PHILIPPINE BIDDING DOCUMENTS

PROCUREMENT OF FARM MACHINERIES

AND EQUIPMENT UNDER
MAJOR CROP-BASED PRODUCTIVITY
ENHANCEMENT PROJECT IN THE
PROVINCE OF AURORA

Fifth Edition
August 2016
 Preface
These Philippine Bidding Documents (PBDs) for the procurement of Goods through
Competitive Bidding have been prepared by the Government of the Philippines (GOP) for use
by all branches, agencies, departments, bureaus, offices, or instrumentalities of the
government, including government-owned and/or -controlled corporations (GOCCs),
government financial institutions (GFIs), state universities and colleges (SUCs), and local
government units (LGUs) and autonomous regional government. The procedures and
practices presented in this document have been developed through broad experience, and
are for mandatory1 use in projects that are financed in whole or in part by the GOP or any
foreign government/foreign or international financing institution in accordance with the
provisions of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act (RA)
9184.

The Bidding Documents shall clearly and adequately define, among others: (a) the
objectives, scope, and expected outputs and/or results of the proposed contract; (b) the
eligibility requirements of bidders, such as track record to be determined by the Head of the
Procuring Entity; (c) the expected contract duration, the estimated quantity in the case of
procurement of goods, delivery schedule and/or time frame; and (d) the obligations, duties,
and/or functions of the winning bidder.

In order to simplify the preparation of the Bidding Documents for each procurement,
the PBDs groups the provisions that are intended to be used unchanged in Section II.
Instructions to Bidders (ITB) and in Section IV. General Conditions of Contract (GCC). Data
and provisions specific to each procurement and contract should be included in Section III.
Bid Data Sheet (BDS); Section V. Special Conditions of Contract (SCC); Section VI. Schedule of
Requirements; Section VII. Technical Specifications, and Section IX. Foreign-Assisted Projects.
The forms to be used are provided in Section VIII. Bidding Forms.

Care should be taken to check the relevance of the provisions of the PBDs against the
requirements of the specific Goods to be procured. In addition, each section is prepared with
notes intended only as information for the Procuring Entity or the person drafting the Bidding
Documents. They shall not be included in the final documents, except for the notes
introducing Section VIII. Bidding Forms where the information is useful for the Bidder. The
following general directions should be observed when using the documents:

1
Unless the Treaty or International or Executive Agreement expressly provides use of foreign government/foreign or
international financing institution procurement guidelines.

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(a) All the documents listed in the Table of Contents are normally required for the
procurement of Goods. However, they should be adapted as necessary to the
circumstances of the Project.

(b) Specific details, such as the “name of the Procuring Entity” and “address for
bid submission,” should be furnished in the ITB, BDS, and SCC. The final
documents should contain neither blank spaces nor options.

(c) This Preface and the footnotes or notes in italics included in the Invitation to
Bid, BDS, SCC, Schedule of Requirements, and Specifications are not part of the
text of the final document, although they contain instructions that the
Procuring Entity should strictly follow. The Bidding Documents should contain
no footnotes except Section VIII. Bidding Forms since these provide important
guidance to Bidders.

(d) The cover should be modified as required to identify the Bidding Documents
as to the names of the Project, Contract, and Procuring Entity, in addition to
date of issue.

(e) If modifications must be made to bidding requirements, they can be presented

in the BDS. Modifications for specific Project or Contract details should be
provided in the SCC as amendments to the Conditions of Contract. For easy
completion, whenever reference has to be made to specific clauses in the BDS
or SCC these terms shall be printed in bold type face on Section I. Instructions
to Bidders and Section III. General Conditions of Contract, respectively.

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 TABLE OF CONTENTS

SECTION I. INVITATION TO BID ............................................................................... 5

SECTION II. INSTRUCTIONS TO BIDDERS ................................................................... 9
SECTION III. BID DATA SHEET .............................................................................. 42
SECTION IV. GENERAL CONDITIONS OF CONTRACT .................................................... 46
SECTION V. SPECIAL CONDITIONS OF CONTRACT ....................................................... 64
SECTION VI. SCHEDULE OF REQUIREMENTS.............................................................. 72
SECTION VII. TECHNICAL SPECIFICATIONS ............................................................... 73
SECTION VIII. BIDDING FORMS ........................................................................... 76
 Section I. Invitation to Bid
Notes on the Invitation to Bid

The Invitation to Bid provides information that enables potential Bidders to decide whether to
participate in the procurement at hand. The Invitation to Bid shall be:

(a) Posted continuously in the Philippine Government Electronic Procurement System

(PhilGEPS) website, the website of the Procuring Entity concerned, if available, and the
website prescribed by the foreign government/foreign or international financing institution,
if applicable, for seven (7) calendar days starting on the date of advertisement;

(b) Posted at any conspicuous place reserved for this purpose in the premises of the Procuring
Entity concerned for seven (7) calendar days, as certified by the head of the Bids and
Awards Committee (BAC) Secretariat of the Procuring Entity concerned; and

(c) Advertised at least once in a newspaper of general nationwide circulation which has been
regularly published for at least two (2) years before the date of issue of the advertisement,
subject to Section 21.2.1(c) of the IRR of RA 91842.

Apart from the essential items listed in the Bidding Documents, the Invitation to Bid should also
indicate the following:

(a) The date of availability of the Bidding Documents, which shall be from the time the
Invitation to Bid is first advertised/posted until the deadline for the submission and receipt
of bids;

(b) The place where the Bidding Documents may be acquired or the website where it may be
downloaded;

(c) The deadline for the submission and receipt of bids from the last day of posting of the
Invitation to Bid; and

(d) Any important bid evaluation criteria (e.g., the application of a margin of preference in bid
evaluation).

The Invitation to Bid should be incorporated in the Bidding Documents. The information contained
in the Invitation to Bid must conform to the Bidding Documents and in particular to the relevant
information in the BDS.

For foreign-assisted projects, the Invitation to Bid to be used is provided in Section IX-Foreign
Assisted Projects.

2
Two years after the effectivity of the 2016 Revised IRR of R.A. No. 9184 on 28 October 2016, advertisement in a newspaper
of general nationwide circulation shall no longer be required. However, a procuring entity that cannot post its opportunities
in the PhilGEPS for justifiable reasons shall continue to publish its advertisements in a newspaper of general nationwide
circulation.
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 REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF AGRARIAN REFORM
Tunay na Pagbabago sa Repormang Agraryo

INVITATION TO APPLY FOR ELIGIBILITY AND TO BID FOR Procurement of Farm Machineries and
Equipment under Major Crop-Based Productivity Enhancement Project in the Province of Aurora

The Department of Agrarian Reform, Aurora Provincial Agrarian Reform Office, through the
General Appropriations Act FY 2024 intends to apply the sum of Two Million Seven Hundred
Twenty Thousand Pesos Only (P2,720,000.00) being the Approved Budget for the Contract
(ABC) to payments under the contract for the Procurement of Farm Machineries and
Equipment under Major Crop-Based Productivity Enhancement Project in the Province of
Aurora:

1. Bids received in excess of the ABC shall be automatically rejected at bid opening.

2. The Department of Agrarian Reform, Aurora Provincial Agrarian Reform Office now
invites bids for the following:

Unit Item Description Quantity Unit Cost

unit Combine Harvester 1 1,750,000.00

Engine Type: Water Cooled, four cycle, four-cylinder, diesel engine
Total displacement: 2.434 liters
Output: 50.7 kW; Rotational Speed: 2,700 RPM
Horse Power: 70 HP
Fuel Tank Capacity: 85-90 liters
Travel Section:
Speed shift system: Range (3F/3R)
Turning System: Turning left and right up and down reel
Reaper Section:
Reel: Diameter x Width: 900 mm x 1903 mm
Gathering Length: 2,075 mm
Cutter Bar length: 1,980 mm
Thresher Section:
Threshing Cylinder: Diameter x length: 620 mm x 1,650 mm
Revolution: 560 rpm
Threshing System: Axial Flow
Hopper:
Capacity: 500L/approx. 300 kilograms
Take out system: 2/bagging
Electrical System: 12 volts battery starting, lighting equipment, alarms,
Harvesting Capacity: 0.3-0.62 hectare/hour for rice
AMTEC Tested
List of Standard Tools:
>1 Pc. Tool Box
>1 Pc. Wrench, Socket 17 mm x 19 mm
>1 Pc. Wrench Socket 12 mm x 12 mm

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 >1 Pc. Screw Diver (flat head) 8"
> Pc. Spanner 10 mm x 12 mm
>1 Pc. Spanner 12mm x 14 mm
>1 Pc. Spanner 17mm x 19 mm
>1 Pc. Spanner 22mm x 24mm
>1 Pc. Wrench 200 mm
>1 pc. Plier 150 mm
>1 Pc. Oiler (Capacity 200 ml.)
>1 Pc. User Guide book
>1 Pc. Owner’s Manual
>Warranty Certificate
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory
defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the
word "DAR CRFPSP Aurora"

unit 4 Wheel Drive tractor 1 970,000.00

Engine:
Type: Direct injection, vertical, Water cooled, 4 cycle diesel
Number of Cylinder: 3
Engine Gross power: 39-39.5 HP
Engine Net Power: 38.5 HP
PTO Power: 31.5 HP-32hp
Displacement: 1,642c.c. to 1,826 c.c.
Battery: 12 volts
Fuel tank Capacity: 38- 40 liters
Dimensions:
Overall Length: 2,920 mm
Overall width: 1,422mm-
Overall height (top of canopy): 2,035 mm
Wheel base: 1,610 mm
Minimum Ground Clearance: 355 mm
Tread Front: 1,080 mm; rear: 1,120 mm
Weight: 1,275 kg
Clutch: Dry type single stage
Travelling System
Tire size:
Front: 8-16
Rear: 12.4-24
Steering: Integral type power steering
Transmission: Gear shift, 8 forward and 8 reverse
Minimum Turning Radius (with brake) 2.6 m
Travelling Speed: Forward Min. 2.0-Max. 25.1 Reverse Min 2.0-Max
22.9
Brake: Mechanical wet disk type
Hydraulic System:
Pump Capacity (l/min): 23.9
Hydraulic control system: Position control
Hydraulics: Three-point hitch category 1
Max. lift force: At lift Points (kg): 906; 24 in. behind (kg): 651
PTO system:
Rear PTO: SAE 1-3/8, 6 splines
PTO/ engine speed: 540 (rpm) at 2376 (rpm)
750 (rpm) at 2596 (rpm)
AMTEC Tested
List of Standard Tools:

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 >1 Pc Box Wrench 14 mm x 15 mm
>1 Pc Box Wrench 16 mm x 17 mm
>1 Pc Box Wrench 18 mm x 19 mm
>1 Pc. Hydraulic Jack 3 tons
>1 Pc. Belt Wrench
>1 Pc. Wrench 22 mm to 19 mm
>1 Pc. Screw Driver Flat 8"
1 Pc. Screw Driver Flat 5"
1 Pc. Screw Driver Phillip 5"
1 Pc. Grease Gun 120 c.c.
Rotary Tiller:
Total width: 1750 mm
Working width: 1483 mm
Number of blades: 32 pcs.
Weight: 300 kg
AMTEC Tested
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory
defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the
word "DAR CRFPSP Aurora"

3. Delivery of the Goods is required within seven (7) working days after receipt of Notice
to Proceed (NTP). The description of an eligible bidder is contained in the Bidding
Documents, particularly, in Section II. Instructions to Bidders.

4. Bidding will be conducted through open competitive bidding procedures using a

nondiscretionary “pass/fail” criterion as specified in the 2016 Revised Implementing
Rules and Regulations (IRR) of Republic Act (RA) 9184, otherwise known as the
“Government Procurement Reform Act”.

In addition, Bidding is restricted to Filipino citizens/sole proprietorships, partnerships,

or organizations with at least sixty percent (60%) interest or outstanding capital stock
belonging to citizens of the Philippines, and to citizens or organizations of a country
the laws or regulations of which grant similar rights or privileges to Filipino citizens,
pursuant to RA 5183.

5. Interested bidders may obtain further information from Department of Agrarian

Reform, Aurora Provincial Office and inspect the Bidding Documents at the address
given below.

6. A complete set of Bidding Documents may be acquired by interested Bidders on

August 16, 2024, to August 28, 2024, at the address given below from 9:00 AM to 5:00
PM after payment of a non-refundable fee in the amount of TWO THOUSAND PESOS
ONLY (P2,000.00).

It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS) and the website of the

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 Procuring Entity, provided that Bidders shall pay the applicable fee for the Bidding
Documents not later than the submission of their bids.

7. Deadline for submission of eligibility documents of prospective bidders shall be on

12:00 NN, August 28, 2024. Eligibility Check will be held on the same date and time.

8. Bids must be duly received by the BAC Secretariat at the address below on or before
12:00 NN, September 2, 2024. All Bids must be accompanied by a bid security in any
of the acceptable forms and in the amount stated in ITB Clause 18.

9. Bid opening shall be on September 2, 2024, 2:00 PM at Department of Agrarian

Reform, Aurora Provincial Office, Baler, Aurora. Bids will be opened in the presence of
the bidders’ representatives who choose to attend at the address below. Late bids shall
not be accepted.

10. The Department of Agrarian Reform, Aurora Provincial Office, Baler, Aurora reserves
the right to reject any and all bids, declare a failure of bidding, or not award the
contract at any time prior to contract award in accordance with Section 41 of RA 9184
and its IRR, without thereby incurring any liability to the affected bidder or bidders.

11. For further information, please refer to:

ROSSANA P. ESPERANZA
Secretariat, Bids and Awards Committee
Department of Agrarian Reform
Aurora Provincial Agrarian Reform Office
Baler, Aurora 3200
SMART Contact No. 09190849332
[email protected]

__________________________________
IAN VINCENT O. NATIVIDAD
Chairperson, Bids and Awards Committee

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 Section II. Instructions to Bidders
Notes on the Instructions to Bidders

This Section of the Bidding Documents provides the information necessary for bidders to
prepare responsive bids, in accordance with the requirements of the Procuring Entity. It
also provides information on bid submission, eligibility check, opening and evaluation of
bids, post-qualification and on the award of contract.

This Section also contains provisions that are to be used unchanged. Section III consists of
provisions that supplement, amend, or specify in detail, information or requirements
included in Section II which are specific to each procurement.

Matters governing performance of the Supplier, payments under the contract, or matters
affecting the risks, rights, and obligations of the parties under the contract are not normally
included in this Section, but rather under Section IV. General Conditions of Contract (GCC),
and/or Section V. Special Conditions of Contract (SCC). If duplication of a subject is
inevitable in other sections of the document prepared by the Procuring Entity, care must be
exercised to avoid contradictions between clauses dealing with the same matter.

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 TABLE OF CONTENTS

A. General ........................................................................................................................... 14
1. Scope of Bid .............................................................................................................. 14
2. Source of Funds......................................................................................................... 14
3. Corrupt, Fraudulent, Collusive, and Coercive Practices ............................................ 14
4. Conflict of Interest .................................................................................................... 16
5. Eligible Bidders .......................................................................................................... 17
6. Bidder’s Responsibilities ........................................................................................... 18
7. Origin of Goods ......................................................................................................... 21
8. Subcontracts ............................................................................................................. 21
B. Contents of Bidding Documents ..................................................................................... 21
9. Pre-Bid Conference ................................................................................................... 21
10. Clarification and Amendment of Bidding Documents .......................................... 22
C. Preparation of Bids ......................................................................................................... 23
11. Language of Bids ................................................................................................... 23
12. Documents Comprising the Bid: Eligibility and Technical Components ............... 23
13. Documents Comprising the Bid: Financial Component ........................................ 25
14. Alternative Bids ..................................................................................................... 26
15. Bid Prices ............................................................................................................... 26
16. Bid Currencies ....................................................................................................... 27
17. Bid Validity ............................................................................................................ 28
18. Bid Security ........................................................................................................... 28
19. Format and Signing of Bids ................................................................................... 31
20. Sealing and Marking of Bids .................................................................................. 31
D. Submission and Opening of Bids .................................................................................... 32
21. Deadline for Submission of Bids ........................................................................... 32
22. Late Bids ................................................................................................................ 32
23. Modification and Withdrawal of Bids ................................................................... 32
24. Opening and Preliminary Examination of Bids ..................................................... 33
E. Evaluation and Comparison of Bids ................................................................................ 35
25. Process to be Confidential .................................................................................... 35
26. Clarification of Bids ............................................................................................... 35
27. Domestic Preference ............................................................................................. 35
28. Detailed Evaluation and Comparison of Bids ........................................................ 36

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29. Post-Qualification .................................................................................................. 37
30. Reservation Clause ................................................................................................ 38
F. Award of Contract ........................................................................................................... 40
31. Contract Award ..................................................................................................... 40
32. Signing of the Contract ......................................................................................... 40
33. Performance Security............................................................................................ 41
34. Notice to Proceed ................................................................................................. 42
35. Protest Mechanism ............................................................................................... 42
1. Definitions ................................................................................................................. 50
2. Corrupt, Fraudulent, Collusive, and Coercive Practices ............................................ 51
3. Inspection and Audit by the Funding Source ............................................................ 52
4. Governing Law and Language ................................................................................... 52
5. Notices ...................................................................................................................... 53
6. Scope of Contract ...................................................................................................... 53
7. Subcontracting .......................................................................................................... 53
8. Procuring Entity’s Responsibilities ............................................................................ 53
9. Prices ......................................................................................................................... 54
10. Payment ................................................................................................................ 54
11. Advance Payment and Terms of Payment ............................................................ 55
12. Taxes and Duties.................................................................................................... 55
13. Performance Security............................................................................................ 55
14. Use of Contract Documents and Information ....................................................... 56
15. Standards .............................................................................................................. 56
16. Inspection and Tests .............................................................................................. 57
17. Warranty ............................................................................................................... 57
18. Delays in the Supplier’s Performance ................................................................... 58
19. Liquidated Damages.............................................................................................. 59
20. Settlement of Disputes.......................................................................................... 59
21. Liability of the Supplier ......................................................................................... 59
22. Force Majeure ....................................................................................................... 60
23. Termination for Default ......................................................................................... 60
24. Termination for Insolvency ................................................................................... 61
25. Termination for Convenience ................................................................................ 61
26. Termination for Unlawful Acts .............................................................................. 62
27. Procedures for Termination of Contracts .............................................................. 62

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28. Assignment of Rights............................................................................................. 63
29. Contract Amendment ........................................................................................... 63
30. Application ............................................................................................................ 64

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 A. General

1. Scope of Bid
1.1. The Procuring Entity named in the BDS invites bids for the supply and delivery
of the Goods as described in Section VII. Technical Specifications.

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
The Procuring Entity has a budget or has received funds from the Funding Source
named in the BDS, and in the amount indicated 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, Collusive, and Coercive Practices

3.1. Unless otherwise specified in the BDS, the Procuring Entity as well as the bidders
and 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:

(i) “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 RA 3019.

(ii) “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,
noncompetitive levels and to deprive the Procuring Entity of the
benefits of free and open competition.

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 (iii) “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.

(iv) “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;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or concealing

of 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

(bb) 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.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.

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 3.1(a).

3.3. Furthermore, the Funding Source and the Procuring Entity reserve the right to
inspect and audit records and accounts of a bidder or supplier in the bidding
for and performance of a contract themselves or through independent auditors
as reflected in the GCC Clause 3.

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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 (g) 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;

(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;

(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; or

(g) A Bidder 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.

4.2. In accordance with Section 47 of the IRR of RA 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 (HoPE), members of the Bids and Awards
Committee (BAC), members of the Technical Working Group (TWG), members
of the BAC Secretariat, the head of the Project Management Office (PMO) or
the end-user unit, and the project consultants, by consanguinity or affinity up
to the third civil degree. On the part of the Bidder, 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;

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 (c) If the Bidder is a corporation, to all its officers, directors, and controlling
stockholders;

(d) If the Bidder is a cooperative, to all its officers, directors, and controlling
shareholders or members; and

(e) If the Bidder is a joint venture (JV), the provisions of items (a), (b), (c),
or (d) 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 provided 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 organized under the laws of the Philippines; and

(e) Persons/entities forming themselves into a Joint Venture (JV), i.e., a

group of two (2) 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 JV 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 RA 9184 and its IRR allow foreign bidders to participate;

(b) Citizens, corporations, or associations of a country, 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

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 (d) When there is a need to prevent situations that defeat competition or
restrain trade.

5.3. Government owned or –controlled corporations (GOCCs) may be eligible to

participate only if they can establish that they (a) are legally and financially
autonomous, (b) operate under commercial law, and (c) are not attached
agencies of the Procuring Entity.

5.4. Unless otherwise provided in the BDS, the Bidder must have completed a Single
Largest Completed Contract (SLCC) similar to the Project and the value of
which, adjusted, if necessary, by the Bidder to current prices using the
Philippine Statistics Authority (PSA) 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 Clause 12.1(a)(ii).

5.5. The Bidder must submit a computation of its Net Financial Contracting Capacity
(NFCC), which must be at least equal to the ABC to be bid, calculated as follows:

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 to be bid.

The values of the domestic bidder’s current assets and current liabilities shall
be based on the latest Audited Financial Statements submitted to the BIR.

For purposes of computing the foreign bidders’ NFCC, the value of the current
assets and current liabilities shall be based on their audited financial
statements prepared in accordance with international financial reporting
standards.

If the prospective bidder opts to submit a committed Line of Credit, it must be

at least equal to ten percent (10%) of the ABC to be bid. If issued by a foreign
universal or commercial bank, it shall be confirmed or authenticated by a local
universal or commercial bank.

6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a sworn statement in
the form prescribed in Section VIII. Bidding Forms as required in ITB Clause
12.1(b)(iii).

6.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding Documents;

18
(b) Having acknowledged all conditions, local or otherwise, affecting the
implementation of the contract;

(c) Having made an estimate of the facilities available and needed for the
contract to be bid, if any;

(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin(s) as provided under ITB Clause 10.4.

(e) Ensuring that it is not “blacklisted” or barred from bidding by the GOP
or any of its agencies, offices, corporations, or LGUs, including foreign
government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB;

(f) Ensuring that each of the documents submitted in satisfaction of the

bidding requirements is an authentic copy of the original, complete,
and all statements and information provided therein are true and
correct;

(g) Authorizing the HoPE or its duly authorized representative/s to verify

all the documents submitted;

(h) Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary and/or to represent the Bidder in
the bidding, with the duly notarized Secretary’s Certificate attesting to
such fact, if the Bidder is a corporation, partnership, cooperative, or
joint venture;

(i) Complying with the disclosure provision under Section 47 of RA 9184

and its IRR in relation to other provisions of RA 3019;

(j) Complying with existing labor laws and standards, in the case of
procurement of services; Moreover, bidder undertakes to:

(i) Ensure the entitlement of workers to wages, hours of work,

safety and health and other prevailing conditions of work as
established by national laws, rules and regulations; or collective
bargaining agreement; or arbitration award, if and when
applicable.

In case there is a finding by the Procuring Entity or the DOLE of

underpayment or non-payment of workers’ wage and
wagerelated benefits, bidder agrees that the performance
security or portion of the contract amount shall be withheld in
favor of the complaining workers pursuant to appropriate
provisions of Republic Act No. 9184 without prejudice to the

19
 institution of appropriate actions under the Labor Code, as
amended, and other social legislations.

(ii) Comply with occupational safety and health standards and to

correct deficiencies, if any.

In case of imminent danger, injury or death of the worker, bidder

undertakes to suspend contract implementation pending
clearance to proceed from the DOLE Regional Office and to
comply with Work Stoppage Order; and

(iii) Inform the workers of their conditions of work, labor clauses

under the contract specifying wages, hours of work and other
benefits under prevailing national laws, rules and regulations; or
collective bargaining agreement; or arbitration award, if and
when applicable, through posting in two (2) conspicuous places
in the establishment’s premises; and

(k) Ensuring that it did not give or pay, directly or indirectly, any
commission, amount, fee, or any form of consideration, pecuniary or
otherwise, to any person or official, personnel or representative of the
government in relation to any procurement project or activity.

Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.

6.3. The Bidder is expected to examine all instructions, forms, terms, and
specifications in the Bidding Documents.

6.4. It shall be the sole responsibility of the Bidder to determine and to satisfy itself
by such means as it considers necessary or desirable as to all matters pertaining
to the contract to be bid, including: (a) the location and the nature of this
Project; (b) climatic conditions; (c) transportation facilities; and (d) other
factors that may affect the cost, duration, and execution or implementation of
this Project.

6.5. The Procuring Entity shall not assume any responsibility regarding erroneous
interpretations or conclusions by the prospective or eligible bidder out of the
data furnished by the procuring entity. However, the Procuring Entity shall
ensure that all information in the Bidding Documents, including
bid/supplemental bid bulletin/s issued, are correct and consistent.

6.6. Before submitting their bids, the Bidder is deemed to have become familiar
with all existing laws, decrees, ordinances, acts and regulations of the
Philippines which may affect this Project in any way.

20
 6.7. The Bidder shall bear all costs associated with the preparation and submission
of his bid, and the Procuring Entity will in no case be responsible or liable for
those costs, regardless of the conduct or outcome of the bidding process.

6.8. The Bidder should note that the Procuring Entity will accept bids only from
those that have paid the applicable fee for the Bidding Documents at the office
indicated in the Invitation to Bid.

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 United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, subject to ITB Clause 27.1.

8. Subcontracts
8.1. Unless otherwise specified in the BDS, the Bidder may subcontract 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 submit the documentary requirements under ITB Clause 12
and comply with the eligibility criteria 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
subcontracted 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 of its bid.

B. Contents of Bidding Documents

9. Pre-Bid Conference
9.1. (a) If so specified in the BDS, a pre-bid conference shall be held at the venue and
on the date indicated therein, to clarify and address the Bidders’ questions on
the technical and financial components of this Project.

(b) The pre-bid conference shall be held at least twelve (12) calendar days
before the deadline for the submission and receipt of bids, but not earlier than
seven (7) calendar days from the posting of the invitation to bid/bidding
documents in the PhilGEPS website. If the Procuring Entity determines that, by
reason of the method, nature, or complexity of the contract to be bid, or when
international participation will be more advantageous to the GOP, a longer
period for the preparation of bids is necessary, the pre-bid conference shall be

21
 held at least thirty (30) calendar days before the deadline for the submission
and receipt of bids, as specified in the BDS.

9.2. Bidders are encouraged to attend the pre-bid conference to ensure that they fully
understand the Procuring Entity’s requirements. Non-attendance of the Bidder
will in no way prejudice its bid; however, the Bidder is expected to know the
changes and/or amendments to the Bidding Documents as recorded in the
minutes of the pre-bid conference and the Supplemental/Bid Bulletin. The
minutes of the pre-bid conference shall be recorded and prepared not later
than five (5) calendar days after the pre-bid conference. The minutes shall be
made available to prospective bidders not later than five (5) days upon written
request.

9.3 Decisions of the BAC amending any provision of the bidding documents shall be
issued in writing through a Supplemental/Bid Bulletin at least seven (7)
calendar days before the deadline for the submission and receipt of bids.

10. Clarification and Amendment of Bidding Documents

10.1. Prospective bidders may request for clarification on and/or interpretation of any
part of the Bidding Documents. Such request must be in writing and submitted
to the Procuring Entity at the address indicated in the BDS at least ten (10)
calendar days before the deadline set for the submission and receipt of Bids.

10.2. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin,
to be made available to all those who have properly secured the Bidding
Documents, at least seven (7) calendar days before the deadline for the
submission and receipt of Bids.

10.3. Supplemental/Bid Bulletins may also be issued upon the Procuring Entity’s
initiative for purposes of clarifying or modifying any provision of the Bidding
Documents not later than seven (7) calendar days before the deadline for the
submission and receipt of Bids. Any modification to the Bidding Documents
shall be identified as an amendment.

10.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of the Procuring Entity concerned, if available, and at
any conspicuous place in the premises of the Procuring Entity concerned. It
shall be the responsibility of all Bidders who have properly secured the Bidding
Documents to inquire and secure Supplemental/Bid Bulletins that may be
issued by the BAC. However, Bidders who have submitted bids before the
issuance of the Supplemental/Bid Bulletin must be informed and allowed to
modify or withdraw their bids in accordance with ITB Clause 23.

22
 C. Preparation of Bids

11. Language of Bids

The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or statements,
the bids, and all other documents submitted to the BAC are in foreign language other
than English, it must be accompanied by a translation of the documents in English. The
documents shall be translated by the relevant foreign government agency, the foreign
government agency authorized to translate documents, or a registered translator in
the foreign bidder’s country; and shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent office having jurisdiction over the
foreign bidder’s affairs in the Philippines. The English translation shall govern, for
purposes of interpretation of the bid.

12. Documents Comprising the Bid: Eligibility and Technical Components

12.1. Unless otherwise indicated in the BDS, the first envelope shall contain the
following eligibility and technical documents:

(a) Eligibility Documents –

Class “A” Documents:

(i) PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR, except for foreign
bidders participating in the procurement by a Philippine Foreign
Service Office or Post, which shall submit their eligibility
documents under Section 23.1 of the IRR, provided, that the
winning bidder shall register with the PhilGEPS in accordance
with section 37.1.4 of the IRR.

(ii) Statement of all its ongoing government and private contracts,

including contracts awarded but not yet started, if any, whether
similar or not similar in nature and complexity to the contract to
be bid; and

Statement of the Bidder’s SLCC similar to the contract to be bid,

in accordance with ITB Clause 5.4, within the relevant period as
provided in the BDS.

The two statements required shall indicate for each contract the
following:

(ii.1) name of the contract;

(ii.2) date of the contract;

(ii.3) contract duration;

23
(ii.4) owner’s name and address;

(ii.5) kinds of Goods;

(ii.6) For Statement of Ongoing Contracts - amount of contract and value of

outstanding contracts;

(ii.7) For Statement of SLCC - amount of completed contracts, adjusted by the Bidder
to current prices using PSA’s consumer price index, if necessary for the purpose
of meeting the SLCC requirement;

(ii.8) date of delivery; and

(ii.9) end user’s acceptance or official receipt(s) or sales invoice issued for the
contract, if completed, which shall be attached to the statements.

(iii) NFCC computation in accordance with ITB Clause 5.5 or a

committed Line of Credit from a universal or commercial bank.
Class “B” Document:

(iv) If applicable, the Joint Venture Agreement (JVA) in case the joint
venture is already in existence, or duly notarized statements
from all the potential joint venture partners in accordance with
Section 23.1(b) of the IRR.

(b) Technical Documents –

(i) Bid security in accordance with ITB Clause 18. If the Bidder opts to
submit the bid security in the form of:

(i.1) a bank draft/guarantee or an irrevocable letter of credit

issued by a foreign bank, it shall be accompanied by a
confirmation from a Universal or Commercial Bank; or

(i.2) a surety bond, it shall be accompanied by a certification

by the Insurance Commission that the surety or
insurance company is authorized to issue such
instruments;

(ii) Conformity with technical specifications, as enumerated and

specified in Sections VI and VII of the Bidding Documents; and

(iii) Sworn statement in accordance with Section 25.3 of the IRR of

RA 9184 and using the form prescribed in Section VIII. Bidding
Forms.

(iv) For foreign bidders claiming eligibility by reason of their

country’s extension of reciprocal rights to Filipinos, a
certification from the relevant government office of their

24
 country stating that Filipinos are allowed to participate in their
government procurement activities for the same item or
product.

13. Documents Comprising the Bid: Financial Component

13.1. Unless otherwise stated in the BDS, the financial component of the bid shall
contain the following:

(a) Financial Bid Form, which includes bid prices and the applicable Price
Schedules, in accordance with ITB Clauses 15.1 and 15.4;

(b) If the Bidder claims preference as a Domestic Bidder, a certification

from the DTI issued in accordance with ITB Clause 27, unless otherwise
provided in the BDS; and

(c) Any other document related to the financial component of the bid as
stated in the BDS.

13.2. (a) Unless otherwise stated in the BDS, all bids that exceed the ABC shall not
be accepted.

(b) Unless otherwise indicated in the BDS, for foreign-funded procurement, a

ceiling may be applied to bid prices provided the following conditions
are met:

(i) Bidding Documents are obtainable free of charge on a freely

accessible website. If payment of Bidding Documents is required
by the procuring entity, payment could be made upon the
submission of bids.

(ii) The procuring entity has procedures in place to ensure that the
ABC is based on recent estimates made by the responsible unit of
the procuring entity and that the estimates reflect the quality,
supervision and risk and inflationary factors, as well as prevailing
market prices, associated with the types of works or goods to be
procured.

(iii) The procuring entity has trained cost estimators on estimating

prices and analyzing bid variances.

(iv) The procuring entity has established a system to monitor and

report bid prices relative to ABC and engineer’s/procuring entity’s
estimate.

(v) The procuring entity has established a monitoring and evaluation

system for contract implementation to provide a feedback on
actual total costs of goods and works.

25
14. Alternative Bids
14.1 Alternative Bids shall be rejected. For this purpose, alternative bid is an offer
made by a Bidder in addition or as a substitute to its original bid which may be
included as part of its original bid or submitted separately therewith for
purposes of bidding. A bid with options is considered an alternative bid
regardless of whether said bid proposal is contained in a single envelope or
submitted in two (2) or more separate bid envelopes.

14.2 Each Bidder shall submit only one Bid, either individually or as a partner in a JV.
A Bidder who submits or participates in more than one bid (other than as a
subcontractor if a subcontractor is permitted to participate in more than one
bid) will cause all the proposals with the Bidder’s participation to be
disqualified. This shall be without prejudice to any applicable criminal, civil and
administrative penalties that may be imposed upon the persons and entities
concerned.

15. Bid Prices

15.1. The Bidder shall complete the appropriate Schedule of Prices included herein,
stating the unit prices, total price per item, the total amount and the expected
countries of origin of the Goods to be supplied under this Project.

15.2. The Bidder shall fill in rates and prices for all items of the Goods described in the
Schedule of Prices. Bids not addressing or providing all of the required items
in the Bidding Documents including, where applicable, Schedule of Prices, shall
be considered non-responsive and, thus, automatically disqualified. In this
regard, where a required item is provided, but no price is indicated, the same
shall be considered as non-responsive, but specifying a zero (0) or a dash (-) for
the said item would mean that it is being offered for free to the Government,
except those required by law or regulations to be accomplished.

15.3. The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost and Insurance
Paid to (CIP), Delivered Duty Paid (DDP), and other trade terms used to describe
the obligations of the parties, shall be governed by the rules prescribed in the
current edition of the International Commercial Terms (INCOTERMS) published
by the International Chamber of Commerce, Paris.

15.4. Prices indicated on the Price Schedule shall be entered separately in the following
manner:

(a) For Goods offered from within the Procuring Entity’s country:

(i) The price of the Goods quoted EXW (ex works, ex factory, ex
warehouse, ex showroom, or off-the-shelf, as applicable);

(ii) The cost of all customs duties and sales and other taxes already
paid or payable;

26
 (iii) The cost of transportation, insurance, and other costs incidental
to delivery of the Goods to their final destination; and (iv) The
price of other (incidental) services, if any, listed in the BDS. (b)
For Goods offered from abroad:

(i) Unless otherwise stated in the BDS, the price of the Goods shall
be quoted DDP with the place of destination in the Philippines
as specified in the BDS. In quoting the price, the Bidder shall be
free to use transportation through carriers registered in any
eligible country. Similarly, the Bidder may obtain insurance
services from any eligible source country.

(ii) The price of other (incidental) services, if any, listed in the BDS.

(c) For Services, based on the form which may be prescribed by the
Procuring Entity, in accordance with existing laws, rules and regulations

15.5. Prices quoted by the Bidder shall be fixed during the Bidder’s performance of the
contract and not subject to variation or price escalation on any account. A bid
submitted with an adjustable price quotation shall be treated as nonresponsive
and shall be rejected, pursuant to ITB Clause 24.

All bid prices for the given scope of work in the contract as awarded shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances. Upon the
recommendation of the Procuring Entity, price escalation may be allowed in
extraordinary circumstances as may be determined by the National Economic
and Development Authority in accordance with the Civil Code of the
Philippines, and upon approval by the GPPB. Nevertheless, in cases where the
cost of the awarded contract is affected by any applicable new laws,
ordinances, regulations, or other acts of the GOP, promulgated after the date
of bid opening, a contract price adjustment shall be made or appropriate relief
shall be applied on a no loss-no gain basis.

16. Bid Currencies

16.1. Prices shall be quoted in the following currencies:

(a) For Goods that the Bidder will supply from within the Philippines, the
prices shall be quoted in Philippine Pesos.

(b) For Goods that the Bidder will supply from outside the Philippines, the
prices may be quoted in the currency(ies) stated in the BDS. However,
for purposes of bid evaluation, bids denominated in foreign currencies
shall be converted to Philippine currency based on the exchange rate as
published in the Bangko Sentral ng Pilipinas (BSP) reference rate
bulletin on the day of the bid opening.

27
 16.2. If so allowed in accordance with ITB Clause 16.1, the Procuring Entity for
purposes of bid evaluation and comparing the bid prices will convert the
amounts in various currencies in which the bid price is expressed to Philippine
Pesos at the foregoing exchange rates.

16.3. Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.

17. Bid Validity

17.1. Bids shall remain valid for the period specified in the BDS which shall not exceed
one hundred twenty (120) calendar days from the date of the opening of bids.

17.2. In exceptional circumstances, prior to the expiration of the bid validity period,
the Procuring Entity may request Bidders to extend the period of validity of
their bids. The request and the responses shall be made in writing. The bid
security described in ITB Clause 18 should also be extended corresponding to
the extension of the bid validity period at the least. A Bidder may refuse the
request without forfeiting its bid security, but his bid shall no longer be
considered for further evaluation and award. A Bidder granting the request
shall not be required or permitted to modify its bid.

18. Bid Security

18.1. The Bidder shall submit a Bid Securing Declaration or any form of Bid Security in
the amount stated in the BDS, which shall be not less than the percentage of
the ABC in accordance with the following schedule:

Amount of Bid Security

Form of Bid Security (Not Less than the Percentage of the
ABC)
(a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.
Two percent (2%)
For biddings conducted by LGUs,
the Cashier’s/Manager’s Check
may be issued by other banks
certified by the BSP as authorized
to issue such financial
instrument.

28
 (b) Bank draft/guarantee or
irrevocable letter of credit issued
by a Universal or Commercial
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

For biddings conducted by LGUs,

Bank Draft/Guarantee, or
Irrevocable Letter of Credit may
be issued by other banks certified
by the BSP as authorized to issue
such financial instrument.

(c) Surety bond callable upon

demand issued by a surety or
insurance company duly certified Five percent (5%)
by the Insurance Commission as
authorized to issue such security.

The Bid Securing Declaration mentioned above is an undertaking which states,

among others, that the Bidder shall enter into contract with the procuring
entity and furnish the performance security required under ITB Clause 33.2,
within ten (10) calendar days from receipt of the Notice of Award, and commits
to pay the corresponding amount as fine, and be suspended for a period of
time from being qualified to participate in any government procurement
activity in the event it violates any of the conditions stated therein as provided
in the guidelines issued by the GPPB.

18.2. The bid security should be valid for the period specified in the BDS. Any bid not
accompanied by an acceptable bid security shall be rejected by the Procuring
Entity as non-responsive.

18.3. No bid securities shall be returned to Bidders after the opening of bids and before
contract signing, except to those that failed or declared as postdisqualified,
upon submission of a written waiver of their right to file a request for
reconsideration and/or protest, or upon the lapse of the reglementary period
to file a request for reconsideration or protest. Without prejudice on its
forfeiture, bid securities shall be returned only after the Bidder with the Lowest
Calculated Responsive Bid (LCRB) has signed the contract and furnished

the performance security, but in no case later than the expiration of the bid
security validity period indicated in ITB Clause 18.2.

18.4. Upon signing and execution of the contract pursuant to ITB Clause 32, and the
posting of the performance security pursuant to ITB Clause 33, the successful

29
 Bidder’s bid security will be discharged, but in no case later than the bid
security validity period as indicated in the ITB Clause 18.2.

18.5. The bid security may be forfeited:

(a) if a Bidder:

(i) withdraws its bid during the period of bid validity specified in
ITB Clause 17;

(ii) does not accept the correction of errors pursuant to ITB Clause
28.3(b);

(iii) has a finding against the veracity of any of the documents

submitted as stated in ITB Clause 29.2;

(iv) submission of eligibility requirements containing

false information or falsified documents;

(v) submission of bids that contain false information or falsified

documents, or the concealment of such information in the bids
in order to influence the outcome of eligibility screening or any
other stage of the public bidding;

(vi) allowing the use of one’s name, or using the name of another
for purposes of public bidding;

(vii) withdrawal of a bid, or refusal to accept an award, or enter into

contract with the Government without justifiable cause, after
the Bidder had been adjudged as having submitted the LCRB;

(viii) refusal or failure to post the required performance security

within the prescribed time;

(ix) refusal to clarify or validate in writing its bid during

postqualification within a period of seven (7) calendar days from
receipt of the request for clarification;

(x) any documented attempt by a Bidder to unduly influence the

outcome of the bidding in his favor;

(xi) failure of the potential joint venture partners to enter into the
joint venture after the bid is declared successful; or

(xii) all other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding,
submitting late Bids or patently insufficient bid, for at least three
(3) times within a year, except for valid reasons.

30
 (b) if the successful Bidder:

(i) fails to sign the contract in accordance with ITB Clause 32; or

(ii) fails to furnish performance security in accordance with ITB Clause 33.

19. Format and Signing of Bids

19.1. Bidders shall submit their bids through their duly authorized representative using
the appropriate forms provided in Section VIII. Bidding Forms on or before the
deadline specified in the ITB Clauses 21 in two (2) separate sealed bid
envelopes, and which shall be submitted simultaneously. The first shall contain
the technical component of the bid, including the eligibility requirements
under ITB Clause 12.1, and the second shall contain the financial component of
the bid. This shall also be observed for each lot in the case of lot procurement.

19.2. Forms as mentioned in ITB Clause 19.1 must be completed without any
alterations to their format, and no substitute form shall be accepted. All blank
spaces shall be filled in with the information requested.

19.3. The Bidder shall prepare and submit an original of the first and second envelopes
as described in ITB Clauses 12 and 13. In addition, the Bidder shall submit
copies of the first and second envelopes. In the event of any discrepancy
between the original and the copies, the original shall prevail.

19.4. Each and every page of the Bid Form, including the Schedule of Prices, under
Section VIII hereof, shall be signed by the duly authorized representative/s of
the Bidder. Failure to do so shall be a ground for the rejection of the bid.

19.5. Any interlineations, erasures, or overwriting shall be valid only if they are signed
or initialed by the duly authorized representative/s of the Bidder.

20. Sealing and Marking of Bids

20.1. Bidders shall enclose their original eligibility and technical documents described
in ITB Clause 12 in one sealed envelope marked “ORIGINAL - TECHNICAL
COMPONENT”, and the original of their financial component in another sealed
envelope marked “ORIGINAL - FINANCIAL COMPONENT”, sealing them all in an
outer envelope marked “ORIGINAL BID”.

20.2. Each copy of the first and second envelopes shall be similarly sealed duly marking
the inner envelopes as “COPY NO. ___ - TECHNICAL COMPONENT”

and “COPY NO. ___ – FINANCIAL COMPONENT” and the outer envelope as
“COPY NO. ___”, respectively. These envelopes containing the original and the
copies shall then be enclosed in one single envelope.

31
 20.3. The original and the number of copies of the Bid as indicated in the BDS shall be
typed or written in ink and shall be signed by the Bidder or its duly authorized
representative/s.

20.4. All envelopes shall:

(a) contain the name of the contract to be bid in capital letters;

(b) bear the name and address of the Bidder in capital letters;

(c) be addressed to the Procuring Entity’s BAC in accordance with ITB

Clause 1.1;

(d) bear the specific identification of this bidding process indicated in the
ITB Clause 1.2; and

(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for the
opening of bids, in accordance with ITB Clause 21.

20.5. Bid envelopes that are not properly sealed and marked, as required in the bidding
documents, shall not be rejected, but the Bidder or its duly authorized
representative shall acknowledge such condition of the bid as submitted. The
BAC or the Procuring Entity shall assume no responsibility for the misplacement
of the contents of the improperly sealed or marked bid, or for its premature
opening.

D. Submission and Opening of Bids

21. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and on or before
the date and time indicated in the BDS.

22. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by
the Procuring Entity, pursuant to ITB Clause 21, shall be declared “Late” and shall not
be accepted by the Procuring Entity. The BAC shall record in the minutes of bid
submission and opening, the Bidder’s name, its representative and the time the late
bid was submitted.

23. Modification and Withdrawal of Bids

23.1. The Bidder may modify its bid after it has been submitted; provided that the
modification is received by the Procuring Entity prior to the deadline prescribed
for submission and receipt of bids. The Bidder shall not be allowed to retrieve
its original bid, but shall be allowed to submit another bid equally sealed and
properly identified in accordance with ITB Clause 20, linked to its original bid

32
 marked as “TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and
stamped “received” by the BAC. Bid modifications received after the applicable
deadline shall not be considered and shall be returned to the Bidder unopened.

23.2 A Bidder may, through a Letter of Withdrawal, withdraw its bid after it has been
submitted, for valid and justifiable reason; provided that the Letter of
Withdrawal is received by the Procuring Entity prior to the deadline prescribed
for submission and receipt of bids. The Letter of Withdrawal must be executed
by the duly authorized representative of the Bidder identified in the Omnibus
Sworn Statement, a copy of which should be attached to the letter.

23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1 shall be
returned unopened to the Bidders. A Bidder, who has acquired the bidding
documents, may also express its intention not to participate in the bidding
through a letter which should reach and be stamped by the BAC before the
deadline for submission and receipt of bids. A Bidder that withdraws its bid
shall not be permitted to submit another bid, directly or indirectly, for the same
contract.

23.4. No bid may be modified after the deadline for submission of bids. No bid may be
withdrawn in the interval between the deadline for submission of bids and the
expiration of the period of bid validity specified by the Bidder on the Financial
Bid Form. Withdrawal of a bid during this interval shall result in the forfeiture
of the Bidder’s bid security, pursuant to ITB Clause 18.5, and the imposition of
administrative, civil and criminal sanctions as prescribed by RA 9184 and its IRR.

24. Opening and Preliminary Examination of Bids

24.1. The BAC shall open the bids in public, immediately after the deadline for the
submission and receipt of bids, as specified in the BDS. In case the Bids cannot
be opened as scheduled due to justifiable reasons, the BAC shall take custody
of the Bids submitted and reschedule the opening of Bids on the next working
day or at the soonest possible time through the issuance of a Notice of
Postponement to be posted in the PhilGEPS website and the website of the
Procuring Entity concerned.

24.2. Unless otherwise specified in the BDS, the BAC shall open the first bid envelopes
and determine each Bidder’s compliance with the documents prescribed in ITB
Clause 12, using a non-discretionary “pass/fail” criterion. If a

Bidder submits the required document, it shall be rated “passed” for that
particular requirement. In this regard, bids that fail to include any requirement
or are incomplete or patently insufficient shall be considered as “failed”.
Otherwise, the BAC shall rate the said first bid envelope as “passed”.

33
24.3. Unless otherwise specified in the BDS, immediately after determining
compliance with the requirements in the first envelope, the BAC shall forthwith
open the second bid envelope of each remaining eligible bidder whose first bid
envelope was rated “passed”. The second envelope of each complying bidder
shall be opened within the same day. In case one or more of the requirements
in the second envelope of a particular bid is missing, incomplete or patently
insufficient, and/or if the submitted total bid price exceeds the ABC unless
otherwise provided in ITB Clause 13.2, the BAC shall rate the bid concerned as
“failed”. Only bids that are determined to contain all the bid requirements for
both components shall be rated “passed” and shall immediately be considered
for evaluation and comparison.

24.4. Letters of Withdrawal shall be read out and recorded during bid opening, and the
envelope containing the corresponding withdrawn bid shall be returned to the
Bidder unopened.

24.5. All members of the BAC who are present during bid opening shall initial every
page of the original copies of all bids received and opened.

24.6. In the case of an eligible foreign bidder as described in ITB Clause 5, the following
Class “A” Documents may be substituted with the appropriate equivalent
documents, if any, issued by the country of the foreign Bidder concerned, which
shall likewise be uploaded and maintained in the PhilGEPS in accordance with
Section 8.5.2 of the IRR:

(a) Registration certificate from the Securities and Exchange Commission

(SEC), Department of Trade and Industry (DTI) for sole proprietorship, or
CDA for cooperatives;

(b) Mayor’s/Business permit issued by the local government where the

principal place of business of the bidder is located; and

(c) Audited Financial Statements showing, among others, the prospective

bidder’s total and current assets and liabilities stamped “received” by the
Bureau of Internal Revenue or its duly accredited and authorized
institutions, for the preceding calendar year which should not be earlier
than two years from the date of bid submission.

24.7. Each partner of a joint venture agreement shall likewise submit the
requirements in ITB Clause 12.1(a)(i). Submission of documents required under
ITB Clauses 12.1(a)(ii) to 12.1(a)(iii) by any of the joint venture partners
constitutes compliance.

24.8. The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid price
(per lot, if applicable, and/or including discount, if any), bid security, findings of
preliminary examination, and whether there is a withdrawal or modification;

34
 and (b) attendance sheet. The BAC members shall sign the abstract of bids as
read.

24.8 The bidders or their duly authorized representatives may attend the opening of
bids. The BAC shall ensure the integrity, security, and confidentiality of all
submitted bids. The Abstract of Bids as read and the minutes of the bid opening
shall be made available to the public upon written request and payment of a
specified fee to recover cost of materials.

24.9 To ensure transparency and accurate representation of the bid submission, the
BAC Secretariat shall notify in writing all bidders whose bids it has received
through its PhilGEPS-registered physical address or official e-mail address. The
notice shall be issued within seven (7) calendar days from the date of the bid
opening.

E. Evaluation and Comparison of Bids

25. Process to be Confidential

25.1. Members of the BAC, including its staff and personnel, as well as its Secretariat
and TWG, are prohibited from making or accepting any kind of communication
with any bidder regarding the evaluation of their bids until the issuance of the
Notice of Award, unless otherwise allowed in the case of ITB Clause 26.

25.2. Any effort by a bidder to influence the Procuring Entity in the Procuring Entity’s
decision in respect of bid evaluation, bid comparison or contract award will
result in the rejection of the Bidder’s bid.

26. Clarification of Bids

To assist in the evaluation, comparison, and post-qualification of the bids, the
Procuring Entity may ask in writing any Bidder for a clarification of its bid. All responses
to requests for clarification shall be in writing. Any clarification submitted by a Bidder
in respect to its bid and that is not in response to a request by the Procuring Entity shall
not be considered.

27. Domestic Preference

27.1. Unless otherwise stated in the BDS, the Procuring Entity will grant a margin of
preference for the purpose of comparison of bids in accordance with the
following:

(a) The preference shall be applied when the lowest Foreign Bid is lower
than the lowest bid offered by a Domestic Bidder.

35
 (b) For evaluation purposes, the lowest Foreign Bid shall be increased by
fifteen percent (15%).

(c) In the event that the lowest bid offered by a Domestic Bidder does not
exceed the lowest Foreign Bid as increased, then the Procuring Entity
shall award the contract to the Domestic Bidder at the amount of the
lowest Foreign Bid.

(d) If the Domestic Bidder refuses to accept the award of contract at the
amount of the Foreign Bid within two (2) calendar days from receipt of
written advice from the BAC, the Procuring Entity shall award to the
bidder offering the Foreign Bid, subject to post-qualification and
submission of all the documentary requirements under these Bidding
Documents.

27.2. A Bidder may be granted preference as a Domestic Bidder subject to the

certification from the DTI that the Bidder is offering unmanufactured articles,
materials or supplies of the growth or production of the Philippines, or
manufactured articles, materials, or supplies manufactured or to be
manufactured in the Philippines substantially from articles, materials, or
supplies of the growth, production, or manufacture, as the case may be, of the
Philippines.

28. Detailed Evaluation and Comparison of Bids

28.1. The Procuring Entity will undertake the detailed evaluation and comparison of
bids which have passed the opening and preliminary examination of bids,
pursuant to ITB Clause 24, in order to determine the Lowest Calculated Bid.

28.2. The Lowest Calculated Bid shall be determined in two steps:

(a) The detailed evaluation of the financial component of the bids, to

establish the correct calculated prices of the bids; and

(b) The ranking of the total bid prices as so calculated from the lowest to
the highest. The bid with the lowest price shall be identified as the
Lowest Calculated Bid.

28.3. The Procuring Entity’s BAC shall immediately conduct a detailed evaluation of all
bids rated “passed,” using non-discretionary pass/fail criteria. The BAC shall
consider the following in the evaluation of bids:

(a) Completeness of the bid. Unless the BDS allows partial bids, bids not
addressing or providing all of the required items in the Schedule of
Requirements including, where applicable, Schedule of Prices, shall be
considered non-responsive and, thus, automatically disqualified. In this

36
 regard, where a required item is provided, but no price is indicated, the
same shall be considered as non-responsive, but specifying a zero (0) or
a dash (-) for the said item would mean that it is being offered for free
to the Procuring Entity, except those required by law or regulations to
be provided for; and

(b) Arithmetical corrections. Consider computational errors and omissions

to enable proper comparison of all eligible bids. It may also consider
bid modifications. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.

28.4. Based on the detailed evaluation of bids, those that comply with the
abovementioned requirements shall be ranked in the ascending order of their
total calculated bid prices, as evaluated and corrected for computational errors,
discounts and other modifications, to identify the Lowest Calculated Bid. Total
calculated bid prices, as evaluated and corrected for computational errors,
discounts and other modifications, which exceed the ABC shall not be
considered, unless otherwise indicated in the BDS.

28.5. The Procuring Entity’s evaluation of bids shall be based on the bid price quoted
in the Bid Form, which includes the Schedule of Prices.

28.6. Bids shall be evaluated on an equal footing to ensure fair competition. For this
purpose, all bidders shall be required to include in their bids the cost of all
taxes, such as, but not limited to, value added tax (VAT), income tax, local taxes,
and other fiscal levies and duties which shall be itemized in the bid form and
reflected in the detailed estimates. Such bids, including said taxes, shall be the
basis for bid evaluation and comparison.

28.7. If so indicated pursuant to ITB Clause 1.2, Bids are being invited for individual
lots or for any combination thereof, provided that all Bids and combinations of
Bids shall be received by the same deadline and opened and evaluated
simultaneously so as to determine the Bid or combination of Bids offering the
lowest calculated cost to the Procuring Entity. Bid prices quoted shall
correspond to all items specified for each lot and to all quantities specified for
each item of a lot. Bid Security as required by ITB Clause 18 shall be submitted
for each contract (lot) separately. The basis for evaluation of lots is specified in
BDS Clause 28.3.

29. Post-Qualification
29.1. The BAC shall determine to its satisfaction whether the Bidder that is evaluated
as having submitted the Lowest Calculated Bid complies with and is responsive
to all the requirements and conditions specified in ITB Clauses 5, 12, and 13.

29.2. Within a non-extendible period of five (5) calendar days from receipt by the
bidder of the notice from the BAC that it submitted the Lowest Calculated Bid,
the Bidder shall submit its latest income and business tax returns filed and paid

37
 through the BIR Electronic Filing and Payment System (eFPS) and other
appropriate licenses and permits required by law and stated in the BDS.

Failure to submit any of the post-qualification requirements on time, or a

finding against the veracity thereof, shall disqualify the bidder for award.
Provided in the event that a finding against the veracity of any of the
documents submitted is made, it shall cause the forfeiture of the bid security
in accordance with Section 69 of the IRR of RA 9184.

29.3. The determination shall be based upon an examination of the documentary

evidence of the Bidder’s qualifications submitted pursuant to ITB Clauses 12
and 13, as well as other information as the Procuring Entity deems necessary
and appropriate, using a non-discretionary “pass/fail” criterion, which shall be
completed within a period of twelve (12) calendar days.

29.4. If the BAC determines that the Bidder with the Lowest Calculated Bid passes all
the criteria for post-qualification, it shall declare the said bid as the LCRB, and
recommend to the HoPE the award of contract to the said Bidder at its
submitted price or its calculated bid price, whichever is lower.

29.5. A negative determination shall result in rejection of the Bidder’s Bid, in which
event the Procuring Entity shall proceed to the next Lowest Calculated Bid with
a fresh period to make a similar determination of that Bidder’s capabilities to
perform satisfactorily. If the second Bidder, however, fails the post qualification,
the procedure for post qualification shall be repeated for the Bidder with the
next Lowest Calculated Bid, and so on until the LCRB is determined for
recommendation for contract award.

29.6. Within a period not exceeding fifteen (15) calendar days from the determination
by the BAC of the LCRB and the recommendation to award the contract, the
HoPE or his duly authorized representative shall approve or disapprove the said
recommendation.

29.7. In the event of disapproval, which shall be based on valid, reasonable, and
justifiable grounds as provided for under Section 41 of the IRR of RA 9184, the
HoPE shall notify the BAC and the Bidder in writing of such decision and the
grounds for it. When applicable, the BAC shall conduct a post-qualification of
the Bidder with the next Lowest Calculated Bid. A request for reconsideration
may be filed by the bidder with the HoPE in accordance with Section 37.1.3 of
the IRR of RA 9184.

30. Reservation Clause

30.1. Notwithstanding the eligibility or post-qualification of a Bidder, the Procuring
Entity concerned reserves the right to review its qualifications at any stage of
the procurement process if it has reasonable grounds to believe that a
misrepresentation has been made by the said Bidder, or that there has been a
change in the Bidder’s capability to undertake the project from the time it

38
 submitted its eligibility requirements. Should such review uncover any
misrepresentation made in the eligibility and bidding requirements, statements
or documents, or any changes in the situation of the Bidder which will affect its
capability to undertake the project so that it fails the preset eligibility or bid
evaluation criteria, the Procuring Entity shall consider the said Bidder as
ineligible and shall disqualify it from submitting a bid or from obtaining an
award or contract.

30.2. Based on the following grounds, the Procuring Entity reserves the right to reject
any and all bids, declare a Failure of Bidding at any time prior to the contract
award, or not to award the contract, without thereby incurring any liability, and
make no assurance that a contract shall be entered into as a result of the
bidding:

(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 Procuring Entity’s 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 GOP as follows:

(i) If the physical and economic conditions have significantly

changed so as to render the project no longer economically,
financially or technically feasible as determined by the HoPE;

(ii) If the project is no longer necessary as determined by the HoPE;

and

(iii) If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.

30.3. In addition, the Procuring Entity may likewise declare a failure of bidding when:

(a) No bids are received;

(b) All prospective Bidders are declared ineligible;

(c) All bids fail to comply with all the bid requirements or fail post-
qualification; or

(d) The bidder with the LCRB refuses, without justifiable cause to accept
the award of contract, and no award is made in accordance with Section
40 of the IRR of RA 9184.

39
 F. Award of Contract

31. Contract Award

31.1. Subject to ITB Clause 29, the HoPE or its duly authorized representative shall
award the contract to the Bidder whose bid has been determined to be the
LCRB.

31.2. Prior to the expiration of the period of bid validity, the Procuring Entity shall
notify the successful Bidder in writing that its bid has been accepted, through
a Notice of Award duly received by the Bidder or its representative personally
or sent by registered mail or electronically, receipt of which must be confirmed
in writing within two (2) days by the Bidder with the LCRB and submitted
personally or sent by registered mail or electronically to the Procuring Entity.

31.3. Notwithstanding the issuance of the Notice of Award, award of contract shall be
subject to the following conditions:

(a) Submission of the following documents within ten (10) calendar days from
receipt of the Notice of Award:

(i) Valid JVA, if applicable; or

(ii) In the case of procurement by a Philippine Foreign Service Office

or Post, the PhilGEPS Registration Number of the winning
foreign Bidder;

(b) Posting of the performance security in accordance with ITB Clause 33;

(c) Signing of the contract as provided in ITB Clause 32; and

(d) Approval by higher authority, if required, as provided in Section 37.3 of the

IRR of RA 9184.

31.4. At the time of contract award, the Procuring Entity shall not increase or decrease
the quantity of goods originally specified in Section VI. Schedule of
Requirements.

32. Signing of the Contract

32.1. At the same time as the Procuring Entity notifies the successful Bidder that its
bid has been accepted, the Procuring Entity shall send the Contract Form to the
Bidder, which contract has been provided in the Bidding Documents,
incorporating therein all agreements between the parties.

32.2. Within ten (10) calendar days from receipt of the Notice of Award, the successful
Bidder shall post the required performance security, sign and date the contract
and return it to the Procuring Entity.

40
 32.3. The Procuring Entity shall enter into contract with the successful Bidder within
the same ten (10) calendar day period provided that all the documentary
requirements are complied with.

32.4. The following documents shall form part of the contract:

(a) Contract Agreement;

(b) Bidding Documents;

(c) Winning bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted (e.g., bidder’s response
to request for clarifications on the bid), including corrections to the bid,
if any, resulting from the Procuring Entity’s bid evaluation;

(d) Performance Security;

(e) Notice of Award of Contract; and

(f) Other contract documents that may be required by existing laws and/or
specified in the BDS.

33. Performance Security

33.1. To guarantee the faithful performance by the winning Bidder of its obligations
under the contract, it shall post a performance security within a maximum
period of ten (10) calendar days from the receipt of the Notice of Award from
the Procuring Entity and in no case later than the signing of the contract.

33.2. The Performance Security shall be denominated in Philippine Pesos and posted
in favor of the Procuring Entity in an amount not less than the percentage of
the total contract price in accordance with the following schedule:
Amount of Performance Security
Form of Performance Security (Not less than the Percentage of the
Total Contract Price)
(a) Cash or cashier’s/manager’s check
issued by a Universal or
Commercial Bank.

For biddings conducted by the

LGUs, the Cashier’s/Manager’s Five percent (5%)
Check may be issued by other
banks certified by the BSP as
authorized to issue such financial
instrument.

41
 (b) Bank draft/guarantee or
irrevocable letter of credit issued
by a Universal or Commercial
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

For biddings conducted by the

LGUs, the Bank Draft/ Guarantee
or Irrevocable Letter of Credit may
be issued by other banks certified
by the BSP as authorized to issue
such financial instrument.

(c) Surety bond callable upon demand

issued by a surety or insurance
company duly certified by the Thirty percent (30%)
Insurance Commission as
authorized to issue such security.

33.3. Failure of the successful Bidder to comply with the above-mentioned

requirement shall constitute sufficient ground for the annulment of the award
and forfeiture of the bid security, in which event the Procuring Entity shall have
a fresh period to initiate and complete the post qualification of the second
Lowest Calculated Bid. The procedure shall be repeated until the LCRB is
identified and selected for recommendation of contract award. However, if no
Bidder passed post-qualification, the BAC shall declare the bidding a failure and
conduct a re-bidding with re-advertisement, if necessary.

34. Notice to Proceed

Within seven (7) calendar days from the date of approval of the contract by the
appropriate government approving authority, the Procuring Entity shall issue the
Notice to Proceed (NTP) together with a copy or copies of the approved contract to the
successful Bidder. All notices called for by the terms of the contract shall be effective
only at the time of receipt thereof by the successful Bidder.

35. Protest Mechanism

Decisions of the procuring entity at any stage of the procurement process may be
questioned in accordance with Section 55 of the IRR of RA 9184.

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 Section III. Bid Data Sheet

Notes on the Bid Data Sheet

Section III is intended to assist the Procuring Entity in providing the specific information in
relation to corresponding clauses in the ITB included in Section II, and has to be prepared for
each specific procurement.

The Procuring Entity should specify in the BDS information and requirements specific to the
circumstances of the Procuring Entity, the processing of the procurement, the applicable rules
regarding bid price and currency, and the bid evaluation criteria that will apply to the bids. In
preparing Section III, the following aspects should be checked:

(a) Information that specifies and complements provisions of Section II must be

incorporated.

(b) Amendments and/or supplements, if any, to provisions of Section II as necessitated by

the circumstances of the specific procurement, must also be incorporated.

For foreign-assisted projects, the Bid Data Sheet to be used is provided in Section IXForeign-
Assisted Projects.

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 Bid Data Sheet
ITB Clause

1.1 The Procuring Entity is Department of Agrarian Reform, Aurora Provincial

Office

The name of the Procurement of Farm Machineries and Equipment under

Major Crop-Based Productivity Enhancement Project in the Province of Aurora

1.2 The lot(s) and reference is/are: “Not applicable”

2 The Funding Source is:

The Government of the Philippines (GOP) through Fund 101 in the amount of
Two Million Seven Hundred Twenty Thousand Pesos Only (P2,720,000.00).

The name of the Project is: the Procurement of Farm Machineries and
Equipment underMajor Crop-Based Productivity Enhancement Project
in the Province of Aurora

3.1 No further instructions.

5.1 No further instructions.

5.2 Foreign bidders, except those falling under ITB Clause 5.2(b), may not
participate in this Project.

5.4 For the procurement of Non-expendable Supplies and Services: The Bidder
must have completed, within the period specified in the Invitation to Bid and
ITB Clause 12.1(a)(ii), a single contract that is similar to this Project, equivalent
to at least fifty percent (50%) of the ABC.

7 No further instructions.

8.1 “Subcontracting is not allowed.”

8.2 “Not applicable”.

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9.1 “ Not Applicable”

10.1 The Procuring Entity’s address is:

GARLAND LEILA A. CUARTEROS

Head of Procuring Entity
Department of Agrarian Reform
Aurora Provincial Office, Baler, Aurora 3200
SMART Contact No. 09190849332 [email protected]

12.1(a) No further instructions.

12.1(a)(ii) The bidder’s Statement of Single Largest Completed Contract (SLCC) similar
to the contract to be bid should have been completed within ten (10)
calendar days prior to the deadline for the submission and receipt of bids.

13.1 “No additional requirements.”

13.1(b) No further instructions.

13.1(c) “No additional requirements.”

13.2 The ABC is Two Million Seven Hundred Twenty Thousand Pesos Only
(P2,720,000.00). Any bid with a financial component exceeding this amount
shall not be accepted.

15.4(a)(iv) “No incidental services are required.”

15.4(b) List here the incidental services that are required as part of the Bidder’s bid
cross referencing to the technical specifications and SCC as appropriate.

“No incidental services are required.”

16.1(b) ‘Not applicable”

16.3 “Not applicable”

17.1 Bids will be valid until August 28, 2024.

45
18.1 The bid security shall be in the form of a Bid Securing Declaration, or any of
the following forms and amounts:

1. The amount of not less than P 54,400 (2% of ABC), if bid security is in
cash, cashier’s/manager’s check, bank draft/guarantee or irrevocable
letter of credit; or

2. The amount of not less than P 136,000 (5% of ABC) if bid security is in
Surety Bond.

18.2 The bid security shall be valid until August 28, 2024.

20.3 Each Bidder shall submit one (1) original and two (2) copies of the first and
second components of its bid.

21 The address for submission of bids is Department of Agrarian Reform,

Aurora Provincial Agrarian Reform Office, Baler, Aurora 3200.

The deadline for submission of bids is August 28 2024, 12:00 NN.

24.1 The place of bid opening is Department of Agrarian Reform, Aurora

Provincial Office, Baler, Aurora 3200.

The date and time of bid opening is September 2, 2024, 2:00 PM

24.2 No further instructions.

24.3 No further instructions.

27.1 No further instructions.

28.3 (a) “Not Applicable”

28.4 No further instructions.

29.2 “No additional requirement.”

32.4(f) “No additional requirement.”

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 Section IV. General Conditions of Contract

Notes on the General Conditions of Contract

The GCC in Section IV, read in conjunction with the SCC in Section V and other documents
listed therein, should be a complete document expressing all the rights and obligations of the
parties.

The GCC herein shall not be altered. Any changes and complementary information, which
may be needed, shall be introduced only through the SCC in Section V.

47
 TABLE OF CONTENTS

1. SCOPE OF BID ..................................................................................... 13

2. SOURCE OF FUNDS ............................................................................... 13
3. CORRUPT, FRAUDULENT, COLLUSIVE, AND COERCIVE PRACTICES ......................... 13
4. CONFLICT OF INTEREST.............................................................................. 15
5. ELIGIBLE BIDDERS ................................................................................... 16
6. BIDDER’S RESPONSIBILITIES ....................................................................... 17
7. ORIGIN OF GOODS ……............................................................................ 20
8. SUBCONTRACTS ..................................................................................... 20
9. PRE-BID CONFERENCE ............................................................................. 20
10. CLARIFICATION AND AMENDMENT OF BIDDING DOCUMENTS ............................... 21
11. LANGUAGE OF BIDS ................................................................................... 22
12. DOCUMENTS COMPRISING THE BID: ELIGIBILITY AND TECHNICAL
COMPONENTS .......................................................................................... 22
13. DOCUMENTS COMPRISING THE BID: FINANCIAL COMPONENT ............................... 24
14. ALTERNATIVE BIDS .................................................................................... 25
15. BID PRICES .......................................................................................... 25
16. BID CURRENCIES ....................................................................................... 26
17. BID VALIDITY ........................................................................................... 27
18. BID SECURITY ........................................................................................... 27
19. FORMAT AND SIGNING OF BIDS .................................................................... 30
20. SEALING AND MARKING OF BIDS ................................................................... 30
21. DEADLINE FOR SUBMISSION OF BIDS .............................................................. 31
22. LATE BIDS ............................................................................................... 31
23. MODIFICATION AND WITHDRAWAL OF BIDS .................................................... 31
24. OPENING AND PRELIMINARY EXAMINATION OF BIDS .......................................... 32
25. PROCESS TO BE CONFIDENTIAL ...................................................................... 34
26. CLARIFICATION OF BIDS .............................................................................. 34
27. DOMESTIC PREFERENCE .............................................................................. 34
28. DETAILED EVALUATION AND COMPARISON OF BIDS ........................................... 35
29. POST-QUALIFICATION ................................................................................ 36
30. RESERVATION CLAUSE ................................................................................ 37
31. CONTRACT AWARD .................................................................................... 39
32. SIGNING OF THE CONTRACT ......................................................................... 39

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33. PERFORMANCE SECURITY ............................................................................ 40
34. NOTICE TO PROCEED .................................................................................. 41
35. PROTEST MECHANISM ................................................................................ 41
DEFINITIONS ............................................................................................ 50
1. CORRUPT, FRAUDULENT, COLLUSIVE, AND COERCIVE PRACTICES ............... 51
2. INSPECTION AND AUDIT BY THE FUNDING SOURCE ................................. 52
4. GOVERNING LAW AND LANGUAGE .................................................... 52
5. NOTICES ................................................................................... 52
6. SCOPE OF CONTRACT ................................................................... 53
7. SUBCONTRACTING ........................................................................ 53
8. PROCURING ENTITY’S RESPONSIBILITIES ............................................ 53
9. PRICES ................................................................................... 54
10. PAYMENT ......................................................................................... 54
11. ADVANCE PAYMENT AND TERMS OF PAYMENT ............................................ 55
12. TAXES AND DUTIES ............................................................................ 55
13. PERFORMANCE SECURITY ..................................................................... 55
14. USE OF CONTRACT DOCUMENTS AND INFORMATION .................................... 56
15. STANDARDS ................................................................................... 56
16. INSPECTION AND TESTS ..................................................................... 57
17. WARRANTY ................................................................................... 57
18. DELAYS IN THE SUPPLIER’S PERFORMANCE ................................................. 58
19. LIQUIDATED DAMAGES ........................................................................ 58
20. SETTLEMENT OF DISPUTES ................................................................... 59
21. LIABILITY OF THE SUPPLIER ................................................................... 59
22. FORCE MAJEURE ............................................................................... 60
23. TERMINATION FOR DEFAULT ................................................................. 60
24. TERMINATION FOR INSOLVENCY .......................................................... 61
25. TERMINATION FOR CONVENIENCE......................................................... 61
26. TERMINATION FOR UNLAWFUL ACTS ..................................................... 62
27. PROCEDURES FOR TERMINATION OF CONTRACTS ....................................... 62
28. ASSIGNMENT OF RIGHTS ...................................................................... 63
29. CONTRACT AMENDMENT ..................................................................... 63
30. APPLICATION .................................................................................... 63

49
1. Definitions
1.1. In this Contract, the following terms shall be interpreted as indicated:

(a) “The Contract” means the agreement entered into between the
Procuring Entity and the Supplier, as recorded in the Contract Form
signed by the parties, including all attachments and appendices thereto
and all documents incorporated by reference therein.

(b) “The Contract Price” means the price payable to the Supplier under the
Contract for the full and proper performance of its contractual
obligations.

(c) “The Goods” means all of the supplies, equipment, machinery, spare
parts, other materials and/or general support services which the
Supplier is required to provide to the Procuring Entity under the
Contract.

(d) “The Services” means those services ancillary to the supply of the
Goods, such as transportation and insurance, and any other incidental
services, such as installation, commissioning, provision of technical
assistance, training, and other such obligations of the Supplier covered
under the Contract.

(e) “GCC” means the General Conditions of Contract contained in this

Section.

(f) “SCC” means the Special Conditions of Contract.

(g) “The Procuring Entity” means the organization purchasing the Goods,
as named in the SCC.

(h) “The Procuring Entity’s country” is the Philippines.

(i) “The Supplier” means the individual contractor, manufacturer

distributor, or firm supplying/manufacturing the Goods and Services
under this Contract and named in the SCC.

(j) The “Funding Source” means the organization named in the SCC.

(k) “The Project Site,” where applicable, means the place or places named
in the SCC.

(l) “Day” means calendar day.

(m) The “Effective Date” of the contract will be the date of signing the
contract, however the Supplier shall commence performance of its

50
 obligations only upon receipt of the Notice to Proceed and copy of the
approved contract.

(n) “Verified Report” refers to the report submitted by the Implementing

Unit to the HoPE setting forth its findings as to the existence of grounds
or causes for termination and explicitly stating its recommendation for
the issuance of a Notice to Terminate.

2. Corrupt, Fraudulent, Collusive, and Coercive Practices

2.1. Unless otherwise provided in the SCC, the Procuring Entity as well as the bidders,
contractors, or suppliers shall observe the highest standard of ethics during the
procurement and execution of this Contract. In pursuance of this policy, the
Procuring Entity:

(a) defines, for the purposes of this provision, the terms set forth below as
follows:

(i) "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 it
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.

(ii) "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,
noncompetitive levels and to deprive the Procuring Entity of the
benefits of free and open competition.

(iii) “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.

(iv) “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;

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 (v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or concealing

of 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

(bb) 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.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.

2.2. Further the Funding Source, Borrower or Procuring Entity, as appropriate, will seek
to impose the maximum civil, administrative and/or criminal penalties
available under the applicable law on individuals and organizations deemed to
be involved with any of the practices mentioned in GCC Clause 2.1(a).

3. Inspection and Audit by the Funding Source

The Supplier shall permit the Funding Source to inspect the Supplier’s accounts and
records relating to the performance of the Supplier and to have them audited by
auditors appointed by the Funding Source, if so required by the Funding Source.

4. Governing Law and Language

4.1. This Contract shall be interpreted in accordance with the laws of the Republic of
the Philippines.

4.2. This Contract has been executed in the English language, which shall be the
binding and controlling language for all matters relating to the meaning or
interpretation of this Contract. All correspondence and other documents
pertaining to this Contract exchanged by the parties shall be written in English.

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5. Notices
5.1. Any notice, request, or consent required or permitted to be given or made
pursuant to this Contract shall be in writing. Any such notice, request, or
consent shall be deemed to have been given or made when received by the
concerned party, either in person or through an authorized representative of
the Party to whom the communication is addressed, or when sent by registered
mail, telex, telegram, or facsimile to such Party at the address specified in the
SCC, which shall be effective when delivered and duly received or on the
notice’s effective date, whichever is later.

5.2. A Party may change its address for notice hereunder by giving the other Party
notice of such change pursuant to the provisions listed in the SCC for GCC
Clause 5.1.

6. Scope of Contract
6.1. The Goods and Related Services to be provided shall be as specified in Section
VI. Schedule of Requirements.

6.2. This Contract shall include all such items, although not specifically mentioned,
that can be reasonably inferred as being required for its completion as if such
items were expressly mentioned herein. Any additional requirements for the
completion of this Contract shall be provided in the SCC.

7. Subcontracting
7.1. Subcontracting of any portion of the Goods, if allowed in the BDS, does not relieve
the Supplier of any liability or obligation under this Contract. The Supplier will
be responsible for the acts, defaults, and negligence of any subcontractor, its
agents, servants or workmen as fully as if these were the Supplier’s own acts,
defaults, or negligence, or those of its agents, servants or workmen.

7.2. If subcontracting is allowed, the Supplier may identify its subcontractor during
contract implementation. Subcontractors disclosed and identified during the
bidding may be changed during the implementation of this Contract. In either
case, subcontractors must submit the documentary requirements under ITB
Clause 12 and comply with the eligibility criteria 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. Procuring Entity’s Responsibilities

8.1. Whenever the performance of the obligations in this Contract requires that the
Supplier obtain permits, approvals, import, and other licenses from local public
authorities, the Procuring Entity shall, if so needed by the Supplier, make its
best effort to assist the Supplier in complying with such requirements in a
timely and expeditious manner.

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 8.2. The Procuring Entity shall pay all costs involved in the performance of its
responsibilities in accordance with GCC Clause 6.

9. Prices
9.1. For the given scope of work in this Contract as awarded, all bid prices are
considered fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances and upon
prior approval of the GPPB in accordance with Section 61 of R.A. 9184 and its
IRR or except as provided in this Clause.

9.2. Prices charged by the Supplier for Goods delivered and/or services performed
under this Contract shall not vary from the prices quoted by the Supplier in its
bid, with the exception of any change in price resulting from a Change Order
issued in accordance with GCC Clause 29.

10. Payment
10.1. Payments shall be made only upon a certification by the HoPE to the effect that
the Goods have been rendered or delivered in accordance with the terms of
this Contract and have been duly inspected and accepted. Except with the prior
approval of the President no payment shall be made for services not yet
rendered or for supplies and materials not yet delivered under this Contract.
Ten percent (10%) of the amount of each payment shall be retained by the
Procuring Entity to cover the Supplier’s warranty obligations under this
Contract as described in GCC Clause 17.

10.2. The Supplier’s request(s) for payment shall be made to the Procuring Entity in
writing, accompanied by an invoice describing, as appropriate, the Goods
delivered and/or Services performed, and by documents submitted pursuant
to the SCC provision for GCC Clause 6.2, and upon fulfillment of other
obligations stipulated in this Contract.

10.3. Pursuant to GCC Clause 10.2, payments shall be made promptly by the Procuring
Entity, but in no case later than sixty (60) days after submission of an invoice or
claim by the Supplier. Payments shall be in accordance with the schedule stated
in the SCC.

10.4. Unless otherwise provided in the SCC, the currency in which payment is made to
the Supplier under this Contract shall be in Philippine Pesos.

10.5. Unless otherwise provided in the SCC, payments using Letter of Credit (LC), in
accordance with the Guidelines issued by the GPPB, is allowed. For this
purpose, the amount of provisional sum is indicated in the SCC. All charges for
the opening of the LC and/or incidental expenses thereto shall be for the
account of the Supplier.

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11. Advance Payment and Terms of Payment
11.1. Advance payment shall be made only after prior approval of the President, and
shall not exceed fifteen percent (15%) of the Contract amount, unless
otherwise directed by the President or in cases allowed under Annex “D” of RA
9184.

11.2. All progress payments shall first be charged against the advance payment until
the latter has been fully exhausted.

11.3. For Goods supplied from abroad, unless otherwise indicated in the SCC, the terms
of payment shall be as follows:
(a) On Contract Signature: Fifteen Percent (15%) of the Contract Price shall
be paid within sixty (60) days from signing of the Contract and upon
submission of a claim and a bank guarantee for the equivalent amount
valid until the Goods are delivered and in the form provided in Section
VIII. Bidding Forms.

(b) On Delivery: Sixty-five percent (65%) of the Contract Price shall be paid
to the Supplier within sixty (60) days after the date of receipt of the
Goods and upon submission of the documents (i) through (vi) specified
in the SCC provision on Delivery and Documents.

(c) On Acceptance: The remaining twenty percent (20%) of the Contract

Price shall be paid to the Supplier within sixty (60) days after the date
of submission of the acceptance and inspection certificate for the
respective delivery issued by the Procuring Entity’s authorized
representative. In the event that no inspection or acceptance certificate
is issued by the Procuring Entity’s authorized representative within forty
five (45) days of the date shown on the delivery receipt, the Supplier
shall have the right to claim payment of the remaining twenty percent
(20%) subject to the Procuring Entity’s own verification of the reason(s)
for the failure to issue documents (vii) and (viii) as described in the SCC
provision on Delivery and Documents.

12. Taxes and Duties

The Supplier, whether local or foreign, shall be entirely responsible for all the necessary
taxes, stamp duties, license fees, and other such levies imposed for the completion of
this Contract.

13. Performance Security

13.1. Within ten (10) calendar days from receipt of the Notice of Award from the
Procuring Entity but in no case later than the signing of the contract by both

55
 parties, the successful Bidder shall furnish the performance security in any the
forms prescribed in the ITB Clause 33.2.

13.2. The performance security posted in favor of the Procuring Entity shall be forfeited
in the event it is established that the winning bidder is in default in any of its
obligations under the contract.

13.3. The performance security shall remain valid until issuance by the Procuring Entity
of the Certificate of Final Acceptance.

13.4. The performance security may be released by the Procuring Entity and returned
to the Supplier after the issuance of the Certificate of Final Acceptance subject
to the following conditions:

(a) There are no pending claims against the Supplier or the surety company
filed by the Procuring Entity;

(b) The Supplier has no pending claims for labor and materials filed against
it; and

(c) Other terms specified in the SCC.

13.5. In case of a reduction of the contract value, the Procuring Entity shall allow a
proportional reduction in the original performance security, provided that any
such reduction is more than ten percent (10%) and that the aggregate of such
reductions is not more than fifty percent (50%) of the original performance
security.

14. Use of Contract Documents and Information

14.1. The Supplier shall not, except for purposes of performing the obligations in this
Contract, without the Procuring Entity’s prior written consent, disclose this
Contract, or any provision thereof, or any specification, plan, drawing, pattern,
sample, or information furnished by or on behalf of the Procuring Entity. Any
such disclosure shall be made in confidence and shall extend only as far as may
be necessary for purposes of such performance.

14.2. Any document, other than this Contract itself, enumerated in GCC Clause 14.1
shall remain the property of the Procuring Entity and shall be returned (all
copies) to the Procuring Entity on completion of the Supplier’s performance
under this Contract if so required by the Procuring Entity.

15. Standards
The Goods provided under this Contract shall conform to the standards mentioned in
the Section VII. Technical Specifications; and, when no applicable standard is
mentioned, to the authoritative standards appropriate to the Goods’ country of origin.
Such standards shall be the latest issued by the institution concerned.

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16. Inspection and Tests
16.1. The Procuring Entity or its representative shall have the right to inspect and/or
to test the Goods to confirm their conformity to the Contract specifications at
no extra cost to the Procuring Entity. The SCC and Section VII. Technical
Specifications shall specify what inspections and/or tests the Procuring Entity
requires and where they are to be conducted. The Procuring Entity shall notify
the Supplier in writing, in a timely manner, of the identity of any
representatives retained for these purposes.

16.2. If applicable, the inspections and tests may be conducted on the premises of the
Supplier or its subcontractor(s), at point of delivery, and/or at the goods’ final
destination. If conducted on the premises of the Supplier or its
subcontractor(s), all reasonable facilities and assistance, including access to
drawings and production data, shall be furnished to the inspectors at no charge
to the Procuring Entity. The Supplier shall provide the Procuring Entity with
results of such inspections and tests.

16.3. The Procuring Entity or its designated representative shall be entitled to attend
the tests and/or inspections referred to in this Clause provided that the
Procuring Entity shall bear all of its own costs and expenses incurred in
connection with such attendance including, but not limited to, all traveling and
board and lodging expenses.

16.4. The Procuring Entity may reject any Goods or any part thereof that fail to pass
any test and/or inspection or do not conform to the specifications. The Supplier
shall either rectify or replace such rejected Goods or parts thereof or make
alterations necessary to meet the specifications at no cost to the Procuring
Entity, and shall repeat the test and/or inspection, at no cost to the Procuring
Entity, upon giving a notice pursuant to GCC Clause 5.

16.5. The Supplier agrees that neither the execution of a test and/or inspection of the
Goods or any part thereof, nor the attendance by the Procuring Entity or its
representative, shall release the Supplier from any warranties or other
obligations under this Contract.

17. Warranty
17.1. The Supplier warrants that the Goods supplied under the Contract are new,
unused, of the most recent or current models, and that they incorporate all
recent improvements in design and materials, except when the technical
specifications required by the Procuring Entity provides otherwise.

17.2. The Supplier further warrants that all Goods supplied under this Contract shall
have no defect, arising from design, materials, or workmanship or from any act
or omission of the Supplier that may develop under normal use of the
supplied Goods in the conditions prevailing in the country of final destination.

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 17.3. In order to assure that manufacturing defects shall be corrected by the Supplier,
a warranty shall be required from the Supplier for a minimum period specified
in the SCC. The obligation for the warranty shall be covered by, at the Supplier’s
option, either retention money in an amount equivalent to at least one percent
(1%) of every progress payment, or a special bank guarantee equivalent to at
least one percent (1%) of the total Contract Price or other such amount if so
specified in the SCC. The said amounts shall only be released after the lapse of
the warranty period specified in the SCC; provided, however, that the Supplies
delivered are free from patent and latent defects and all the conditions
imposed under this Contract have been fully met.

17.4. The Procuring Entity shall promptly notify the Supplier in writing of any claims
arising under this warranty. Upon receipt of such notice, the Supplier shall,
within the period specified in the SCC and with all reasonable speed, repair or
replace the defective Goods or parts thereof, without cost to the Procuring
Entity.

17.5. If the Supplier, having been notified, fails to remedy the defect(s) within the
period specified in GCC Clause 17.4, the Procuring Entity may proceed to take
such remedial action as may be necessary, at the Supplier’s risk and expense
and without prejudice to any other rights which the Procuring Entity may have
against the Supplier under the Contract and under the applicable law.

18. Delays in the Supplier’s Performance

18.1. Delivery of the Goods and/or performance of Services shall be made by the
Supplier in accordance with the time schedule prescribed by the Procuring
Entity in Section VI. Schedule of Requirements.

18.2. If at any time during the performance of this Contract, the Supplier or its
Subcontractor(s) should encounter conditions impeding timely delivery of the
Goods and/or performance of Services, the Supplier shall promptly notify the
Procuring Entity in writing of the fact of the delay, its likely duration and its
cause(s). As soon as practicable after receipt of the Supplier’s notice, and upon
causes provided for under GCC Clause 22, the Procuring Entity shall evaluate
the situation and may extend the Supplier’s time for performance, in which
case the extension shall be ratified by the parties by amendment of Contract.

18.3. Except as provided under GCC Clause 22, a delay by the Supplier in the
performance of its obligations shall render the Supplier liable to the imposition
of liquidated damages pursuant to GCC Clause 19, unless an extension of time
is agreed upon pursuant to GCC Clause 29 without the application of liquidated
damages.

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19. Liquidated Damages
Subject to GCC Clauses 18 and 22, if the Supplier fails to satisfactorily deliver any or all
of the Goods and/or to perform the Services within the period(s) specified in this
Contract inclusive of duly granted time extensions if any, the Procuring Entity shall,
without prejudice to its other remedies under this Contract and under the applicable
law, deduct from the Contract Price, as liquidated damages, the applicable rate of one
tenth (1/10) of one (1) percent of the cost of the unperformed portion for every day of
delay until actual delivery or performance. The maximum deduction shall be ten
percent (10%) of the amount of contract. Once the maximum is reached, the Procuring
Entity may rescind or terminate the Contract pursuant to GCC Clause 23, without
prejudice to other courses of action and remedies open to it.

20. Settlement of Disputes

20.1. If any dispute or difference of any kind whatsoever shall arise between the
Procuring Entity and the Supplier in connection with or arising out of this
Contract, the parties shall make every effort to resolve amicably such dispute
or difference by mutual consultation.

20.2. If after thirty (30) days, the parties have failed to resolve their dispute or
difference by such mutual consultation, then either the Procuring Entity or the
Supplier may give notice to the other party of its intention to commence
arbitration, as hereinafter provided, as to the matter in dispute, and no
arbitration in respect of this matter may be commenced unless such notice is
given.

20.3. Any dispute or difference in respect of which a notice of intention to commence

arbitration has been given in accordance with this Clause shall be settled by
arbitration. Arbitration may be commenced prior to or after delivery of the
Goods under this Contract.

20.4. In the case of a dispute between the Procuring Entity and the Supplier, the
dispute shall be resolved in accordance with Republic Act 9285 (“R.A. 9285”),
otherwise known as the “Alternative Dispute Resolution Act of 2004.”

20.5. Notwithstanding any reference to arbitration herein, the parties shall continue
to perform their respective obligations under the Contract unless they
otherwise agree; and the Procuring Entity shall pay the Supplier any monies
due the Supplier.

21. Liability of the Supplier

21.1. The Supplier’s liability under this Contract shall be as provided by the laws of the
Republic of the Philippines, subject to additional provisions, if any, set forth in
the SCC.

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 21.2. Except in cases of criminal negligence or willful misconduct, and in the case of
infringement of patent rights, if applicable, the aggregate liability of the
Supplier to the Procuring Entity shall not exceed the total Contract Price,
provided that this limitation shall not apply to the cost of repairing or replacing
defective equipment.

22. Force Majeure

22.1. The Supplier shall not be liable for forfeiture of its performance security,
liquidated damages, or termination for default if and to the extent that the
Supplier’s delay in performance or other failure to perform its obligations
under the Contract is the result of a force majeure.

22.2. For purposes of this Contract the terms “force majeure” and “fortuitous event”
may be used interchangeably. In this regard, a fortuitous event or force
majeure shall be interpreted to mean an event which the Supplier could not
have foreseen, or which though foreseen, was inevitable. It shall not include
ordinary unfavorable weather conditions; and any other cause the effects of
which could have been avoided with the exercise of reasonable diligence by the
Supplier. Such events may include, but not limited to, acts of the Procuring
Entity in its sovereign capacity, wars or revolutions, fires, floods, epidemics,
quarantine restrictions, and freight embargoes.

22.3. If a force majeure situation arises, the Supplier shall promptly notify the
Procuring Entity in writing of such condition and the cause thereof. Unless
otherwise directed by the Procuring Entity in writing, the Supplier shall
continue to perform its obligations under the Contract as far as is reasonably
practical, and shall seek all reasonable alternative means for performance not
prevented by the force majeure.

23. Termination for Default

23.1. The Procuring Entity shall terminate this Contract for default when any of the
following conditions attends its implementation:

(a) Outside of force majeure, the Supplier fails to deliver or perform any or
all of the Goods within the period(s) specified in the contract, or within
any extension thereof granted by the Procuring Entity pursuant to a
request made by the Supplier prior to the delay, and such failure
amounts to at least ten percent (10%) of the contact price;

(b) As a result of force majeure, the Supplier is unable to deliver or perform

any or all of the Goods, amounting to at least ten percent (10%) of the
contract price, for a period of not less than sixty (60) calendar days after
receipt of the notice from the Procuring Entity stating that the
circumstance of force majeure is deemed to have ceased; or

(c) The Supplier fails to perform any other obligation under the Contract.

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 23.2. In the event the Procuring Entity terminates this Contract in whole or in part,
for any of the reasons provided under GCC Clauses 23 to 26, the Procuring
Entity may procure, upon such terms and in such manner as it deems
appropriate, Goods or Services similar to those undelivered, and the Supplier
shall be liable to the Procuring Entity for any excess costs for such similar Goods
or Services. However, the Supplier shall continue performance of this Contract
to the extent not terminated.

23.3. In case the delay in the delivery of the Goods and/or performance of the
Services exceeds a time duration equivalent to ten percent (10%) of the
specified contract time plus any time extension duly granted to the Supplier,
the Procuring Entity may terminate this Contract, forfeit the Supplier's
performance security and award the same to a qualified Supplier.

24. Termination for Insolvency

The Procuring Entity shall terminate this Contract if the Supplier is declared bankrupt
or insolvent as determined with finality by a court of competent jurisdiction. In this
event, termination will be without compensation to the Supplier, provided that such
termination will not prejudice or affect any right of action or remedy which has accrued
or will accrue thereafter to the Procuring Entity and/or the Supplier.

25. Termination for Convenience

25.1. The Procuring Entity may terminate this Contract, in whole or in part, at any time
for its convenience. The HoPE may terminate a contract for the convenience
of the Government if he has determined the existence of conditions that make
Project Implementation economically, financially or technically impractical
and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes
in law and national government policies.

25.2. The Goods that have been delivered and/or performed or are ready for delivery
or performance within thirty (30) calendar days after the Supplier’s receipt of
Notice to Terminate shall be accepted by the Procuring Entity at the contract
terms and prices. For Goods not yet performed and/or ready for delivery, the
Procuring Entity may elect:

(a) to have any portion delivered and/or performed and paid at the
contract terms and prices; and/or

(b) to cancel the remainder and pay to the Supplier an agreed amount for
partially completed and/or performed goods and for materials and
parts previously procured by the Supplier.

25.3. If the Supplier suffers loss in its initial performance of the terminated contract,
such as purchase of raw materials for goods specially manufactured for the
Procuring Entity which cannot be sold in open market, it shall be allowed to
recover partially from this Contract, on a quantum meruit basis. Before

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 recovery may be made, the fact of loss must be established under oath by the
Supplier to the satisfaction of the Procuring Entity before recovery may be
made.

26. Termination for Unlawful Acts

26.1. The Procuring Entity may terminate this Contract in case it is determined prima
facie that the Supplier has engaged, before or during the implementation of
this Contract, in unlawful deeds and behaviors relative to contract acquisition
and implementation. Unlawful acts include, but are not limited to, the
following:

(a) Corrupt, fraudulent, and coercive practices as defined in ITB Clause

3.1(a);

(b) Drawing up or using forged documents;

(c) Using adulterated materials, means or methods, or engaging in

production contrary to rules of science or the trade; and

(d) Any other act analogous to the foregoing.

27. Procedures for Termination of Contracts

27.1. The following provisions shall govern the procedures for termination of this
Contract:

(a) Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative,
the Implementing Unit shall, within a period of seven (7) calendar days,
verify the existence of such ground(s) and cause the execution of a
Verified Report, with all relevant evidence attached;

(b) Upon recommendation by the Implementing Unit, the HoPE shall

terminate this Contract only by a written notice to the Supplier
conveying the termination of this Contract. The notice shall state:

(i) that this Contract is being terminated for any of the ground(s)
afore-mentioned, and a statement of the acts that constitute
the ground(s) constituting the same;

(ii) the extent of termination, whether in whole or in part;

(iii) an instruction to the Supplier to show cause as to why this

Contract should not be terminated; and

(iv) special instructions of the Procuring Entity, if any.

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 (c) The Notice to Terminate shall be accompanied by a copy of the Verified
Report;

(d) Within a period of seven (7) calendar days from receipt of the Notice of
Termination, the Supplier shall submit to the HoPE a verified position
paper stating why this Contract should not be terminated. If the
Supplier fails to show cause after the lapse of the seven (7) day period,
either by inaction or by default, the HoPE shall issue an order
terminating this Contract;

(e) The Procuring Entity may, at any time before receipt of the Supplier’s
verified position paper described in item (d) above withdraw the Notice
to Terminate if it is determined that certain items or works subject of
the notice had been completed, delivered, or performed before the
Supplier’s receipt of the notice;

(f) Within a non-extendible period of ten (10) calendar days from receipt
of the verified position paper, the HoPE shall decide whether or not to
terminate this Contract. It shall serve a written notice to the Supplier
of its decision and, unless otherwise provided, this Contract is deemed
terminated from receipt of the Supplier of the notice of decision. The
termination shall only be based on the ground(s) stated in the Notice to
Terminate;

(g) The HoPE may create a Contract Termination Review Committee (CTRC)
to assist him in the discharge of this function. All decisions
recommended by the CTRC shall be subject to the approval of the HoPE;
and

(h) The Supplier must serve a written notice to the Procuring Entity of its
intention to terminate the contract at least thirty (30) calendar days
before its intended termination. The Contract is deemed terminated if
it is not resumed in thirty (30) calendar days after the receipt of such
notice by the Procuring Entity.

28. Assignment of Rights

The Supplier shall not assign his rights or obligations under this Contract, in whole or
in part, except with the Procuring Entity’s prior written consent.

29. Contract Amendment

Subject to applicable laws, no variation in or modification of the terms of this Contract
shall be made except by written amendment signed by the parties.

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30. Application
These General Conditions shall apply to the extent that they are not superseded by
provisions of other parts of this Contract.

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Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract

Similar to the BDS, the clauses in this Section are intended to assist the Procuring Entity in
providing contract-specific information in relation to corresponding clauses in the GCC.

The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Goods purchased. In preparing this Section, the following aspects
should be checked:

(a) Information that complements provisions of Section IV must be incorporated.

(b) Amendments and/or supplements to provisions of Section IV, as necessitated

by the circumstances of the specific purchase, must also be incorporated.

However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV should be incorporated herein.

For foreign-assisted projects, the Special Conditions of Contract to be used is provided in

Section IX-Foreign-Assisted Projects.

65
 Special Conditions of Contract
GCC Clause

1.1(g) The Procuring Entity is Department of Agrarian Reform, Aurora

Provincial Agrarian Reform Office.
1.1(i) The Supplier is [to be inserted at the time of contract award].

1.1(j) The Funding Source is the Government of the Philippines (GOP)

through General Appropriation Act FY 2024 in the amount of Two
Million Seven Hundred Twenty Thousand Pesos Only (P2,720,000.00)

NOTE: In the case of National Government Agencies, the General

Appropriations Act and/or continuing appropriations; in the case of
Government-Owned and/or –Controlled Corporations, Government
Financial Institutions, and State Universities and Colleges, the
Corporate Budget for the contract approved by the governing Boards;
in the case of Local Government Units, the Budget for the contract
approved by the respective Sanggunian.

1.1(k) The Project sites are defined in Section VI. Schedule of Requirements

2.1 No further instructions.

5.1 The Procuring Entity’s address for Notices is: Department of Agrarian
Reform, Aurora Provincial Agrarian Reform Office, Baler, Aurora
Province 3200.

The Supplier’s address for Notices is: [Insert address including, name
of contact, fax and telephone number]
6.2 List here any additional requirements for the completion of this
Contract. The following requirements and the corresponding
provisions may be deleted, amended, or retained depending on its
applicability to this Contract:

Delivery and Documents –

For purposes of the Contract, “EXW,” “FOB,” “FCA,” “CIF,” “CIP,” “DDP”
and other trade terms used to describe the obligations of the parties
shall have the meanings assigned to them by the current edition of
INCOTERMS published by the International Chamber of

66
Commerce, Paris. The Delivery terms of this Contract shall be as
follows:

For Goods Supplied from Abroad, state “The delivery terms applicable
to the Contract are DDP delivered [insert place of destination]. In
accordance with INCOTERMS.”

For Goods Supplied from Within the Philippines, state “The delivery
terms applicable to this Contract are delivered [insert place of
destination]. Risk and title will pass from the Supplier to the Procuring
Entity upon receipt and final acceptance of the Goods at their final
destination.”

Delivery of the Goods shall be made by the Supplier in accordance

with the terms specified in Section VI. Schedule of Requirements. The
details of shipping and/or other documents to be furnished by the
Supplier are as follows:

For Goods supplied from within the Philippines:

Upon delivery of the Goods to the Project Site, the Supplier shall notify
the Procuring Entity and present the following documents to the
Procuring Entity:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies delivery receipt/note, railway receipt,
or truck receipt;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for imported
Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the authorized receiving personnel;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.

For Goods supplied from abroad:

Upon shipment, the Supplier shall notify the Procuring Entity and the
insurance company by cable the full details of the shipment, including
Contract Number, description of the Goods, quantity, vessel, bill of

67
lading number and date, port of loading, date of shipment, port of
discharge etc. Upon delivery to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents as
applicable with the documentary requirements of any letter of credit
issued taking precedence:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies of the negotiable, clean shipped on
board bill of lading marked “freight pre-paid” and five copies of
the non-negotiable bill of lading ;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for imported
Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the Procuring Entity’s representative at the
Project Site;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.

For purposes of this Clause the Procuring Entity’s Representative at the

Project Site is [insert name(s)].

Incidental Services –

The Supplier is required to provide all of the following services,

including additional services, if any, specified in Section VI. Schedule
of Requirements:

Select appropriate requirements and delete the rest.

(a) performance or supervision of on-site assembly and/or start-up

of the supplied Goods;
(b) furnishing of tools required for assembly and/or maintenance
of the supplied Goods;
(c) furnishing of a detailed operations and maintenance manual for
each appropriate unit of the supplied Goods;

68
(d) performance or supervision or maintenance and/or repair of
the supplied Goods, for a period of time agreed by the parties,

provided that this service shall not relieve the Supplier of any
warranty obligations under this Contract; and
(e) training of the Procuring Entity’s personnel, at the Supplier’s
plant and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied Goods.

The Contract price for the Goods shall include the prices charged by
the Supplier for incidental services and shall not exceed the prevailing
rates charged to other parties by the Supplier for similar services.

Spare Parts –

The Supplier is required to provide all of the following materials,

notifications, and information pertaining to spare parts manufactured
or distributed by the Supplier:

Select appropriate requirements and delete the rest.

(a) such spare parts as the Procuring Entity may elect to purchase
from the Supplier, provided that this election shall not relieve
the Supplier of any warranty obligations under this Contract;
and
(b) in the event of termination of production of the spare parts:

i. advance notification to the Procuring Entity of the

pending termination, in sufficient time to permit the
Procuring Entity to procure needed requirements; and
ii. following such termination, furnishing at no cost to the
Procuring Entity, the blueprints, drawings, and
specifications of the spare parts, if requested.

The spare parts required are listed in Section VI. Schedule of

Requirements and the cost thereof are included in the Contract Price

The Supplier shall carry sufficient inventories to assure ex-stock supply

of consumable spares for the Goods for a period of [insert here the
time period specified. If not used insert time period of three times the
warranty period].

Other spare parts and components shall be supplied as promptly as

possible, but in any case within [insert appropriate time period]
months of placing the order.

69
Packaging –

The Supplier shall provide such packaging of the Goods as is required

to prevent their damage or deterioration during transit to their final
destination, as indicated in this Contract. The packaging shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packaging case size and weights shall
take into consideration, where appropriate, the remoteness of the
GOODS’ final destination and the absence of heavy handling facilities
at all points in transit.

The packaging, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as shall
be expressly provided for in the Contract, including additional
requirements, if any, specified below, and in any subsequent
instructions ordered by the Procuring Entity.

The outer packaging must be clearly marked on at least four (4) sides
as follows:
Name of the Procuring Entity
Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting instructions
Any special handling instructions
Any relevant HAZCHEM classifications

A packaging list identifying the contents and quantities of the package

is to be placed on an accessible point of the outer packaging if
practical. If not practical the packaging list is to be placed inside the
outer packaging but outside the secondary packaging.

Insurance –

The Goods supplied under this Contract shall be fully insured by the
Supplier in a freely convertible currency against loss or damage
incidental to manufacture or acquisition, transportation, storage, and
delivery. The Goods remain at the risk and title of the Supplier until
their final acceptance by the Procuring Entity.

Transportation –

Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, transport of the Goods to the port of destination or

70
 such other named place of destination in the Philippines, as shall be
specified in this Contract, shall be arranged and paid for by the
Supplier, and the cost thereof shall be included in the Contract Price.

Where the Supplier is required under this Contract to transport the

Goods to a specified place of destination within the Philippines,
defined as the Project Site, transport to such place of destination in
the Philippines, including insurance and storage, as shall be specified
in this Contract, shall be arranged by the Supplier, and related costs
shall be included in the Contract Price.

Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, Goods are to be transported on carriers of Philippine
registry. In the event that no carrier of Philippine registry is available,
Goods may be shipped by a carrier which is not of Philippine registry
provided that the Supplier obtains and presents to the Procuring Entity
certification to this effect from the nearest Philippine consulate to the
port of dispatch. In the event that carriers of Philippine registry are
available but their schedule delays the Supplier in its performance of
this Contract the period from when the Goods were first ready for
shipment and the actual date of shipment the period of delay will be
considered force majeure in accordance with GCC Clause 22.

The Procuring Entity accepts no liability for the damage of Goods

during transit other than those prescribed by INCOTERMS for DDP
Deliveries. In the case of Goods supplied from within the Philippines
or supplied by domestic Suppliers risk and title will not be deemed to
have passed to the Procuring Entity until their receipt and final
acceptance at the final destination.

Patent Rights –

The Supplier shall indemnify the Procuring Entity against all third-party
claims of infringement of patent, trademark, or industrial design rights
arising from use of the Goods or any part thereof.
10.4 Maintain the GCC Clause and state here “Not applicable” or if
procurement involves a foreign-denominated bid, state "Payment shall
be made in [insert currency].
10.5 State “Payment using LC is not allowed.” or

If payment using LC is allowed, state “The amount of provisional sum

is ____________ Pesos (PhP ____________).” [Note: The provisional
sum shall not exceed 10% of the ABC, and shall form part of the ABC].

71
11.3 State “Maintain the GCC Clause.”

or

State “The terms of payment shall be as follows: _____________”

13.4(c) Specify additional conditions, if any, that must be met prior to the
release of the performance security, otherwise, state “No further
instructions”.
16.1 The inspections and tests that will be conducted are: [Insert the
applicable inspections and tests, if none, state “None”].
17.3 If the Goods pertain to Expendable Supplies: Three (3) months after
acceptance by the Procuring Entity of the delivered Goods or after the
Goods are consumed, whichever is earlier.

If the Goods pertain to Non-expendable Supplies: One (1) year after

acceptance by the Procuring Entity of the delivered Goods.
17.4 The period for correction of defects in the warranty period is [insert
number of days].
21.1 State here “No additional provision.” or, if the Supplier is a joint
venture, “All partners to the joint venture shall be jointly and severally
liable to the Procuring Entity.”

72
 Section VI. Schedule of Requirements
The delivery schedule expressed as weeks/months stipulates hereafter a delivery date which
is the date of delivery to the project site.

Unit Item Description Quantity Unit Cost

unit Combine Harvester 1 1,750,000.00

Engine Type: Water Cooled, four cycle, four-cylinder, diesel engine
Total displacement: 2.434 liters
Output: 50.7 kW; Rotational Speed: 2,700 RPM
Horse Power: 70 HP
Fuel Tank Capacity: 85-90 liters
Travel Section:
Speed shift system: Range (3F/3R)
Turning System: Turning left and right up and down reel
Reaper Section:
Reel: Diameter x Width: 900 mm x 1903 mm
Gathering Length: 2,075 mm
Cutter Bar length: 1,980 mm
Thresher Section:
Threshing Cylinder: Diameter x length: 620 mm x 1,650 mm
Revolution: 560 rpm
Threshing System: Axial Flow
Hopper:
Capacity: 500L/approx. 300 kilograms
Take out system: 2/bagging
Electrical System: 12 volts battery starting, lighting equipment, alarms,
Harvesting Capacity: 0.3-0.62 hectare/hour for rice
AMTEC Tested
List of Standard Tools:
>1 Pc. Tool Box
>1 Pc. Wrench, Socket 17 mm x 19 mm
>1 Pc. Wrench Socket 12 mm x 12 mm
>1 Pc. Screw Diver (flat head) 8"
> Pc. Spanner 10 mm x 12 mm
>1 Pc. Spanner 12mm x 14 mm
>1 Pc. Spanner 17mm x 19 mm
>1 Pc. Spanner 22mm x 24mm
>1 Pc. Wrench 200 mm
>1 pc. Plier 150 mm

73
 >1 Pc. Oiler (Capacity 200 ml.)
>1 Pc. User Guide book
>1 Pc. Owner’s Manual
>Warranty Certificate
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the word
"DAR CRFPSP Aurora"

unit 4 Wheel Drive tractor 1 970,000.00

Engine:
Type: Direct injection, vertical, Water cooled, 4 cycle diesel
Number of Cylinder: 3
Engine Gross power: 39-39.5 HP
Engine Net Power: 38.5 HP
PTO Power: 31.5 HP-32hp
Displacement: 1,642c.c. to 1,826 c.c.
Battery: 12 volts
Fuel tank Capacity: 38- 40 liters
Dimensions:
Overall Length: 2,920 mm
Overall width: 1,422mm-
Overall height (top of canopy): 2,035 mm
Wheel base: 1,610 mm
Minimum Ground Clearance: 355 mm
Tread Front: 1,080 mm; rear: 1,120 mm
Weight: 1,275 kg
Clutch: Dry type single stage
Travelling System
Tire size:
Front: 8-16
Rear: 12.4-24
Steering: Integral type power steering
Transmission: Gear shift, 8 forward and 8 reverse
Minimum Turning Radius (with brake) 2.6 m
Travelling Speed: Forward Min. 2.0-Max. 25.1 Reverse Min 2.0-Max 22.9
Brake: Mechanical wet disk type
Hydraulic System:
Pump Capacity (l/min): 23.9
Hydraulic control system: Position control
Hydraulics: Three-point hitch category 1
Max. lift force: At lift Points (kg): 906; 24 in. behind (kg): 651
PTO system:
Rear PTO: SAE 1-3/8, 6 splines

74
PTO/ engine speed: 540 (rpm) at 2376 (rpm)
750 (rpm) at 2596 (rpm)
AMTEC Tested
List of Standard Tools:
>1 Pc Box Wrench 14 mm x 15 mm
>1 Pc Box Wrench 16 mm x 17 mm
>1 Pc Box Wrench 18 mm x 19 mm
>1 Pc. Hydraulic Jack 3 tons
>1 Pc. Belt Wrench
>1 Pc. Wrench 22 mm to 19 mm
>1 Pc. Screw Driver Flat 8"
1 Pc. Screw Driver Flat 5"
1 Pc. Screw Driver Phillip 5"
1 Pc. Grease Gun 120 c.c.
Rotary Tiller:
Total width: 1750 mm
Working width: 1483 mm
Number of blades: 32 pcs.
Weight: 300 kg
AMTEC Tested
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the word
"DAR CRFPSP Aurora"

75
 Section VII. Technical Specifications

Notes for Preparing the Technical Specifications

A set of precise and clear specifications is a prerequisite for Bidders to respond realistically
and competitively to the requirements of the Procuring Entity without qualifying their bids.
In the context of Competitive Bidding, the specifications (e.g. production/delivery schedule,
manpower requirements, and after-sales service/parts) must be prepared to permit the
widest possible competition and, at the same time, present a clear statement of the required
standards of workmanship, materials, and performance of the goods and services to be
procured.. Only if this is done will the objectives of transparency, equity, efficiency, fairness
and economy in procurement be realized, responsiveness of bids be ensured, and the
subsequent task of bid evaluation and post-qualification facilitated. The specifications should
require that all items, materials and accessories to be included or incorporated in the goods
be new, unused, and of the most recent or current models, and that they include or
incorporate all recent improvements in design and materials unless otherwise provided in the
Contract.

Samples of specifications from previous similar procurements are useful in this respect. The
use of metric units is encouraged. Depending on the complexity of the goods and the
repetitiveness of the type of procurement, it may be advantageous to standardize the General
Technical Specifications and incorporate them in a separate subsection. The General
Technical Specifications should cover all classes of workmanship, materials, and equipment
commonly involved in manufacturing similar goods. Deletions or addenda should then adapt
the General Technical Specifications to the particular procurement.

Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for equipment, materials, and workmanship, recognized Philippine
and international standards should be used as much as possible. Where other particular
standards are used, whether national standards or other standards, the specifications should
state that equipment, materials, and workmanship that meet other authoritative standards,
and which ensure at least a substantially equal quality than the standards mentioned, will
also be acceptable. The following clause may be inserted in the Special Conditions of Contract
or the Technical Specifications.

Sample Clause: Equivalency of Standards and Codes

Wherever reference is made in the Technical Specifications to specific standards and codes to
be met by the goods and materials to be furnished or tested, the provisions of the latest
edition or revision of the relevant standards and codes shall apply, unless otherwise expressly
stated in the Contract. Where such standards and codes are national or relate to a particular

76
country or region, other authoritative standards that ensure substantial equivalence to the
standards and codes specified will be acceptable.

Reference to brand name and catalogue number should be avoided as far as possible; where
unavoidable they should always be followed by the words “or at least equivalent.” References
to brand names cannot be used when the Funding Source is the GOP.

Where appropriate, drawings, including site plans as required, may be furnished by the
Procuring Entity with the Bidding Documents. Similarly, the Supplier may be requested to
provide drawings or samples either with its Bid or for prior review by the Procuring Entity
during contract execution.

Bidders are also required, as part of the technical specifications, to complete their statement
of compliance demonstrating how the items comply with the specification.

77
 Technical Specifications
Item Specification Statement of Compliance

Bidders must state here either “Comply” or

“Not Comply” against each of the individual
parameters of each
Specification stating the corresponding
performance parameter of the equipment
offered. Statements of “Comply” or “Not
Comply” must be supported by evidence in a
Bidders Bid and cross-referenced to that
evidence. Evidence shall be in the form of
manufacturer’s un-amended sales literature,
unconditional statements of specification
and compliance issued by the manufacturer,
samples, independent test data etc., as
appropriate. A statement that is not
supported by evidence or is subsequently
found to be contradicted by the evidence
presented will render the Bid under
evaluation liable for rejection. A statement
either in the Bidders statement of
compliance or the supporting evidence that
is found to be false either during Bid
evaluation, post-qualification or the
execution of the Contract may be regarded as
fraudulent and render the Bidder or supplier
liable for prosecution subject to the
provisions of ITB Clause 3.1(a)(ii) and/or GCC
Clause 2.1(a)(ii).

Unit Item Description Quantity

unit Combine Harvester 1

Engine Type: Water Cooled, four cycle, four-cylinder, diesel engine
Total displacement: 2.434 liters
Output: 50.7 kW; Rotational Speed: 2,700 RPM
Horse Power: 70 HP
Fuel Tank Capacity: 85-90 liters
Travel Section:
Speed shift system: Range (3F/3R)
Turning System: Turning left and right up and down reel
Reaper Section:
Reel: Diameter x Width: 900 mm x 1903 mm
Gathering Length: 2,075 mm
Cutter Bar length: 1,980 mm

78
 Thresher Section:
Threshing Cylinder: Diameter x length: 620 mm x 1,650 mm
Revolution: 560 rpm
Threshing System: Axial Flow
Hopper:
Capacity: 500L/approx. 300 kilograms
Take out system: 2/bagging
Electrical System: 12 volts battery starting, lighting equipment, alarms,
Harvesting Capacity: 0.3-0.62 hectare/hour for rice
AMTEC Tested
List of Standard Tools:
>1 Pc. Tool Box
>1 Pc. Wrench, Socket 17 mm x 19 mm
>1 Pc. Wrench Socket 12 mm x 12 mm
>1 Pc. Screw Diver (flat head) 8"
> Pc. Spanner 10 mm x 12 mm
>1 Pc. Spanner 12mm x 14 mm
>1 Pc. Spanner 17mm x 19 mm
>1 Pc. Spanner 22mm x 24mm
>1 Pc. Wrench 200 mm
>1 pc. Plier 150 mm
>1 Pc. Oiler (Capacity 200 ml.)
>1 Pc. User Guide book
>1 Pc. Owner’s Manual
>Warranty Certificate
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the word
"DAR CRFPSP Aurora"
unit 4 Wheel Drive tractor 1
Engine:
Type: Direct injection, vertical, Water cooled, 4 cycle diesel
Number of Cylinder: 3
Engine Gross power: 39-39.5 HP
Engine Net Power: 38.5 HP
PTO Power: 31.5 HP-32hp
Displacement: 1,642c.c. to 1,826 c.c.
Battery: 12 volts
Fuel tank Capacity: 38- 40 liters
Dimensions:
Overall Length: 2,920 mm
Overall width: 1,422mm-
Overall height (top of canopy): 2,035 mm
Wheel base: 1,610 mm

79
Minimum Ground Clearance: 355 mm
Tread Front: 1,080 mm; rear: 1,120 mm
Weight: 1,275 kg
Clutch: Dry type single stage
Travelling System
Tire size:
Front: 8-16
Rear: 12.4-24
Steering: Integral type power steering
Transmission: Gear shift, 8 forward and 8 reverse
Minimum Turning Radius (with brake) 2.6 m
Travelling Speed: Forward Min. 2.0-Max. 25.1 Reverse Min 2.0-Max 22.9
Brake: Mechanical wet disk type
Hydraulic System:
Pump Capacity (l/min): 23.9
Hydraulic control system: Position control
Hydraulics: Three-point hitch category 1
Max. lift force: At lift Points (kg): 906; 24 in. behind (kg): 651
PTO system:
Rear PTO: SAE 1-3/8, 6 splines
PTO/ engine speed: 540 (rpm) at 2376 (rpm)
750 (rpm) at 2596 (rpm)
AMTEC Tested
List of Standard Tools:
>1 Pc Box Wrench 14 mm x 15 mm
>1 Pc Box Wrench 16 mm x 17 mm
>1 Pc Box Wrench 18 mm x 19 mm
>1 Pc. Hydraulic Jack 3 tons
>1 Pc. Belt Wrench
>1 Pc. Wrench 22 mm to 19 mm
>1 Pc. Screw Driver Flat 8"
1 Pc. Screw Driver Flat 5"
1 Pc. Screw Driver Phillip 5"
1 Pc. Grease Gun 120 c.c.
Rotary Tiller:
Total width: 1750 mm
Working width: 1483 mm
Number of blades: 32 pcs.
Weight: 300 kg
AMTEC Tested
Terms and Conditions:
>Warranty (2 years’ service warranty in parts and service on factory defects)
>With reflectorized DAR LOGO sticker -6 Inches x 3 inches (L x W), the word
"DAR CRFPSP Aurora"

80
 Section VIII. Bidding Forms

Notes on the Bidding Forms

The Bidder shall complete and submit with its Bid the Bid Form and Price Schedules in
accordance with ITB Clause 15 with the requirements of the Bidding Documents and the
format set out in this Section.

When requested in the BDS, the Bidder should provide the Bid Security, either in the form
included hereafter or in another form acceptable to the Entity, pursuant to ITB Clause 18.1.

The Contract Agreement Form, when it is finalized at the time of contract award, should
incorporate any corrections or modifications to the accepted Bid resulting from price
corrections. The Price Schedule and Schedule of Requirements deemed to form part of the
contract should be modified accordingly.

The Performance Security Form and Bank Guarantee Form for Advance Payment should
not be completed by the Bidders at the time of their Bid preparation. Only the successful
Bidder will be required to provide performance security and bank guarantee for advance
payment in accordance with one of the forms indicated herein or in another form
acceptable to the Procuring Entity and pursuant to GCC Clause 13 and its corresponding SCC
provision.

The sworn affidavit must be completed by all Bidders in accordance with ITB Clause 4.2.
Failure to do so and submit it with the bid shall result in the rejection of the bid and the
Bidder’s disqualification.

81
 TABLE OF CONTENTS

BID FORM ............................................................................................................. 78

CONTRACT AGREEMENT FORM .................................................................................. 81
OMNIBUS SWORN STATEMENT ................................................................................. 83
BANK GUARANTEE FORM FOR ADVANCE PAYMENT ...................................................... 86

82
 Bid Form

Date:
Invitation to Bid4 No:

To: [name and address of Procuring Entity]

Gentlemen and/or Ladies:

Having examined the Bidding Documents including Bid Bulletin Numbers [insert numbers],
the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
[supply/deliver/perform] [description of the Goods] in conformity with the said Bidding
Documents for the sum of [total Bid amount in words and figures] or such other sums as may
be ascertained in accordance with the Schedule of Prices attached herewith and made part of
this Bid.

We undertake, if our Bid is accepted, to deliver the goods in accordance with the delivery
schedule specified in the Schedule of Requirements.

If our Bid is accepted, we undertake to provide a performance security in the form, amounts,
and within the times specified in the Bidding Documents.

We agree to abide by this Bid for the Bid Validity Period specified in BDS provision for ITB
Clause 18.2 and it shall remain binding upon us and may be accepted at any time before the
expiration of that period.

Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid,

and to contract execution if we are awarded the contract, are listed below:5

Name and Amount and Purpose of Commission

address of agent Currency or gratuity

(if none, state “None”)

Until a formal Contract is prepared and executed, this Bid, together with your written
acceptance thereof and your Notice of Award, shall be binding upon us.

We understand that you are not bound to accept the Lowest Calculated Bid or any Bid
you may receive.

4 If ADB, JICA and WB funded projects, use IFB.

5 Applicable only if the Funding Source is the ADB, JICA or WB.

83
 We certify/confirm that we comply with the eligibility requirements as per ITB Clause 5 of
the Bidding Documents.

We likewise certify/confirm that the undersigned, [for sole proprietorships, insert: as the
owner and sole proprietor or authorized representative of Name of Bidder, has the full power
and authority to participate, submit the bid, and to sign and execute the ensuing contract, on
the latter’s behalf for the Name of Project of the Name of the Procuring Entity] [for
partnerships, corporations, cooperatives, or joint ventures, insert: is granted full power and
authority by the Name of Bidder, to participate, submit the bid, and to sign and execute the
ensuing contract on the latter’s behalf for Name of Project of the Name of the Procuring
Entity].

We acknowledge that failure to sign each and every page of this Bid Form, including the
attached Schedule of Prices, shall be a ground for the rejection of our bid.

Dated this ________________ day of ________________ 20______.

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of

84
 For Goods Offered From Within the Philippines

Name of Bidder . Invitation to Bid6 Number . Page of .

1 2 3 4 5 6 7 8 9 10
Item Description Country Quantity Unit price EXW Transportation Sales and Cost of Total Price, per Total Price
of origin per item and Insurance other taxes Incidental unit delivered Final
and all other payable if Services, if (col 5+6+7+8) Destination
costs Contract is applicable, per (col 9) x (col 4)
incidental to awarded, per item
delivery, per item
item

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of

6 If ADB, JICA and WB funded projects, use IFB.

85
 Contract Agreement Form

THIS AGREEMENT made the _____ day of __________ 20_____ between [name of
PROCURING ENTITY] of the Philippines (hereinafter called “the Entity”) of the one part and [name of
Supplier] of [city and country of Supplier] (hereinafter called “the Supplier”) of the other part:

WHEREAS the Entity invited Bids for certain goods and ancillary services, viz., [brief description
of goods and services] and has accepted a Bid by the Supplier for the supply of those goods and services
in the sum of [contract price in words and figures] (hereinafter called “the Contract Price”).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are respectively
assigned to them in the Conditions of Contract referred to.

2. The following documents shall be deemed to form and be read and construed as part of this
Agreement, viz.:

(a) the Supplier’s Bid, including the Technical and Financial Proposals, and all other
documents/statements submitted (e.g. bidder’s response to clarifications on the bid),
including corrections to the bid resulting from the Procuring Entity’s bid evaluation;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract; (f) the Performance Security; and (g) the
Entity’s Notice of Award.

3. In consideration of the payments to be made by the Entity to the Supplier as hereinafter

mentioned, the Supplier hereby covenants with the Entity to provide the goods and services and to
remedy defects therein in conformity in all respects with the provisions of the Contract

4. The Entity hereby covenants to pay the Supplier in consideration of the provision of the goods
and services and the remedying of defects therein, the Contract Price or such other sum as may
become payable under the provisions of the contract at the time and in the manner prescribed by the
contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with the laws of the Republic of the Philippines on the day and year first above written.

Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (for the Supplier).

86
 Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES ) CITY/MUNICIPALITY

OF ______ ) S.S.

A F F I D A VI T

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address of
Affiant], after having been duly sworn in accordance with law, do hereby depose and state
that:

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor or authorized representative of [Name

of Bidder] with office address at [address of Bidder];

If a partnership, corporation, cooperative, or joint venture: I am the duly authorized

and designated representative of [Name of Bidder] with office address at [address of
Bidder];

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor, or authorized representative

of [Name of Bidder], I have full power and authority to do, execute and perform any
and all acts necessary to participate, submit the bid, and to sign and execute the
ensuing contract for [Name of the Project] of the [Name of the Procuring Entity], as
shown in the attached duly notarized Special Power of Attorney;

If a partnership, corporation, cooperative, or joint venture: I am granted full power and

authority to do, execute and perform any and all acts necessary to participate, submit
the bid, and to sign and execute the ensuing contract for [Name of the Project] of the
[Name of the Procuring Entity], as shown in the attached [state title of attached
document showing proof of authorization (e.g., duly notarized Secretary’s Certificate,
Board/Partnership Resolution, or Special Power of Attorney, whichever is applicable;)];

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government of

the Philippines or any of its agencies, offices, corporations, or Local Government Units,
foreign government/foreign or international financing institution whose blacklisting
rules have been recognized by the Government Procurement Policy Board;
4. Each of the documents submitted in satisfaction of the bidding requirements is an
authentic copy of the original, complete, and all statements and information provided
therein are true and correct;

5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly authorized
representative(s) to verify all the documents submitted;

6. Select one, delete the rest:

If a sole proprietorship: The owner or sole proprietor is not related to the Head of the
Procuring Entity, members of the Bids and Awards Committee (BAC), the Technical
Working Group, and the BAC Secretariat, the head of the Project Management Office
or the end-user unit, and the project consultants by consanguinity or affinity up to the
third civil degree;

If a partnership or cooperative: None of the officers and members of [Name of Bidder]

is related to the Head of the Procuring Entity, members of the Bids and Awards
Committee (BAC), the Technical Working Group, and the BAC Secretariat, the head of
the Project Management Office or the end-user unit, and the project consultants by
consanguinity or affinity up to the third civil degree;

If a corporation or joint venture: None of the officers, directors, and controlling

stockholders of [Name of Bidder] is related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group, and
the BAC Secretariat, the head of the Project Management Office or the end-user unit,
and the project consultants by consanguinity or affinity up to the third civil degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the following responsibilities as a

Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the implementation of the

Contract;

c) Made an estimate of the facilities available and needed for the contract to be bid,
if any; and

d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the Project].
 9. [Name of Bidder] did not give or pay directly or indirectly, any commission, amount,
fee, or any form of consideration, pecuniary or otherwise, to any person or official,
personnel or representative of the government in relation to any procurement project
or activity.

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.

_____________________________________
Bidder’s Representative/Authorized Signatory

SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place of
execution], Philippines. Affiant/s is/are personally known to me and was/were identified by
me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice
(A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with no.
________ and his/her Community Tax Certificate No. _______ issued on ____ at ______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission _______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. ______ [date issued], [place issued]
IBP No. ______ [date issued], [place issued]

Doc. No. _____

Page No. _____
Book No. _____
Series of _____

* This form will not apply for WB funded projects.

 Bank Guarantee Form for Advance Payment

To: [name and address of PROCURING ENTITY]

[name of Contract]

Gentlemen and/or Ladies:

In accordance with the payment provision included in the Special Conditions of Contract,
which amends Clause 10 of the General Conditions of Contract to provide for advance
payment, [name and address of Supplier] (hereinafter called the “Supplier”) shall deposit with
the PROCURING ENTITY a bank guarantee to guarantee its proper and faithful performance
under the said Clause of the Contract in an amount of [amount of guarantee in figures and
words].

We, the [bank or financial institution], as instructed by the Supplier, agree unconditionally and
irrevocably to guarantee as primary obligator and not as surety merely, the payment to the
PROCURING ENTITY on its first demand without whatsoever right of objection on our part and
without its first claim to the Supplier, in the amount not exceeding [amount of guarantee in
figures and words].

We further agree that no change or addition to or other modification of the terms of the
Contract to be performed thereunder or of any of the Contract documents which may be
made between the PROCURING ENTITY and the Supplier, shall in any way release us from any
liability under this guarantee, and we hereby waive notice of any such change, addition, or
modification.

This guarantee shall remain valid and in full effect from the date of the advance payment
received by the Supplier under the Contract until [date].

Yours truly,

Signature and seal of the Guarantors

[name of bank or financial institution]

[address]

[date]
 BID SECURING DECLARATION FORM

REPUBLIC OF THE PHILIPPINES)

CITY OF _______________________) S.S.

x------------------------------------------------------x

BID SECURING DECLARATION

Invitation to Bid: [Insert Reference number]

To: [Insert name and address of the Procuring Entity]

I/We7, the undersigned, declare that:

1. I/We understand that, according to your conditions, bids must be supported by

a Bid Security, which may be in the form of a Bid-Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for
any contract with any procuring entity for a period of two (2) years upon receipt
of your Blacklisting order; and, (b) I/we will pay the applicable fine provided
under Section 6 of the Guidelines on the Use of Bid Securing Declaration, within
fifteen (15) days from receipt of the written demand by the procuring entity for
the commission of acts resulting to the enforcement of the bid securing
declaration under Sections 23.1(b), 34.2, 40.1 and 69.1, except 69.1(f), of the
IRR of RA 9184; without prejudice to other legal action the government may
undertake.

3. I/We understand that this Bid Securing Declaration shall cease to be valid on
the following circumstances:

(a) Upon expiration of the bid validity period, or any extension thereof
pursuant to your request;

(b) I am/we are declared ineligible or post-disqualified upon receipt of

your notice to such effect, and (i) I/we failed to timely file a request for
reconsideration or (ii) I/we filed a waiver to avail of said right;
7 Select one and delete the other. Adopt the same instruction for similar terms throughout the document.
(c) I am/we are declared the bidder with the Lowest Calculated Responsive Bid,
and I/we have furnished the performance security and signed the
Contract.

IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of
[month] [year] at [place of execution].

[Insert NAME OF BIDDER’S AUTHORIZED

REPRESENTATIVE]
[Insert Signatory’s Legal Capacity]
Affiant

SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place of execution],
Philippines. Affiant/s is/are personally known to me and was/were identified by me through
competent evidence of identity as defined in the 2004 Rules on Notarial Practice (A.M. No.
02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government identification card
used], with his/her photograph and signature appearing thereon, with no. ________ and
his/her Community Tax Certificate No. _______ issued on ____ at ______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission _______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. ______ [date issued], [place issued]
IBP No. ______ [date issued], [place issued]

Doc. No. _____

Page No. _____
Book No. _____
Series of _____