Understanding Procurement Law and Process

OBJECTIVES
At the end of this program, the participants should be able

to:
• Gain basic understanding of the Procurement Law
Specifically:
• Know the process of procurement
• Differentiate the alternative modes of procurement
commonly used the Center
PROCUREMENT PLANNING
Budget Indicative APP Project Procurement Budget

Call for next CY Management Plan Officer
Revised GAA HOPE BAC

BAC
PPMPs Secretariat
Budget Proposal
BAC Revised
(through Indicative APP GPPB
BAC Sec) HOPE
APP should be consistent with the approved yearly budget of the Agency
National Expenditure
Program (NEP) submitted
by President to Congress
Start Procurement
Activities short of
award
Corresponding
indicative APP is
approved by HOPE
End-user/Implementing Unit shall
Revised the PPMP
BAC Secretariat shall consolidate
the PPMP into an APP
Revisions to PPMP and the consolidated APP - every 6 months

or as often as may be required by the HOPE. (Sec 7.4 2016
Revised IRR)
Revised APP submitted to GPPB in July of current budget year

and January of the following budget year.
No procurement shall be undertaken unless it is
in accordance with the approved Annual
Procurement Plan of the Procuring Entity.
(Sec 7, RA 9184)
APP-CSE VS. APP
APP-Common-Use Supplies and

Equipment (APP-CSE) APP
• Submitted to DBM-Procurement Service • Submitted to GPPB-TSO within the
on or before 15 November of every year first month of the year
• Pursuant to AO No. 17, s 2012, and BDM • Mandated under Sec 7 of RA 9184.
Cir Letter No. 2013-14
• It must be consistent with the duly
• Purpose is to determine the quarterly
cash requirements for common supplies, approved yearly budget of the PE
materials and equipment of the agency and bears the approval of the HOPE
and for the over-all management of the • The approved budget is
central procurement of common-use
meticulously and judiciously
supplies and equipment by the DBM
planned through the APP
PROJECT PROCUREMENT MANAGEMENT PLAN (PPMP)
END-USER/UNIT: xxx Division
Charged to GAA
Projects, Programs and Activities (PAPs)
QUANTITY/ SCHEDULE/MILESTONE OF ACTIVITIES

ESTIMATED Mode of
CODE GENERAL DESCRIPTION
BUDGET Procurement
SIZE Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

TOTAL BUDGET: -
NOTE: Technical Specifications for each Item/Project being proposed shall be submitted as part of the PPMP
Prepared By: Submitted By:
End-user (name)

PMO
xxx Division
III
Head Head, (name of end-user unit)
PROCUREMEN
T PROCESS
Stages
Preparation of Bid Documents BIDDING
PROCESS
Posting & Advertisement
Pre-Bid Conference
Receipt & Opening of Bids
Bid Evaluation
Post-Qualification
Award & Contract Signing
Contract Implementation
Completion of Contract & Inspection
Acceptance & Payment
Preparation of Bid Documents
Pre-Bid Conference
Bid Evaluation
Post-Qualification
PREPARATION OF BID DOCUMENTS
• ABC
• Bidding documents are
• ITB
available from time of posting
• TOR/Scope of Work of ITB
• Plans/Drawings • Bidding documents is posted
at PE’s website, PhilGEPS from
• Technical Specifications the time ITB is advertised.
• Delivery Time/Completion
Schedule
Specifications
• shall reflect minimum requirements/specifications to meet
the needs of the PE in clear and unambiguous terms
• Shall be based on relevant characteristics, functionality
and/or performance requirements.
Reference to brand name is NOT ALLOWED except

• for items or parts that are compatible with the existing
equipment of the same make and brand, and
• to maintain the performance, functionality and useful life
of the equipment
• Equal Access to Information

• BAC holds Pre-Procurement Conference
• Goods: more than P2M
• Infra: more than P5M
• Consultancy: more than P1M
Pre-Bid Conference
Bid Evaluation
Post-Qualification
POSTING & ADVERTISEMENT
ITB posted continuously for ITB advertise at least once in

7 cd one Newspaper of General
Circulation (No longer
• website of PhilGEPS
applicable on Oct 29, 2018)
• Website of PE • Infra: more than P15M
• conspicuous place • Goods: more than P10M
reserved for this purpose
at the premises of PE • Consultancy: more than
P5M
Pre-Bid Conference
Bid Evaluation
Post-Qualification
PRE-BID CONFERENCE
• at least 12 cd (not earlier than 7 cd from PhilGEPS

posting) before the deadline for submission of bids
• to clarify bid document, discuss technical & financial
components & eligibility requirements
•
• If ABC P1M = mandatory
• If ABC P1M = discretion of BAC
• Bidder may request holding of Pre-bid Conference,
subject to approval of BAC
PRE-BID CONFERENCE
MINUTES of the Pre-bid Conference

• recorded and prepared not later than 5 cd
after the pre-bid conference
• made available to prospective bidders not
later than 5 days upon written request
PRE-BID CONFERENCE
SUPPLEMENTAL/BID BULLETIN
• to clarify or modify any provision of the Bidding Documents
• may be issued motu proprio
• Issued at least 7cd before the deadline of submission and receipt of
bids
• Made available to all those who have properly secured the Bidding
documents
• Posted in the PhilGEPS, website of PE and conspicuous place within PE
premises
• To be binding on bidders, clarifications and amendments to ITB/Bidding
Docs shall be in the form of supplemental/Bid Bulletin.
PRE-BID CONFERENCE
Requests for clarification/interpretation

• must be in writing
• submitted to the BAC at least 10 cd before
the deadline of submission and receipt of
bids
• Answered through Supplemental/Bid
Bulletin
Pre-Bid Conference
Bid Evaluation
Post-Qualification
RECEIPT & OPENING OF BIDS
• conduct preliminary examination of the bid

proposal using “pass/fail criteria”
• 1st Envelope – Eligibility & Technical
Component
• 2nd Envelope – Financial Component
FIRST ENVELOPE
Legal Technical Financial

Document Document Document
Omnibus
JVA, If
Bid Security Sworn
applicable
Statement
Technical
Specifications
FIRST ENVELOPE

Omnibus
JVA, If
Bid Security Sworn
applicable
Statement
Technical
Specifications
Class “A” Documents
FOREIGN BIDDER
• When the goods are not available from local
• Reciprocity rights suppliers
• Certification fr relevant govt regulatory
• certification from the relevant body that based on its available records,
govt office of their country goods are not available fr Local
Suppliers
stating that Filipinos are
allowed to participate in their • No local supplier is interested to
participate
govt procurement activities
• When there is a need to prevent situations
for the same item/product that defeat competition or restrain trade
• When provided for under treaty • Goods sought are from an exclusive
or executive agreements local manufacturer, supplier, distributor
or dealer through Direct Contracting, PE
must post at its website and PhilGEPS an
invite to foreign manufacturers to
• Flag Law (CA 138) has been submit manifestation of its intention to
repealed by the Phil Competition participate within the prescribed period,
if there is conduct public bidding
Act of 2015 (RA 10667)
FOREIGN BIDDERS
• Control Test
• For infra: less than 75%
• For goods: less than 60%
• Eligibility requirements, the bids and all other documents to be submitted to
the BAC must be in English.
• If in foreign language, must be accompanied by a translation of the documents in
English, translated by a relevant foreign government agency authorized to translate
documents, or a registered translator in the foreign bidder’s country and
authenticated by the appropriate Phil foreign service establishment having
jurisdiction over the foreign bidder’s affairs in the Philippines.
FIRST ENVELOPE
Legal Document Technical Document Financial Document
Omnibus Sworn
JVA, If applicable Bid Security
Statement
Technical
Specifications/Project
Requirements
FIRST ENVELOPE-Technical
Class “A” Documents (For Goods
Class “A” Documents (For Goods)
• Statement of Single Largest Completed Contract (SLCC)
• Should be at least 50% of the ABC
• For expendable goods: at least 25% of the ABC (expendable, life
expectancy of not more than 1yr, converted in the process of
manufacture/ construction, consumed in use w/n 1yr)
• Aggregate computation: at least 2 similar contracts the aggregate total is
at least 50% of the ABC, the largest of which is at least 25% of the ABC
• Contractors under Small A and Small B without similar experience may
be allowed to bid if the cost of such contract is not more than the
Allowable Range of Contract Cost (ARCC) of their PCAB registration
• Small A ARCC is up to P500,000 (Cir No. 1 s. 2009)
• Small B ARCC is up to P15M (Cir No. 1 s. 2009)
Class “A” Documents (For Infra)
For Joint Venture,

PCAB Licenses shall be for the
Joint Venture
FIRST ENVELOPE
Omnibus Sworn
Statement
Technical
Requirements
• Audited financial statements, stamped “received” by the

Bureau of Internal Revenue (BIR) or its duly accredited and
authorized institutions, for the preceding calendar year,
which should not be earlier than two (2) years from bid
submission;
FIRST ENVELOPE-Financial
• NFCC = ABC
[(current asset minus
current liabilities) x 15] • Or committed Line of
minus the value of all Credit from a Universal/
outstanding/uncompleted Commercial Bank at least
portions of ongoing contracts
10% of the ABC to be bid
• Values shall be based on (for Goods only)
the latest Audited Financial
Statement Submitted to the
BIR
FIRST ENVELOPE-Financial
FIRST ENVELOPE
Omnibus Sworn
Statement
Technical
Requirements
Class “B”Documents
• JVA in case the joint venture is already in existence, or

• duly notarized statements from all the potential joint
venture partners stating that they will enter into and
abide by the provisions of the JVA in the instance that
the bid is successful.
FIRST ENVELOPE
Class “B” Documents
Note:
• Each partner shall submit PhilGEPS Certificate
• Submission of Technical and Financial Eligibility by any of the
partner constitutes compliance
• Partner to submit NFCC shall submit Statement of on-going
contracts and Audited Financial Statements
FIRST ENVELOPE
FIRST ENVELOPE
Omnibus Sworn
Statement
Technical
Requirements
Bid Security
Form Amount
Bid Securing Declaration 0%
Cash or cashier’s/manager’s check, bankdraft/guarantee
confirmed by a Universal or Commercial Bank 2%
Irrevocable letter of credit issued by a Universal or Commercial 2%
Bank
Surety bond callable upon demand issued by a surety or
insurance company duly certified by the Insurance Commission 5%
as authorized to issue such security
FIRST ENVELOPE
Bid Security
• Guarantee that the successful bidder shall, w/n 10 cd from

receipt of NOA, enter into contract with PE and furnish the
performance bond required
• Failure to enclose - automatically disqualified
• Returned after the bidder with the LCRB has signed the
contract and furnished the performance security
• If post-disqualified, bidder must submit a written waiver
of their right to file a request for reconsideration
FIRST ENVELOPE
Bid Securing Declaration Form
FIRST ENVELOPE

Omnibus
JVA, If
Bid Security Sworn
applicable
Statement
Technical
Specifications
Omnibus Sworn Statement
FIRST ENVELOPE
FIRST ENVELOPE
Omnibus Sworn
Statement
Technical
Requirements
Technical Specifications (For Goods)
May include:
• Production or Delivery Schedule
• Manpower Requirements
• After-sales service/parts (for equipment)
• Warranty
FIRST ENVELOPE
Project Requirements (For Infra)
• Organizational chart for the contract to be bid
• List of contractor’s personnel to be assigned to the contract to

be bid, with their complete qualification and experience data
• List of contractor’s equipment units, which are owned, leased

and/or under purchase agreements, supported by proof of
ownership or certification of availability of equipment from
the equipment lendor/vendor for the duration of the project,
as the case may be.
FIRST ENVELOPE
FIRST ENVELOPE
• Eligibility Requirements [bidders may submit PhilGEPS

Certificate (Platinum) in lieu of the following]
• Registration Certificate
• Mayor’s Permit
• Tax Clearance
• PCAB License
• Audited Financial Statement
SECOND ENVELOPE
Financial Bid Form as prescribed
• Includes bid prices, bill of quantities (where applicable) and
applicable price schedules
• Bids should include the cost of ALL taxes, such as VAT, income tax,
local taxes and other fiscal levies and duties which shall be itemized
in the bid form and reflected in the detailed estimates.
• If the bidder claims preferences as domestic bidder or domestic
entity, a certification from the DTI In accordance with ITB Clause 27.2;
• Other documents required in the BDS.
• Each and every page of the Bid Form and shall be signed by the duly
authorized representative
RECEIPT & OPENING OF BIDS
• Withdrawal letter before the deadline for the

receipt of bids.
• Letter expressing intention not to participate in
the bidding before the deadline for the receipt of
bids
BID OPENING
• Late bids shall not be accepted

• the bidder’s name, its representative and the time of submission
must be recorded in the minutes of bid submission and opening
• Unsealed or unmarked bid envelope shall be rejected
• Abstract of Bids as Read and Minutes of the Bid Opening shall
be made available to the public upon written request and
payment of fee to recover cost of materials.
BID OPENING
• Bid envelopes that are not properly sealed and marked shall be
accepted
• bidder or its duly authorized must representative acknowledge
such condition of the bid as submitted
• BAC shall assume no responsibility for the misplacement of the
contents of the improperly sealed or marked bid, or for its premature
opening.
• Notice of Postponement to be posted at PhilGEPS and website of PE if
bids cannot be opened as scheduled due to justifiable reasons.
• ALL members of the BAC who are present during bid opening shall
initial every page of the original copy of the bids received and opened.
BID VALIDITY
• In no case shall exceed 120 cd

• If necessary to extend the validity of bids and bid security,
PE shall requests in writing all those who submitted bids
for extension before expiration
• Bidders may refuse without forfeiting their bid security.
Pre-Bid Conference
Bid Evaluation
Post-Qualification
Passed
PRELIMINARY EXAMINATION OF BIDS
Failed
• Opened in public to determine compliance with the eligibility and

technical requirements
• Documents submitted are check against a checklist to ascertain if they
are all present using non-discretionary “Pass/Fail” criterion
• If first envelope is rated as “passed”, second envelope is opened
• Only bids that are determined to contain all the bid requirements for
both components shall be rated “Passed” and shall be immediately be
considered for evaluation and comparison
CEILING FOR BID PRICES
• ABC is the upper limit or ceiling

• If bid price, as evaluated and calculated is higher than the ABC,
automatically disqualified
• No lower limit or floor on the amount of the award
BID EVALUATION
• Members of the BAC, its staff and personnel, Secretariat

and TWG, as well as Observers, are prohibited from
making or accepting any communication with any bidder
regarding the evaluation of their bids.
• Except BAC may ask in writing the bidder for a clarification of its
bid in writing.
• Entire evaluation shall be completed within 7 cd days from
the deadline for receipt of proposals
BID EVALUATION
The following shall be considered in the detailed evaluation of the bid proposal:
1. Completeness of the bid

• Bids not addressing all the
requirements is deemed non- 2. Arithmetical corrections
responsive = automatically
disqualified • Consider computation
• Bid item is provided but no errors and omissions
price is indicated = considered
as non-responsive
• Specifying 0 or a dash for said
item would mean it is offered
for free to the GoP
ABSTRACT OF BIDS
• Contains:
• Name of contract and its location, if applicable
• Time, date and place of bid opening
• Names of bidders and their corresponding calculated bid prices arranged
from lowest to highest, the amount of bid security and the name of the
issuing entity
• Signed by all members of the BAC
• Bids with their corresponding bid securities and minutes of the
bidding are attached
Pre-Bid Conference
Bid Evaluation
Post-Qualification
POST-QUALIFICATION
• Conducted to determine whether the bidder

concerned complies with and is responsive to all
requirements and conditions as specified in the
bidding documents
POST-QUALIFICATION
• LCB submits
• latest income and business tax returns and
• other appropriate licenses and permits required by law as stated in the
bid documents
• Within 5 cd from receipt by the bidder of the notice from the
BAC that it is the LCB/HRB
• Failure to submit will disqualify the bidder
• If there is a finding against the veracity of any of the document
submitted, forfeiture of bid security
POST-QUALIFICATION
• BAC verifies, validates and ascertain all

statements made and documents submitted by
the Lowest Calculated Bid:
1. Legal Requirements
• Verify, validate and ascertain licenses, certificates,
permits, and agreements submitted by the bidder
• Not included in the Blacklist
POST-QUALIFICATION
2. Technical Requirements
• bidder’s stated competence and experience, and the competence and experience
of the bidder’s key personnel to be assigned to the project
• availability and commitment, and/or inspection and testing of the required
capacities and operating conditions, of equipment units to be owned/leased/under
purchase by the bidder for use in the contract under bidding, and checking the
performance of the bidder in its ongoing govt and private contracts.
• Verification and/or inspection of the goods/products, after-sales and/or
maintenance capabilities, in applicable cases
• authenticity of the bid security and its correctness as to type, amount, form and
wording, and validity period, as required in the bidding documents.
POST-QUALIFICATION
3. Financial Requirements
• bid price proposal of the bidder, whenever applicable, the
required committed L/C in the amount specified and over the
period stipulated in the Bidding Documents,
• Bidder’s NFCC to ensure that the bidder can sustain the operating
cash flow of the transaction.
POST-QUALIFICATION
• If LCB passed all the criteria for post-qualification

• BAC shall declare the said bid as LCRB and recommends to
HOPE the award of contract to said bidder
• If LCB failed
• notify the said bidder in writing of post-disqualification and
the grounds for it
• BAC shall initiate and complete post-qualification on the

second LCB
POST-QUALIFICATION
• Completed in not more than 12 cd from the

determination of the LCB
• If first LCB is post-disqualified, Fresh period to
conduct the post-qual of next LCB
• Second bidder shall be post-qualified as the bidder
with the LCRB if it passes the post-qual, provided
that the request of first bidder for reconsideration
has been denied
FAILURE OF BIDDING
• Grounds:
• No bids are received
• All prospective bidders are declared ineligible
• All bids fail to comply with all the bid requirements or fail post-
qualification
• Bidder with the LCRB/SCRB refuses, without justifiable cause, to
accept the award of contract, and no award is made
• Mandatory review shall be conducted to determine the
reason for the failed bidding and make the revisions
accordingly
REBIDDING
• Should be conducted immediately; should not exceed fifteen (15) days after
the declaration of the first failure of bidding
• The period may be extended up to 30 days upon approval of the HoPE;
• The same periods shall be observed for Negotiated Procurement under Two
Failed Biddings modality reckoned from the declaration of the second failure
of bidding; and
• If the procurement cannot be undertaken within such periods, the BAC shall
make a report to the HoPE so that the latter can make the appropriate
decision to facilitate the procurement or take other proper action.
GPPB Resolution No. 30-2016, dated 20 April 2016
SINGLE CALCULATED RESPONSIVE BID
1. only ONE prospective bidder applies for eligibility check,

• meets the eligibility requirements and
• bid is found to be responsive
2. more than one prospective bidder

• only one bidder meets the eligibility requirements
3. more than one prospective bidder meets the eligibility
requirements
• only one bidder submits a bid
Pre-Bid Conference
Bid Evaluation
Post-Qualification
AWARD & CONTRACT SIGNING
• BAC shall submit to HoPE the following:

• Resolution of the BAC recommending award
• Abstract of Bids
• Duly approved program of work/delivery schedule, and
Cost Estimates
• Document issued by appropriate entity authorizing the PE
to incur obligations for a specified amount
• Other pertinent documents required by existing laws, rules
15 cd to decide 10 cd fr
receipt Bidder post
BAC of NOA Performance
HOPE Yes Issue
Resolution Security, PE
Appro NOA
ved? and signs K
3 cd 7 cd fr
No approval
Notify Other
Issue NTP
bidders of 3 cd
recommendation
Post PhilGEPS,
15 cd fr receipt
website and
of NOA
conspicuous place
Notice of Disapproval,
stating grounds NTP and K posted
at PhilGEPS
HOPE
Appro Notice of 3 cd
ved? Disapproval, Bidder
No stating grounds files MR
7 cd
MR must first be resolved
before any award is made HOPE resolves
appeal with finality
Performance Security
Form Amount
Cash or cashier’s/manager’s check,
bankdraft/guarantee confirmed by a Universal or 5%/10%
Commercial Bank
Irrevocable letter of credit issued by a Universal or 5%/10%
Commercial Bank
Surety bond callable upon demand issued by a surety
or insurance company duly certified by the Insurance 30%
Commission as authorized to issue such security
To guarantee the faithful performance by the winning bidder of its

obligations under the contract.
Shall remain valid until the issuance of the Certificate of Final Acceptance
• Validity should be extended to cover approved contract time extensions
FAILURE TO ENTER INTO CONTRACT AND
POST PERFORMANCE SECURITY
• If the bidder with the LCRB/SCRB fails, refuses or is unable

to make good its bid by entering into a contract with the
PE or post the required Performance Security within the
prescribed period
• Bid security shall be forfeited with appropriate sanctions
• BAC shall disqualify said Bidder and initiate and complete the
post-qual of the next LCB
RESERVATION CLAUSE
The HoPE reserves the right to reject any and all bids, declare
a failure of bidding or not award the contract in the following
situations;
1. Prima facie evidence of collusion (EE of PE & Bidders, BAC
& bidders, among bidders, bidder & 3rd party
2. BAC is found to have failed in following the prescribed
bidding procedures
RESERVATION CLAUSE
3. For any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the GoP, as follows:
a. If the physical and economic conditions have significantly changed so s to
render the project no longer economically, financially, or technically
feasible, as determined by the HoPE
b. If the project is no longer necessary, determined by the HoPE
c. If the source of funds for the project has been withheld or reduced
through no fault of the PE
Bidding documents fee may be refunded

PERIOD OF ACTION
• Procurement process from the opening of bids up to the

award of contract shall not exceed 3 months
• If no action on the contract is taken by the HoPE within the
prescribed period, the contract concerned shall be deemed
approved
• Earliest possible time for goods and infra is 26 cd (Pre-proc
to Issuance of NTP)
• Maximum period allowed for goods is 136; for infra,
141/156 cd (Pre-proc to Issuance of NTP)
Pre-Bid Conference
Bid Evaluation
Post-Qualification
CONTRACT IMPLEMENTATION
• BAC issues Notice to Proceed to winning bidder

• Supplier/Contractor commences implementing
contract terms
MOBILIZATION/ADVANCE PAYMENT
• GR: Max 15% of the Contract • Exc: For Goods = 50% of

Amount Contract Amount
• Requirements: • Hotel and restaurant services
• Request Letter • Use of conference/seminar
• Irrevocable Letter of Credit – and exhibit areas
Consultancy • Lease of office space
• Bank Guarantee –
Consultancy & Goods
• Surety Bond – Consultancy,
Goods & Infrastructure
LIQUIDATED DAMAGES
• 1/10 of 1% of the unperformed works/undelivered goods

for every day of delay until such goods are finally delivered
and accepted by PE.
• Goods : Total sum of LD must not exceed 10% of the
contract price
• PE may rescind the contract and impose sanctions
over and above the LD
LIQUIDATED DAMAGES
• Infra: Completion of work exceeds 10% of time duration of

contract time plus any time extension granted
• PE may rescind the contract, forfeit Performance Security and
takeover the prosecution of the contract/Take-over K
• Ongoing project: negative slippage of 15% or more is due to
contractors fault, PE may terminate contract
• Contract time has expired: negative slippage of 10% or more is
due to contractors fault, PE may terminate contract
Pre-Bid Conference
Bid Evaluation
Post-Qualification
COMPLETION OF CONTRACT &
INSPECTION
• Supplier notifies Agency Head of Completion of Contract

terms
• Agency Head inspects deliveries of goods as to compliance
with contract terms
COMPLETION OF CONTRACTS (INFRA)
• 95% of contract amount is completed

• PE may create inspectorate team to make preliminary inspection
and submit a punch-list to the contractor for the final turn-over of
the project
• Punch-list covers remaining works, work deficiencies for necessary
corrections, specific duration/time to fully complete the project
considering the approved remaining contract time.
Pre-Bid Conference
Bid Evaluation
Post-Qualification
ACCEPTANCE & PAYMENT
• Agency issues Certificate of Acceptance (goods)/Certificate of

Completion and Acceptance (infra)
• Progress payments are subject to retention fee
• Goods: 1-5%; Infra - 10%
• Due for release:
• Expendable supplies – min of 3 mos or after consumption
• Non-expendable supplies – min of 1 year
• For Infra: upon final acceptance (1 year from date of Certificate of Completion)
• Retention fee shall cover uncorrected discovered defects and third party
liabilities.
WARRANTY
• Goods
• Covered by Retention fee
• Infra
• Performance bond must cover from commencement of project
from final acceptance
• Defects liability period (from project completion to final
acceptance)
• Contractor shall undertake the repair works, at his own expense, of
any damage to the infrastructure on account of the use of materials
of inferior quality
• Warranty against structural defects (1 year from final acceptance)
PROTEST
Start File Petition for
HoPE resolves the protest Certiorari before
with finality w/in 7 days
from receipt of verified the RTC
File Request for protest
Reconsideration
w/in 3 days from
notification
File Protest to HoPE

No
7 days to and pay filing fee w/in
decide 7 days from receipt of
resolution fr BAC
BAC
grants
request?
yes
Ends
PERIOD OF ACTION ON PROCUREMENT
ACTIVITIES (GOODS)
Activities Period
Advertisement/Posting of Invitation to 7 cd
Bid/Request for Expression of Interest
Issuance and availability of Bidding Documents from 1st day of Advertisement until Receipt
and Submission of Bids
Pre-bid Conference 12 cd before Receipt and Submission of Bids
Request for clarification 10 cd before Receipt and Submission of Bids
Supplemental/Bid Bulletin 7 cd before Receipt and Submission of Bids
(max) 45 cd from last day of Advertisement for
Submission and Receipt of Bids Goods.
Submission of additional requirements 5 cd from receipt of Notice as bidder with LCB
Bid Evaluation 1 to 7 cd
ACTIVITIES (GOODS)
Activities Period
2 to 45 cd (1 cd to notify bidder;
Postqualification aggregate of 12 cd/post qual)
Approval of resolution/Issuance of Notice 1 to 15 cd
of Award
Contract Preparation and Signing 1 cd to 10 cd
Issuance of Notice to Proceed 1 cd to 7 cd
Total Time 26 cd to 136 cd
ACTIVITIES (INFRASTRUCTURE)
Activities 50M and below above 50M

Advertisement/Posting of
Invitation to Bid/Request for 7 cd
Expression of Interest
Issuance and availability of from 1st day of Advertisement until Receipt and
Bidding Documents Submission of Bids
Pre-bid Conference 12 cd before Receipt and Submission of Bids
Request for clarification 10 cd before Receipt and Submission of Bids
Supplemental/Bid Bulletin 7 cd before Receipt and Submission of Bids
65 cd from last day of
50 cd from last day of Advertisement for
Submission and Receipt of Advertisement for Infrastructure Projects.
Bids Infrastructure Projects.
PERIOD OF ACTION ON
PROCUREMENT ACTIVITIES
(INFRASTRUCTURE)
Activities 50M and below above 50M

5 cd from receipt of Notice as bidder with
Submission of additional requirements LCB
Bid Evaluation 1 to 5 cd
Postqualification 2 cd to 30 cd
Approval of resolution/Issuance of Notice 1 to 15 cd
of Award
Contract Preparation and Signing 1 to 10 cd
Issuance of Notice to Proceed 1 to 7 cd
Total Time 26 cd to 141 cd 26 cd to 156 cd
DISCLOSURE OF RELATIONS
• HOPE, Members of the BAC, TWG, BAC Secretariat, end-

user, project consultants
• By consanguinity or affinity up to the 3rd civil degree
• Sole proprietorship – bidder himself
• Partnership – all its officers and members
• Corporation – all its officers, directors and controlling
stockholders
• Bidders who have conflicting interest with each other
GENERAL MODE OF PROCUREMENT
ALTERNATIVE METHODS OF
PROCUREMENT
• Limited Source Bidding
• Direct Contracting
• Repeat Order
• Shopping
• Negotiated Procurement
• 2-failed bidding
• Emergency cases
• Take-over of contracts
• Adjacent or contiguous
• Agency-to-agency
• Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services
• Highly Technical Consultants
• Defense Cooperative Agreement
• Small Value Procurement
• Lease of Real Property
• NGO Participation
• Community Participation
• United Nations Agencies, International Organizations or International Financing Institutions
TERMS AND CONDITIONS FOR THE USE OF
ALTERNATIVE METHODS
1. No splitting of contracts
2. Post the Invitation or RFQ for at least 3 cd for
• Shopping for ordinary office supplies and equipment not available in the DBM-PS (50,000 to
an amount not exceeding P1,000,000)
• Two-failed biddings
• Small value procurement
•
3. In all instances of alternative methods of procurement, the PO/K, NO/NTP shall be
posted in PhilGEPS, website of PE and conspicuous place at PE except for contracts
P50,000
4. Submission of bid securities may be dispensed with except for Limited Source Bidding.
5. Method of procurement is as indicated in the APP; if different, BAC shall justify and
recommend the changed in method of procurement to be approved by HOPE.
DIRECT CONTRACTING (Sec. 50)
1. Procurement of Goods of proprietary nature which can be obtained only from the
proprietary source
1. E.g. IP rights
2. When the procurement of critical components from a specific supplier is a
condition precedent to hold a contractor to guarantee its project performance, in
accordance with the provision of its contract
3. Those sold by an exclusive dealer or manufacturer which does not have sub-dealers
selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the GOP
• End-user must justify the necessity of an item that may only be procured through
Direct Contracting and prove that there is no suitable substitute in the market that
can be obtained at a more advantageous terms.
REPEAT ORDER (Sec. 51)
• For goods only
• Conditions:
• Original contract previously awarded through competitive bidding
• Unit prices must be the same as or lower than those in the original contract
• Will not result in splitting of contracts or POs
• Shall be availed of only within 6 months from contract effectivity stated in the
NTP
• Shall not exceed 25% of the quantity of each item in the original contract
• Goods must be quantifiable, divisible and consisting of at least 4 units/item.
• End-user shall prepare the PR and justification why repeat order is being
pursued.
SHOPPING (Sec. 52)
• Method of procurement of GOODS
• Employed in the following cases:
• Unforeseen contingency requiring immediate purchase
• For readily available off-the-shelf goods or ordinary/regular equipment
• For unforeseen contingency requiring immediate purchase - Threshold Amount is
P200,000
• For ordinary/regular office supplies not available in PS - threshold amount is P1,000,000
• RFQ sent to at least 3 suppliers, and at least 3 price quotations must be obtained from
bona fide suppliers
• Ordinary or regular office supplies – include those supplies, commodities or materials
which are necessary in the transaction of official business, and consumed in day-to-day
operations.
SMALL VALUE PROCUREMENT (SEC 53.9)
• Procurement of Goods that does not fall under shopping,

Infrastructure Projects and Consultancy
• RFQs/RFPs shall be sent to at least 3 suppliers, contractors, or
consultants; receipt of at least 1 quotation is sufficient to proceed with
the evaluation
• Threshold amount is P1,000,000
• Pre-bid conference may be held at discretion of BAC
NEGOTIATED PROCUREMENT
(2-FAILED BIDDINGS) (Sec. 53.1)
• Mandatory review of the terms, conditions, specifications and cost

estimates
• ABC cannot be increased by more than 20%
• BAC shall invite and engage in negotiations with at least 3 suppliers,
contractors or consultants, including those disqualified in previous
biddings. Proceed with the negotiation even if only 1 bidder
responded to invite
• Following completion of negotiation, PE shall request all suppliers to
submit their best and final offer
• PE shall select the successful offer on the basis of such best and final
offers which meets the PE minimum technical requirements
NEGOTIATED CONTRACTS
TAKE-OVER OF CONTRACT (Sec 53.3)
Instances:
1. The contract, previously awarded through Competitive
Bidding, has been rescinded or terminated for causes
provided for in the contract and existing laws
2. Where immediate action is necessary:
a. To prevent damage to or loss of life or property, or
b. To restore vital public services, infrastructure facilities and other
public utilities
NEGOTIATED CONTRACTS
TAKE-OVER OF CONTRACT (Sec 53.3)
• BAC shall post-qualify and negotiate with the second LCRB for the project
under consideration at the said bidder’s own original bid price, applicable to
the remaining works to be done.
• If negotiation fails, then the BAC shall post-qualify and negotiate with the next
LCRB at the said bidder’s own original bid price.
• If negotiation fails and there is no bidder left from the previous bidding or if
the bidder is the SCRB, the BAC may either invite at least 3 suppliers,
contractors or consultants to submit their bids, or resort to any other
appropriate alternative methods of procurement.
• In case of successful post-qualification and negotiation, BAC shall recommend
to HOPE the award of contract with the said supplier, contractor or consultant.
(ADJACENT OR CONTIGUOUS) (Sec 53.4)
• For on-going infrastructure or consulting services

• Adjacent or contiguous
• In infra – it refers to projects that are in actual physical contact with each
other or in the immediate vicinity such that the required equipment and
other resources can easily be mobilized.
• In consultancy - it pertains to the linkage or relationship of the subject
matters, outputs or deliverables required.
(ADJACENT OR CONTIGUOUS) (Sec 53.4)
1. Original contract is the result of competitive bidding
2. The subject contract to be negotiated has similar or related scopes of work
3. It is within the contracting capacity of the contractor/consultant (e.g. NFCC,
PCAB License, SLCC)
4. Contractor/consultant uses the same prices or lower unit prices as in the
original contract less mobilization cost.
1. unit prices of the new items are equal to or lower than the prevailing market prices.
5. ABC of the contiguous/adjacent work involved does not exceed the contract
amount of the ongoing project
6. Contractor/consultant has no negative slippage/delay
7. Negotiations for the procurement are commenced before the expiry of the
original contract
(SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES )(Sec
53.6)
• For Goods, Infrastructure, and Consulting Services

(SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES )(Sec
53.6)
• Also for Construction/installation of infra facility where the
material, equipment, or technology under a proprietary
right can only be obtained from the same contractor.
• Must justify use of this method through a market study;
the study should confirm that the supplier, contractor or
consultant could undertake the project at more
advantageous terms.
• Market study must be conducted prior to the
commencement of the procurement process.
(HIGHLY TECHNICAL CONSULTANTS) (Sec
53.7)
• Individual Consultants hired to do work that is
• Highly technical or proprietary
• Primarily confidential or policy determining where trust and
confidence are the primary consideration for the hiring of the
consultant
• Term: a 6 months basis, renewable at the option of the
HOPE
• The End-user shall justify to the BAC the engagement of the
individual
• For individuals engaged under Sec.
53.6, 53.7 and 53.9 of the IRR of RA
9184, only the BIR Certificate of
Registration shall be submitted in lieu
of Mayor’s Permit.
• Required documentation under Sec
53.6 shall not apply to artists, such as
singers, performers, poets, writers,
performers, painter and sculptor who
are not engaged in business
• Certificate of Platinum Membership
may be submitted in lieu of Mayor’s
Permit and PhilGEPS Registration
Notes
• Exemption to PCAB License
• Contracts of P10,000 of less subject to a maximum total of P25,000/year, project
owners constructing without contractors provided that the structure is for personal
use/occupation only and not intended for income generating purposes
• Except for Shopping and SVP, BAC shall recommend to the HOPE the award of
Contract, HOPE shall approved/disapproved the recommendation, issue the
NOA if approved, sign the PO/K provided all doc req are submitted and issue
NTP.
REQUIRED SECURITY
Alternative Method Performance Security Warranty Security

Limited Source Bidding Required for highly specialized
types of goods
Direct Contracting
Repeat Order
Two-failed Bidding
Take-over of Contracts
Adjacent/Contiguous For Infra: required
Small Value Procurement For infra: required depending on the nature of the
For goods: depending on project
the nature of the project
AMENDMENT TO ORDERS (GOODS)
• Issued only in emergency cases or during fortuitous events requiring

necessary adjustments within the general scope of the contract in any
or more of the ff:
• Drawings, design or specifications
• Method of shipment or packing, or
• Place of delivery
• Additional items are needed and necessary for the protection of the
goods which were not included in the original contract
• Must not exceed cumulative amount of 10%
VARIATION ORDERS (INFRA)
• Change Order
• To cover any increase/decrease in quantities of original work items in the contract
• Should be within the general scope of the project as bid and awarded
• Extra Work Order
• To cover the introduction of new work necessary for the completion, improvement
or protection of the project which was not included as items of work in the original
contract
VARIATION ORDERS (INFRA)
• Must not exceed cumulative positive Variation Order of 10% of the original
contract Price
• Processing must not exceed 30 days from preparation to approval
• May be issued by PE any time during contract implementation
• No shortchanges in the original design
• Will not affect the structural integrity and usefulness of the structure
• Covered by a CAF (Cert of Availability of Funds)
PENAL CLAUSE
• Without prejudice to RA 3019 and other penal laws, public officers who
commit any of the ff acts shall suffer the penalty of
• imprisonment of not less than 6 years and 1 day, but not more than 15 years
• Temporary disqualification from public office (public officer; permanently
disqualified from transacting business with the government (private individual)
PENAL CLAUSE
• Opening any sealed bid prior to the appointed time for the public opening of
bids
• Delaying without justifiable cause, the screening for eligibility, opening of bids,
evaluation and post evaluation of bids, and awarding of contracts beyond the
prescribed action
• Splitting of contracts
• Unduly influencing or exerting undue pressure on any member of the BAC or
any EE of the PE to take a particular action which favors, or tends to favor a
particular bidder.
LEGAL ASSISTANCE AND
INDEMNIFICATION
• ALL the members of the BAC are hereby authorized to engage the services of private
lawyers or external counsel immediately upon receipt of Court Notice that a civil or
criminal action, suit or proceeding is filed against them in connection with the lawful
performance of their official functions and duties as BAC members.
• BAC Member/Support Staff
• A party to a pending or completed action, suit or proceeding
• must have engaged the services of a private lawyer
• Must not have been adjudged as guilty of gross negligence, misconduct or grave abuse of
discretion
• Free legal assistance shall cover actual cost of suit and attorney’s fees
• Atty’s appearance fee max of P5,000/appearance
• Entitled to actual, moral and exemplary damages when awarded by the court
LEGAL ASSISTANCE AND
INDEMNIFICATION
• Free Legal Assistance does not cover

• Action initiated by BAC member/support staff except if authorized by the HOPE
• Action is initiated by the GOP against the BAC member/ support staff

Understanding Procurement Law and Process

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Understanding Procurement Law and Process

Hochgeladen von

Copyright:

Verfügbare Formate

OBJECTIVES

At the end of this program, the participants should be able

Budget Indicative APP Project Procurement Budget

Revised GAA HOPE BAC

Revisions to PPMP and the consolidated APP - every 6 months

Revised APP submitted to GPPB in July of current budget year

APP-Common-Use Supplies and

END-USER/UNIT: xxx Division

Projects, Programs and Activities (PAPs)

QUANTITY/ SCHEDULE/MILESTONE OF ACTIVITIES

Reference to brand name is NOT ALLOWED except

• Equal Access to Information

ITB posted continuously for ITB advertise at least once in

• at least 12 cd (not earlier than 7 cd from PhilGEPS

MINUTES of the Pre-bid Conference

Requests for clarification/interpretation

• conduct preliminary examination of the bid

Legal Technical Financial

Legal Technical Financial

Legal Document Technical Document Financial Document

For Joint Venture,

Legal Document Technical Document Financial Document

• Audited financial statements, stamped “received” by the

Legal Document Technical Document Financial Document

• JVA in case the joint venture is already in existence, or

Legal Document Technical Document Financial Document

• Guarantee that the successful bidder shall, w/n 10 cd from

Legal Technical Financial

Legal Document Technical Document Financial Document

• Organizational chart for the contract to be bid

• List of contractor’s personnel to be assigned to the contract to

• List of contractor’s equipment units, which are owned, leased

• Eligibility Requirements [bidders may submit PhilGEPS

• Withdrawal letter before the deadline for the

• Late bids shall not be accepted

• In no case shall exceed 120 cd

• Opened in public to determine compliance with the eligibility and

• ABC is the upper limit or ceiling

• Members of the BAC, its staff and personnel, Secretariat

1. Completeness of the bid

• Conducted to determine whether the bidder

• BAC verifies, validates and ascertain all

• If LCB passed all the criteria for post-qualification

• BAC shall initiate and complete post-qualification on the

• Completed in not more than 12 cd from the

1. only ONE prospective bidder applies for eligibility check,

2. more than one prospective bidder

• BAC shall submit to HoPE the following:

To guarantee the faithful performance by the winning bidder of its

• If the bidder with the LCRB/SCRB fails, refuses or is unable

Bidding documents fee may be refunded

• Procurement process from the opening of bids up to the

• BAC issues Notice to Proceed to winning bidder

• GR: Max 15% of the Contract • Exc: For Goods = 50% of

• 1/10 of 1% of the unperformed works/undelivered goods

• Infra: Completion of work exceeds 10% of time duration of

• Supplier notifies Agency Head of Completion of Contract

• 95% of contract amount is completed

• Agency issues Certificate of Acceptance (goods)/Certificate of

File Protest to HoPE

Activities 50M and below above 50M

Activities 50M and below above 50M

• HOPE, Members of the BAC, TWG, BAC Secretariat, end-