Government Procurement Law (R.A.

9184)

GENERAL PRINCIPLES
All procurement of the national government, its departments, bureaus, offices and agencies, including state
universities and colleges, government -owned and/or-controlled corporations, government financial
institutions and local government units, shall, in all cases, be governed by these principles:
(a) Transparency in the procurement process and in the implementation of procurement contracts.
(b) Competitiveness by extending equal opportunity to enable private contracting parties who are
eligible and qualified to participate in public bidding.
(c) Streamlined procurement process that will uniformly apply to all government procurement. The
procurement process shall be simple and made adaptable to advances in modern technology in order
to ensure an effective and efficient method.
(d) System of accountability where both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of procurement contracts and the private parties
that deal with government are, when warranted by circumstances, investigated and held liable for
their actions relative thereto.
(e) Public monitoring of the procurement process and the implementation of awarded contracts with
the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of this Act
and its implementing rules and regulations, and that all these contracts are performed strictly
according to specifications.

SCOPE AND APPLICATION

Applicable to:
 Procurement of Infrastructure Projects, Goods and Consulting Services
• regardless of source of funds
• whether local or foreign
• by all branches and instrumentalities of government, its departments, offices and agencies,
including government-owned and/or-controlled corporations and local government units,
subject to the provisions of Commonwealth Act No. 138.
• Any treaty or international or executive agreement affecting the subject matter of this Act to
which the Philippine government is signatory shall be observed.

DEFINITION OF TERMS
(a) Approved Budget for the Contract (ABC)
budget for the contract duly approved by
 the Head of the Procuring Entity, as provided for in the General Appropriations Act and/or continuing
appropriations, in the National Government Agencies;
 the Corporate Budget for the contract approved by the governing Boards, pursuant to E.O.No.518,
series of 1979, in the case of Government Financial Institutions and State Universities and Colleges;
and
 the Budget for the contract approved by the respective Sanggunian, in the case of Local Government
Units.

(b) BAC - refers to the Bids and Awards Committee

The BAC and its Composition.

 Each procuring entity shall establish a single BAC for its procurement.
 The BAC shall have at least five (5) members, but not more than seven (7) members.
 It shall be chaired by at least a third ranking permanent official of the procuring entity other than its
head, and its composition shall be specified in the IRR.
 Alternatively, as may be deemed fit by the head of the procuring entity, there may be separate BACs
where the number and complexity of the items to be procured shall so warrant.
 Similar BACs for decentralized and lower level offices may be formed when deemed necessary by
the head of the procuring entity. The numbers of the BAC shall be designated by the Head of
Procuring Entity. However, in no case shall the approving authority be a member of the BAC.
 Unless sooner removed for cause, the members of the BAC shall have a fixed term of one (1) year
reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring
Entity.

1
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
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 the evaluation of bids,
 undertake post-qualification proceedings,
 recommend award of contracts to the Head of the Procuring Entity or his duly authorized
representative
 recommend the imposition of sanctions and
 perform such other related functions as may necessary, including the creation of a Technical Working
Group from a pool of technical, financial and/or legal experts to assist in the procurement process
 In proper cases, recommend to the Head of the Procuring Entity the use of Alternative Methods of
Procurement
 responsible for ensuring that the Procuring Entity abides by the standards set forth by this Act and the
IRR
 prepare a procurement monitoring report that shall be approved and submitted by the Head of the
Procuring Entity to the GPPB on a semestral basis

Observers.

To enhance the transparency of the process, the BAC shall, in all stages of the procurement process, invite
 a representative of the Commission on Audit and
 at least two(2) observers to sit in its proceedings
• one (1) from a duly recognized private group in a sector or discipline relevant to the
procurement at hand, and
• one (1)from a non-government organization
• Provided, however, That they do not have any direct or indirect interest in the contract to be
bid out.
• The observers should be duly registered with the Securities and Exchange Commission and
should meet the criteria for observers as set forth in the IRR.

(c) Bidding Documents

documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a
prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be
provided.

(d) Bid
signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in
response to the Bidding Documents

(e) Competitive Bidding

method of procurement which is open to participation by any interested party and which consist of the
following processes: advertisement, pre-bid conference, eligibility screening of bids, evaluations of bids, post
- qualification, and award of contract

(f) Consulting Services

services for Infrastructure Projects and other types of projects or activities of the Government requiring
adequate external technical and professional experts that are beyond the capability and/or capacity of the
government to undertake such as, but not limited to: (I) advisory and review services; (ii) pre investment or
feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi)
other technical services or special studies.

(g) G – EPS – refers to Government Electronic Procurement System

 serve as the primary and definitive source of information on government procurement
 authorized to approve changes in the procurement process to adapt to improvements in modern
technology
(h) Goods
 all items, supplies, materials and general support services except consulting services and
infrastructure projects
• which may be needed in the transaction of the public businesses or
• in the pursuit of any government undertaking, project or activity
• whether in the nature of equipment, furniture, stationery, materials for construction, or
personal property of any kind
2
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
 • including non - personal or contractual services such as the repair and maintenance of
equipment and furniture, as well as trucking, hauling, janitorial, security, and related or
analogous services, as well as procurement of materials and supplies provided by the
procuring entity or such services.

(i) GPPB - refers to the Government Procurement Policy Board

The board is established to:
(a.) protect national interest in all matters affecting public Procurement, having due regard to the country's
regional and international obligations;
(b.) formulate and amend, whenever necessary, the IRR and the corresponding standard forms for
Procurement;
(c) ensure that Procuring Entities regularly conduct Procurement training programs and prepare a
Procurement operations manual for all offices and agencies of government; and
(d) conduct an annual review of the effectiveness of this Act and recommend any amendments thereto, as
may be necessary.

(j) Head of the Procuring Entity

(i) the head of the agency or his duly authorized official, for national government agencies;
(ii) the governing board or its duly authorized official, for government-owned and/or-controlled corporations;
or
(iii) the local chief executive, for local government units
 In a department, office or agency where the procurement is decentralized, the Head of each
decentralized unit shall be considered as the Head of the Procuring Entity subject to the limitations
and authority delegated by the head of the department, office or agency.

(k) Infrastructure Projects

include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads
and bridges, railways, airports, seaports, communication facilities, civil works components of information
technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste
management systems, shore protection, energy/power and electrification facilities, national buildings, school
buildings and other related construction projects of the government.

(l) IRR - refer to the implementing rules and regulations

(m) Portal
a website that aggregates a wide variety of content for the purpose of attracting a large number of users

(n) Procurement
 acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the
Procuring Entity
 also include the lease of goods and real estate

(o) Procuring Entity

 any branch, department, office, agency, or instrumentality of the government, including state
universities and colleges, government-owned and/or - controlled corporations, government financial
institutions, and local government units procuring Goods, Consulting Services and Infrastructure
Projects.

PROCUREMENT PROCEDURES

Preparation of bidding documents

Form and Contents of Bidding Documents.

The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals
prescribed by the GPPB. The Bidding Documents shall include the following:
(a) Approved Budget for the Contract;
(b) Instructions to Bidders, including criteria for eligibility, bid evaluation and post-qualification, as
well as the date, time and place of the pre-bid Conference (where applicable), submission of bids and
opening of bids;
(c) Terms of Reference;
(d) Eligibility Requirements;
(e) Plans and Technical Specifications;
(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
(g) Delivery Time or Completion Schedule;
(h) Form and Amount of Bid Security;
3
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
 (i) Form and Amount of Performance Security and Warranty; and,
(j) Form of Contract, and General and special Conditions of Contract.

The Procuring Entity may require additional document requirements or specifications necessary to complete
the information required for the bidders to prepare and submit their respective bids.

Reference to Brand Names.- Specifications for the Procurement of Goods shall be based on relevant
characteristics and/or performance requirements. Reference to brand names shall not be allowed.

Access to Information.- In all stages of the preparation of the Bidding Documents, the Procuring entity shall
ensure equal access to information. Prior to their official release, no aspect of the Bidding Documents shall
be divulged or released on any prospective bidder or having direct or indirect interest in the project to be
procured.

Invitation to Bid

Pre-Procurement Conference. - Prior to the issuance of the Invitation to Bid, the BAC is mandated to hold a
pre-procurement conference on each and every procurement, except those contracts below a certain level or
amount specified in the IRR, in which case, the holding of the same is optional.

The pre- procurement conference shall assess the readiness of the procurement in terms of confirming the
certification of availability of funds, as well as reviewing all relevant documents and the draft Invitation to
Bid, as well as consultants hired by the agency concerned and the representative of the end -user.

Advertising and Contents of the Invitation to Bid. - In line with the principle of transparency and
competitiveness, all Invitations to Bid contracts under competitive bidding shall be advertised by the
Procuring Entity in such manner and for such length of time as may be necessary under the circumstances, in
order to ensure the widest possible dissemination thereof, such as, but not limited to, posting in the Procuring
Entity's premises, in newspapers of general circulation, the G-EPS and the website of the Procuring Entity, if
available. The details and mechanics of implementation shall be provided in the IRR to be promulgated under
this Act.

Contents. The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;
(b) A general statement on the criteria to be used by the Procuring entity for the eligibility check, the
short listing of prospective bidders, in the case of the Procurement of Consulting Services the
examination and evaluation of Bids, and post-qualification;
(c) The date, time and place of the deadlines for the submission and receipt of the eligibility
requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening of
bids;
(d) The Approved Budget for the Contract to be bid;
(e) The source of funds;
(f) The period of availability of the Bidding Documents, and the place where these may be secured
(g) The contract duration; and
(h) Such other necessary information deemed relevant by the Procuring Entity.

Pre-bid Conference. - At least one pre-bid conference shall be conducted for each procurement, unless
otherwise provided in the IRR. Subject to the approval of the BAC, a pre-bid conference may also be
conducted upon the written request of any prospective bidder.

The Pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of the bids
to allow prospective bidders to adequately prepare their bids, which shall be specified in the IRR.

Receipt and Opening of Bids

Eligibility Requirements for the Procurement of Goods and Infrastructure Projects.

The BAC or, under special circumstances specified in IRR, its duly designated organic office
• shall determine the eligibility of prospective bidders for the procurement of Goods and Infrastructure
Projects, based on the bidders' compliance with the eligibility requirements within the period set forth
in the Invitation to Bid.

The eligibility requirements shall provide for fair and equal access to all prospective bidders.

4
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
The documents submitted in satisfaction of the eligibility requirements shall be made under oath by the
prospective bidder or by his duly authorized representative certifying to the correctness of the statements
made and the completeness and authenticity of the documents submitted.

A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said
bidder shall later on certify under oath as to correctness of the statements made and the completeness and
authenticity of the documents submitted.

Eligibility requirements and Short Listing for Consulting Services.

The Eligibility of prospective bidders for the Procurement of Consulting Services
• shall be determined by their compliance with the eligibility requirements prescribed for the
competitive Bidding concerned, within the period stated in the Invitation to bid.

The prospective bidder shall certify under oath as to the correctness of the statements made, and the
completeness and authenticity of the documents submitted.

The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the short
listing requirements prescribed for the Competitive Bidding concerned, within the period stated in the
Invitation to Bid to determine the short list of bidders who shall be allowed to submit their respective bids.

Submission and Receipt of Bids

A bid shall have two(2) components, namely:
1. the technical components and
2. the financial components

Subject to the following rules:

a. The bids’ components should be in separate sealed envelopes, and which shall be submitted
simultaneously.
b. The bids shall be received by the BAC on such date, time and place specified in the invitation to bid.
c. The deadline for the receipt of bids shall be fixed by the BAC, giving the prospective bidders sufficient
time to study and prepare their bids.
d. The deadline shall also consider the urgency of the procurement involved. Bids submitted after the
deadline shall not be accepted.

The GPPB may prescribe innovative procedure for the submission, receipt and opening of bids through the
G-EPS.

Modification of Bids.
A bidder may modify his bid, provided that this is done before the deadline for the receipt of bids. The
modification shall be submitted in a sealed envelope duly identified as a modification of the original bid and
stamped received by the BAC.

Withdrawal of Bids.
A bidder may, through a letter, withdraw his bid or express his intention not to participate in the bidding
before the deadline for the receipt of bids. In such case, he shall no longer be allowed to submit another Bid
or the same contract either directly or indirectly.

Bid Security.
All Bids shall be accompanied by a Bid security, which shall serve as guarantee that, after receipt of the
Notice of Award, the winning bidders shall enter into contract with the Procuring Entity within the stipulated
time and furnish the required performance security. The specific amounts and allowable forms of the Bid
security shall be prescribed in the IRR.

Bid Validity.
Bids and Bid securities shall be valid for such reasonable period of time indicated in the Bidding Documents.
The duration for each undertaking shall take into account the time involved in the process of Bid evaluation
and award of contract.

Bid Opening.
The BAC shall publicly open all bids at the time, date, and place specified in the bidding documents. The
minutes of the bid opening shall be made available to the public upon written request and payment of a
specified fee.

5
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
Bid Evaluation

Preliminary Examination of Bids.

Prior to Bid evaluation, the BAC shall examine first the technical components of the bids using "pass/fail"
criteria to determine whether all required documents are present. Only bids that are determined to contain all
the bid requirements of the technical component shall be considered for opening and evaluation of their
financial component.

Ceiling for Bid Prices.

The ABC shall be the upper limit or ceiling for the Bid prices. Bid prices that exceed this ceiling shall be
disqualified outright from further participating in the bidding. There shall be no lower limit to the amount of
the award.

Bid for the Procurement of Goods and Infrastructure Projects.

• The BAC shall evaluate the financial component of the bids.
• The bids that passed the preliminary examination shall be ranked from lowest to highest in terms of
their corresponding calculated price shall be referred to as the "Lowest Calculated Bid".

Bid Evaluation of Short Listed Bidders for Consulting Services.

• The Bids of the short listed bidders shall be evaluated and ranked using numerical ratings in
accordance with the evaluation criteria stated in the Bidding Documents, which shall include factors
such as, but not limited to, experience, performance, quality or personnel, price and methodology.
• The Bids shall be ranked from highest to lowest in terms of their corresponding calculated ratings.
The Bid with the highest calculated rating shall be the "Highest Rated Bid."
• After approved by the Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite
the bidder concerned for negotiation and/or clarification on the following item: financial proposal
submitted by the bidder, terms of reference, scope of services, methodology and work program,
personnel to be assigned to job, services/facilities/data to be provided by the Procuring Entity
concerned, and provisions of the contract.
• When negotiations with first-in-rank bidder fails, the financial proposal of the second rank bidder
shall be opened for negotiations: Provided, that the amount indicated in the financial envelope shall
be made as the basis for negotiations and the total contract amount shall not exceed the amount
indicated in the envelope and the ABC.
• Whenever necessary, the same process shall be repeated until the bid awarded to the winning bidder.

Post Qualification

Objective and Process of Post-qualification.

Post-qualification
 the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure
Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and
validation whether he has passed all the requirements and conditions as specified in the Bidding
Documents.

If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-
qualification, his Bid shall be considered the "Lowest Calculated Responsive Bid," in the case of Goods
and Infrastructure or the "Highest Rated Responsive Bid," in the case of Consulting Services.

However, if a bidder fails to meet any of the requirements or conditions, he shall be "post-disqualified" and
the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculate Bid or Highest
Rated Bid.

If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified, the same
procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is
finally determined.

In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or
Highest Rated Responsive Bid.

Failure of Bidding.
There shall be a failure of bidding if:
a. No bids are received;
b. No bid qualifies as the Lowest Calculated Responsive Bid; or,
c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without
justifiable cause to accept the award of contract, as the case may be.
6
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe the
same process and set the new periods according to the same rules followed during the first bidding.

After the second failed bidding, however, the BAC may resort to negotiated procurement as provided for in
Section 53 of this Act.

Single Calculate/Rated and Responsive Bid Submission.

A single calculated/rated and responsive bid shall be considered for award if it falls under of the following
circumstances:
a. If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies for
eligibility check, and meets the eligibility requirements or criteria, after which it submits a bid,
which is found to be responsive to the bidding requirements;
b. If after the advertisement, more than one prospective bidder applies for eligibility check, but only
one bidder meets the eligibility requirements or criteria, after which in submits a bid which is found
to be responsive to the bidding requirements; or
c. If after the eligibility check, more than one bidder meets the eligibility requirements, but only one
bidder submits a bid, and its bid is found to be responsive to the bidding requirements.

In all instances, the Procuring Entity shall ensure that the ABC reflects the most advantageous prevailing
price for the government.

Award, Implementation and Termination of the Contract

Notice and Execution of Award.

Within a period not exceeding fifteen (15) calendar days from the determination and declaration by the BAC
of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid, and the recommendation of the
award, the Head of the Procuring Entity or his duly authorized representative shall approve or disapprove the
said recommendation.

Notice of Award
In case of approval, the Head of the Procuring Entity or his duly authorized representative shall immediately
issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.

Within ten (10) calendar days from receipt of the Notice of Award, the Winning bidder shall formally enter
into contract with the Procuring Entity.

When further approval of higher authority is required, the approving authority for the contracts shall be given
a maximum of twenty (20) calendar days to approve or disapprove it.

In the case of government-owned and/or -controlled corporations, the concerned board shall take action on
the said recommendation within thirty (30) calendar days from receipt thereof.

Notice to Proceed
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7) calendar
days from the date of approval of the contract by the appropriate authority. All notices called for by the terms
of the contract shall be effective only at the time of receipt thereof by the contractor.

Period of Action on Procurement Activities.

The procurement process from the opening of bids up to the award of contract shall not exceed three (3)
months, or a shorter period to be determined by the procuring entity concerned. The different procurement
activities shall be completed within reasonable periods to be specified in the IRR.

If no action on the contract is taken by the head of the procuring entity or by his duly authorized
representative, or by the concerned board, in the case of government-owned and/or -controlled corporations,
within the periods specified above, the contract concerned shall be deemed approved.

Performance Security.
Prior to the signing of the contract, the winning bidder shall, as a measure of guarantee for the faithful
performance of a compliance with his obligations under the contract prepared in accordance with the Bidding
Documents, be required to post a performance security in such form and amount as specified in the Bidding
Documents.

7
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
Failure to Enter into Contract and Post Performance Security.
If, for justifiable causes, the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive
Bid fails, refuses or is otherwise unable to enter into contract with the Procuring Entity, or if the bidder fails
to post the required performance security within the period stipulated in the Bidding Documents, the BAC
shall disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated
Bid or Highest Rated Bid. This procedure shall be repeated until an award is made. However, if no award is
possible, the contract shall be subjected to a new bidding.

In the case of a failure to post the required performance security, the bid security shall be forfeited without
prejudice to the imposition of sanctions prescribed under this Act.

Reservation Clause.
The Head of the Agency reserves the right to reject any and all Bids, declare a failure of bidding, or not
award the contract in the following situations:
a. If there is prima facie evidence of collusion between appropriate public officers or employees of
the Procuring Entity, or between the BAC and any of the bidders, or if the collusion is between or
among the bidders themselves, or between a bidder and a third party, including any act which
restricts, suppresses or nullifies or tends to restrict, suppress or nullify competition;
b. If the BAC is found to have failed in following the prescribed bidding procedures; or
c. For any justifiable and reasonable ground where the award of the contract will not redound to the
benefit of the government as defined in the IRR.

Contract Implementation and Termination.

The rules and guidelines for the implementation and termination of contracts awarded pursuant to the
provisions of this Act shall be prescribed in the IRR. The rules and guidelines shall include standard general
and special conditions for contracts.

DISCLOSURE OF RELATIONS

In addition to the proposed contents of the Invitation to Bid as mentioned in this Act, all bidding documents
shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation in
not related to the Head of the Procuring Entity 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.

ALTERNATIVE METHODS OF PROCUREMENT

Alternative Methods.
Subject to the prior approval of the Head of the Procuring Entity or his duly authorized representative, 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 following alternative methods of Procurement:

a. Limited Source Bidding

 otherwise known as Selective Bidding
 a method of procurement that involves direct invitation to bid by the Procuring Entity from a set of
pre-selected suppliers or consultants with known experience and proven capability relative to the
requirements of a particular contract;
 may be resorted to only in any of the following conditions:
a. Procurement of highly specialized types of Goods and Consulting Services which are
known to be obtainable only from a limited number of sources; or
b. Procurement of major plant components where it is deemed advantageous to limit the
bidding to known eligible bidders in order to maintain an optimum and uniform level of
quality and performance of the plant as a whole.

b. Direct Contracting
 otherwise known as Single Source Procurement
 a method of Procurement that does not require elaborate Bidding Documents because the supplier is
simply asked to submit a price quotation or a pro-forma voice together with the conditions of sale,
which offer may be accepted immediately or after some negotiations
 may be resorted to only in any of the following conditions:
a. Procurement of Goods of propriety nature, which can be obtained only from the propriety
source, i.e. when patents, trade secrets and copyrights prohibit others from manufacturing the
same items;

8
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
 b. When the Procurement of critical components from a specific manufacturer, supplier, or
distributor is a condition precedent to hold a contractor to guarantee its project performance,
in accordance with the provisions his contract; or,
c. 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 government.

c. Repeat Order
 a method of Procurement that involves a direct 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;
 When provided for in the Annual Procurement Plan, Repeat Order may be allowed wherein the
Procuring Entity directly procures Goods from the previous winning bidder whenever there arises a
need to replenish goods procured under a contract previously awarded through Competitive Bidding,
subject to post-qualification process prescribed in the Bidding Documents and provided all the
following conditions are present:
a. The unit price must be equal to or lower than that provided in the original contract;
b. The repeat order does not result in splitting of requisitions or purchase orders;
c. Except in special circumstances defined in the IRR the repeat order shall be availed of only
within six (6) months from the date of the Notice to Proceed arising from the original contract;
and,
d. The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of
the original contract.

d. Shopping
 a method of Procurement 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 qualification; or
 shopping may be resorted to under any of the following instances:
a. When there is an unforeseen contingency requiring immediate purchase, the amount shall
not exceed the following:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government, Two
Hundred Thousand Pesos (₱200,000)
ii. For LGUs, in accordance with the following schedule:

In the case of barangays, Fifty Thousand Pesos (₱ 50,000).

b) Procurement of ordinary or regular office supplies and equipment not available in the
DBM-PS, in the amount not to exceed the following:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government, One
Million Pesos (₱1,000,000)
ii. For LGUs, in accordance with the following schedule:

In the case of barangays, Fifty Thousand Pesos (₱ 50,000).

9
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
 The phrase “ordinary or regular office supplies” shall be understood to include those supplies,
commodities, or materials which are necessary in the transaction of its official businesses, and
consumed in the day-to-day office operations.

However, office supplies shall not include services such as repair and maintenance of
equipment and furniture, as well as trucking, hauling, janitorial, security, and related or
analogous services

e. Negotiated Procurement
 a method of Procurement that may be resorted under the extraordinary circumstances provided for in
Section 53 of this Act and other instances that shall be specified in the IRR, whereby the Procuring
Entity directly negotiates a contract with a technically, legally and financially capable supplier,
contractor or consultant.
 shall be allowed only in the following instances:
a. Two Failed Biddings. Where there has been failure of competitive bidding or
Limited Source Bidding for the second time

b. Emergency Cases. In case of imminent danger to life or property during a state of

calamity, or when time is of the essence arising from natural or man-made calamities or other
causes where immediate action is necessary to prevent damage to or loss of life or property, or
to restore vital public services, infrastructure facilities and other public utilities;

c. Take-over of Contracts. Take-over of contracts which have been rescinded or terminated

for causes provided for in the contract and existing laws, where immediate action is necessary
to prevent damage to or loss of life or property, or to restore vital public services,
infrastructure facilities and other public utilities;

d. Adjacent or Contiguous. Where the subject contract is adjacent or contiguous to an on-

going infrastructure project, as defined in the IRR, subject to the following:
i. the original contract is the result of a Competitive Bidding;
ii. the subject contract to be negotiated has similar or related scopes of work
iii. it is within the contracting capacity of the contractor
iv. the contractor uses the same prices or lower unit prices as in the original contract
less mobilization cost;
v. the amount involved does not exceed the amount of the ongoing project; and,
vi. the contractor has no negative slippage
Provided that negotiations for the procurement are commenced before the expiry of the
original contract. Wherever applicable, the principle shall also govern consultancy contract,
where the consultants have unique experience and expertise to deliver the required service; or,

e. Agency to Agency. Subject to the guidelines specified in the IRR, purchases of Goods from
another agency of the government, such as the Procurement Service of the DBM, which is
tasked with a centralized procurement of commonly used Goods for the government in
accordance with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.

f. Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services.

Where Goods, Infrastructure Projects and Consulting Services can be contracted to a
particular supplier, contractor or consultant and as determined by the HoPE, for any of the
following:
1. The requirement is for:
a. Work of art; commissioned work or services of an artist for a specific artist skills
(e.g., Singer, poet, writer, painter, sculptor, etc.);
b. Scientific, academic, scholarly work or research, or legal services;
c. Highly-specialized life-saving medical equipment, as certified by the Department of
Health (DOH);
d. Scientific, technical, economic, business, trade or legal journal, magazine, paper,
subscription, or other exclusive statistical publications and references; or
e. Media documentation, advertisement, or announcement through television, radio,
newspaper, internet, and other communication media.

Due to the nature of the information to be disseminated, alongside principles of

transparency, efficiency and economy, award to more than one (1) supplier may be
made by the Procuring Entity.

10
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.
 2. The construction or installation of an infrastructure facility where the material, equipment,
or technology under a proprietary right can only be obtained from the same contractor.

g. Highly Technical Consultants. In the case of individual consultants hired to do work that
is (i) highly technical or proprietary; or (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.

h. 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

i. Small Value Procurement. Procurement of (a) goods not covered by Shopping , (b)
infrastructure projects, and (c) consulting services, where the amount involved does not
exceed the following threshold:
i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government, One
Million Pesos (₱ 1,000,000)
ii. For LGUs, in accordance with the following schedule:

In the case of barangays, Fifty Thousand Pesos (₱ 50,000).

j. Lease of Real Property and Venue. Lease of real property and venue for official
use.

k. 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

l. 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.

m. United Nations Agencies, International Organizations or International Financing

Institutions. Procurement from specialized agencies of the United Nations, International
Organizations or International Financing Institutions

n. Direct Retail Purchase of Petroleum Fuel, Oil and Lubricant Products and Airline Tickets

11
For the exclusive use of University of the Visayas LAW 222 students of AS1-AS2 A.Y. 2022 – 2023. Unauthorized reproduction and/or distribution is prohibited.