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PHILIPPINE BIDDING DOCUMENTS

(As Harmonized with Development Partners)

Procurement of GOODS
Government of the Republic of the Philippines

Fourth Edition

December 2010

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). The procedures and practices presented in this document have been developed through broad experience, and are for mandatory 1 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 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 (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: (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 particular Project. 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. 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

(b)

(c)

1 Unless the Treaty or International or Executive Agreement expressly provides use of foreign government/foreign or international financing institution procurement guidelines. 3

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. For easy completion. they can be presented in the BDS. 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.Procuring Entity should strictly follow. General Conditions of Contract. in addition to date of issue. respectively. and Procuring Entity. (e) 4 . Instructions to Bidders and Section III. The Bidding Documents should contain no footnotes except Section VIII. If modifications must be made to bidding procedures. Contract. Modifications for specific Project or Contract details should be provided in the SCC as amendments to the Conditions of Contract.

...... SCHEDULE OF CONTRACT.........................6 TO SECTION II..... INVITATION TO BID............. BID DATA SHEET........70 SECTION VII...TABLE OF CONTENTS SECTION I..10 OF SECTION III....... GENERAL CONDITIONS SECTION V... TECHNICAL SPECIFICATIONS......74 SECTION IX............. SPECIAL CONDITIONS SECTION VI...... BIDDING FORMS... FOREIGN-ASSISTED PROJECTS.......................... INSTRUCTIONS BIDDERS...........................38 SECTION IV...71 SECTION VIII...................61 REQUIREMENTS.............................................44 OF CONTRACT.....................109 ..............

for a minimum period of seven (7) calendar days starting on the date of advertisement. The information contained in the Invitation to Bid must conform to the Bidding Documents and in particular to the relevant information in the BDS. (c) The deadline for the submission and receipt of bids from the last day of posting of the Invitation to Bid. For foreign-assisted projects. 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. (b) The place where the Bidding Documents may be purchased or the website where it may be downloaded.Section I.2. The Invitation to Bid shall be: (a) 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. 6 . Posted continuously in the Philippine Government Electronic Procurement System (PhilGEPS) website and the website of the Procuring Entity concerned. and (d) Any important bid evaluation criteria (e. the application of a margin of preference in bid evaluation). and (b) Posted at any conspicuous place reserved for this purpose in the premises of the Procuring Entity concerned for a minimum period of seven (7) calendar days. The Invitation to Bid should be incorporated into 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.. if available. as certified by the head of the Bids and Awards Committee (BAC) Secretariat of the Procuring Entity concerned. the Invitation to Bid to be used is provided in Section IXForeign-Assisted Projects.g. the Invitation to Bid should also indicate the following: (a) The date of availability of the Bidding Documents.2 of the IRR of RA 9184. subject to Sections 21. Apart from the essential items listed in the Bidding Documents.

In addition.5. in the case of (LGUs. 9184) 3 A brief description of the type(s) of Goods should be provided.5. of contract] .2 of the IRR of RA 9184 do not exist: Bidding is restricted to Filipino citizens/sole proprietorships. Bidders should have completed. within [insert relevant period] from the date of submission and receipt of bids. 2. and to citizens or organizations of a country the laws or regulations of which grant similar rights or privileges to Filipino citizens.5. Bidding will be conducted through open competitive bidding procedures using a nondiscretionary “pass/fail” criterion as specified in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184. whether local or foreign. Interested bidders may obtain further information from [insert name of the Procuring Entity] and inspect the Bidding Documents at the address given below during [insert office hours]. 4. the Budget for the contract approved by the respective Sanggunian. (Section 5(a). (c). pursuant to RA 5183 and subject to Commonwealth Act 138. and other information necessary to enable potential bidders to decide whether or not to respond to the invitation. and (d) under Section 23. TO BID FOR [Insert name of Project] The [insert name of Procuring Entity] . in the case of GOCCs. particularly. (c). select one of the two following paragraphs and delete the other depending on the existence of conditions under Section 23. or (d) under Section 23. 7 . The [insert name of Procuring Entity] now invites bids for [insert brief description of Goods to be procured] .2 of the IRR of RA 9184 exists: Bidding is open to all interested bidders. or organizations with at least sixty percent (60%) interest or outstanding capital stock belonging to citizens of the Philippines. a contract similar to the Project. (ii) Select this paragraph if condition (a). partnerships. Instructions to Bidders.A. the General Appropriations Act and/or continuing appropriations.3 Delivery of the Goods is required [insert the required delivery date or expected contract duration] . the Corporate Budget for the contract approved by the governing Boards.[Letterhead of the Procuring Entity] INVITATION 1. through the [insert source of funding and year] 2 intends to apply the sum of [insert the approved budget for the contract] being the Approved Budget for the Contract (ABC) to payments under the contract for [insert name/no.1. The description of an eligible bidder is contained in the Bidding Documents. subject to the conditions for eligibility provided in the IRR of RA 9184. otherwise known as the “Government Procurement Reform Act”.1. including quantities. 3. 2 In the case of National Government Agencies. R. in Section II.1. location of project. and SUCs. GFIs. Bids received in excess of the ABC shall be automatically rejected at bid opening.2 of the IRR of RA 9184: (i) Select this paragraph if conditions (a).

and to reject all bids at any time prior to contract award. Select one of the following two paragraphs. It may also be downloaded free of charge from the website of the Philippine Government Electronic Procurement System (PhilGEPS) and the website of the Procuring Entity. b) If the Procuring Entity intends to limit the Pre-Bid Conference to Bidders who have purchased the Bidding Documents: The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert time and date] at [insert address for Pre-Bid Conference. provided that Bidders shall pay the nonrefundable fee for the Bidding Documents not later than the submission of their bids. to annul the bidding process. if applicable]. without thereby incurring any liability to the affected bidder or bidders. 5. 7. Bid opening shall be on [insert time and date] at [insert address for bid opening] . which shall be open to all interested parties. please refer to: [Insert name of officer] [Insert name of office] [Insert postal address] and/or [Insert street address] 4 May be deleted in case the ABC is less than One Million Pesos (PhP1. Late bids shall not be accepted. 6.000) where the Procuring Entity may not hold a pre-bid conference. . [Insert such other necessary information deemed relevant by the PROCURING ENTITY] The [insert name of the Procuring Entity] reserves the right to accept or reject any bid.A complete set of Bidding Documents may be purchased by interested Bidders on [insert date of availability of Bidding Documents] from the address below and upon payment of a nonrefundable fee for the Bidding Documents in the amount of [insert amount in Pesos]. if applicable]. which shall be open only to all interested parties who have purchased the Bidding Documents. Bids will be opened in the presence of the Bidders’ representatives who choose to attend at the address below. 8 9. and delete the other: 4 a) If the Procuring Entity intends to open the Pre-Bid Conference to all interested Bidders: The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert time and date] at [insert address for Pre-Bid Conference. Bids must be delivered to the address below on or before [insert time and date]. 8. For further information. All Bids must be accompanied by a bid security in any of the acceptable forms and in the amount stated in ITB Clause 18.000.

if applicable] _________________________________ [Insert Name and Signature of the BAC Chairperson or the Authorized Representative of the BAC Chairperson] 9 . indicate city code] [Insert contact’s email address] [Insert facsimile number] [Insert website address.[Insert telephone number.

General Conditions of Contract. amend. rights. but rather under Section IV. payments. Special Conditions of Contract. 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. If duplication of a subject is inevitable in the other sections of the document prepared by the Procuring Entity. and award of contract. or those affecting the risks. evaluation. care must be exercised to avoid contradictions between clauses dealing with the same matter. opening. and/or Section V. Matters governing performance of the Bidder. information or requirements included in Section II which are specific to each procurement. 10 . and obligations of the parties under the contract are not normally included in this section.Section II. or specify in detail. Section III consists of provisions that supplement. Section II contains provisions that are to be used unchanged.

..................13 ..................1 Scope of Bid......31 ...........................................................................................................................16 ................24 Opening and Preliminary Examination of Bids ......18 Bid Security........................................................33 ....... Collusive.................31 ..............................................20 ...........................................................23 Modification and Withdrawal of Bids...........................................29 ...............................................................................................................................................................25 .........................................31 Contract Award...............................................................14 Alternative Bids.......................10 GENERAL................................................................... INVITATION TO BID.........................................................6 Bidder’s Responsibilities ....................29 .............................................27 ......5 Eligible Bidders.............................................................................................. Fraudulent...22 Late Bids.......... and Coercive Practices..........................9 Pre-Bid Conference.....17 Bid Validity..............19 .............................................................................................................................................................................................................................................................................................................24 ..................13 ........20 ...................................................................................................28 ...........................................................................31 .............................31 .....................34 AWARD OF CONTRACT..........................20 Sealing and Marking of Bids............................................................................20 PREPARATION OF BIDS................................13 Documents Comprising the Bid: Financial Component.......28 SUBMISSION AND OPENING OF BIDS.................................10 Clarification and Amendment of Bidding Documents..........................................................................................................................13 .....................12 Documents Comprising the Bid: Eligibility and Technical Components...............................26 Clarification of Bids ......................................................................................25 .....................................................................2 Source of Funds........................................19 CONTENTS OF BIDDING DOCUMENTS..................................25 Process to be Confidential .........................................19 .................................................................................................................................................................36 11 ...............................................22 .........................................................20 ....................................................27 Domestic Preference................4 Conflict of Interest.........TABLE OF CONTENTS SECTION I...6 TO SECTION II..........................................................................................................32 Signing of the Contract.....35 .....................................................................................................29 EVALUATION AND COMPARISON OF BIDS.................11 Language of Bid.................................................19 ..........................3 Corrupt.........28 Detailed Evaluation and Comparison of Bids...........15 Bid Prices...............................................................23 ..............................32 ....19 Format and Signing of Bids...28 ..............................17 ...................................29 Post-Qualification...........14 ..................7 Origin of Goods ...................................35 ........................................................................................... INSTRUCTIONS BIDDERS..............................................................................................21 Deadline for Submission of Bids.............................................................8 Subcontracts...............................................13 ..23 .....16 Bid Currencies..........................................................................................30 Reservation Clause......

............. Collusive..................................60 .......................................16 Warranty............................58 ....36 ......................................................56 .............................................................................................................................4 Notices...........53 ................................55 .......2 Inspection and Audit by the Funding Source..........................................................37 SECTION III.......................57 ...................................................................3 Governing Law and Language................................................... Fraudulent.....50 .........................................................................1 Definitions..................55 ..................6 Subcontracting....................................................22 Termination for Default..............................38 SECTION IV.........................................................70 SECTION VII...................13 Use of Contract Documents and Information............................................................... GENERAL CONDITIONS OF CONTRACT...............................................................................................................................34 Notice to Proceed................54 ............................................................144 12 ...........................58 .............................................................................................................................................................................................................................................51 .............................................................................................109 The ADB adopts the provisions of the Special Conditions of Contract of the GOP as contained in the Harmonized Philippine Bidding Documents dated ________.......................28 Contract Amendment..............................12 Performance Security......................................................................20 Liability of the Supplier..................................51 .........57 .10 Advance Payment and Terms of Payment......................48 ........ FOREIGN-ASSISTED PROJECTS....................5 Scope of Contract...........................................................................................29 Application......50 ..................................27 Assignment of Rights..........................................................................74 SECTION IX...71 SECTION VIII...........................................................51 ...........52 ....................................24 Termination for Convenience................................11 Taxes and Duties.........................18 Liquidated Damages............ and Coercive Practices.........51 ..........................................19 Settlement of Disputes........26 Procedures for Termination of Contracts............................................23 Termination for Insolvency.................... TECHNICAL SPECIFICATIONS.................. and Coercive Practices) which shall read as follows:.... Fraudulent.......................... SCHEDULE OF OF CONTRACT.....50 .................1 (Corrupt............................................................56 .................44 .............................25 Termination for Unlawful Acts...................60 SECTION V.................. BIDDING FORMS.1 Corrupt........21 Force Majeure.... BID DATA SHEET.....59 ............14 Standards....................................54 ..............53 .................................................................................................. except GCC Clause 2.60 .......................................................................................................................................8 Prices.................................................................................15 Inspection and Tests...............59 ............33 Performance Security.........................49 ...................................................................................................................52 .............................17 Delays in the Supplier’s Performance...............53 .......................................61 REQUIREMENTS....7 Procuring Entity’s Responsibilities...................................................................................................................................................................9 Payment................ SPECIAL CONDITIONS SECTION VI.......57 ................................................ Collusive..................................

3 Corrupt. and includes the offering. It intends to apply part of the funds received for the Project. Technical Specifications (hereinafter referred to as the “Goods”).2 Source of Funds The Procuring Entity has a budget or has applied for or received funds from the Funding Source named in the BDS. The name. into any contract or transaction manifestly and grossly disadvantageous to the same. ()ii 13 . or induce others to do so. to cover eligible payments under the contract. giving. others. and Coercive Practices 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. and similar acts as provided in RA 3019. Fraudulent. entering. whether or not the public officer profited or will profit thereby. and in the amount indicated in the BDS. . the Procuring Entity: ()a defines. for purposes of this provision. .1 Scope of Bid The procuring entity named in the BDS (hereinafter referred to as the “Procuring Entity”) wishes to receive bids for supply and delivery of the goods as described in Section VII. “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. 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. In pursuance of this policy. as defined in the BDS. by misusing the position in which they are placed. on behalf of the government. identification. The contracting strategy and basis of evaluation of lots is described in ITB Clause 28. receiving. and number of lots specific to this bidding are provided in the BDS.General . or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution. noncompetitive levels and to deprive the Procuring Entity of the benefits of free and open competition. Collusive.

directly or indirectly. “coercive practices” means harming or threatening to harm.()iii “collusive practices” means a scheme or arrangement between two or more Bidders. coercive or collusive practice. or 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. non-competitive levels. 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. without prejudice to the imposition of appropriate administrative. with or without the knowledge of the Procuring Entity. A Bidder may be considered to have conflicting interests with another Bidder in any of the 14 . ()iv ()v (bb) ()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. or their property to influence their participation in a procurement process. fraudulent. designed to establish bid prices at artificial. Further. administrative. and/or threatening. Furthermore. “obstructive practice” is (aa) deliberately destroying. . the Procuring Entity will seek to impose the maximum civil. persons. 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. and criminal sanctions. falsifying. 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 2. 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. civil. or affect the execution of a contract.4 Conflict of Interest All Bidders found to have conflicting interests shall be disqualified to participate in the procurement at hand.

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. members of the Bids and Awards Committee (BAC). to all its officers and members. by consanguinity or affinity up to the third civil degree. members of the Technical Working Group (TWG). On the part of the Bidder. This will include a firm or an organization who lends. A Bidder has a relationship. to the Bidder himself. However. as may be appropriate. or (c) of this Clause shall correspondingly apply to each of the members of the said JV. 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. ()g ()h In accordance with Section 47 of the IRR of RA 9184. (b). and If the Bidder is a joint venture (JV). If the Bidder is a partnership. directly or through third parties. or temporarily seconds. and controlling stockholders.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 (f) below: ()c ()d ()e ()f A Bidder has controlling shareholders in common with another Bidder. this does not limit the participation of subcontractors in more than one bid. A Bidder submits more than one bid in this bidding process. Relationship of the nature described above or failure to comply with this Clause will result in the automatic disqualification of a Bidder. or 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. this Clause shall apply to the following persons: ()i ()j ()k ()l If the Bidder is an individual or a sole proprietorship. members of the BAC Secretariat. 15 . A Bidder has the same legal representative as that of another Bidder for purposes of this bid. the head of the Project Management Office (PMO) or the end-user unit. A Bidder receives or has received any direct or indirect subsidy from any other Bidder. 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. to all its officers. the provisions of items (a). directors. and the project consultants. If the Bidder is a corporation.

When the Goods sought to be procured are not available from local suppliers. adjusted to current 16 . however. Corporations duly organized under the laws of the Philippines.e. corporations. persons/entities forming themselves into a JV. Citizens. Unless otherwise provided in the BDS.. ()s ()t ()u Government corporate entities may be eligible to participate only if they can establish that they (a) are legally and financially autonomous.. ()o ()p ()q Foreign bidders may be eligible to participate when any of the following circumstances exist. i. as specified in the BDS: ()r When a Treaty or International or Executive Agreement as provided in Section 4 of the RA 9184 and its IRR allow foreign bidders to participate. the Bidder must have completed at least one contract similar to the Project the value of which. Cooperatives duly organized under the laws of the Philippines. and (c) are not dependent agencies of the GOP or the Procuring Entity. 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. that Filipino ownership or interest of the joint venture concerned shall be at least sixty percent (60%). or associations of a country. and of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines. included in the list issued by the GPPB.5 Eligible Bidders Unless otherwise provided in the BDS. a group of two (2) or more persons/entities that intend to be jointly and severally responsible or liable for a particular contract: Provided. or When there is a need to prevent situations that defeat competition or restrain trade. corporations. or associations of the Philippines. and Unless otherwise provided in the BDS. and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines. (b) operate under commercial law. the laws or regulations of which grant reciprocal rights or privileges to citizens. the following persons shall be eligible to participate in this bidding: ()m ()n Duly licensed Filipino citizens/sole proprietorships.

prices using the National Statistics Office consumer price index. Bidding Forms as required in ITB Clause 12. must be at least equivalent to a percentage of the ABC stated in the BDS. The Bidder is responsible for the following: ()v ()w ()x ()y Having taken steps to carefully examine all of the Bidding Documents. affecting the implementation of the contract. . and completed within the relevant period stated in the Invitation to Bid and ITB Clause 12. If issued by a foreign bank. it shall be confirmed or authenticated by a Universal or Commercial Bank. and 20 for a contract duration of more than two years. including awarded contracts yet to be started coinciding with the contract for this Project. contracts similar to the Project shall be those described in the BDS. For this purpose. 15 for a contract duration of more than one year up to two years. Having complied with its responsibility to inquire or secure Supplemental/Bid Bulletin(s) as provided under ITB Clause 10. 17 . local or otherwise. In the case of local government units (LGUs). Having acknowledged all conditions. computed using the following formula. The CLC must be at least equal to ten percent (10%) of the ABC for this Project. The NFCC. The Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or a commitment from a Universal or Commercial Bank to extend a credit line in its favor if awarded the contract for this Project (CLC). if any. Having made an estimate of the facilities available and needed for the contract to be bid.6 Bidder’s Responsibilities The Bidder or its duly authorized representative shall submit a sworn statement in the form prescribed in Section VIII. the Bidder may also submit CLC from other banks certified by the Bangko Sentral ng Pilipinas (BSP) as authorized to issue such financial instrument. must be at least equal to the ABC to be bid: NFCC = [(Current assets minus current liabilities) (K)] minus the value of all outstanding or uncompleted portions of the projects under ongoing contracts. Where: K = 10 for a contract duration of one year or less.

the Bidder is deemed to have become familiar with all existing laws. forms. ()aa ()bb ()cc ()dd ()ee Failure to observe any of the above responsibilities shall be at the risk of the Bidder concerned. offices. 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. complete. Authorizing the Head of the Procuring Entity or its duly authorized representative/s to verify all the documents submitted. cooperative. and execution or implementation of this Project. execute and perform any and all acts necessary and/or to represent the Bidder in the bidding. or joint venture. and all statements and information provided therein are true and correct. Ensuring that the signatory is the duly authorized representative of the Bidder. decrees. in the case of procurement of services. duration. and the Procuring Entity will in no case be responsible or liable for those costs.()z Ensuring that it is not “blacklisted” or barred from bidding by the GOP or any of its agencies. The Bidder shall bear all costs associated with the preparation and submission of his bid. partnership. 18 . and (d) other factors that may affect the cost. if the Bidder is a corporation. Before submitting their bids. (b) climatic conditions. 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. acts and regulations of the Philippines which may affect this Project in any way. regardless of the conduct or outcome of the bidding process. or LGUs. corporations. ordinances. Complying with the disclosure provision under Section 47 of RA 9184 in relation to other provisions of RA 3019. and specifications in the Bidding Documents. with the duly notarized Secretary’s Certificate attesting to such fact. and granted full power and authority to do. Ensuring that each of the documents submitted in satisfaction of the bidding requirements is an authentic copy of the original. and Complying with existing labor laws and standards. including foreign government/foreign or international financing institution whose blacklisting rules have been recognized by the GPPB. including: (a) the location and the nature of this Project. The Bidder is expected to examine all instructions. terms. (c) transportation facilities.

or when international participation will be more advantageous to the GOP. the Bidder is expected to 19 . nature. the Bidder shall include the required documents as part of the technical component of its bid. 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. or complexity of the contract to be bid. the pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids. a longer period for the preparation of bids is necessary. (b) The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids. subcontracting of any portion shall not relieve the Bidder from any liability or obligation that may arise from the contract for this Project. . Bidders are encouraged to attend the pre-bid conference to ensure that they fully understand the Procuring Entity’s requirements.The Bidder should note that the Procuring Entity will accept bids only from those that have paid the nonrefundable fee for the Bidding Documents at the office indicated in the Invitation to Bid.1.4. . Subcontractors must comply with the eligibility criteria and the documentary requirements specified in the BDS.8 Subcontracts . Unless otherwise specified in the BDS. If the Bidder opts to disclose the name of the subcontractor during bid submission.3. 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. However. If the Procuring Entity determines that. to clarify and address the Bidders’ questions on the technical and financial components of this Project. . as specified in the BDS. by reason of the method.7 Origin of Goods Unless otherwise indicated in the BDS. the subcontracting of such portion of the Goods shall be disallowed. Contents of Bidding Documents . In the event that any subcontractor is found by the Procuring Entity to be ineligible.1. however.2. . subject to ITB Clause 27.9 Pre-Bid Conference (a) If so specified in the BDS. a pre-bid conference shall be held at the venue and on the date indicated therein.1. Non-attendance of the Bidder will in no way prejudice its bid. the Bidder may subcontract portions of the Goods to an extent as may be approved by the Procuring Entity and stated in the BDS.

12 Documents Comprising Components . shall be written in English. Supporting documents and printed literature furnished by the Bidder may be in another language provided they are accompanied by an accurate translation in English certified by the appropriate embassy or consulate in the Philippines. 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. ()a the Bid: Eligibility and Technical Unless otherwise indicated in the BDS.1. However.know the changes and/or amendments to the Bidding Documents discussed during the pre-bid conference. 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. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the Philippine Government Electronic Procurement System (PhilGEPS) and the website of the Procuring Entity concerned.11 Language of Bid The bid. Any modification to the Bidding Documents shall be identified as an amendment.10 Clarification and Amendment of Bidding Documents Bidders who have purchased the Bidding Documents may request for clarification on any part of the Bidding Documents for an interpretation. in which case the English translation shall govern for purposes of interpretation of the bid. if available. It shall be the responsibility of all Bidders who secure the Bidding Documents to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC. Any statement made at the pre-bid conference shall not modify the terms of the Bidding Documents unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/Bid Bulletin. . Preparation of Bids . . as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Procuring Entity.1. the first envelope shall contain the following eligibility and technical documents: Eligibility Documents – Class “A” Documents: 20 . Supplemental/Bid Bulletins may 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.

and (. Department of Trade and Industry (DTI) for sole proprietorship. NFCC computation or CLC in accordance with ITB Clause 5. the JVA in case the joint venture is already in existence.iii.3) kinds of Goods.iii.5) date of delivery.iii. ()b Technical Documents – ()i Bid security in accordance with ITB Clause 18.iii. for each contract. If the Bidder opts to submit the bid security in the form of: (. stamped “received” by the Bureau of Internal Revenue (BIR) or its duly accredited and authorized institutions.6) end user’s acceptance or official receipt(s) issued for the contract. or any proof of such registration as stated in the BDS. if any.()i Registration certificate from the Securities and Exchange Commission (SEC). the following: (. The statement shall include. ()ii ()iii ()iv Audited financial statements. (. it shall be accompanied by a confirmation from a Universal or Commercial Bank. or Cooperative Development Authority (CDA) for cooperatives.4) amount of contract and value of outstanding contracts. and ()v Class “B” Document: ()vi If applicable.i. (. for the preceding calendar year. Statement of all its ongoing and completed government and private contracts within the period stated in the BDS.iii. if completed. or 21 . including contracts awarded but not yet started. (.1) a bank draft/guarantee or an irrevocable letter of credit issued by a foreign bank. which should not be earlier than two (2) years from bid submission.iii. Mayor’s permit issued by the city or municipality where the principal place of business of the prospective bidder is located.2) date of the contract.1) name of the contract. (. or duly notarized statements from all the potential joint venture partners stating that they will enter into and abide by the provisions of the JVA in the instance that the bid is successful.

(iii) The procuring entity has trained cost estimators on estimating prices and analyzing bid variances. ()d ()e (a) Unless otherwise stated in the BDS. SEC.13 Documents Comprising the Bid: Financial Component Unless otherwise stated in the BDS. 22 . If payment of Bidding Documents is required by the procuring entity. in accordance with ITB Clauses 15 and 15. supervision and risk and inflationary factors. associated with the types of works or goods to be procured. a certification from the DTI. If the Bidder claims preference as a Domestic Bidder or Domestic Entity. for foreign-funded procurement. Bidding Forms. it shall be accompanied by a certification by the Insurance Commission that the surety or insurance company is authorized to issue such instruments. (b) Unless otherwise indicated in the BDS. ()ii Conformity with technical specifications. ()iii . unless otherwise provided in the BDS. payment could be made upon the submission of bids. or CDA issued in accordance with ITB Clause 27. all bids that exceed the ABC shall not be accepted.2(a)(iv) of the IRR of RA 9184 and using the form prescribed in Section VIII. which includes bid prices and the bill of quantities and the applicable Price Schedules. as well as prevailing market prices. and Sworn statement in accordance with Section 25. (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. the financial component of the bid shall contain the following: ()c Financial Bid Form. and Any other document related to the financial component of the bid as stated in the BDS.i.(. as enumerated and specified in Sections VI and VII of the Bidding Documents.2) a surety bond. 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.

15 Bid Prices The Bidder shall complete the appropriate Price Schedules included herein. Cost and Insurance Paid to (CIP). thus. Paris. Bill of Quantities. Prices indicated on the Price Schedule shall be entered separately in the following manner: ()f For Goods offered from within the Procuring Entity’s country: ()i The price of the Goods quoted EXW (ex works. but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Government. (v) The procuring entity has established a system to monitor and report bid prices relative to ABC and procuring entity’s estimate. In this regard. The Bidder shall fill in rates and prices for all items of the Goods described in the Bill of Quantities. or off-the-shelf. stating the unit prices. where applicable. . Cost. where a required item is provided. 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. Delivered Duty Paid (DDP). Insurance and Freight (CIF). .(iv) The procuring entity has established a system to monitor and report bid prices relative to ABC and engineer’s/procuring entity’s estimate. shall be considered non-responsive and. automatically disqualified. Bids not addressing or providing all of the required items in the Bidding Documents including. as applicable).14 Alternative Bids Alternative Bids shall be rejected. but no price is indicated. ex factory. total price per item. The terms Ex Works (EXW). 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. including all customs duties and sales and other taxes already paid or payable: 23 . ex showroom. the same shall be considered as non-responsive. 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. For this purpose. 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. ex warehouse. the total amount and the expected countries of origin of the Goods to be supplied under this Project.

Nevertheless. regulations. listed in the BDS. the Bidder shall be free to use transportation through carriers registered in any eligible country. a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis.i.1) on the components and raw material used in the manufacture or assembly of Goods quoted ex works or ex factory. Extraordinary circumstances refer to events that may be determined by the National Economic and Development Authority in accordance with the Civil Code of the Philippines. In quoting the price. listed in the BDS. A bid submitted with an adjustable price quotation shall be treated as nonresponsive and shall be rejected. if any. and upon the recommendation of the Procuring Entity. ex showroom. the Bidder may obtain insurance services from any eligible source country. or other acts of the GOP. the price of the Goods shall be quoted DDP with the place of destination in the Philippines as specified in the BDS. The price of other (incidental) services. the prices shall be quoted in Philippine Pesos. (. All bid prices shall be considered as fixed prices.16 Bid Currencies Prices shall be quoted in the following currencies: ()h For Goods that the Bidder will supply from within the Philippines. Similarly. if any. and other local costs incidental to delivery of the Goods to their final destination. 24 . The price of other (incidental) services. or off-the-shelf and any Procuring Entity country sales and other taxes which will be payable on the Goods if the contract is awarded.i.2) ()ii The price for inland transportation. insurance. promulgated after the date of bid opening. and therefore not subject to price escalation during contract implementation. in cases where the cost of the awarded contract is affected by any applicable new laws. ()ii 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. ()iii ()g For Goods offered from abroad: ()i Unless otherwise stated in the BDS. ordinances. pursuant to ITB Clause 24. or on the previously imported Goods of foreign origin quoted ex warehouse.(. except under extraordinary circumstances. .

the Procuring Entity may request Bidders to extend the period of validity of their bids.()i For Goods that the Bidder will supply from outside the Philippines. ()l Surety bond callable upon demand issued by a surety or Amount of Bid Security (Equal to Percentage of the ABC) Two percent (2%) Five percent (5%) 25 . payment of the contract price shall be made in Philippine Pesos. but his bid shall no longer be considered for further evaluation and award. that it shall be confirmed or authenticated by a Universal or Commercial Bank.17 Bid Validity 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.18 Bid Security The bid security in the amount stated in the BDS shall be equal to the percentage of the ABC in accordance with the following schedule: Form of Bid Security ()j Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank. . Unless otherwise specified in the BDS. In exceptional circumstances. the prices may be quoted in the currency(ies) stated in the BDS. however. If so allowed in accordance with ITB Clause 16. if issued by a foreign bank. The request and the responses shall be made in writing. A Bidder may refuse the request without forfeiting its bid security. 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. prior to the expiration of the Bid validity period. A Bidder granting the request shall not be required or permitted to modify its bid. 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 BSP reference rate bulletin on the day of the bid opening. However. ()k Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided. . The bid security described in ITB Clause 18 should also be extended corresponding to the extension of the bid validity period at the least.

Without prejudice on its forfeiture. 26 . Any bid not accompanied by an acceptable bid security shall be rejected by the Procuring Entity as non-responsive.insurance company duly certified by the Insurance Commission as authorized to issue such security. the Bidder may also submit bid securities in the form of cashier’s/manager’s check. submission of eligibility requirements information or falsified documents. Upon signing and execution of the contract pursuant to ITB Clause 32. ()mAny combination of the foregoing. does not accept the correction of errors pursuant to ITB Clause 28. or irrevocable letter of credit from other banks certified by the BSP as authorized to issue such financial statement. Proportionate to share of form with respect to total amount of security For biddings conducted by LGUs. and the posting of the performance security pursuant to ITB Clause 33. The bid security should be valid for the period specified in the BDS. but in no case later than the bid security validity period as indicated in the ITB Clause 18. fails to submit the requirements within the prescribed period or a finding against their veracity as stated in ITB Clause 29. bank draft/guarantee. upon submission of a written waiver of their right to file a motion for reconsideration and/or protest. but in no case later than the expiration of the bid security validity period indicated in ITB Clause 18. containing false submission of bids that contain false information or falsified documents. The bid security may be forfeited: ()n if a Bidder: ()i ()ii ()iii ()iv ()v withdraws its bid during the period of bid validity specified in ITB Clause 17. bid securities shall be returned only after the bidder with the Lowest Calculated and Responsive Bid has signed the contract and furnished the performance security. 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. the successful Bidder’s bid security will be discharged. except to those that failed or declared as postdisqualified. No bid securities shall be returned to bidders after the opening of bids and before contract signing.

submitting late Bids or patently insufficient bid. and no substitute form shall be accepted. or fails to furnish performance security in accordance with ITB Clause 33. The Bidder shall prepare and submit an original of the first and second envelopes as described in ITB Clauses 12 and 13. 27 . after the Bidder had been adjudged as having submitted the Lowest Calculated and Responsive Bid. and which shall be submitted simultaneously. or all other acts that tend to defeat the purpose of the competitive bidding. ()viii ()ix ()x ()xi ()xii ()o if the successful Bidder: ()i ()ii fails to sign the contract in accordance with ITB Clause 32.19 Format and Signing of Bids Bidders shall submit their bids through their duly authorized representative using the appropriate forms provided in Section VIII. 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. any documented attempt by a bidder to unduly influence the outcome of the bidding in his favor. Forms as mentioned in ITB Clause 19 must be completed without any alterations to their format. the original shall prevail. or enter into contract with the Government without justifiable cause. failure of the potential joint venture partners to enter into the joint venture after the bid is declared successful. The first shall contain the technical component of the bid. In the event of any discrepancy between the original and the copies. refusal or failure to post the required performance security within the prescribed time. except for valid reasons. .()vi ()vii allowing the use of one’s name. and the second shall contain the financial component of the bid. such as habitually withdrawing from bidding. or using the name of another for purposes of public bidding. including the eligibility requirements under ITB Clause 12. withdrawal of a bid. or refusal to accept an award. for at least three (3) times within a year. Bidding Forms on or before the deadline specified in the ITB Clauses 21 in two (2) separate sealed bid envelopes. All blank spaces shall be filled in with the information requested.

The original and the number of copies of the Bid as indicated in the BDS shall be typed or written in indelible ink and shall be signed by the bidder or its duly authorized representative/s. These envelopes containing the original and the copies shall then be enclosed in one single envelope. shall be signed. erasures. and the original of their financial component in another sealed envelope marked “ORIGINAL . except for unamended printed literature. and each and every page thereof shall be initialed. If bids are not sealed and marked as required. ___ . 28 . in accordance with ITB Clause 21.TECHNICAL COMPONENT” and “COPY NO. the Procuring Entity will assume no responsibility for the misplacement or premature opening of the bid. Submission and Opening of Bids . respectively. . sealing them all in an outer envelope marked “ORIGINAL BID”.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. All envelopes shall: ()p ()q ()r ()s ()t contain the name of the contract to be bid in capital letters. bear the specific identification of this bidding process indicated in the ITB Clause 1. by the duly authorized representative/s of the Bidder. Any interlineations.FINANCIAL COMPONENT”. be addressed to the Procuring Entity’s BAC in accordance with ITB Clause 1. and bear a warning “DO NOT OPEN BEFORE…” the date and time for the opening of bids. Each copy of the first and second envelopes shall be similarly sealed duly marking the inner envelopes as “COPY NO. ___ – FINANCIAL COMPONENT” and the outer envelope as “COPY NO.The bid. 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 Bidders shall enclose their original eligibility and technical documents described in ITB Clause 12 in one sealed envelope marked “ORIGINAL TECHNICAL COMPONENT”. bear the name and address of the Bidder in capital letters. ___”.

.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.

.23

Modification and Withdrawal of Bids
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, properly identified, linked to its original bid 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. 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. Bids requested to be withdrawn in accordance with ITB Clause 23 shall be returned unopened to the Bidders. A Bidder 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. 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, and the imposition of administrative, civil and criminal sanctions as prescribed by RA 9184 and its IRR.

.24

Opening and Preliminary Examination of Bids
The BAC shall open the first bid envelopes of Bidders in public as specified in the BDS to determine each Bidder’s compliance with the documents prescribed in ITB Clause 12. For this purpose, the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present, 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”. Unless otherwise specified in the BDS, immediately after determining compliance with the requirements in the first envelope, the BAC shall
29

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, 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. 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. If the withdrawing Bidder’s representative is in attendance, the original bid and all copies thereof shall be returned to the representative during the bid opening. If the representative is not in attendance, the bid shall be returned unopened by registered mail. The Bidder may withdraw its bid prior to the deadline for the submission and receipt of bids, provided that the corresponding Letter of Withdrawal contains a valid authorization requesting for such withdrawal, subject to appropriate administrative sanctions. If a Bidder has previously secured a certification from the Procuring Entity to the effect that it has previously submitted the above-enumerated Class “A” Documents, the said certification may be submitted in lieu of the requirements enumerated in ITB Clause 12, items (i) to (v). In the case of an eligible foreign Bidder as described in ITB Clause 5, the Class “A” Documents described in ITB Clause 12 may be substituted with the appropriate equivalent documents, if any, issued by the country of the foreign Bidder concerned. Each partner of a joint venture agreement shall likewise submit the requirements in ITB Clauses 12 and 12. Submission of documents required under ITB Clauses 12 to 12 by any of the joint venture partners constitutes compliance. A Bidder determined as “failed” has three (3) calendar days upon written notice or, if present at the time of bid opening, upon verbal notification, within which to file a request or motion for reconsideration with the BAC: Provided, however, that the motion for reconsideration shall not be granted if it is established that the finding of failure is due to the fault of the Bidder concerned: Provided, further, that the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. If a failed Bidder signifies his intent to file a motion for reconsideration, the BAC shall keep the bid envelopes of the said failed Bidder unopened and/or duly sealed until such time that the motion for reconsideration or protest has been resolved. 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

30

price, bid security, findings of preliminary examination; and (b) attendance sheet. The BAC members shall sign the abstract of bids as read.

Evaluation and Comparison of Bids .25 Process to be Confidential
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. 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
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: ()u The preference shall be applied when (i) the lowest Foreign Bid is lower than the lowest bid offered by a Domestic Bidder, or (ii) the lowest bid offered by a non-Philippine national is lower than the lowest bid offered by a Domestic Entity. For evaluation purposes, the lowest Foreign Bid or the bid offered by a non-Philippine national shall be increased by fifteen percent (15%). In the event that (i) the lowest bid offered by a Domestic Entity does not exceed the lowest Foreign Bid as increased, or (ii) the lowest bid offered by a non-Philippine national as increased, then the Procuring Entity shall award the contract to the Domestic Bidder/Entity at the amount of the lowest Foreign Bid or the bid offered by a nonPhilippine national, as the case may be. If the Domestic Entity/Bidder refuses to accept the award of contract at the amount of the Foreign Bid or bid offered by a non-Philippine national 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 or the non-Philippine national, as the case may be,
31

()v ()w

()x

materials. and (c) the business has been in existence for at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid for this Project.28 Detailed Evaluation and Comparison of Bids The Procuring Entity will undertake the detailed evaluation and comparison of bids which have passed the opening and preliminary examination of bids. or manufactured articles. cooperative. SEC (in case of partnerships and corporations). production. materials. and The ranking of the total bid prices as so calculated from the lowest to the highest. bill of quantities. The Lowest Calculated Bid shall be determined in two steps: ()y ()z The detailed evaluation of the financial component of the bids. but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Procuring Entity. (b) habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by his bid. A Bidder may be granted preference as a Domestic Bidder subject to the certification from the DTI that the Bidder is offering unmanufactured articles.subject to post-qualification and submission of all the documentary requirements under these Bidding Documents. or CDA (in case of cooperatives) that the (a) sole proprietor is a citizen of the Philippines or the partnership. where a required item is provided. the BAC shall consider the following in the evaluation of bids: ()aa Completeness of the bid. The bid with the lowest price shall be identified as the Lowest Calculated Bid. materials or supplies of the growth or production of the Philippines. pursuant to ITB Clause 24. In this regard. of the Philippines. bids not addressing or providing all of the required items in the Schedule of Requirements including. where applicable. and 32 .” using non-discretionary pass/fail criteria. in order to determine the Lowest Calculated Bid. or association is duly organized under the laws of the Philippines with at least seventy five percent (75%) of its interest or outstanding capital stock belonging to citizens of the Philippines. shall be considered non-responsive and. The Procuring Entity's BAC shall immediately conduct a detailed evaluation of all bids rated “passed. or supplies manufactured or to be manufactured in the Philippines substantially from articles. but no price is indicated. A Bidder may be granted preference as a Domestic Entity subject to the certification from the DTI (in case of sole proprietorships). to establish the correct calculated prices of the bids. or supplies of the growth. corporation. . Unless otherwise specified in the BDS. the same shall be considered as non-responsive. Unless the ITB specifically allows partial bids. or manufacture. as the case may be. automatically disqualified. thus.

Such bids. Failure of the Bidder declared as Lowest Calculated Bid to duly submit the requirements under this Clause or a finding against the veracity of such shall be ground for forfeiture of the bid security and disqualification of the Bidder for award. Series of 2005. Any adjustment shall be calculated in monetary terms to determine the calculated prices. all bidders shall be required to include in their bids the cost of all taxes. value added tax (VAT). Based on the detailed evaluation of bids. . Bids shall be evaluated on an equal footing to ensure fair competition.29 Post-Qualification The Procuring Entity shall determine to its satisfaction whether the Bidder that is evaluated as having submitted the Lowest Calculated Bid (LCB) complies with and is responsive to all the requirements and conditions specified in ITB Clauses 5. the Bidder shall submit the following documentary requirements: ()cc ()dd ()ee ()ff Tax clearance per Executive Order 398. and other fiscal levies and duties which shall be itemized in the bid form and reflected in the detailed estimates. and 13. as evaluated and corrected for computational errors. Consider computational errors and omissions to enable proper comparison of all eligible bids. to identify the Lowest Calculated Bid. as evaluated and corrected for computational errors. Certificate of PhilGEPS Registration. 12. local taxes. It may also consider bid modifications. shall be the basis for bid evaluation and comparison. For this purpose. but not limited to. unless otherwise indicated in the BDS. such as. including said taxes. Within a non-extendible period of three (3) calendar days from receipt by the bidder of the notice from the BAC that it submitted the LCB. Latest income and business tax returns in the form specified in the BDS. and Other appropriate licenses and permits required by law and stated in the BDS. discounts and other modifications.()bb Arithmetical corrections. which exceed the ABC shall not be considered. if allowed in the BDS. income tax. The determination shall be based upon an examination of the documentary evidence of the Bidder’s qualifications submitted pursuant to ITB Clauses 12 33 . Total calculated bid prices. The Procuring Entity’s evaluation of bids shall only be based on the bid price quoted in the Financial Bid Form. discounts and other modifications. those that comply with the abovementioned requirements shall be ranked in the ascending order of their total calculated bid prices.

using a non-discretionary “pass/fail” criterion. it shall declare the said bid as the Lowest Calculated Responsive Bid. suppresses or nullifies or tends to restrict. and make no assurance that a contract shall be entered into as a result of the bidding: ()gg If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity. in which event the Procuring Entity shall proceed to the next Lowest Calculated Bid to make a similar determination of that Bidder’s capabilities to perform satisfactorily. 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. If the second Bidder. the period provided herein shall be fifteen (15) calendar days. the Procuring Entity reserves the right to reject any and all bids. or between a Bidder and a third party. 34 . the procedure for post qualification shall be repeated for the Bidder with the next Lowest Calculated Bid. Should such review uncover any misrepresentation made in the eligibility and bidding requirements. A negative determination shall result in rejection of the Bidder’s Bid. or between the BAC and any of the Bidders. statements or documents. suppress or nullify competition. including any act which restricts. and so on until the Lowest Calculated Responsive Bid is determined for contract award. Within a period not exceeding seven (7) calendar days from the date of receipt of the recommendation of the BAC.30 Reservation Clause Notwithstanding the eligibility or post-qualification of a Bidder. declare a failure of bidding at any time prior to the contract award. or not to award the contract. whichever is lower. In the case of GOCCs and GFIs. the Head of the Procuring Entity shall approve or disapprove the said recommendation. 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.and 13. 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. If the BAC determines that the Bidder with the Lowest Calculated Bid passes all the criteria for post-qualification. without thereby incurring any liability. as well as other information as the Procuring Entity deems necessary and appropriate. or that there has been a change in the Bidder’s capability to undertake the project from the time it submitted its eligibility requirements. or if the collusion is between or among the bidders themselves. . fails the post qualification. however. Based on the following grounds. and recommend to the Head of the Procuring Entity the award of contract to the said Bidder at its submitted price or its calculated bid price.

Prior to the expiration of the period of bid validity.()hh ()ii If the Procuring Entity’s BAC is found to have failed in following the prescribed bidding procedures. without justifiable cause to accept the award of contract. the Procuring Entity shall notify the successful Bidder in writing that its bid has been accepted. award of contract shall be subject to the following conditions: ()nn Submission of the valid JVA. the Procuring Entity may likewise declare a failure of bidding when: ()jj ()kk ()ll No bids are received. All bids fail to comply with all the bid requirements or fail postqualification. 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. or ()mm The Bidder with the Lowest Calculated Responsive Bid (LCRB) refuses. or 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. through a Notice of Award received personally or sent by registered mail or electronically. Award of Contract . If the project is no longer necessary as determined by the head of the procuring entity. ()ii ()iii In addition. financially or technically feasible as determined by the head of the procuring entity.31 Contract Award Subject to ITB Clause 29. the Procuring Entity shall award the contract to the Bidder whose bid has been determined to be the LCRB. All prospective Bidders are declared ineligible. Notwithstanding the issuance of the Notice of Award. 35 . and no award is made. within ten (10) calendar days from receipt by the Bidder of the notice from the BAC that the Bidder has the LCRB. and If the source of funds for the project has been withheld or reduced through no fault of the Procuring Entity. if applicable.

33 Performance Security 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. the Procuring Entity shall not increase or decrease the quantity of goods originally specified in Section VI. and ()xx Other contract documents that may be required by existing laws and/or specified in the BDS.32 Signing of the Contract At the same time as the Procuring Entity notifies the successful Bidder that its bid has been accepted. the successful Bidder shall post the required performance security and sign and date the contract and return it to the Procuring Entity. 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. ()ww Notice of Award of Contract.()oo ()pp ()qq Posting of the performance security in accordance with ITB Clause 33. Performance Security. Bidding Documents. Schedule of Requirements. At the time of contract award. including the Technical and Financial Proposals. the Procuring Entity shall send the Contract Form to the Bidder. The following documents shall form part of the contract: ()rr ()ss ()tt ()uu ()vv Contract Agreement. incorporating therein all agreements between the parties. . Signing of the contract as provided in ITB Clause 32. and all other documents/statements submitted. and Approval by higher authority. if applicable. 36 . Winning bidder’s bid. if required. which contract has been provided in the Bidding Documents. Credit line in accordance with ITB Clause 5. Within ten (10) calendar days from receipt of the Notice of Award.

()zz Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided.34 Notice to Proceed Within three (3) calendar days from the date of approval of the contract by the appropriate government approving authority. 37 . in which event the Procuring Entity shall initiate and complete the post qualification of the second Lowest Calculated Bid. However if no Bidder passed post-qualification. . Amount of Performance Security (Equal to Percentage of the Total Contract Price) Five percent (5%) Thirty percent (30%) Proportionate to share of form with respect to total amount of security 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. The contract effectivity date shall be provided in the Notice to Proceed by the Procuring Entity. the Procuring Entity shall issue its Notice to Proceed to the Bidder. the BAC shall declare the bidding a failure and conduct a re-bidding with readvertisement. however.The performance security shall be denominated in Philippine Pesos and posted in favor of the Procuring Entity in an amount equal to the percentage of the total contract price in accordance with the following schedule: Form of Performance Security ()yy Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank. which date shall not be later than seven (7) calendar days from the issuance of the Notice to Proceed. The procedure shall be repeated until the LCRB is identified and selected for contract award. if issued by a foreign bank. and/or ()bbb Any combination of the foregoing. that it shall be confirmed or authenticated by a Universal or Commercial Bank. ()aaa Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.

the following aspects should be checked: (a) (b) Information that specifies and complements provisions of Section II must be incorporated. if any. to provisions of Section II as necessitated by the circumstances of the specific procurement. and has to be prepared for each specific procurement. the processing of the procurement. 38 . must also be incorporated. The Procuring Entity should specify in the BDS information and requirements specific to the circumstances of the Procuring Entity. Amendments and/or supplements. and the bid evaluation criteria that will apply to the bids. In preparing 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. the applicable rules regarding bid price and currency.Section III.

in the case of Local Government Units. the Budget for the contract approved by the respective Sanggunian. Foreign bidders. delete the other. the General Appropriations Act and/or continuing appropriations. None of the circumstances mentioned in the ITB Clause exists in this Project. NOTE: In the case of National Government Agencies. 39 . delete the other. or “Not applicable”] 3 5 5 No further instructions. equivalent to at least fifty percent (50%) of the ABC. Select one. The name of the Project is: [Insert the name of the project. may not participate in this Project. No further instructions. Or Foreign bidders may participate in this Project in view of the following circumstance(s): [State which of the circumstance(s) mentioned in the ITB Clause exists in the Project.Bid Data Sheet ITB Clause 1 1 The Procuring Entity is [insert name of purchasing organization] The lot(s) and reference is/are: [insert name] 2 The Funding Source is: The Government of the Philippines (GOP) through [indicate source of funding and year] in the amount of [insert amount of funds]. and State Universities and Colleges. the Corporate Budget for the contract approved by the governing Boards. a single contract that is similar to this Project. except those falling under ITB Clause 5.] 5 Select one. Maintain the ITB Clause and insert any of the following: 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. Government Financial Institutions. in the case of Government-Owned and/or –Controlled Corporations.

If subcontracting is allowed.” or specify the portions of Goods and the maximum percentage allowed to be subcontracted. the Bidder should comply with the following requirements: )a Completed at least two (2) similar contracts.3 of the IRR of RA 9184 will likely result to [State “failure of bidding” or “monopoly that will defeat the purpose of public bidding”]. including the corresponding documentary requirements therefor.3 of the IRR of RA 9184 will likely result to failure of bidding or monopoly that will defeat the purpose of public bidding: In view of the determination by the Procuring Entity that imposition of the provisions of Section 23. ADB Bid Data Sheet 9. The Procuring Entity will hold a pre-bid conference for this Project on [State date and time] at [State address of venue].1.Or For the procurement of Expendable Supplies: The Bidder must have completed. state “Not applicable”. after the conduct of market research. 7 8 8 No further instructions. and The largest of these similar contracts must be equivalent to at least half of the percentage of the ABC as required above. State either “Subcontracting is not allowed. within the period specified in the Invitation to Bid and ITB Clause 12.5. World Bank Bid Data Sheet 9.5. Or For procurement where the Procuring Entity has determined. equivalent to at least twenty-five percent (25%) of the ABC. Foreign-Assisted Projects. a single contract that is similar to this Project. the aggregate amount of which should be equivalent to at least [State “fifty percent (50%)” in the case of Non-expendable Supplies and Services or “twenty-five percent (25%)” in the case of Expendable Supplies] of the ABC for this Project. adopt the provision under Section IX. If World Bank. Foreign-Assisted Projects.1. otherwise. specify the eligibility criteria that subcontractors must comply with. adopt the provision under Section IX. 10 The Procuring Entity’s address is: [Insert full address] 9 40 . )b For this purpose.1. similar contracts shall refer to [insert description of similar contracts or state “No further instructions”]. that imposition of the provisions of Section 23. If ADB.1.

15 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.” The statement of all ongoing and completed government and private contracts shall include all such contracts within [state relevant period as provided in the Invitation to Bid] prior to the deadline for the submission and receipt of bids. Foreign-Assisted Projects. If ADB. Foreign-Assisted Projects. If World Bank. adopt the provision under Section IX. Any bid with a financial component exceeding this amount shall not be accepted.1(a)(i) 12 No further instructions. ADB Bid Data Sheet 13. If none. List any additional requirements or state “No additional requirements. state “No incidental services are required. World Bank Bid Data Sheet 13. If none. 13 13 13 41 . or the applicable INCOTERMS for this Project. state “No incidental services are required. “The price of the Goods shall be quoted DDP [state place of destination] ”.” No further instructions. The ABC cannot be used to reject bids without the prior concurrence of ADB.2. List any additional acceptable proof of registration mentioned in the ITB Clause or state “No other acceptable proof of registration is recognized.[Insert name and designation of Contact person] [Insert telephone and fax number of Contact] [Insert email address of contact (if applicable)] 12(a) 12. delete the other: The Bid prices for Goods supplied from outside of the Philippines shall be quoted in Philippine Pesos.” 16 Select one.” 15 Maintain the ITB Clause and state here “Not applicable”. adopt the provision under Section IX. The ABC is [insert amount] . 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.2.

16. The deadline for submission of bids is [insert time and date]. adopt the following provision: Grouping and Evaluation of Lots – Lots should be formed of similar items that are likely to attract the maximum competition. The bid security shall be in the following amount: 1. Any combination of the foregoing proportionate to the share of form with respect to total amount of security. state "Payment shall be made in [insert currency]. The amount of __________ [Insert 2% of ABC]. The date and time of bid opening is [insert time and date]. If applicable.2 27 28 No further instructions. 24 The place of bid opening is [insert address]. or 3. The address for submission of bids is [insert address]. Each Bidder shall submit [insert required number] original and [insert required number] copies of the first and second components of its bid. For example: Option 1 – Each item to be evaluated and compared with other Bids separately and recommended for contract award separately. cashier’s/manager’s check.Or The Bid prices for Goods supplied from outside of the Philippines shall be quoted either in Philippine Pesos or United States Dollars at the discretion of the Bidder. A lot is the quantity and number of items that will be included in a single contract. 2. No further instructions. if bid security is in cash. 24. 17 18 42 . Bids will be valid until [insert date].3 Maintain the ITB Clause and state here “Not applicable” or if procurement involves a foreign-denominated bid. bank draft/guarantee or irrevocable letter of credit. 18 20 21 The bid security shall be valid until [insert date]. The amount of _________ [Insert 5% of ABC] if bid security is in Surety Bond.

2(a) 29 State whether bid modification is allowed or not. and contract award. Specify whether Bidders have option to submit manually filed tax returns or tax returns filed through the Electronic Filing and Payments System (EFPS). Lots shall not be divided further into sub-lots for the purpose of bidding.Similar items. 29 32 List licenses and permits relevant to the Project and the corresponding law requiring it. Option 3 . Bidders shall have the option of submitting a proposal on any or all lots and evaluation and contract award will be undertaken on a per lot basis. Select one of the following paragraphs and delete the other: The goods are grouped in a single lot and the lot shall not be divided into sub-lots for the purpose of bidding. evaluation. List additional contract documents relevant to the Project that may be required by existing laws and/or the Procuring Entity. to be grouped together to form several lots that shall be evaluated and awarded as separate contracts. No further instructions. evaluation. No further instructions. 43 . [Insert grouping of lots] 28 28 29. and contract award. NOTE: The latest income and business tax returns are those within the last six months preceding the date of bid submission. Or All Goods are grouped in lots listed below.Option 2 .All items to be grouped together to form one complete Lot that will be awarded to one Bidder to form one complete contract.

read in conjunction with the SCC in Section V and other documents listed therein.Section IV. should be a complete document expressing all the rights and obligations of the parties. shall be introduced only through the SCC in Section V. General Conditions of Contract Notes on the General Conditions of Contract The GCC in Section IV. which may be needed. Any changes and complementary information. The GCC herein shall not be altered. 44 .

...................................................................................22 ...................................................... ...19FORMAT .....19 ..............................14ALTERNATIVE BIDS.........25 ..............4CONFLICT OF INTEREST..27 BIDS...28 OF ..12DOCUMENTS COMPRISING THE BID: ELIGIBILITY AND TECHNICAL COMPONENTS...................20 ............................................................8SUBCONTRACTS................................................20 BID......31 BIDS .....2SOURCE OF .......3CORRUPT.....20SEALING AND AND SIGNING OF BIDS......10CLARIFICATION .......25 ........................................17BID VALIDITY.......13 .........29 TO BE CONFIDENTIAL .....................TABLE OF CONTENTS .......................13 FUNDS...............28 OF MARKING OF .................................23 ....................19 .........7ORIGIN OF GOODS ..................20 .......25PROCESS AND WITHDRAWAL BIDS........ COLLUSIVE..................... .......11LANGUAGE OF AND AMENDMENT OF BIDDING DOCUMENTS.........29 OF PRELIMINARY EXAMINATION OF BIDS .............23 .16BID CURRENCIES...27DOMESTIC PREFERENCE......................19 ..............21DEADLINE FOR SUBMISSION AND BIDS..........................31 ..18BID SECURITY............................................13DOCUMENTS COMPRISING THE BID: FINANCIAL COMPONENT......31 45 .24 ..........15BID PRICES........................................................ AND COERCIVE PRACTICES ..........................5ELIGIBLE BIDDERS............17 ...........................................................16 ................. FRAUDULENT.......29 .......13 ......................6BIDDER’S RESPONSIBILITIES ..........23MODIFICATION .......................14 ...................................................22LATE BIDS................9PRE-BID CONFERENCE...26CLARIFICATION ..................24OPENING .1SCOPE OF BID...............

.................33PERFORMANCE SECURITY..............................32SIGNING .1DEFINITIONS.............56 .................50 CONTRACT.......................................................13USE AND AND TERMS OF PAYMENT.............30RESERVATION CLAUSE...........53 ................5SCOPE OF LANGUAGE............35 ......................57 ..................................52 DUTIES.......................................18LIQUIDATED DAMAGES...............29POST-QUALIFICATION...........8PRICES.....37 .....51 ...................................36 TO PROCEED.............11TAXES ..50 ...............9PAYMENT.........................28DETAILED EVALUATION AND COMPARISON OF BIDS.................14STANDARDS.......... COLLUSIVE.........................................................................50 .....17DELAYS TESTS................................36 ...............54 .......................51 .....21FORCE MAJEURE..51 ......................................................................................51 ......................................................................................33 ...31CONTRACT AWARD.........3GOVERNING LAW .....57 .......1CORRUPT..........6SUBCONTRACTING.............................................19SETTLEMENT .....49 ......22TERMINATION FOR 46 ................10ADVANCE PAYMENT .15INSPECTION ..................55 IN THE SUPPLIER’S PERFORMANCE.............12PERFORMANCE SECURITY.............................................. FRAUDULENT.......34 .....16WARRANTY....32 .2INSPECTION AND AUDIT AND BY THE FUNDING SOURCE..........53 OF CONTRACT DOCUMENTS AND INFORMATION.........................................34NOTICE OF THE CONTRACT...........................................57 DEFAULT....................................56 SUPPLIER.55 DISPUTES...52 .....53 AND ................... AND COERCIVE PRACTICES .................20LIABILITY OF OF THE ............48 ..............54 ............................7PROCURING ENTITY’S RESPONSIBILITIES..................4NOTICES.............................

............................. EXCEPT GCC CLAUSE 2....27ASSIGNMENT FOR FOR FOR FOR OF INSOLVENCY....... .................60 ..25TERMINATION ......................26PROCEDURES ..58 CONVENIENCE....... AND COERCIVE PRACTICES) WHICH SHALL READ AS FOLLOWS:............59 TERMINATION OF CONTRACTS..24TERMINATION ... ..................................144 47 ...........23TERMINATION ..................29APPLICATION....28CONTRACT AMENDMENT...........60 ...............1 (CORRUPT............60 THE ADB ADOPTS THE PROVISIONS OF THE SPECIAL CONDITIONS OF CONTRACT OF THE GOP AS CONTAINED IN THE HARMONIZED PHILIPPINE BIDDING DOCUMENTS DATED ________..... COLLUSIVE. FRAUDULENT.........58 UNLAWFUL ACTS.........59 RIGHTS..................

spare parts. other materials and/or general support services which the Supplier is required to provide to the Procuring Entity under the Contract.. ()kkk “The Supplier” means the individual contractor. including all attachments and appendices thereto and all documents incorporated by reference therein. Performance of all obligations shall be reckoned from the Effective Date of the Contract. manufacturer distributor. as named in the SCC. ()ddd “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations. “The Procuring Entity’s country” is the Philippines. ()eee “The Goods” means all of the supplies. ()fff ()ggg “GCC” means the General Conditions of Contract contained in this Section. commissioning. means the place or places named in the SCC. such as installation. and any other incidental services. “The Services” means those services ancillary to the supply of the Goods. ()hhh “SCC” means the Special Conditions of Contract. ()lll ()mmm The “Funding Source” means the organization named in the SCC. and other such obligations of the Supplier covered under the Contract. ()nnn “Day” means calendar day. ()iii ()jjj “The Procuring Entity” means the organization purchasing the Goods. “The Project Site. machinery. as recorded in the Contract Form signed by the parties. or firm supplying/manufacturing the Goods and Services under this Contract and named in the SCC. ()ooo The “Effective Date” of the contract will be the date of receipt by the Supplier of the Notice to Proceed or the date provided in the Notice to Proceed. training. 48 . provision of technical assistance.” where applicable. equipment. such as transportation and insurance. the following terms shall be interpreted as indicated: ()ccc “The Contract” means the agreement entered into between the Procuring Entity and the Supplier.1 Definitions In this Contract.

.1 Corrupt. persons. or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution. whether or not the public officer profited or will profit thereby. entering. Collusive. with or without the knowledge of the Procuring Entity. directly or indirectly.()ppp “Verified Report” refers to the report submitted by the Implementing Unit to the Head of the Procuring Entity 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. “coercive practices” means harming or threatening to harm. noncompetitive levels and to deprive the Procuring Entity of the benefits of free and open competition. for the purposes of this provision. Fraudulent. and similar acts as provided in Republic Act 3019. contractors. “collusive practices” means a scheme or arrangement between two or more Bidders. giving. non-competitive levels. In pursuance of this policy. or suppliers shall observe the highest standard of ethics during the procurement and execution of this Contract. and it includes the offering. falsifying. and includes collusive practices among Bidders (prior to or after bid submission) designed to establish bid prices at artificial. designed to establish bid prices at artificial. or their property to influence their participation in a procurement process. or induce others to do so. 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. or affect the execution of a contract. altering or concealing of evidence material to an administrative proceedings or investigation or making false statements to investigators in order to materially impede an ()ii ()iii ()iv ()v 49 . by misusing the position in which they are placed. receiving. on behalf of the Government. “obstructive practice” is (aa) deliberately destroying. others. into any contract or transaction manifestly and grossly disadvantageous to the same. "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 Coercive Practices Unless otherwise provided in the SCC. the Procuring Entity as well as the bidders. the Procuring Entity: ()qqq defines.

or consent shall be deemed to have been given or made when received by the concerned party. 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. telex. This Contract has been executed in the English language.administrative proceedings or investigation of the Procuring Entity or any foreign government/foreign or international financing institution into allegations of a corrupt. Any such notice. All correspondence and other documents pertaining to this Contract exchanged by the parties shall be written in English. or when sent by registered mail. ()rrr 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. request. fraudulent. telegram.2 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. which shall be the binding and controlling language for all matters relating to the meaning or interpretation of this Contract. Borrower or Procuring Entity. or consent required or permitted to be given or made pursuant to this Contract shall be in writing. . either in person or through an authorized representative of the Party to whom the communication is addressed. coercive or collusive practice. or facsimile to such Party at the address specified in the 50 . will seek to impose the maximum civil. . Further the Funding Source. if so required by the Funding Source. and/or threatening. 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 1. .4 Notices Any notice. as appropriate. request. 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.3 Governing Law and Language This Contract shall be interpreted in accordance with the laws of the Republic of the Philippines.

except under extraordinary circumstances and upon prior approval of the GPPB in accordance with Section 61 of R. if so needed by the Supplier. and negligence of any subcontractor.6 Subcontracting Subcontracting of any portion of the Goods. This Contract shall include all such items. . if allowed in the BDS. The Procuring Entity shall pay all costs involved in the performance of its responsibilities in accordance with GCC Clause 5.7 Procuring Entity’s Responsibilities Whenever the performance of the obligations in this Contract requires that the Supplier obtain permits. . . defaults. all bid prices are considered fixed prices. approvals. servants or workmen as fully as if these were the Supplier’s own acts. or negligence. or those of its agents. .8 Prices For the given scope of work in this Contract as awarded.A. defaults. import. although not specifically mentioned. Schedule of Requirements. Subcontractors disclosed and identified during the bidding may be changed during the implementation of this Contract. that can be reasonably inferred as being required for its completion as if such items were expressly mentioned herein. the Procuring Entity shall. and other licenses from local public authorities. 9184 and its IRR or except as provided in this Clause. does not relieve the Supplier of any liability or obligation under this Contract. The Supplier will be responsible for the acts. servants or workmen. and therefore not subject to price escalation during contract implementation. Any additional requirements for the completion of this Contract shall be provided in the SCC. its agents. 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 4. subject to compliance with the required qualifications and the approval of the Procuring Entity. 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 51 . make its best effort to assist the Supplier in complying with such requirements in a timely and expeditious manner.SCC. which shall be effective when delivered and duly received or on the notice’s effective date.5 Scope of Contract The GOODS and Related Services to be provided shall be as specified in Section VI. whichever is later.

Unless otherwise provided in the SCC.9 Payment Payments shall be made only upon a certification by the Head of the Procuring Entity 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. but in no case later than sixty (60) days after submission of an invoice or claim by the Supplier. the terms of payment shall be as follows: ()sss On Contract Signature: Ten percent (10%) 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. and by documents submitted pursuant to the SCC provision for GCC Clause 5. and shall not exceed fifteen percent (15%) of the Contract amount.10 Advance Payment and Terms of Payment Advance payment shall be made only after prior approval of the President. . the currency in which payment is made to the Supplier under this Contract shall be in Philippine Pesos. 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 16. the Goods delivered and/or Services performed. Pursuant to GCC Clause 9. For Goods supplied from abroad.bid. with the exception of any change in price resulting from a Change Order issued in accordance with GCC Clause 28. On Delivery: Seventy percent (70%) 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. 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. Bidding Forms. The Supplier’s request(s) for payment shall be made to the Procuring Entity in writing. payments shall be made promptly by the Procuring Entity. accompanied by an invoice describing. and upon fulfillment of other obligations stipulated in this Contract. as appropriate. . unless otherwise directed by the President or in cases allowed under Annex “D” of RA 9184. ()ttt ()uuu 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 52 .

stamp duties. whether local or foreign.11 Taxes and Duties The Supplier.13 Use of Contract Documents and Information 53 .representative. . ()www The Supplier has no pending claims for labor and materials filed against it. The performance security shall remain valid until issuance by the Procuring Entity of the Certificate of Final Acceptance. and other such levies imposed for the completion of this Contract. and ()xxx Other terms specified in the SCC. 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. 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. . the successful Bidder shall furnish the performance security in any the forms prescribed in the ITB Clause 33. 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. In case of a reduction of the contract value. shall be entirely responsible for all the necessary taxes. license fees. All progress payments shall first be charged against the advance payment until the latter has been fully exhausted. 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: ()vvv There are no pending claims against the Supplier or the surety company filed by the Procuring Entity.12 Performance Security 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 parties. the Procuring Entity shall allow a proportional reduction in the original performance security. .

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. Any document, other than this Contract itself, enumerated in GCC Clause 13 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.

.14

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.

.15

Inspection and Tests
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. 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. 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. 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 4.

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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.

.16

Warranty
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. 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. 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 ten percent (10%) of the final payment, or a special bank guarantee equivalent to at least ten percent (10%) of the 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. 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. If the Supplier, having been notified, fails to remedy the defect(s) within the period specified in GCC Clause 16, 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.

.17

Delays in the Supplier’s Performance
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. 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
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upon causes provided for under GCC Clause 21, 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. Except as provided under GCC Clause 21, 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 18, unless an extension of time is agreed upon pursuant to GCC Clause 28 without the application of liquidated damages.

.18

Liquidated Damages
Subject to GCC Clauses 17 and 21, 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 shall rescind the Contract pursuant to GCC Clause 22, without prejudice to other courses of action and remedies open to it.

.19

Settlement of Disputes
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. 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. 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. 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.” 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.
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fires. and such failure amounts to at least ten percent (10%) of the contact price. or which though foreseen. the Supplier is unable to deliver or perform any or all of the Goods. the aggregate liability of the Supplier to the Procuring Entity shall not exceed the total Contract Price. 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. if any. wars or revolutions. subject to additional provisions. provided that this limitation shall not apply to the cost of repairing or replacing defective equipment.. for a period of not less than sixty (60) calendar days after receipt of the notice from the Procuring Entity 57 . acts of the Procuring Entity in its sovereign capacity. . epidemics.20 Liability of the Supplier The Supplier’s liability under this Contract shall be as provided by the laws of the Republic of the Philippines. liquidated damages. ()zzz As a result of force majeure. For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used interchangeably. a fortuitous event or force majeure shall be interpreted to mean an event which the Contractor could not have foreseen. If a force majeure situation arises. was inevitable. amounting to at least ten percent (10%) of the contract price.21 Force Majeure The Supplier shall not be liable for forfeiture of its performance security. and any other cause the effects of which could have been avoided with the exercise of reasonable diligence by the Contractor. . Except in cases of criminal negligence or willful misconduct. Unless otherwise directed by the Procuring Entity in writing. quarantine restrictions.22 Termination for Default The Procuring Entity shall terminate this Contract for default when any of the following conditions attends its implementation: ()yyy Outside of force majeure. 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. Such events may include. floods. if applicable. but not limited to. set forth in the SCC. It shall not include ordinary unfavorable weather conditions. the Supplier shall promptly notify the Procuring Entity in writing of such condition and the cause thereof. and in the case of infringement of patent rights. or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Supplier prior to the delay. the Supplier fails to deliver or perform any or all of the Goods within the period(s) specified in the contract. and freight embargoes. In this regard.

. For Goods not yet performed and/or ready for delivery. and/or ()cccc 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. the Supplier shall continue performance of this Contract to the extent not terminated.stating that the circumstance of force majeure is deemed to have ceased. the Procuring Entity may terminate this Contract. In the event the Procuring Entity terminates this Contract in whole or in part. or ()aaaa The Supplier fails to perform any other obligation under the Contract. the Procuring Entity may procure.23 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. upon such terms and in such manner as it deems appropriate. at any time for its convenience. such as. In this event. . forfeit the Supplier's performance security and award the same to a qualified Supplier. 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. the Procuring Entity may elect: ()bbbb to have any portion delivered and/or performed and paid at the contract terms and prices. The Head of the Procuring Entity may terminate a contract for the convenience of the Government if he has determined the existence of conditions that make Project Implementation economically. However. Goods or Services similar to those undelivered. termination will be without compensation to the Supplier. fortuitous event(s) or changes in law and national government policies.24 Termination for Convenience The Procuring Entity may terminate this Contract. but not limited to. 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. and the Supplier shall be liable to the Procuring Entity for any excess costs for such similar Goods or Services. 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. for any of the reasons provided under GCC Clauses 22 to 25. 58 . in whole or in part. financially or technically impractical and/or unnecessary.

26 Procedures for Termination of Contracts The following provisions shall govern the procedures for termination of this Contract: ()hhhh Upon receipt of a written report of acts or causes which may constitute ground(s) for termination as aforementioned. Unlawful acts include. on a quantum meruit basis. such as purchase of raw materials for goods specially manufactured for the Procuring Entity which cannot be sold in open market. whether in whole or in part. but are not limited to. .If the Supplier suffers loss in its initial performance of the terminated contract. Before recovery may be made. or engaging in production contrary to rules of science or the trade. the extent of termination. the following: ()dddd Corrupt. and special instructions of the Procuring Entity. the Head of the Procuring Entity shall terminate this Contract only by a written notice to the Supplier conveying the termination of this Contract. fraudulent. 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 ()iii ()iv 59 . the Implementing Unit shall. an instruction to the Supplier to show cause as to why this Contract should not be terminated. it shall be allowed to recover partially from this Contract. ()iiii Upon recommendation by the Implementing Unit. and ()gggg Any other act analogous to the foregoing. and coercive practices as defined in ITB Clause 3. ()ffff Using adulterated materials. before or during the implementation of this Contract. the fact of loss must be established under oath by the Supplier to the satisfaction of the Procuring Entity before recovery may be made. verify the existence of such ground(s) and cause the execution of a Verified Report. means or methods. ()eeee Drawing up or using forged documents. if any. in unlawful deeds and behaviors relative to contract acquisition and implementation. with all relevant evidence attached. or upon its own initiative.25 Termination for Unlawful Acts The Procuring Entity may terminate this Contract in case it is determined prima facie that the Supplier has engaged. within a period of seven (7) calendar days.

no variation in or modification of the terms of this Contract shall be made except by written amendment signed by the parties. ()llll 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. except with the Procuring Entity’s prior written consent. delivered. . either by inaction or by default. the Head of the Procuring Entity shall decide whether or not to terminate this Contract. ()mmmm Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper. ()kkkk Within a period of seven (7) calendar days from receipt of the Notice of Termination. The termination shall only be based on the ground(s) stated in the Notice to Terminate.28 Contract Amendment Subject to applicable laws.()jjjj The Notice to Terminate shall be accompanied by a copy of the Verified Report. and ()oooo 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. If the Supplier fails to show cause after the lapse of the seven (7) day period.27 Assignment of Rights The Supplier shall not assign his rights or obligations under this Contract. or performed before the Supplier’s receipt of the notice. . ()nnnn The Head of the Procuring Entity may create a Contract Termination Review Committee (CTRC) to assist him in the discharge of this function. the Head of the Procuring Entity shall issue an order terminating this Contract. All decisions recommended by the CTRC shall be subject to the approval of the Head of the Procuring Entity. .29 Application These General Conditions shall apply to the extent that they are not superseded by provisions of other parts of this Contract. 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. 60 . this Contract is deemed terminated from receipt of the Supplier of the notice of decision. unless otherwise provided. It shall serve a written notice to the Supplier of its decision and. the Supplier shall submit to the Head of the Procuring Entity a verified position paper stating why this Contract should not be terminated. in whole or in part.

specifying contractual requirements linked to the special circumstances of the Procuring Entity.Section V. The provisions of this Section complement the GCC. the Procuring Entity’s country. In preparing this Section. Special Conditions of Contract Notes on the Special Conditions of Contract Similar to the BDS. must also be incorporated. as necessitated by the circumstances of the specific purchase. However. 61 . the following aspects should be checked: (a) (b) Information that complements provisions of Section IV must be incorporated. the sector. Amendments and/or supplements to provisions of Section IV. no special condition which defeats or negates the general intent and purpose of the provisions of Section IV should be incorporated herein. and the Goods purchased. 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 General Appropriations Act and/or continuing appropriations. and State Universities and Colleges.” 62 . 1 The Project Site is [insert full name and address of the delivery site]. NOTE: In the case of National Government Agencies. the Corporate Budget for the contract approved by the governing Boards. Paris. in the case of Government-Owned and/or –Controlled Corporations.” “FOB.Special Conditions of Contract GCC Clause 1 1 1 The Procuring Entity is [insert name of Procuring Entity]. The Delivery terms of this Contract shall be as follows: For Goods Supplied from Abroad. “EXW. The Supplier is [to be inserted at the time of contract award].” “CIP.” “CIF.” “FCA.” “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 Commerce. For multiple sites state “The Project sites are defined in Section VI. amended. name of contact. fax and telephone number] The Supplier’s address for Notices is: [Insert address including. in the case of Local Government Units. name of contact. the Budget for the contract approved by the respective Sanggunian. fax and telephone number] 4 5 List here any additional requirements for the completion of this Contract. Government Financial Institutions. Schedule of Requirements”] The Procuring Entity’s address for Notices is: [Insert address including. The following requirements and the corresponding provisions may be deleted. state “The delivery terms applicable to the Contract are DDP delivered [insert place of destination]. The Funding Source is the Government of the Philippines (GOP) through [indicate source of funding and year] in the amount of [insert amount of funds]. In accordance with INCOTERMS. or retained depending on its applicability to this Contract: Delivery and Documents – For purposes of the Contract.

state “The delivery terms applicable to this Contract are delivered [insert place of destination]. bill of lading number and date. 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. Schedule of Requirements. port of discharge etc. 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. railway receipt.For Goods Supplied from Within the Philippines. or truck receipt. and (viii) Four copies of the Invoice Receipt for Property signed by the Procuring Entity’s representative at the Project Site. (ii) Original and four copies delivery receipt/note. 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 63 . Risk and title will pass from the Supplier to the Procuring Entity upon receipt and final acceptance of the Goods at their final destination. date of shipment. unit price. the Supplier shall notify the Procuring Entity and the insurance company by cable the full details of the shipment. vessel. port of loading. quantity. description of the Goods. (vii) Certificate of Acceptance/Inspection Report signed by the Procuring Entity’s representative at the Project Site. quantity. (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. including Contract Number. Upon delivery to the Project Site. and total amount.” Delivery of the Goods shall be made by the Supplier in accordance with the terms specified in Section VI. For Goods supplied from abroad: Upon shipment. (iv)Original and four copies of the Manufacturer’s and/or Supplier’s warranty certificate. (iii) Original Supplier’s factory inspection report.

clean shipped on board bill of lading marked “freight pre-paid” and five copies of the non-negotiable bill of lading . if any. Original Supplier’s factory inspection report. in assembly. Original and four copies of the Manufacturer’s and/or Supplier’s warranty certificate. start-up. Schedule of Requirements: Select appropriate requirements and delete the rest. Delivery receipt detailing number and description of items received signed by the Procuring Entity’s representative at the Project Site. and training of the Procuring Entity’s personnel. and/or repair of the supplied Goods. furnishing of tools required for assembly and/or maintenance of the supplied Goods. (iii) (iv) (v) (vi) (vii) (viii) For purposes of this Clause the Procuring Entity’s Representative at the Project Site is [insert name(s)]. Certificate of Acceptance/Inspection Report signed by the Procuring Entity’s representative at the Project Site. quantity. Incidental Services – The Supplier is required to provide all of the following services. (ii) Original and four copies of the negotiable. furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied Goods. maintenance. (a) (b) (c) (d) performance or supervision of on-site assembly and/or start-up of the supplied Goods. unit price.Goods’ description. provided that this service shall not relieve the Supplier of any warranty obligations under this Contract. (e) The Contract price for the Goods shall include the prices charged by the Supplier for incidental services and shall not exceed the prevailing 64 . operation. at the Supplier’s plant and/or on-site. performance or supervision or maintenance and/or repair of the supplied Goods. including additional services. specified in Section VI. and Four copies of the Invoice Receipt for Property signed by the Procuring Entity’s representative at the Project Site. and total amount. for a period of time agreed by the parties. Original and four copies of the certificate of origin (for imported Goods).

provided that this election shall not relieve the Supplier of any warranty obligations under this Contract. and information pertaining to spare parts manufactured or distributed by the Supplier: Select appropriate requirements and delete the rest. advance notification to the Procuring Entity of the pending termination. and documentation within and outside the 65 . where appropriate. 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. The packaging. and specifications of the spare parts. and open storage. The spare parts required are listed in Section VI. notifications. if requested. furnishing at no cost to the Procuring Entity. The packaging shall be sufficient to withstand. as indicated in this Contract. (a) such spare parts as the Procuring Entity may elect to purchase from the Supplier. and following such termination. If not used insert time period of three times the warranty period]. (b) ii. but in any case within [insert appropriate time period] months of placing the order. Spare Parts – The Supplier is required to provide all of the following materials. salt and precipitation during transit. without limitation. the remoteness of the GOODS’ final destination and the absence of heavy handling facilities at all points in transit. drawings. rough handling during transit and exposure to extreme temperatures. in sufficient time to permit the Procuring Entity to procure needed requirements. 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. and in the event of termination of production of the spare parts: i.rates charged to other parties by the Supplier for similar services. the blueprints. Packaging case size and weights shall take into consideration. marking. Other spare parts and components shall be supplied as promptly as possible.

transport to such place of destination in the Philippines. If not practical the packaging list is to be placed inside the outer packaging but outside the secondary packaging. as shall be specified in this Contract. as shall be specified in this Contract. Where the Supplier is required under Contract to deliver the Goods 66 . Transportation – Where the Supplier is required under Contract to deliver the Goods CIF. including additional requirements. storage.packages shall comply strictly with such special requirements as shall be expressly provided for in the Contract. if any. and related costs shall be included in the Contract Price. and delivery. shall be arranged by the Supplier. defined as the Project Site. transportation. Where the Supplier is required under this Contract to transport the Goods to a specified place of destination within the Philippines. 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. 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. including insurance and storage. The Goods remain at the risk and title of the Supplier until their final acceptance by the Procuring Entity. CIP or DDP. and in any subsequent instructions ordered by the Procuring Entity. transport of the Goods to the port of destination or such other named place of destination in the Philippines. and the cost thereof shall be included in the Contract Price. shall be arranged and paid for by the Supplier. specified below.

The Procuring Entity accepts no liability for the damage of Goods during transit other than those prescribed by INCOTERMS for DDP Deliveries. 16 20 The period for correction of defects in the warranty period is [insert number of days]. Patent Rights – The Supplier shall indemnify the Procuring Entity against all third-party claims of infringement of patent. that must be met prior to the release of the performance security. State here “No additional provision. “All partners to the joint venture shall be jointly and severally liable to the Procuring Entity. CIP or DDP.4 Maintain the GCC Clause and state here “Not applicable” or if procurement involves a foreign-denominated bid.CIF. 10. state “None”]. if the Supplier is a joint venture. 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. if none. Specify additional conditions. 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. The inspections and tests that will be conducted are: [Insert the applicable inspections and tests. trademark. or industrial design rights arising from use of the Goods or any part thereof. if any. state “No further instructions”. 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 21. whichever is earlier. Goods are to be transported on carriers of Philippine registry.” or. state "Payment shall be made in [insert currency].” 12 15 16 67 . In the event that no carrier of Philippine registry is available. If the Goods pertain to Non-expendable Supplies: One (1) year after acceptance by the Procuring Entity of the delivered Goods. otherwise. 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.

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.

Section VI. Item Number Description Quantity Total Delivered. Weeks/Months 70 . 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.

materials. and the subsequent task of bid evaluation and post-qualification facilitated. it may be advantageous to standardize the General Technical Specifications and incorporate them in a separate subsection. Samples of specifications from previous similar procurements are useful in this respect. unused.Section VII. at the same time. materials and accessories to be included or incorporated in the goods be new. manpower requirements. unless otherwise expressly stated in the Contract. materials. other authoritative standards that ensure substantial equivalence to the standards and codes specified will be acceptable. the specifications (e. the provisions of the latest edition or revision of the relevant standards and codes shall apply. Depending on the complexity of the goods and the repetitiveness of the type of procurement. recognized Philippine and international standards should be used as much as possible. and of the most recent or current models. The following clause may be inserted in the Special Conditions of Contract or the Technical Specifications. The specifications should require that all items. and workmanship.” 71 . Where such standards and codes are national or relate to a particular country or region.. fairness and economy in procurement be realized. The use of metric units is encouraged. will also be acceptable. and performance of the goods and services to be procured. Only if this is done will the objectives of transparency. Deletions or addenda should then adapt the General Technical Specifications to the particular procurement. where unavoidable they should always be followed by the words “or at least equivalent. and after-sales service/parts) must be prepared to permit the widest possible competition and. In the specification of standards for equipment. Reference to brand name and catalogue number should be avoided as far as possible. whether national standards or other standards. materials. 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. Where other particular standards are used. efficiency. In the context of Competitive Bidding. present a clear statement of the required standards of workmanship. the specifications should state that equipment. materials.g. and equipment commonly involved in manufacturing similar goods. and which ensure at least a substantially equal quality than the standards mentioned. production/delivery schedule. Care must be taken in drafting specifications to ensure that they are not restrictive. The General Technical Specifications should cover all classes of workmanship. and that they include or incorporate all recent improvements in design and materials unless otherwise provided in the Contract. equity. and workmanship that meet other authoritative standards. 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. responsiveness of bids be ensured.

including site plans as required. may be furnished by the Procuring Entity with the Bidding Documents. Bidders are also required. Where appropriate. as part of the technical specifications. Similarly.References to brand names cannot be used when the Funding Source is the GOP. 72 . drawings. to complete their statement of compliance demonstrating how the items comply with the specification. 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.

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 and/or GCC Clause 1..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. unconditional statements of specification and compliance issued by the manufacturer. independent test data etc. 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. samples. 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. as appropriate. A statement either in the Bidders statement of compliance or the supporting evidence that is found to be false either during Bid evaluation. 73 .

should incorporate any corrections or modifications to the accepted Bid resulting from price corrections. pursuant to ITB Clause 18. 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. The sworn affidavit must be completed by all Bidders in accordance with ITB Clause 4 failure to do so and submit it with the bid shall result in the rejection of the bid and the Bidder’s disqualification. When requested in the BDS. 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. either in the form included hereafter or in another form acceptable to the Entity. The Contract Agreement Form. The Price Schedule and Schedule of Requirements deemed to form part of the contract should be modified accordingly. 74 .Section VIII. 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 12 and its corresponding SCC provision. the Bidder should provide the Bid Security. when it is finalized at the time of contract award.

14 75 ................................... 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................14 ()iv “coercive practices” means harming or threatening to harm....... and number of lots specific to this bidding are provided in the BDS.. identification.13 Unless otherwise specified in the BDS.................. In pursuance of this policy............................................................................... or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution................................... Fraudulent..................................... 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...................... non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition...... INSTRUCTIONS BIDDERS.................................................... administrative...........................................13 .... the Procuring Entity will seek to impose the maximum civil..... by misusing the position in which they are placed. or their property to influence their participation in a procurement process............................................14 ()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...................... INVITATION TO BID........................................ or induce others to do so...........3 Corrupt....................................13 The procuring entity named in the BDS (hereinafter referred to as the “Procuring Entity”) wishes to receive bids for supply and delivery of the goods as described in Section VII............ or affect the execution of a contract.. .....13 ()iii “collusive practices” means a scheme or arrangement between two or more Bidders......... on behalf of the government.............. entering................... and includes collusive practices among Bidders (prior to or after bid submission) designed to establish bid prices at artificial..2 Source of Funds...........13 . The contracting strategy and basis of evaluation of lots is described in ITB Clause 28. designed to establish bid prices at artificial.............................13 ()a defines..................................14 Further..... others..... .... whether or not the public officer profited or will profit thereby..............6 TO SECTION II.......... for purposes of this provision.................. Technical Specifications (hereinafter referred to as the “Goods”)..................... and similar acts as provided in RA 3019. non-competitive levels...................... and Coercive Practices......... receiving.............................13 .....1 Scope of Bid....................................13 ()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.TABLE OF CONTENTS SECTION I..........14 ()v “obstructive practice” is...............................13 ()i “corrupt practice” means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves............ into any contract or transaction manifestly and grossly disadvantageous to the same.10 GENERAL................ directly or indirectly.........................13 The name... and includes the offering.............. with or without the knowledge of the Procuring Entity.... the Procuring Entity: .......... persons...... Collusive........... giving.................................................................................. the terms set forth below as follows:.................

..... by consanguinity or affinity up to the third civil degree. 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 (f) below: .......... without prejudice to the imposition of appropriate administrative.................................... (b).... directors........................................................................................................15 ()j If the Bidder is a partnership.............. or .. ................. and.... 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 2............... 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.................. and criminal sanctions..............15 ()f A Bidder has a relationship............................... the head of the Project Management Office (PMO) or the end-user unit............... members of the Technical Working Group (TWG)............ On the part of the Bidder... This will include a firm or an organization who lends....Furthermore.........14 .................... However...... to the Bidder himself................................ this Clause shall apply to the following persons:....... members of the BAC Secretariat.....................................15 ()h 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.. and controlling stockholders......................15 .15 In accordance with Section 47 of the IRR of RA 9184.......................16 ()m Duly licensed Filipino citizens/sole proprietorships............ ............. to all its officers and members................. ...... and the project consultants..........................................................15 ()k If the Bidder is a corporation....................15 ()e A Bidder has the same legal representative as that of another Bidder for purposes of this bid............... .............15 ()i If the Bidder is an individual or a sole proprietorship............................ this does not limit the participation of subcontractors in more than one bid....................... or temporarily seconds..........................5 Eligible Bidders....................4 Conflict of Interest.... civil................ directly or through third parties...........16 ()n 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.............................15 ()d A Bidder receives or has received any direct or indirect subsidy from any other Bidder................... to all its officers....15 Relationship of the nature described above or failure to comply with this Clause will result in the automatic disqualification of a Bidder..... 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.....................15 ()g A Bidder submits more than one bid in this bidding process...................................14 ()c A Bidder has controlling shareholders in common with another Bidder....16 76 ..................... members of the Bids and Awards Committee (BAC)................................ . 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..............................................14 All Bidders found to have conflicting interests shall be disqualified to participate in the procurement at hand......................................................................... as may be appropriate..............................15 ()l If the Bidder is a joint venture (JV)....... the following persons shall be eligible to participate in this bidding: ................................ the provisions of items (a)..16 Unless otherwise provided in the BDS....................... or (c) of this Clause shall correspondingly apply to each of the members of the said JV................

.............17 ........................................17 The NFCC.........()o Corporations duly organized under the laws of the Philippines..............17 ()y Having complied with its responsibility to inquire or secure Supplemental/Bid Bulletin(s) as provided under ITB Clause 10................................ that Filipino ownership or interest of the joint venture concerned shall be at least sixty percent (60%).. a group of two (2) or more persons/entities that intend to be jointly and severally responsible or liable for a particular contract: Provided...... adjusted to current prices using the National Statistics Office consumer price index....................... terms........... if any............................... ................ corporations................... affecting the implementation of the contract.............. or associations of a country.......................... computed using the following formula...........................16 ()q Unless otherwise provided in the BDS............................................................... (b) 77 .................. must be at least equivalent to a percentage of the ABC stated in the BDS....17 The Bidder is responsible for the following:................ or associations of the Philippines. and (c) are not dependent agencies of the GOP or the Procuring Entity........................................e... and completed within the relevant period stated in the Invitation to Bid and ITB Clause 12...... and..17 The Bidder or its duly authorized representative shall submit a sworn statement in the form prescribed in Section VIII...........17 ()x Having made an estimate of the facilities available and needed for the contract to be bid...........................................16 Government corporate entities may be eligible to participate only if they can establish that they (a) are legally and financially autonomous.........................................................................................16 Unless otherwise provided in the BDS..................................................................... the Bidder must have completed at least one contract similar to the Project the value of which.. persons/entities forming themselves into a JV....................... ....17 ()v Having taken steps to carefully examine all of the Bidding Documents...............................................................16 ()t When the Goods sought to be procured are not available from local suppliers......... including: (a) the location and the nature of this Project..... corporations............................................................................ .............................................. and specifications in the Bidding Documents........... (b) operate under commercial law.......................................................16 ()u When there is a need to prevent situations that defeat competition or restrain trade.........................16 ()s Citizens............................... however................ Bidding Forms as required in ITB Clause 12...16 For this purpose............. the laws or regulations of which grant reciprocal rights or privileges to citizens............ and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines................ i............................. local or otherwise........................ or......... must be at least equal to the ABC to be bid:.......................17 ()w Having acknowledged all conditions.............16 ()r When a Treaty or International or Executive Agreement as provided in Section 4 of the RA 9184 and its IRR allow foreign bidders to participate..........16 ()p Cooperatives duly organized under the laws of the Philippines...................................... contracts similar to the Project shall be those described in the BDS............17 The Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or a commitment from a Universal or Commercial Bank to extend a credit line in its favor if awarded the contract for this Project (CLC). forms...............16 Foreign bidders may be eligible to participate when any of the following circumstances exist........... as specified in the BDS:............ ................................. ...........6 Bidder’s Responsibilities ...............18 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...17 The Bidder is expected to examine all instructions.................. included in the list issued by the GPPB. and of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines........

.......... or when international participation will be more advantageous to the GOP...................... decrees.. as specified in the BDS....................................... a longer period for the preparation of bids is necessary.......... and (d) other factors that may affect the cost..................19 .1.....19 ................................................ (c) transportation facilities............. and execution or implementation of this Project.............. subcontracting of any portion shall not relieve the Bidder from any liability or obligation that may arise from the contract for this Project....................... If the Bidder opts to disclose the name of the subcontractor during bid submission............ or complexity of the contract to be bid.3.........19 ............................................................................1................. the Bidder shall include the required documents as part of the technical component of its bid..................... Subcontractors must comply with the eligibility criteria and the documentary requirements specified 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.................. ....... Non-attendance of the Bidder will in no way prejudice its bid..............................climatic conditions............19 (a) If so specified in the BDS............. If the Procuring Entity determines that............................................. regardless of the conduct or outcome of the bidding process........9 Pre-Bid Conference. .............................................19 ..... acts and regulations of the Philippines which may affect this Project in any way.8 Subcontracts...................... However.19 Bidders are encouraged to attend the pre-bid conference to ensure that they fully understand the Procuring Entity’s requirements........................................................................................................................................ nature.................. ordinances........... 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..18 Before submitting their bids.................. by reason of the method............... In the event that any subcontractor is found by the Procuring Entity to be ineligible............................... however...........2............ the subcontracting of such portion of the Goods shall be disallowed.............18 The Bidder should note that the Procuring Entity will accept bids only from those that have paid the nonrefundable fee for the Bidding Documents at the office indicated in the Invitation to Bid.....................19 Unless otherwise indicated in the BDS...................18 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......... the pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids................................. the Bidder is deemed to have become familiar with all existing laws......19 ........................ subject to ITB Clause 27.. Unless otherwise specified in the BDS...................4............. the Bidder may subcontract portions of the Goods to an extent as may be approved by the Procuring Entity and stated in the BDS......7 Origin of Goods .................... and the Procuring Entity will in no case be responsible or liable for those costs...................19 (b) The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids........................................1.............. the Bidder is expected to know the changes 78 .......................18 The Bidder shall bear all costs associated with the preparation and submission of his bid...........19 ........................................ .......... 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..19 CONTENTS OF BIDDING DOCUMENTS...... duration.....................

......................................1..and/or amendments to the Bidding Documents discussed during the pre-bid conference.................................iii............ .....................1) name of the contract............ as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Procuring Entity. if available................. the following:..................................4) amount of contract and value of outstanding contracts..............21 (..................20 PREPARATION OF BIDS..20 ........................................................................................................1.................. It shall be the responsibility of all Bidders who secure the Bidding Documents to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC......................................................................20 ...........................21 (.......... Unless otherwise indicated in the BDS......................iii........................................................................................................................11 Language of Bid................12 Documents Comprising the Bid: Eligibility and Technical Components.21 ()iii Statement of all its ongoing and completed government and private contracts within the period stated in the BDS.................... ........ or any proof of such registration as stated in the BDS......21 79 .............21 ()ii Mayor’s permit issued by the city or municipality where the principal place of business of the prospective bidder is located. or Cooperative Development Authority (CDA) for cooperatives..........................10 Clarification and Amendment of Bidding Documents............................2) date of the contract......20 .................... Any modification to the Bidding Documents shall be identified as an amendment.........20 Supplemental/Bid Bulletins may 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............................... including contracts awarded but not yet started..........iii............... 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.............................iii... 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......20 .........................20 Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the Philippine Government Electronic Procurement System (PhilGEPS) and the website of the Procuring Entity concerned.......... for each contract...............19 Any statement made at the pre-bid conference shall not modify the terms of the Bidding Documents unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/Bid Bulletin............................ Supporting documents and printed literature furnished by the Bidder may be in another language provided they are accompanied by an accurate translation in English certified by the appropriate embassy or consulate in the Philippines....................21 (..........3) kinds of Goods...........20 ()a Eligibility Documents – ...20 ()i Registration certificate from the Securities and Exchange Commission (SEC).......20 Bidders who have purchased the Bidding Documents may request for clarification on any part of the Bidding Documents for an interpretation............. .......20 The bid......................... the first envelope shall contain the following eligibility and technical documents:..................................................................21 (......................................... However............................ The statement shall include......................................... in which case the English translation shall govern for purposes of interpretation of the bid.................... Department of Trade and Industry (DTI) for sole proprietorship.................................................20 Class “A” Documents: ..................................................................................................................... if any................................................................... shall be written in English........................................................ ...

....................................................... and...........................................................................................................................22 (a) Unless otherwise stated in the BDS.......... and.................................... SEC.......................... total price per item........ 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....................iii........................................................21 Class “B” Document: ....... and..........21 (..........22 ............... in accordance with ITB Clauses 15 and 15.................22 Unless otherwise stated in the BDS...............5) date of delivery................................................(.....................................................................................................................................2) a surety bond.... which includes bid prices and the bill of quantities and the applicable Price Schedules.................... and.... If the Bidder opts to submit the bid security in the form of:............14 Alternative Bids.......................................21 ()vi If applicable.................... Bidding Forms.......1) a bank draft/guarantee or an irrevocable letter of credit issued by a foreign bank................21 (.................. .........22 ............ stating the unit prices..............................21 ()b Technical Documents –.....21 ()iv Audited financial statements..................22 ()c Financial Bid Form... For this purpose.... for foreign-funded procurement.....23 The Bidder shall complete the appropriate Price Schedules included herein............................ unless otherwise provided in the BDS.22 ()iii Sworn statement in accordance with Section 25.......... stamped “received” by the Bureau of Internal Revenue (BIR) or its duly accredited and authorized institutions...............................13 Documents Comprising the Bid: Financial Component....................... or CDA issued in accordance with ITB Clause 27........................2(a)(iv) of the IRR of RA 9184 and using the form prescribed in Section VIII......... .......................................................................... .................. it shall be accompanied by a certification by the Insurance Commission that the surety or insurance company is authorized to issue such instruments....... a ceiling may be applied to bid prices provided the following conditions are met: ............................. the financial component of the bid shall contain the following:..... all bids that exceed the ABC shall not be accepted...................i...... if completed.................... it shall be accompanied by a confirmation from a Universal or Commercial Bank..22 ()e Any other document related to the financial component of the bid as stated in the BDS...................................................6) end user’s acceptance or official receipt(s) issued for the contract...... the JVA in case the joint venture is already in existence....................................................22 ()ii Conformity with technical specifications.............21 ()i Bid security in accordance with ITB Clause 18...........................21 ()v NFCC computation or CLC in accordance with ITB Clause 5.............. the total amount and the expected countries of origin of the Goods to be supplied under this Project.......23 80 ................... for the preceding calendar year...................................................................................................... which should not be earlier than two (2) years from bid submission......................................................22 ()d If the Bidder claims preference as a Domestic Bidder or Domestic Entity......................... a certification from the DTI..iii............................................................................................................. 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.. or duly notarized statements from all the potential joint venture partners stating that they will enter into and abide by the provisions of the JVA in the instance that the bid is successful....................23 Alternative Bids shall be rejected........... as enumerated and specified in Sections VI and VII of the Bidding Documents.................................. or ...........................15 Bid Prices...........22 (b) Unless otherwise indicated in the BDS...i...............................21 (...................................23 .........................

..................24 . A bid submitted with an adjustable price quotation shall be treated as non-responsive and shall be rejected............................. the price of the Goods shall be quoted DDP with the place of destination in the Philippines as specified in the BDS.i........................................................... or....... in cases where the cost of the awarded contract is affected by any applicable new laws........ ..23 ()i The price of the Goods quoted EXW (ex works.............24 All bid prices shall be considered as fixed prices...... if any........24 ()g For Goods offered from abroad:.............................. Bill of Quantities........ if any..... ordinances........... ex showroom........... the same shall be considered as non-responsive..........23 ()f For Goods offered from within the Procuring Entity’s country:..... including all customs duties and sales and other taxes already paid or payable:......... where applicable........................................... Extraordinary circumstances refer to events that may be determined by the National Economic and Development Authority in accordance with the Civil Code of the Philippines................. but no price is indicated... Paris................. insurance...... Cost and Insurance Paid to (CIP).. shall be considered non-responsive and....................................23 Prices indicated on the Price Schedule shall be entered separately in the following manner:.. Similarly.. listed in the BDS....................24 (............. ex warehouse................... and other local costs incidental to delivery of the Goods to their final destination................... Bids not addressing or providing all of the required items in the Bidding Documents including.24 81 ....24 ()ii The price for inland transportation.....i.. and upon the recommendation of the Procuring Entity.... Delivered Duty Paid (DDP)... where a required item is provided.... Insurance and Freight (CIF).......................24 ()ii The price of other (incidental) services.......24 ()i Unless otherwise stated in the BDS. as applicable).........The Bidder shall fill in rates and prices for all items of the Goods described in the Bill of Quantities........... the prices shall be quoted in Philippine Pesos........24 ()iii The price of other (incidental) services............. the Bidder may obtain insurance services from any eligible source country............................................................ automatically disqualified... but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Government.... promulgated after the date of bid opening.................................... ex factory............. pursuant to ITB Clause 24........... In this regard.......24 Prices shall be quoted in the following currencies:......... shall be governed by the rules prescribed in the current edition of the International Commercial Terms (INCOTERMS) published by the International Chamber of Commerce..... Cost.................................................... thus.. regulations. and other trade terms used to describe the obligations of the parties.... In quoting the price.......24 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....................................................... the Bidder shall be free to use transportation through carriers registered in any eligible country...................................................... or off-the-shelf and any Procuring Entity country sales and other taxes which will be payable on the Goods if the contract is awarded..............2) on the previously imported Goods of foreign origin quoted ex warehouse...... ex showroom...............24 ()h For Goods that the Bidder will supply from within the Philippines.......... or other acts of the GOP............... listed in the BDS....23 The terms Ex Works (EXW)..... Nevertheless...... or off-the-shelf............................ except under extraordinary circumstances...................................23 (..........................................1) on the components and raw material used in the manufacture or assembly of Goods quoted ex works or ex factory...................16 Bid Currencies............................. ...................... a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis............. and therefore not subject to price escalation during contract implementation.......

.................................................... bid securities shall be returned only after the bidder with the Lowest Calculated and Responsive Bid 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.......... ...................()i For Goods that the Bidder will supply from outside the Philippines.........18 Bid Security......................25 Unless otherwise specified in the BDS.................... the Bidder may also submit bid securities in the form of cashier’s/manager’s check........................................................ but in no case later than the bid security validity period as indicated in the ITB Clause 18.... .......17 Bid Validity........................25 For biddings conducted by LGUs...................................... A Bidder granting the request shall not be required or permitted to modify its bid............................................. The request and the responses shall be made in writing........26 The bid security should be valid for the period specified in the BDS............... Without prejudice on its forfeiture.........25 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......26 Upon signing and execution of the contract pursuant to ITB Clause 32...........................................................................26 ()ii does not accept the correction of errors pursuant to ITB Clause 28...25 . prior to the expiration of the Bid validity period........................... upon submission of a written waiver of their right to file a motion for reconsideration and/or protest.................................................... bids denominated in foreign currencies shall be converted to Philippine currency based on the exchange rate as published in the BSP reference rate bulletin on the day of the bid opening.........................26 ()n if a Bidder:........ ................................26 No bid securities shall be returned to bidders after the opening of bids and before contract signing.25 If so allowed in accordance with ITB Clause 16................................................................... bank draft/guarantee.............. but his bid shall no longer be considered for further evaluation and award.................... and the posting of the performance security pursuant to ITB Clause 33............ the Procuring Entity may request Bidders to extend the period of validity of their bids.............................25 .................................. However........................................ A Bidder may refuse the request without forfeiting its bid security.....................26 The bid security may be forfeited:...................... except to those that failed or declared as post-disqualified..............................26 ()iii fails to submit the requirements within the prescribed period or a finding against their veracity as stated in ITB Clause 29........ the successful Bidder’s bid security will be discharged................. payment of the contract price shall be made in Philippine Pesos................................ or irrevocable letter of credit from other banks certified by the BSP as authorized to issue such financial statement... 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.........................................25 The bid security in the amount stated in the BDS shall be equal to the percentage of the ABC in accordance with the following schedule:. Any bid not accompanied by an acceptable bid security shall be rejected by the Procuring Entity as non-responsive............... The bid security described in ITB Clause 18 should also be extended corresponding to the extension of the bid validity period at the least........................................................ for purposes of bid evaluation...........................................................................................26 ()i withdraws its bid during the period of bid validity specified in ITB Clause 17................................................................. the prices may be quoted in the currency(ies) stated in the BDS...25 In exceptional circumstances.......................................26 82 ....................................

....27 ()xi failure of the potential joint venture partners to enter into the joint venture after the bid is declared successful.....27 ()i fails to sign the contract in accordance with ITB Clause 32....................................................27 Bidders shall submit their bids through their duly authorized representative using the appropriate forms provided in Section VIII......................................................................................27 Forms as mentioned in ITB Clause 19 must be completed without any alterations to their format.....................27 ()ii fails to furnish performance security in accordance with ITB Clause 33...... erasures..........................................................................................................19 Format and Signing of Bids...................................................................................()iv submission of eligibility requirements containing false information or falsified documents.........27 ()ix refusal to clarify or validate in writing its bid during post-qualification within a period of seven (7) calendar days from receipt of the request for clarification... or using the name of another for purposes of public bidding............................TECHNICAL COMPONENT”................................27 ()xii all other acts that tend to defeat the purpose of the competitive bidding.. and the original of their financial component in another sealed envelope marked “ORIGINAL .......... or............. and which shall be submitted simultaneously.28 Bidders shall enclose their original eligibility and technical documents described in ITB Clause 12 in one sealed envelope marked “ORIGINAL ............................... sealing them all in an outer envelope marked “ORIGINAL BID”.................... for at least three (3) times within a year...... or.... .......................... ___ . or refusal to accept an award..........28 Each copy of the first and second envelopes shall be similarly sealed duly marking the inner envelopes as “COPY NO......... .................................... except for unamended printed literature....................................................................... ..................28 Any interlineations............. In the event of any discrepancy between the original and the copies. and no substitute form shall be accepted.......28 .............. after the Bidder had been adjudged as having submitted the Lowest Calculated and Responsive Bid.............................. and the second shall contain the financial component of the bid.......................27 The Bidder shall prepare and submit an original of the first and second envelopes as described in ITB Clauses 12 and 13...................................................... such as habitually withdrawing from bidding.......27 ()x any documented attempt by a bidder to unduly influence the outcome of the bidding in his favor............................. 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.................. ................... shall be signed..............20 Sealing and Marking of Bids................ The first shall contain the technical component of the bid........ except for valid reasons.....TECHNICAL COMPONENT” and “COPY 83 ..........................................27 ()viii refusal or failure to post the required performance security within the prescribed time......27 ...27 ()o if the successful Bidder:... and each and every page thereof shall be initialed.........27 ()vii withdrawal of a bid..27 The bid....................................................................................................................................FINANCIAL COMPONENT”.................................................26 ()vi allowing the use of one’s name..... the original shall prevail........................................................ or overwriting shall be valid only if they are signed or initialed by the duly authorized representative/s of the Bidder... Bidding Forms on or before the deadline specified in the ITB Clauses 21 in two (2) separate sealed bid envelopes............... by the duly authorized representative/s of the Bidder.................................................26 ()v submission of bids that contain false information or falsified documents........ All blank spaces shall be filled in with the information requested.. including the eligibility requirements under ITB Clause 12...... or enter into contract with the Government without justifiable cause.................................................... submitting late Bids or patently insufficient bid......

.................................. for valid and justifiable reason....................... ___ – FINANCIAL COMPONENT” and the outer envelope as “COPY NO......28 ()t bear a warning “DO NOT OPEN BEFORE…” the date and time for the opening of bids..................... provided that the modification is received by the Procuring Entity prior to the deadline prescribed for submission and receipt 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..................................................................................... and the imposition of 84 ........... ___”....................... linked to its original bid marked as “TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and stamped “received” by the BAC..................... shall be declared “Late” and shall not be accepted by the Procuring Entity.................................. The Bidder shall not be allowed to retrieve its original bid.................. for the same contract......28 The original and the number of copies of the Bid as indicated in the BDS shall be typed or written in indelible ink and shall be signed by the bidder or its duly authorized representative/s....................................................................... pursuant to ITB Clause 21.... properly identified..................................... Bid modifications received after the applicable deadline shall not be considered and shall be returned to the Bidder unopened.......... ........... ...... the Procuring Entity will assume no responsibility for the misplacement or premature opening of the bid......... and.............28 ()r be addressed to the Procuring Entity’s BAC in accordance with ITB Clause 1.........................................28 ..............................................28 ()s bear the specific identification of this bidding process indicated in the ITB Clause 1........................................................................................ in accordance with ITB Clause 21.........................28 ()q bear the name and address of the Bidder in capital letters......................................................... .....NO......29 The Bidder may modify its bid after it has been submitted................29 A Bidder may............................................................... but shall be allowed to submit another bid equally sealed........... A Bidder that withdraws its bid shall not be permitted to submit another bid..................................................................28 ............29 No bid may be modified after the deadline for submission of bids............ .................29 Bids requested to be withdrawn in accordance with ITB Clause 23 shall be returned unopened to the Bidders............28 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..................................................................................28 ()p contain the name of the contract to be bid in capital letters................29 Any bid submitted after the deadline for submission and receipt of bids prescribed by the Procuring Entity.................. Withdrawal of a bid during this interval shall result in the forfeiture of the Bidder’s bid security.....................................29 ......... These envelopes containing the original and the copies shall then be enclosed in one single envelope.. A Bidder 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.......................21 Deadline for Submission of Bids....... withdraw its bid after it has been submitted.......................... directly or indirectly............ provided that the Letter of Withdrawal is received by the Procuring Entity prior to the deadline prescribed for submission and receipt of bids..........................28 If bids are not sealed and marked as required.... through a Letter of Withdrawal.............................. respectively..28 All envelopes shall:... pursuant to ITB Clause 18............................22 Late Bids......................................................................23 Modification and Withdrawal of Bids.........................................28 SUBMISSION AND OPENING OF BIDS......

.... and/or if the submitted total bid price exceeds the ABC unless otherwise provided in ITB Clause 13..................................... If the withdrawing Bidder’s representative is in attendance..... however....................................................... further...........30 In the case of an eligible foreign Bidder as described in ITB Clause 5........ bids that fail to include any requirement or are incomplete or patently insufficient shall be considered as “failed”.. the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present..... using a non-discretionary “pass/fail” criterion...... if any.30 Each partner of a joint venture agreement shall likewise submit the requirements in ITB Clauses 12 and 12... the BAC shall keep the bid envelopes of the said failed Bidder 85 ....... Otherwise....... the BAC shall rate the bid concerned as “failed”........29 The BAC shall open the first bid envelopes of Bidders in public as specified in the BDS to determine each Bidder’s compliance with the documents prescribed in ITB Clause 12.... and the envelope containing the corresponding withdrawn bid shall be returned to the Bidder unopened............................ the BAC shall forthwith open the second bid envelope of each remaining eligible bidder whose first bid envelope was rated “passed”......... immediately after determining compliance with the requirements in the first envelope..................30 If a Bidder has previously secured a certification from the Procuring Entity to the effect that it has previously submitted the above-enumerated Class “A” Documents.............. the BAC shall rate the said first bid envelope as “passed”...................... Submission of documents required under ITB Clauses 12 to 12 by any of the joint venture partners constitutes compliance.................. If the representative is not in attendance...................30 A Bidder determined as “failed” has three (3) calendar days upon written notice or........................ In this regard..... upon verbal notification....................administrative.... that the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof.... civil and criminal sanctions as prescribed by RA 9184 and its IRR.... If a failed Bidder signifies his intent to file a motion for reconsideration.... The second envelope of each complying bidder shall be opened within the same day.......... that the motion for reconsideration shall not be granted if it is established that the finding of failure is due to the fault of the Bidder concerned: Provided......... if present at the time of bid opening.................................29 Unless otherwise specified in the BDS.......... the Class “A” Documents described in ITB Clause 12 may be substituted with the appropriate equivalent documents. In case one or more of the requirements in the second envelope of a particular bid is missing....... provided that the corresponding Letter of Withdrawal contains a valid authorization requesting for such withdrawal.. The Bidder may withdraw its bid prior to the deadline for the submission and receipt of bids........ items (i) to (v).............. ... within which to file a request or motion for reconsideration with the BAC: Provided.............24 Opening and Preliminary Examination of Bids ...................... it shall be rated “passed” for that particular requirement.... subject to appropriate administrative sanctions...............29 .. the said certification may be submitted in lieu of the requirements enumerated in ITB Clause 12............29 Letters of withdrawal shall be read out and recorded during bid opening........... incomplete or patently insufficient.............................. 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.... issued by the country of the foreign Bidder concerned....... For this purpose............. ............................ the bid shall be returned unopened by registered mail............... If a bidder submits the required document................... the original bid and all copies thereof shall be returned to the representative during the bid opening..........

.. subject to post-qualification and submission of all the documentary requirements under these Bidding Documents................................ and (c) the business has 86 ............unopened and/or duly sealed until such time that the motion for reconsideration or protest has been resolved........................31 ()x If the Domestic Entity/Bidder refuses to accept the award of contract at the amount of the Foreign Bid or bid offered by a non-Philippine national within two (2) calendar days from receipt of written advice from the BAC................. unless otherwise allowed in the case of ITB Clause 26. their bid price............................................................................31 .... as a minimum: (a) names of Bidders....31 Any effort by a bidder to influence the Procuring Entity in the Procuring Entity’s decision in respect of bid evaluation.......... (b) habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by his bid........................ 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...... bid comparison or contract award will result in the rejection of the Bidder’s bid...................... corporation................. the Procuring Entity may ask in writing any Bidder for a clarification of its bid............. and post-qualification of the bids.......... findings of preliminary examination................................. All responses to requests for clarification shall be in writing.............................................. .....31 ...................31 ............ ................................................................ comparison................................................................................. ..........................31 ()u The preference shall be applied when (i) the lowest Foreign Bid is lower than the lowest bid offered by a Domestic Bidder... SEC (in case of partnerships and corporations).31 To assist in the evaluation..... 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................... or (ii) the lowest bid offered by a nonPhilippine national is lower than the lowest bid offered by a Domestic Entity..........................31 ()w In the event that (i) the lowest bid offered by a Domestic Entity does not exceed the lowest Foreign Bid as increased... and (b) attendance sheet........................................................30 The Procuring Entity shall prepare the minutes of the proceedings of the bid opening that shall include...........30 EVALUATION AND COMPARISON OF BIDS......................................................... as well as its Secretariat and TWG................... The BAC members shall sign the abstract of bids as read................................26 Clarification of Bids .27 Domestic Preference......................31 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: .......... the lowest Foreign Bid or the bid offered by a non-Philippine national shall be increased by fifteen percent (15%)...... or CDA (in case of cooperatives) that the (a) sole proprietor is a citizen of the Philippines or the partnership. bid security........... ..31 A Bidder may be granted preference as a Domestic Entity subject to the certification from the DTI (in case of sole proprietorships). or association is duly organized under the laws of the Philippines with at least seventy five percent (75%) of its interest or outstanding capital stock belonging to citizens of the Philippines......... the Procuring Entity shall award to the bidder offering the Foreign Bid or the non-Philippine national................................ including its staff and personnel............... or (ii) the lowest bid offered by a non-Philippine national as increased....................... cooperative......... as the case may be........... as the case may be......25 Process to be Confidential .........31 ()v For evaluation purposes....... then the Procuring Entity shall award the contract to the Domestic Bidder/Entity at the amount of the lowest Foreign Bid or the bid offered by a non-Philippine national.......................................31 Members of the BAC...............................

...... Total calculated bid prices........ discounts and other modifications..... as evaluated and corrected for computational errors. in order to determine the Lowest Calculated Bid........ pursuant to ITB Clause 24..........................32 The Procuring Entity's BAC shall immediately conduct a detailed evaluation of all bids rated “passed............................ automatically disqualified........................ Unless otherwise specified in the BDS..............33 Bids shall be evaluated on an equal footing to ensure fair competition. to establish the correct calculated prices of the bids.....33 Based on the detailed evaluation of bids............................. materials.............. materials or supplies of the growth or production of the Philippines....... Such bids.......... bids not addressing or providing all of the required items in the Schedule of Requirements including...................been in existence for at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid for this Project........................32 The Procuring Entity will undertake the detailed evaluation and comparison of bids which have passed the opening and preliminary examination of bids. where applicable....29 Post-Qualification. but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Procuring Entity...........................................28 Detailed Evaluation and Comparison of Bids.... local taxes....... shall be the basis for bid evaluation and comparison. all bidders shall be required to include in their bids the cost of all taxes... thus..................32 ()y The detailed evaluation of the financial component of the bids.....32 A Bidder may be granted preference as a Domestic Bidder subject to the certification from the DTI that the Bidder is offering unmanufactured articles.......... as the case may be..... or manufactured articles. or supplies manufactured or to be manufactured in the Philippines substantially from articles... the same shall be considered as non-responsive.... of the Philippines......32 ()aa Completeness of the bid........ as evaluated and corrected for computational errors.........................32 ........... but no price is indicated....... income tax.......... or manufacture............... value added tax (VAT).. production........... unless otherwise indicated in the BDS................................ including said taxes........................................... but not limited to.........................32 ()bb Arithmetical corrections.... The bid with the lowest price shall be identified as the Lowest Calculated Bid.... Consider computational errors and omissions to enable proper comparison of all eligible bids... It may also consider bid modifications... if allowed in the BDS..................... such as. those that comply with the above-mentioned requirements shall be ranked in the ascending order of their total calculated bid prices.......... In this regard.......... Any adjustment shall be calculated in monetary terms to determine the calculated prices.................. .... shall be considered non-responsive and........ or supplies of the growth.............................................................32 ()z The ranking of the total bid prices as so calculated from the lowest to the highest........33 The Procuring Entity’s evaluation of bids shall only be based on the bid price quoted in the Financial Bid Form.......................... where a required item is provided.................... the BAC shall consider the following in the evaluation of bids: ....... discounts and other modifications... Unless the ITB specifically allows partial bids..........................” using non-discretionary pass/fail criteria.33 The Procuring Entity shall determine to its satisfaction whether the Bidder that is evaluated as having submitted the Lowest Calculated Bid (LCB) complies with and 87 ...... which exceed the ABC shall not be considered................... materials..............32 The Lowest Calculated Bid shall be determined in two steps:... and other fiscal levies and duties which shall be itemized in the bid form and reflected in the detailed estimates............. to identify the Lowest Calculated Bid........... bill of quantities. For this purpose...33 .................... and.................... and....................................

....................33 Within a non-extendible period of three (3) calendar days from receipt by the bidder of the notice from the BAC that it submitted the LCB.33 ()ee Certificate of PhilGEPS Registration.............................................................. If the second Bidder....33 ()ff Other appropriate licenses and permits required by law and stated in the BDS.............. fails the post qualification.........33 ()cc Tax clearance per Executive Order 398.............. and recommend to the Head of the Procuring Entity the award of contract to the said Bidder at its submitted price or its calculated bid price....... suppresses or nullifies or tends to restrict.........34 Within a period not exceeding seven (7) calendar days from the date of receipt of the recommendation of the BAC...................... the Bidder shall submit the following documentary requirements:. ......... and.... or that there has been a change in the Bidder’s capability to undertake the project from the time it submitted its eligibility requirements...34 88 ..........34 A negative determination shall result in rejection of the Bidder’s Bid........................... it shall declare the said bid as the Lowest Calculated Responsive Bid..............34 .............. using a non-discretionary “pass/fail” criterion................................. or between the BAC and any of the Bidders.................... Should such review uncover any misrepresentation made in the eligibility and bidding requirements..... suppress or nullify competition.......... and so on until the Lowest Calculated Responsive Bid is determined for contract award..... 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 not to award the contract................................... the Head of the Procuring Entity shall approve or disapprove the said recommendation.......... or if the collusion is between or among the bidders themselves...................................... in which event the Procuring Entity shall proceed to the next Lowest Calculated Bid to make a similar determination of that Bidder’s capabilities to perform satisfactorily............ the procedure for post qualification shall be repeated for the Bidder with the next Lowest Calculated Bid.......... and 13.......... 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 period provided herein shall be fifteen (15) calendar days......30 Reservation Clause................................................. or between a Bidder and a third party......................... and make no assurance that a contract shall be entered into as a result of the bidding: ................................is responsive to all the requirements and conditions specified in ITB Clauses 5....... statements or documents........ 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..33 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...... In the case of GOCCs and GFIs................34 ()gg If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity...... including any act which restricts.......34 Notwithstanding the eligibility or post-qualification of a Bidder.......... however................. declare a failure of bidding at any time prior to the contract award................................................ as well as other information as the Procuring Entity deems necessary and appropriate.............................. Series of 2005............. whichever is lower...... the Procuring Entity reserves the right to reject any and all bids......................................... ..........33 ()dd Latest income and business tax returns in the form specified in the BDS...34 Based on the following grounds.......... without thereby incurring any liability.......33 If the BAC determines that the Bidder with the Lowest Calculated Bid passes all the criteria for post-qualification... 12............

.....................35 Notwithstanding the issuance of the Notice of Award.................................................... or.......................35 ()mm The Bidder with the Lowest Calculated Responsive Bid (LCRB) refuses........................... the Procuring Entity shall award the contract to the Bidder whose bid has been determined to be the LCRB..........................................35 ()nn Submission of the valid JVA...................................................36 89 ..... ........ within ten (10) calendar days from receipt by the Bidder of the notice from the BAC that the Bidder has the LCRB...................................................................... which contract has been provided in the Bidding Documents.................................................. and .......................... if required................... 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 Contract Award... the Procuring Entity shall send the Contract Form to the Bidder............................. and no award is made.......... award of contract shall be subject to the following conditions:.............................35 In addition................ without justifiable cause to accept the award of contract.............................. .............................................................................35 ()kk All prospective Bidders are declared ineligible..................................................................36 ()rr Contract Agreement..........................36 ()qq Approval by higher authority.........36 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 Signing of the Contract....................................35 ()ii For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the GOP as follows: .................................35 ()iii If the source of funds for the project has been withheld or reduced through no fault of the Procuring Entity.......................................... the successful Bidder shall post the required performance security and sign and date the contract and return it to the Procuring Entity....... the Procuring Entity may likewise declare a failure of bidding when:...................................................................36 Within ten (10) calendar days from receipt of the Notice of Award.....36 ()pp Signing of the contract as provided in ITB Clause 32...................................................................................................................................36 At the same time as the Procuring Entity notifies the successful Bidder that its bid has been accepted................ through a Notice of Award received personally or sent by registered mail or electronically..........35 ..............35 AWARD OF CONTRACT........................................................... Schedule of Requirements................................................. or......35 ()ii If the project is no longer necessary as determined by the head of the procuring entity.............. financially or technically feasible as determined by the head of the procuring entity................................36 At the time of contract award........ the Procuring Entity shall not increase or decrease the quantity of goods originally specified in Section VI........35 ()ll All bids fail to comply with all the bid requirements or fail post-qualification...................................................... the Procuring Entity shall notify the successful Bidder in writing that its bid has been accepted.................()hh If the Procuring Entity’s BAC is found to have failed in following the prescribed bidding procedures..............36 ...................................35 ()i If the physical and economic conditions have significantly changed so as to render the project no longer economically...................................................35 Prior to the expiration of the period of bid validity............. and.......35 ()jj No bids are received.......................................36 The following documents shall form part of the contract:................................................................................................................................................................35 Subject to ITB Clause 29............................................... if applicable.......................... incorporating therein all agreements between the parties...................35 ()oo Posting of the performance security in accordance with ITB Clause 33.......

..........................................................................................................................................................................37 ()aaa Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.......................44 ................................................................................................. the Procuring Entity shall issue its Notice to Proceed to the Bidder...................................................................37 Five percent (5%)............ BID DATA SHEET............................................................... if applicable...........................33 Performance Security.......................................................36 ()uu Performance Security.............................................................................. and all other documents/statements submitted........... the following terms shall be interpreted as indicated:............................................................................................................36 ()ww Notice of Award of Contract......................................................36 ()vv Credit line in accordance with ITB Clause 5........36 ()tt Winning bidder’s bid............... however......34 Notice to Proceed...37 .........................................................................37 ()yy Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank.................................................................................................. which date shall not be later than seven (7) calendar days from the issuance of the Notice to Proceed.........................................................................................................()ss Bidding Documents.......................................................................................48 In this Contract..................................................................................... However if no Bidder passed post-qualification........................ the BAC shall declare the bidding a failure and conduct a re-bidding with re-advertisement. including the Technical and Financial Proposals.............................................................37 (Equal to Percentage of the Total Contract Price)..................37 Form of Performance Security............... GENERAL CONDITIONS OF CONTRACT...........................................................................................48 90 ..................37 Thirty percent (30%)...........36 .........37 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.......................1 Definitions..........................37 ()bbb Any combination of the foregoing......... in which event the Procuring Entity shall initiate and complete the post qualification of the second Lowest Calculated Bid......36 To guarantee the faithful performance by the winning Bidder of its obligations under the contract.. if issued by a foreign bank..............37 Proportionate to share of form with respect to total amount of security............................37 Within three (3) calendar days from the date of approval of the contract by the appropriate government approving authority....................... that it shall be confirmed or authenticated by a Universal or Commercial Bank..............................37 SECTION III................................. 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...................36 ()xx Other contract documents that may be required by existing laws and/or specified in the BDS...........37 ()zz Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided.................................................................................................................................37 Amount of Performance Security........................36 The performance security shall be denominated in Philippine Pesos and posted in favor of the Procuring Entity in an amount equal to the percentage of the total contract price in accordance with the following schedule:.......... The procedure shall be repeated until the LCRB is identified and selected for contract award....................................38 SECTION IV.............................. and/or ...................37 The contract effectivity date shall be provided in the Notice to Proceed by the Procuring Entity...................... and...............

.............................................................. provision of technical assistance.....................48 ()jjj “The Procuring Entity’s country” is the Philippines. such as installation.... by misusing the position in which they are placed........... equipment.......49 Unless otherwise provided in the SCC..... or firm supplying/manufacturing the Goods and Services under this Contract and named in the SCC....... and any other incidental services..................................... machinery............. and Coercive Practices........ training.............................. spare parts..............................49 ()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.......... on behalf of the Government... others.....49 ...................................................................................... such as transportation and insurance..... means the place or places named in the SCC.. the terms set forth below as follows: .. Performance of all obligations shall be reckoned from the Effective Date of the Contract.....()ccc “The Contract” means the agreement entered into between the Procuring Entity and the Supplier....... the Procuring Entity as well as the bidders...................... as recorded in the Contract Form signed by the parties.... ..............48 ()nnn “Day” means calendar day.. or induce others to do so.............................. manufacturer distributor.. as named in the SCC......... Fraudulent............................. contractors........................................................ commissioning.................................................... other materials and/or general support services which the Supplier is required to provide to the Procuring Entity under the Contract........................48 ()kkk “The Supplier” means the individual contractor.48 ()eee “The Goods” means all of the supplies........................................................................................... and similar acts as provided in Republic Act 3019.....................................” where applicable...........................48 ()ggg “GCC” means the General Conditions of Contract contained in this Section..................................... or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution........................................................1 Corrupt....48 ()iii “The Procuring Entity” means the organization purchasing the Goods............................ for the purposes of this provision......... and includes collusive practices among Bidders (prior to or after bid 91 ........ Collusive.................... receiving............. In pursuance of this policy.... and it includes the offering............................49 ()i "corrupt practice" means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves...........................................48 ()ppp “Verified Report” refers to the report submitted by the Implementing Unit to the Head of the Procuring Entity 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....... whether or not the public officer profited or will profit thereby........ or suppliers shall observe the highest standard of ethics during the procurement and execution of this Contract............48 ()fff “The Services” means those services ancillary to the supply of the Goods....................... entering......... into any contract or transaction manifestly and grossly disadvantageous to the same......... and other such obligations of the Supplier covered under the Contract........ the Procuring Entity: .............. including all attachments and appendices thereto and all documents incorporated by reference therein..............48 ()mmm “The Project Site............48 ()ddd “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations..49 ()qqq defines......................................................... giving.......................48 ()hhh “SCC” means the Special Conditions of Contract.....48 ()lll The “Funding Source” means the organization named in the SCC............................48 ()ooo The “Effective Date” of the contract will be the date of receipt by the Supplier of the Notice to Proceed or the date provided in the Notice to Proceed..............

...... servants or workmen..........................51 The GOODS and Related Services to be provided shall be as specified in Section VI.. or negligence.......50 .........51 92 ..............5 Scope of Contract....................51 This Contract shall include all such items........... non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition.... The Supplier will be responsible for the acts.......................... which shall be the binding and controlling language for all matters relating to the meaning or interpretation of this Contract............ although not specifically mentioned....................50 ........ if allowed in the BDS.... or facsimile to such Party at the address specified in the SCC................49 ()iii “collusive practices” means a scheme or arrangement between two or more Bidders........................................................................... or those of its agents............49 ()rrr 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.. 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 1.... that can be reasonably inferred as being required for its completion as if such items were expressly mentioned herein........4 Notices............... will seek to impose the maximum civil.. Any such notice..... or their property to influence their participation in a procurement process..................................... All correspondence and other documents pertaining to this Contract exchanged by the parties shall be written in English.............50 This Contract has been executed in the English language........................................... whichever is later.................................. with or without the knowledge of the Procuring Entity.. ................. non-competitive levels.................. its agents......................50 This Contract shall be interpreted in accordance with the laws of the Republic of the Philippines........51 Subcontracting of any portion of the Goods........ servants or workmen as fully as if these were the Supplier’s own acts........... Borrower or Procuring Entity....................................... request................... request.......... or consent shall be deemed to have been given or made when received by the concerned party............................ or when sent by registered mail......... subject to compliance with the required qualifications and the approval of the Procuring Entity...49 ()v “obstructive practice” is.................... either in person or through an authorized representative of the Party to whom the communication is addressed........... does not relieve the Supplier of any liability or obligation under this Contract.............2 Inspection and Audit by the Funding Source......................................... defaults... .............................................51 Subcontractors disclosed and identified during the bidding may be changed during the implementation of this Contract................... or affect the execution of a contract................................... designed to establish bid prices at artificial................................................ as appropriate. directly or indirectly.50 Further the Funding Source........50 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 4..................50 Any notice.......................................51 .....................51 ........submission) designed to establish bid prices at artificial...........................6 Subcontracting........................ persons..................... telegram.... Any additional requirements for the completion of this Contract shall be provided in the SCC........ which shall be effective when delivered and duly received or on the notice’s effective date.....................................................................50 .......................... or consent required or permitted to be given or made pursuant to this Contract shall be in writing................................ telex............................................................... Schedule of Requirements.....49 ()iv “coercive practices” means harming or threatening to harm...........................3 Governing Law and Language....... and negligence of any subcontractor.................................................................... defaults..........

........ unless otherwise directed by the President or in cases allowed under Annex “D” of RA 9184...52 Pursuant to GCC Clause 9........ 9184 and its IRR or except as provided in this Clause............................................ .......................................................8 Prices............... and upon fulfillment of other obligations stipulated in this Contract............................... accompanied by an invoice describing........................52 93 ...........................52 Payments shall be made only upon a certification by the Head of the Procuring Entity 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...52 ()ttt On Delivery: Seventy percent (70%) 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............................ the currency in which payment is made to the Supplier under this Contract shall be in Philippine Pesos....................... with the exception of any change in price resulting from a Change Order issued in accordance with GCC Clause 28...................... the Goods delivered and/or Services performed.. as appropriate....51 For the given scope of work in this Contract as awarded..................52 For Goods supplied from abroad.. and by documents submitted pursuant to the SCC provision for GCC Clause 5.............................................................................................51 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... ................ all bid prices are considered fixed prices............52 Advance payment shall be made only after prior approval of the President.51 Whenever the performance of the obligations in this Contract requires that the Supplier obtain permits.............................................................. and shall not exceed fifteen percent (15%) of the Contract amount...................................... 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 16........... payments shall be made promptly by the Procuring Entity.............................. the Procuring Entity shall.................................. make its best effort to assist the Supplier in complying with such requirements in a timely and expeditious manner.....A.........52 ..........................52 Unless otherwise provided in the SCC...................... ...................................................... 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......... import......52 The Supplier’s request(s) for payment shall be made to the Procuring Entity in writing....................................................51 .....9 Payment................. but in no case later than sixty (60) days after submission of an invoice or claim by the Supplier. approvals....................51 ...........................................................................7 Procuring Entity’s Responsibilities........... the terms of payment shall be as follows:................................................................................................................................................. except under extraordinary circumstances and upon prior approval of the GPPB in accordance with Section 61 of R....................10 Advance Payment and Terms of Payment.....................52 ()sss On Contract Signature: Ten percent (10%) 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.......... if so needed by the Supplier...................51 The Procuring Entity shall pay all costs involved in the performance of its responsibilities in accordance with GCC Clause 5....... and other licenses from local public authorities......................................................................... and therefore not subject to price escalation during contract implementation.......................................................... ........ Bidding Forms......... ........................

.............................. 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............................... enumerated in GCC Clause 13 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............................................................................................ other than this Contract itself.......53 The Supplier..............................................53 ......52 All progress payments shall first be charged against the advance payment until the latter has been fully exhausted........................................53 ()www The Supplier has no pending claims for labor and materials filed against it........53 In case of a reduction of the contract value.................... drawing.....53 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:....... without the Procuring Entity’s prior written consent......................................................... pattern...............()uuu 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............................................................................................ shall be entirely responsible for all the necessary taxes............... the Procuring Entity shall allow a proportional reduction in the original performance security.53 The Supplier shall not......................................11 Taxes and Duties..........................................................................54 Any document.............................................................. disclose this Contract..53 .......... 53 ()xxx Other terms specified in the SCC.......................53 ........................................................................54 ................. or any specification........ except for purposes of performing the obligations in this Contract................ and......................................15 Inspection and Tests................................. 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................................................ plan........................ stamp duties...........13 Use of Contract Documents and Information..... or any provision thereof............................ and other such levies imposed for the completion of this Contract.................53 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........................................................................................... Any such disclosure shall be made in confidence and shall extend only as far as may be necessary for purposes of such performance......12 Performance Security................. whether local or foreign.......................................53 ()vvv There are no pending claims against the Supplier or the surety company filed by the Procuring Entity...54 ... the successful Bidder shall furnish the performance security in any the forms prescribed in the ITB Clause 33.. ... license fees......................14 Standards....... or information furnished by or on behalf of the Procuring Entity.....................54 94 ...............................................................53 The performance security shall remain valid until issuance by the Procuring Entity of the Certificate of Final Acceptance........................................ sample.........................................................................................................................................................................53 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 parties.....................................................

. and/or at the goods’ final destination... shall be furnished to the inspectors at no charge to the Procuring Entity...55 The Supplier further warrants that all Goods supplied under this Contract shall have no defect. the Supplier shall.. unused.....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. ....... except when the technical specifications required by the Procuring Entity provides otherwise.... upon giving a notice pursuant to GCC Clause 4................ within the period specified in the SCC and with all reasonable speed........... The Supplier shall provide the Procuring Entity with results of such inspections and tests... of the identity of any representatives retained for these purposes. 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....... however..... The said amounts shall only be released after the lapse of the warranty period specified in the SCC................................... either retention money in an amount equivalent to at least ten percent (10%) of the final payment.... at point of delivery..... repair or replace the defective Goods or parts thereof....... The obligation for the warranty shall be covered by........... shall release the Supplier from any warranties or other obligations under this Contract............55 .........54 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... of the most recent or current models.... and that they incorporate all recent improvements in design and materials.... fails to remedy the defect(s) within the period specified in GCC Clause 16.....55 If the Supplier.. all traveling and board and lodging expenses........ having been notified........ Technical Specifications shall specify what inspections and/or tests the Procuring Entity requires and where they are to be conducted........ materials.... including access to drawings and production data... at no cost to the Procuring Entity............. Upon receipt of such notice.... the inspections and tests may be conducted on the premises of the Supplier or its subcontractor(s).. If conducted on the premises of the Supplier or its subcontractor(s)........................... in a timely manner... at the Supplier’s option.......... or a special bank guarantee equivalent to at least ten percent (10%) of the Contract Price or other such amount if so specified in the SCC..........................54 If applicable.......................................................... the Procuring Entity may proceed to take such 95 .. and shall repeat the test and/or inspection.............55 The Supplier warrants that the Goods supplied under the Contract are new........ a warranty shall be required from the Supplier for a minimum period specified in the SCC.......................55 In order to assure that manufacturing defects shall be corrected by the Supplier....... arising from design.... but not limited to.......54 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........ provided.....................16 Warranty........54 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... that the Supplies delivered are free from patent and latent defects and all the conditions imposed under this Contract have been fully met..................... The Procuring Entity shall notify the Supplier in writing..... ............. all reasonable facilities and assistance.........55 The Procuring Entity shall promptly notify the Supplier in writing of any claims arising under this warranty....................... 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... without cost to the Procuring Entity....... The SCC and Section VII...........

..... otherwise known as the “Alternative Dispute Resolution Act of 2004.... as to the matter in dispute......................”......................................... unless an extension of time is agreed upon pursuant to GCC Clause 28 without the application of liquidated damages. and no arbitration in respect of this matter may be commenced unless such notice is given.................................................. without prejudice to its other remedies under this Contract and under the applicable law..55 ................ Schedule of Requirements.. 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 18.................... as liquidated damages...56 Notwithstanding any reference to arbitration herein...... deduct from the Contract Price.....56 If after thirty (30) days..... 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.......56 In the case of a dispute between the Procuring Entity and the Supplier.................... the parties have failed to resolve their dispute or difference by such mutual consultation.................. the Procuring Entity shall............ and the Procuring Entity shall pay the Supplier any monies due the Supplier............................................. as hereinafter provided...56 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...........55 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......18 Liquidated Damages.............17 Delays in the Supplier’s Performance..... without prejudice to other courses of action and remedies open to it................... the Supplier or its Subcontractor(s) should encounter conditions impeding timely delivery of the Goods and/or performance of Services........... the dispute shall be resolved in accordance with Republic Act 9285 (“R.... and upon causes provided for under GCC Clause 21.......56 Subject to GCC Clauses 17 and 21................... the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation.19 Settlement of Disputes.................................................... As soon as practicable after receipt of the Supplier’s notice........ The maximum deduction shall be ten percent (10%) of the amount of contract..56 96 ..................... in which case the extension shall be ratified by the parties by amendment of Contract.............56 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................................ its likely duration and its cause(s).... the Procuring Entity shall evaluate the situation and may extend the Supplier’s time for performance...... Once the maximum is reached.............................. 9285”)....... the Supplier shall promptly notify the Procuring Entity in writing of the fact of the delay.......... the parties shall continue to perform their respective obligations under the Contract unless they otherwise agree.................................................... 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..................................55 Except as provided under GCC Clause 21................................remedial action as may be necessary.......... Arbitration may be commenced prior to or after delivery of the Goods under this Contract......................................................... the Procuring Entity shall rescind the Contract pursuant to GCC Clause 22........ 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...............................55 If at any time during the performance of this Contract..A..56 ...56 .............. then either the Procuring Entity or the Supplier may give notice to the other party of its intention to commence arbitration.........

................. quarantine restrictions.....22 Termination for Default......... upon such terms and in such manner as it deems appropriate....................57 ()yyy Outside of force majeure..............57 If a force majeure situation arises..................... provided that this limitation shall not apply to the cost of repairing or replacing defective equipment............................................................................. fires.............................................. 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..................... the Supplier is unable to deliver or perform any or all of the Goods................ set forth in the SCC........... ..............................57 The Procuring Entity shall terminate this Contract for default when any of the following conditions attends its implementation:................ the Supplier shall continue performance of this Contract to the extent not terminated...... Unless otherwise directed by the Procuring Entity in writing......... subject to additional provisions..............57 ()zzz As a result of force majeure... wars or revolutions................................... but not limited to...............................................................57 .58 97 ............................................... the Supplier shall continue to perform its obligations under the Contract as far as is reasonably practical.........57 ()aaaa The Supplier fails to perform any other obligation under the Contract............................................ 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................ and the Supplier shall be liable to the Procuring Entity for any excess costs for such similar Goods or Services....... ................57 The Supplier shall not be liable for forfeiture of its performance security............ or which though foreseen.. and in the case of infringement of patent rights..... However......................... or.................................... epidemics.............57 Except in cases of criminal negligence or willful misconduct...... In this regard.........................57 The Supplier’s liability under this Contract shall be as provided by the laws of the Republic of the Philippines......... the Supplier shall promptly notify the Procuring Entity in writing of such condition and the cause thereof...57 For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used interchangeably.................................. Such events may include... if any...............................................................21 Force Majeure.......................... It shall not include ordinary unfavorable weather conditions... floods.......... a fortuitous event or force majeure shall be interpreted to mean an event which the Contractor could not have foreseen............................. and such failure amounts to at least ten percent (10%) of the contact price..................20 Liability of the Supplier......................................... acts of the Procuring Entity in its sovereign capacity.......... and shall seek all reasonable alternative means for performance not prevented by the force majeure............................ the aggregate liability of the Supplier to the Procuring Entity shall not exceed the total Contract Price.. and freight embargoes........... was inevitable........ the Procuring Entity may procure................58 In the event the Procuring Entity terminates this Contract in whole or in part.......... or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Supplier prior to the delay.................. the Supplier fails to deliver or perform any or all of the Goods within the period(s) specified in the contract............................... and any other cause the effects of which could have been avoided with the exercise of reasonable diligence by the Contractor............... amounting to at least ten percent (10%) of the contract price........ ..... if applicable........................... Goods or Services similar to those undelivered.................... for any of the reasons provided under GCC Clauses 22 to 25......................57 ..............

.. at any time for its convenience................................. the Implementing Unit shall.................................................. means or methods................. the fact of loss must be established under oath by the Supplier to the satisfaction of the Procuring Entity before recovery may be made...........................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.....................59 The following provisions shall govern the procedures for termination of this Contract:..59 ()dddd Corrupt........................ The Head of the Procuring Entity may terminate a contract for the convenience of the Government if he has determined the existence of conditions that make Project Implementation economically................59 ()gggg Any other act analogous to the foregoing.. and coercive practices as defined in ITB Clause 3................................. before or during the implementation of this Contract...............................59 ......................... the Head of the Procuring Entity shall terminate this Contract only by a written notice to the Supplier conveying the termination of this Contract........59 ()ffff Using adulterated materials.......................... but not limited to.. the following:. or upon its own initiative.... such as.................25 Termination for Unlawful Acts..................................................58 ..... and.............................. such as purchase of raw materials for goods specially manufactured for the Procuring Entity which cannot be sold in open market......................................................................24 Termination for Convenience.........23 Termination for Insolvency............ fortuitous event(s) or changes in law and national government policies................. the Procuring Entity may elect:........... with all relevant evidence attached...26 Procedures for Termination of Contracts............................................................................... within a period of seven (7) calendar days.... Before recovery may be made...........................59 ()eeee Drawing up or using forged documents..................... Unlawful acts include....................................................... in unlawful deeds and behaviors relative to contract acquisition and implementation........ or engaging in production contrary to rules of science or the trade.................. it shall be allowed to recover partially from this Contract..... the Procuring Entity may terminate this Contract.......................................58 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...........................................................59 The Procuring Entity may terminate this Contract in case it is determined prima facie that the Supplier has engaged........... The notice shall state:.............................58 ............... on a quantum meruit basis....................................................................... For Goods not yet performed and/or ready for delivery.......58 ()bbbb to have any portion delivered and/or performed and paid at the contract terms and prices........... verify the existence of such ground(s) and cause the execution of a Verified Report.....................................................59 .....59 98 ........ in whole or in part........59 ()iiii Upon recommendation by the Implementing Unit........................ but are not limited to.................. 59 ()hhhh Upon receipt of a written report of acts or causes which may constitute ground(s) for termination as aforementioned................................... and/or................................ financially or technically impractical and/or unnecessary..........58 If the Supplier suffers loss in its initial performance of the terminated contract.....................................58 The Procuring Entity may terminate this Contract. forfeit the Supplier's performance security and award the same to a qualified Supplier.....................58 ()cccc 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............................................... fraudulent.......

......... It shall serve a written notice to the Supplier of its decision and................................................74 BID FORM.......................... delivered.....101 CONTRACT AGREEMENT FORM....................59 ()iv special instructions of the Procuring Entity....................................................71 SECTION VIII..... either by inaction or by default..........................108 SECTION IX........................... and..............59 ()jjjj The Notice to Terminate shall be accompanied by a copy of the Verified Report..... SPECIAL CONDITIONS SECTION VI...........105 OMNIBUS SWORN STATEMENT..... If the Supplier fails to show cause after the lapse of the seven (7) day period.........59 ()ii the extent of termination.....29 Application. or performed before the Supplier’s receipt of the notice..................................................... All decisions recommended by the CTRC shall be subject to the approval of the Head of the Procuring Entity.....60 ()llll The Procuring Entity may...........................60 .. FOREIGN-ASSISTED PROJECTS.. the Head of the Procuring Entity shall issue an order terminating this Contract.......................................... and.................................................................28 Contract Amendment.59 ()iii an instruction to the Supplier to show cause as to why this Contract should not be terminated........ ................60 ()nnnn The Head of the Procuring Entity may create a Contract Termination Review Committee (CTRC) to assist him in the discharge of this function........................ The termination shall only be based on the ground(s) stated in the Notice to Terminate........... the Supplier shall submit to the Head of the Procuring Entity a verified position paper stating why this Contract should not be terminated...................138 99 .. BIDDING FORMS...........................................................................................................60 ....27 Assignment of Rights.................................70 SECTION VII....................................................................................... SCHEDULE OF OF CONTRACT.........109 BID FOR FOREIGN-ASSISTED PROJECTS.....................60 ....... whether in whole or in part..........61 REQUIREMENTS....................... .............()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.......................... TECHNICAL SPECIFICATIONS....................................... .....................60 ()oooo 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............................................... 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................106 BANK GUARANTEE FORM INVITATION TO FOR ADVANCE PAYMENT.60 SECTION V............................. this Contract is deemed terminated from receipt of the Supplier of the notice of decision.. if any.............. ..60 ()kkkk Within a period of seven (7) calendar days from receipt of the Notice of Termination..............60 ()mmmm Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper... the Head of the Procuring Entity shall decide whether or not to terminate this Contract............. unless otherwise provided.

............144 WORLD BANK BID DATA SHEET............... and Coercive Practices) which shall read as follows:...... except GCC Clause 2.....144 The ADB adopts the provisions of the Special Conditions of Contract of the GOP as contained in the Harmonized Philippine Bidding Documents dated ________..... ..ASIAN DEVELOPMENT BANK BID DATA SHEET.....146 100 ..1 (Corrupt.....140 ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS OF CONTRACT..................................... Collusive.... .... Fraudulent..............................

if our Bid is accepted. We understand that you are not bound to accept the lowest or any Bid you may receive. We undertake. we. the undersigned. We agree to abide by this Bid for the Bid Validity Period specified in BDS provision for ITB Clause 18 and it shall remain binding upon us and may be accepted at any time before the expiration of that period. state “None”) Until a formal Contract is prepared and executed. are listed below:6 Name and address of agent Amount and Currency Purpose of Commission or gratuity (if none. use IFB. We certify/confirm that we comply with the eligibility requirements as per ITB Clause 5 of the Bidding Documents. and to contract execution if we are awarded the contract. 5 If ADB. Commissions or gratuities. the receipt of which is hereby duly acknowledged. 101 . JICA or WB. amounts. Dated this ________________ day of ________________ 20______. we undertake to provide a performance security in the form. shall be binding upon us. 6 Applicable only if the Funding Source is the ADB. if any. 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. this Bid. If our Bid is accepted. JICA and WB funded projects.Bid Form Date: Invitation to Bid5 No: To: [name and address of Procuring Entity] Gentlemen and/or Ladies: Having examined the Bidding Documents including Bid Bulletin Numbers [insert numbers]. together with your written acceptance thereof and your Notice of Award. paid or to be paid by us to agents relating to this Bid. to deliver the goods in accordance with the delivery schedule specified in the Schedule of Requirements. and within the times specified in the Bidding Documents.

[signature] [in the capacity of] ____________________________ Duly authorized to sign Bid for and on behalf of 102 .

use IFB.For Goods Offered From Abroad Name of Bidder . JICA and WB funded projects. 4 x 5) 7 Unit Price Delivered Duty Unpaid (DDU) 8 Unit price Delivered Duty Paid (DDP) 9 Total Price delivered DDP (col 4 x 8) 7 If ADB. 4 Quantity of 1 Item 2 Description 3 Country of origin 5 Unit price CIF port of entry (specify port) or CIP named place (specify border point or place of destination) 6 Total CIF or CIP price per item (col. 103 . Invitation to Bid7 Number __. Page .

For Goods Offered From Within the Philippines Name of Bidder 1
Item

. Invitation to Bid8 Number . Page of 4
Quantity

. 10
Total Price delivered Final Destination (col 8 + 9) x 4

2
Description

3
Country of origin

5
Unit price EXW per item

6
Cost of local labor, raw material, and component2

7
Total price EXW per item (cols. 4 x 5)

8
Unit prices per item final destination and unit price of other incidental services

9
Sales and other taxes payable per item if Contract is awarded

8 If ADB, JICA and WB funded projects, use IFB. 104

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) (b) (c) (d) (e) (f) the Bid Form and the Price Schedule submitted by the Bidder; the Schedule of Requirements; the Technical Specifications; the General Conditions of Contract; the Special Conditions of Contract; and the Entity’s Notification 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 Signed, sealed, delivered by the the (for the Entity) (for the Supplier).

105

Omnibus Sworn Statement
REPUBLIC OF THE PHILIPPINES ) CITY/MUNICIPALITY OF ______ ) S.S. AFFIDAVIT 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 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 of [Name of Bidder] , I have full power and authority to do, execute and perform any and all acts necessary to represent it in the bidding for [Name of the Project] of the [Name of the Procuring Entity] ; 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 and/or to represent the [Name of Bidder] in the bidding as shown in the attached [state title of attached document showing proof of authorization (e.g., duly notarized Secretary’s Certificate issued by the corporation or the members of the joint venture)] ; 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:

c) Made an estimate of the facilities available and needed for the contract to be bid. and the project consultants by consanguinity or affinity up to the third civil degree. IN WITNESS WHEREOF. and the BAC Secretariat. and the BAC Secretariat. and d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the Project] . and 8. affecting the implementation of the Contract. members of the Bids and Awards Committee (BAC). the Technical Working Group. . 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. members of the Bids and Awards Committee (BAC). [Name of Bidder] complies with existing labor laws and standards. 7. and the project consultants by consanguinity or affinity up to the third civil degree. [Name of Bidder] is aware of and has undertaken the following responsibilities as a Bidder: a) Carefully examine all of the Bidding Documents. the head of the Project Management Office or the end-user unit. b) Acknowledge all conditions. local or otherwise. directors. and the BAC Secretariat. 20__ at ____________. I have hereunto set my hand this __ day of ___. _____________________________________ Bidder’s Representative/Authorized Signatory [JURAT] * This form will not apply for WB funded projects. the head of the Project Management Office or the end-user unit. the Technical Working Group. the Technical Working Group. members of the Bids and Awards Committee (BAC).If a sole proprietorship: I am not related to the Head of the Procuring Entity. and controlling stockholders of [Name of Bidder] is related to the Head of the Procuring Entity. Philippines. if any. If a partnership or cooperative: None of the officers and members of [Name of Bidder] is related to the Head of the Procuring Entity. If a corporation or joint venture: None of the officers.

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].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. and we hereby waive notice of any such change. addition. or modification. as instructed by the Supplier. We. 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. Yours truly. Signature and seal of the Guarantors [name of bank or financial institution] [address] [date] 108 . the [bank or financial institution] . which amends Clause 9 of the General Conditions of Contract to provide for advance payment. shall in any way release us from any liability under this guarantee. agree unconditionally and irrevocably to guarantee as primary obligator and not as surety merely. in the amount not exceeding [amount of guarantee in figures and words]. 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. [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].

the Procuring Entity should use the World Bank Bid Data Sheet and the Section V. The Procuring Entity shall allow the Bidders sufficient time to study the Bidding Documents.2 of the IRR of R. from the time the Invitation to Bid is advertised until the deadline for the submission and receipt of bids. and the World Bank. The Invitation to Bid shall be: (a) 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. and submit their bids.Section IX. Special Conditions of Contract of the GOP. if available. as certified by the head of the Bids and Awards Committee (BAC) Secretariat of the Procuring Entity concerned. Any such changes shall be introduced only through the Bid Data Sheet or through the Special Conditions of Contract. the Invitation to Bid should also indicate the following: 109 . Posted continuously in the Philippine Government Electronic Procurement System (PhilGEPS) website and the website of the Procuring Entity concerned. If the Funding Source is JICA. the Procuring Entity should use Section III. subject to Sections 21. and Posted at any conspicuous place reserved for this purpose in the premises of the Procuring Entity concerned from the time the Invitation to Bid is advertised until the deadline for the submission and receipt of bids. If the Funding Source is World Bank. and not by introducing changes in the standard wording of the Instructions to Bidders and the General Conditions of Contract. Bid Data Sheet and Section V. Special Conditions of Contract. A period of at least thirty (30) days for bid preparation shall be required. (b) (c) Apart from the essential items listed in the Bidding Documents. the Procuring Entity should use the ADB Bid Data Sheet and the ADB Special Conditions of Contract. The Procuring Entity shall use these PBDs with minimum changes as necessary to address project-specific conditions. (a) (b) (c) If the Funding Source is ADB. the Japan International Cooperation Agency (JICA). prepare and complete responsive bids.A. 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. both of the GOP. 9184.2.. Foreign-Assisted Projects Notes on Foreign-Assisted Projects This Section is intended to assist the Procuring Entity in providing the specific information for foreign-assisted projects of the Asian Development Bank (ADB).

(a) The date of availability of the Bidding Documents. (b) The place where the Bidding Documents may be purchased or the website where it may be downloaded. Instructions to Bidders as necessitated by the circumstances of the specific procurement. General Conditions of Contract. which shall be from the time the Invitation to Bid is first advertised/posted until the deadline for the submission and receipt of bids. The Invitation to Bid should be incorporated into the Bidding Documents. to provisions of Section II. The PROCURING ENTITY should specify in the BDS information and requirements specific to the circumstances of the Procuring Entity. In preparing this Section. (c) The deadline for the submission and receipt of bids from the last day of posting of the Invitation to Bid. and has to be prepared for each specific procurement. the processing of the procurement. specifying contractual requirements linked to the special circumstances of the Procuring Entity. the Procuring Entity’s country. Notes on the Bid Data Sheet This Section is intended to assist the Procuring Entity in providing the specific information in relation to the corresponding clauses in the ITB. the sector. must also be incorporated. Amendments and/or supplements to provisions of Section IV. as necessitated by the circumstances of the specific project. The provisions of this Section complement the GCC. Instructions to Bidders must be incorporated. and the Goods procured. 110 . General Conditions of Contract must be incorporated. The information contained in the Invitation to Bid must conform to the Bidding Documents and in particular to the relevant information in the BDS. the following aspects should be checked: Information that complements provisions of Section IV. the following aspects should be checked: (a) (b) Information that specifies and complements provisions of Section II. the applicable rules regarding Bid price and currency. 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. Notes on the Special Conditions of the Contract Similar to the Section III. Bid Data Sheet. Amendments and/or supplements. and (d) Any important bid evaluation criteria. and the Bid evaluation criteria that will apply to the Bids. In preparing this Section. if any. must also be incorporated.

General Conditions of Contract should be incorporated herein. no special condition which defeats or negates the general intent and purpose of the provisions of Section IV. 111 .However.

. administrative.........14 Furthermore............ INSTRUCTIONS BIDDERS....... ........................... persons.................... into any contract or transaction manifestly and grossly disadvantageous to the same........................14 ()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............ Fraudulent........ or their property to influence their participation in a procurement process..... giving.......................... The contracting strategy and basis of evaluation of lots is described in ITB Clause 28......................... and includes the offering........................ for purposes of this provision..................... In pursuance of this policy....... or affect the execution of a contract........................... directly or indirectly............................................................14 Further......... non-competitive levels............................................. 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.......... INVITATION TO BID......................................... and number of lots specific to this bidding are provided in the BDS..................... and similar acts as provided in RA 3019............................................................................... the Procuring Entity: ......................10 GENERAL....... 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.............13 Unless otherwise specified in the BDS......... or induce others to do so....14 ()v “obstructive practice” is............. Technical Specifications (hereinafter referred to as the “Goods”).... designed to establish bid prices at artificial..................... the Procuring Entity will seek to impose the maximum civil......6 TO SECTION II. whether or not the public officer profited or will profit thereby.....14 ()iv “coercive practices” means harming or threatening to harm.....2 Source of Funds................ ........ non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition.........................................1 Scope of Bid.............................3 Corrupt..... receiving..... identification................................. by misusing the position in which they are placed........ and Coercive Practices.............................. others.. Collusive............13 .13 ()iii “collusive practices” means a scheme or arrangement between two or more Bidders.................... 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 112 ......13 ............13 ()i “corrupt practice” means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves.... with or without the knowledge of the Procuring Entity....... or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution............................................13 ()a defines.. entering..13 ()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..............................13 The procuring entity named in the BDS (hereinafter referred to as the “Procuring Entity”) wishes to receive bids for supply and delivery of the goods as described in Section VII.. and includes collusive practices among Bidders (prior to or after bid submission) designed to establish bid prices at artificial..............................13 ............................. on behalf of the government..13 The name........................ the terms set forth below as follows:.............................Table of Contents SECTION I...............

..............15 ()i If the Bidder is an individual or a sole proprietorship.........15 ()f A Bidder has a relationship..14 All Bidders found to have conflicting interests shall be disqualified to participate in the procurement at hand.............. to all its officers and members...................... by consanguinity or affinity up to the third civil degree... On the part of the Bidder................................... civil............................ and..................... this does not limit the participation of subcontractors in more than one bid......................... .......................... or (c) of this Clause shall correspondingly apply to each of the members of the said JV........................16 113 ..................... ........... 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 (f) below: ...................... However......................... This will include a firm or an organization who lends............................15 ()j If the Bidder is a partnership............................................................ 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................................................16 ()o Corporations duly organized under the laws of the Philippines.............................................. the provisions of items (a)....................15 ()h 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...16 Unless otherwise provided in the BDS....................... ................15 ()e A Bidder has the same legal representative as that of another Bidder for purposes of this bid...... and the project consultants................... or temporarily seconds.........15 ()d A Bidder receives or has received any direct or indirect subsidy from any other Bidder.... without prejudice to the imposition of appropriate administrative. this Clause shall apply to the following persons:.........................5 Eligible Bidders.............. 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............................................................... as may be appropriate........ members of the Bids and Awards Committee (BAC)........ members of the Technical Working Group (TWG).............................................................15 Relationship of the nature described above or failure to comply with this Clause will result in the automatic disqualification of a Bidder. .......... the head of the Project Management Office (PMO) or the end-user unit..... 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................ or ..... members of the BAC Secretariat. and controlling stockholders..................... directors............. to the Bidder himself........................ directly or through third parties.................... ....14 ()c A Bidder has controlling shareholders in common with another Bidder......................................15 ()k If the Bidder is a corporation..15 ................. and criminal sanctions..............16 ()n 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......................................15 ()g A Bidder submits more than one bid in this bidding process. the following persons shall be eligible to participate in this bidding: .performance of a contract themselves or through independent auditors as reflected in the GCC Clause 2......................... to all its officers.........................4 Conflict of Interest...........................................................................15 In accordance with Section 47 of the IRR of RA 9184.......16 ()m Duly licensed Filipino citizens/sole proprietorships.................... (b)................................................................................................14 .......... and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines..15 ()l If the Bidder is a joint venture (JV).......

.......18 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......e...16 Unless otherwise provided in the BDS..... ... if any...................... as specified in the BDS:..... affecting the implementation of the contract. and specifications in the Bidding Documents.................................................. that Filipino ownership or interest of the joint venture concerned shall be at least sixty percent (60%)............17 .................... corporations.................................................. and (d) other factors that may affect the cost.................16 ()u When there is a need to prevent situations that defeat competition or restrain trade.......................... or associations of a country... adjusted to current prices using the National Statistics Office consumer price index........16 ()q Unless otherwise provided in the BDS.....................17 The NFCC................. including: (a) the location and the nature of this Project........................... must be at least equivalent to a percentage of the ABC stated in the BDS................ local or otherwise....................................... i...17 The Bidder is expected to examine all instructions......... included in the list issued by the GPPB.................................................. or associations of the Philippines.......... must be at least equal to the ABC to be bid:.... (b) operate under commercial law.................. corporations....17 The Bidder or its duly authorized representative shall submit a sworn statement in the form prescribed in Section VIII.............17 ()x Having made an estimate of the facilities available and needed for the contract to be bid....................................... terms..................................16 ()r When a Treaty or International or Executive Agreement as provided in Section 4 of the RA 9184 and its IRR allow foreign bidders to participate..........................17 The Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or a commitment from a Universal or Commercial Bank to extend a credit line in its favor if awarded the contract for this Project (CLC)................ the laws or regulations of which grant reciprocal rights or privileges to citizens............16 Government corporate entities may be eligible to participate only if they can establish that they (a) are legally and financially autonomous....................... and execution or implementation of this Project.... a group of two (2) or more persons/entities that intend to be jointly and severally responsible or liable for a particular contract: Provided.................................. ........16 ()t When the Goods sought to be procured are not available from local suppliers............................. ... forms.............17 ()w Having acknowledged all conditions........... (c) transportation facilities........................................... or...........()p Cooperatives duly organized under the laws of the Philippines........... duration.........18 114 ...........................................................17 The Bidder is responsible for the following:...........16 For this purpose. computed using the following formula... and (c) are not dependent agencies of the GOP or the Procuring Entity......................... however................... and......................................17 ()y Having complied with its responsibility to inquire or secure Supplemental/Bid Bulletin(s) as provided under ITB Clause 10......... ........................... and of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines.......... Bidding Forms as required in ITB Clause 12.....6 Bidder’s Responsibilities ................. contracts similar to the Project shall be those described in the BDS.....16 ()s Citizens.................................................. persons/entities forming themselves into a JV.............. the Bidder must have completed at least one contract similar to the Project the value of which..........................................................................16 Foreign bidders may be eligible to participate when any of the following circumstances exist........... and completed within the relevant period stated in the Invitation to Bid and ITB Clause 12.17 ()v Having taken steps to carefully examine all of the Bidding Documents............................... .... (b) climatic conditions..................................................

...........................19 ...................18 The Bidder should note that the Procuring Entity will accept bids only from those that have paid the nonrefundable fee for the Bidding Documents at the office indicated in the Invitation to Bid....... If the Bidder opts to disclose the name of the subcontractor during bid submission..................19 115 ............ or complexity of the contract to be bid...................18 Before submitting their bids........................7 Origin of Goods ........................ subject to ITB Clause 27....................... ........................ In the event that any subcontractor is found by the Procuring Entity to be ineligible..19 CONTENTS OF BIDDING DOCUMENTS........................ the Bidder is deemed to have become familiar with all existing laws................................................ the pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids........................................1..............................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...........................................................19 Bidders are encouraged to attend the pre-bid conference to ensure that they fully understand the Procuring Entity’s requirements.. however..... .19 Unless otherwise indicated in the BDS............ nature.........................4.................... the Bidder may subcontract portions of the Goods to an extent as may be approved by the Procuring Entity and stated in the BDS.......................................................... or when international participation will be more advantageous to the GOP...... regardless of the conduct or outcome of the bidding process...19 .................................................3...9 Pre-Bid Conference...8 Subcontracts........................................ to clarify and address the Bidders’ questions on the technical and financial components of this Project... 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........ Subcontractors must comply with the eligibility criteria and the documentary requirements specified in the BDS............19 .......2............................................................ acts and regulations of the Philippines which may affect this Project in any way.................................................. a longer period for the preparation of bids is necessary................. and the Procuring Entity will in no case be responsible or liable for those costs... subcontracting of any portion shall not relieve the Bidder from any liability or obligation that may arise from the contract for this Project... If the Procuring Entity determines that........................ by reason of the method........... ................................ 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.......... Unless otherwise specified in the BDS............ ...19 (b) The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids.........................1...................................................................................................................1...................... the Bidder is expected to know the changes and/or amendments to the Bidding Documents discussed during the pre-bid conference........ as specified in the BDS...................... the subcontracting of such portion of the Goods shall be disallowed....... a pre-bid conference shall be held at the venue and on the date indicated therein.19 ........ ordinances..... However.................19 ...18 The Bidder shall bear all costs associated with the preparation and submission of his bid........19 ....................................................................... the Bidder shall include the required documents as part of the technical component of its bid.................... decrees........................................ Non-attendance of the Bidder will in no way prejudice its bid...........................19 (a) If so specified in the BDS.........

............................................ ........iii.................................................................................10 Clarification and Amendment of Bidding Documents...........................21 (........... shall be written in English.....................1) name of the contract..............................1...........................20 ()i Registration certificate from the Securities and Exchange Commission (SEC)............................. The statement shall include................................................................12 Documents Comprising the Bid: Eligibility and Technical Components....20 PREPARATION OF BIDS.....21 (.... and..........20 .... Department of Trade and Industry (DTI) for sole proprietorship..21 ()iii Statement of all its ongoing and completed government and private contracts within the period stated in the BDS.............20 Class “A” Documents: ...............................2) date of the contract.............................................. Unless otherwise indicated in the BDS....................................... It shall be the responsibility of all Bidders who secure the Bidding Documents to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC.......20 ................................................iii........................20 ............................................................................................................. 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.................................................... the first envelope shall contain the following eligibility and technical documents:....6) end user’s acceptance or official receipt(s) issued for the contract............. in which case the English translation shall govern for purposes of interpretation of the bid...20 ()a Eligibility Documents – .................. or any proof of such registration as stated in the BDS.......................................... 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..............................................................21 (..............................................................21 ()ii Mayor’s permit issued by the city or municipality where the principal place of business of the prospective bidder is located............iii......................20 Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the Philippine Government Electronic Procurement System (PhilGEPS) and the website of the Procuring Entity concerned.......................3) kinds of Goods.......5) date of delivery......21 (.......iii...........................................Any statement made at the pre-bid conference shall not modify the terms of the Bidding Documents unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/Bid Bulletin..................iii..........4) amount of contract and value of outstanding contracts............ for each contract........ if completed..............................iii... including contracts awarded but not yet started........................... the following:........ Any modification to the Bidding Documents shall be identified as an amendment... ............ Supporting documents and printed literature furnished by the Bidder may be in another language provided they are accompanied by an accurate translation in English certified by the appropriate embassy or consulate in the Philippines................ as well as all correspondence and documents relating to the bid exchanged by the Bidder and the Procuring Entity.......... or Cooperative Development Authority (CDA) for cooperatives.... if any.................. if available........................20 The bid...20 Supplemental/Bid Bulletins may 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............................ However............................1......21 (. ...............................21 116 ....................................20 .........21 (............11 Language of Bid......................................................20 Bidders who have purchased the Bidding Documents may request for clarification on any part of the Bidding Documents for an interpretation...

........................... a ceiling may be applied to bid prices provided the following conditions are met: ..21 ()vi If applicable......... where applicable............................................................. stating the unit prices.....22 (a) Unless otherwise stated in the BDS..........................................................21 Class “B” Document: ............... For this purpose.................... total price per item............... for foreign-funded procurement........................................ it shall be accompanied by a certification by the Insurance Commission that the surety or insurance company is authorized to issue such instruments..................22 Unless otherwise stated in the BDS...................... If the Bidder opts to submit the bid security in the form of:..... and.................................................. which should not be earlier than two (2) years from bid submission....................................................22 ()e Any other document related to the financial component of the bid as stated in the BDS............. ............. it shall be accompanied by a confirmation from a Universal or Commercial Bank...... SEC.... shall be 117 ................................................................................................................................................................... the total amount and the expected countries of origin of the Goods to be supplied under this Project............................................ Bidding Forms.................22 ()iii Sworn statement in accordance with Section 25...............i...........................................22 (b) Unless otherwise indicated in the BDS................................................ in accordance with ITB Clauses 15 and 15.................22 ()d If the Bidder claims preference as a Domestic Bidder or Domestic Entity...........22 ()ii Conformity with technical specifications.................................................................................21 (.......2(a)(iv) of the IRR of RA 9184 and using the form prescribed in Section VIII........................................23 The Bidder shall complete the appropriate Price Schedules included herein..........23 The Bidder shall fill in rates and prices for all items of the Goods described in the Bill of Quantities.........14 Alternative Bids........................................ or ..................................... a certification from the DTI......................................... Bill of Quantities.....15 Bid Prices.................................................................22 ()c Financial Bid Form........... Bids not addressing or providing all of the required items in the Bidding Documents including........... 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.....i.. unless otherwise provided in the BDS......................2) a surety bond......... all bids that exceed the ABC shall not be accepted...............................23 ...22 ......................... stamped “received” by the Bureau of Internal Revenue (BIR) or its duly accredited and authorized institutions.................... for the preceding calendar year... .....()iv Audited financial statements........................................................................ and. or CDA issued in accordance with ITB Clause 27..................................................1) a bank draft/guarantee or an irrevocable letter of credit issued by a foreign bank. and...................................23 Alternative Bids shall be rejected......................... which includes bid prices and the bill of quantities and the applicable Price Schedules................................................21 (.............22 ..........21 ()i Bid security in accordance with ITB Clause 18.... or duly notarized statements from all the potential joint venture partners stating that they will enter into and abide by the provisions of the JVA in the instance that the bid is successful.............13 Documents Comprising the Bid: Financial Component.................................. as enumerated and specified in Sections VI and VII of the Bidding Documents........................................... 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...........21 ()v NFCC computation or CLC in accordance with ITB Clause 5....... . the financial component of the bid shall contain the following:.....21 ()b Technical Documents –................ the JVA in case the joint venture is already in existence....................................

..... the Bidder shall be free to use transportation through carriers registered in any eligible country...................................... and upon the recommendation of the Procuring Entity........24 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. promulgated after the date of bid opening.. ex showroom..................23 The terms Ex Works (EXW)............ or.................................. Paris................ where a required item is provided.............................. thus....... ex showroom..... automatically disqualified................................24 ()ii The price for inland transportation..........................1) on the components and raw material used in the manufacture or assembly of Goods quoted ex works or ex factory. listed in the BDS.........................considered non-responsive and.. In this regard................24 ()iii The price of other (incidental) services...........24 ()g For Goods offered from abroad:................................ in cases where the cost of the awarded contract is affected by any applicable new laws...................... including all customs duties and sales and other taxes already paid or payable:. regulations.................. ...........23 (........... and other local costs incidental to delivery of the Goods to their final destination............... Delivered Duty Paid (DDP)....................................... Cost.................. or off-the-shelf........................ Cost and Insurance Paid to (CIP)...............24 .. a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis.........................24 ()i Unless otherwise stated in the BDS...................................... listed in the BDS..24 ()ii The price of other (incidental) services.. Insurance and Freight (CIF)................................... shall be governed by the rules prescribed in the current edition of the International Commercial Terms (INCOTERMS) published by the International Chamber of Commerce........ or other acts of the GOP.................... except under extraordinary circumstances. bids denominated in foreign currencies shall be converted to Philippine 118 .............. the prices may be quoted in the currency(ies) stated in the BDS.................. if any................... Nevertheless..... In quoting the price.................. the same shall be considered as non-responsive......... the prices shall be quoted in Philippine Pesos.. and therefore not subject to price escalation during contract implementation.. for purposes of bid evaluation......i................. Extraordinary circumstances refer to events that may be determined by the National Economic and Development Authority in accordance with the Civil Code of the Philippines....... the Bidder may obtain insurance services from any eligible source country...... the price of the Goods shall be quoted DDP with the place of destination in the Philippines as specified in the BDS.................................24 All bid prices shall be considered as fixed prices...................... insurance.23 Prices indicated on the Price Schedule shall be entered separately in the following manner:....... pursuant to ITB Clause 24..23 ()i The price of the Goods quoted EXW (ex works..24 ()h For Goods that the Bidder will supply from within the Philippines....23 ()f For Goods offered from within the Procuring Entity’s country:.......................... if any......... as applicable)..........i....................2) on the previously imported Goods of foreign origin quoted ex warehouse.... ordinances..... However......................... ...........................................16 Bid Currencies........... and other trade terms used to describe the obligations of the parties.24 (.......... Similarly............ but no price is indicated.... but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Government......... A bid submitted with an adjustable price quotation shall be treated as non-responsive and shall be rejected..................24 Prices shall be quoted in the following currencies:...................................... or off-the-shelf and any Procuring Entity country sales and other taxes which will be payable on the Goods if the contract is awarded..........24 ()i For Goods that the Bidder will supply from outside the Philippines.. ex factory...... ex warehouse...........................................

..........26 ()n if a Bidder:.........................................................25 For biddings conducted by LGUs............ A Bidder granting the request shall not be required or permitted to modify its bid............. ................. bid securities shall be returned only after the bidder with the Lowest Calculated and Responsive Bid has signed the contract and furnished the performance security....................... the Procuring Entity may request Bidders to extend the period of validity of their bids..........................................................................................................................................................25 ............. ........................................ but his bid shall no longer be considered for further evaluation and award........................................... but in no case later than the expiration of the bid security validity period indicated in ITB Clause 18...............25 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................................25 In exceptional circumstances.......... payment of the contract price shall be made in Philippine Pesos...... .....................26 119 ................................ Any bid not accompanied by an acceptable bid security shall be rejected by the Procuring Entity as non-responsive............... prior to the expiration of the Bid validity period... the successful Bidder’s bid security will be discharged.............. or irrevocable letter of credit from other banks certified by the BSP as authorized to issue such financial statement.............. The request and the responses shall be made in writing...................................................................26 No bid securities shall be returned to bidders after the opening of bids and before contract signing....................... the Bidder may also submit bid securities in the form of cashier’s/manager’s check.................... Without prejudice on its forfeiture........26 ()iv submission of eligibility requirements containing false information or falsified documents........................................ bank draft/guarantee.26 ()iii fails to submit the requirements within the prescribed period or a finding against their veracity as stated in ITB Clause 29..........................................................currency based on the exchange rate as published in the BSP reference rate bulletin on the day of the bid opening............................................25 Unless otherwise specified in the BDS.....................................................................17 Bid Validity...26 The bid security may be forfeited:............................................25 The bid security in the amount stated in the BDS shall be equal to the percentage of the ABC in accordance with the following schedule:........................................................25 If so allowed in accordance with ITB Clause 16.... A Bidder may refuse the request without forfeiting its bid security........................25 ......................... The bid security described in ITB Clause 18 should also be extended corresponding to the extension of the bid validity period at the least............................................................................... but in no case later than the bid security validity period as indicated in the ITB Clause 18..... and the posting of the performance security pursuant to ITB Clause 33........................................................................................ upon submission of a written waiver of their right to file a motion for reconsideration and/or protest..............................................26 ()ii does not accept the correction of errors pursuant to ITB Clause 28............................. except to those that failed or declared as post-disqualified.......................................26 ()i withdraws its bid during the period of bid validity specified in ITB Clause 17.......26 Upon signing and execution of the contract pursuant to ITB Clause 32......................................26 The bid security should be valid for the period specified in the BDS....................................................18 Bid Security.................................... 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.............

...................................................... and the original of their financial component in another sealed envelope marked “ORIGINAL ........................................ sealing them all in an outer envelope marked “ORIGINAL BID”...... and which shall be submitted simultaneously... and the second shall contain the financial component of the bid.........................FINANCIAL COMPONENT”....... ........................................ after the Bidder had been adjudged as having submitted the Lowest Calculated and Responsive Bid.............................28 ...................................................................................27 ()ii fails to furnish performance security in accordance with ITB Clause 33........... and no substitute form shall be accepted.. and each and every page thereof shall be initialed.............28 Any interlineations................ submitting late Bids or patently insufficient bid.....27 ()vii withdrawal of a bid.... or........................................................................ except for unamended printed literature....... including the eligibility requirements under ITB Clause 12.......... .. or using the name of another for purposes of public bidding................................TECHNICAL COMPONENT”..................20 Sealing and Marking of Bids............................. for at least three (3) times within a year.................... All blank spaces shall be filled in with the information requested..................... except for valid reasons.28 Each copy of the first and second envelopes shall be similarly sealed duly marking the inner envelopes as “COPY NO.. the original shall prevail..........................................27 ()x any documented attempt by a bidder to unduly influence the outcome of the bidding in his favor..................... 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............................27 ()o if the successful Bidder:...27 ()i fails to sign the contract in accordance with ITB Clause 32...... or refusal to accept an award..27 ()xii all other acts that tend to defeat the purpose of the competitive bidding................................ 120 .......27 The bid................................... Bidding Forms on or before the deadline specified in the ITB Clauses 21 in two (2) separate sealed bid envelopes.... ... The first shall contain the technical component of the bid........................................... or enter into contract with the Government without justifiable cause.............................................26 ()vi allowing the use of one’s name..........()v submission of bids that contain false information or falsified documents. In the event of any discrepancy between the original and the copies..................................................................... ___ .....................19 Format and Signing of Bids................. ..................27 ()xi failure of the potential joint venture partners to enter into the joint venture after the bid is declared successful.....................................................27 ... or..........................27 ()viii refusal or failure to post the required performance security within the prescribed time..........................................................27 Forms as mentioned in ITB Clause 19 must be completed without any alterations to their format.............27 Bidders shall submit their bids through their duly authorized representative using the appropriate forms provided in Section VIII.. shall be signed............27 ()ix refusal to clarify or validate in writing its bid during post-qualification within a period of seven (7) calendar days from receipt of the request for clarification.................................... ___ – FINANCIAL COMPONENT” and the outer envelope as “COPY NO.. by the duly authorized representative/s of the Bidder...TECHNICAL COMPONENT” and “COPY NO............. such as habitually withdrawing from bidding..................................... erasures.....28 Bidders shall enclose their original eligibility and technical documents described in ITB Clause 12 in one sealed envelope marked “ORIGINAL .. or overwriting shall be valid only if they are signed or initialed by the duly authorized representative/s of the Bidder..............................27 The Bidder shall prepare and submit an original of the first and second envelopes as described in ITB Clauses 12 and 13..................................

..................................................23 Modification and Withdrawal of Bids.................................. for valid and justifiable reason.........................29 A Bidder may.......................................... ............................................................ A Bidder that withdraws its bid shall not be permitted to submit another bid.................. linked to its original bid marked as “TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and stamped “received” by the BAC........................................ and the imposition of administrative............................................... Withdrawal of a bid during this interval shall result in the forfeiture of the Bidder’s bid security.... These envelopes containing the original and the copies shall then be enclosed in one single envelope............................ provided that the modification is received by the Procuring Entity prior to the deadline prescribed for submission and receipt of bids....................................................29 Bids requested to be withdrawn in accordance with ITB Clause 23 shall be returned unopened to the Bidders.............. pursuant to ITB Clause 21...........................................................................................................___”.............................29 Any bid submitted after the deadline for submission and receipt of bids prescribed by the Procuring Entity................................... in accordance with ITB Clause 21.............................28 If bids are not sealed and marked as required.....................................29 ......28 All envelopes shall:............28 ()t bear a warning “DO NOT OPEN BEFORE…” the date and time for the opening of bids.............................. directly or indirectly...........................................28 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................... properly identified.28 The original and the number of copies of the Bid as indicated in the BDS shall be typed or written in indelible ink and shall be signed by the bidder or its duly authorized representative/s.................................................22 Late Bids............................................. respectively......28 ()r be addressed to the Procuring Entity’s BAC in accordance with ITB Clause 1................................28 ()q bear the name and address of the Bidder in capital letters............................... but shall be allowed to submit another bid equally sealed..........29 The Bidder may modify its bid after it has been submitted.. ........28 ()p contain the name of the contract to be bid in capital letters................................. civil and criminal sanctions as prescribed by RA 9184 and its IRR.............................................28 .......... 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................................... ..................21 Deadline for Submission of Bids..................................................................... withdraw its bid after it has been submitted.......................... shall be declared “Late” and shall not be accepted by the Procuring Entity....................28 SUBMISSION AND OPENING OF BIDS................29 121 . for the same contract. through a Letter of Withdrawal...................29 No bid may be modified after the deadline for submission of bids........................................... Bid modifications received after the applicable deadline shall not be considered and shall be returned to the Bidder unopened................................................... provided that the Letter of Withdrawal is received by the Procuring Entity prior to the deadline prescribed for submission and receipt of bids.................. and.......... The Bidder shall not be allowed to retrieve its original bid..............28 ()s bear the specific identification of this bidding process indicated in the ITB Clause 1..................... ...... pursuant to ITB Clause 18........ the Procuring Entity will assume no responsibility for the misplacement or premature opening of the bid..........28 ................................................................... A Bidder 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............................ ..................................

... the bid shall be returned unopened by registered mail. Submission of documents required under ITB Clauses 12 to 12 by any of the joint venture partners constitutes compliance..30 A Bidder determined as “failed” has three (3) calendar days upon written notice or...... if present at the time of bid opening...... immediately after determining compliance with the requirements in the first envelope...................... that the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof............. items (i) to (v).....29 Letters of withdrawal shall be read out and recorded during bid opening..29 Unless otherwise specified in the BDS........................................... subject to appropriate administrative sanctions........... provided that the corresponding Letter of Withdrawal contains a valid authorization requesting for such withdrawal........... using a non-discretionary “pass/fail” criterion... the BAC shall keep the bid envelopes of the said failed Bidder unopened and/or duly sealed until such time that the motion for reconsideration or protest has been resolved.......30 In the case of an eligible foreign Bidder as described in ITB Clause 5... For this purpose..................... and/or if the submitted total bid price exceeds the ABC unless otherwise provided in ITB Clause 13.......................... In case one or more of the requirements in the second envelope of a particular bid is missing......... ............. the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present. The Bidder may withdraw its bid prior to the deadline for the submission and receipt of bids....................................... within which to file a request or motion for reconsideration with the BAC: Provided...... the Class “A” Documents described in ITB Clause 12 may be substituted with the appropriate equivalent documents............. Otherwise.............. however.................. the original bid and all copies thereof shall be returned to the representative during the bid opening...24 Opening and Preliminary Examination of Bids ........ issued by the country of the foreign Bidder concerned............. incomplete or patently insufficient... In this regard... If a bidder submits the required document.........30 If a Bidder has previously secured a certification from the Procuring Entity to the effect that it has previously submitted the above-enumerated Class “A” Documents....................... further.............................. upon verbal notification........................... the BAC shall rate the said first bid envelope as “passed”................. If a failed Bidder signifies his intent to file a motion for reconsideration. . if any.................30 122 ..........30 Each partner of a joint venture agreement shall likewise submit the requirements in ITB Clauses 12 and 12........................ that the motion for reconsideration shall not be granted if it is established that the finding of failure is due to the fault of the Bidder concerned: Provided........... If the representative is not in attendance... If the withdrawing Bidder’s representative is in attendance....... bids that fail to include any requirement or are incomplete or patently insufficient shall be considered as “failed”.............. The second envelope of each complying bidder shall be opened within the same day........... 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........... the BAC shall rate the bid concerned as “failed”...... the BAC shall forthwith open the second bid envelope of each remaining eligible bidder whose first bid envelope was rated “passed”. it shall be rated “passed” for that particular requirement...... and the envelope containing the corresponding withdrawn bid shall be returned to the Bidder unopened.... the said certification may be submitted in lieu of the requirements enumerated in ITB Clause 12.......29 The BAC shall open the first bid envelopes of Bidders in public as specified in the BDS to determine each Bidder’s compliance with the documents prescribed in ITB Clause 12...............................................

.................................31 ()u The preference shall be applied when (i) the lowest Foreign Bid is lower than the lowest bid offered by a Domestic Bidder.......25 Process to be Confidential ................The Procuring Entity shall prepare the minutes of the proceedings of the bid opening that shall include... 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................... or association is duly organized under the laws of the Philippines with at least seventy five percent (75%) of its interest or outstanding capital stock belonging to citizens of the Philippines............................. as the case may be..... as well as its Secretariat and TWG.............. (b) habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by his bid..........27 Domestic Preference...............................................31 Any effort by a bidder to influence the Procuring Entity in the Procuring Entity’s decision in respect of bid evaluation......... the Procuring Entity may ask in writing any Bidder for a clarification of its bid....... .. or CDA (in case of cooperatives) that the (a) sole proprietor is a citizen of the Philippines or the partnership..................31 .. comparison............. 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............ .............................................................................. The BAC members shall sign the abstract of bids as read..................... unless otherwise allowed in the case of ITB Clause 26..............31 ................. then the Procuring Entity shall award the contract to the Domestic Bidder/Entity at the amount of the lowest Foreign Bid or the bid offered by a non-Philippine national.. as a minimum: (a) names of Bidders........................... findings of preliminary examination.....31 ()x If the Domestic Entity/Bidder refuses to accept the award of contract at the amount of the Foreign Bid or bid offered by a non-Philippine national within two (2) calendar days from receipt of written advice from the BAC..................................... bid comparison or contract award will result in the rejection of the Bidder’s bid.............................................................31 Unless otherwise stated in the BDS. ........................................................... and (b) attendance sheet........................................................... the lowest Foreign Bid or the bid offered by a non-Philippine national shall be increased by fifteen percent (15%)...... their bid price...............31 ......26 Clarification of Bids ................ corporation............. including its staff and personnel.................................... All responses to requests for clarification shall be in writing.......31 ()w In the event that (i) the lowest bid offered by a Domestic Entity does not exceed the lowest Foreign Bid as increased........................ cooperative.... or (ii) the lowest bid offered by a nonPhilippine national is lower than the lowest bid offered by a Domestic Entity......................31 A Bidder may be granted preference as a Domestic Entity subject to the certification from the DTI (in case of sole proprietorships)...........31 To assist in the evaluation.........31 Members of the BAC................. SEC (in case of partnerships and corporations).. the Procuring Entity shall award to the bidder offering the Foreign Bid or the non-Philippine national........ subject to post-qualification and submission of all the documentary requirements under these Bidding Documents.............................. and (c) the business has been in existence for at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid for this Project............................................ the Procuring Entity will grant a margin of preference for the purpose of comparison of bids in accordance with the following: .... and post-qualification of the bids..... or (ii) the lowest bid offered by a non-Philippine national as increased..................... as the case may be..30 EVALUATION AND COMPARISON OF BIDS........32 123 .31 ()v For evaluation purposes.... bid security.....................................................

.......... and...... Total calculated bid prices..............A Bidder may be granted preference as a Domestic Bidder subject to the certification from the DTI that the Bidder is offering unmanufactured articles... Any adjustment shall be calculated in monetary terms to determine the calculated prices...... all bidders shall be required to include in their bids the cost of all taxes.... and....” using non-discretionary pass/fail criteria................. discounts and other modifications. but no price is indicated. to establish the correct calculated prices of the bids........................ .................................. pursuant to ITB Clause 24........32 ()y The detailed evaluation of the financial component of the bids...... as evaluated and corrected for computational errors..................................... local taxes...... shall be considered non-responsive and......... The bid with the lowest price shall be identified as the Lowest Calculated Bid.....33 Based on the detailed evaluation of bids... In this regard............................... Consider computational errors and omissions to enable proper comparison of all eligible bids.....................................................32 The Procuring Entity will undertake the detailed evaluation and comparison of bids which have passed the opening and preliminary examination of bids............ thus.............. It may also consider bid modifications.......32 The Procuring Entity's BAC shall immediately conduct a detailed evaluation of all bids rated “passed.......32 .......33 Bids shall be evaluated on an equal footing to ensure fair competition....... bill of quantities.. as evaluated and corrected for computational errors...........32 The Lowest Calculated Bid shall be determined in two steps:. of the Philippines...... materials or supplies of the growth or production of the Philippines.................... ......... Unless the ITB specifically allows partial bids.............. to identify the Lowest Calculated Bid........................ materials.................... or manufacture.......................... income tax........ in order to determine the Lowest Calculated Bid....... if allowed in the BDS.. the BAC shall consider the following in the evaluation of bids: ..................... 12........33 .... or supplies manufactured or to be manufactured in the Philippines substantially from articles.................................................................................. For this purpose...... production. Such bids.............................. discounts and other modifications................33 The Procuring Entity’s evaluation of bids shall only be based on the bid price quoted in the Financial Bid Form.................28 Detailed Evaluation and Comparison of Bids..... automatically disqualified.......32 ()z The ranking of the total bid prices as so calculated from the lowest to the highest...... as the case may be.................... but not limited to................33 The Procuring Entity shall determine to its satisfaction whether the Bidder that is evaluated as having submitted the Lowest Calculated Bid (LCB) complies with and is responsive to all the requirements and conditions specified in ITB Clauses 5............. those that comply with the above-mentioned requirements shall be ranked in the ascending order of their total calculated bid prices....................... shall be the basis for bid evaluation and comparison. Unless otherwise specified in the BDS..................... such as...... including said taxes......... materials...... unless otherwise indicated in the BDS... bids not addressing or providing all of the required items in the Schedule of Requirements including..... or supplies of the growth................ where a required item is provided.. where applicable.......................32 ()bb Arithmetical corrections.... or manufactured articles............... value added tax (VAT)............................... and other fiscal levies and duties which shall be itemized in the bid form and reflected in the detailed estimates........................ the same shall be considered as non-responsive........................33 124 ................. and 13.......29 Post-Qualification.32 ()aa Completeness of the bid.......... which exceed the ABC shall not be considered....... but specifying a "0" (zero) for the said item would mean that it is being offered for free to the Procuring Entity.

................ however.........34 ..... 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......................................... the Head of the Procuring Entity shall approve or disapprove the said recommendation....Within a non-extendible period of three (3) calendar days from receipt by the bidder of the notice from the BAC that it submitted the LCB..........33 ()cc Tax clearance per Executive Order 398....... the Bidder shall submit the following documentary requirements:............... using a non-discretionary “pass/fail” criterion. including any act which restricts.35 125 ......................... Should such review uncover any misrepresentation made in the eligibility and bidding requirements.................33 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....... the Procuring Entity reserves the right to reject any and all bids......................................... ..........34 ()gg If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity.................... and. or... or that there has been a change in the Bidder’s capability to undertake the project from the time it submitted its eligibility requirements....................................................... and make no assurance that a contract shall be entered into as a result of the bidding: ........................34 A negative determination shall result in rejection of the Bidder’s Bid....... statements or documents..... as well as other information as the Procuring Entity deems necessary and appropriate......30 Reservation Clause....34 Notwithstanding the eligibility or post-qualification of a Bidder.....................................................34 Based on the following grounds............................. in which event the Procuring Entity shall proceed to the next Lowest Calculated Bid to make a similar determination of that Bidder’s capabilities to perform satisfactorily. or not to award the contract..33 ()ff Other appropriate licenses and permits required by law and stated in the BDS.... or between a Bidder and a third party............ the period provided herein shall be fifteen (15) calendar days.. 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.... and recommend to the Head of the Procuring Entity the award of contract to the said Bidder at its submitted price or its calculated bid price.....33 ()dd Latest income and business tax returns in the form specified in the BDS.... declare a failure of bidding at any time prior to the contract award.............................................. In the case of GOCCs and GFIs............ and so on until the Lowest Calculated Responsive Bid is determined for contract award... the procedure for post qualification shall be repeated for the Bidder with the next Lowest Calculated Bid.................................... fails the post qualification........34 ()hh If the Procuring Entity’s BAC is found to have failed in following the prescribed bidding procedures.................... or if the collusion is between or among the bidders themselves............... Series of 2005............................................ 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......... it shall declare the said bid as the Lowest Calculated Responsive Bid............. If the second Bidder........... whichever is lower..33 ()ee Certificate of PhilGEPS Registration...... suppress or nullify competition................34 Within a period not exceeding seven (7) calendar days from the date of receipt of the recommendation of the BAC...... suppresses or nullifies or tends to restrict...............................................33 If the BAC determines that the Bidder with the Lowest Calculated Bid passes all the criteria for post-qualification.... without thereby incurring any liability................................. or between the BAC and any of the Bidders..........................................

.......35 AWARD OF CONTRACT.....35 ()i If the physical and economic conditions have significantly changed so as to render the project no longer economically.............36 At the same time as the Procuring Entity notifies the successful Bidder that its bid has been accepted..................................................35 In addition................................................................................31 Contract Award........................................................ or....................................................................... incorporating therein all agreements between the parties....35 .......................... the Procuring Entity shall not increase or decrease the quantity of goods originally specified in Section VI..................35 ()jj No bids are received...... Schedule of Requirements........................................ the successful Bidder shall post the required performance security and sign and date the contract and return it to the Procuring Entity.... ..................................36 ()rr Contract Agreement................................ which contract has been provided in the Bidding Documents...............................................................................35 ()kk All prospective Bidders are declared ineligible.....................................36 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..........36 The following documents shall form part of the contract:.......36 ()ss Bidding Documents...................... award of contract shall be subject to the following conditions:.............36 At the time of contract award............................................()ii For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the GOP as follows: ....................................... and ...........36 126 ..................... the Procuring Entity may likewise declare a failure of bidding when:...36 ()pp Signing of the contract as provided in ITB Clause 32................. the Procuring Entity shall notify the successful Bidder in writing that its bid has been accepted...35 Prior to the expiration of the period of bid validity.36 ............................................ 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............................................ and...........................35 Subject to ITB Clause 29.....................................36 ()qq Approval by higher authority.............................................................................................35 ()ii If the project is no longer necessary as determined by the head of the procuring entity...................................................... the Procuring Entity shall award the contract to the Bidder whose bid has been determined to be the LCRB................................................. without justifiable cause to accept the award of contract............................35 ()nn Submission of the valid JVA.....35 Notwithstanding the issuance of the Notice of Award................................................................................................. if required.........32 Signing of the Contract......................................... if applicable................... and no award is made............... financially or technically feasible as determined by the head of the procuring entity..................35 ()mm The Bidder with the Lowest Calculated Responsive Bid (LCRB) refuses...........................................................................................36 Within ten (10) calendar days from receipt of the Notice of Award................................................35 ()iii If the source of funds for the project has been withheld or reduced through no fault of the Procuring Entity.................................... through a Notice of Award received personally or sent by registered mail or electronically....35 ()oo Posting of the performance security in accordance with ITB Clause 33.....................................35 ()ll All bids fail to comply with all the bid requirements or fail post-qualification............................ within ten (10) calendar days from receipt by the Bidder of the notice from the BAC that the Bidder has the LCRB......................................................................................................................................... the Procuring Entity shall send the Contract Form to the Bidder........................................ ..

............................ which date shall not be later than seven (7) calendar days from the issuance of the Notice to Proceed.......36 The performance security shall be denominated in Philippine Pesos and posted in favor of the Procuring Entity in an amount equal to the percentage of the total contract price in accordance with the following schedule:.................................37 Amount of Performance Security..............................................................36 To guarantee the faithful performance by the winning Bidder of its obligations under the contract..........37 ()bbb Any combination of the foregoing.......................1 Definitions...........................37 Form of Performance Security.............................................................................. including the Technical and Financial Proposals........................................................ and..........................48 127 ......... the Procuring Entity shall issue its Notice to Proceed to the Bidder...........................................................37 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.................................................................................................................... if issued by a foreign bank...........37 Thirty percent (30%).................... the following terms shall be interpreted as indicated:.............................................................................. that it shall be confirmed or authenticated by a Universal or Commercial Bank...........................37 ()zz Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank: Provided...........37 The contract effectivity date shall be provided in the Notice to Proceed by the Procuring Entity....................................................... The procedure shall be repeated until the LCRB is identified and selected for contract award.........................37 ()yy Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank...........44 .............................................................................. and all other documents/statements submitted......................................................................................................................48 In this Contract................................................................................. however.........................................37 Within three (3) calendar days from the date of approval of the contract by the appropriate government approving authority..........37 (Equal to Percentage of the Total Contract Price).. the BAC shall declare the bidding a failure and conduct a re-bidding with re-advertisement...........................................................................................36 ()uu Performance Security............37 Proportionate to share of form with respect to total amount of security............ and/or ...............................36 ()xx Other contract documents that may be required by existing laws and/or specified in the BDS..33 Performance Security................................................................37 ()aaa Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security...... 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....................................................................................................................36 ()vv Credit line in accordance with ITB Clause 5................................................................................................................ GENERAL CONDITIONS OF CONTRACT................................... However if no Bidder passed post-qualification...38 SECTION IV..................................34 Notice to Proceed....................................36 ................................................ in which event the Procuring Entity shall initiate and complete the post qualification of the second Lowest Calculated Bid......... if applicable................36 ()ww Notice of Award of Contract......................37 .......................37 SECTION III..............................37 Five percent (5%)...........()tt Winning bidder’s bid.............. BID DATA SHEET........................................................................

........................ and Coercive Practices............... means the place or places named in the SCC......... the Procuring Entity: ..............()ccc “The Contract” means the agreement entered into between the Procuring Entity and the Supplier..” where applicable... or firm supplying/manufacturing the Goods and Services under this Contract and named in the SCC............49 ()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.......49 ........ for the purposes of this provision. In pursuance of this policy................ contractors..............................1 Corrupt. and includes collusive practices among Bidders (prior to or after bid 128 .................................... equipment.48 ()kkk “The Supplier” means the individual contractor............49 Unless otherwise provided in the SCC........................... as recorded in the Contract Form signed by the parties... into any contract or transaction manifestly and grossly disadvantageous to the same........................... and similar acts as provided in Republic Act 3019......48 ()nnn “Day” means calendar day....48 ()ggg “GCC” means the General Conditions of Contract contained in this Section.......................48 ()lll The “Funding Source” means the organization named in the SCC.49 ()i "corrupt practice" means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves........... and it includes the offering........ the terms set forth below as follows: ......... Fraudulent........... ........48 ()iii “The Procuring Entity” means the organization purchasing the Goods.............................................. other materials and/or general support services which the Supplier is required to provide to the Procuring Entity under the Contract.....48 ()ddd “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations...........................................48 ()fff “The Services” means those services ancillary to the supply of the Goods............ machinery...... others.........48 ()hhh “SCC” means the Special Conditions of Contract........49 ()qqq defines................ provision of technical assistance......................................................................................................................... or induce others to do so... such as installation............................................ such as transportation and insurance...................48 ()eee “The Goods” means all of the supplies................................................................ receiving................... and other such obligations of the Supplier covered under the Contract..................... as named in the SCC............................. commissioning................................ the Procuring Entity as well as the bidders..........48 ()jjj “The Procuring Entity’s country” is the Philippines...... entering....... whether or not the public officer profited or will profit thereby. training.......................................... Collusive............................................................................................ including all attachments and appendices thereto and all documents incorporated by reference therein................ Performance of all obligations shall be reckoned from the Effective Date of the Contract.......... or suppliers shall observe the highest standard of ethics during the procurement and execution of this Contract................................... manufacturer distributor..............48 ()mmm “The Project Site.... spare parts. and any other incidental services..... or soliciting of anything of value to influence the action of any such official in the procurement process or in contract execution........................................ by misusing the position in which they are placed........................ giving........................ on behalf of the Government......................48 ()ppp “Verified Report” refers to the report submitted by the Implementing Unit to the Head of the Procuring Entity 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..................................48 ()ooo The “Effective Date” of the contract will be the date of receipt by the Supplier of the Notice to Proceed or the date provided in the Notice to Proceed...........................................

.. or those of its agents....... 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 1....................51 The GOODS and Related Services to be provided shall be as specified in Section VI.................................. telegram................................................... The Supplier will be responsible for the acts...... its agents.......... or negligence........ defaults..................................51 Subcontractors disclosed and identified during the bidding may be changed during the implementation of this Contract.................. although not specifically mentioned...3 Governing Law and Language...... telex.................................50 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 4.. or affect the execution of a contract.........................49 ()iii “collusive practices” means a scheme or arrangement between two or more Bidders............... directly or indirectly...... and negligence of any subcontractor...................................................51 Subcontracting of any portion of the Goods............... Any additional requirements for the completion of this Contract shall be provided in the SCC.. Borrower or Procuring Entity................................ Schedule of Requirements............................. request.......... servants or workmen...... which shall be the binding and controlling language for all matters relating to the meaning or interpretation of this Contract.......50 This Contract shall be interpreted in accordance with the laws of the Republic of the Philippines.................. with or without the knowledge of the Procuring Entity....... All correspondence and other documents pertaining to this Contract exchanged by the parties shall be written in English...........................51 129 ..50 Further the Funding Source................ servants or workmen as fully as if these were the Supplier’s own acts............................................................... if allowed in the BDS...... non-competitive levels.........................................4 Notices............... will seek to impose the maximum civil.............submission) designed to establish bid prices at artificial....................................5 Scope of Contract.... persons....49 ()rrr 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........................................................................50 ........ either in person or through an authorized representative of the Party to whom the communication is addressed............... non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition.........50 This Contract has been executed in the English language.................49 ()v “obstructive practice” is................ subject to compliance with the required qualifications and the approval of the Procuring Entity............. Any such notice.............. whichever is later....................................................................................50 Any notice......................................................51 .............. defaults.............................................. request...50 ... or when sent by registered mail.......................... as appropriate......51 .. ..............51 This Contract shall include all such items. does not relieve the Supplier of any liability or obligation under this Contract........ or facsimile to such Party at the address specified in the SCC..................... or their property to influence their participation in a procurement process............... designed to establish bid prices at artificial.................. that can be reasonably inferred as being required for its completion as if such items were expressly mentioned herein...........49 ()iv “coercive practices” means harming or threatening to harm...... ....................................................50 ............................................ or consent shall be deemed to have been given or made when received by the concerned party.................2 Inspection and Audit by the Funding Source..................................6 Subcontracting..... or consent required or permitted to be given or made pursuant to this Contract shall be in writing................ which shall be effective when delivered and duly received or on the notice’s effective date...

.......................................... all bid prices are considered fixed prices................................................. approvals................... make its best effort to assist the Supplier in complying with such requirements in a timely and expeditious manner.................................. the terms of payment shall be as follows:................................................... but in no case later than sixty (60) days after submission of an invoice or claim by the Supplier.... the Goods delivered and/or Services performed...........52 Payments shall be made only upon a certification by the Head of the Procuring Entity 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........................ the Procuring Entity shall................................. unless otherwise directed by the President or in cases allowed under Annex “D” of RA 9184.....................51 Whenever the performance of the obligations in this Contract requires that the Supplier obtain permits............... import............................................................ and other licenses from local public authorities.............................51 The Procuring Entity shall pay all costs involved in the performance of its responsibilities in accordance with GCC Clause 5........................ 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 16.................. the currency in which payment is made to the Supplier under this Contract shall be in Philippine Pesos. Bidding Forms...........9 Payment......................................51 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..............7 Procuring Entity’s Responsibilities............................................51 .......... and upon fulfillment of other obligations stipulated in this Contract.........................................A..............................................................................................................................52 130 .52 The Supplier’s request(s) for payment shall be made to the Procuring Entity in writing....................52 ()ttt On Delivery: Seventy percent (70%) 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.........................52 ()sss On Contract Signature: Ten percent (10%) 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.............. except under extraordinary circumstances and upon prior approval of the GPPB in accordance with Section 61 of R........ payments shall be made promptly by the Procuring Entity..............................10 Advance Payment and Terms of Payment............................. with the exception of any change in price resulting from a Change Order issued in accordance with GCC Clause 28............8 Prices............. as appropriate.................. 9184 and its IRR or except as provided in this Clause.....................................................................52 Pursuant to GCC Clause 9.........52 ................ and therefore not subject to price escalation during contract implementation...... and by documents submitted pursuant to the SCC provision for GCC Clause 5........................ ..................................................... and shall not exceed fifteen percent (15%) of the Contract amount............ 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...........................52 Advance payment shall be made only after prior approval of the President............................................ ....52 Unless otherwise provided in the SCC.......... accompanied by an invoice describing.............52 For Goods supplied from abroad............... ...............51 For the given scope of work in this Contract as awarded.................... if so needed by the Supplier....................................51 ................................. ...................... ......

.................. the successful Bidder shall furnish the performance security in any the forms prescribed in the ITB Clause 33.................. or any provision thereof...............................54 ..... enumerated in GCC Clause 13 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......................................54 ...........53 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:............ plan.53 ..........................................................12 Performance Security..... without the Procuring Entity’s prior written consent.......................................................53 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 parties............... and other such levies imposed for the completion of this Contract................................13 Use of Contract Documents and Information................ 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.................................. other than this Contract itself.............................54 Any document................................................... Any such disclosure shall be made in confidence and shall extend only as far as may be necessary for purposes of such performance......................54 131 ..........................................53 ()www The Supplier has no pending claims for labor and materials filed against it.... license fees....53 ....53 .14 Standards...... except for purposes of performing the obligations in this Contract.................................... stamp duties........................................................... and...53 The Supplier shall not.. disclose this Contract............ 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.................. shall be entirely responsible for all the necessary taxes............................................... ........................53 The Supplier..................................... drawing..... sample..............................................53 The performance security shall remain valid until issuance by the Procuring Entity of the Certificate of Final Acceptance................52 All progress payments shall first be charged against the advance payment until the latter has been fully exhausted............................ or information furnished by or on behalf of the Procuring Entity.........................11 Taxes and Duties........................15 Inspection and Tests...............................................................................................53 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........................................()uuu 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......................................................53 In case of a reduction of the contract value.............. or any specification........................... whether local or foreign................................................................................................................................................................................ 53 ()xxx Other terms specified in the SCC.................................................. pattern....53 ()vvv There are no pending claims against the Supplier or the surety company filed by the Procuring Entity................................................................................................................................................................. the Procuring Entity shall allow a proportional reduction in the original performance security......................

.. shall release the Supplier from any warranties or other obligations under this Contract. a warranty shall be required from the Supplier for a minimum period specified in the SCC......55 The Procuring Entity shall promptly notify the Supplier in writing of any claims arising under this warranty......... The obligation for the warranty shall be covered by............. at no cost to the Procuring Entity.... at point of delivery..... the Procuring Entity may proceed to take such 132 .............. If conducted on the premises of the Supplier or its subcontractor(s).. in a timely manner..........55 ..54 The Supplier agrees that neither the execution of a test and/or inspection of the Goods or any part thereof...................... Upon receipt of such notice.. all traveling and board and lodging expenses................ fails to remedy the defect(s) within the period specified in GCC Clause 16............. and/or at the goods’ final destination.......... having been notified. without cost to the Procuring Entity...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............. and shall repeat the test and/or inspection..... ............... repair or replace the defective Goods or parts thereof............................ Technical Specifications shall specify what inspections and/or tests the Procuring Entity requires and where they are to be conducted.... The Supplier shall provide the Procuring Entity with results of such inspections and tests............. of the most recent or current models... arising from design......55 In order to assure that manufacturing defects shall be corrected by the Supplier... of the identity of any representatives retained for these purposes................ all reasonable facilities and assistance..... or a special bank guarantee equivalent to at least ten percent (10%) of the Contract Price or other such amount if so specified in the SCC.54 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......... shall be furnished to the inspectors at no charge to the Procuring Entity........... The said amounts shall only be released after the lapse of the warranty period specified in the SCC....... 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............... The SCC and Section VII......... 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................ at the Supplier’s option....... the inspections and tests may be conducted on the premises of the Supplier or its subcontractor(s). and that they incorporate all recent improvements in design and materials..... nor the attendance by the Procuring Entity or its representative....................54 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........ within the period specified in the SCC and with all reasonable speed.................. but not limited to........16 Warranty.... that the Supplies delivered are free from patent and latent defects and all the conditions imposed under this Contract have been fully met.............. materials... unused........ the Supplier shall... either retention money in an amount equivalent to at least ten percent (10%) of the final payment.. however..........55 If the Supplier......................................55 The Supplier further warrants that all Goods supplied under this Contract shall have no defect.........55 The Supplier warrants that the Goods supplied under the Contract are new..................... provided.. except when the technical specifications required by the Procuring Entity provides otherwise.. The Procuring Entity shall notify the Supplier in writing..........54 If applicable................ upon giving a notice pursuant to GCC Clause 4.......... including access to drawings and production data........... ..........

.. 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.................. otherwise known as the “Alternative Dispute Resolution Act of 2004.. The maximum deduction shall be ten percent (10%) of the amount of contract...... as liquidated damages.....................................56 If after thirty (30) days...56 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 Procuring Entity shall evaluate the situation and may extend the Supplier’s time for performance.................. 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........ deduct from the Contract Price............ Schedule of Requirements...........19 Settlement of Disputes. the Supplier or its Subcontractor(s) should encounter conditions impeding timely delivery of the Goods and/or performance of Services.........................56 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.............A..............56 ...............................56 133 ... 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 18..........55 .................56 Subject to GCC Clauses 17 and 21......................... the parties shall make every effort to resolve amicably such dispute or difference by mutual consultation................. without prejudice to its other remedies under this Contract and under the applicable law.................... unless an extension of time is agreed upon pursuant to GCC Clause 28 without the application of liquidated damages......................................... 9285”)................ the Supplier shall promptly notify the Procuring Entity in writing of the fact of the delay....... and no arbitration in respect of this matter may be commenced unless such notice is given........................................56 In the case of a dispute between the Procuring Entity and the Supplier.......................................... without prejudice to other courses of action and remedies open to it.......55 Except as provided under GCC Clause 21................................. then either the Procuring Entity or the Supplier may give notice to the other party of its intention to commence arbitration........ and the Procuring Entity shall pay the Supplier any monies due the Supplier.......56 Notwithstanding any reference to arbitration herein............................. in which case the extension shall be ratified by the parties by amendment of Contract........... Once the maximum is reached....remedial action as may be necessary.... as to the matter in dispute.......... the Procuring Entity shall rescind the Contract pursuant to GCC Clause 22.... the parties shall continue to perform their respective obligations under the Contract unless they otherwise agree...55 If at any time during the performance of this Contract................................................... the dispute shall be resolved in accordance with Republic Act 9285 (“R.......... its likely duration and its cause(s).............................”.............................................56 ....... Arbitration may be commenced prior to or after delivery of the Goods under this Contract........18 Liquidated Damages... the Procuring Entity shall..................................................55 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........... As soon as practicable after receipt of the Supplier’s notice........... the parties have failed to resolve their dispute or difference by such mutual consultation..... as hereinafter provided..17 Delays in the Supplier’s Performance..... and upon causes provided for under GCC Clause 21..... 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.......

...................... and any other cause the effects of which could have been avoided with the exercise of reasonable diligence by the Contractor. if any.. ... quarantine restrictions...................................................20 Liability of the Supplier................................ upon such terms and in such manner as it deems appropriate............... epidemics.....57 The Procuring Entity shall terminate this Contract for default when any of the following conditions attends its implementation:.. liquidated damages............. and such failure amounts to at least ten percent (10%) of the contact price...........................................................................57 .................58 134 ....................... and shall seek all reasonable alternative means for performance not prevented by the force majeure..... 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.......... subject to additional provisions.... Such events may include................................. provided that this limitation shall not apply to the cost of repairing or replacing defective equipment.............................................................................................. and in the case of infringement of patent rights....... floods.. a fortuitous event or force majeure shall be interpreted to mean an event which the Contractor could not have foreseen..................57 Except in cases of criminal negligence or willful misconduct...... and freight embargoes............. and the Supplier shall be liable to the Procuring Entity for any excess costs for such similar Goods or Services......................................... ............................ the Supplier shall continue to perform its obligations under the Contract as far as is reasonably practical........ was inevitable.................57 ()yyy Outside of force majeure....................................................57 The Supplier shall not be liable for forfeiture of its performance security. the aggregate liability of the Supplier to the Procuring Entity shall not exceed the total Contract Price............. or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Supplier prior to the delay... set forth in the SCC..... the Supplier shall promptly notify the Procuring Entity in writing of such condition and the cause thereof........................ if applicable.21 Force Majeure..................... or which though foreseen........ 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....................... acts of the Procuring Entity in its sovereign capacity............ but not limited to..................................57 If a force majeure situation arises............. Unless otherwise directed by the Procuring Entity in writing....................... the Supplier shall continue performance of this Contract to the extent not terminated................. amounting to at least ten percent (10%) of the contract price....... wars or revolutions................ Goods or Services similar to those undelivered.......................... It shall not include ordinary unfavorable weather conditions...........................................57 For purposes of this Contract the terms “force majeure” and “fortuitous event” may be used interchangeably................................................... or........................................................................ the Procuring Entity may procure........................57 ()zzz As a result of force majeure...............57 The Supplier’s liability under this Contract shall be as provided by the laws of the Republic of the Philippines..57 ()aaaa The Supplier fails to perform any other obligation under the Contract............................22 Termination for Default... In this regard.... .............. the Supplier is unable to deliver or perform any or all of the Goods................................. the Supplier fails to deliver or perform any or all of the Goods within the period(s) specified in the contract..... However................... for any of the reasons provided under GCC Clauses 22 to 25...... fires..............................58 In the event the Procuring Entity terminates this Contract in whole or in part.....57 .........................................

........26 Procedures for Termination of Contracts..59 The following provisions shall govern the procedures for termination of this Contract:............................................................................................58 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...59 ...................................... at any time for its convenience.25 Termination for Unlawful Acts..59 ()iiii Upon recommendation by the Implementing Unit.....................58 ..... means or methods...............................................58 If the Supplier suffers loss in its initial performance of the terminated contract......................................................59 ()eeee Drawing up or using forged documents............................................................... the Procuring Entity may terminate this Contract......................................... the Implementing Unit shall........................... it shall be allowed to recover partially from this Contract.... in unlawful deeds and behaviors relative to contract acquisition and implementation.......................59 ()ffff Using adulterated materials............ or engaging in production contrary to rules of science or the trade. 59 ()hhhh Upon receipt of a written report of acts or causes which may constitute ground(s) for termination as aforementioned...... the following:.............. Unlawful acts include...................................... with all relevant evidence attached........58 The Procuring Entity may terminate this Contract..................59 The Procuring Entity may terminate this Contract in case it is determined prima facie that the Supplier has engaged........... verify the existence of such ground(s) and cause the execution of a Verified Report.. the Head of the Procuring Entity shall terminate this Contract only by a written notice to the Supplier conveying the termination of this Contract........24 Termination for Convenience....................... For Goods not yet performed and/or ready for delivery............................ financially or technically impractical and/or unnecessary...................................... or upon its own initiative.............................. but are not limited to.... Before recovery may be made.59 ()dddd Corrupt......... such as................ such as purchase of raw materials for goods specially manufactured for the Procuring Entity which cannot be sold in open market..............................59 135 ............. the fact of loss must be established under oath by the Supplier to the satisfaction of the Procuring Entity before recovery may be made............... in whole or in part............ forfeit the Supplier's performance security and award the same to a qualified Supplier...........................58 ()cccc 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.................................... and/or........ and coercive practices as defined in ITB Clause 3..........................59 .............................. but not limited to.................. The notice shall state:.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...........58 .............................................58 ()bbbb to have any portion delivered and/or performed and paid at the contract terms and prices.................. before or during the implementation of this Contract........................ on a quantum meruit basis................................................................................... within a period of seven (7) calendar days......... The Head of the Procuring Entity may terminate a contract for the convenience of the Government if he has determined the existence of conditions that make Project Implementation economically.......................... the Procuring Entity may elect:........................................................................ fraudulent................................59 ()gggg Any other act analogous to the foregoing..23 Termination for Insolvency.. and......................... fortuitous event(s) or changes in law and national government policies..................................................

.......... delivered.....60 ()nnnn The Head of the Procuring Entity may create a Contract Termination Review Committee (CTRC) to assist him in the discharge of this function..............................................()i that this Contract is being terminated for any of the ground(s) afore-mentioned.....61 REQUIREMENTS... or performed before the Supplier’s receipt of the notice.......................60 SECTION V. either by inaction or by default... .60 ..........105 OMNIBUS SWORN STATEMENT.................... this Contract is deemed terminated from receipt of the Supplier of the notice of decision...........27 Assignment of Rights........................... the Head of the Procuring Entity shall issue an order terminating this Contract.... TECHNICAL SPECIFICATIONS.... whether in whole or in part........................................................ the Head of the Procuring Entity shall decide whether or not to terminate this Contract. unless otherwise provided.70 SECTION VII...............................................................................60 ()mmmm Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper................. the Supplier shall submit to the Head of the Procuring Entity a verified position paper stating why this Contract should not be terminated....108 SECTION IX.................................29 Application........60 ()kkkk Within a period of seven (7) calendar days from receipt of the Notice of Termination.. FOREIGN-ASSISTED PROJECTS. SPECIAL CONDITIONS SECTION VI.......... if any..... and.............................................. If the Supplier fails to show cause after the lapse of the seven (7) day period............ 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....... BIDDING FORMS........ All decisions recommended by the CTRC shall be subject to the approval of the Head of the Procuring Entity............59 ()ii the extent of termination.............................................60 ..............................60 ............................................................................................................................60 ()llll The Procuring Entity may.................................. ..............71 SECTION VIII.....................74 BID FORM........................ and... ................... ................... SCHEDULE OF OF CONTRACT...........59 ()iv special instructions of the Procuring Entity.59 ()jjjj The Notice to Terminate shall be accompanied by a copy of the Verified Report........109 BID FOR FOREIGN-ASSISTED PROJECTS.101 CONTRACT AGREEMENT FORM... 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.........................................................60 ()oooo 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. and a statement of the acts that constitute the ground(s) constituting the same................................ The termination shall only be based on the ground(s) stated in the Notice to Terminate..........................................138 136 .................28 Contract Amendment.....................59 ()iii an instruction to the Supplier to show cause as to why this Contract should not be terminated................................................106 BANK GUARANTEE FORM INVITATION TO FOR ADVANCE PAYMENT.................................................................. It shall serve a written notice to the Supplier of its decision and............

................144 CONTRACT..........................140 ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS OF OF CONTRACT.................140 ASIAN DEVELOPMENT BANK BID DATA SHEET.......146 WORLD BANK BID DATA SHEET....... ..... and Coercive Practices) which shall read as follows:........146 137 .............. ... ....INVITATION TO BID FOR FOREIGN-ASSISTED PROJECTS... Collusive................... except GCC Clause 2.144 The ADB adopts the provisions of the Special Conditions of Contract of the GOP as contained in the Harmonized Philippine Bidding Documents dated ________...........144 WORLD BANK BID DATA SHEET...1 (Corrupt......................... Fraudulent... ..............138 ASIAN DEVELOPMENT BANK BID DATA SHEET......................

a contract similar to the Project. particularly. please do not indicate the ABC in the Invitation to Bid. The description of an eligible bidder is contained in the Bidding Documents. Bidding will be conducted in accordance with relevant procedures for open competitive bidding as specified in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184. location of project. 9 A brief description of the type(s) of Goods should be provided. The Government of the Philippines (GOP) [has received/has applied for/intends to apply for] a [Loan/Grant] from the [state the foreign government/foreign or international financing institution. Asian Development Bank. 138 2. in Section II. (e.g. The [insert name of Procuring Entity] now invites bids for [insert brief description of Goods to be procured] . Asian Development Bank. as stated in these Bidding Documents and is open to all Bidders from eligible source countries as defined in the applicable procurement guidelines of the [state the foreign government/foreign or international financing institution concerned (e. as applicable provided that Bidders shall pay the nonrefundable fee for the Bidding Documents not later than the submission of their bids. [If ADB-funded project. and other information necessary to enable potential bidders to decide whether or not to respond to the invitation. 5. Japan International Cooperation Agency.9 Delivery of the Goods is required [insert the required delivery date or expected contract duration] . and it intends to apply part of the proceeds of this [Loan/Grant] to payments under the contract for [insert name/no.] 4. including quantities. It may also be downloaded free of charge from the website of the Philippine Government Electronic Procurement System (PhilGEPS) and the website of the Procuring Entity. The contract shall be awarded to the Lowest Calculated Responsive Bidder (LCRB) who was determined as such during post-qualification. Instructions to Bidders. Bidders should have completed. or World Bank)] . otherwise known as the “Government Procurement Reform Act”. within [insert relevant period] from the date of submission and receipt of bids.g. The approved budget for the contract (ABC) is [insert here the amount of the ABC] . with some amendments. . Interested bidders may obtain further information from [insert name of the Procuring Entity] and inspect the Bidding Documents at the address given below during [insert office hours]. of contract] . A complete set of Bidding Documents may be purchased by interested Bidders on [insert date of availability of Bidding Documents] from the address below and upon payment of a nonrefundable fee for the Bidding Documents in the amount of [insert amount in Pesos].Invitation to Bid for Foreign-Assisted Projects [Letterhead of the Procuring Entity] INVITATION TO BID FOR [Insert name of Project] 1. Japan International Cooperative Agency. or World Bank)] toward the cost of [insert name of project] . 3.

For further information. All Bids must be accompanied by a bid security in the amount of __________ in [insert the acceptable form]. 7. _________________________________ [Insert Name and Signature of the BAC Chairperson or the Authorized Representative of the BAC Chairperson] 139 . to annul the bidding process. Bids must be delivered to the address below on or before [insert time and date]. The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert time and date] at [insert address for Pre-Bid Conference. 8. please refer to: [Insert name of officer] [Insert name of office] [Insert postal address] and/or [Insert street address] [Insert telephone number. indicate city code] [Insert contact’s email address] [Insert facsimile number] [Insert website address. without thereby incurring any liability to the affected bidder or bidders. if applicable]. which shall be open to all interested parties. [Insert such other necessary information deemed relevant by the PROCURING ENTITY] The [insert name of the Procuring Entity] reserves the right to accept or reject any bid. if applicable] 10. 9. Bids will be opened in the presence of the Bidders’ representatives who choose to attend at the address below. and to reject all bids at any time prior to contract award. Bid opening shall be on [insert time and date] at [insert address for Bid opening] . Late bids shall not be accepted.6.

or attempts to mislead. that knowingly or recklessly misleads. if such payment or import. The name of the Project is: [Insert the name of the project. suppliers. _________ between the PROCURING ENTITY and the Funding Source in accordance with International or Executive Agreement dated ______________ (hereinafter called the "Loan Agreement"). (ii) “fraudulent practice” means any act or omission. or “Not applicable”] Payments by the Foreign Funding Source will be made only at the request of the PROCURING ENTITY and upon approval by the Funding Source in accordance with the terms and conditions of Loan Agreement No. to observe the highest standard of ethics during the procurement and execution of such contracts. No party other than the PROCURING ENTITY shall derive any rights from the Loan Agreement or have any claim to the funds. or for any import of goods. to the knowledge of the Funding Source. or soliciting. ADB: (a) defines. The Loan Agreement prohibits a withdrawal for the purpose of any payment to persons or entities.1 ADB’s anticorruption policy requires borrowers (including beneficiaries of ADB-financed activity). as well as bidders. for the purposes of this provision. a party to obtain a financial 140 .] in the amount of [insert amount of funds]. The payments will be subject in all respect to the terms and conditions of that Loan Agreement and the applicable law.Asian Development Bank Bid Data Sheet ITB Clause 1. receiving.2 The Procuring Entity is [insert name of purchasing organization] The lot(s) and reference is/are: [insert name] 2 The Funding Source is the Asian Development Bank (ADB) through [indicate the Loan/Grant No. the terms set forth below as follows: (i) “corrupt practice” means the offering. and contractors under ADB-financed contracts. giving. taken under Chapter VII of the Charter of the United Nations. anything of value to influence improperly the actions of another party. including a misrepresentation. 3. is prohibited by a decision of the United Nations Security Council. directly or indirectly.1 1. In pursuance of this policy.

including declaring ineligible. directly or indirectly. collusive. collusive. or coercive practices in competing for the contract in question. engaged in corrupt. 5. 5. or coercive or other prohibited practices. (iii) “coercive practice” means impairing or harming.org. fraudulent.adb. if it at any time determines that the firm or individual has.or other benefit or to avoid an obligation. Instruction is the same as the GOP Bid Data Sheet Eligible goods and services shall have their origin in eligible source countries as described in ADB Procurement Guidelines as stated in the 5. in accordance with ADB’s Anticorruption Policy and Integrity Principles and Guidelines (both as amended from time to time).4 7 141 . at any time.1 Eligible Bidders are as described in ADB Procurement Guidelines as stated in the Loan Agreement and as described on Asian Development Bank’s web page www. An Eligible Bidder shall be deemed to have the nationality of a country if it is a citizen or constituted or incorporated. directly or through an agent. and operates in conformity with the provisions of the laws of that country. (d) will sanction a firm or an individual. including influencing improperly the actions of another party.adb.org. to participate in ADB-financed or ADB-administered activities or to benefit from an ADB-financed or ADB administered contract. engaged in corrupt. (b) will reject a proposal for award if it determines that the bidder recommended for award has.2 Eligible Bidders are as described in ADB Procurement Guidelines as stated in the Loan Agreement and as described on Asian Development Bank’s web page www. fraudulent. any party or the property of the party to influence improperly the actions of a party. collusive. fraudulent. (c) will cancel the portion of the financing allocated to a contract if it determines at any time that representatives of the borrower or of a beneficiary of ADB-financing engaged in corrupt. financially or otherwise. without the borrower having taken timely and appropriate action satisfactory to ADB to remedy the situation. or threatening to impair or harm. directly or through an agent. or coercive practices during the procurement or the execution of that contract. either indefinitely or for a stated period of time. (iv) “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose.

1(a)(i) List any additional acceptable proof of registration mentioned in the ITB Clause or state “No other acceptable proof of registration is recognized.adb. A commitment from a Universal or Commercial Bank to extend a credit line in favor of the bidder if awarded the contract for the project.2 9.1 Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet The Procuring Entity will hold a pre-bid conference for this Project on [State date and time] at [State address of venue]. 12. or through manufacture.org. or a signed Statement from the partner companies that they will enter into a JV in case of award of contract. Foreign bidders may submit the equivalent documents. iv. cultivated. ii. List of relevant contracts that comply to the experience requirement as specified in ITB Clause 5. In case of Joint Venture. 8. Technical Documents v. issued by the country of the foreign bidder. viii.1(a) Instruction is the same as the GOP Bid Data Sheet The first envelope shall contain the following eligibility and technical documents: a. if any. vi. if existing. Registration Certification of the Company. or processed. Eligibility Requirements i. another commercially recognized article results that differs substantially in its basic characteristics from its imported components. mined. issued by the 142 . iii. if any. or assembly. manufactured. NOTE: The pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids. the JV Agreement. 10 12. b. Bidding Forms.2(a)(iv) of the IRR of RA 9184 and using the form prescribed in Section VIII.Loan Agreement and as described on Asian Development Bank’s web page www.4. Audited financial statement for the past two years. For the purpose of this Clause. Sworn statement in accordance with Section 25. Foreign bidders may submit the equivalent documents. origin means the country where the goods have been grown in.1 8. processing. produced. Bid security as required in the ITB.

the bid shall be declared non-responsive but the documents shall be kept by the Procuring Entity.3 21 24.3 28.2(b) 29. if the first bid envelope lacks any of the documents listed in the ADB BDS 12.” 12.country of the foreign bidder.2 20.3 17. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet 27.1 13.2(d) 32. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet During Bid opening.1 28.4 29.4(b) 16.1(a)(iii) 13.3(b) 28.1 18.2 Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet There is no ceiling for Financial Proposals.1 24.1(a).4(a)(iii) 15.1(b) 16. No domestic preference is applicable. Only the unopened Price Proposal shall be returned to the Bidder.4(g) 143 .1 18.2 15.2(a) 29. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet There is no ceiling for Financial Proposals.

In pursuance of this policy.1 (Corrupt. or attempts to mislead. (viii) “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose. Collusive. except GCC Clause 2. collusive. or coercive practices in competing for the contract in question. (vii) “coercive practice” means impairing or harming. the terms set forth below as follows: (v) “corrupt practice” means the offering. engaged in corrupt. suppliers. any party or the property of the party to influence improperly the actions of a party. directly or through an agent.Asian Development Bank Special Conditions of Contract The ADB adopts the provisions of the Special Conditions of Contract of the GOP as contained in the Harmonized Philippine Bidding Documents dated ________. a party to obtain a financial or other benefit or to avoid an obligation. Fraudulent. fraudulent. including a misrepresentation. and Coercive Practices) which shall read as follows: SCC Clause 2. directly or indirectly. anything of value to influence improperly the actions of another party. or soliciting.1 ADB’s anticorruption policy requires borrowers (including beneficiaries of ADB-financed activity). as well as bidders. giving. (c) 144 . will cancel the portion of the financing allocated to a contract if it determines at any time that representatives of the borrower or of a beneficiary of ADB-financing engaged in corrupt. directly or indirectly. collusive. without the borrower having taken timely and appropriate action satisfactory to ADB to remedy the situation. and contractors under ADB-financed contracts. for the purposes of this provision. including influencing improperly the actions of another party. or coercive practices during the procurement or the execution of that contract. ADB: (a) defines. that knowingly or recklessly misleads. (b) will reject a proposal for award if it determines that the bidder recommended for award has. or threatening to impair or harm. (vi) “fraudulent practice” means any act or omission. to observe the highest standard of ethics during the procurement and execution of such contracts. fraudulent. receiving.

collusive. fraudulent. including declaring ineligible. or coercive or other prohibited practices.(d) will sanction a firm or an individual. in accordance with ADB’s Anticorruption Policy and Integrity Principles and Guidelines (both as amended from time to time). financially or otherwise. at any time. engaged in corrupt. either indefinitely or for a stated period of time. 145 . directly or through an agent. if it at any time determines that the firm or individual has. to participate in ADB-financed or ADBadministered activities or to benefit from an ADB-financed or ADB administered contract.

World Bank Bid Data Sheet
ITB Clause 1.1 1.2 The Procuring Entity is [insert name of purchasing organization] The lot(s) and reference is/are: [insert name] 2 The Funding Source is the World Bank through [indicate the Loan/Grant No.] in the amount of [insert amount of funds]. The name of the Project is: [Insert the name of the project] Payments by the Foreign Funding Source will be made only at the request of the PROCURING ENTITY and upon approval by the Funding Source in accordance with the terms and conditions of the Loan Agreement No. ____ between the PROCURING ENTITY and the Funding Source in accordance with the International or Executive Agreement dated _______ (hereinafter called the "Loan Agreement"). 3.1 5.1 No further instructions. The Loan/Grant Agreement states in its Procurement NCB Annex that “foreign bidders shall be eligible to bid xxx”. Eligible Bidders are as defined in the Guidelines: Procurement under IBRD Loans and IDA Credits as stated in the Loan Agreement and as described on World Bank’s web page www.worldbank.org. The Loan/Grant Agreement states in its Procurement NCB Annex that “foreign bidders shall be eligible to bid xxx”. Eligible Bidders are as defined in the Guidelines: Procurement under IBRD Loans and IDA Credits as stated in the Loan Agreement and as described on World Bank’s web page www.worldbank.org. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet The Procuring Entity will hold a pre-bid conference for this Project on [State date and time] at [State address of venue]. NOTE: The pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids.

5.2

5.4 7 8.1 8.2 9.1

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10.1 12.1(a)

Instruction is the same as the GOP Bid Data Sheet During Bid opening, if the first bid envelope lacks any of the following documents, the bid shall be declared non-responsive. The first envelope shall contain the following required documents: a. b. c. d. Registration Certification of the Company; List of relevant contracts as specified in ITB Clause 5.4; Audited financial statement for the past two years; In case of Joint Venture, the JV Agreement, if existing, or a signed Statement from the partner companies that they will enter into a JV in case of award of contract; e. Bid security as required in the ITB; f. Sworn statement in accordance with Section 25.2(a)(iv) of the IRR of RA 9184 and using the form prescribed in Section VIII. Bidding Forms; g. A commitment from a Universal or Commercial Bank to extend a credit line in favor of the bidder if awarded the contract for the project. Notwithstanding the BAC’s declaration of non-responsiveness of the first bid envelope, the financial proposals contained in the second bid envelopes of all the bidders shall be read. The first and second envelopes shall not be returned to the bidders. Foreign bidders may submit the equivalent documents, if any, issued by the country of the foreign bidder.

12.1(a)(i)

List any additional acceptable proof of registration mentioned in the ITB Clause or state. “No other acceptable proof of registration is recognized. Foreign bidders may submit the equivalent documents, if any, issued by the country of the foreign bidder.” Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Domestic preference is not applicable. Select one, delete the other: There is no ceiling for Financial Proposals. Or -

12.1(a)(iii) 13.1 13 13.2

The ABC is [insert amount] . Any bid with a financial component exceeding this amount shall not be accepted. NOTE: Subject to prior concurrence of the World Bank, a ceiling may be applied to bid prices provided the following conditions are met:

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a)

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. The procuring entity has procedures in place to ensure that the ABC is based on recent estimates made by the engineer or the responsible unit of the procuring entity and that the estimates are based on adequate detailed engineering (in the case of works) and 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. The procuring entity has trained cost estimators on estimating prices and analyzing bid variances. In the case of infrastructure projects, the procuring entity must also have trained quantity surveyors. The procuring entity has established a system to monitor and report bid prices relative to ABC and engineer’s/procuring entity’s estimate. 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.

b)

c)

d)

e)

15.4(a)(iii) 15.4(b) 16.1(b) 16.3 17.1 18.1 18.2 20.3 21 24.1 24.2

Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet During Bid opening, if the first envelope lacks any of the documents listed in World Bank BDS 12.1(a), the bid shall be declared non-responsive but the documents shall be kept by the Procuring Entity. The financial proposals in the second envelope of all the bidders shall be read for record purposes. The first and second envelopes shall not be returned to the

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bidders.4 29. the requirement applies to relevant Philippine tax only.1 28. 13. 27. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet 149 . If the winner is a foreign bidder.2(a) 29. the tax clearance applies to Philippine tax only. Instruction is the same as the GOP Bid Data Sheet Instruction is the same as the GOP Bid Data Sheet Follow Clause ITB No.4(g) No domestic preference is applicable.2 on whether ABC as a price ceiling will apply.3 28.3(b) 28. If the winner is a foreign bidder.2(b) 29.2(d) 32.

150 .