. If after post-qualification the Lowest Calculated Bid is determine to be postqualified it shall be considered to the bidder.
Bid Evaluation shall be determined in two steps :
The detailed evaluation of the financial component of the bids, to established
the correct calculated prices of bids; and

The ranking of the total bid prices as so calculated from the lowest to the
highest. The bid with the lowest price shall be identified as the Lowest Calculated Bid

Ceiling of Bid Prices

The approved budget for the contract under bidding shall be the upper limit or ceiling for
acceptable bid prices. If a bid price, as evaluated and calculated in accordance with this IRR, is
higher than the approved budget for the contract under bidding, the bidder submitting the same
shall be automatically disqualified. There shall be no lower limit or floor on the amount of the
award.
Detailed Evaluation of Bids
The BAC shall immediately conduct a detailed evaluation of all bids rated passed using a
non-discretionary criteria, which shall included a consideration of the following:
The bid must be complete. Bids not addressing or providing all of the required items
in the bidding documents including, where applicable, bill of quantities shall be considered
non-responsive, but specifying a 0 (zero) for the said item would mean that its being
offered for free to the Government; and

In case of discrepancies between:

a)
Bid prices in figures and in words, the latter shall prevail.
b)
Total prices and unit prices, the latter shall prevail.
c)
Unit cost in the detailed estimates and unit cost in the bill of quantities, the
latter shall prevail.

Ranking of Total Bid Prices

Based on the detailed evaluation of bids, those that comply with the above-mentioned
requirements shall be ranked in the ascending order of their total calculated bid prices, as
evaluated and corrected for computational errors, discounts and other modification, to identify
the Lowest Calculated Bid. Total calculated bid prices, as evaluated and corrected for
computational errors, discounts and other modification, which exceed the approved budget for
the contract, shall not be considered.
7.

Post-Qualification
The post-qualification shall verify, validated and ascertain all statements made and documents
submitted by the bidder with Lowest Calculated Bid, using non-discretionary criteria. These
criteria shall consider, but shall not be limited to, the following:

a.

Legal Requirements. To verify, validate and certain licenses and agreements

submitted by the bidder and the fact that he is not included in any Government blacklist.
b.
Technical Requirements. To determine compliance with the requirements.
c.
Financial Requirements. To verify, validate and ascertain the bid price proposal of
the bidder and, the amount specified and over the period stipulated in the Instructions to
Bidders.
8.
Award of Contract
Award of contract shall be made to the bidder with the Lowest Calculated Responsive Bid, as its
submitted bid price or its calculated bid price, whichever is lower.

1.

2.
3.
4.

Performance Security
Form of Security
Minimum Amount in % of the
Total Contract Price
Cash, certified
check, cashiers check,
Five percent (5%)
Managers check, bank
draft or irrevocable letter
of credit.
Bank Guarantee
Ten percent (10% )
Surety bond,
Thirty percent (30%)
callable on demand
Foreign
One hundred percent (100%)
government guarantee

Warranty
Defects/Liability Period

Warranty Period

1 Year
Project
Completion

2 to 15 Years
Final
Acceptance

After final acceptance of the project by the Government, the contractor shall be held responsible
for structural defects and/ or failure of the complete projects within the following warranty
periods from final acceptance, except those occasioned by force majeure and those caused by
other parties:

Permanent Structure: Fifteen (15) years. Building of types 4 and 5,

steel and concrete bridges flyovers, concrete aircraft movement areas, ports, dams, diversion
tunnels, causeways, wharves, piers, dikes, filtration and treatment plants, sewerage system,
power plants, transmission and communication towers, railways system, and other similar
structures.

Semi-Permanent Structure: Five (5) years .Buildings types 1,2 and 3,

concrete roads asphalt roads, river control, drainage, irrigation and drainage canals,
municipal ports and river landing deep wells, rock causeways, pedestrian overpass, and
other similar structures; and

Other Structures: Two (2) years. Bailey and wooden bridges, shallow
wells, spring development, and other similar structures.

In cases where structural defects and/ or failure arise during the warranty period the following
persons/ parties shall be held liable:

Contractor - where structural defects and/ or failure arise due to faults attributable to
improper construction use of inferior quality/ substandard materials, and any violation of the
contract plans and specification, the contractors shall be held liable.

Consultant where structural defects and/ or failures arise due to faulty and/ or
inadequate design and specification as well as construction supervision, then the consultant
who prepared the design or undertook construction supervision for the project shall be held.

Procuring Entitys Representative/ Project Manager/ Construction Manager and

supervisor the project owners representative/s project manager, construction managers,
and supervisor/s shall be held liable in cases where the structural defects/ failures are due to
his/ their willful intervention in altering the design and other specification; negligence or
omission in not approving or acting on proposed changes to noted defects or deficiencies in
the design and/ or specifications; and the use of substandard construction materials in the
project.

Third Parties Third parties shall be held liable in case were structural defects/
failure are caused by work undertaken by them such as leaking pipes, digging/ excavations,
underground cables and electrical wires, underground cables and electrical wires,
underground cables and the applicable warranty to such structure should be levied to third
parties for their construction or restoration works.

Users in case where structural defects/ failures are due to abuse/ misuse by the end
user of the constructed facility and/ or non-compliance by a user with the technical design
limits and/ or intended purpose of the same, then the user concerned shall be held liable.
The term Structural Defects shall mean faults/ flaws/ deficiencies in one or more key
structural elements of the competed elements of the project, which may lead to structural failure
of the completed elements or structure.
The term Structural Failures is defined as an occurrence where one or more key structural
elements in an infrastructure facility fails or collapses, thereby rendering the facility or part
thereof incapable of withstanding the design loads, and / or endangering the safety of the users
or the general public.
Bidding for Provincial Projects
Within five (5) years from the effectively of the Act, a contractor who participates in the bidding
of provincial priority programs and infrastructure projects whose principal office is within the
same province, and who submits the Lowest Calculated Bid made by a contractor with principal
office outside the said province, shall be given forty-eight (48) hours from the receipt of written
advice from the BAC to match in writing the Lowest Calculated Bid. Matching shall be through
appropriate adjustments in his unit bid prices without changing the Scope of Work and work
items prescribed by the procuring entity in the bidding documents.

CONTRACT IMPLEMENTATION
Variation Orders - are change orders or extra work orders which should not exceed 10% of the
original project cost.
Variation Orders beyond 10% shall either be subjected to another contract to be bid if the works are
separable from the original contract or if urgently necessary to complete the original scope of work,
be authorized by the head of the procuring entity but not more than 20% subjected to guidelines by
GPPB, but with appropriate sanction to the designer, consultant or official responsible for the
original design.
Supplemental agreement is no longer allowed.
Liquidated Damages shall be imposed for delays in completion of work but Incentive Bonus shall
not be allowed.