Atty. Anthony Raymond M.

Velicaria
GPPB Recognized Trainer
1
 GENERAL MODE OF PROCUREMENT

 Procurement is done through Competitive Bidding.

(Sec. 10, RA 9184; NPM 67-2012)

 Exception: Alternative Methods of Procurement.

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 COMPETITIVE BIDDING

WHAT IS COMPETITIVE BIDDING?

It is a method of procurement which is open to
participation by any interested party and which consists
of the following processes:
advertisement & posting, issuance of bidding docs, pre-
bid conference, receipt and opening of bids, evaluation
of bids, post-qualification, and award of contract.
(Section 5(h), IRR of RA 9184)

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 STANDARD BIDDING PROCEDURES
GOODS AND INFRA PROJECTS

Pre-Procurement Advertisement / Issuance of Bidding Pre-Bid

Conference Posting of IB Docs Conference

Opening of Submission of
Opening of Eligibility & Eligibility & Tech,
Bid Evaluation Financial Proposals Technical and Financial
Proposals Proposals

Contract Contract
Post Qualification
Award Implementation

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 I. PRE-PROCUREMENT CONFERENCE

 Purpose: Determine the readiness of the procurement

 Conducted prior to advertisement/posting of the
Invitation to Bid
 Mandatory for projects with Approved Budget for the
Contract (ABC) above PhP 2M (goods) or 5M (infra
projects)
 Attended by the following:
a) BAC
b) BAC Secretariat
c) TWG
d) Consultants
e) End-user unit/Other officials

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 REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

 The prohibition applies to the procurement of goods,
and goods component of Infrastructure Projects and
Consulting Services.

 Specifications should be based on relevant

characteristics, functionality and performance
requirements, except for items or parts that are compatible
with the existing fleet or equipment of the same make and
brand, and to maintain the performance, functionality and
useful life of the equipment.

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Importance:

 Signals the start of the bidding process.

 Signals the availability of the bidding documents to the

prospective bidders. (if not mentioned in the Invitation
to Bid) (Sec. 17.3, IRR of RA 9184)

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
 At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at
least two (2) years before advertisement date.

 Not required for projects with ABC of 2M 10M and

below for Goods or 5M 15M and below for
Infrastructure Projects. (Sec. 21.2.1(c), 2016 IRR of RA
9184)

Two (2) years after the effectivity of the IRR,

advertisement shall no longer be required unless the PE
cannot post its opportunities in the PhilGEPS for justifiable
reasons.
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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M (10M) for
Above 2M (10M)
Goods/ 5M (15M)
Medium for Goods/
for Infra
5M (15M) for Infra
and below
Newspaper of General Nationwide
 
Circulation
PhilGEPS website  
PE’s Website, if available  
Conspicuous Place  
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign  
funded procurement

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 III. ISSUANCE OF BIDDING DOCS

 Held at least 12 cd before deadline for bid submission

but not earlier than seven (7) cd from the PhilGEPS posting of
the Invitation to Bid or Bidding Documents. Purpose is to
give sufficient time to examine such documents to
prepare their bid proposals

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 III. ISSUANCE OF BIDDING DOCS

Standard Rate of Bidding Docs

ABC Max Cost
1. P500k and below P 500
2. >P500k to P1m P 1,000
3. >P1m to P5m P 5,000
4. >P5m to P10m P10,000
5. >P10m to P50m P25,000
6 . >P50m to P500m P50,000
7. >P500m P75,000
Bidding Documents Fee may be refunded if there is failure of bidding based on the grounds
provided for under Section 41 of RA 9184 and its IRR
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 IV. PRE-BID CONFERENCE

 Forum where the PE’s representatives & the bidders

discuss the different aspects of the project

 Open to prospective bidders but attendance is not mandatory.

(Sec. 22.3, 2016 IRR of RA 9184)

 Mandatory – ABC 1M or more; Discretionary – ABC

less than 1M

 Held at least 12 cd before deadline for bid submission

but not earlier than seven (7) cd from the PhilGEPS posting of
the Invitation to Bid or Bidding Documents.

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 IV. PRE-BID CONFERENCE
 May be held at least 30 cd before the deadline for the
submission and receipt of bids considering the
following:

a) Method, nature, and complexity of contract

b) International participation is more advantageous

 The pre-bid conference shall discuss, clarify and

explain, among other things, the eligibility requirements
and the technical and financial components of the
contract to be bid including questions and clarifications
raised by the prospective bidders before and during the
Pre-Bid Conference. (Sec. 22.3, IRR of RA 9184)
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 IV. PRE-BID CONFERENCE

 Pre-bid conference may be conducted in person or face-to-

face through videoconferencing, webcasting, or similar
technology, or a combination thereof.

 PEs with videoconferencing capabilities that have

manufacturers, suppliers, distributors, contractors and/or
consultants that also have videoconferencing capabilities may
conduct their pre-bidding conferences electronically.

 The minutes of the pre-bid conference shall be prepared not

later than 3 5 calendar days after the pre-bid conference, and
shall be made available to prospective bidders not later than 5
days upon written request

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 CLARIFICATION OF BIDDING
DOCUMENTS
 Supplemental/Bid Bulletins– issued by BAC to answer
requests for clarification (query submitted 10 cd before
deadline) or interpretation, and upon BAC’s initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).

 Posted in PhilGEPS and PE’s website, and at any

conspicuous place within the premises of the Procuring Entity.
(Sec. 22.5.3, 2016 IRR of RA 9184)

 Bidders who have submitted bids before issuance of

Supplemental/Bid Bulletin must be informed in writing
and allowed to modify or withdraw their respective bids
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 V. SUBMISSION AND
RECEIPT OF BIDS
Re-scheduling of bid opening (due to justifiable reasons,
i.e lack of quorum, cancellation of office work due to bad
weather)

• 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 PE (Sec. 29, 2016
IRR of RA 9184)
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 PACKAGING
Original Copy 1 Copy 2
Tech F in Tech Fin Tech Fin

Original Copy 1 Copy 2

or
 VI. OPENING AND EVALUATION OF
1ST ENVELOPE

- 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.
- 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) cd from the date of the bid opening.
(Sec. 25.7, 2016 IRR of RA 9184)
- The original copy shall be signed by the bidder or its duly
authorized representative

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 VI. OPENING AND EVALUATION OF
1ST ENVELOPE

Unsealed or unmarked bid envelopes shall be rejected.

However, bid envelopes that are not properly sealed and
marked, as required in the Bidding Documents, shall be
accepted, provided that the bidder or its duly authorized
representative shall acknowledge such condition of the bid as
submitted. The BAC shall assume no responsibility for the
misplacement of the contents of the improperly sealed or marked
bid, or for its premature opening. (Sec. 25.9, 2016 IRR of RA
9184)

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 VI. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:

1. Eligibility requirements (Legal, Technical, Financial)

2. Bid Security

3. Technical Specifications (Goods) / Project requirements

(Infra)

4. Omnibus sworn statements

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 ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
LEGAL (2009 IRR):
1. DTI/SEC/CDA Registration 1. DTI/SEC/CDA Registration
2. Mayor’s permit or equivalent 2. Mayor’s permit or equivalent
document for Exclusive Economic document for Exclusive Economic
Zones or Areas Zones or Areas
3. Tax clearance per Executive 3. Tax clearance per Executive
Order 398, series of 2005, as finally Order 398, series of 2005, as finally
reviewed and approved by the reviewed and approved by the
BIR. BIR.
LEGAL (2016 IRR):
1. PhilGEPS Certificate of 1. PhilGEPS Certificate of
Registration and Membership Registration and Membership
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 ELIGIBILITY REQUIREMENTS

Submission of PhilGEPS Certificate of Registration and

Membership (Blue or Platinum) in lieu of the Class “A” eligibility
documents under Sections 23.1(a) and 24.1(a)

Section 8.5.2, 2016 IRR of RA 9184 - All bidders shall upload and
maintain in PhilGEPS a current and updated file of the following
Class “A” eligibility documents under Sections 23.1(a) and 24.1(a):
a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.
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 ELIGIBILITY REQUIREMENTS

Submission of PhilGEPS Certificate of Registration and

Membership

 For foreign bidders participating in the procurement by a

Philippine Foreign Service Office or Post, they shall submit
their eligibility documents under Section 23.1, 2016 IRR of
RA 9184. Provided, that the winning bidder shall register
with the PhilGEPS in accordance with Sec. 37.1.4 of the
2016 IRR of RA 9184.

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 ELIGIBILITY REQUIREMENTS
GOODS INFRASTRUCTURE
TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC
3. PCAB license or Special PCAB
license in case of JV, and
registration.
FINANCIAL:
1. Audited financial statement 1. Audited financial statement
2. NFCC computation or committed 2. NFCC*
Line of Credit*
Class B Document
In case of JV, either JVA or In case of JV, only JVA entered into
notarized statement from JV by JV partners.
partners that they will enter into a
JV if awarded the contract.
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 LEGAL ELIGIBILITY CRITERIA

GOODS INFRASTRUCTURE
• General rule: 60% Filipino • General rule: 75% Filipino
• Foreign bidder allowed if: • Foreign contractors allowed if stated
1) Stated in treaty or international or in treaty or international or executive
executive agreement; agreement
2) National of a country offering
reciprocity rights to Filipinos;
3) Goods not available from local
suppliers; or
4) To prevent situations that defeat
competition or restrain trade
• If joint venture, less than 75% is
allowed if -
• Structures to be built require
techniques not possessed by 75%
Filipino-owned; and
• Not less than 25% Filipino
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 MAYOR’S PERMIT

 Mayor’s Permit allows an entity to legally perform the

requirements and obligations of the project and the
resultant contract.

 Recently expired Mayor’s/Business permit shall be

accepted together with the official receipt as proof that
the bidder has applied for renewal within the period
prescribed by the concerned local government unit: Provided,
that the renewed permit shall be submitted as a post-
qualification requirement in accordance with Sec. 34.2 of
the 2016 IRR of RA 9184

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 TAX CLEARANCE

 Submission of BIR receipt for renewal of Tax

Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not allowed
under Section 34.2 of the IRR of RA 9184.

 Submission of Provisionary Tax Clearance issued by the

BIR for bidding purposes is not acceptable form of Tax
Clearance. (GPPB Resolution No. 01-2014)

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 STATEMENT OF ONGOING AND
COMPLETED CONTRACTS
 Statement of the prospective bidder 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. (Sec. 23.1(a)(iv), IRR of RA 9184)

 For the procurement of Goods, the statement identifying

the bidder’s single largest completed contract similar to
the contract to be bid, except under conditions provided
for in Section 23.5.1.3 Section 23.4.1.3 of this IRR, must be
within the relevant period as provided in the Bidding
Documents.
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 TECHNICAL ELIGIBILITY CRITERIA

 Previous contract

 Similar to the contract to be bid out (as defined by the

Bidding Documents)

 Completed within a period as defined by the Bidding

Documents

 25% of the ABC (expendable supplies)

 50% of the ABC (non-expendable supplies)

- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
Phil Stat Authority (PSA) consumer price index.
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 TECHNICAL ELIGIBILITY CRITERIA

GOODS – SINGLE LARGEST COMPLETED CONTRACT

General Rule Exceptions Then require the ff.:
1. Expendable Supplies If, at the outset and a) At least 2 similar
• 25% of the ABC after market research, contracts the
applying the general aggregate amount be
2. Services and Non- rule will likely result at least equivalent to
expendable supplies to: the required % of
• 50% of the ABC ABC; and
1. Failure of bidding;
or b) Largest of the similar
contracts be at least
2. Monopoly half of the % of ABC
as required above

37
 PCAB LICENSE

 A valid PCAB license issued by the DTI’s Construction

Industry Authority of the Phil (CIAP) as an eligibility
requirement for the procurement of infrastructure projects
should be valid at the time of the deadline for the
submission and opening of bids.

 The submission of a PCAB license with validity period after

the date of the opening of the bids is a ground for the
prospective bidder’s disqualification. (NPM 71-2013)

 As such, the submission of a PCAB License and Registration

cannot be dispensed within the procurement of infrastructure
projects. (NPM 126-2014)
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 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

COMPLETED CONTRACT

 Previous contract
 Similar to the contract to be bid, except under conditions
provided for in Sec. 23.5.1.3 Sec. 23.4.1.3 of the IRR
 50% of the ABC
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
 For foreign funded procurement, a different track record
may be agreed upon

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 FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE PROJECTS:

 Audited Financial Statement (showing prospective

bidder’s total and current assets and liabilities. )

 Net Financial Contracting Capacity (NFCC) at least

equal to ABC.

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 AUDITED FINANCIAL STATEMENTS (AFS)

 showing prospective bidder’s total and current assets

and liabilities for the preceding calendar year w/c
should not be earlier than 2 years from the date of bid
submission

 Stamped received by the BIR or its duly accredited and

authorized institutions

• “Annual” Financial Statements, Comparative Data,

Independent Auditor’s Reports of CPA

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 NET FINANCIAL CONTRACTING
CAPACITY (NFCC)

 For goods and infrastructure projects, the NFCC’s K factor

shall be fixed at 15, regardless of contract duration

 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 bidder’s 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.
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 NFCC COMPUTATION

Net Financial Contracting Capacity (NFCC) =

(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)

(K) = 10 (contract is 1 year or less)

15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)

The constant NFCC’s K factor is set at 15, regardless of

contract duration
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 COMMITTED LINE OF CREDIT

 In the case of procurement of Goods, a bidder may opt to

submit a committed Line of Credit (CLC) from a universal or
commercial bank, in lieu of its NFCC computation. (Sec. 23.1
(a) (viii), 2016 IRR of RA 9184)

 CLC does not apply to procurement of Infrastructure

Projects.

 If the bidder submits a CLC, it must be at least equal to ten

percent (10%) of the ABC to be bid: Provided, that if the same
is issued by a foreign Universal or Commercial Bank, it shall be
confirmed or authenticated by a local Universal or Commercial
Bank.
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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
R.A. 4566 and its IRR.
agreement
WITHOUT AN EXISTING JOINT *Submission of a duly
notarized statement is
VENTURE: submission by each of the not applicable.
potential JV members of a duly notarized
statement stating that they will enter into
and abide by the provisions of the joint
venture in case their bid is successful.
Failure to enter into a joint venture in the event
of a contract award shall be ground for the
forfeiture of the bid security. (Sec. 23.1(b),
2016 IRR of RA 9184)
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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

 All co-venturers shall submit their legal documents,

while any of the co-venturers shall submit technical and
financial documents.

 Each partner of the joint venture shall submit the PhilGEPS

Certificate of Registration in accordance with Sec. 8.5.2 of the
2016 IRR of RA 9184.

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 ELIGIBILITY REQUIREMENTS FOR
GOVT. CORPORATE ENTITIES

GOCCs may be eligible to participate only if they can

establish that they:

1. are legally and financially autonomous,

2. operate under commercial law, and
3. are not attached agencies of the procuring entity.
(Sec. 23.5, 2016 IRR of RA 9184)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
In the case of foreign bidders, appropriate equivalent
documents issued by the country of the foreign bidder
under Class “A” Documents shall be submitted, provided
that:
 The documents are in English, or
 If the documents submitted are in a foreign language
other than English, it must be accompanied by a
translation of documents in English by any of the
following:
a) relevant foreign government agency;
b) the foreign government agency authorized to
translate documents, or
c) a registered translator in the foreign bidder’s
country.
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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS

 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.

 Only upon actual determination and confirmation of this

equivalence through post qualification by the BAC may
it be categorically resolved that the foreign documents
submitted are acceptable substitutes of the required
eligibility documents pursuant to Section 23.2 of the IRR.
(NPM 42-2013)

52
 BID SECURITY

 Only 1 form of Bid Security is required to be submitted

 In general, bank issued securities must be issued by a

universal or commercial bank

 However, in biddings conducted by LGUs, securities

may be issued by banks certified by BSP as
authorized to issue said instruments
 Surety Bonds must be accompanied by certification
from Insurance Commission that issuer is authorized to
issue such security

 Bidders have the option to choose their preferred form of bid

security (Sec. 27.2, 2016 IRR of RA 9184)
54
 BID SECURITY

 Bid securities shall be returned only after the bidder

with the Lowest Calculated Responsive Bid has signed
the contract and furnished the performance security,
except to those declared by the BAC as failed or post-
disqualified in accordance with this IRR, upon
submission of a written waiver of their right to file a
request for reconsideration and/or protest.

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 BID SECURITY

Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check

b) Bank guarantee/draft or 2%
Irrevocable LC
c) Surety bond callable upon
5%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total
amount of security
d) Bid Securing Declaration No percentage required

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 BID SECURING DECLARATION

Bid Securing Declaration

 an additional form of bid security

 A document/undertaking signed by the bidder

committing to pay the corresponding fine and be
suspended for a period of time from being qualified
to participate in any government activity in the event
of violation of any of the conditions stated therein as
required by the GPPB Guidelines. (GPPB Resolution
No. 03-2012, 27 January 2012)

57
 BID SECURING DECLARATION

Conditions:
 The Bid Securing Declaration shall be enforced when the
bidder commits any act resulting to the forfeiture of bid
security under:

- Section 23.1(b) – failure to enter into a joint venture in the

event of contract award
- Section 34.2 – failure to submit post-qualification
requirements on time or a finding against the veracity of
such
- Section 40.1 – failure to enter into a contract with the PE
- Section 69.1 – administrative sanctions
(GPPB Resolution No. 15-2014, 20 June 2014)
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 BID VALIDITY PERIOD

 Bids and bid securities (including bid securing

declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid Docs.

 Not to exceed 120 cd

 If the period is extended, PE shall request in writing all

those who submitted bids for such extension before the
expiration date. However, bidders have a right to refuse
to grant such extension without forfeiting their bid
security.

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 OMNIBUS SWORN STATEMENTS

Notarized statement of bidder containing the following

information:
 Non-inclusion in the GPPB’s blacklist
 Authenticity of the documents submitted
 Verification authority
 Compliance with rules on disclosure of relations
 Responsibilities of the bidder
 Adherence to labor laws
 No form of bribery committed
 Signatory’s authority

60
 DISCLOSURE OF RELATIONS

Relatives within the third civil degree, by affinity or

consanguinity of the following shall be disqualified:

 Head of the procuring entity

 Members of the BAC, Secretariat and TWG
 Head of the end-user unit or project management
office or implementing unit
 Project consultants

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 VII. OPENING AND EVALUATION OF
2ND ENVELOPE
CONTENTS:

1. Financial Bid Form (includes bid prices and bill of

quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI if
claiming preference as Domestic Bidder (RA 10667)
3. Other documents required in the bidding
documents (brochures, pamphlets, or illustration of
samples of goods; or lists in relation to
specifications, drawings, site plans or bill of
quantities)
NOTE: Only the 2nd envelope of eligible bidders whose
1st envelope have been rated “passed” shall be opened.
62
 VIII. DETAILED EVALUATION
OF BIDS
 Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to
highest

 A non-discretionary criterion shall be used, which shall

include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections

63
 VIII. DETAILED EVALUATION
OF BIDS
 No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.

 The “no contact” rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination until the issuance of Notice of Award.

 No communication should be made by bidders until a decision

to award a contract is made by the BAC.

 Bidders who waived their right to utilize the protest mechanism

or those whose request for reconsideration and/or protest were
subsequently denied are not covered by the prohibition under
Sec. 32.1 of RA 9184 IRR. (NPM 07-2013)
64
 VIII. DETAILED EVALUATION
OF BIDS

 Bid Evaluation shall not be more than 7 days

 In case of discrepancies, the ff. shall prevail:

- words over figures
- unit prices over total prices
- actual sum of prices over total prices
- bill of quantities over detailed estimates

65
 VIII. DETAILED EVALUATION
OF BIDS

 Unless the ITB specifically allows partial bids, those not

providing all required items shall be considered non-
responsive

 Placing no price is considered as non-responsive

 Specifying a zero “0” or dash “-” means it is offered for

free, except those required by law or regulations to be
provided for

66
 VIII. DETAILED EVALUATION
OF BIDS

• Note: “0” zero or “-” bid, meaning that the bidder is

offering the govt for free the uniform allowance and/or
retirement benefits (mandatory PADPAO rates, labor
standards, and social legislation), shall be declared as
non-responsive for failure to comply with the PADPAO
rates (NPM 101-2014)

67
 DOMESTIC PREFERENCE

 Applicable only for GOODS

 Applies where the lowest bid has a foreign component
(foreign bidder/entity) and the next lowest bid has a
domestic component (domestic bidder/entity)
 Requires the Procuring Entity to give preference to
domestic bidder PROVIDED that:
1. The lowest foreign bid is increased by 15%;
2. If the bid of domestic bidder becomes equal or lower
than the bid of foreign bidder, award to domestic
bidder based on the original bid of foreign bidder or
to foreign bidder in case of refusal by domestic
bidder
68
 DOMESTIC PREFERENCE

 Requires the Procuring Entity to give preference to

domestic bidder PROVIDED that:
2. The domestic bidder is a Filipino citizen in case of sole
proprietorships as certified by DTI, or 75% owned by
Filipino citizens in case of corporations,
partnerships, and cooperatives as certified by SEC or
CDA, as the case may be
3. The business of domestic bidder has been in existence
already for 5 consecutive years
4. The goods offered by the domestic bidder was
produced, manufactured, or grown in the Phils as
certified by DTI

69
 IX. POST-QUALIFICATION

 To determine whether bidder with LCB complies with

and is responsive to all requirements and conditions of
eligibility and the bidding of the contract – to be
declared the Lowest Calculated and Responsive Bid
(LCRB)

 A non-discretionary pass/fail criterion shall be used to

“Verify, Validate and Ascertain” all statements and
documents (licenses, certificates, etc.)

70
 IX. POST-QUALIFICATION

 Completed in not more than 7 cd 12 cd, or up to 30 cd

45 cd in exceptional cases, upon approval of the HOPE.

 In case of post-disqualification of the LCB, the BAC shall be

given the same fresh period to conduct the post-
qualification of the next lowest calculated bid. (Sec. 34.8,
2016 IRR of RA 9184)

 BAC will notify the Bidder with the Lowest Calculated

Bid that it was determined as such. (Sec. 34.2, IRR of RA
9184)

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 IX. POST-QUALIFICATION

 Within 3 c.d (5 cd) from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration; and
3. Other appropriate Licenses and permits required by
law and stated in the Bidding Documents.

 Failure to submit any of the post-qualification requirements

on time, or a finding against the veracity thereof, shall
disqualify the bidder for award. Should there be a finding
against the veracity of any of the documents submitted, the
Bid Security shall be forfeited in accordance with Sec. 69 of
the 2016 IRR of RA 9184.
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 IX. POST-QUALIFICATION

1. Latest Income and Business Tax Returns

- Latest Annual ITR thru electronic filing payment
system (EFPS) filed w/ the RDO or govt bank
- Quarterly and Monthly VAT or percentage tax returns
covering the last 6 months thru EFPS

2. Other appropriate licenses and permits required by law,

and samples if required and stated in the bidding
documents
 Example: in the procurement of security services
requirements- PNP license to operate, PADPAO
clearance, NTC Certificate of Regn for its telecom eqpt,
and current and valid firearms license
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 IX. POST-QUALIFICATION

For Goods, the BAC shall check:

a) Delay in the partial delivery of goods amounting to ten percent
(10%) of the contract price in its ongoing government and private
contracts;
b) If any of these contracts shows the bidder’s failure to deliver or
perform any or all of the goods or services within the period(s)
specified in the contract or within any extension thereof granted by
the PE pursuant to a request made by the supplier prior to the
delay, and such failure amounts to at least ten percent (10%) of
the contract price; or
c) Unsatisfactory performance of the supplier’s obligations as per
contract terms and conditions at the time of inspection.

If the BAC verifies any of these deficiencies to be due to the bidder's fault or
negligence, the BAC shall disqualify the bidder from the award, for the
procurement of Goods. (Sec. 34.3(b), 2016 IRR of RA 9184)
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 IX. POST-QUALIFICATION
For Infrastructure Projects, BAC shall check:
a) Negative slippage of at least 15% in any one project or
a negative slippage of at least 10% in each of 2 or more
contracts;
b) Failure of the contractor to commence repair works on
ongoing contracts within 7 days and complete within
30 days from notice of defects and deficiencies
c) Failure of the contractor to commence repair works on
contracts with pending certificates of acceptance
withing 30 days and complete within 90 days from
notice of defects and failures
d) Substandard quality of work or unsatisfactory
performance at the time of inspection.
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 RECOMMENDATION OF AWARD

 The BAC shall recommend award of contract to the

LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price, whichever is
lower. Within 3 days from issuance of resolution, it shall
notify all other bidders in writing of its recommendation

 The HOPE has 7 cd 15 cd to decide whether or not to

approve or disapprove the recommendation. For GOCCs
and GFIs, the period provided shall be 15 cd.

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 FAILURE OF BIDDING

GROUNDS: NO BIDDER

1) submitted its bid

2) was declared eligible
3) was declared post qualified
4) accepted the award, entered into a contract, or
posted the required performance security.

(Sec. 35, IRR of RA 9184)

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 FAILURE OF BIDDING

EFFECTS:

1) Mandatory review shall be conducted by BAC

2) Based on findings, BAC shall:
 Revise terms, conditions, specifications
 Adjust ABC, subject to required approvals
3) Re-bidding
4) Re-advertisement

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 RESERVATION CLAUSE

 HOPE reserves the right to:

◦ Reject any and all bids;
◦ Declare a failure of bidding;
◦ Not award the contract.
(Sec. 41, IRR of RA 9184)

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 RESERVATION CLAUSE

 GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the
prescribed bidding procedures;
3. For justifiable reasons, the award of contract will not
redound to the benefit of the Government:
 Physical and economic conditions have significantly
changed;
 Project is no longer necessary
 Source of funds for the project has been
withdrawn/reduced.

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 X. AWARD OF CONTRACT

PROCUREMENT PROCESS
From Opening of Bids to Awarding of Contract
SHALL NOT EXCEED 3 MONTHS

In the case of Jacomille v. Abaya, et al., the petitioner contends that

the public respondents failed to comply with the periods provided
by law, specifically the 3-month period from the opening of the bids
up to the award of the contract under Section 38 of RA 9184. The
Supreme Court held that “[t]he different periods provided by RA
9184 within which certain stages of the procurement process must
be completed is not merely directory but mandatory.” Thus, it
concluded that such irregularity rendered the procurement process
null and void. (G.R. No. 212381, 22 April 2015)
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 X. AWARD OF CONTRACT

Notice of Award

 Contract shall be awarded to the bidder with the Lowest

Calculated and Responsive Bid (LCRB) at its submitted
price or total calculated bid price, whichever is lower

 In case of approval of the recommendation of the BAC,

the Notice of Award (NOA) shall be immediately issued
by HOPE to the LCRB.

 The BAC Sec shall post the NOA in the PhilGEPS and
PE’s websites, and in any conspicuous place within 3
cd from its issuance.

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 X. AWARD OF CONTRACT

 Award of contract is subject to the following conditions

within 10 cd from issuance of NOA:

- If joint venture, submission of JVA

- In the case of procurement by a Philippine Foreign Office
or Post, PhilGEPS Registration Number
- If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
- Posting of Performance Security
- Signing of Contract upon compliance with all
documentary requirements
- If required, approvals by higher authority
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 X. AWARD OF CONTRACT

 When required, the approving higher authority or his

duly authorized representative shall be given a
maximum of 15 cd 20 cd from receipt to approve or
disapprove the contract.

 In the case of GOCCs, the concerned board or its duly

authorized representative shall be given a maximum of
25 cd 30 cd from receipt to approve or disapprove the
contract.

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 X. AWARD OF CONTRACT

Detailed Engineering for the Procurement of

Infrastructure Projects

• In case of projects with pending acquisition of right-of-way

site or location, the procurement process may commence, but
no award of contract shall be made until an authority or
permit to enter is issued by the property owner; or a
notarized deed of sale or deed of donation is executed in
favor of the government; or a writ of possession is issued by
a court of competent jurisdiction, as the case may be.

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 X. AWARD OF CONTRACT

Contract Signing

 signed by the HOPE w/in the same 10 day period from

receipt of the NOA by the winning bidder, and after all
the documentary requirements are complied with.
 deemed approved if the HOPE failed to act on the
contract w/in the same period. (Sec. 38.3 of IRR)

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 PERFORMANCE SECURITY

 Posted by winning bidder upon signing of contract to

guarantee performance of obligation, in such form and
amount specified in the Bidding Documents.

EFFECTS OF FAILURE TO POST:

1. Ground for disqualification

2. Next-ranked LCB shall undertake post-qualification
3. Bid security shall be forfeited without prejudice to the
imposition of sanctions

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 PERFORMANCE SECURITY

Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashier’s/manager’s
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
30%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security

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 X. AWARD OF CONTRACT
Notice to Proceed
 The concerned PE shall issue the Notice to Proceed
(NTP) together with a copy or copies of the approved
contract to the successful bidder within 3 cd 7 cd from
the date of approval of the contract by the appropriate
government approving authority.
 All notices called for by the terms of the contract shall be
effective only at the time of receipt thereof by the successful
bidder.
 The BAC Sec shall post the NTP and the approved
contract in the PhilGEPS and PE’s websites within 15 cd
from the issuance of the NTP.
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 XI. CONTRACT IMPLEMENTATION

Retention Money

 For Goods, retention money is 10% at least 1% (Sec. 62,

2016 IRR of RA 9184)

 For Infrastructure Projects, retention money is 10%

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Award of Contract
ADVANCE PAYMENT

Infrastructure Goods Consulting

Projects Services

Letter of Credit Letter of Credit Letter of Credit

Bank Guarantee Bank Guarantee

Surety bond

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 LIQUIDATED DAMAGES

Once the cumulative amount of liquidated damages

reaches ten percent (10%) of the amount of the contract,
the PE shall may rescind or terminate the contract,
without prejudice to other courses of action and remedies
available under the circumstances.

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 THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

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