ALTERNATIVE METHODS

OF PROCUREMENT

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1. Identify and differentiate the various alternative methods of
procurement; and

2. Appropriately use alternative methods of procurement based

on the prescribed conditions, procedures and requirements.
 I General Guidelines

II Conditions, Procedures and Documentary Requirements

of the Alternative Methods of Procurement

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distribution without the author’s approval is prohibited.
 GENERAL GUIDELINES

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General Guidelines

Procuring Entities (PEs) shall adopt

Competitive Bidding as the general mode of procurement

Alternative Methods shall be resorted

ONLY:

Justified by conditions
In highly To promote economy specified in the
exceptional cases and efficiency IRR of RA No. 9184

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General Guidelines

No procurement shall be undertaken unless it is in

accordance with the approved
Annual Procurement Plan (APP) of the PE

The method of procurement to be used shall

be as indicated in the approved APP

Mode of
Procurement

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General Guidelines

Prohibition on Splitting of Government Contracts

Division or breaking up of government 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 procurement rules & procedures is prohibited.
However, mere act of dividing a contract into smaller quantities or
phases does not automatically constitute splitting of contract.
PEs are authorized to divide a procurement project into lots to attract
the maximum competition but must ensure that doing so is not made
to circumvent any provisions of RA No. 9184 & its IRR.

- (NPM 020-2019)

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General Guidelines
Reference to Brand Names
Reference to brand names shall not be allowed except for items or parts that are compatible
with the existing fleet or equipment of the same make and brand and will maintain the
performance, functionality and useful life of the equipment.
This rule shall also apply to the goods component of infrastructure projects and consulting
services.

Delegation of Authority
The conduct of the following may be delegated to End-user unit or any other appropriate
bureau, committee, or unit duly authorized by BAC through a Resolution approved by the HoPE:

Shopping Nego. Proc. Small Value Lease of Real Direct Purchase of POL
[Sec 52.1(a)(b)] Emergency Cases Procurement Property &Venue and Airline Tickets

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General Guidelines
PhilGEPS Registration
Bidders are mandated to register with PhilGEPS, and provide PhilGEPS
Registration Number as a condition for award for the following modalities:

Direct Shopping Take-Over of Small Value

Contracting [Sec 52.1(b)] Contracts Procurement

👨👩
Lease of Real Scientific, Scholarly or Artistic Highly
Property Work, Exclusive Technology Technical
&Venue and Media Services Consultants

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without the author’s approval is prohibited.
General Guidelines

Advertisement & Posting of Procurement Opportunity

For alternative methods of procurement, the Procuring Entity may dispense with the advertisement in
the newspaper and posting requirement as prescribed in Section 21.2.1 of the IRR of R.A. 9184.
For the following alternative methods, however, the BAC, through its Secretariat, shall post the
procurement opportunity:

Limited Source Shopping Two-Failed Small Value Procurement

[Sec 52.1(b)] Biddings for projects with ABC above ₱50,000.00) NGO Participation
Bidding
Procurement opportunities for the aforementioned alternative methods shall be posted in the following
for a period of at least three (3) calendar days:
Conspicuous place in
PhilGEPS website PE’s website PE’s premises

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Transparency Requirements for
Procuring Entities

All PEs are reminded of the transparency

and accountability requirements under RA
No. 9184 and its 2016 IRR, the General
Appropriations Act (GAA), Resolutions
issued by the Government Procurement
Policy Board (GPPB) and other relevant
laws, rules and regulations.

GPPB Circular No. 01-2021

11
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and distribution
without the author’s approval is prohibited.
Posting In Official Website and
Social Media Platforms

All agencies and instrumentalities under

the Executive Department shall post the
Invitation or Request for Submission of
Price Quotations in PhilGEPS, on their
official websites and social media
platforms in an organized manner and
shall ensure its security and integrity
GPPB Circular 01-2021

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General Guidelines

Most Advantageous Price for Government

In all procurement activities, PEs shall ensure to get the most advantageous price
for the government

PEs shall ensure that the objectives & purpose of the contract do not constitute
unnecessary, excessive, extravagant or unconscionable expenditure

Posting of Notice of Award, Contract and Notice to Proceed

NOA, Contract/PO, including the NTP if necessary shall be posted, within 10 days from
their issuance, in the following:
Conspicuous place in
PhilGEPS website PE’s website PE’s premises
Except for contracts with ABC of ₱50,000.00 & below.

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Additional Transparency Requirements of
Post-award Information of Procurement Projects
Posting of Procurement Documents

GPPB Resolution No. 04-2021

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Transparency Requirements for
Procuring Entities
PhilGEPS Conspicuous PE’s website, if
Document or Information Others
website Place any

Invitation or Request for

✓ ✓ ✓
Conspicuous
Submission of Price
Place
Quotations or Proposals

✓ ✓ ✓
Extension of the deadline Conspicuous
in Shopping Place
NOA, Contract or Purchase Order,

✓ ✓ ✓
including NTP if necessary,
except for contracts with ABC of
PhP50,000.00 below
Notice of Suspension of the
✓
conduct of procurement
Conspicuous
activities Place

GPPB Circular No. 01-2021

15
15
General Guidelines

Timeline of Submission of Documentary Requirements

The BAC shall indicate in the RFQ or RFP at what stage of the
procurement process to which the documentary requirements
must be submitted, i.e., submission of offer/s, evaluation of
offer/s, before issuance of Notice of Award or prior to
payment.

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without the author’s approval is prohibited.
General Guidelines
GPPB Resolution No. 09-2020
Latest Updates:
Measures for Efficient Conduct of Procurement Activities during a State of
Calamity, or Implementation of Community Quarantine or Similar Restrictions

Submission of Procurement Documents through E-Mail/Facsimile

Submission of procurement related documents, except for the submission and receipt of bids, through
electronic mail or facsimile shall be allowed, subject to the submission of the printed copies as soon as
practicable, as determined by the BAC

Maximizing Existing Government Procurement Rules

Use of videoconferencing, webcasting and similar technology in the conduct of any of the meetings
and determination of quorum by the BAC
Use of digital signatures in procurement related documents

Cancellation/Termination of Procurement Activities

Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184, the BAC, upon consultation
with the end-user unit, shall be allowed to cancel or terminate the conduct of procurement activities for
any justifiable reason
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 CONDITIONS, PROCEDURES &
DOCUMENTARY REQUIREMENTS
OF ALTERNATIVE METHODS OF
PROCUREMENT

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Alternative Methods of Procurement

3
Repeat Order

2 4
Direct Contracting Shopping

1 5
Limited Source Bidding Negotiated Procurement

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Limited Source Bidding

Background Applicability Conditions

“Selective Bidding”
Highly specialized
Goods equipment/services
Direct invitation to
pre-selected
suppliers or
consultants Consulting Major plants
Services components

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Limited Source Bidding

Pre-selection is based on capability and resources to

perform the contract taking into account:
Experience and performance on similar contracts

👨 Personnel, equipment, manufacturing facilities

👩
Financial position

The pre-selected list may be accessed at the GPPB website

https://www.gppb.gov.ph/preselectedSuppliers.php

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without the author’s approval is prohibited.
Limited Source Bidding

???
=
Who prepares the pre- It is the relevant government
selected list of agency expert in the procurement
suppliers/consultants? concerned. In the absence of
relevant government agency, the
PE through its BAC, with
assistance of its TWG, shall
prepare the preselected list.

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Direct Contracting

Background Applicability Conditions Documentary

Requirements

“Single Source
Procurement” Items of proprietary Mayor’s Permit
nature (i.e. patents, copyrights)
Does not require
elaborate bidding
Goods PhilGEPS Reg. No.
documents Critical components
from a specific supplier
Offer may be
accepted Income/Business
immediately or after Tax Return
some negotiations. Items sold by exclusive For ABCs above
manufacturer PhP500,000.00

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Direct Contracting

Procedural Guidelines
Preparation of Request Simplified
Market Study Award of Contract
for Quotation (RFQ) Negotiations

End-User shall conduct survey of the industry & determine supply

1
source to justify the need to procure through Direct Contracting

BAC, through its Secretariat, shall prepare the RFQ or pro-forma

2
invoice, & send to identified direct supplier

BAC may conduct simplified negotiations on the terms &

3 conditions of the contract to ensure that supplier is technically,
legally and financially capable to undertake the project

4 BAC shall recommend award of contract to the HoPE

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Repeat Order

Background
Procurement from the previous winning bidder,
whenever there is a need to replenish goods
procured under a contract previously awarded
through Competitive Bidding.

Applicability

Goods

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Repeat Order
Conditions
Original contract awarded through competitive bidding

Same or lower unit prices than those in the original contract

No splitting of contracts, requisitions & Purchase Orders

Availed of within 6 months from the date of the NTP arising
from the original contract, provided that there has been a
partial delivery, inspection and acceptance of the goods within
the same period
Not to exceed 25% of quantity of each item in original contract
The goods under the original contract must be quantifiable,
divisible and consisting of at least four (4) units per item

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Repeat Order

???

=
Repeat order may be undertaken any time
within the 6-month period reckoned from
What stage in the contract effectivity date which should in
procurement process no case be later than 7 calendar days from
can repeat order be the issuance of the NTP & if such mode of
considered to be within procurement has been duly approved by
the reglementary the HoPE and the previous winning
period of 6 months? supplier has been notified before the lapse
of said period. (NPM 003-2010)

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Shopping

Background Documentary
Applicability Conditions Requirements

PE requests price
quotations
Shopping A Shopping B
Procurement of [ Section. 52.1(a) ] [ Section. 52.1(b) ]
readily available off-
the-shelf goods or Goods
ordinary/regular
equipment Mayor’s Permit
Shopping B
[ Section. 52.1(b) ]
Procured directly
PhilGEPS Reg. No.
from suppliers of
know qualifications

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Shopping

Conditions Conditions Latest Update:

Shopping A CSE Items not

Shopping B
[ Section. 52.1(a) ] available in DBM-PS
[ Section. 52.1(b) ]
may be procured from
There is an unforeseen Vs. Procurement of ordinary other sources without
contingency requiring or regular office supplies the need of securing
immediate purchase; and and equipment not of Certificate of Non-
available in PS-DBM; and Availability of Stocks
(CNAS), subject to
Amount does not exceed Amount does not exceed conditions set forth in
the threshold. the threshold. GPPB-Resolution No.
17-2020

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Shopping

Threshold Threshold

Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]

PhP200,000.00 Vs.
PhP1,000,000.00
for NGAs, GOCCs, GFIs, for NGAs, GOCCs, GFIs,
SUCs & Autonomous SUCs & Autonomous
Regional Government Regional Government

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Shopping

Threshold for LGUs

Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
In the case of Barangays, the maximum amount is PhP50,000

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Shopping

Procedures Procedures

Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]

The RFQ may be sent

directly to the supplier of Vs.
BAC shall send RFQs to at least
known technical, legal and
three (3) suppliers of known
financial qualifications.
qualifications, & at least three
Sending & receipt of one
(1) RFQ will suffice. (3) price quotations must be
obtained.
Posting of the RFQ may be
dispensed with.

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Negotiated Procurement

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without the author’s approval is prohibited.
Negotiated Procurement
Applicability

Two Failed
Biddings Goods Infrastructure Consulting
Projects Services

Background Conditions

No bids were received

Undertaken when there has been All prospective bidders are ineligible
failure of competitive bidding or All bids failed to comply with all of the bid
limited source bidding for the requirements, post-qualification, or there is no
second time successful negotiation; or
The Single/LCRB/HRCB refuses, without justifiable
cause, to accept the award or no award was made

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Negotiated Procurement
Exception

Failure of Bidding as Declared by the HoPE

Two Failed
If the failure of bidding is due to the declaration by
Biddings
the HOPE pursuant to Section 41 of the IRR ,
Negotiated Procurement (Two Failed Biddings)
cannot be resorted to.
Procedural Guidelines

Declaration of 2 Failed Preparation of

Mandatory
Competitive RFQ/Bid Docs
Review
Bidding/LSB
Observers shall be
invited in all stages
Invite at least (3) Awarding of
suppliers/contractors/ Best Offer
Contract
consultants

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Negotiated Procurement
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Conditions

In case of imminent danger to life or property during a state of calamity;

When time is of the essence arising from natural/man-made calamities;

Other causes where immediate action is necessary:

• To prevent damage to or loss of life or property
• Restore vital public services, infrastructure facilities and other public utilities

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Negotiated Procurement
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Reminders

PE should consider appropriate timing or the proximity of time between the actual
procurement activity to be conducted and the emergency sought to be addressed.
When the reason or cause for the emergency has already been abated, adoption of
competitive bidding shall be considered.
When the ground is based on imminent danger to life during a state of calamity, there
must be a declaration by a competent authority of a state of calamity before any
procurement activity may be undertaken.

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Negotiated Procurement

Emergency Cases

Documentary Requirements

Mayor’s Permit

PCAB License (for Infra.)

NFCC (for Infra.)

For ABCs above PhP500,000.00

Income/Business Tax Return

For ABCs above PhP500,000.00

Omnibus Sworn Statement

For ABCs above PhP500,000.00

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without the author’s approval is prohibited.
Negotiated Procurement
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Procedural Guidelines

Revision of Direct negotiation

Purchase APP and with a legally,
Request validation of technically and Award of
from available financially capable Contract
End-User budget for supplier,
the purpose contractor,
consultant

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Negotiated Procurement

Applicability

Take-Over of
Contracts Goods Infrastructure Consulting
Projects Services

Procedural Guidelines Procedural Guidelines

Post-Qualify & Negotiate If negotiation fails…

The BAC shall post-qualify and • Invite a short list of at least three (3)
negotiate starting with the 2nd suppliers, contractors or consultants
LCB or HRB at the said bidder’s to submit bids and negotiate starting
original bid price, then on to the with the LCB or HRB; or
next if negotiation fails. • Resort to any other appropriate
alternative method of procurement.

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Negotiated Procurement

Take-Over of Contracts

Documentary Requirements

Mayor’s Permit

Professional
License/CV
(for Consulting Services)

PhilGEPS Reg. No.

PCAB License
(for Infra.)

NFCC (for Infra.)

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Negotiated Procurement
Background

Adjacent or Where subject contract is adjacent/contiguous to

Contiguous an on-going civil work or consulting service where
contractors/consultants have unique experience &
expertise to deliver required service
Applicability

Conditions

Infrastructure Original contract is a result of competitive bidding;

Projects
🔨 Subject contract has similar or related scopes of work;
🔨
Within the contracting capacity of the contractor/consultant;
Consulting Documentary requirements (for infrastructure projects):
Services
PCAB License and NFCC

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Negotiated Procurement

Conditions
Adjacent or
Contiguous In determining the SLCC, NFCC & PCAB license, the sum of the
value of remaining works for the existing contract and the ABC of
contiguous or adjacent work shall be considered;
Applicability
Same prices or lower unit prices as the original contract less
mobilization cost,

Infrastructure ABC of contiguous or adjacent work involved does not exceed the
Projects contract amount of ongoing project.

No negative slippage/delay during the time of negotiation

Consulting Negotiations shall have commenced before expiry of original

Services contract

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Negotiated Procurement
Background
Agency-To-Agency Procurement from another government agency (Servicing
Agency) that has the mandate to deliver goods or services
Applicability or to undertake infrastructure projects or consultancy
services as required by the PE.

Goods
Conditions

PE shall justify that entering into an A-to-A with Servicing

Infrastructure Agency is more efficient & economical to the government
Projects
Servicing Agency has the absorptive capacity to
undertake the project;
Servicing Agency owns or has access to necessary tools
Consulting & equipment required for the project;
Services

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Negotiated Procurement

Agency-To-Agency

Procedural Guidelines

The End-User
The End-User shall secure a
The HoPE shall
shall justify to certificate The BAC shall
enter into a MOA
the BAC that from the issue a
with the
the resort to relevant Resolution
Servicing
A-to-A is more officer of the recommending
Agency upon
efficient and Servicing the use of A-
approval of the
economical to Agency that to-A to the
BAC
the the latter HoPE.
recommendation
government. complies with
the conditions.

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Negotiated Procurement

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Work of art; commissioned work or services of an artist for specific artistic

🎨 skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.);

Scientific, academic, scholarly work or research, or legal services;

Highly-specialized life-saving medical equipment, as certified by the

Department of Health;
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Negotiated Procurement

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Scientific, technical, economic, business, trade or legal journal, magazine,

paper, subscription, or other exclusive statistical publications and references;

Media documentation, advertisement, or announcement through television,

radio, newspaper, internet, and other communication media; and
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.
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Negotiated Procurement

Scientific, Scholarly or Artistic

Work, Exclusive Technology and
Media Services

Documentary Requirements

Mayor’s Permit

Professional License/CV
(for Consulting Services)

PhilGEPS Reg. No.

Income/Business Tax Return

For ABCs above PhP500,000.00

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without the author’s approval is prohibited.
Negotiated Procurement

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Procedural Guidelines

Markey Study by Direct negotiation with Award of

End-User to supplier, contractor, Contract
justification consultant

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Negotiated Procurement
Background

Procurement of consultancy contract involving an

Highly Technical
individual consultant who is found to be legally,
Consultants technically and financially capable after negotiation.

Applicability
Conditions

Work involves highly technical or proprietary; or

primarily confidential or policy determining, where trust
and confidence are the primary consideration; and
Consulting
Services Term is, at the most, 1 year, renewable at the option of
the appointing HOPE, but in no case to exceed the
term of the latter.
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Negotiated Procurement

Highly
Technical
Consultants

Documentary Requirements

Mayor’s Permit

Professional
License/CV
(for Consulting Services)

PhilGEPS Reg. No.

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Negotiated Procurement
Background

Defense Cooperation Covers procurement of major defense equipment

Agreement (DCA) or material Defense-related consultancy services

Applicability Conditions
DND may directly negotiate with an entity of another
country with which Philippines has entered into a DCA
subject to the following conditions:
Goods Secretary of National Defense deemed it necessary
to protect the interest of the country
Expertise or capability required is not available locally
Consulting The procurement requirements are included in the
Services AFP Modernization Program previously approved by
the President of the Philippines
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Negotiated Procurement
GPPB Resolution No. 23-2018
Defense Inventory- The Secretary of National Defense shall now be the final authority
Based Items to approve procurement of defense inventory-based items or
defense related consultancy services as the President has already
approved the AFP Modernization Program
Conditions
DND may directly negotiate with a supplier or manufacturer of defense
inventory-based items subject to the following conditions:
Secretary of National Defense deemed it necessary to protect the interest of
the country
Direct negotiation will address compatibility, interoperability and sustainability
Prospective bidder/s had fully and satisfactorily implemented a contract of the
same item with DND or any of its attached agencies
Prospective bidder/s shall provide performance security
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Negotiated Procurement
Applicability
Small Value
Procurement
Goods Infrastructure Consulting
Projects Services
Background

Procurement not covered by Procedures

Shopping under Sec. 52 The BAC shall prepare and send the RFQs/RFPs to at least
three (3) suppliers, contractors or consultants of known
qualifications.
Threshold For procurement activities with ABC of above PhP50,000.00,
RFQ shall be posted in the PhilGEPS website, PE’s website
PhP1,000,000.00 & conspicuous place in the premises of the PE
for NGAs, GOCCs, GFIs, SUCs & Receipt of at least one (1) quotation/proposal is sufficient to
Autonomous Regional Government proceed with the evaluation.

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Negotiated Procurement

Small Value Procurement

Procedural Guidelines

Send RFQ/RFP to at Post in PhilGEPS,

least 3 suppliers PE’s website and
conspicuous place
Prepare *May be 1 in case of 52.1(a) for 3 cd
RFQ/RFP *Receipt of 3 RFQs for 52.1(b) is *Except 52.1(a) and ABC 50k
mandatory and below
Receipt of 1 RFQ in SVP will *Extend deadline if no
suffice
quotation is received

Award to LCB (for

SHP & SVP)/HRB
Prepare Abstract (for SVP) that
of Quotations complies with
specs and ABC
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without the author’s approval is prohibited.
Negotiated Procurement

Small Value Procurement

Documentary Requirements

Mayor’s Permit

Professional
License/CV
(for Consulting Services)

PhilGEPS Reg. No.

PCAB License
(for Infra.)

Income/Business Tax
Return
For ABCs above PhP500,000.00
Omnibus Sworn
Statement
For ABCs above PhP50,000.00

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without the author’s approval is prohibited.
Negotiated Procurement
Background
Lease of Procurement covering lease of
Real Property & Venue real property/venue for official use.

Conditions
The End-User shall prepare a Cost-Benefit Analysis indicating that leasing
privately-owned real property or venue is more efficient and economical
Technical Specifications shall be prepared taking into consideration the Rating
Factors under Appendix B.

Procedural Guidelines
BAC shall invite at least 3 prospective lessors/venues within the vicinity of the
selected location to submit sealed price quotations for real-property & open
price quotations for venue.
Receipt of at least one (1) quotation is sufficient to proceed with the evaluation.

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without the author’s approval is prohibited.
Negotiated Procurement

Lease of
Real Property & Venue

Publicly-owned vis-à-vis privately-owned real property or venue

It is preferred that government agencies lease publicly-owned real property or
venue from other government agencies
If there is an available publicly-owned real property or venue that complies with
the requirements of the Procuring Entity, it may enter into a contract of lease
with the government-agency owner.

Renewal of Contract of Lease of Real Property

Prior to the expiration of the lease contract, the end-user must conduct a cost-
benefit analysis to assess the quality of service under the lease contract.
If the results of the CBA continue to favor the existing lessor, then the PE may
simply renew its lease contract. If it does not, then the PE should procure a new
lease contract.
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without the author’s approval is prohibited.
Negotiated Procurement

Lease of Real Property

&Venue

Documentary Requirements

Mayor’s Permit
Except for gov’t agencies as lessors

PhilGEPS Reg. No.

Except for gov’t agencies as lessors

Income/Business
Tax Return
Except for gov’t agencies as lessors

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
Applicability

NGO Participation
Goods Infrastructure Consulting
Projects Services

Conditions

Appropriation law or ordinance earmarks an amount to be contracted to NGOs

PE may opt to conducting public bidding or enter into a MOA with an NGO

Procedural Guidelines (for Negotiated Procurement)

BAC shall invite at least 3 prospective NGOs to submit sealed price quotations with
complete project proposals
Upon determination of the Lowest Calculated Bid & after the submission & evaluation of
eligibility documents, PE shall enter a MOA with the eligible NGO
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without the author’s approval is prohibited.
Negotiated Procurement
Background
Involvement of people in a community in projects to address
Community their own community needs
Participation
Participation of local communities in the delivery of goods,
including non-consulting services and simple infrastructure
projects
Applicability In the interest of project sustainability or to achieve certain
specific social objectives

References
Goods
Community Participation in Procurement Manual
Supplemental Guidelines for Community Participation in
Procurement Method for Foreign Assisted Projects
Infrastructure
Projects
Supplemental Guidelines for Community-Managed
Procurement in Locally-Funded Projects

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without the author’s approval is prohibited.
Negotiated Procurement

Community Participation
Opening &
Preparation of RFQ Posting Award of Contract
Evaluation

PE shall prepare RFQ to reflect brief description of the project,

1 specifications or scope of work, ABC & other necessary information

BAC, through its Secretariat, shall post the RFQ in the website of the PE (if
2 any), the premises of the PE, & in at least 3 conspicuous places where the
project will be implemented for a period of at least 3 calendar days

Should less than 3 quotations is obtained, the BAC shall continue the
3 procurement process. The opening of sealed quotations shall use a non-
discretionary pass or fail criterion

In case of approval, the HOPE shall issue the notice of award within a
4 period not exceeding 15 calendar days
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without the author’s approval is prohibited.
Negotiated Procurement
Applicability
United Nations Agencies,
International Organizations or
International Financing Infrastructure Consulting
Goods
Institutions Projects Services

Conditions
Procurement from UN Agencies, IOs or IFIs, of any of the following:
Small quantities of off-the-shelf goods, primarily in fields of education & health;

Specialized products where the number of suppliers is limited (e.g. vaccines,

drugs); or
Goods, infrastructure projects and consulting services, involving advanced
technologies, techniques and innovations not locally available as certified by the
HoPE,.
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without the author’s approval is prohibited.
Negotiated Procurement
Background

Direct Retail Purchase of In view of the volume of queries on procurement of POL

Petroleum, Fuel, Oil & products, & delisting of airline tickets from the Procurement
Lubricant (POL) Products, Service, GPPB-TSO conducted a study on the modality where
and Airline Tickets POL products & airline tickets may be best procured in terms of
economy and efficiency

New Provision through GPPB Resolution No. 24-2019

Section 53.14 of the 2016 Revised IRR of RA No. 9184:

✔ Direct retail purchase of POL and airline ticket may be made by end-users from
identified direct suppliers or service providers
✔ The BAC and the HoPE shall delegate to specific officials, personnel, committee or
office in the PE the conduct of Direct Retail Purchase
✔ Shall be done through competitive bidding except when PE determined that direct retail
purchase is the best modality to procure non-bulk POL products or airline tickets

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
GPPB Resolution No. 24-2019 & 05-2022
Direct Retail Purchase of POL Products and Airline Tickets and Online Subscriptions

Conditions for POL

POL requirements necessary for the operations of the PE shall be reflected in

the APP including provisions for foreseeable emergencies based on historical
records
Direct Purchase must be made from any available retailers, dealers or gas
stations at retail pump price
POL procurement must be intended for any official government vehicles &
equipment for immediate consumption
Payment may be made through cash advance, reimbursement or other
allowable payment modalities

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
GPPB Resolution No. 24-2019
Direct Retail Purchase of POL Products and Airline Tickets

Conditions for Airline Tickets

Direct purchase of airline tickets required for official travels within the fiscal year
shall be reflected in the APP including provisions for foreseeable emergencies
based on historical records

Direct Purchase must be made from any commercial airline at fairly reasonable
rates
Payment may be made through cash advance, reimbursement or other
allowable payment modalities
Must be in accordance with existing rules and regulations governing official
local and foreign travels of government personnel

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
GPPB Resolution No. 24-2019 & 05-2022
Direct Retail Purchase of POL Products and Airline Tickets
& Online Subscriptions

Conditions for Online Subscriptions

ONLINE SUBSCRIPTION SHALL COVER (I) ELECTRONIC PUBLICATIONS,

REFERENCE MATERIALS, AND JOURNALS; (II) COMPUTER SOFTWARE
AND APPLICATIONS SUCH AS VIDEO CONFERENCING APPLICATIONS,
COMPUTERAIDED DESIGN AND DRAFTING APPLICATIONS, OFFICE
PRODUCTIVITY TOOLS, AND SYSTEM PROTECTION SOFTWARE; (III)
WEB-BASED SERVICES SUCH AS NEWS AND SOCIAL MEDIA
MONITORING TOOLS; AND (IV) OFF-THE-SHELF INFORMATION
SYSTEMS, EXCEPT INTERNET AND CLOUD COMPUTING SERVICES.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
GPPB Resolution No. 24-2019 & 05-2022
Direct Retail Purchase of POL Products and Airline Tickets
& Online Subscriptions

Conditions for Online Subscriptions

ONLINE SUBSCRIPTION SHALL COVER (I) ELECTRONIC PUBLICATIONS,

REFERENCE MATERIALS, AND JOURNALS; (II) COMPUTER SOFTWARE
AND APPLICATIONS SUCH AS VIDEO CONFERENCING APPLICATIONS,
COMPUTERAIDED DESIGN AND DRAFTING APPLICATIONS, OFFICE
PRODUCTIVITY TOOLS, AND SYSTEM PROTECTION SOFTWARE; (III)
WEB-BASED SERVICES SUCH AS NEWS AND SOCIAL MEDIA
MONITORING TOOLS; AND (IV) OFF-THE-SHELF INFORMATION
SYSTEMS, EXCEPT INTERNET AND CLOUD COMPUTING SERVICES.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Negotiated Procurement
GPPB Resolution No. 24-2019 & 05-2022
Direct Retail Purchase of POL Products and Airline Tickets
& Online Subscriptions

Conditions for Online Subscriptions

• The APP shall reflect the direct purchase of online subscriptions
necessary for the operations of the PE within the fiscal year;
• The direct purchase shall be made for online subscription where no
local provider is available
• The maximum amount for the ABC shall be One Million Pesos.
* Provided, that if the online subscription to be directly purchased would
require an ABC beyond the amount, the increase may be increase but
not to exceed five million subject to the approval of the HOPE
• Justifications shall be provided by the end-user
• Payment can only be made through direct electronic payment using
credit card.
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Performance and Warranty Securities

Alternative Method of
Performance Security Warranty Security
Procurement

For highly-specialized types of

Limited Source Bidding Yes goods, WS is required

Direct Contracting No Yes

No Yes
Repeat Order

Yes
Yes (in no case shall WS be required for
Two-Failed Biddings Consulting Services)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Performance and Warranty Securities
Alternative Method of
Performance Security Warranty Security
Procurement

PE may require PS PE may require WS

Negotiated Procurement depending on the depending on the
nature of the nature of the
Emergency Cases procurement project. procurement project.
However, for In no case shall WS be
Infrastructure required in the
Projects, PS is procurement of
Small Value Procurement required Consulting Services.

Yes Yes
Take-Over of Contracts

For Infrastructure
Yes Projects,
Adjacent or Contiguous WS is required

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Latest Updates on Performance Security

Similar to the PSD used in Framework

Agreement, such declaration shall
state, among others, that the winning
bidder shall be blacklisted from
being qualified to participate in any
government procurement activity for
one (1) year, in case of first offense
or two (2) years, if with prior similar
offense, in the event it violates any of
the conditions stated in the contract.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
GUIDELINES ON THE USE
OF FRAMEWORK
AGREEMENT
I Background

II Framework Agreement Process

BACKGROUND
Amendments to the Guidelines for
Guidelines to the Use of Framework Agreement
Ordering Agreement for All Procuring Entities
Dated 27 Jan 2012 Dated 10 Dec 2019

Dated 01 Apr 2005

Dated 10 Apr 2017
Guidelines for
Guidelines for
Ordering Agreement
Framework Agreement
WHAT IS A FRAMEWORK AGREEMENT?

Written agreement between a procuring entity

and a supplier or service provider that identifies
the terms and conditions, under which specific
purchases, otherwise known as “Call-Offs,” are
made for the duration of the agreement.

An option contract between the procuring entity

and the bidder(s) granting the procuring entity
the option to either place an order for any of the
goods or services identified in the Framework
Agreement List or not buy at all, within a
minimum period of one (1) year to a
maximum period of three (3) years.
GPPB Resolution No. 27-2019
APPLICABILITY

Procurement of Goods
and Services
Repeatedly required, but by their nature, use, or
characteristic, the quantity or exact time of need
cannot be accurately pre-determined

Procurement of Goods
which are not advisable to be carried in
stock

GPPB Resolution No. 27-2019

GENERAL CONDITIONS
Procuring entities may use Efficiency in procurement is attained
Framework Agreement if the
Stockholding or warehousing of goods, and the
Bids and Awards Committee costs and risks accompanying it will be significantly
(BAC) determines that entering reduced or avoided
in a Framework Agreement is Incurrence of additional cost will be lessened
more
Commitment by the supplier or service provider to
immediately deliver at short notice will be a more
efficient means of supplying goods and services
PRACTICAL
Procuring entity will benefit from the fixed price

ECONOMICAL Call-Offs at the time of actual need will result in the

optimum usage of the ABC
ADVANTAGEOUS for
the Procuring Entity Achieve benefits and advantages of lean and just-
in-time procurements
FRAMEWORK AGREEMENT
PROCESS
PROCUREMENT PLANNING

Preparation of Framework Agreement List

Contents
The End-user Unit shall determine that the goods or services
to be included in the Framework Agreement List are necessary
Type and nature Technical
and desirable for the operations of the procuring entity,
of each item or Specifications or
supported by a document establishing the need for the
service Scope of Work
acquisition of the goods in the Framework Agreement List,
such as, but not limited to historical data, needs analysis, or
market study establishing the Approved Budget for the Maximum Estimated cost
Contract (ABC) for each of the goods in the Framework quantity of items per item or
Agreement List. or services service*

The Framework Agreement List must be attached to Expected

the Annual Procurement Plan (APP) submitted to the Total ABC delivery
BAC to be approved by the Head of the Procuring
timeframe
Entity (HoPE).
Sec. 7.7 of the 2016 IRR, as included in GPPB Resolution No. *Should consider variables and factors that may
27-2019 affect future market prices
PROCUREMENT PLANNING
Sample Framework Agreement List
FRAMEWORK AGREEMENT LIST
(Name of Agency)
Total Cost per
Item/ Service Cost per item or service Max Quantity
Item

TOTAL (Approved Budget for

the Contract)
Expected delivery
Within [no. of days] cd upon issuance of Call-off
timeframe
Remarks Indicate here any other appropriate information
USE OF COMPETITIVE BIDDING

The procurement of goods and services under a Framework Agreement shall

be conducted following the procedure for Competitive Bidding provided in RA
No. 9184 and its revised IRR, subject to Item 6 of the Guidelines.

Single Stage, two-envelope procedure Invitation to Bid :

Indicate if Framework Agreement is
BAC to prepare technical specifications or SOW for for a single or multi-year
every item, and should indicate the ff: Framework Agreement.
Sec. 7.2 , GPPB Reso 27-2019

For Multi-Year FA (MYFA):

ABC for the first year = basis for
computing SLCC, NFCC, bid
security, bidding documents fee,
Total cost per item Maximum quantity Requested delivery or protest fee
performance lead time from Sec. 7.3 , GPPB Reso 27-2019
it may procure issuance of Call-off or any other
when needed date determined by PE
PROCEDURE AND REQUIREMENTS

Single Year Framework Multi-Year Framework Agreement

Agreement (One year) (Two to three years)
● Outright determination of the LCRB shall be ● Bidders to submit INITIAL technical and financial
conducted by the BAC requirements

● HoPE to award option contract in the form of a ● Initial eligibility determination by BAC and whether
Notice to Execute Framework Agreement financial proposal is within ABC
● Actual purchase to be made after Call-off
● HoPE to issue a Notice to Execute a Framework
● Prices quoted are fixed, and not subject to price Agreement to all complying bidders based on BAC
escalation recommendation

● SCRB shall only be considered for award ● Determination of LCRB shall be performed through a
based on Sec. 36 of 2016 Revised IRR Mini-Competition among all eligible bidders
● For Multi Year FA, if only 1 bidder passed
the preliminary evaluation, convert to ● During Mini-Competition, suppliers shall submit their
Single Year FA
best financial proposals on the pre-scheduled date, time
● Prices quoted by the bidder must be within
and place
the total cost per item
ENTERING INTO A FRAMEWORK AGREEMENT

*Step 5 for Single Year FA and

Step 6 for Multi-Year FA

Within ten (10) calendar Enter into a Submission of a

days from receipt of the Framework Agreement Performance Security
Notification to Execute a for an amount of One or Performance
Framework Agreement Peso paid by PE Securing Declaration
(Computation shall be based on
the total contract price)
FRAMEWORK AGREEMENT

Framework Agreements include:

● Framework Agreement List
● Provision that the perfection of the actual procurement contract shall be reckoned from the
execution of the Call-Offs
● Statement that upon the execution of the Call-Offs, all rules and guidelines governing
implementation of procurement contracts under RA No. 9184 and its revised IRR shall be applicable

Framework Agreements shall be valid only for the period stated in the bidding documents, and shall not
exceed three (3) years from signing

If there has been any change in the capability of the supplier or service provider to undertake its
obligations, the PE shall consider the said supplier or as ineligible and disqualify from award

Bidders executing the Framework Agreement either for single or multi-year shall ensure the continuing
validity of their eligibility documents during the implementation of the contract.
FRAMEWORK AGREEMENT

WHAT NOTS

● Shall not state or imply any agreement by the procuring

entity to place future contracts or make orders with the
supplier/service provider.

● No modification of the Framework Agreement during its

lifetime shall be allowed.

● Valid only for the period stated in the Bidding Documents

which, in no case shall exceed three (3) years from the
time the Framework Agreement was executed.
FRAMEWORK AGREEMENT

PARTS OF THE FRAMEWORK

AGREEMENT
● Framework Agreement Form;
● Bidding Documents;
● Call-offs;
● Winning bidder’s bid
● Performance Security or Performance Securing
Declaration, as the case may be;
● Notice to Execute Framework Agreement; and
● Other contract documents that may be required by
existing laws and/or specified in the BDS.
FRAMEWORK AGREEMENT
CALL-OFF

● Issued by the PE after No limit in the number of Call-Offs that may

determination of the need to
procure the items or services; be executed. However:
- Subsequent Call-Offs shall not exceed the
maximum quantity in the Framework
● Issued in favor of the suppliers/ Agreement List;
service providers to obligate the - The fixed contract prices rule shall be
latter to deliver or perform observed:
according to the terms and ● SYFA: price is based on price quoted by the
conditions states in the
Supplier in its bid;
Framework Agreement.
● MYFA: price is based on price quoted by
the Supplier during conduct of Mini-
Competition.
The Certificate of Availability of - All executed Call-Offs shall not exceed the
Funds shall be issued only every total contract price specified in the Framework
Call-Off Agreement.
CALL-OFF

Multiple Destinations or Locations

The BAC may execute Call-Offs requiring

delivery to multiple destinations or
performance at multiple locations
FRAMEWORK AGREEMENT
IMPLEMENTATION AND TERMINATION OF CALL-OFF

Any extension of time for the delivery or performance shall be made

in writing and prior to the date of deliver or performance indicated Automatic Termination under the
in the Framework Agreement or Call-Off, subject to prior approval following conditions:
If the supplier or service provider fails to deliver or perform, including
any time extension, it shall be liable for liquidated damages of at
least equal to 1/10th of one percent (.001) of the cost of the
unperformed portion of the total amount of the items ordered per
Call-Off for every day of delay.

Once the cumulative amount of liquidated damages reaches ten

percent (10%) of the total amount of the items ordered per Call-Off, Total maximum Specific duration of
the PE may rescind the Agreement. quantity specified in the FA has expired
FA has been
The Warranty provision for goods under Section 62 of RA No. 9184 exhausted
and its revised IRR shall be observed, and shall be required for each
Call-Off.
REPEAT ORDER
Conditions:

The PE has exhausted the maximum quantity for the same item

The Framework Agreement has expired

Subject to conditions under Section 51 of R.A. No. 9184

Availed only within 6 months from the date of the last or final Call-Off for a
specific item where the maximum quantity has been exhausted or from the
expiration of the Framework Agreement.

Limited to twenty five percent (25%) maximum allowable quantity based

on the aggregate quantity of actual items ordered and delivered
 DROP YOUR
QUESTIONS
HERE!

Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

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