CAPACITY DEVELOPMENT DIVISION

GOVERNMENT PROCUREMENT POLICY BOARD

TECHNICAL SUPPORT OFFICE (GPPB-TSO)

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 PROCUREMENT STANDARD

GENERAL RULE : Sec. 10

All procurement shall be done through competitive
bidding, except as provided in Rule XVI of the IRR.
EXCEPTION
Alternative methods shall be resorted only:
1. In highly exceptional case
2. To promote economy and efficiency
3. Justified by the conditions specified in IRR
4. Prior approval of the HOPE
5. GPPB approval as required under EO 423, S. 2005
(as amended)
6. Most advantageous price for the Government

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 ALTERNATIVE METHODS

1. Limited Source Bidding

2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement

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 LIMITED SOURCE BIDDING
(Sec. 49)
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

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 LIMITED SOURCE BIDDING
List shall be maintained by the relevant government
authority (RGA)
PE may be the relevant government authority
List shall be updated periodically and submitted to the
GPPB

Pre-selection shall 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

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 LIMITED SOURCE BIDDING
PRE-SELECTION PROCEDURES PER GPM
GPPB Resolution 06-2012

PE through BAC
Acquires/Issues a Pre-
identifies LSB as
selected List
applicable mode

HOPE transmits list to

the GPPB

GPPB-TSO
PE posts procurement
acknowledges receipt
opportunity and
and posts the list in the
conducts LSB
website (ministerial)

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 LIMITED SOURCE BIDDING
PRE-SELECTION PROCEDURES
GPPB Resolution 06-2012

Relevant Y Request for a

Government
List
Authority?

N
PE
represents Y Limited
itself as the Issues a List? Source
RGA (self- Bidding
generated list
N

Competitive
Bidding

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 LIMITED SOURCE BIDDING
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 component; otherwise,
Competitive Bidding shall apply. (NPM 63-2013)

Catering Services does not involve highly specialized

requirements, and is undoubtedly not a major plant
component. Limited Source Bidding cannot be resorted
to in the procurement of Catering Services. Competitive
Bidding should be resorted to in the acquisition of the
contemplated service. (NPM 61-2013)

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 DIRECT CONTRACTING
APPLICABILITY:
Goods

CONDITIONS:

Items of proprietary nature from proprietary source

Critical components from a specific supplier to hold a
contractor to guarantee its project performance
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

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 DIRECT CONTRACTING

Since there are other Passport Readers available in

the market apart from that manufactured by 3M
Corporation, Direct Contracting cannot be utilized for
the acquisition of brand new passport readers.

Even though 3M Passport Reader is proprietary in

nature and can be obtained from the proprietary
source, there may be other Passport Readers in the
market, which are likewise proprietary in nature that
can be obtained. (NPM 41-2013)

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 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
2. No splitting of contracts
3. Availed of within 6 months from the contract
effectivity date stated in the NTP arising from the
original contract, except in cases duly approved by the
GPPB
4. Not to exceed 25% of the quantity of each item
5. Original contract awarded through competitive
bidding
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 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. (NPM 13-2013)

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 SHOPPING
APPLICABILITY [52.1(A) AND (B)]:
Goods

CONDITIONS [SHOPPING UNDER 52.1(A)]:

1. There is an unforeseen contingency requiring immediate
purchase
2. Amount does not exceed the threshold

CONDITIONS [SHOPPING UNDER 52.1(B)]:

1. Procurement of ordinary or regular office supplies and
equipment not available in PS-DBM
2. Amount does not exceed the threshold

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 THRESHOLD FOR UNFORESEEN
CONTINGENCIES [S. 52.1(a)]

NGAs, GOCCs, GFIs, SUCs PhP100,000

LGUs
Maximum Amount (in Philippine Pesos)
Classification
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

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 NEGOTIATED PROCUREMENT
SMALL VALUE PROCUREMENT

APPLICABILITY
All types of Procurement

CONDITIONS:
1. Procurement does not fall under Shopping
[52]
2. Amount does not exceed the threshold

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 SHOPPING [S 52.1(b)] AND
SMALL VALUE PROCUREMENT
NGAs, GOCCs, GFIs, SUCs PhP500,000

LGUs
Maximum Amount (in Philippine Pesos)
Classification
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

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 SHOPPING and SMALL VALUE
PROCUREMENT
Decision to resort to shopping/SVP shall be reflected
in the Annual Procurement Plan (APP)
After approval, BAC may delegate execution
Posting in PhilGEPS required if amount is >
PhP50,000
Request for Quotation
Extension of deadline for submission of quotation
Award
PE to validate legal, technical, and financial capability
through relevant documents or other means

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 SHOPPING and SMALL VALUE
PROCUREMENT COMMITTEE (SSVPC)

Attach copy of DILG Department Order

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 SHOPPING and SMALL VALUE
PROCUREMENT
PROCEDURAL GUIDELINES:

Send RFQ to at
least 3 suppliers Prepare Abstract
Prepare RFQ
[may be 1 in case of Quotations
of 52.1(a)]

Award to
Extend deadline if
LCB/HRB that
no quotation is
complies with
received
specs and ABC

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

APPLICABILITY
All types of Procurement

CONDITIONS:
1. Two failed biddings
2. Mandatory review of the following:
Minimum technical specifications
ABC, which may be adjusted up to 20% from
last bidding

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

BAC shall invite and engage in negotiations with

sufficient number of suppliers, contractors or
consultants to ensure effective competition

Requirements, guidelines, documents, clarifications,

or other information relative to the negotiations shall
be communicated on an equal basis

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

Submission of best and final offer by suppliers,

contractors, or consultants 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 be invited in all stages

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

PROCEDURAL GUIDELINE

Submission and
Preparation of Invitation of
opening of 1st
RFQ bidders
offer

Submission and
Negotiation with opening of best Awarding of
bidders and final offer contract
(2nd offer)

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

Where the PE failed to receive any quotations for the

procurement of the services of a private counsel
despite posting twice in the PhilGEPS website, the
procuring entity has the discretion to resort to
alternative methods of procurement, subject to
compliance with the parameters and factors laid out
in RA 9184 and its associated IRR. (NPM 09-2013)

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 NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

PE can only resort to Negotiated Procurement under

Section 53.1 (Two-Failed Biddings) of the IRR of RA
9184 for the procurement of the Project if the two-
failed biddings were due to circumstances
enumerated under Section 35 of the same IRR.

If the failure of bidding is due to the declaration by

the HOPE pursuant to Section 41 of the IRR ,
Negotiated Procurement (Two Failed Biddings)
cannot be resorted to. (NPM 72-2013)

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 NEGOTIATED PROCUREMENT
EMERGENCY CASES
APPLICABILITY:
All types of Procurement

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
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

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 NEGOTIATED PROCUREMENT
TAKE-OVER OF CONTRACTS

APPLICABILITY:
All types of Procurement

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

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 NEGOTIATED PROCUREMENT
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

If negotiation fails, invite a short list of at least 3 to

submit bids and negotiate starting with the LCB or
HRB

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 NEGOTIATED PROCUREMENT
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

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 NEGOTIATED PROCUREMENT
ADJACENT OR CONTIGUOUS

4. Within the contracting capacity of the

contractor/consultant
5. The same prices or lower unit prices as the
original contract less mobilization cost
6. Amount does not exceed amount of the on-going
project
7. No negative slippage
8. Negotiations commenced before expiry of original
contract

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 NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
APPLICABILITY:
All types of Procurement

CONDITIONS:
1. Cost-benefit analysis indicating A-to-A is more efficient and
economical
2. A-to-A does not exceed 25% of PEs total budget for each
category (goods, infra, consulting)
3. Servicing agency has mandate to undertake the project
4. Servicing agency owns or has access to necessary tools
required for the project

Other requirements provided in Implementing Guidelines on

Agency-to-Agency Arrangements (GPPB Resolution 18-2007)

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 NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
PITC Pharma, Inc. (PPI) has been given express mandate
to be the central/lead agency for procurement of all
government agencies requirements for drugs and
medicines pursuant to RA 9501. However, RA 9501 does
not exempt it from the procurement policies, rules and
regulations established under RA 9184 and its IRR.
PPI is not exempt from posting a Performance Security
under 39 of RA 9184 and its IRR when entering into a
contract with other government agencies and the PE
requires such security. (NPM 37-2013)

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 NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
For the procurement of CTC, the more appropriate method to be
used is A to A rather than Direct Contracting

In cases where procurement from another agency of the

government is more efficient and economical, Negotiated
Procurement under Section 53.5 (Agency-to-Agency
Agreements) may be resorted to. This rule allows a government
entity to procure from another government entity without need
of public bidding, subject to compliance with the prescribed
conditions and procedures under existing rules and the
Guidelines on Agency-to-Agency Agreements
(Guidelines). (NPM 52-2013)

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 NEGOTIATED PROCUREMENT
PROCUREMENT AGENT
APPLICABILITY:
All types of Procurement

CONDITIONS:
HOPE has determined that PE does not have procurement
proficiency or capability to undertake a particular procurement

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 staff in the management of the
procurement function

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 NEGOTIATED PROCUREMENT
PROCUREMENT AGENT
Where a PE has determined that it lacks the proficiency or
capability to undertake its rehabilitation project, which need not
be based solely on the PEs failure to constitute its BAC, the PE
may request another government agency to be its Procurement
Agent as Section 53.6 of the IRR may also apply in cases where a
BAC is validly constituted, but due to the number of bidding
activities to be undertaken by the procuring entity; magnitude
and complexity of the project; experience of the members of the
BAC; location and situs of both the principal and the agent; and,
other valid and reasonable circumstances, the procuring entity
may not have the proficiency or capability to undertake the
particular procurement activity. (NPM 38-2013)

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 NEGOTIATED PROCUREMENT
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
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

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 NEGOTIATED PROCUREMENT
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 (GPPB Resolution 08-2009)

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

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 NEGOTIATED PROCUREMENT
NGO PARTICIPATION

APPLICABILITY:
All types of Procurement

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 (GPPB Resolution 12-2007)

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 NEGOTIATED PROCUREMENT
COMMUNITY PARTICIPATION

APPLICABILITY:
Delivery of goods, including non-consulting services and simple
infrastructure projects

CONDITIONS:
1. In the interest of project sustainability or to achieve certain
specific social objectives
2. PE to propose procedures, specifications, and contract
packaging for GPPB approval

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 NEGOTIATED PROCUREMENT
UN AGENCIES

APPLICABILITY:
All types of Procurement

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)

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 OTHER TERMS AND CONDITIONS
Most advantageous price for government should be obtained (S48.1)
Splitting of contracts strictly prohibited (S54.1)
Advertisement and posting for the following methods may be dispensed
with provided that the BAC through its Secretariat shall post the
Invitation or Request for Submission of Price Quotations:
Shopping [52.1(b)]
Except: PhP50,000 and below
Negotiated Procurement under Two Failed Biddings [53.1]
NGO Participation [53.11]

Small Value Procurement [53.9]

Except: PhP50,000 and below
 OTHER TERMS AND CONDITIONS

ALL awards should be posted, except

Shopping and Small Value Procurement with ABC of
PhP50,000 and below

Bid security NOT necessary, except in Limited Source Bidding

Performance and warranty securities necessary, except:

Shopping [52]
Emergency Cases [53.2]
Small Value Procurement [53.9]
Lease of Real Property [53.10]
Procurement from UN agencies [53.13]

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 SUMMARY

Method Goods Infrastructure Consulting

1. Limited Source Bidding

2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
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 SUMMARY

Negotiated Procurement Goods Infra Consulting

1. Small Value Procurement

2. Two Failed Biddings

3. Emergency Cases

4. Take Over Contracts

5. Adjacent or Contiguous

6. Agency to Agency

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 SUMMARY

Negotiated Procurement Goods Infra Consulting

7. Procurement Agent

8. Highly Technical Consultants

9. Lease of Real Property

10. NGO Participation

11. Community Participation

12. UN Agencies

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 THANK YOU!!

Contact us at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

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