General
1. Scope of Bid
1.1. The PROCURING ENTITY named in the BDS (hereinafter referred
to as the “PROCURING ENTITY”) wishes to receive Bids for
supply and delivery of the goods as described in Section VII.
Technical Specifications (hereinafter referred to as the goods”)
I hereof (hereinafter referred to as the “GOODS”).
1.2. The name, identification, and number of lots specific to this
bidding are provided in the BDS. The contracting strategy and
basis of evaluation of lots is described in ITB Clause 28.
2. Source of Funds
2.1. The PROCURING ENTITY has a budget or has applied for or received
funds from the funding source named in the BDS. It intends to apply
part of the funds received for the project, as defined in the BDS to
cover eligible payments under the contract.
3. Corrupt, Fraudulent, and Coercive Practices
3.1. Unless otherwise specified in the BDS, the Procuring entity as
well as the bidders & suppliers shall observe the highest
standard of ethics during the procurement and execution of
the contract. In pursuance of this policy, the PROCURING
ENTITY:
(a) defines, for purposes of this provision, the terms set
forth below as follows:
“corrupt practice” means behavior on the part of
officials in the public or private sectors by which they
improperly and unlawfully enrich themselves, others, or
induce others to do so, by misusing the position in
which they are placed, and includes the offering, giving,
receiving, or soliciting of anything of value to influence
the action of any such official in the procurement
process or in contract execution; entering, on behalf of
the Government, into any contract or transaction
manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit
thereby, and similar acts as provided in Republic Act
3019.
(b) “fraudulent practice” means a misrepresentation of
facts in order to influence a procurement process or the
execution of a contract to the detriment of the
PROCURING ENTITY, and includes collusive practices
among Bidders (prior to or after Bid submission)
designed to establish Bid prices at artificial, non-
competitive levels and to deprive the PROCURING
ENTITY of the benefits of free and open competition.
c. “collusive practices” means a scheme or
arrangement between two or more Bidders, with or
without the knowledge of the PROCURING ENTITY,
designed to establish Bid prices at artificial, non-
competitive levels.
d. “coercive practices” means harming or threatening
to harm, directly or indirectly, persons, or their
property to influence their participation in a
procurement process, or affect the execution of a
contract;
e. “obstructive practice” is deliberately destroying,
falsifying, altering or concealing evidence material to
an administrative proceedings or investigation or
making false statements to investigators in order to
materially impede an administrative proceedings or
investigation of the Procuring Entity or any foreign
government/foreign or international financing
institution into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening,
harassing or intimidating any party to prevent it
from disclosing its knowledge of matters relevant to
the administrative proceedings or investigation or
from pursuing such proceedings or investigation; or
acts intended to materially impede the exercise of
the inspection and audit rights of the Procuring
Entity or any foreign government/foreign or
international financing institution herein.
3.2. Further, the PROCURING ENTITY will seek to impose the
maximum civil, administrative and/or criminal penalties
available under applicable laws on individuals and
organizations deemed to be involved in any of the practices
mentioned in ITB clause (a).
3.3. Furthermore, the Funding Source and the PROCURING ENTITY
reserve the right to inspect and audit records and accounts of a
supplier or contractor in the bidding for and performance of a
contract themselves or through independent auditors as
reflected in the GCC Clause 3.
4. Conflict of Interest
4.1. All Bidders found to have conflicting interests shall be disqualified to
participate in the procurement at hand, without prejudice to the
imposition of appropriate administrative, civil, and criminal
sanctions. A Bidder may be considered to have conflicting interests
with another Bidder in any of the events described in paragraphs (a)
through (c) below and a general conflict of interest in any of the
circumstances set out in paragraphs (d) through (f) below:
(a) A Bidder has controlling shareholders in common with
another Bidder;
(b) A Bidder receives or has received any direct or indirect
subsidy from any other Bidder;
(c) A Bidder has the same legal representative as that of
another Bidder for purposes of this Bid;
(d) A Bidder has a relationship, directly or through third
parties, that puts them in a position to have access to
information about or influence on the Bid of another
Bidder or influence the decisions of the PROCURING
ENTITY regarding this bidding process. This will include
a firm or an organization who lends, or temporarily
seconds, its personnel to firms or organizations which
are engaged in consulting services for the preparation
related to procurement for or implementation of the
project if the personnel would be involved in any
capacity on the same project;
(e) A Bidder submits more than one Bid in this bidding
process. However, this does not limit the participation
of subcontractors in more than one Bid; or
(f) A Bidder who participated as a consultant in the
preparation of the design or technical specifications of
the GOODS and related services that are the subject of
the Bid.
4.2. In accordance with Section 47 of the IRR-A of R.A. 9184, all
Bidding Documents shall be accompanied by a sworn affidavit
of the Bidder that it is not related to the
head of the PROCURING ENTITY by consanguinity or affinity up
to the third civil degree or any of the PROCURING ENTITY’s
officers or employees having direct access to information that
may substantially affect the result of the bidding, such as, but
not limited to, the members of the BAC, the members of the
Technical Working Group (TWG), the BAC Secretariat, the
members of the Project Management Office (PMO), and the
designers of the project. This Clause shall apply to the
following persons:
(a) If the Bidder is an individual or a sole proprietorship, to
the Bidder himself;
(b) If the Bidder is a partnership, to all its officers and
members;
(c) If the Bidder is a corporation, to all its officers, directors,
and controlling stockholders; and
(d) If the Bidder is a joint venture (JV), the provisions of
items (a), (b), or (c) of this Clause shall correspondingly
apply to each of the members of the said JV, as may be
appropriate.
Relationship of the nature described above or failure to
comply with this Clause will result in the automatic
disqualification of a Bidder.
5. Eligible Bidders
5.1. Unless otherwise indicated in the BDS, the following persons
shall be eligible to participate in this Bidding:
(a) Duly licensed Filipino citizens/sole proprietorships;
(b) Partnerships duly organized under the laws of the
Philippines and of which at least sixty percent (60%) of
the interest belongs to citizens of the Philippines;
(c) Corporations duly organized under the laws of the
Philippines, and of which at least sixty percent (60%) of
the outstanding capital stock belongs to citizens of the
Philippines;
(d) Cooperatives duly registered with the Cooperatives
Development Authority (CDA).
(e) Unless otherwise provided in the BDS, persons/entities
forming themselves into a JV, i.e., a group of two or
more persons/entities that intend to be jointly and
severally responsible or liable for a particular contract:
Provided, however, that Filipino ownership or interest of
the joint venture concerned shall be at least sixty
percent (60%).
5.2. Foreign Bidders may be eligible to participate when any of the
following circumstances exist, as specified in the BDS:
(a) When a treaty or international or Executive Agreement
as provided in Section 4 of R.A. 9184 and its IRR allow
foreign bidders to participate;
(b) Citizens, corporations, or associations of the country,
included in the list issued by the GPPB, the laws or
regulations of which grant reciprocal rights or privileges
to citizens, corporations, or associations of the
Philippines;
(c) When the Goods sought to be procured are not
available from local
suppliers; or
(d) When there is a need to prevent situations that defeat
competition or restrain trade.
5.3. Government corporate entities may be eligible to participate
only if they can establish that they (a) are legally & financially
autonomous, (b) operate under commercial law, and (c) are not
dependent agencies of the GOP or the Procuring Entity.
5.4. Unless otherwise provided in the BDS, the Bidder must have
completed at least one contract similar to the project the value
of which, adjusted to current prices using the National
Statistics Office consumer price index, must be at least
equivalent to a percentage of the ABC stated in the BDS.
For this purpose, contracts similar to the project shall be those
described in the BDS, and completed within the relevant period
stated in the Invitation to Bid and ITB.
5.5. The Bidder must submit a computation of its Net Financial
Contracting Capacity (NFCC) or a commitment from a Universal
or Commercial Bank to extend a credit line in its favor if
awarded the contract for this Project (CLC).
The NFCC, computed using the following formula, must be at
least equal to the ABC to be bid:
NFCC = [(Current assets minus current liabilities) (15)] minus
the value of all outstanding or uncompleted portions of the
projects under ongoing contracts; including awarded contracts
yet to be started coinciding with the contract for this Project.
The CLC must be at least equal to ten percent (10%) of the
ABC for this project. If issued by a foreign bank, it shall be
confirmed or authenticated by a Universal or Commercial bank.
In the case of local government units (LGUs), the Bidder may
also submit CLC from other banks certified by the Bangko
Central ng Pilipinas (BSP) as authorized to issue such financial
instrument.
7. Origin of Goods
Unless otherwise indicated in the BDS, there is no restriction on the
origin of goods other than those prohibited by a decision of the UN
Security Council taken under Chapter VII of the Charter of the
United Nations, subject to ITB Clause 27.1
8. Sub-Contracts
8.1. Unless otherwise indicated in the BDS, the Bidder may sub-
contract portions of the Goods to an extent as may be
approved by the Procuring Entity and stated in the
BDS. However, subcontracting of any portion shall not relieve
the Bidder from any liability or obligation that may arise from
the contract for this project.
8.2. Subcontractors must comply with the eligibility criteria and the
documentary requirements specified in the BDS. In the event
that any subcontractor is found by the Procuring Entity to be
ineligible, the subcontracting of such portion of the goods shall
be disallowed.
8.3. The Bidder may identify the subcontractor to whom a portion of the
Goods will be sub-contracted at any stage of the bidding process or
during contract implementation. If the Bidder opts to disclose the
name of the subcontractor during bid submission, the Bidder shall
include the required documents as part of the technical component
