CE

LAWS
RULE XV –
DISCLOSURE OF
RELATIONS
SECTION 47. DISCLOSURE OF
RELATIONS

 47.1 All bids shall be accompanied by a sworn

affidavit of the bidder that it is not related to the
HoPE, members of the BAC, the TWG, and the BAC
Secretariat, the head of the PMO or the end-user or
implementing unit, and the project consultants, by
consanguinity or affinity up to the third civil degree.
 Failure to comply with the aforementioned provision
shall be a ground for the automatic disqualification
of the bid in consonance with Section 30 of this IRR.
 RULE XVI

ALTERNATIVE METHODS
OF PROCUREMENT
 Section 48. Alternative Methods

 48.1.Subject to the prior approval of the HoPE,

and whenever justified by the conditions
provided in this Act, the Procuring Entity may, in
order to promote economy and efficiency, resort
to any of the alternative methods of
procurement provided in this Rule
 Section 49. Limited Source
Bidding

 49.1 Limited Source Bidding, otherwise known as

selective bidding, is a method of procurement of
Goods and Consulting Services that involves direct
invitation to bid by the Procuring Entity from the list
of pre-selected suppliers or consultants.
 49.2The pre-selected suppliers or consultants shall
be those appearing in a list maintained by the
relevant government authority that has expertise in
the type of procurement concerned.
Section 50. Direct Contracting

 DirectContracting or single source procurement is

a method of procurement of Goods that does not
require elaborate Bidding Documents.
 Thesupplier is simply asked to submit a price
quotation or a pro-forma invoice together with the
conditions of sale.
 The
offer may be accepted immediately or after
some negotiations.
Section 51. Repeat Order

 RepeatOrder is a method of procurement of

Goods from the previous winning bidder,
whenever there is a need to replenish goods
procured under a contract previously awarded
through Competitive Bidding.
Section 52. Shopping

 52.1.Shopping is a method of procurement of

Goods whereby the Procuring Entity simply
requests for the submission of price
quotations for readily available off-the-shelf
goods or ordinary/regular equipment to be
procured directly from suppliers of known
qualifications.
Section 53. Negotiated
Procurement

 Negotiated Procurement is a method of

procurement of Goods, Infrastructure Projects
and Consulting services, whereby the
Procuring Entity directly negotiates a contract
with a technically, legally and financially
capable supplier, contractor or consultant in
any of the following cases:
 53.1. Two Failed Biddings.
 53.2. Emergency Cases.
 53.3. Take-over of Contracts.
 53.4. Adjacent or Contiguous.
 53.5. Agency to Agency.
 53.6.
Scientific, Scholarly or Artistic Work,
Exclusive Technology and Media Services.
 53.7. Highly Technical
Consultants
 In the case of individual consultants hired to do work
that is:
i. highly technical or proprietary
ii. primarily confidential or policy determining, where trust
and confidence are the primary consideration for the
hiring of the consultant:
Provided, however, That the term of the individual
consultants shall, at the most, be on a six month basis,
renewable at the option of the appointing HoPE, but in no
case shall exceed the term of the latter.
 53.8. Defense Cooperation
Agreement
 Upon prior approval by the President of the
Philippines, and when the procurement for use by
the AFP involves major defense equipment or
materiel and/or defense-related consultancy services.
 when the expertise or capability required is not available
locally, and the Secretary of National Defense has
determined that the interests of the country shall be
protected by negotiating directly with an agency or
instrumentality of another country with which the
Philippines has entered into a defense cooperation
agreement or otherwise maintains diplomatic relations.
53.9. Small Value Procurement.

 Procurement of Goods, Infrastructure

Projects and Consulting Services, where the
amount involved does not exceed the
threshold prescribed in Annex "H" of this
IRR: Provided, That in case of Goods, the
procurement does not fall under shopping in
Section 52 of this IRR.
53.10.Lease of Real Property and
Venue

 Lease of real property and venue for

official use, subject to Annex “H” of this
IRR.
53.11.NGO Participation.

 When an appropriation law or ordinance

earmarks an amount to be specifically
contracted out to Non-Governmental
Organizations (NGOs), the Procuring Entity
may enter into a Memorandum of Agreement
with an NGO, subject to the guidelines16
issued by the GPPB for the purpose.
53.12.Community Participation.

 Where, in the interest of project sustainability or

to achieve certain specific social objectives, it is
desirable in selected projects, or its
components, to call for participation of local
communities in the delivery of goods, including
non-consulting services, and simple
infrastructure projects, subject to the
Community Participation Procurement Manual
(CPPM) issued by the GPPB.
 53.13.United Nations Agencies,
International Organizations or
International Financing Institutions.
 Procurement from specialized agencies of the
United Nations, International Organizations or
International Financing Institutions, of any of the
following:
A. small quantities of off-the-shelf goods, primarily in
the fields of education and health;
B. specialized products where the number of suppliers
is limited, such as but not limited to vaccines or
 Section 54. Terms and
Conditions for the use of
Alternative Methods
 Splitting of Government Contracts is not allowed.
 Splittingof Government Contracts means the division
or breaking up of GoP contracts into smaller
quantities and amounts, or dividing contract
implementation into artificial phases or sub-contracts
for the purpose of evading or circumventing the
requirements of law and this IRR, particularly the
necessity of competitive bidding and the
requirements for the alternative methods of
 For Infrastructure Projects to be implemented
by phases, the Procuring Entity shall ensure
that there is a clear delineation of work for
each phase, which must be usable and
structurally sound.
 Itshall also ensure the conduct of the detailed
engineering activities for each phase as
provided for in Annex “A” of this IRR.
GRACIAS
 ANNEX D
CONTRACT IMPLEMENTATION
GUIDELINES FOR THE PROCUREMENT
OF GOODS, SUPPLIES AND MATERIALS
 4. ADVANCE PAYMENT

4.1. In accordance with Presidential Decree 1445,

advance payment shall be made only after prior approval
of the President, and shall not exceed fifteen percent
(15%) of the contract amount, unless otherwise directed
by the President

4.2 All progress payments shall first be charged against

the advance payment until the latter has been fully
exhausted, unless otherwise approved by the President.
4.3. A single advance payment not to exceed fifty
percent (50%) of the contract amount shall be allowed
for contracts entered into by a procuring entity for the
following services where requirement of down payment
is a standard industry practice:

a) Hotel and restaurant services;

b) Use of conference/seminar and exhibit areas; and
c) Lease of office space.
4.4. Advance payment not to exceed fifteen percent
(15%) of the contract amount, unless otherwise
directed by the President, shall also be allowed for
procurement of goods required to address
contingencies arising from natural or man-made
calamities in areas where a “State of Calamity” has
been declared by appropriate authorities.
4.5. Upon submission of an irrevocable letter of credit
or bank guarantee issued by a Universal or Commercial
Bank, advance payment not to exceed fifteen percent
(15%) of the contract amount shall be allowed and
paid within sixty (60) calendar days from signing of the
contract.
5. OTHER RULES AND GUIDELINES

The rules and regulations for the other aspects of

contract implementation shall be included in the
manuals to be issued by the GPPB, such as, but not
limited to, the following:

a) Incidental Services;
b) Spare Parts;
c) Delays in the Supplier’s Performance;
d) Purchaser’s Responsibilities;
e) Prices; m) Inspections and Tests;
f) Payment; n) Patent Rights;
g) Taxes and Duties; o) Limitations of Liability;
h) Subcontracts; p) Termination for Default;
i) Standards; q) Termination for Insolvency;
j) Packing; r) Termination for Convenience; and
k) Insurance; s) Assignment.
l) Transportation;