REVISED IMPLEMENTING RULES AND REGULATIONS OF R.A. 9184 processes prescribed under the Act and this IRR. Lease may also cover lease purchases or lease-to-own and similar variations. RULE XV — DISCLOSURE OF RELATIONS Section 47. Disclosure of Relations All bids shall be accompanied by a sworn affidavit of the bidder that itis not related to the Head of the Procuring Entity, members of the BAC, the TWG, and the BAC Secretariat, the head of the PMO or the end-user unit, and the project consultants, by consanguinity or affinity up to the third civil degree. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance with Section 30 of this IRR. For this reason, relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall automatically disqualify the bidder from participating in the procurement of contracts of the procuring entity. On the part of the bidder, this provision shall apply to the following persons: 2) Ifthe 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; ©) Ifthe bidder is a corporation, to all its officers, directors, and controlling stockholders; and d) _ If the bidder is a joint venture, the provisions of items (a), (b), or (c) of this Section shall correspondingly apply to each of the members of the said joint venture, as may be appropriate.» RULE XVI — ALTERNATIVE METHODS OF PROCUREMENT Section 48. Alternative Methods 48.1. Subject to the prior approval of the Head of the Procuring Entity, and whenever justified by the conditions provided in this Act, the procuring entity may, in order to promote economy and efficiency, resort to any of the alternative methods of procurement provided in this Rule. In all instances, the procuring entity shall ensure that the most advantageous price for the Government is obtained. 48.2, In accordance with Section 10 of this IRR, as a general rule, the Procuring Entities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding Alternative methods shall be resorted to only in the highly exceptional cases provided for in this Rule. 48.3. The method of procurement to be used shall be as indicated in the approved APP. If the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued, the BAC, through a resolution, shall justify and recommend the change in the mode of procurement to be approved by the Head of the procuring entity.)REVISED IMPLEMENTING RULES AND REGULATIONS OF R.A 9184 Section 49. Limited Source Bidding 49.1, 49.2. 49.3, 49.4 Section 50. Limited Source Bidding, otherwise known as selective bidding, is a method of ‘procurement of goods and consulting services that involves direct invitation to bid by the procuring entity from the list of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. This alternative method of procurement may be employed under any of the following conditions: a) Procurement of highly specialized types of goods (e.g., sophisticated defense equipment, complex air navigation systems, coal) and consulting services where only a few suppliers or consultants are known to be available, such that resorting to the public bidding method will not likely result in any additional suppliers or consultants participating in the bidding; or b) Procurement of major plant components where it is deemed advantageous to limit the bidding to known qualified bidders in order to maintain uniform quality and performance of the plant as a whole. 9 The pre-selected suppliers or consultants shall be those appearing in a list maintained by the relevant government authority that has expertise in the type of Procurement concerned. The list of pre-selected suppliers or consultants shall be Updated periodically. A copy of the list shall be submitted to, and maintained updated with, the GPPB. ‘The pre-selection shall be based upon the capability and resources of the bidders to Perform the contract taking into account their experience and past performance on similar contracts, capabilities with respect to personnel equipment or manufacturing facilities, and financial position. Pre-selection shall be done in accordance with the procedures provided in the GPMs, The BAC of the concerned procuring entity shall directly invite all the suppliers or consultants appearing in the pre-selected list. All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid/Request for Expression of Interest under Section 21.2.1 of this IRR. rect Contracting Direct Contracting or single source procurement is a method of procurement of goods that does not require elaborate Bidding Documents. The supplier is simply asked to submit a Price quotation or a pro-forma invoice together with the conditions of sale. The offer may be accepted immediately or after some negotiations. Direct contracting may be resorted to by concerned Procuring Entities under any of the following conditions: a) b) Procurement of goods of proprietary nature which can be obtained only from the Proprietary source, i.e. when patents, trade secrets, and copyrights prohibit others from manufacturing the same item; When the procurement of critical plant components from a specific supplier is a Condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract; or 38REVISED IMPLEMENTING RULES AND REGULATIONS OF R.A 9184 ° Those sold by an exclusive dealer or manufacturer which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the GOP. Section 51. Repeat Order ‘Repeat Order, when provided for in the APP, is a method of procurement of goods from the Previous winning bidder, whenever there is a need to replenish goods procured under a contract previously awarded through Competitive Bidding. Repeat orders shall likewise be subject to the following conditions: a) b) °) a) Unit prices of the repeat order must be the same as or lower than those in the original contract, provided that such prices are still the most advantageous to the GOP after price verification; The repeat order will not result in splitting of contracts, requisitions, or purchase orders, as provided for in Section 54.1 of this IRR; Except in cases duly approved by the GPPB, the repeat order shall be availed of only within six (6) months from the contract effectivity date stated in the Notice to Proceed arising from the original contract; and The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item in the original contract. Section 52. Shopping 92.1. 52.2. 52.3. Shopping is a method of procurement of goods whereby the procuring entity simply Tequests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. This method of procurement shall be employed in any of the following cases: a) When there is an_ unforeseen contingency requiring immediate purchase: Provided, however, That the amount shall not exceed the thresholds prescribed in Annex "H” of this IRR. b) Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding the thresholds prescribed in Annex "H” of this IRR.) The phrase “ordinary or regular office supplies” shall be understood to include those supplies, commodities, or materials which, depending on the procuring entity's mandate and nature of operations, are necessary in the transaction of its offical businesses, and consumed in the day-to-day operations of said procuring entity However, office supplies shall not include services such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services. Under Section 52.1 (b) of this IRR, at least three (3) price quotations from bona fide suppliers shall be obtained...) 39REVISED IMPLEMENTING RULES AND REGULATIONS OF R.A. 9184 ‘The thresholds prescribed in Annex "H" of this IRR shall be subject to a periodic review by the GPPB. For this purpose, the GPPB shall be authorized to increase or decrease the said amount in order to reflect changes in economic conditions and for other justifiable reasons.) Section 53. Negotiated Procurement Negotiated Procurement is a method of procurement of goods, infrastructure projects and consulting services, whereby the procuring entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant in any of the following cases: 53.4. Two Failed Biddings. \Where there has been failure of public bidding for t second time as provided in Section 35 of the Act and this IRR, 53.1.1. After conduct of the mandatory review of the terms, conditions, specifications, and cost estimates, as prescribed in Section 35 of this IRR, the BAC shall revise and agree on the minimum technical specifications, and if necessary, adjust the ‘ABC, subject to the required approvals. However, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding...) 53.1.2, The BAC shall invite and engage in negotiations with a sufficient number of suppliers, contractors or consultants to ensure effective competition.) 53.1.2.1. In the case of infrastructure projects, bona fide contractors licensed with the CIAP whose eligibility documents are on file with the procuring entity ‘concerned or the Department of Public Works and Highways (DPWH) Contractors’ Registry, as the case may be, and who have been classified under the type of contract/project where the subject contract falls are eligible to be invited for negotiation. Other contractors not previously deemed eligible may also apply for eligibility. 53.1.2.2. All Procuring Entities shall maintain a registry of suppliers, contractors, and consultants as basis for drawing up the short list and/or selecting the suppliers, contractors, and consultants for negotiations. 53.1.3. Any requirements, guidelines, documents, clarifications, or other information relative to the negotiations that are communicated by the procuring entity to a supplier, contractor, or consultant shall be communicated on an equal basis to all other suppliers, contractors, or consultants engaging in negotiations with the procuring entity relative to the procurement. 53.1.4, Following completion of the negotiations, the procuring entity shall request all suppliers, contractors, or consultants remaining in the proceedings to submit, on a specified date, a best and final offer with respect to all aspects of their Proposals. 53.1.5. The procuring entity shall select the successful offer on the basis of such best and final offers which should meet the procuring entity’s minimum technical requirements and should not exceed the ABC.) 60