F OU R T H E DI T I ON

( Includes Amended IRR-A of R.A. 9184 and Latest GPPB Issuances )

Technical Support Office
S e pt e mb e r 20 07

Department of Budget and Management ( Chairperson ) National Economic and Development Authority ( Alternate Chairperson ) Department of Education Department of Energy Department of Finance Department of Health Department of the Interior and Local Government Department of National Defense Department of Public Works and Highways Department of Science and Technology Department of Trade and Industry Department of Transportation and Communications Private Sector Representative

TABLE OF CONTENTS
AN ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES .................................................................................. 1 ARTICLE I GENERAL PROVISIONS ............................................................................................ 1 SECTION 1. Short Title. .................................................................................................... 1 SEC. 2. Declaration of Policy ............................................................................................. 1 SEC. 3. Governing Principles on Government Procurement ................................................. 1 SEC. 4. Scope and Application .......................................................................................... 2 SEC. 5. Definition of Terms ............................................................................................... 2 SEC. 6. Standardization of Procurement Process and Forms ................................................ 4 ARTICLE II PROCUREMENT PLANNING ....................................................................................... 4 SEC. 7. Procurement Planning and Budgeting Linkage ........................................................ 4 ARTICLE III PROCUREMENT BY ELECTRONIC MEANS ................................................................... 4 SEC. 8. Procurement By Electronic Means .......................................................................... 4 SEC. 9. Security, Integrity and Confidentiality .................................................................... 5 ARTICLE IV COMPETITIVE BIDDING ........................................................................................... 5 SEC. 10. Competitive Bidding ............................................................................................ 5 ARTICLE V BIDS AND AWARDS COMMITTEE .............................................................................. 5 SEC. 11. The BAC and its Composition .............................................................................. 5 SEC. 12. Functions of the BAC .......................................................................................... 5 SEC. 13. Observers .......................................................................................................... 6 SEC. 14. BAC Secretariat .................................................................................................. 6 SEC. 15. Honoraria of BAC Members ................................................................................. 6 SEC 16. Professionalization of BAC, BAC Secretariat and Technical Working Group Members .......................................................................................................................... 6 ARTICLE VI PREPARATION OF BIDDING DOCUMENTS ................................................................. 6 SEC. 17. Form and Contents of Bidding Documents ............................................................ 6 SEC. 18. Reference to Brand Names .................................................................................. 7 SEC. 19. Access to Information ......................................................................................... 7 ARTICLE VII INVITATION TO BID ................................................................................................ 7 SEC. 20. Pre-Procurement Conference ................................................................................ 7 SEC. 21. Advertising and Contents of the Invitation to Bid .................................................. 7 SEC. 22. Pre-bid Conference ............................................................................................. 8 ARTICLE VIII RECEIPT AND OPENING OF BIDS .............................................................................. 8

SEC. 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects ............................................................................................................................ 8 SEC. 24. Eligibility Requirements and Short Listing for Consulting Services .......................... 8 SEC. 25. Submission and Receipt of Bids ........................................................................... 9 SEC. 26. Modification and Withdrawal of Bids .................................................................... 9 SEC. 27. Bid Security ........................................................................................................ 9 SEC. 28. Bid Validity ......................................................................................................... 9 SEC. 29. Bid Opening ....................................................................................................... 9

ARTICLE IX BID EVALUATION .................................................................................................... 9 SEC. 30. Preliminary Examination of Bids ........................................................................... 9 SEC. 31. Ceiling for Bid Prices ........................................................................................... 9 SEC. 32. Bid for the Procurement of Goods and Infrastructure Projects ............................. 10 SEC. 33. Bid Evaluation of Short Listed Bidders for Consulting Services ............................. 10 ARTICLE X POST-QUALIFICATION ............................................................................................10 SEC. 34. Objective and Process of Post-qualification......................................................... 10 SEC. 35. Failure of Bidding ............................................................................................. 10 SEC. 36. Single Calculated/Rated and Responsive Bid Submission ..................................... 11 ARTICLE XI AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT .........................11 SEC. 37. Notice and Execution of Award .......................................................................... 11 SEC. 38. Period of Action on Procurement Activities ......................................................... 12 SEC. 39. Performance Security ........................................................................................ 12 SEC. 40. Failure to Enter into Contract and Post Performance Security .............................. 12 SEC. 41. Reservation Clause ........................................................................................... 12 SEC. 42. Contract Implementation and Termination ......................................................... 12 ARTICLE XII DOMESTIC AND FOREIGN PROCUREMENT ...............................................................13 SEC. 43. Procurement of Domestic and Foreign Goods ..................................................... 13 ARTICLE XIII BIDDING OF PROVINCIAL PROJECTS .......................................................................13 SEC. 44. Bidding of Provincial Projects............................................................................. 13 SEC. 45. Provincial Bidders ............................................................................................. 13 ARTICLE XIV LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION AND OTHER EQUIPMENT ...........................................................................................................13 SEC. 46. Lease Contracts ................................................................................................ 13 ARTICLE XV DISCLOSURE OF RELATIONS ...................................................................................13 SEC. 47. Disclosure of Relations ...................................................................................... 13 ARTICLE XVI ALTERNATIVE METHODS OF PROCUREMENT ............................................................14 SEC. 48. Alternative Methods .......................................................................................... 14 SEC. 49. Limited Source Bidding ..................................................................................... 14 SEC. 50. Direct Contracting ............................................................................................ 14

SEC. 51. SEC. 52. SEC. 53. SEC. 54.

Repeat Order ................................................................................................... 15 Shopping ......................................................................................................... 15 Negotiated Procurement ................................................................................... 15 Terms and Conditions for the use of Alternative Methods .................................... 16

ARTICLE XVII PROTEST MECHANISM ............................................................................................16 SEC. 55. Protests on Decisions of the BAC ....................................................................... 16 SEC. 56. Resolution of Protests ....................................................................................... 16 SEC. 57. Non-interruption of the Bidding Process ............................................................. 16 SEC. 58. Report to Regular Courts; Certiorari ................................................................... 16 ARTICLE XVIII SETTLEMENT OF DISPUTES ....................................................................................17 SEC. 59. Arbitration ........................................................................................................ 17 SEC. 60. Appeals............................................................................................................ 17 ARTICLE XIX CONTRACT PRICES AND WARRANTIES ....................................................................17 SEC. 61. Contract Prices. ................................................................................................ 17 SEC. 62. Warranty ......................................................................................................... 17 ARTICLE XX THE GOVERNMENT PROCUREMENT POLICY BOARD ..................................................18 SEC. 63. Organization and Functions ................................................................................ 18 SEC. 64. Membership ..................................................................................................... 18 ARTICLE XXI PENAL CLAUSE .......................................................................................................18 SEC. 65. Offenses and Penalties...................................................................................... 18 SEC. 66. Jurisdiction ....................................................................................................... 20 ARTICLE XXII CIVIL LIABILITY .....................................................................................................20 SEC. 67. Civil Liability in Case of Conviction ...................................................................... 20 SEC. 68. Liquidated Damages .......................................................................................... 20 ARTICLE XXIII ADMINISTRATIVE SANCTIONS ................................................................................20 SEC. 69. Imposition of Administrative Penalties ................................................................ 20 SEC. 70. Preventive Suspension ....................................................................................... 21 SEC. 71. Lifting of Suspension and Removal of Administrative Disabilities .......................... 21 ARTICLE XXIV LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS ................................22 SEC. 72. Private Legal Assistance .................................................................................... 22 SEC. 73. Indemnification of BAC Members ....................................................................... 22 ARTICLE XXV FINAL PROVISIONS ................................................................................................22 SEC. 74. Oversight Committee ........................................................................................ 22 SEC. 75. Implementing Rules and Regulations and Standard Forms .................................. 22 SEC. 76. Repealing Clause .............................................................................................. 22 SEC. 77. Separability Clause ........................................................................................... 23

................................................ 45 RULE VI ........................................................................................................................................................ OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT (AS AMENDED) .................................................. Submission and Receipt of Bids ................... Procurement Planning and Budgeting Linkage ...........................48 Section 20......................................................................................... 42 Section 14............................................ 70 Section 26.........27 Section 1.................... TWG Members and Procurement Units .......... Reference to Brand Names .............................................................................................. 53 Section 24............................PREPARATION OF BIDDING DOCUMENTS ...................................................45 Section 17..... Competitive Bidding ........... 31 RULE II – PROCUREMENT PLANNING ........................................................ 27 Section 2.................................................. 48 RULE VII – INVITATION TO BID ................................................................................... Access to Information ................ 45 Section 18................................................................... 41 Section 13.................................... 31 RULE III – PROCUREMENT BY ELECTRONIC MEANS .................................. Standardization of Procurement Process and Forms ..................... The BAC and its Composition ............................................................................... BAC Secretariat ..........................................................................31 Section 7...............................................................................................................IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO............................. 52 RULE VIII – RECEIPT AND OPENING OF BIDS... 45 Section 16.............................................................. Declaration of Policy ...39 Section 10....... Eligibility Requirements for the Procurement of Goods and Infrastructure Projects ............................................ Pre-bid Conference ....... Purpose and General Coverage ............... 73 Section 28........ 74 Section 29........... 39 Section 12............................... 44 Section 15........................... 28 Section 5... 74 RULE IX – BID EVALUATION................................................................................................ 39 RULE V – BIDS AND AWARDS COMMITTEE ............................................. Observers ..................... 76 ..........................................74 Section 30.............................. 28 Section 4...... 9184............................................39 Section 11................................................. Ceiling for Bid Prices ...................... Form and Contents of Bidding Documents ......................................................................................................................................................................................................................... 28 Section 6... 49 Section 22...32 Section 8................................. Bid Security ................ 27 Section 3...................................... 62 Section 25.. Honoraria of BAC and TWG Members ..................... Bid Opening .............................................. Bid Validity .................. Professionalization of BAC.... Security................... 72 Section 27........ Preliminary Examination of Bids ......................................................... Advertising and Contents of the Invitation to Bid .............................................. Eligibility Requirements and Short Listing for Consulting Services ............................................... Procurement by Electronic Means and the Government Electronic Procurement System (G-EPS) .......................................... 27 RULE I – GENERAL PROVISIONS ...... 48 Section 21....... 38 RULE IV – COMPETITIVE BIDDING ............. 32 Section 9.................................................................................... Functions of the BAC .......................................................................... Governing Principles on Government Procurement .........................................53 Section 23......... Pre-procurement Conference ...................................................................... 74 Section 31.......................................... Modification and Withdrawal of Bids .................................... Definition of Terms ........................... 48 Section 19............................................ Scope and Application of IRR-A ............... Integrity and Confidentiality ......................

93 Section 48............................... Non-interruption of the Bidding Process .................................. 91 RULE XIII – BIDDING OF PROVINCIAL PROJECTS .. Protests on Decisions of the BAC ............ Warranty................................................. 100 Section 57.. Resolution of Protests ...... Failure of Bidding .................................................................................................................. 82 Section 35............................................................................................................... 87 Section 39.................................................................................................... Bidding of Provincial Projects .................................... 102 RULE XX – THE GOVERNMENT PROCUREMENT POLICY BOARD........... 100 RULE XVIII – SETTLEMENT OF DISPUTES .................................... 92 RULE XIV – LEASE OF COMPUTERS.... Shopping ................................................................92 Section 47......................................................... 95 Section 54.......... 95 Section 53..... IMPLEMENTATION AND TERMINATION OF THE CONTRACT ............. Bid Evaluation for the Procurement of Goods and Infrastructure Projects ....91 Section 44......... Reservation Clause ....................... COMMUNICATIONS................ 78 RULE X – POST-QUALIFICATION.... 93 Section 49............................................. 97 RULE XVII – PROTEST MECHANISM .................................................................................................................................................................................................................... 84 Section 36.................. Arbitration ............... 101 Section 59..................................................................................................................................... INFORMATION AND OTHER EQUIPMENT................................................ Resort to Regular Courts................................... 101 RULE XIX – CONTRACT PRICES AND WARRANTIES .......... 101 Section 61...... 92 RULE XV – DISCLOSURE OF RELATIONS ...............................................Section 32.... Disclosure of Relations ......... Failure to Enter into Contract and Post Performance Security ............ Procurement of Domestic and Foreign Goods ..................................................................................................... 91 RULE XII – DOMESTIC AND FOREIGN PROCUREMENT. 105 Section 63........ 91 Section 45........................................... 88 Section 40........................................................................91 Section 43.. 105 ............................. 93 Section 50......... Certiorari ...................................... 90 Section 42............................. Negotiated Procurement .................... Provincial Bidders ................................................................................ 94 Section 52...................................... Period of Action on Procurement Activities ......................92 Section 46............................... Organization and Functions ....... Terms and Conditions for the use of Alternative Methods ................................................. Bid Evaluation of Short Listed Bidders for Consulting Services ............. Limited Source Bidding ...........................................................85 Section 37................................................... Contract Prices ................................ Repeat Order ................................................................. 94 Section 51........ 92 RULE XVI – ALTERNATIVE METHODS OF PROCUREMENT ............................ 101 Section 62.....................82 Section 34............................................................................................... Lease Contracts ........................................ 84 RULE XI – AWARD........................................................................ 101 Section 60.. Single Calculated/Rated and Responsive Bid Submission ................................................................. Notice and Execution of Award ...... 99 Section 56....... Direct Contracting............. 76 Section 33......................... Performance Security ................................................................................................................................................. 89 Section 41...................................... 100 Section 58...... Alternative Methods ............................................... Objective and Process of Post-Qualification .................................... 85 Section 38...................................................... Appeals ...........................................99 Section 55. Contract Implementation and Termination ....

111 Section 74... SUPPLIES AND MATERIALS .................................... Preventive Suspension ............ 106 RULE XXI – PENAL CLAUSE ....................................................................... 152 ... 128 ANNEX “F” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF CONSULTING SERVICES ................ 112 Section 78.................................... Private Legal Assistance ............................................................................................................................. 111 RULE XXV – FINAL PROVISIONS ................................. Lifting of Suspension and Removal of Administrative Disabilities ................................................................... 111 Section 75......................................... 110 Section 71...................................................................................................................................................................................................... 106 Section 65............................. 110 Section 73......................................................................... Transitory Clause ................................... 124 ANNEX “E” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS ............................................................................................ Effectivity Clause .............................................. 138 APPENDIX A GPPB RESOLUTION 01-2004 BAC COMPOSITION FOR LGUS ........................................... 109 RULE XXIII – ADMINISTRATIVE SANCTIONS ................................................................................................................Section 64.................... 116 ANNEX “C” PERIOD OF ACTION ON PROCUREMENT ACTIVITIES ......................................................................... Jurisdiction ...................... 150 APPENDIX B GUIDELINES FOR CONTRACT PRICE ESCALATION ....... Liquidated Damages ........................................................................................................................... Repealing Clause .......................................................................................... Membership ...... 120 ANNEX “D” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF GOODS............................. 109 Section 70....................... Amendment .................. 110 Section 72........................... 137 ANNEX “G” GUIDELINES FOR THE PROCUREMENT AND IMPLEMENTATION OF CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS.......... 112 Section 77........................ 111 Section 76..... 106 Section 66............................................................................. 108 RULE XXII – CIVIL LIABILITY ..................... Offenses and Penalties...................................... 108 Section 68.. 108 Section 67................................................................................................... Separability Clause .......... 109 Section 69..................................................... Indemnification of BAC Members ...................................................................................................................... 112 ANNEX “A” DETAILED ENGINEERING FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS ....... Civil Liability in Case of Conviction ................................................. Imposition of Administrative Penalties .................. 113 ANNEX “B” TYPES OF CONSULTING SERVICES .................................................................. 110 RULE XXIV – LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS ........

......... 221 APPENDIX O IMPLEMENTING GUIDELINES FOR LEASE OF PRIVATELY-OWNED REAL ESTATE ........................... 224 APPENDIX P GUIDELINES ON NON-GOVERNMENTAL ORGANIZATION PARTICIPATION IN PUBLIC PROCUREMENT ................... 204 APPENDIX K GUIDELINES FOR LEGAL ASSISTANCE AND INDEMNIFICATON OF BIDS AND AWARDS COMMITTEE (BAC) MEMBERS AND ITS SUPPORT STAFF ............. OIL............... ELECTRICITY....................................................................................................... SUPPLIERS....................................... 199 APPENDIX J GUIDELINES IN THE DETERMINATION OF ELIGIBLITY OF FOREIGN SUPPLIERS............. AND LUBRICANT PRODUCTS ................. CONTRACTORS.................................................. DISTRIBUTORS............................................... 179 APPENDIX E GUIDELINES ON THE USE OF AN ORDERING AGREEMENT UNDER THE GOVERNMENT PROCUREMENT REFORM ACT ................ 192 APPENDIX H GUIDELINES ON IMPLEMENTATION OF INFRASTRUCTURE PROJECTS UNDERTAKEN BY THE AFP CORPS OF ENGINEERS ............ AND CONSULTANTS TO PARTICIPATE IN GOVERNMENT PROCUREMENT PROJECTS . 208 APPENDIX L REVISED GUIDELINES ON INDEX-BASED PRICING FOR PROCUREMENT OF PETROLEUM......................................... 213 APPENDIX M GUIDELINES ON PROCUREMENT OF WATER................... TELECOMMUNICATIONS AND INTERNET SERVICE PROVIDERS ... 194 APPENDIX I REVISED GUIDELINES FOR THE IMPLEMENTATION OF INFRASTRUCTURE PROJECTS BY ADMINISTRATION ........ 185 APPENDIX F GPPB RESOLUTION 07-2005 RULES ON ADJUSTMENT OF THE ABC ...................................................... CONTRACTORS AND CONSULTANTS ........... 190 APPENDIX G REVISED GUIDELINES ON THE EXTENSION OF CONTRACTS FOR GENERAL SUPPORT SERVICES .......................................................... 240 ......................................................................................................................................................................... 235 APPENDIX Q GUIDELINES ON THE PROCUREMENT OF SECURITY AND JANITORIAL SERVICES .............................................................. 170 APPENDIX D GUIDELINES ON TERMINATION OF CONTRACTS .........................APPENDIX C UNIFORM GUIDELINES FOR BLACKLISTING OF MANUFACTURERS.............. 218 APPENDIX N IMPLEMENTING GUIDELINES ON AGENCY-TO-AGENCY AGREEMENTS ......

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the twenty-second day of July. It took effect fifteen (15) days after its publication or on 26 January 2003. two thousand two. – Procurement Reform Act. offices and agencies. shall. in all cases. 9184 ]1 AN ACT PROVIDING FOR THE MODERNIZATION. Governing Principles on Government Procurement. 4809 S. 9184 H. namely. – It is the declared policy of the State to promote the ideals of good governance in all its branches.A. Manila Times and Malaya. No. subdivisions. 9184 was signed by Her Excellency President Gloria Macapagal-Arroyo on 10 January 2003. departments. and instrumentalities. 2. including state universities and colleges. Short Title. 2248 Republic of the Philippines Congress of the Philippines Metro Manila Twelfth Congress Second Regular Session Begun and held in Metro Manila.” This Act shall be known as the “Government SEC. [ REPUBLIC ACT NO. and was published on 11 January 2003. SEC. No.Republic Act No. STANDARDIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: ARTICLE I GENERAL PROVISIONS SECTION 1. on Monday. be governed by these principles: 1 R. and local government units. agencies. 1 . government-owned and/or controlled corporations. bureaus. 3. Declaration of Policy. – All procurement of the national government. in two (2) newspapers of general nationwide circulation. government financial institutions and local government units. its departments. including government-owned and/or controlled corporations.

Republic Act No. 9184

a) b) c)

Transparency in the procurement process and in the implementation of procurement contracts. Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with government are, when warranted by circumstances, investigated and held liable for their actions relative thereto. Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of this Act and its implementing rules and regulations, and that all these contracts are performed strictly according to specifications.

d)

e)

SEC. 4. Scope and Application. – This Act shall apply to the Procurement of Infrastructure Projects, Goods, and Consulting Services, regardless of source of funds, whether local or foreign, by all branches and instrumentalities of government, its department, offices and agencies, including government-owned and/or controlled corporations and local government units, subject to the provisions of Commonwealth Act No. 138. Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine government is a signatory shall be observed. SEC. 5. Definition of Terms. – For purposes of this Act, the following terms or words and phrases shall mean or be understood as follows:

(a) Approved Budget for the Contract (ABC) – refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the General Appropriations Act and/or continuing appropriations, in the case of National Government Agencies; the Corporate Budget for the contract approved by the governing Boards, pursuant to E.O. No. 518, series of 1979, in the case of Government-Owned and/or Controlled Corporations, Government Financial Institutions and State Universities and Colleges; and the Budget for the contract approved by the respective Sanggunian, in the case of Local Government Units. (b) BAC – refers to the Bids and Awards Committee established in accordance with Article V of this Act. (c) Bidding Documents – refers to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided. (d) Bid – refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents.
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(e) Competitive Bidding – refers to a method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act. (f) Consulting Services – refers to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (i) advisory and review services; (ii) pre-investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi) other technical services or special studies. (g) G-EPS – refers to the Government Electronic Procurement System as provided in Section 8 of this Act. (h) Goods – refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationary, materials for construction, or personal property of any kind, including non-personal or contractual services such as the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the procuring entity for such services. (i) GPPB – refers to the Government Procurement Policy Board established in accordance with Article XX of this Act. (j) Head of the Procuring Entity – refers to: (i ) the head of the agency or his duly authorized official, for national government agencies; (ii) the governing board or its duly authorized official, for government-owned and/or controlled corporations; or (iii) the local chief executive, for local government units. Provided, That in a department, office or agency where the procurement is decentralized, the Head of each decentralized unit shall be considered as the Head of the Procuring Entity subject to the limitations and authority delegated by the head of the department, office or agency. (k) Infrastructure Projects – include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings and other related construction projects of the government. (l) IRR – refer to the implementing rules and regulations to be promulgated in accordance with Section 75 this Act. (m) Portal – refers to a website that aggregates a wide variety of content for the purpose of attracting a large number of users.

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(n) Procurement – refers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of Republic Act No. 8974, entitled “An Act to Facilitate the Acquisition of Right-of-Way Site or Location for National Government Infrastructure Projects and for Other Purposes”, and other applicable laws, rules and regulations. (o) Procuring Entity - refers to any branch, department, office, agency, or instrumentality of the government, including state universities and colleges, governmentowned and/or -controlled corporations, government financial institutions, and local government units procuring Goods, Consulting Services and Infrastructure Projects. procurement process, avoid confusion and ensure transparency, the procurement process, including the forms to be used, shall be standardized insofar as practicable.
SEC. 6. Standardization of Procurement Process and Forms . - To systematize the

For this purpose, the GPPB shall pursue the development of generic procurement manuals and standard bidding forms, the use of which once issued shall be mandatory upon all Procuring Entities.

ARTICLE II PROCUREMENT PLANNING
be within the approved budget of the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity concerned. Consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan to be specified in the IRR.
SEC. 7. Procurement Planning and Budgeting Linkage. - All procurement should

No government Procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head of the Procuring Entity and must be consistent with its duly approved yearly budget. The Annual Procurement Plan shall be formulated and revised only in accordance with the guidelines set forth in the IRR. In the case of Infrastructure Projects, the Plan shall include engineering design and acquisition of right-of-way.

ARTICLE III PROCUREMENT BY ELECTRONIC MEANS
efficiency, information and communications technology shall be utilized in the conduct of procurement procedures. Accordingly, there shall be a single portal that shall serve as the primary source of information on all government procurement. The G-EPS shall serve as the primary and definitive source of information on government procurement. Further, the GPPB is authorized to approve changes in the procurement process to adapt to improvements in modern technology, provided that such modifications are consistent with the provisions of Section 3 of this Act. To take advantage of the significant built-in efficiencies of the G-EPS and the volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize the G-EPS for the procurement of common supplies in accordance with the rules and procedures to be established by the GPPB. With regard to the procurement of non-common use items, infrastructure projects and consulting services, agencies may hire service providers to
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SEC. 8. Procurement By Electronic Means. – To promote transparency and

Republic Act No. 9184

undertake their electronic procurement provided these service providers meet the minimum requirements set by the GPPB.

SEC. 9. Security, Integrity and Confidentiality. - The G-EPS shall ensure the security, integrity and confidentiality of documents submitted through the system. It shall include a feature that provides for an audit trail for on-line transactions and allow the Commission on Audit to verify the security and integrity of the systems at any time.
ARTICLE IV COMPETITIVE BIDDING
SEC. 10. Competitive Bidding. - All Procurement shall be done through Competitive Bidding, except as provided for in Article XVI of this Act.

ARTICLE V BIDS AND AWARDS COMMITTEE
single BAC for its procurement. The BAC shall have at least five (5) members, but not more than seven (7) members. It shall be chaired by at least a third ranking permanent official of the procuring entity other than its head, and its composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the procuring entity, there may be separate BACs where the number and complexity of the items to be procured shall so warrant. Similar BACs for decentralized and lower level offices may be formed when deemed necessary by the head of the procuring entity. The members of the BAC shall be designated by the Head of Procuring Entity. However, in no case shall the approving authority be a member of the BAC. Unless sooner removed for a cause, the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity. In case of resignation, retirement, separation, transfer, reassignment, removal, the replacement shall serve only for the unexpired term: Provided, That in case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. For justifiable causes, a member shall be suspended or removed by the Head of the Procuring Entity. The BAC shall have the following functions: advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the eligibility of prospective bidders, receive bids, conduct the evaluation of bids, undertake post-qualification proceedings, recommend award of contracts to the Head of the Procuring Entity or his duly authorized representative: Provided, that in the event the Head of the Procuring Entity shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC; recommend the imposition of sanctions in accordance with Article XXIII, and perform such other related functions as may be necessary, including the creation of a Technical Working Group from a pool of technical, financial and/or legal experts to assist in the procurement process.
SEC. 12. Functions of the BAC. SEC. 11. The BAC and its Composition. - Each procuring entity shall establish a

In proper cases, the BAC shall also recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided for in Article XVI hereof. The BAC shall be responsible for ensuring that the Procuring Entity abides by the standards set forth by this Act and the IRR, and it shall prepare a procurement monitoring
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report that shall be approved and submitted by the Head of the Procuring Entity to the GPPB on a semestral basis. The contents and coverage of this report shall be provided in the IRR. in all stages of the procurement process, invite, in addition to the representative of the Commission on Audit, at least two (2) observers to sit in its proceedings, one (1) from a duly recognized private group in a sector or discipline relevant to the procurement at hand, and the other from a non-government organization: Provided, however, That they do not have any direct or indirect interest in the contract to be bid out. The observers should be duly registered with the Securities and Exchange Commission and should meet the criteria for observers as set forth in the IRR. Head of the Procuring Entity shall create a Secretariat that will serve as the main support unit of the BAC. The Head of the Procuring Entity may also designate an existing organic office within the agency to serve as the Secretariat.
SEC. 14. BAC Secretariat. - To assist the BAC in the conduct of its functions, the SEC. 13. Observers. – To enhance the transparency of the process, the BAC shall,

payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the Department of Budget and Management (DBM) shall promulgate the necessary guidelines.

SEC. 15. Honoraria of BAC Members. – The Procuring Entity may grant

SEC 16. Professionalization of BAC, BAC Secretariat and Technical Working Group Members. – The GPPB shall establish a sustained training program for
developing the capacity of the BACs, BAC Secretariats and Technical Working Groups of Procuring Entities, and professionalize the same.

ARTICLE VI PREPARATION OF BIDDING DOCUMENTS
SEC. 17. Form and Contents of Bidding Documents. - The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB. The Bidding Documents shall include the following:

(a)

Approved Budget for the Contract;

(b) Instructions to Bidders, including criteria for eligibility, bid evaluation and postqualification, as well as the date, time and place of the pre-bid Conference (where applicable), submission of bids and opening of bids; (c) (d) (e) (f) (g) (h) Terms of Reference; Eligibility Requirements; Plans and Technical Specifications; Form of Bid, Price Form, and List of Goods or Bill of Quantities; Delivery Time or Completion Schedule; Form and Amount of Bid Security;

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in newspapers of general circulation. The Procuring Entity may require additional document requirements or specifications necessary to complete the information required for the bidders to prepare and submit their respective bids. (d) The Approved Budget for the Contract to be bid. and post-qualification. 21. 18. and. the short listing of prospective bidders. the unit or officials who prepared the bidding documents and the draft Invitation to Bid. . Advertising and Contents of the Invitation to Bid. the G-EPS and the website of the Procuring Entity. if available.In line with the principle of transparency and competitiveness. in which case. and General and Special Conditions of Contract. the pre-bid conference if any. 7 . as well as reviewing all relevant documents in relation to their adherence to law.In all stages of the preparation of the Bidding Documents. 19. This shall be attended by the BAC. Form of Contract. and the opening of bids. Prior to their official release.Prior to the issuance of the Invitation to The Invitation to Bid shall contain. Pre-Procurement Conference. Reference to brand names shall not be allowed. 20. in the case of the Procurement of Consulting Services. SEC. The details and mechanics of implementation shall be provided in the IRR to be promulgated under this Act. . except those contracts below a certain level or amount specified in the IRR. time and place of the deadline for the submission and receipt of the eligibility requirements. all Invitations to Bid for contracts under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may be necessary under the circumstances.Republic Act No. the holding of the same is optional. posting in the Procuring Entity’s premises. such as. 9184 (i) (j) Form and Amount of Performance Security and Warranty. the Procuring Entity shall ensure equal access to information. among others: (a) A brief description of the subject matter of the Procurement. the BAC is mandated to hold a pre-procurement conference on each and every procurement. but not limited to. SEC. SEC.Specifications for the Procurement of Goods shall be based on relevant characteristics and/or performance requirements. ARTICLE VII INVITATION TO BID Bid. no aspect of the Bidding Documents shall be divulged or released to any prospective bidder or person having direct or indirect interest in the project to be procured. . as well as consultants hired by the agency concerned and the representative of the end-user. . (b) A general statement on the criteria to be used by the Procuring Entity for the eligibility check. (c) The date. SEC. The pre-procurement conference shall assess the readiness of the procurement in terms of confirming the certification of availability of funds. the examination and evaluation of Bids. Access to Information. the submission and receipt of bids. in order to ensure the widest possible dissemination thereof. Reference to Brand Names.

A prospective bidder may be allowed to submit his eligibility requirements electronically. which shall be specified in the IRR. . SEC. and. The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the short listing requirements prescribed for the Competitive Bidding concerned. SEC. The eligibility requirements shall provide for fair and equal access to all prospective bidders. based on the bidders’ compliance with the eligibility requirements within the period set forth in the Invitation to Bid. . said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted. 9184 (e) The source of funds. However. 24. and the place where these may be secured. Eligibility Requirements and Short Listing for Consulting Services.The eligibility of prospective bidders for the Procurement of Consulting Services shall be determined by their compliance with the eligibility requirements prescribed for the Competitive Bidding concerned. The prospective bidder shall certify under oath as to the correctness of the statements made. said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted. The pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of bids to allow prospective bidders to adequately prepare their bids. (f) The period of availability of the Bidding Documents. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects. 8 .Republic Act No. 22. unless otherwise provided in the IRR. . Subject to the approval of the BAC. Such other necessary information deemed relevant by the Procuring Entity. within the period stated in the Invitation to Bid to determine the short list of bidders who shall be allowed to submit their respective bids. 23. under special circumstances specified in the IRR. A prospective bidder may be allowed to submit his eligibility requirements electronically.At least one pre-bid conference shall be conducted for each procurement. its duly designated organic office shall determine the eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects. a pre-bid conference may also be conducted upon the written request of any prospective bidder. ARTICLE VIII RECEIPT AND OPENING OF BIDS SEC. However. and the completeness and authenticity of the documents submitted. (g) (h) The contract duration. within the period stated in the Invitation to Bid. The documents submitted in satisfaction of the eligibility requirements shall be made under oath by the prospective bidder or by his duly authorized representative certifying to the correctness of the statements made and the completeness and authenticity of the documents submitted. The eligibility requirements shall provide for fair and equal access to all prospective bidders. Pre-bid Conference.The BAC or.

Ceiling for Bid Prices. 31. The specific amounts and allowable forms of the Bid security shall be prescribed in the IRR. The modification shall be submitted in a sealed envelope duly identified as a modification of the original bid and stamped received by the BAC. Preliminary Examination of Bids. provided that this is done before the deadline for the receipt of bids.A bid shall have two (2) components. receipt and opening of bids through the G-EPS. – All Bids shall be accompanied by a Bid security.The BAC shall publicly open all bids at the time. The deadline shall also consider the urgency of the procurement involved. giving it sufficient time to complete the bidding process and giving the prospective bidders sufficient time to study and prepare their bids. Bid Validity. . The bids shall be received by the BAC on such date. SEC. 26 Modification and Withdrawal of Bids. . Bids submitted after the deadline shall not be accepted. There shall be no lower limit to the amount of the award. 25. serve as a guarantee that. which shall SEC. A bidder may modify his bid. Bid prices. the GPPB may prescribe innovative procedures for the submission. and which shall be submitted simultaneously. date.The ABC shall be the upper limit or ceiling for the 9 .Prior to Bid evaluation. The duration for each undertaking shall take into account the time involved in the process of Bid evaluation and award of contract. Bid Security. 29. SEC. Only bids that are determined to contain all the bid requirements of the technical component shall be considered for opening and evaluation of their financial component. . he shall no longer be allowed to submit another Bid for the same contract either directly or indirectly. In such case. 28. - ARTICLE IX BID EVALUATION SEC. Submission and Receipt of Bids. period of time indicated in the Bidding Documents. 27. 9184 SEC. Bid Opening. 30. the BAC shall examine first the technical components of the bids using "pass/fail" criteria to determine whether all required documents are present. – Bids and Bid securities shall be valid for such reasonable SEC.Republic Act No. time and place specified in the invitation to bid. the winning bidder shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security. after receipt of the Notice of Award. The minutes of the bid opening shall be made available to the public upon written request and payment of a specified fee. A bidder may. through a letter. namely the technical and financial components which should be in separate sealed envelopes. The deadline for the receipt of bids shall be fixed by the BAC. . SEC. and place specified in the bidding documents. Bid prices that exceed this ceiling shall be disqualified outright from further participating in the bidding. Notwithstanding the provisions of this Section and Section 26 of this Act. withdraw his bid or express his intention not to participate in the bidding before the deadline for the receipt of bids.

experience.” After approval by the Head of the Procuring Entity of the Highest Rated Bid. . undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents.” in the case of Goods and Infrastructure or the “Highest Rated Responsive Bid. – There shall be a failure of bidding if: (a) No bids are received. terms of reference. performance. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified. The bid with the lowest calculated price shall be referred to as the "Lowest Calculated Bid. the same process shall be repeated until the bid is awarded to the winning bidder. which shall include factors such as. in the case of Goods and Infrastructure Projects. 10 . his Bid shall be considered the “Lowest Calculated Responsive Bid. price and methodology. SEC." SEC. 34. he shall be “post-disqualified” and the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated Bid.For the Procurement of Consulting Services. The bids that passed the preliminary examination shall be ranked from lowest to highest in terms of their corresponding calculated prices. Whenever necessary. Bid for the Procurement of Goods and Infrastructure Projects . If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-qualification. personnel to be assigned to the job. or. the financial proposal of the second rank bidder shall be opened for negotiations: Provided. scope of services. - SEC. the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. the Bids of the short listed bidders shall be evaluated and ranked using numerical ratings in accordance with the evaluation criteria stated in the Bidding Documents. In all cases. That the amount indicated in the financial envelope shall be made as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope and the ABC. quality of personnel. The Bids shall be ranked from highest to lowest in terms of their corresponding calculated ratings. methodology and work program. the BAC shall invite the bidder concerned for negotiation and/or clarification on the following items: financial proposal submitted by the bidder. 35. 9184 procurement of Goods and Infrastructure Projects. the BAC shall evaluate the financial component of the bids. SEC.For the ARTICLE X POST-QUALIFICATION Post-qualification is the stage where the bidder with the Lowest Calculated Bid. or the Highest Rated Bid. However. Bid Evaluation of Short Listed Bidders for Consulting Services . (b) No bid qualifies as the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. if a bidder fails to meet any of the requirements or conditions. services/facilities/data to be provided by the Procuring Entity concerned. but not limited to. the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined. in the case of Consulting Services. When negotiations with the first-in-rank bidder fails. 32. Failure of Bidding.Republic Act No. Objective and Process of Post-qualification.” in the case of Consulting Services. . 33. The Bid with the highest calculated rating shall be the “Highest Rated Bid. and provisions of the contract.

the concerned board shall take action on the said recommendation within thirty (30) calendar days from receipt thereof. When further approval of higher authority is required. In all instances. the Head of the Procuring Entity or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. 36. but only one bidder meets the eligibility requirements or criteria. without justifiable cause to accept the award of contract. but only one bidder submits a bid. Within ten (10) calendar days from receipt of the Notice of Award. SEC. All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the contractor.A single calculated/rated and responsive bid shall be considered for award if it falls under any of the following circumstances: (a) If after advertisement. – Within a period not exceeding fifteen 11 . and its bid is found to be responsive to the bidding requirements. the Procuring Entity shall ensure that the ABC reflects the most advantageous prevailing price for the Government. ARTICLE XI AWARD. the BAC may resort to negotiated procurement as provided for in Section 53 of this Act. only one prospective bidder submits a Letter of Intent and/or applies for eligibility check. After the second failed bidding. more than one prospective bider applies for eligibility check. 9184 (c) Whenever the bidder with the highest rated/lowest calculated responsive bid refuses. however. after which it submits a bid. more than one bidder meets the eligibility requirements. In the case of government owned and/or controlled corporations. IMPLEMENTATION AND TERMINATION OF THE CONTRACT (15) calendar days from the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. the winning bidder shall formally enter into contract with the Procuring Entity. Single Calculated/Rated and Responsive Bid Submission. Notice and Execution of Award. The BAC shall observe the same process and set the new periods according to the same rules followed during the first bidding. which is found to be responsive to the bidding requirements. SEC. the approving authority for the contract shall be given a maximum of twenty (20) calendar days to approve or disapprove it. the Head of the Procuring Entity or his duly authorized representative shall approve or disapprove the said recommendation. after which it submits a bid which is found to be responsive to the bidding requirements. . or (c) If after the eligibility check. (b) If after the advertisement. Under any of the above instances.Republic Act No. and the recommendation of the award. the contract shall be re-advertised and re-bid. as the case may be. In case of approval. 37. and meets the eligibility requirements or criteria. The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7) calendar days from the date of approval of the contract by the appropriate authority.

including any act which restricts. – Prior to the signing of the contract. SEC. 41. as a measure of guarantee for the faithful performance of and compliance with his obligations under the contract prepared in accordance with the Bidding Documents. for justifiable causes. refuses or is otherwise unable to enter into contract with the Procuring Entity. Contract Implementation and Termination. Performance Security. suppress or nullify competition. SEC. or by the concerned board. suppresses or nullifies or tends to restrict. or not award the contract in the following situations: (a) If there is prima facie evidence of collusion between appropriate public officers or employees of the Procuring Entity. 39. – The rules and guidelines for the implementation and termination of contracts awarded pursuant to the provisions of this Act shall be prescribed in the IRR. the winning bidder shall. or if the collusion is between or among the bidders themselves. 12 . . (b) If the BAC is found to have failed in following the prescribed bidding procedures. the contract concerned shall be deemed approved. or between a bidder and a third party. or (c) For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the government as defined in the IRR. be required to post a performance security in such form and amount as specified in the Bidding Documents. Period of Action on Procurement Activities. declare a failure of bidding.The Head of the Agency reserves the right to reject any and all Bids. the bid security shall be forfeited without prejudice to the imposition of sanctions prescribed under Article XXIII.The procurement process In the case of a failure to post the required performance security. the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid fails. or by his duly authorized representative. or if the bidder fails to post the required performance security within the period stipulated in the Bidding Documents. the contract shall be subjected to a new bidding. The rules and guidelines shall include standard general and special conditions for contracts. If no action on the contract is taken by the head of the procuring entity. SEC. within the periods specified in the preceding paragraph. or a shorter period to be determined by the procuring entity concerned. if no award is possible. Reservation Clause. or between the BAC and any of the bidders. in the case of government owned and/or controlled corporations. 9184 from the opening of bids up to the award of contract shall not exceed three (3) months. – If. 38. 42. SEC. This procedure shall be repeated until an award is made. 40. . However. SEC. Failure to Enter into Contract and Post Performance Security .Republic Act No. the BAC shall disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest Rated Bid. the different procurement activities shall be completed within reasonable periods to be specified in the IRR. Without prejudice to the provisions of the preceding section.

the mechanisms of which shall be spelled-out in the IRR.Priority programs and infrastructure projects funded out of the annual General Appropriations Act which are intended for implementation within the province shall be subject to the same public bidding and to the procurement processes prescribed under this Act. . whose principal office is within the same province. – Within five (5) years from the effectivity of this Act. 9184 ARTICLE XII DOMESTIC AND FOREIGN PROCUREMENT SEC. SEC. Goods may be obtained from domestic or foreign sources and the procurement thereof shall be open to all eligible suppliers. SEC. communication and information technology equipment are subject to the same public bidding and to the processes prescribed under this Act. are included and subsumed in the term “provincial projects” and shall be governed by this Section and Section 45 hereof. ARTICLE XIII BIDDING OF PROVINCIAL PROJECTS SEC. – Consistent with the country’s obligations under international treaties or agreements. COMMUNICATIONS. Provincial Bidders. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance with Section 30 of this Act. That the release of funds for said projects shall be published in a local newspaper with the widest circulation and the website of the DBM. . However. Bidding of Provincial Projects. Lease Contracts. For purposes of this Article. and who submits the lowest bid among the provincial bidders which is higher than the lowest bid made by a contractor with principal office outside the said province shall be granted the privilege to match the bid made by the latter: Provided.Lease of construction and office equipment. Engineering District civil works projects. DISCLOSURE OF RELATIONS Invitation to Bid as mentioned under Section 21 of this Act. 44. however. Disclosure of Relations. subject to consultation with the concerned Members of Congress. supplies and materials that meet the specified or desired quality. 47. all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation is not related to the Head of the Procuring Entity by consanguinity or affinity up to the third civil degree. the Procuring Entity may give preference to the purchase of domestically-produced and manufactured goods. INFORMATION AND OTHER EQUIPMENT SEC. 43. ARTICLE XIV LEASE OF COMPUTERS. efficiency and timely delivery of Goods.In addition to the proposed contents of the ARTICLE XV 13 . . in the interest of availability. manufacturers and distributors. 45. Procurement of Domestic and Foreign Goods .Republic Act No. 46. a contractor who participates in the bidding of provincial priority programs and infrastructure projects. including computers.

contractor or consultant. otherwise known as Selective Bidding – a method of Procurement that involves direct invitation to bid by the Procuring Entity from a set of preselected suppliers or consultants with known experience and proven capability relative to the requirements of a particular contract.e. 48. which offer may be accepted immediately or after some negotiations. 14 . when patents. i. – Limited Source Bidding may be resorted to only in any of the following conditions: (a) Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited number of sources. 9184 ARTICLE XVI ALTERNATIVE METHODS OF PROCUREMENT SEC. and whenever justified by the conditions provided in this Act. (c) Repeat Order – a method of Procurement that involves a direct Procurement of Goods from the previous winning bidder. of the following conditions: SEC. or (e) Negotiated Procurement – a method of Procurement that may be resorted under the extraordinary circumstances provided for in Section 53 of this Act and other instances that shall be specified in the IRR. whenever there is a need to replenish Goods procured under a contract previously awarded through Competitive Bidding.Republic Act No. in order to promote economy and efficiency. otherwise known as Single Source Procurement – a method of Procurement that does not require elaborate Bidding Documents because the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale. 49. the Procuring Entity shall ensure that the most advantageous price for the Government is obtained. legally and financially capable supplier. (b) Direct Contracting. (d) Shopping – a method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification. . – Direct Contracting may be resorted to only in any (a) Procurement of Goods of proprietary nature. 50. Alternative Methods. SEC.Subject to the prior approval of the Head of the Procuring Entity or his duly authorized representative. whereby the Procuring Entity directly negotiates a contract with a technically. which can be obtained only from the proprietary source. In all instances. trade secrets and copyrights prohibit others from manufacturing the same item. or (b) Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to maintain an optimum and uniform level of quality and performance of the plant as a whole. resort to any of the following alternative methods of Procurement: (a) Limited Source Bidding. Direct Contracting. the Procuring Entity may. Limited Source Bidding.

Shopping. infrastructure facilities and other public utilities. however. SEC. (b) The unit price must be equal to or lower than that provided in the original The repeat order does not result in splitting of requisitions or purchase (c) Except in special circumstances defined in the IRR. For this purpose. 9184 (b) When the Procurement of critical components from a specific manufacturer. supplier or distributor is a condition precedent to hold a contractor to guarantee its project performance. – Negotiated Procurement shall be allowed only (a) In cases of two failed biddings.Republic Act No. 15 . That the Procurement does not result in Splitting of Contracts: Provided. as provided in Section 35 hereof.000). Repeat Order. 51. 53. The above amounts shall be subject to a periodic review by the GPPB. Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from the previous winning bidder whenever there arises a need to replenish goods procured under a contract previously awarded through Competitive Bidding. orders. or when time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property. – When provided for in the Annual Procurement Plan. SEC. which does not have subdealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the Government. however. 52. subject to post-qualification process prescribed in the Bidding Documents and provided all the following conditions are present: (a) contract. (d) The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of the original contract. or to restore vital public services. further. In case of imminent danger to life or property during a state of calamity. in accordance with the provisions of his contract. instances: SEC. the repeat order shall be availed of only within six (6) months from the date of the Notice to Proceed arising from the original contract. or. That the amount shall not exceed Fifty Thousand Pesos (P50. in the following instances: a. (c) Those sold by an exclusive dealer or manufacturer.000): Provided. That at least three (3) price quotations from bona fide suppliers shall be obtained. – Shopping may be resorted to under any of the following When there is an unforeseen contingency requiring immediate purchase: Provided. b. Negotiated Procurement. the GPPB shall be authorized to increase or decrease the said amount in order to reflect changes in economic conditions and for other justifiable reasons. and. or (b) Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding Two Hundred Fifty Thousand Pesos (P250.

the amount involved does not exceed the amount of the ongoing project. purchases of Goods from another agency of the Government. ARTICLE XVII PROTEST MECHANISM SEC. Non-interruption of the Bidding Process. SEC. SEC. Up to a certain amount to be specified in the IRR.Republic Act No. Protests on Decisions of the BAC. SEC. Take-over of contracts. however. series of 1989. Where the subject contract is adjacent or contiguous to an on-going infrastructure project. That negotiations for the procurement are commenced before the expiry of the original contract. including the limitations and restrictions. 9184 c. Resolution of Protests. Subject to the guidelines specified in the IRR. Court actions shall be governed by Rule 65 of the 1997 Rules of Civil Procedure. SEC. The regional trial court shall have jurisdiction over final decisions of the head of the procuring entity. infrastructure facilities and other public utilities. That the original contract is the result of a Competitive Bidding. 54. 359. or.Decisions of the BAC in all stages of procurement may be protested to the head of the procuring entity and shall be in writing. and.The protests shall be resolved strictly on the basis of records of the BAC. the subject contract to be negotiated has similar or related scopes of work. the decisions of the Head of the Procuring Entity shall be final. The amount of the protest fee and the periods during which the protests may be filed and resolved shall be specified in the IRR. 16 . this principle shall also govern consultancy contracts.Court action may be resorted to only after the protests contemplated in this Article shall have been completed. . 56. Cases that are filed in violation of the process specified in this Article shall be dismissed for lack of jurisdiction. the contractor has no negative slippage: Provided. Certiorari. further. or to restore vital public services. . 57. Whenever applicable. the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost. Protests must first be resolved before any award is made. e. for the application of each of the alternative methods mentioned in this Article shall be specified in the IRR. it is within the contracting capacity of the contractor. where the consultants have unique experience and expertise to deliver the required service. which have been rescinded or terminated for causes provided for in the contract and existing laws. such as the Procurement Service of the DBM. where immediate action is necessary to prevent damage to or loss of life or property. . Report to Regular Courts. 58. – The specific terms and conditions. which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. .In no case shall any protest taken from any decision treated in this Article stay or delay the bidding process. Terms and Conditions for the use of Alternative Methods. Decisions of the BAC may be protested by filing a verified position paper and paying a nonrefundable protest fee. 55. as defined in the IRR: Provided. 755 and Executive Order No. d.

876. That by mutual agreement. Warranty. . 9184 This provision is without prejudice to any law conferring on the Supreme Court the sole jurisdiction to issue temporary restraining orders and injunctions relating to Infrastructure Projects of Government. SEC. That. or a special bank guarantee equivalent to a percentage of the total contract price. “extraordinary circumstances” shall refer to events that may be determined by the National Economic and Development Authority in accordance with the Civil Code of the Philippines. Contract Prices. and the public at large. 59. provided that the Goods supplied are free from defects and all the conditions imposed under the contract have been fully met. and upon the recommendation of the procuring entity concerned. Appeals. the obligation for which shall be covered by either retention money in the amount equivalent to a percentage of every progress payment. a warranty shall be required from the contract awardee for such period of time as may be provided in the IRR. the parties may agree in writing to resort to alternative modes of dispute resolution.(a) For the procurement of Goods. The said amounts shall only be released after the lapse of the warranty period. SEC. otherwise known as the "Arbitration Law": Provided. security. however. Arbitration. for a specific time after performance of the contract. equipment.Republic Act No. in order to assure that manufacturing defects shall be corrected by the supplier. SEC. disputes that are within the competence of the Construction Industry Arbitration Commission to resolve shall be referred thereto. For purposes of this Section. The process of arbitration shall be incorporated as a provision in the contract that will be executed pursuant to the provisions of this Act: Provided. or distributor. SEC. . . to be provided in the IRR. as the case may be. 61. manufacturer. and therefore not subject to price escalation during contract implementation.The arbitral award and any decision rendered in accordance with the foregoing Section shall be appealable by way of a petition for review to the Court of Appeals.For the given scope of work in the contract as awarded. . except under extraordinary circumstances and upon prior approval of the GPPB. 60. and convenience of his personnel.Any and all disputes arising from the implementation of a ARTICLE XIX CONTRACT PRICES AND WARRANTIES all bid prices shall be considered as fixed prices. installation and the like to be affected by his construction work and shall be required to put 17 . the contractor shall assume full responsibility for the contract work from the time project construction commenced up to a reasonable period as defined in the IRR taking into consideration the scale and coverage of the project from its final acceptance by the government and shall be held responsible for any damage or construction of works except those occasioned by force majeure. (b) For the procurement of infrastructure projects. as well as the works. The contractor shall be fully responsible for the safety. protection. The petition shall raise pure questions of law and shall be governed by the Rules of Court. ARTICLE XVIII SETTLEMENT OF DISPUTES contract covered by this Act shall be submitted to arbitration in the Philippines according to the provisions of Republic Act No. third parties. 62.

public officers who commit any of the following acts shall suffer the SEC. 63. . the Director-General of the National Economic and Development Authority. the government shall undertake such repair works and shall be entitled to full reimbursement of expenses incurred therein upon demand. the Secretaries of the Departments of Public Works and Highways. Trade and Industry.Republic Act No. the GPPB shall absorb all the powers. Government Service Insurance System bond. with the following as Members. Interior and Local Government. having due regard to the country’s regional and international obligations. The GPPB may invite a representative from the Commission on Audit to serve as a resource person.A Government Procurement Policy Board (GPPB) is hereby established to: (a) protect national interest in all matters affecting public Procurement. Finance. series of 1989. Science and Technology. The GPPB shall be supported by a technical support office. THE GOVERNMENT PROCUREMENT POLICY BOARD ARTICLE XX SEC. letter of credit. and Energy. of any defect or damage to the infrastructure projects on account of the use of materials of inferior quality within ninety (90) days from the time the Head of the Procuring Entity has issued an order to undertake repair. Membership. as may be necessary. at his own expense.The GPPB shall be composed of the Secretary of the Department of Budget and Management. (c) ensure that Procuring Entities regularly conduct Procurement training programs and prepare a Procurement operations manual for all offices and agencies of government. Organization and Functions. 3019. 9184 up a warranty security in the form of cash. Health. SEC. Any contractor who fails to comply with the preceding paragraph shall suffer perpetual disqualification from participating in any public bidding and his property or properties shall be subject to attachment or garnishment proceedings to recover the costs. and (d) conduct an annual review of the effectiveness of this Act and recommend any amendments thereto. (b) formulate and amend. or their duly authorized representatives and a representative from the private sector to be appointed by the President upon the recommendation of the GPPB. otherwise known as the “Anti-Graft and Corrupt Practices Act” and other penal laws. All affected functions of the Infrastructure Committee of the National Economic and Development Authority Board are hereby transferred to the GPPB. whenever necessary. Transportation and Communications. the IRR and the corresponding standard forms for Procurement. 65. as Chairman. The GPPB shall convene within fifteen (15) days from the effectivity of this Act to formulate the IRR and for other related purposes. bank guarantee. ARTICLE XXI PENAL CLAUSE (a) Without prejudice to the provisions of Republic Act No. National Defense. - . or callable surety bond. as Alternate Chairman. Education. 359. 18 Offenses and Penalties. In addition to the powers granted under this Act. The contractor shall undertake the repair works. functions and responsibilities of the Procurement Policy Board created under Executive Order No. In case of failure or refusal to comply with this mandate. . 64. All payables of government in his favor shall be offset to recover the costs.

or which call for withdrawal of Bids already submitted. and awarding of contracts beyond the prescribed periods of action provided for in the IRR. shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years: (1) When two or more bidders agree and submit different Bids as if they were bona fide. but not more than fifteen (15) years: (1) Open any sealed Bid including but not limited to Bids that may have been submitted through the electronic system and any and all documents required to be sealed or divulging their contents. (3) Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of the procuring entity to take a particular action which favors. who conspires with them. the private individuals shall likewise be liable for the offense. partnerships or any other business entity in which he has interest to create the appearance of competition that does not in fact exist so as to be adjudged as the winning bidder. When any of the foregoing acts is done in collusion with private individuals. 19 . including any public officer. without justifiable cause.Republic Act No. (b) Private individuals who commit any of the following acts. In addition. while the private individual shall be permanently disqualified from transacting business with the Government. the public officer involved shall also suffer the penalty of temporary disqualification from public office. employ schemes which tend to restrain the natural rivalry of the parties or operates to stifle or suppress competition and thus produce a result disadvantageous to the public. (5) When the head of the agency abuses the exercise of his power to reject any and all bids as mentioned under Section 41 of this Act with manifest preference to any bidder who is closely related to him in accordance with Section 47 of this Act. opening of bids. evaluation and post evaluation of bids. by himself or in connivance with others. the screening for eligibility. (2) Delaying. (2) When a bidder maliciously submits different Bids through two or more persons. or tends to favor a particular bidder. prior to the appointed time for the public opening of Bids or other documents. (4) When a bidder. 9184 penalty of imprisonment of not less than six (6) years and one (1) day. (4) Splitting of contracts which exceed procedural purchase limits and competitive bidding. when they knew that one or more of them was so much higher than the other that it could not be honestly accepted and that the contract will surely be awarded to the pre-arranged lowest Bid. or which are otherwise intended to secure an undue advantage to any one of them. (3) When two or more bidders enter into an agreement which call upon one to refrain from bidding for Procurement contracts. corporations.

belong to the appropriate courts. which may either consist of restitution for the damage done or the forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both. 67. Jurisdiction. . preparatory to the final award of the contract. 68. (4) Withdraw a Bid.All contracts executed in accordance with this Act shall contain a provision on liquidated damages which shall be payable in case of breach thereof. . at the discretion of the courts.Republic Act No. a conviction under this Act or Republic Act No. . Liquidated Damages. according to laws existing at the time of the commission of the offenses. 9184 In addition. without just cause or for the purpose of forcing the Procuring Entity to award the contract to another bidder.Without prejudice to administrative sanctions that may be imposed in proper cases. This shall include the non-submission within the prescribed time. 69. ARTICLE XXII ARTICLE XXIII ADMINISTRATIVE SANCTIONS of Articles XXI and XXII of this Act. subject to the authority 20 SEC. 66. SEC. in order to influence the outcome of the public bidding. the persons involved shall also suffer the penalty of temporary or perpetual disqualification from public office and be permanently disqualified from transacting business with the Government. (2) Submit Bidding Documents of whatever kind and nature that contain false information or falsified documents or conceal such information in the Bidding Documents. performance security. or refuse to accept an award. SEC. (c) Private individuals who commit any of the following acts.Jurisdiction over the offenses defined under this Article shall CIVIL LIABILITY SEC. the Head of the Procuring Entity. 3019 shall carry with it civil liability. . or delaying the submission of requirements such as. (3) Participate in a public bidding using the name of another or allow another to use one’s name for the purpose of participating in a public bidding. after it shall have qualified as the Lowest Calculated Bid/Highest Rated Bid. officers or employees who actually commit any of the foregoing acts. (d) When the bidder is a juridical entity. Civil Liability in Case of Conviction. Imposition of Administrative Penalties.(a) In addition to the provisions . The amount thereof shall be specified in the IRR. but not limited to. shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years: (1) Submit eligibility requirements of whatever kind and nature that contain false information or falsified documents calculated to influence the outcome of the eligibility screening process or conceal such information in the eligibility requirements when the information will lead to a declaration of ineligibility from participating in public bidding. criminal liability and the accessory penalties shall be imposed on its directors. and any public officer conspiring with them.

Lifting of preventive suspension pending administrative investigation. Book V of Executive Order No. 9184 delegated to the BAC. Submission of eligibility requirements containing false information or falsified (2) Submission of Bids that contain false information or falsified documents. and suspension of two (2) years for the second offense from participating in the public bidding process. shall be strictly observed. The head of the procuring entity may preventively suspend any member of the Technical Working Group or the Secretariat. or enter into contract with the Government without justifiable cause. (3) Allowing the use of one’s name. if any. as well as removal of administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53. or refusal to accept an award. 70. the Bid security or the performance security posted by the concerned bidder or prospective bidder shall also be forfeited. All other acts that tend to defeat the purpose of the Competitive Bidding. rules and regulations.Republic Act No. 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. (5) Refusal or failure to post the required performance security within the prescribed time. (4) Withdrawal of a Bid. SEC. or using the name of another for purposes of public bidding. (c) The Head of the Procuring Entity may delegate to the BAC the authority to impose the aforementioned administrative penalties. Lifting of Suspension and Removal of Administrative Disabilities . Preventive Suspension. after he had been adjudged as having submitted the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. 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. or the BAC if there are strong reasons or prima facie evidence showing that the officials or employees concerned are guilty of the charges filed against them under Articles XXI and XXII of this Act or for dishonesty as defined by the Civil Service Laws. the administrative penalty of suspension for one (1) year for the first offense. (b) In addition to the penalty of suspension. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor. Chapter 6 (Civil Service Commission). 71. shall impose on bidders or prospective bidders. procedural and substantive due process as mandated by the Constitution and Civil Service Laws. for the following violations: (1) documents. (6) Termination of the contract due to the default of the bidder. In all cases. the Administrative Code of 1987 21 . 292. SEC.

as to which the Procuring Entity had been advised by counsel that the public officials to be indemnified have not committed gross negligence or misconduct in the performance of their functions and duties. Rules and Regulations for the Procurement of Goods/ Supplies by the National Government" and Section Three (3) of Executive order 22 . series of 1996. indemnification shall be confined only on matters covered by the settlement. 302. 75. and the Chairman of the House Committee on Appropriations. the standard forms for Procurement shall be formulated and approved. 9184 ARTICLE XXIV LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS All the members of the BAC are hereby authorized to engage the services of private lawyers or extend counsel immediately upon receipt of Court Notice that a civil or criminal action. suit or proceeding is filed against them. 72. entitled "Providing Polices. SEC. a party by reason of the performance of their functions or duties. Implementing Rules and Regulations and Standard Forms . In the event of a settlement or compromise. SEC.This law repeals Executive Order No. Private Legal Assistance. The Committee shall be composed of the Chairman of the Senate Committee on Constitutional Amendments and Revision of Laws and two members thereof appointed by the Senate President. Guidelines. – Within sixty (60) days from the promulgation of this Act.Republic Act No.The GPPB shall establish an equitable ARTICLE XXV FINAL PROVISIONS Oversight Committee to oversee the implementation of this Act for a period not exceeding five (5) years from the effectivity of this Act. – There is hereby created a Joint Congressional SEC. . Repealing Clause. 40. and two members thereof to be appointed by the Speaker of the House of Representatives. The said rules and regulations shall be approved by the President of the Philippines. Indemnification of BAC Members. and other forms of protection and indemnification for all costs and expenses reasonably incurred by such persons in connection with any civil or criminal action. SEC. subject to the provisions of Section 73 hereof. series of 2001. suit or proceeding to which they may be. Series of 2000. entitled "Amending Executive Order No. . which may be in the form of free legal assistance. indemnification package for public officials providing services in the BAC. or have been made. For a period not later than thirty (30) days upon the approval of the implementing rules and regulations. 73. 76. Executive Order No. unless they are finally adjudged in such action or proceeding to be liable for gross negligence or misconduct or grave abuse of discretion. The lawyer's fee shall be part of the indemnification package for the BAC members. and Requiring the Use of the Government Electronic Procurement System”. 74. SEC. jointly with the members of the Oversight Committee created under Section 74 hereof. Government-Owned-or-Controlled Corporations and/or Government Financial Institutions. the necessary rules and regulations for the proper implementation of its provisions shall be formulated by the GPPB. Oversight Committee. liability insurance. entitled “Consolidating Procurement Rules and Procedures for All National Government Agencies. The members of the BAC and the BAC Secretariat shall also be entitled to medical assistance for injuries incurred in the performance of their functions. 262.

entitled “An Act Providing for the Modernization of the Armed Forces of the Philippines and for Other Purposes. proclamation. – If any provision of this Act is declared invalid or unconstitutional. 1995. series of 1996.Republic Act No. 9184 No. entitled 'Prescribing Policies." This law amends Title Six. SEC. executive order. otherwise known as the 'Local Government Code of 1991". Guidelines. administrative order. presidential decree or issuance. the relevant provisions of Executive Order No. Rules and Regulations for Government Infrastructure Contracts. and the relevant provisions of Republic Act No. 1978. Rules and Regulations for the Procurement of Goods/Supplies by the National Government" and Presidential Decree No. entitled "Providing Additional Policies and Guidelines in the Procurement of Goods/Supplies by the National Government". the other provisions not affected thereby shall remain valid and subsisting. letter of instruction. Separability Clause. series of 2000. charter. 7898 dated February 23.” Any other law. entitled "Providing Additional Guidelines in the Processing and Approval of Contracts of the National Government". 7160. 23 . Book Two of Republic Act No. 1594 dated June 11. modified or amended accordingly. entitled "Providing Policies. 77. rule or regulation and/or parts thereof contrary to or inconsistent with the provisions of this Act is hereby repealed. 302. Executive Order No. Guidelines. Series of 1987. 201. 164.

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119. and regulation of the procurement activities of the government. b) The IRR-B for foreign-funded procurement activities shall be the subject of a subsequent issuance. and economy in its procurement process. goods and consulting services shall be competitive and transparent. however.” and other applicable laws. and was published on 23 September 2003 in two (2) newspapers of general nationwide circulation. 8974). goods and consulting services for government projects and other related activities that embodies a streamlined procurement process. 9184 was approved by Her Excellency President Gloria Macapagal-Arroyo through Memorandum Order No. This IRR-A shall cover all fully domesticallyfunded procurement activities from procurement planning up to contract implementation and termination. except as otherwise provided in this IRR-A. and Private sector infrastructure or development projects and other procurement covered by Republic Act No. for the purpose of prescribing the necessary rules and regulations for the modernization. 27 . namely. That for the portions financed by the Government. and therefore shall be through public bidding. 9184 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. entitled “An Act Authorizing the Financing. accountability. otherwise known as the “Government Procurement Reform Act” (GPRA). except for the following: a) Acquisition of real property which shall be governed by Republic Act No. 2 IRR-A of R. equity. 8974 (R. OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT (AS AMENDED) RULE I – GENERAL PROVISIONS Section 1.” as amended: Provided.” is promulgated pursuant to Section 75 of Republic Act No. Construction. efficiency. and for Other Purposes. Operation and Maintenance of Infrastructure Projects by the Private Sector. 9184). standardization. Declaration of Policy The provisions of this IRR-A are in line with the Government’s commitment to good governance and its effort to adhere to the principle of transparency. 7718 (R.A. dated 18 September 2003.2 hereinafter called “IRR-A. It is the policy of the Government that procurement of infrastructure projects.Implementing Rules and Regulations of Republic Act No.A. 7718). Purpose and General Coverage This Implementing Rules and Regulations (IRR) Part A. 9184. the provisions of this IRR-A shall apply. 9184 (R.A. entitled “An Act to Facilitate the Acquisition of Right-of-Way Site or Location for National Government Infrastructure Projects and for Other Purposes. It took effect fifteen (15) days after its publication or on 08 October 2003.A. Section 2. It is also the policy of the Government to adopt a standard and uniform set of rules and regulations governing the procurement of infrastructure projects. Manila Times and Malaya.

entitled “An Act Providing for the Modernization. when warranted by circumstances. goods. Section 5. d) System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with government are. Section 4. 138. the following terms or words and phrases shall mean or be understood as follows: a) Act. b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. e) Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the Act and this IRR-A. state universities and colleges (SUCs). Scope and Application of IRR-A 4.Implementing Rules and Regulations of Republic Act No. subject to the provisions of Commonwealth Act No. office. c) Streamlined procurement process that will uniformly apply to all government procurement.2. 9184.1. Standardization and Regulation of the Procurement Activities of the Government and for other Purposes. bureau. Governing Principles on Government Procurement Government procurement shall be governed by these principles: a) Transparency in the procurement process and in the implementation of procurement contracts through wide dissemination of bid opportunities and participation of pertinent non-government organizations. agency. Definition of Terms For purposes of this IRR-A.” Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine Government is a signatory shall be observed. or instrumentality of the Government.” otherwise known as the Government Procurement Reform Act. 28 . b) goods. government financial institutions (GFIs). otherwise known as the “Flag Law. and consulting services by any procuring entity. by any branch. 9184 Section 3. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. investigated and held liable for their actions relative thereto. This IRR-A shall govern and apply to the procurement of: a) infrastructure projects. and local government units (LGUs). This IRR-A shall apply to the procurement of infrastructure projects. and c) consulting services. department. Refers to Republic Act No. 4. including government-owned and/or -controlled corporations (GOCCs). and that all these contracts are performed strictly according to specifications.

in the case of GOCCs and GFIs. this should be interpreted to mean that the Approved Budget for the Contract (ABC). and the budget approved by the Sanggunian in the case of LGUs. 518”). Refers to the budget for the contract duly approved by the head of the procuring entity. 9184 and its IRR-A basically refers to the proposed budget for the project approved by the HOPE based on the Annual Procurement Plan (APP) as consolidated from various Procurement Project Management Plans (PPMPs). as provided for in the General Appropriations Act (GAA) and/or continuing appropriations. and Republic Act No. the terms “ABC. Refer to those goods. manufacturer. distributor and/or consultant competing for the award of a contract in any government procurement. pre-bid conference. this IRR-A. For the purpose of this IRR-A. For purposes of. f) Bidding Documents. and throughout. distributor or consultant is said to be eligible if it meets all the eligibility requirements issued by the procuring entity. this IRR-A the terms “Competitive Bidding” and “Public Bidding” shall have the same meaning and shall be used interchangeably.A. A contractor. For purposes of. pursuant to Executive Order No. Refers to the Bids and Awards Committee established in accordance with Rule V of this IRR-A. materials and equipment that are repetitively used in the day-to-day operations of procuring entities in the performance of their functions. h) Competitive Bidding. and throughout. the term “Bid” shall be equivalent to and be used interchangeably with “Proposal” and “Tender. e) Bidder. 3 Per GPPB Resolution 011-2005. g) Common-Use Supplies. supplier. 518. Refers to an eligible contractor. the ABC referred to in the R. 8292 in the case of SUCs. Bid. series of 1979 (“E.” particularly when referring to the procurement of consulting services. insofar as National Government Agencies are concerned. supplier. in the case of national government agencies (NGAs). Thus. refers to the budget for the contract duly approved by the Head of the Procuring Entity (HOPE) which is contained in the Agency Budget as reflected in the General Appropriations Act (GAA) or to be proposed in succeeding GAAs. post-qualification. common-use supplies shall be those included in the Price List of the Procurement Service (PS) of the Department of Budget and Management (DBM). this IRR-A.Implementing Rules and Regulations of Republic Act No. Refers to a method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement. receipt and opening of bids.O. For purposes of. manufacturer.3 c) d) BAC. evaluation of bids. furnishing all information necessary for a prospective bidder to prepare a bid for the infrastructure projects. Refer to the documents issued by the procuring entity as the bases for bids.” “Approved Budget for the Contract” and “Approved Budget” shall have the same meaning and shall be used interchangeably. eligibility screening of prospective bidders. the corporate budget for the contract approved by the governing board. goods and/or consulting services required by the procuring entity. dated 26 May 2005. and throughout. 9184 b) Approved Budget for the Contract. and award of contract. Refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to and in consonance with the requirements of the bidding documents. 29 .

as well as procurement of materials and supplies provided by the procuring entity for such services. Refers to the Government Electronic Procurement System as provided in Section 8 of this IRR-A. j) k) G-EPS. rehabilitation. security4. 30 .Implementing Rules and Regulations of Republic Act No. the Head of each decentralized unit shall be considered as the head of the procuring entity subject to the limitations and authority delegated by the head of the agency. department. The term “related” or “analogous services” shall include. the term “infrastructure projects” shall have the same meaning as and shall be used interchangeably with “civil works. repair. whether in the nature of equipment. health maintenance services. for the revised rules on cut-throat competition. or office. or his duly authorized official. shore protection. materials and general support services. stationery. or personal property of any kind. n) Infrastructure Projects. l) m) GPPB. or (iii) the local chief executive. or office where the procurement is decentralized. and (vi) other technical services or special studies. Refer to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the Government to undertake such as. refer to GPPB Circular 02-2006. civil works components of information technology projects. which may be needed in the transaction of public businesses or in the pursuit of any government undertaking. airports. (ii) pre-investment or feasibility studies. department. however. Head of the Procuring Entity. for NGAs and the constitutional commissions or offices. (v) management and related services. improvement. (ii) the governing board or its duly authorized official. including non-personal or contractual services such as the repair and maintenance of equipment and furniture. That in an agency. flood control and drainage. supplies. Goods. hospital buildings. except consulting services and infrastructure projects. Refers to the Government Procurement Policy Board created in accordance with Rule XX of this IRR-A. but not be limited to. Include the construction. and throughout this IRR-A.” purpose of attracting and aggregating multiple users together in a central virtual space. and branches of government. sewerage and solid waste management systems. o) Portal. irrigation. for GOCCs. janitorial. furniture. and related or analogous services. demolition. sanitation. For purposes of. communication facilities. 9184 i) Consulting Services. school buildings. and other services essential to the operation of the procuring entity. but not limited to: (i) advisory and review services. seaports. hauling. (iii) design. dated 10 April 2006. water supply. energy/power and electrification facilities. for LGUs: Provided. media advertisements. materials for construction. Refers to: (i) the head of the agency or body. Refer to all items. Refers to a website that integrates a wide variety of contents for the 4 In the procurement of security services. GFIs and SUCs. (iv) construction supervision. project or activity. railways. lease or purchase of office space. national buildings. and other related construction projects of the government. restoration or maintenance of roads and bridges. as well as trucking.

the nature of the procurement. the use of the generic procurement manuals.2. its procurement shall be governed by the provisions of R.A. constitutional commission or office. Refers to any branch. 6.O. agency. The GPPB shall formulate. 518. infrastructure projects. However. The ABC for the contract shall be at all times consistent with the appropriations for the project authorized in the GAA and/or continuing appropriations. q) Procuring Entity. In the case of projects funded from lump-sum appropriations. With respect to real property. This shall be followed with the forms for the more specialized procurements. Standardization of Procurement Process and Forms 6. the head of the procuring entity shall immediately update the APP to include such projects or contracts. In case of projects involving mixed procurements.. or instrumentality of the Government. rules and regulations. 31 . to suit the particular needs of the procuring entity. office. Section 6. department. 6. in the case of NGAs. bureau. 8974 and other applicable laws. GFI. and standard evaluation documents shall be mandatory upon all procuring entities. Once issued by the GPPB. the corporate budget approved by the governing boards.Implementing Rules and Regulations of Republic Act No. approve and disseminate the generic procurement forms. All procurement should be within the approved budget of the procuring entity and should be meticulously and judiciously planned by the procuring entity concerned. goods. including GOCC. Refers to the acquisition of Goods. or consulting services. 9184 p) Procurement. consulting services and Engineering Supervision and Administrative Overhead (ESAO).1. whenever necessary. shall be determined based on the primary purpose of the contract. Procurement Planning and Budgeting Linkage 7. Procurement shall also include the lease of goods and real estate. not later than 30 days upon the approval of this IRR-A. in the case of GOCCs. RULE II – PROCUREMENT PLANNING Section 7. SUC and LGU procuring Goods. the GPPB shall pursue the development and approval of generic procurement manuals and standard bidding documents and forms including forms to be used for major procurement like drugs and textbooks. To systematize the procurement process. and the contracting for Infrastructure Projects by the Procuring Entity.e. the ABC shall cover the individual cost components of civil works only. generic standard bidding documents and forms.3. No government procurement shall be undertaken unless it is in accordance with an approved Annual Procurement Plan (APP).1. For infrastructure contract packages projects. and the budget approved by the Sanggunian in the case of LGUs. pursuant to E. The other components of the project such as right-of-way (ROW). avoid confusion and ensure transparency. modifications may be made particularly for major and more specialized procurement subject to the approval of the GPPB. Consulting Services and Infrastructure Projects. shall comply with the applicable provisions of law or agency guidelines. Consulting Services. i.

7.1. 9184 7. for each individual project. and Executive Order No.5. Updating of the individual PPMPs and the consolidated APP for each procuring entity shall be undertaken every six (6) months or as often as may be required by the head of the procuring entity. 7. the Electronic Procurement System (EPS) established in accordance with Executive Order No. Consistent with government fiscal discipline measures. c) the procurement methods to be adopted. shall continue to be 32 . goods and consultancy services. The G-EPS shall serve as the primary and definitive source of information on government procurement. Procurement by Electronic Means and the Government Electronic Procurement System (G-EPS) 8. For this purpose. The APP shall include provisions for foreseeable emergencies based on historical records. the Plan shall consider the appropriate timing/phasing of related project activities such as engineering design and acquisition of ROW to reduce/lower project costs. The PPMP shall include: a) the type of contract to be employed.O.Implementing Rules and Regulations of Republic Act No. In case of Infrastructure Projects. b) the extent/size of contract scopes/packages. there shall be a single portal that shall serve as the primary source of information on all government procurement. To promote transparency and efficiency. The APP shall bear the approval of the head of the procuring entity or second-ranking official designated by the head of the procuring entity to act on his behalf. For purposes of this IRR-A. series of 2001 (E. and b) printing of the textbooks.g. 40. 7. d) the time schedule for each procurement activity.4. 322. a procurement shall be considered crucial to the efficient discharge of governmental functions if it is required for the day-to-day operations or is in pursuit of the principal mandate of the procuring entity concerned. Implementation of any project not included in the procuring entity’s APP shall not be allowed. information and communications technology shall be utilized in the conduct of procurement procedures.. In the case of textbooks for general use.1. that shall include. only those considered crucial to the efficient discharge of governmental functions shall be included in the APP. series of 2000. and e) the estimated budget for the general components of the contract e.2. Accordingly. and indicating if the procurement tasks are to be outsourced as provided in Section 53(e) of this IRR-A. the packaging of the contract shall be divided into two components: a) development of the manuscript. 40). The G-EPS 8. RULE III – PROCUREMENT BY ELECTRONIC MEANS Section 8. while the consolidation of these PPMPs into an APP shall be lodged with the BAC Secretariat of that procuring entity. The preparation and updating of the PPMPs shall be the responsibility of the respective Project Management Offices (PMOs) or end-user units of the procuring entities.3. a Project Procurement Management Plan (PPMP). civil works. and must be consistent with its duly approved yearly budget. Each procuring entity shall judiciously prepare.1. maintain and update an APP for all its procurement. These units may avail of the services of technical experts to review the individual PPMPs.

Implementing Rules and Regulations of Republic Act No. 9184

managed by the PS-DBM under the supervision of the GPPB, as the G-EPS in accordance with this IRR-A. 8.1.2. To take advantage of the significant built-in efficiencies of the G-EPS and the volume discounts inherent in bulk purchasing, all procuring entities shall utilize the G-EPS for the procurement of common-use supplies in accordance with the rules and procedures to be established by the GPPB. With regard to the procurement of non-common use items, infrastructure projects and consulting services, agencies may hire service providers through competitive bidding to undertake their electronic procurement: Provided, however, That these service providers meet the following minimum requirements: a) Comply with the provisions of the Act and this IRR-A, and Republic Act No. 8792 (R.A. 8792), otherwise known as the “Electronic Commerce Act;” Linked to the G-EPS, particularly with regard to the posting of all bid opportunities and awards; Allow parallel manual submission of bids to the procuring entity; Ensure that the BAC shall have complete control of the bidding process, and that the BAC’s sole authority to open bids is strictly observed; Its system must be virus-resilient and must provide sufficient security which is at least equivalent to that employed by the G-EPS, such as, but not limited to, firewall and encryption devices; Must provide for the use of electronic signatures and other current electronic authentication devices; Must have sufficient redundant back-up facilities; Must have provisions for linkage to the procuring entity’s Financial Management Information System (FMIS), Logistics Management Systems, and other internal information systems that may interact with the procurement process; and Electronic payment facilities, if used, shall comply with all laws, rules and regulations issued by the Government.

b) c) d) e)

f) g) h)

i)

The GPPB shall determine and certify compliance with the above requirements. However, the GPPB may delegate this task to technically capable agencies/offices/units of the Government. 8.2. Features of the G-EPS The G-EPS includes the following features: 8.2.1. The Electronic Bulletin Board a) The G-EPS shall have a centralized electronic bulletin board for posting procurement opportunities, notices, awards and reasons for award. All
33

Implementing Rules and Regulations of Republic Act No. 9184

procuring entities are required to post all procurement opportunities, results of bidding and related information in the G-EPS bulletin board. b) Procuring entities shall post the Invitation to Apply for Eligibility and to Bid in the electronic bulletin board in accordance with Section 21 of this IRR-A. Manufacturers, Suppliers, Distributors, Contractors and

8.2.2.

Registry of Consultants a)

The G-EPS shall have a centralized electronic database of all manufacturers, suppliers, distributors, contractors and consultants registered under the system. Registration shall entail the submission of the requirements specified by the PS-DBM. Submission of these requirements may be done on-line at the G-EPS website or physically at the G-EPS office. Registration shall be effective for one year and may be renewed, provided that the manufacturer, supplier, distributor, contractor or consultant concerned maintains its registration current and updated at least once a year, or more frequently when needed. Manufacturers, suppliers, distributors, contractors and consultants applying for registration must also indicate their account number with a bank duly licensed by the Bangko Sentral ng Pilipinas (BSP) to facilitate payment as well as the posting of bid and performance security, when applicable. The G-EPS shall deny registration to or exclude from the registry any party that is found to have willfully misrepresented any of the information provided in the application for registration or who is in the “blacklist” of the Government or any of its procuring entities from participating in any of its procurement opportunities. A manufacturer, supplier, distributor, contractor or consultant applying for registration shall be required to provide an e-mail address to which all communications from the BAC and the procuring entity shall be sent. The e-mail address provided shall be considered as such applicant’s information system for purposes of reckoning the date of sending or receipt of electronic messages or documents. Registered manufacturers, suppliers, distributors, contractors and consultants shall secure a digital certificate from the appropriate certification authority to be able to participate in the procurement activities of the G-EPS. Registration with the G-EPS is not tantamount to a finding of eligibility, nor is it a guaranty that a manufacturer, supplier, distributor, contractor or consultant may participate in a public bidding without first being determined to be eligible for that particular public bidding.

b)

c)

d)

e)

f)

g)

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Implementing Rules and Regulations of Republic Act No. 9184

8.2.3.

The Electronic Catalogue a) b) The G-EPS shall have a centralized electronic catalogue of common and non-common use goods, supplies, materials and equipment. Procuring entities shall procure common-use goods, supplies, materials and equipment from the Electronic Catalogue in the G-EPS. To be able to use the G-EPS, procuring entities shall be required to register and designate the officials or personnel authorized to transact with and operate the G-EPS from such procuring entities’ terminals. Procuring entities without internet access may avail of the G-EPS Public Access Terminals which shall be installed at DBM designated locations in the provinces and in Metro Manila: Provided, however, That they shall comply with Section 8.3 of this IRR-A. The Electronic Catalogue may also feature non-common use items that may be procured directly and without public bidding by procuring entities from suppliers: Provided, however, That for an item to be carried in the Electronic Catalogue for this purpose, the supplier thereof must have been determined as the Lowest Calculated Responsive Bidder in a previous bidding conducted by PS-DBM or by a procuring entity for PS-DBM: Provided, further, That such item will be featured in the Electronic Catalogue for a maximum period of six (6) months unless another supplier offers a price lower by at least five percent (5%) and such supplier is determined by the procuring entity that conducted the previous bidding to meet the eligibility and bidding requirements for the item, in which case the item from the latter supplier will be that featured in the Electronic Catalogue for the remainder of the six (6)month period.

c)

d)

8.2.4.

Additional Features
The G-EPS shall also feature a Virtual Store, Electronic Payment, Electronic Bid Submission, and such other features as may be developed in the future.

8.2.4.1.

Virtual Store The G-EPS may have a feature that will enable the ordering of commonuse and non-common use items online called a virtual store. The virtual store shall be open only to registered procuring entities and may not be accessed by suppliers.

8.2.4.2.

Electronic Payment The G-EPS may support e-Payment functions that will allow the system to manage the generation of purchase orders and the payment of bids processed through the system. The focus of this feature is to facilitate the electronic transfer of funds from PS-DBM to and from procuring entities and suppliers, and from procuring entities to suppliers for bids managed directly by the procuring entity. The system shall:
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Implementing Rules and Regulations of Republic Act No. 9184

a) Generate purchase orders from a bid notice, award notice or contract; b) Support approval process for purchase orders before any payment or fund transfer is processed; c) Have a process to submit request for payment upon delivery of goods and/or services and the completion of the approval process; and d) Have the ability to interface with the designated bank of the procuring entity and suppliers to support the electronic transfer of funds. 8.2.4.3. Electronic Bid Submission The G-EPS may support the implementation of e-Bid submission processes, which includes creation of electronic bid forms, creation of bid box, delivery of bid submissions, notification to supplier of receipt of bids, bid receiving and electronic bid evaluation. This facility shall cover all types of procurement for goods, infrastructure projects and consulting services. 8.3. Use of the G-EPS 8.3.1. All procuring entities are mandated to fully use the G-EPS in accordance with the policies, rules, regulations and procedures adopted by the GPPB and embodied in this IRR-A. In this connection, all procuring entities shall register with the G-EPS and shall undertake measures to ensure their access to an on-line network to facilitate the open, speedy and efficient on-line transmission, conveyance and use of electronic data messages or electronic documents. The PS-DBM shall assist procuring entities to ensure their on-line connectivity and help in training their personnel responsible for the operation of the G-EPS from their terminals. The rules and regulations governing the manual method of procurement shall apply whenever the rules in this Section are silent. Further, the GPPB is authorized to approve changes in the procurement process to adapt to improvements in modern technology, provided that such modifications are consistent with the provisions of Section 3 of the Act and this IRR-A. All central and regional offices of NGAs, GFIs, GOCCs, SUCs and city governments are mandated to use the G-EPS and all its available facilities by the end of 2003; all district offices of NGAs and provincial governments, by the end of 2004; all municipal offices of NGAs and all municipal governments, by the end of 2005; and barangays, by the end of 2006: Provided, however, That barangays may procure through the municipal governments.

8.3.2.

8.3.3.

8.4.

Pre-bid Conferences and Notices under the G-EPS
Pre-bid conferences shall be conducted in accordance with Section 22 of this IRR-A: Provided, however, That the requirement for face-to-face bidding conference may be replaced once videoconferencing or similar technology
36

8.4.1.

Implementing Rules and Regulations of Republic Act No. 9184

becomes the norm in business transactions in the country. Procuring entities with videoconferencing capabilities that have manufacturers, suppliers, distributors, contractors and/or consultants that also have videoconferencing capabilities may conduct their pre-bidding conferences electronically. 8.4.2. Requests for clarification from bidders may be sent electronically to the BAC. To be binding on bidders, clarifications and amendments to the Invitation to Apply for Eligibility and to Bid and to the bidding documents shall be in the form of Supplemental/Bid Bulletins which shall be posted in the G-EPS bulletin board. The Supplemental/Bid Bulletins mentioned in the immediately preceding Subsection as well as all other notices to be made by the BAC to the bidders or prospective bidders shall be posted in the G-EPS bulletin board and sent electronically to the e-mail address indicated in the bidders’ registration.

8.4.3.

8.5.

Registration, Eligibility Requirements and Submission of Bids under the G-EPS
Manufacturers, suppliers, distributors, contractors and/or consultants shall register with the G-EPS. All procuring entities already maintaining an electronic registry upon the effectivity of this IRR-A shall integrate the same with that of the G-EPS. A manufacturer, supplier, distributor, contractor or consultant duly registered with the G-EPS may participate in a procurement undertaken by any procuring entity, provided that the said manufacturer, supplier, distributor, contractor or consultant maintains its registration current and updated in accordance with the provisions of this IRR-A, and its registration is proper and relevant to the particular type of procurement. Letters of Intent (LOIs) and eligibility requirements, as the case may be, may be sent electronically to a procuring entity through the G-EPS: Provided, however, That the G-EPS shall allow manual submission of LOIs and eligibility requirements. The G-EPS shall generate and send an acknowledgement of any LOI or eligibility requirement received by it. Registered bidders determined to be eligible may submit their bids at any time before the closing date specified in the bidding documents. The G-EPS shall bar all incoming bids after such date. The G-EPS shall have a feature that allows the electronic submission of LOIs, eligibility requirements and bids. Upon receipt of a bid, the G-EPS shall generate and send a message to the bidder acknowledging such receipt.

8.5.1.

8.5.2.

8.5.3.

8.5.4. 8.5.5. 8.6.

Opening of Bids under the G-EPS
The BAC shall have the sole authority to open the bids. Only the financial proposals of bidders whose technical proposals meet the minimum technical requirements shall be opened or decrypted. An update of all procurement contracts, regardless of whether procurement is done electronically or manually, shall be posted on the G-EPS bulletin board.
37

8.6.1. 8.6.2. 8.6.3.

8. bids submitted through the G-EPS shall be sealed through electronic 38 . R. but not limited to. by whatever means.7.” other applicable penal laws. When any of the foregoing acts is done by the administrator(s) or employee(s) of a service provider hired by a procuring entity. otherwise known as the “Anti-Graft and Corrupt Practices Act. Security – The G-EPS shall be protected from unauthorized access or interference through the incorporation of security features such as. or in collusion with or by a private party who is a participant in the bidding process. Causing the unauthorized disclosure of any information or document submitted through the G-EPS. That such observers do not have any direct or indirect interest in the contract to be bid. Integrity and Confidentiality 9. employee(s) or private party shall be imposed the corresponding sanctions and/or penalties under this IRR-A. of bids submitted through the G-EPS ahead of the appointed time for the opening or decryption of such bids. but shall not be limited to. Without prejudice to criminal prosecution under the applicable provisions of the Act and this IRR-A. the status of procurement contracts.1.1. or Any other act that breaches or violates the Security.5. Observers The G-EPS shall allow observers. which shall be periodically upgraded to keep abreast with developments in technology: 9. to monitor the procurement proceedings on-line: Provided. For this purpose.4. duly authorized by the BAC. 4. 9184 The update shall include.2. Security. including the names of contract awardees and the amount of the contract. 9. Section 9. 8792. shall be able to alter the contents of bids submitted through the system or read the same ahead of the stipulated time for the decryption or opening of bids. 8. said administrator(s). 3019). however.1. including the system administrators and chairperson and members of the BAC.6. Hacking into or cracking the G-EPS.A. 3019 (R. public officials and employees who commit any of the following acts shall be deemed to have committed grave misconduct and shall be sanctioned and/or penalized in accordance with the applicable Civil Service rules and regulations: 1.1. 8. 3. Integrity and Confidentiality of the G-EPS.A.6. Opening or decryption. 2. The G-EPS shall incorporate the following features. Periodic tests shall be conducted to ensure that the system cannot be breached.Implementing Rules and Regulations of Republic Act No. firewalls. Integrity – The G-EPS shall ensure that no person. or aiding another person to hack into or crack the same. Republic Act No.

Implementing Rules and Regulations of Republic Act No. 9. 9. suppliers. no electronic message or document sent through the system shall be divulged to third parties unless such electronic message or document was sent after the sender was informed that the same will be made publicly available. Similarly. The BACs may be organized either according to: (a) geographical location of PMO or end-user units of the procuring entity. The authenticity of messages and documents submitted through the GEPS shall also be ensured by the use of electronic signatures. the head of the procuring entity may create separate BACs where the number and complexity of the items to be procured shall so warrant. the performance of procuring entities shall be tracked to monitor the settlement of their obligations to manufacturers. In line with the objective to integrate the operations of foreign assisted projects to the mainstream operation of agencies separate BACs created to manage foreign assisted projects are discouraged. contractors and consultants shall be tracked to monitor compliance with delivery schedules and other performance indicators. Competitive Bidding All procurement shall be done through competitive bidding. suppliers. For this purpose. RULE V – BIDS AND AWARDS COMMITTEE Section 11.5. 9184 keys. distributors. Confidentiality – The G-EPS shall ensure the privacy of parties transacting with it. including technical designs.4. The G-EPS shall protect the intellectual property rights over documents. BAC Structure Each procuring entity shall establish in its head office a single BAC to undertake the functions specified in Section 12 of this IRR-A. and allows the Commission on Audit (COA) to verify the security and integrity of the system at any time. submitted in response to Invitations to Apply for Eligibility and to Bid. distributors. contractors and consultants.1. 9. to expedite the procurement process for practical intents and purposes. However. Audit Trail – The G-EPS shall include a feature that provides for an audit trail for on-line transactions. Similar committees for decentralized and lower level offices may also be formed when deemed necessary by the head of the procuring entity. Performance Tracking – The performance of manufacturers. The creation of the separate BACs shall be limited in order to facilitate professionalization and harmonization of procedures and standards. or (b) nature of procurement. RULE IV – COMPETITIVE BIDDING Section 10.1.3.1. except as provided in Rule XVI of this IRR-A. The BAC and its Composition 11.1. 39 .

2. with knowledge. General Services Offices. 11. to the extent possible. regional offices and sub-regional/district offices.2. offices. Provisional Members: 4. represents the finance area of the procuring entity. the ViceChairman shall be a regular member of the BAC. An officer. departments.2. to the extent possible. has knowledge. An officer. Legal Office. shall be designated by the head of the procuring entity. 5 Refer to Appendix A for clarification on the BAC composition of LGUs. provided that in the case of bureaus.1. with knowledge. and 5. A representative from the end user unit who has knowledge of procurement laws and procedures. experience and/or expertise in procurement. provided that in the case of bureaus. the term “permanent” shall refer to a plantilla position within the procuring entity concerned. experience and/or expertise in procurement who. 2. An officer who has technical expertise relevant to the procurement at hand. BAC Composition National Government agencies. and. The members of the BAC. bureaus. and GFIs: Regular Members: 1. The members of the BAC shall be personnel occupying plantilla positions of the procuring entity concerned. but not limited to the following: Office of the Administrator. including the judiciary and legislative branches. SUCs. Budget Office. The Chairman of the BAC shall be at least a third ranking permanent official of the procuring entity. The end user office shall always be represented in the BAC. 11. regional offices and subregional/district offices. GOCCs. Chairman. For purposes of this IRR-A. Moreover. 40 .2. 9184 11. or instrumentalities of the Government. who is at least a third ranking permanent official of the procuring entity. Engineering Office. 3. including the Chairman and the Vice-Chairman. who is at least a fifth ranking permanent official. to the extent possible. who is at least a fifth ranking permanent official. BAC members shall be at least a third ranking permanent personnel. Local Government Units 5 The BAC shall be composed of one (1) representative each from the regular offices under the Office of the Local Chief Executive such as.Implementing Rules and Regulations of Republic Act No. experience and/or expertise in procurement who. BAC members shall be at least a third ranking permanent personnel. constitutional commissions. represents the legal or administrative area of the procuring entity.

costing fifty million pesos (P50. however.000. The members to be designated by the head of the procuring entity to the BAC shall be at least five (5).1. particularly in the eligibility screening. and perform such other related functions as may be necessary. It shall be 12.5. and it shall prepare a procurement monitoring report that shall be approved and submitted by the head of the procuring entity to the GPPB on a semestral basis. transfer. Unless sooner removed for a cause. In case of resignation. renewable at the discretion of the head of the procuring entity. and five million pesos (P5. re-assignment. 11. however.Implementing Rules and Regulations of Republic Act No. including the creation of a Technical Working Group (TWG) from a pool of technical. the BAC shall also recommend to the head of the procuring entity the use of Alternative Methods of Procurement as provided for in Rule XVI hereof.4. In no case shall the head of the procuring entity and/or the approving authority be the Chairman or a member of the BAC.2. recommend the imposition of sanctions in accordance with Rule XXIII. The procurement monitoring report shall cover all procurement activities specified in the APP. including the standard and actual time for each major procurement activity. death. evaluation of bids and postqualification. a member shall be suspended or removed by the head of the procuring entity. separation. 41 .000) and above for goods and infrastructure projects. The report shall cover major activities from the holding of the pre-procurement conference to the issuance of notice of award and the approval of the contract. Section 12. The members shall elect among themselves who shall act as the Chairman and Vice-Chairman. recommend award of contracts to the head of the procuring entity or his duly authorized representative: Provided.000) and above for consulting services. Functions of the BAC 12. copy furnished the BAC. That in case of leave or suspension. but not more than seven (7).2. such disapproval shall be based only on valid. the head of the procuring entity is encouraged to extend the terms of office of deserving members. The BAC shall have the following functions: advertise and/or post the invitation to bid. retirement. determine the eligibility of prospective bidders. the replacement shall serve only for the duration of the leave or suspension. That in the event the head of the procuring entity shall disapprove such recommendation. 9184 The local chief executive shall designate the members of the BAC. removal. conduct the evaluation of bids. undertake post-qualification proceedings. conduct pre-procurement and pre-bid conferences.2. In proper cases. The BAC shall be responsible for ensuring that the procuring entity abides by the standards set forth by the Act and this IRR-A. financial and/or legal experts to assist in the procurement process.2. receive bids. In the interest of professionalization. the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment. whether ongoing and completed. 11. For justifiable causes. resolve motions for reconsideration.3. 11.000. the replacement shall serve only for the unexpired term: Provided. reasonable and justifiable grounds to be expressed in writing.

provided that the presence of the Chairman or Vice-Chairman shall be required.Implementing Rules and Regulations of Republic Act No. Observers 13.3. invite. but not limited to: 42 . and The National Constructors Association of the Philippines. shall preside at all meetings of the BAC. however. the ViceChairman. Meetings The Chairman or. To enhance the transparency of the process.1. (PCA). Inc. b) For goods A specific relevant chamber-member of the Philippine Chamber of Commerce and Industry (PCCI). in his absence. nor shall the representatives of BAC members be authorized to sign in behalf of the members represented. 12. the Vice-Chairman. the BAC shall. Quorum A majority of the total BAC composition as designated by the head of the procuring entity shall constitute a quorum for the transaction of business. 9184 submitted in printed and electronic format within ten (10) working days after the end of each semester. but not limited to: The Philippine Constructors Association. in his absence. 12. at least two (2) observers to sit in its proceedings: 1. That the Chairman or. for example: a) For infrastructure projects – (i) National Constructors Associations duly recognized by the Construction Industry Authority of the Philippines (CIAP). (NACAP). At least one (1) shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand. such as. and (ii) The Philippine Institute of Civil Engineers (PICE). c) For consulting services (i) A project-related professional organization accredited or duly recognized by the Professional Regulation Commission (PRC) or the Supreme Court (SC). in addition to the representative of the COA. shall vote only in case of a tie. The decision of at least a majority of those present at a meeting at which there is quorum shall be valid and binding as an act of the BAC: Provided. Inc. in all stages of the procurement process. such as. Observers and representatives of BAC members shall have no right to vote during BAC meetings. Section 13.4.

Abstract of Bids. 13. Minutes of related proceedings of BAC meetings. provided that they have been duly invited in writing. Responsibilities of the Observers The observers shall have the following responsibilities: 1.Implementing Rules and Regulations of Republic Act No. 3. 13. and The Philippine Institute of Certified Public Accountants (PICPA). c. e. APP and related PPMP. and should meet the following criteria: 1. Preparation of the report either jointly or separately indicating their observations made on the bidding activity conducted by the BAC for submission to the Head of the Procuring entity. Knowledge. d.3. copy furnished the BAC Chairman. Post-qualification summary report. and Copies of “opened” proposals.4. and contract award. 13. The observers shall come from an organization duly registered with the Securities and Exchange Commission (SEC). and Any other criteria that may be determined by the BAC. the BAC shall furnish them a copy of the following documents upon their request: a. b. The other observer shall come from a non-government organization (NGO). experience or expertise in procurement or in the subject matter of the contract to be bid. postqualification. Observers may also give a copy of their report to the Office of the Ombudsman/Resident Ombudsman if the BAC is found to have failed in following the prescribed bidding procedures or for any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the Government as defined in this IRR-A. The absence of observers will not nullify the BAC proceedings. 43 . opening of bids.2. 2. 2. 9184 The Philippine Institute of Civil Engineers (PICE). For this purpose. Observers will be informed at least 2 days before the stages of procurement to which observers shall be invited: pre-bid conference. The report shall assess the extent of the BAC’s compliance with the provisions of this IRR-A and areas of improvement in the BAC’s proceedings. and special meetings of the BAC. Absence of direct or indirect interest in the contract to be bid out. or (ii) The Confederation of Filipino Consulting Organizations (COFILCO).

10. To sign the abstract of bids if.Implementing Rules and Regulations of Republic Act No. Organize and make all necessary arrangements for the BAC meetings. other units of the line agency. The head of the procuring entity shall create a Secretariat which will serve as the main support unit of the BAC. regional offices and sub-regional/ district offices. Consolidate PPMPs from various units of the procuring entity to make them available for review as indicated in Section 7 of this IRR-A. 3. providers of goods. and the general public. Section 14. Attend BAC meetings as Secretary. or if not available. in their independent observation. The head of the Secretariat in central offices shall be at least a fifth ranking permanent employee or. the bidding activity conducted by the BAC followed the correct procedure as indicated in this IRR-A. as well as procurement related task.2. 3. The Secretariat shall have the following functions and responsibilities: 1. 4. 8. Monitor procurement activities and milestones for proper reporting to relevant agencies when required. and To sign the post-qualification summary report if. 14. 2. However. Provide administrative support to the BAC. PMOs. Take custody of procurement documents and be responsible for the sale and distribution of bidding documents to interested bidders. Assist in managing the procurement processes. in their independent observation. 5. or shall be at least a third ranking permanent employee in bureaus. BAC Secretariat 14. 7. if not available. Make arrangements for the pre-procurement and pre-bid conferences and bid openings. 9. a permanent employee of the next lower rank. he may reorganize this unit by designating it as BAC Secretariat and redeploying appropriate existing personnel to it to perform this function. a permanent official of the next lower rank. 44 . He may also designate an existing organic office within the said procuring entity to serve as Secretariat. and Be the central channel of communications for the BAC with end users. the BAC followed the procedure as indicated in this IRR-A and that the observer is amenable to the results of the post-qualification. civil works and consulting services.1. other government agencies. 9184 2. to strengthen and promote the professionalization of the organizations’ procuring unit. 6. Prepare Minutes of the BAC meetings.

bid evaluation and post-qualification. submission of bids and opening of bids. The Bidding Documents shall be prepared by the procuring entity following the standard forms and manuals prescribed by the GPPB. 16. and the Procurement Units of procuring entities. RULE VI .6 Section 16. or unify all procurement activities of the organization. For this purpose. and professionalize the same. the BAC shall consider the same in their selection of the TWG members. In line with the standardization of procurement procedures and the thrust towards strengthening the procurement function to increase operational efficiency and effectiveness. The GPPB shall establish a sustained training program to develop the capability of the BACs. In turn. The bidding documents shall include the following: a) b) c) Approved Budget for the Contract. To expedite the procurement process. dated 07 October 2005. TWGs. Section 15.3. BAC Secretariats. heads of procuring entities shall aim to consolidate. subject to the relevant rules of the DBM. The procuring entity may also grant payment of honoraria to the TWG members. 9184 14.2.PREPARATION OF BIDDING DOCUMENTS Section 17. Form and Contents of Bidding Documents 17.1. the DBM shall promulgate the necessary guidelines. 6 Refer to DBM Budget Circular 2004-5A. including criteria for eligibility. Procurement Proficiency In addition to integrity. TWG Members and Procurement Units 16.1. 16. Eligibility Requirements. 45 . whether locally funded or foreign assisted. the head of the procuring entity shall ensure that the members of the BAC and TWG shall give utmost priority to BAC assignments over all other duties and responsibilities. time and place of the pre-bid Conference (where applicable). until the requirements for the said assignments at hand are completed. Professionalization of BAC. Instructions to Bidders. heads of procuring entities shall consider procurement proficiency as a factor in designating officials to the BAC as well as the head of the Secretariat and Procurement Unit. infrastructure projects or consulting services. and whether pertaining to goods. as well as the date.Implementing Rules and Regulations of Republic Act No.3. Honoraria of BAC and TWG Members The procuring entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds.

credit or premium in the bid evaluation. shall subsequently form an integral part of the contract. To provide ample time. (c) the obligations. where applicable. and Form of Contract.6. (b) the expected contract duration. 17. Prospective bidders shall be given ample time to examine the bidding documents and to prepare their respective bids. Terms of Reference (TOR). The bidder may submit an offer which provides for superior specifications and/or better terms and conditions to the Government at no extra cost. and List of Goods or Bill of Quantities. The BAC shall issue the bidding documents upon payment of the corresponding cost thereof to the collecting/disbursing officer of the procuring entity concerned. The bidding documents. including the acquisition of the ROW. Price Form. as may be amended. delivery schedule and/or time frame. Plans and Technical Specifications. 17. The procuring entity may require additional document requirements or specifications such as summary of data. scope and expected outputs and/or results of the proposed contract. The bidding documents shall clearly and adequately define. duties and/or functions of the winning bidder.4. Form of Bid. 9184 d) e) f) g) h) i) j) k) 17. However.Implementing Rules and Regulations of Republic Act No. Detailed Engineering for the Procurement of Infrastructure Projects No bidding and award of contract for infrastructure projects shall be made unless the detailed engineering investigations. the concerned BAC shall promptly issue the bidding documents for the contract to be bid at the time the Invitation to Apply for Eligibility and to Bid is first advertised. for consulting services. 17. and General and Special Conditions of Contract. Amount and Validity Period of Bid Security. among others: (a) the objectives. 17.2.5. Form.3. the estimated quantity in the case of procurement of goods. surveys and designs except for design and build schemes wherein bidders shall be allowed to submit its detailed engineering designs as part of its bid. Form and Amount of Performance Security and Warranty. Delivery Time or Completion Schedule. Bidders may be asked to pay for the bidding documents to recover the cost of its preparation and development. The specifications and other terms in the bidding documents shall reflect minimum requirements or specifications required to meet the needs of the procuring entity in clear and unambiguous terms. these shall not be given any bonus. such as track record to be determined by the head of the procuring entity. Scope of work. and (d) the minimum eligibility requirements of bidders. for 46 . facilities and/or services where applicable and necessary to complete the information required for the bidders to prepare and submit their respective bids.

labor. water. requirements.3. The procedures for the procurement and contract implementation of infrastructure projects using a design and build scheme shall be in accordance with the provisions of Annex “G” of this IRR-A.1. shall be deemed to have inspected the site and determined the general characteristics of the contract works and the conditions indicated above. and (d) other factors that may affect the cost. It shall be the sole responsibility of the prospective bidder to determine and to satisfy itself by such means as it considers necessary or desirable as to all matters pertaining to the contract to be bid. including: (a) the location and the nature of the contract. and d) Having complied with his responsibility as provided for under Section 22.Implementing Rules and Regulations of Republic Act No. (c) transportation facilities. The BAC shall require an affidavit of such site inspection from the eligible bidder.7. location and availability of construction aggregates and other materials. c) Having made an estimate of the facilities available and needed for the contract to be bid.7. 17. the bidder. b) Having acknowledged all conditions. a bidder shall execute a sworn statement attesting to the foregoing responsibilities. (b) climatic conditions.5. affecting the implementation of the contract. to be submitted by the bidder as an annex to its technical proposal. Failure to observe any of the above responsibilities shall be at the risk of the prospective bidder or eligible bidder concerned. dated 28 September 2007.1. 17.7. In the case of procurement of infrastructure projects. project or work.7 17.2. if any. by the act of submitting its bid. nature and condition of the terrain. 9184 the project have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the head of the procuring entity concerned or his duly authorized representative. local or otherwise. and in accordance with the provisions of Annex “A” of this IRR-A. 17. project or work. geological conditions at the site communication facilities.7. For this purpose. Responsibility of Prospective or Eligible Bidder A prospective or eligible bidder shall be responsible for: a) Having taken steps to carefully examine all of the bidding documents. (c) for the procurement of infrastructure projects. electric power and access roads. 7 As amended by GPPB Resolution 022-2007. 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. duration and execution or implementation of the contract. 47 .

in cases where the cost of the awarded contract is affected by any applicable new laws. Prior to their official release to prospective bidders. through its Secretariat. technical plans. During this conference.4. a contract price adjustment shall be made or appropriate relief shall be applied on a no loss-no gain basis. scope of work. including consultants hired by the procuring entity who prepared the technical plans.7. Reference to Brand Names Specifications for the procurement of goods shall be based on relevant characteristics and/or performance requirements. Review. availability of appropriations and programmed budget for contract. no aspect of the bidding documents shall be divulged or released to any prospective bidder or person having direct or indirect interest in the project to be procured. the Secretariat. 3. Pre-procurement Conference 20. However. shall call for a pre-procurement conference. Section 18. Prior to the advertisement or the issuance of the Invitation to Apply for Eligibility and to Bid for each procurement undertaken through a public bidding. Ensure that the procurement is in accordance with the project and annual procurement plans. acts and regulations of the Philippines which may affect the contract in any way. as well as those who separately reviewed these documents prior to final approval. Reference to brand names shall not be allowed. among other aspects. the bidders are deemed to have become familiar with all existing laws. if any. Access to Information In all stages of the preparation of the bidding documents. confirmation of the availability of ROW. and/or TOR. The preprocurement conference shall be attended by the BAC. 48 . including. except those officially authorized in the handling of the documents. the unit or officials. the BAC. and other related matters.Implementing Rules and Regulations of Republic Act No. Determine the readiness of the procurement at hand. bidding documents and the draft advertisement. the procuring entity shall ensure equal access to information. Before submitting their bids. decrees. TORs. modify and agree on the criteria for eligibility screening to ensure their fairness. or to any party. RULE VII – INVITATION TO BID Section 20. ordinances. the participants. 9184 17. shall: 1. provided such is not covered by the contract provisions on price adjustment. technical specifications. ordinances. led by the BAC. as the case may be.1. for each procurement. and adherence of bidding documents. the ownership of affected properties. 2. regulations or other acts of Government promulgated after the date of bidding. reasonableness and that they are of the “pass/fail” type and are written in such manner. specifications. to relevant general procurement guidelines. Section 19.

The holding of a pre-procurement conference may not be required for small procurements.e.8 20. procurement of goods costing two million pesos (P2. 9184 4. For the procurement of: a) Goods. Advertising and Contents of the Invitation to Bid 21.15.00) and below. and 8 As amended by Memorandum Order No. credit or premium in the bid evaluation.000. 7.000. as provided for in Section 24. modify and agree on the criteria for the evaluation of bids/proposals to ensure their fairness.00) and below. and procurement of consulting services costing one million pesos (P1. published in the Official Gazette on 29 August 2005. the name and location of the contract to be bid. Section 21. 5. and other important or relevant features of the works..00) and below. Review. without any bonus. Reiterate and emphasize the importance of confidentiality during the bid evaluation process. if the quality-cost based evaluation procedure.000. Clarify that the specifications and other terms in the bidding documents are minimum requirements and that the bidder may submit an offer which provides for superior specifications and/or better terms and conditions to the Government at no extra cost. from three to seven firms. review and agree on the weights to be allocated to the technical and financial criteria and recommend to the head of the procuring entity for approval. size. Review and agree on the number of eligible bidders to be included in the shortlist. and the minimum score required. as provided for in Section 33.1. b) Infrastructure projects. the project background and other relevant information regarding the proposed contract works.2. procurement of infrastructure projects costing five million pesos (P5.000. among others: 1. including a brief description of the type.5. i.3. Review and agree on whether the quality-based or quality-cost based evaluation procedure shall be adopted in the selection of consultant. reasonableness and applicability to the procurement at hand. 49 . 176. 6. and the applicable sanctions and penalties.2. the name of the contract to be bid and a brief description of the goods to be procured. as provided for in section 33.000. dated 27 June 2005.000.1. major items. Contents of the Invitation to Apply for Eligibility and to Bid The Invitation to Apply for Eligibility and to Bid shall provide prospective bidders the following information.Implementing Rules and Regulations of Republic Act No. and 6. as well as agree on measures to ensure compliance with the foregoing.

if available. the short listing of prospective bidders. distributors. The name.Implementing Rules and Regulations of Republic Act No. The date. To ensure the widest dissemination of the Invitation to Apply for Eligibility and to Bid. and post-qualification. the price of the bidding documents.2. if any. e-mail and website addresses of the concerned procuring entity. The source of funding. 4.2. and the opening of bids. b) Posted continuously in the website of the procuring entity concerned. as certified by the head of the BAC Secretariat of the procuring entity concerned. . suppliers. the Invitation to Apply for Eligibility and to Bid shall be: a) Advertised at least once in one (1) newspaper of general nationwide circulation which has been regularly published for at least two (2) years before the date of issue of the advertisement. as well as its designated contact person.1. the website of the procuring entity’s service provider. the place where the bidding documents may be secured and. address. The approved budget for the contract to be bid.5. contractors and/or consultants must register with the G-EPS in accordance with the provisions of Section 8. if applicable. 6. if applicable. in the case of the procurement of consulting services. 9184 c) Consulting services. where applicable. The period of availability of the bidding documents. 8. Such registration shall ensure that prospective bidders will 50 21.4 of this IRR-A and for the procurement of common-use goods and supplies. 5.3 and 21. the submission and receipt of bids. the pre-bid conference if any.1 of the Act and this IRR-A. facsimile number.2. and c) Posted at any conspicuous place reserved for this purpose in the premises of the procuring entity concerned for seven (7) calendar days. time and place of the deadline for the submission and receipt of the eligibility requirements. the name of the contract to be bid. Advertising and Posting of the Invitation to Apply for Eligibility and to Bid Except as otherwise provided in Sections 21. 3. 7. and the G-EPS for seven (7) calendar days starting on date of advertisement. as provided in Section 8 of this IRR-A. 2.2. and 9. Such other necessary information deemed relevant by the procuring entity. the examination and evaluation of bids. A general statement on the criteria to be used by the procuring entity for the eligibility check. 21. The contract duration or delivery schedule. telephone number. manufacturers. a general description of the project and other important or relevant information.

and the same must be available for at least seven (7) calendar days from the date the bidding documents were first issued.2.2. if any. a maximum period of sixty (60) calendar days from date of advertisement and/or 1st date of posting of the Invitation to Apply for Eligibility and to Bid up to the opening of bids. the eligibility documents shall be issued and made available at the time the Invitation to Apply for Eligibility and to Bid is advertised or posted. 9184 receive an automatic notification of all bidding opportunities in government agencies. publish the Invitation to Apply for Eligibility and to Bid in a local newspaper of general circulation within the respective periods stated in this Section. For projects/contracts for 9 As amended by GPPB Resolution 014-2006. For contracts to be bid with an ABC costing two million pesos (P2. and posted at any conspicuous place reserved for this purpose in the premises of the procuring entity concerned.000.2.000. the Invitation to Apply for Eligibility and to Bid shall be posted at least in the website of the procuring entity concerned. published in the Philippine Star on 09 September 2006. 10 Ibid.Implementing Rules and Regulations of Republic Act No.00) and below for the procurement of infrastructure projects.3. a maximum period of thirty (30) calendar days from date of advertisement and/or 1st day of posting of the Invitation to Apply for Eligibility and to Bid up to opening of bids. the G-EPS. the website of the procuring entity’s service provider.00) and below for the procurement of goods.000. the following maximum periods from date of advertisement and/or 1st day of posting of the Invitation to Apply for Eligibility and to Bid up to bid opening shall be observed: Approved Budget for the Contract (in pesos) Fifty (50) million and below Above fifty (50) million Period 36 calendar days 50 calendar days (iii) For consulting services.9 21. in addition to the requirements specified in this Section. during the same period as above. if available. the procuring entity may. and five million pesos (P5. For infrastructure projects and consulting services. With respect to priority programs and infrastructure projects funded out of the annual GAA which are intended for implementation within the province. dated 20 July 2006. (ii) For infrastructure projects. The bidding documents must be issued after the conduct of eligibility check and/or short listing. as provided in Section 8 of this IRR-A. 51 . The following periods from date of advertisement and/or 1st day of posting of the Invitation to Apply for Eligibility and to Bid up to the opening of bids shall be observed: (i) For goods. as certified by the head of the BAC Secretariat of the procuring entity concerned.000. 10 21.

21.00) and below and/or those whose duration is four (4) months or less. may simply submit its LOI for the contract to be bid: Provided.000. For contracts to be bid costing less than one million pesos (P1. during the same period as above. the Invitation to Apply for Eligibility and to Bid shall be posted at least in the website of the procuring entity concerned. conditions and specifications stipulated in the bidding documents.000. which must be received by the BAC not later than seven (7) calendar days from last date of posting of the Invitation to Apply for Eligibility and to Bid provided in Section 21. Pre-bid Conference 22.2 of this IRR-A. the interested party shall submit a written LOI together with its application for eligibility.1. 11 Ibid. the BAC shall convene at least one (1) pre-bid conference to clarify and/or explain any of the requirements. however. pre-bid conferences may be conducted at the discretion of the BAC. however. a pre-bid conference may also be conducted upon written request of any prospective bidder.3. as certified by the head of the BAC Secretariat of the procuring entity concerned. LOI for the Procurement of Infrastructure Projects and Consulting Services For the procurement of infrastructure projects and consulting services. advertisement in a newspaper as required in this Section may be dispensed with: Provided.3. further.3.00) or more. 52 . 9184 consulting services with an ABC costing one million pesos (P1. if available.000. as certified by the head of the BAC Secretariat of the procuring entity concerned.4.Implementing Rules and Regulations of Republic Act No. That posting shall be made in the website of the procuring entity concerned. and posted at any conspicuous place reserved for this purpose in the premises of the procuring entity concerned.2.1. or a procuring entity’s electronic registry already existing upon the effectivity of the Act and that allows electronic submission and/or recording/entry of eligibility requirements simultaneously with registration. if any. if available.000. and posted at any conspicuous place reserved for this purpose in the premises of the procuring entity concerned. 21. electronically or otherwise. 21.11 A contractor or consultant that is duly registered and that maintains its registration current and updated in the G-EPS electronic registry. That its registration is proper and relevant for the particular contract to be bid: Provided. during the same period as above. as provided in Section 8 of this IRR-A. Section 22. terms.000. the G-EPS.2. That the eligibility of the contractor or consultant to participate in the bidding shall still be determined by the BAC through the conduct of an eligibility check. the G-EPS.000. For alternative methods of procurement as provided for in Rule XVI of this IRR-A. 21. For contracts to be bid with an approved budget of one million pesos (P1.00). the website of the procuring entity’s service provider. Subject to the approval of the BAC.

5. 22. and on the G-EPS.2.5.1. however. for the procurement of goods. at least seven (7) calendar days before the deadline for the submission and receipt of bids.1 of this IRR-A. on or before the deadline specified in the Instructions to Bidders. 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. among other things. The pre-bid conference shall discuss.3. 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 Section 26. 22. Eligibility Requirements for the Procurement of Goods and Infrastructure The eligibility requirements or statements shall be submitted to the BAC in the form prescribed in Section 23. Any modification to the bidding documents shall be identified as an amendment. 22. The minutes of the pre-bid conference shall be recorded and made available to all participants not later than three (3) calendar days after the pre-bid conference. attendance of the bidders shall not be mandatory. 22.3.1.5.5.6 of this IRR-A and in the Instructions to Bidders. if available. and shall be opened 53 . 22. together with the technical and financial envelopes. the technical and financial components of the contract to be bid. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin. Projects 23. 22. However. 9184 22.Implementing Rules and Regulations of Republic Act No. in a sealed eligibility envelope duly marked as such: Provided. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the website of the procuring entity concerned. That the minimum requirements provided for in this IRR-A shall be complied with.4. and. to be made available to all those who have properly secured the bidding documents from the procuring entity. The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids.2. RULE VIII – RECEIPT AND OPENING OF BIDS Section 23. duly signed by the BAC chairman. Any statement made at the pre-bid conference shall not modify the terms of the bidding documents. the eligibility requirements. The eligibility envelopes of prospective bidders for the procurement of goods shall be submitted. It shall be the responsibility of all those who have properly secured the bidding documents to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC. unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/Bid Bulletin. Supplemental/Bid Bulletins Requests for clarification(s) on any part of the bidding documents or for an interpretation must be in writing and submitted to the BAC of the procuring entity concerned at least ten (10) calendar days before the deadline set for the submission and receipt of bids.

That the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. hold and/or open the bids of ineligible prospective bidders: Provided. 54 Ibid. failure to submit a requirement. dated 04 May 2007. the BAC shall hold the eligibility documents of the said ineligible prospective bidder until such time that the motion for reconsideration has been resolved.” If a prospective bidder submits the specific eligibility document required. 23. 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 23. On the other hand. and the grounds for its ineligibility.Implementing Rules and Regulations of Republic Act No.” In either case. Notwithstanding the eligibility of a prospective bidder.2. The BAC may request a prospective bidder to clarify its eligibility documents. 9184 on the date of the bid opening to determine eligibility of each of the prospective bidders. The BAC shall inform an eligible prospective bidder that it has been found eligible to participate in the bidding. published in the Official Gazette on 30 July 2007. or an incomplete or patently insufficient submission. using a non-discretionary “pass/fail” criteria. upon verbal notification. and shall be determined as either “eligible” or “ineligible.3. however. however. Those found ineligible have three (3) calendar days12 upon receipt of13 written notice or.4. 12 13 As amended by GPPB Resolution 005-2007. The eligibility envelopes of prospective bidders for the procurement of infrastructure projects shall be submitted on or before the deadline specified in the Invitation to Apply for Eligibility and to Bid. . it shall be considered eligible to participate in the bidding.” If a prospective bidder is rated “failed” in any of the eligibility requirements. and shall be opened before the dates of the pre-bid conference and bid opening to determine eligibility of prospective bidders. That if an ineligible prospective bidder signifies his intent to file a motion for reconsideration. In this regard. the BAC shall hold the bid of the said ineligible prospective bidder unopened and duly sealed until such time that the motion for reconsideration has been resolved. Furthermore. it shall be considered ineligible to participate in the bidding. who shall then be allowed to acquire or purchase the relevant bidding documents from the procuring entity. and the BAC shall mark the set of eligibility documents of the prospective bidder concerned as “eligible. it shall be rated “passed” for that particular requirement. if present at the time of opening of eligibility requirements. for procurement of goods. If a prospective bidder is rated “passed” for all the eligibility requirements. within which to file a request for a reconsideration with the BAC: Provided. the markings shall be countersigned by the BAC chairperson or duly designated authority. and the BAC shall mark the set of eligibility documents of the prospective bidder concerned as “ineligible. shall be considered “failed” for the particular eligibility requirement concerned. and subject to the provisions of Section 21. The BAC shall not be allowed to receive. the BAC shall determine if each prospective bidder is eligible to participate in the bidding by examining the completeness of each prospective bidder’s eligibility requirements or statements against a checklist of requirements. as stated in the Invitation to Apply for Eligibility and to Bid.3 of this IRR-A. 23. if it is deemed necessary. In relation to Section 25 on submission and receipt of bids. the BAC shall inform an ineligible prospective bidder that it has been found ineligible to participate in the bidding.

23. and XXIII of this IRR-A. and. Statement of the prospective bidder that it is not “blacklisted” or barred from bidding by the Government or any of its agencies. may undertake. Should such review uncover any misrepresentation made in the eligibility requirements. 23. subject to the approval of the Secretary of National Defense. and The procurement of supply requirements for the project shall be subject to the provisions of the Act and this IRR-A. Eligibility Check for the Procurement of Goods and Infrastructure Projects The determination of eligibility shall be based on the submission of the following documents to the BAC. statements or documents.11 of this IRR-A: 1. infrastructure projects14 funded out of the Department of National Defense (DND) appropriations and the proceeds of the disposition of military camps/stations under Republic Act No.5.5. once released in accordance b) c) d) 14 Refer to Appendix H for Guidelines on Implementation of Infrastructure Projects Undertaken By AFP Corps of Engineers. whichever may be appropriate under existing laws of the Philippines. Class “A” Documents - Legal Documents a) Department of Trade and Industry (DTI) business name registration or SEC registration certificate.Implementing Rules and Regulations of Republic Act No. Provided. 55 . utilizing the forms prepared by the BAC and using the criteria stated in Section 23. in accordance with Rules XXI. XXII.6. To further enhance the capability.5. experience and professionalism of the Armed Forces of the Philippines (AFP) Corps of Engineers. by administration. offices. or any changes in the situation of the prospective bidder which will affect the capability of the bidder to undertake the project so that it fails the preset eligibility criteria. and in the interest of economy and efficiency. Valid and current Mayor’s permit/municipal license. or that there has been a change in the prospective bidder’s capability to undertake the project from the time it submitted its eligibility requirements. That: The civilian labor component for the project shall not be more than sixty percent (60%). however. 23.1. Taxpayer’s Identification Number. 7227 which are intended for the replication of AFP facilities affected by such disposition. including non-inclusion in the Consolidated Blacklisting Report issued by the GPPB. 9184 misrepresentation has been made by the said prospective bidder. 23. the procuring entity shall consider the said prospective bidder as ineligible and shall disqualify it from submitting a bid or from obtaining an award or contract. as far as practicable. shall be sourced from the project locality.2. corporations or LGUs. the AFP.

date of completion or estimated completion time. dated 16 December 2006. The statement shall state for each contract whether said contract is: g.Implementing Rules and Regulations of Republic Act No. contractor’s role (whether sole contractor. total contract value at award. e) f) Other appropriate licenses as may be required by the procuring entity concerned. procuring entities are now mandated to require the submission of Tax Returns and Tax Clearance (for purposes of E. if applicable. date of the contract. if applicable. 398) pursuant to Executive Order No.O. date of award of the contract. 56 . Completed or Awarded but not yet started: within the relevant period. if completed. supplier or distributor. percentages of planned and actual accomplishments. and 15 Per GPPB Circular 02-2005. date of delivery. Series of 2005. subcontractor. contract duration. 9184 with the guidelines to be issued by the GPPB as provided in Section 69.16 Technical Documents g) Statement of the prospective bidder of all its ongoing and completed government and private contracts within the relevant period. For the procurement of infrastructure projects: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) the name of the contract. or partner in a joint venture).15 Certificate of G-EPS Registration. nature of work. The statement shall include. or g.1. For the procurement of goods: (i) (ii) (iii) (iv) (v) (vi) (vii) the name of the contract. amount of contract and value of outstanding contracts. value of outstanding works. published in the Manila Standard on 04 April 2007. if applicable. the following: g. Ongoing. 16 As amended by GPPB Resolution 022-2006. if any. where applicable.1. total contract value at completion. the statement shall be supported by the notices of award and/or notices to proceed issued by the owners. end user’s acceptance. and specification whether prospective bidder is a manufacturer. including contracts awarded but not yet started.2. where applicable. 398.1. for each contract.4 of this IRR-A. kinds of goods sold.1. owner’s name and address.

that may be used for construction contracts.1. Similar or not similar in nature and complexity to the contract to be bid.2. or more frequently when needed. distributor or contractor who maintains a current and updated file of his Class “A” documents will be issued a certification by the BAC to that effect. a manufacturer. and/or has under purchase agreements. g. and The prospective bidder’s computation for its Net Financial Contracting Capacity (NFCC) which shall be in accordance with Section 23. k) To facilitate eligibility checking. project engineers.2. if applicable. a valid Philippine Contractors Accreditation Board (PCAB) license and registration for the type and cost of the contract to be bid. i) Financial Documents j) The prospective bidder’s audited financial statements. When such file is required by the procuring entity. among others. materials engineers and foremen.Implementing Rules and Regulations of Republic Act No. and i. Availability of equipment that he owns. the BAC of a procuring entity may maintain a file of the foregoing Class “A” documents submitted by manufacturers. for the immediately preceding calendar year. showing. distributors and contractors for non-common goods and/or for infrastructure projects. supplier. in an amount not lower than that set by the procuring entity in the Bidding Documents. 57 . which certification may be submitted to the procuring entity concerned in lieu of the foregoing Class “A” documents. stamped “received” by the BIR or its duly accredited and authorized institutions. 9184 (xiii) the statement shall be supported by the Contractor’s Performance Evaluation System (CPES) rating sheets. suppliers. or a cash deposit certificate. provided that ownership of equipment is not a requisite for eligibility. has under lease. supplier. as may be applicable. or a commitment from a licensed bank to extend to it a credit line if awarded the contract to be bid. Availability of the prospective bidder’s key personnel. the prospective bidder’s statement of: i.11 of this IRR-A. the prospective bidder’s total and current assets and liabilities. that may be used for construction contracts. and/or certificates of completion and owner’s acceptance. such as project managers. which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid. A manufacturer. distributor or contractor who wishes to participate in a public bidding for non-common goods and/or infrastructure projects should maintain this file current and updated at least once a year. h) In the case of procurement of infrastructure projects. In the case of procurement of infrastructure projects.

suppliers and/or distributors shall be eligible to participate in the bidding for the supply of goods: a) b) Duly licensed Filipino citizens/sole proprietorships.11.1.18 The prospective bidder or its duly authorized representative shall certify under oath that each of the documents submitted in satisfaction of the eligibility requirements is an authentic and original copy. distributors and contractors. the eligibility requirements for items (a). 58 .10. Eligibility Criteria 23. and that all statements and information provided therein are true and correct. published in the Philippine Star on 09 September 2006. That said prospective bidder shall submit the certification required in the immediately preceding subsection to the BAC at least seven (7) calendar days before the deadline for the submission and opening of the eligibility envelopes. 23. 19 As amended by GPPB Resolution 014-2006.19 23. (d). A prospective bidder may be allowed to submit his eligibility requirements electronically in accordance with Section 8. (c). Each member of the joint venture shall submit the required eligibility documents. 23. dated 27 June 2005. 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. complete. a) Class “B” Documents – Valid joint venture agreement. 9184 2. published in the Official Gazette on 29 August 2005.9.8. The following manufacturers.11. In the case of foreign manufacturers. Contractors. distributor or contractor concerned. supplier. 18 Refer to Appendix J for the Guidelines in the Determination of Eligibility of Foreign Suppliers. or a true and faithful reproduction or copy of the original.Implementing Rules and Regulations of Republic Act No. (b). For the procurement of goods: 1. however. and (j) under Class “A” Documents may be substituted by the appropriate equivalent documents issued by the country of the foreign manufacturer. (e).17 and Letter authorizing the BAC or its duly authorized representative/s to verify any or all of the documents submitted for the eligibility check. and Consultants to Participate in Government Procurement Projects. suppliers. which documents must be duly acknowledged or authenticated by the Philippine Consulate therein. in case of a joint venture.7.5 of this IRR-A: Provided. 17 As amended by Memorandum Order No. b) 23. The entire process of eligibility check for the procurement of infrastructure projects shall not exceed three (3) calendar days. 23. dated 20 July 2006. 176.

d) e) However. adjusted to current prices using the wholesale consumer price index. and whose value. or Cooperatives duly registered with the Cooperatives Development Authority (CDA). as provided in this Section.e. The procuring 59 . however. as certified by the head of the procuring entity. That Filipino ownership or interest of the joint venture concerned shall be at least sixty percent (60%). the said procuring entity may invite foreign suppliers. the similar contracts mentioned under 2(a) and 2(b) above must have been completed within the period specified in the Invitation to Apply for Eligibility and to Bid. or (b) imposing the same will likely result to a monopoly that will defeat the purpose of public bidding. The largest of these similar contracts must be equivalent to at least twenty-five percent (25%) of the ABC of the project to be bid. and of which at least sixty percent (60%) of the outstanding capital stock belongs to citizens of the Philippines. Manufacturers. must be at least fifty percent (50%) of the approved budget for the contract to be bid. or when there is a need to prevent situations that defeat competition or restrain trade. 2. suppliers and/or distributors that intend to be jointly and severally responsible or liable for a particular contract: Provided. suppliers and/or distributors forming themselves into a joint venture. and The business/company of the prospective bidder willing to participate in the bidding has been in existence for at least three (3) consecutive years prior to the advertisement and/or posting of the IAEB. when the goods sought to be procured are not available from local sources. 9184 c) Corporations duly organized under the laws of the Philippines. The GPPB shall promulgate the necessary guidelines for this provision. a group of two (2) or more manufacturers. (a) when failure of bidding has resulted because no single bidder has complied with the said requirement. manufacturers and/or distributors to participate in the procurement of the said goods. The prospective bidder must have an experience of having completed within the period specified in the IAEB concerned a single contract that is similar to the contract to be bid. the procuring entity.. However. i. at the prescribed minimum specifications of the appropriate Government authority and/or ABC of the procuring entity. b) c) For this purpose. in lieu of the above.Implementing Rules and Regulations of Republic Act No. may instead require the following: a) The prospective bidder should have completed at least three similar contracts and the aggregate contract amounts should be equivalent to at least fifty percent (50%) of the ABC of the project to be bid.

a group of two (2) or more persons/entities that intend to be jointly and severally responsible or liable for a particular contract: Provided. 60 . Persons/entities forming themselves into a joint venture. 20 3. i. including awarded contracts yet to be started. and of which at least seventy-five percent (75%) of the outstanding capital stock belongs to citizens of the Philippines. 630 (LOI 630). or a cash deposit certificate. dated 20 January 2006. The prospective bidder must present a commitment from a licensed bank to extend to it a credit line if awarded the contract to be bid.. 15 for a contract duration of more than one year up to two years.2. That. Partnerships duly organized under the laws of the Philippines and of which at least seventy-five percent (75%) of the interest belongs to citizens of the Philippines. and 20 for a contract duration of more than two years. or must have a NFCC at least equal to the approved budget for the contract to be bid. however. in an amount not lower than that set by the procuring entity in the Bidding Documents. The following persons/entities shall be allowed to participate in the bidding for infrastructure projects: a) b) Duly licensed Filipino citizens/sole proprietorships. Corporations duly organized under the laws of the Philippines. in accordance with Letter of Instructions No.11. 23.Implementing Rules and Regulations of Republic Act No. For the procurement of infrastructure projects: 1. and compliance to the requirement on a largest single similar contract is impracticable. further. which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid. the prospective bidder will only have to comply with requirement (c) above. further. Provided. That joint ventures in which Filipino ownership or interest is less than seventy-five percent (75%) may be eligible where the c) d) 20 As amended by GPPB Resolution 007-2006. that when the item/good to be procured is novel or its procurement is otherwise unprecedented or is unusual. 9184 entity can clarify in the bidding documents the similar projects that can be considered in the bidding. calculated as follows: NFCC = [(Current assets minus current liabilities) (K)] minus the value of all outstanding projects under ongoing contracts. Filipino ownership or interest of the joint venture concerned shall be at least seventy-five percent (75%): Provided. published in the Philippine Star on 09 September 2006.e. Where: K = 10 for a contract duration of one year or less.

3. In accordance with the principles of the Act on the conduct of an open competitive bidding. 4. a contract shall be considered “similar” to the contract to be bid if it has the same major categories of work. corporation. 5. or must have a NFCC at least equal to the approved budget for the contract to be bid. calculated as follows: 21 As amended by Memorandum Order No. For this purpose. published in the Official Gazette on 03 October 2005. 171-A. and similar to the contract to be bid. adjusted to current prices using the National Statistics Office consumer price indices available at the G-EPS website. the classification of contractors vis-à-vis the ARCC shall be based on the Guidelines as prescribed by the Philippine Contractors Accreditation Board (PCAB). however. Filipino ownership or interest shall not be less than twenty-five percent (25%). which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid. or e) Cooperatives duly registered with CDA. the term “contractor” refers to any person. partnership. 61 . the persons/entities enumerated in item (1) of this Subsection may participate in a public bidding: Provided. The prospective bidder must present a commitment from a licensed bank to extend to it a credit line if awarded the contract to be bid. The value of the prospective bidder’s largest single completed contract. however. 171. That he may only engage in the constructing business or individually act in the capacity of a contractor for the project involved if he has been issued a license by the PCAB to so engage or act.Implementing Rules and Regulations of Republic Act No. must be at least fifty percent (50%) of the approved budget for the contract to be bid: Provided. finally. or a cash deposit certificate. such as bridges and fly-overs. he may be allowed to bid if the cost of such contract is not more than fifty percent (50%) of the Allowable Ranges Contract Cost (ARCC) of his registration. Filipino ownership or interest shall be based on the contributions of each of the members of the joint venture as specified in their Joint Venture Agreement (JVA). That in the case of a contractor under Small A and Small B categories without similar experience on the contract to be bid. 9184 structures to be built require the application of techniques and/or technologies which are not adequately possessed by a person/entity meeting the seventy-five percent (75%) Filipino ownership requirement: Provided. amending Memorandum Order No. in an amount not lower than that set by the procuring entity in the Bidding Documents. 2. dated 01 August 2005. For this purpose. For purposes of this IRR-A. The CPES rating and/or certificate of completion and owner’s acceptance of the contract must be satisfactory. That in the latter case. or other juridical entity duly licensed by the PCAB.21 For the procurement of infrastructure projects.

When the types and fields of consulting services in which the sole proprietorship wishes to engage involve professions regulated by laws of the Philippines. sole proprietorship. b. The owner of the sole proprietorship must be a citizen of the Philippines.2.1. A Filipino Consultant. Section 24. The sole proprietorship firm must be registered with and authorized by the Bureau of Domestic Trade. the owner and key staff of the sole proprietorship must be registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions. and a. Only an eligible bidder as defined and determined in accordance with this IRR-A may participate in the bidding.1. Where: K = 10 for a contract duration of one year or less.3.” subject to the requirements provided in this IRR-A for eligibility check and postqualification. Eligibility Requirements and Short Listing for Consulting Services 24. A consultant may either be: 1. partnership. 15 for a contract duration of more than one year up to two years. he must be a registered professional authorized by the appropriate regulatory body to practice those professions and allied professions. 23.2. b) Sole Proprietorship – b.1. including awarded contracts yet to be started. training and relevant experience to render any or all of the types and fields of consulting services as defined in this IRR-A. and b.3. corporation or a joint venture satisfying the definition of a consultant under this IRR-A and the following requirements: a) Individual – a. shall be considered as a “Consultant. 9184 NFCC = [(Current assets minus current liabilities) multiplied by (K)] minus the value of all outstanding works or projects under ongoing contracts. c) Partnership – 62 . and 20 for a contract duration of more than two years. A Filipino consultant may be an individual. qualified by appropriate education. He must be a citizen of the Philippines.11. When the types and fields of consulting services in which he wishes to engage involve professions regulated by the laws of the Philippines. Definition A natural or juridical person.Implementing Rules and Regulations of Republic Act No.

At least sixty percent (60%) of the outstanding capital stock must be owned by citizens of the Philippines. however. and c. The joint venture shall be jointly and severally responsible for the obligations and the civil liabilities arising from the consulting services: Provided. all the stockholders and directors of the corporation and those who will actually perform the services shall be Filipino citizens and registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions: Provided. further. 9184 c. d) Corporation – d. as well as all those who will actually perform the services shall be Filipino citizens and registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions: Provided. and d. all members of the joint venture. When the types and fields of consulting services in which the corporation wishes to engage involve the practice of professions regulated by law. That Filipino ownership or interest thereof shall be at least sixty percent (60%): Provided.1. Filipino ownership or interest shall be based on the contributions of each of the members of the joint venture as specified in their JVA. all the partners of the professional partnership firm and those who will actually perform the services shall be Filipino citizens and registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions. That the relevant laws allow corporations to engage in the said services. and all the partners or stockholders and directors of each member.Implementing Rules and Regulations of Republic Act No. c. in case of corporations. however. 63 . finally.3. d. At least sixty percent (60%) of the partnership’s interest must be owned by citizens of the Philippines. as the case may be. For this purpose. That when the types and fields of consulting services in which the joint venture wishes to engage involve the practice of professions regulated by law. The corporation must be registered with and authorized by the SEC and whose primary purpose is to engage in the particular type of consulting service(s) involved. the relevant laws allow corporations to engage in the said services. When the types and fields of consulting services in which the partnership firm wishes to engage involve professions regulated by laws of the Philippines. That.2.1. The partnership firm must be registered with and authorized by the SEC to engage in the particular type of consulting service(s).2. e) Joint Venture – Joint ventures among Filipino consultants and among Filipino and foreign consultants may be allowed if such results in better quality of consultancy subject to pertinent laws and the relevant provisions of this IRR-A.3.

24. but not meeting the citizenship. 3. and Other Technical Services or Special Studies. 5. consultants. 6. license or authority required under this provision shall be submitted by the said consultant prior to award of contract. shall be selected only if they agree to limit their role to that of consultants and will disqualify themselves and 64 . sole proprietorship. 24. corporation or joint venture satisfying the definition of a consultant under this IRR-A. Types of Consulting Services The services to be provided by consultants can be divided into six (6) broad categories as follows: 1. integrity and objectivity. A foreign consultant may be an individual.4. the foreign consultant must satisfy the following minimum requirements: a) b) The foreign consultant must be registered with the SEC and/or any agency authorized by the laws of the Philippines. 24.2. Design. the foreign consultant must be authorized by the appropriate Philippine Government professional regulatory body to engage in the practice of those professions and allied professions: Provided. ownership. The Need for Consultants The services of consultants may be engaged by any procuring entity for government projects or related activities of such magnitude and/or scope as would require a level of expertise or attention beyond the optimum in-house capability of the procuring entity concerned and consistent with the Government’s policy not to compete with the private sector. however. partnership. 4. Should a foreign consultant be considered for award. Pre-Investment or Feasibility Studies. 9184 2. Independence of Consultants To ensure the consultant’s professional independence. Construction Supervision. 2. interest and/or registration/authorization requirements for a Filipino consultant under this IRR-A.3. and When the types and fields of consulting services in which the foreign consultant wishes to engage involve the practice of regulated professions.Implementing Rules and Regulations of Republic Act No. A detailed definition and description of these services are provided for in Annex “B” of this IRR-A. Management and Related Services. Advisory and Review Services. A Foreign Consultant. That the limits of such authority shall be strictly observed. any registration. as well as key staff working for the consulting entity. who may be directly or indirectly associated with non-consulting firms that may have an interest in or bias towards the project concerned. To qualify for hiring for consulting services.

where applicable.Implementing Rules and Regulations of Republic Act No. The GPPB shall be the appropriate government body that shall recognize the consultants’ umbrella organization.2. 9184 their affiliates for bidding for products and services of the same government project.5.2. as determined by the head of the procuring entity. 65 . foreign consultants may be hired. all pertinent laws and regulations of the Philippines shall be followed.1.3. 24.5. 24. 24. however. Technology and knowledge transfer to the procuring entity shall be required in the provision of consulting services. Organization of Consultants The umbrella organization of consultants recognized by the Government shall be composed of the various organizations of consultants that may be engaged by the Government under this IRR-A and shall accredit its members on the types of services and fields of professions where the members are technically and financially qualified to offer their services. Such qualification statements. The umbrella organization may submit its files of accredited consultants to the BAC of the procuring entity in accordance with the form prescribed by the BAC which can serve as registration of the consultants under the next succeeding Subsection: Provided. 24.6. Hiring of Consultants Consultants shall be hired on the basis of their proven expertise. however. together with the list of accredited consultants prepared in accordance with the immediately preceding section.5.6. 24. The Government may consult and deal with this umbrella organization on matters relating to the industry. cost may be included as a factor in the selection of consultants. 24. That each such accredited consultant shall comply with the eligibility requirements provided in this IRRA. In the hiring of foreign consultants. That in the event Filipino consultants do not have the sufficient expertise and capability to render the services required under the project. 24. Filipino consultants shall be hired whenever the services required for the project are within the expertise and capability of Filipino consultants: Provided.5. It shall likewise police its members for the development of the industry. The umbrella organization shall prepare and certify a list of fields and expertise in such fields available with the names of the accredited local consultants which shall be updated annually or as often as necessary and disseminate such list to concerned agencies of the Government. Under certain conditions provided herein. shall guide the BAC in determining the fields where Filipino consultants are already qualified and capable and where foreign consultants may not be required.5. In order to manifest trust and confidence in and promote the development of Filipino consultancy. experience and capability.4. 24.1.6.

contract duration. if any. g. Class “A” Documents – 24. offices. if applicable. 9184 24. once released in accordance with the guidelines to be issued by the GPPB as provided in Section 69.2. 398) pursuant to Executive Order No.O. amount of contract. g. published in the Manila Standard on 04 April 2007. 66 . g. Series of 2005. The types and number of equipment that the consultant owns.5. dated 16 December 2006. g. date of the contract. The statement shall include. Eligibility Check for the Procurement of Consulting Services The determination of eligibility shall be based on the submission of the following documents to the BAC.23 b) c) d) e) f) Technical Documents g) Statement of the prospective bidder of all its ongoing and completed government and private contracts within the period specified in the Invitation to Apply for Eligibility and to Bid including contracts awarded but not yet started. if applicable. procuring entities are mandated to require the submission of Tax Returns and Tax Clearance (for purposes of E.6. for each contract. h) the name and location of the contract/project. the following: g. utilizing the forms prepared by the BAC: 1. in the case of a completed contract.4. Statement of the prospective bidder that it is not “blacklisted” or barred from bidding by the Government or any of its agencies. type of consulting service. Other appropriate licenses as may be required by the procuring entity concerned.Implementing Rules and Regulations of Republic Act No. including non-inclusion in the Consolidated Blacklisting Report issued by the GPPB.22 Certificate of G-EPS Registration. g. if any.1. and/or has under purchase agreements.7. Legal Documents a) DTI business name registration or SEC registration certificate. 22 Per GPPB Circular 02-2005. 398. has under lease.3. Taxpayer’s Identification Number. corporations or LGUs. Valid and current Mayor’s permit/municipal license.4 of this IRR-A. whichever may be appropriate under existing laws of the Philippines. 23 As amended by GPPB Resolution 022-2006.1. and certificate of satisfactory completion issued by the client.7.

the consultant’s total and current assets and liabilities. and h. for the immediately preceding calendar year. 2. Financial Document k) The consultant’s audited financial statements. among others. Each member of the joint venture shall submit the required eligibility documents. Of the kinds and number of its ownership and key staff.Implementing Rules and Regulations of Republic Act No. when the types and fields of consulting services in which the entity wishes to engage involve professions regulated by the laws of the Philippines. the consultant’s statement: j. When the types and fields of consulting services in which he wishes to engage involve professions regulated by the laws of the Philippines. as the case may be.1. the BAC of a procuring entity may maintain a file of the foregoing Class “A” documents submitted by consultants. in accordance with the provisions of this IRR-A. as well as their respective curriculum vitae. On the prospective bidder’s technical competence. he is a registered professional authorized by the appropriate regulatory body to practice those professions and allied professions. 67 . the owner and key staff. showing.2. and all the partners of the professional partnership firm. and those who will actually perform the service. as the case may be.1. published in the Official Gazette on 29 August 2005. a) Class “B” Documents Valid joint venture agreement. or more frequently when needed. To facilitate eligibility checking. in case of a joint venture. A consultant who maintains a current and updated file of his Class “A” documents will be issued a certification by the BAC to that effect.2.24 and 24 As amended by Memorandum Order No. 176. partners or principal officers. a consultant who wishes to participate in a public bidding for consulting services should maintain this file current and updated at least once a year. i. are registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions. experience and staff capabilities. When such file is required by the procuring entity. stamped “received” by the BIR or its duly accredited and authorized institutions. Of his citizenship. which certification may be submitted to the procuring entity concerned in lieu of the foregoing Class “A” documents. 9184 i) If the consultant is a juridical entity.3. the consultant’s statement: i. j) If the consultant is an individual. dated 27 June 2005. That. and j.

8. the determination of eligibility of consultants shall be based on the submission of the above documents to the BAC. 9184 b) Letter authorizing the head of the procuring entity or his duly authorized representative/s to verify any or all of the documents submitted for the eligibility check. A prospective bidder may be allowed to submit his eligibility requirements electronically in accordance with Section 8. or an incomplete or patently insufficient submission. The eligibility envelopes of prospective bidders for procurement of consulting services shall be submitted on or before the deadline specified in the Invitation to Apply for Eligibility and to Bid. however. shall be considered “failed” for the particular eligibility requirement concerned. 24.9. If a consultant is rated “passed” for all the eligibility requirements.” If a consultant submits the specific eligibility document required. That said prospective bidder shall submit the certification required in the immediately preceding subsection to the BAC at least seven (7) calendar days before the deadline for the submission and opening of the eligibility envelopes. (c).12. and the BAC shall mark the set of eligibility documents of the consultant concerned as “eligible. (d).11.5 of this IRR-A: Provided. In the case of foreign consultants. the eligibility requirements for items (a). or a true and faithful reproduction or copy of the original. as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders. complete. and that all statements and information provided therein are true and correct.10. and shall be determined as either “eligible” or “ineligible. he shall be considered eligible to participate in a bidding. (e) and (k) under Class “A” Documents may be substituted by the appropriate equivalent documents issued by the foreign consultant’s country. In this regard. and Consultants to Participate in Government Procurement Projects. which documents must be duly acknowledged or authenticated by the Philippine Consulate therein. 68 . and shall be opened before the dates of the prebid conference and bid opening to determine eligibility of prospective bidders. Subject to the short listing of consultants as provided in this IRR-A. 24. utilizing the forms prepared by the BAC. failure to submit a requirement. 24.25 The consultant or his duly authorized representative shall certify under oath that each of the documents submitted in satisfaction of the eligibility requirements is an authentic and original copy. who shall then be allowed to acquire or purchase the relevant bidding documents from the procuring entity. (b). 24. Contractors. using a non-discretionary “pass/fail” criteria. The BAC shall determine if each consultant is eligible to participate in a bidding by examining each consultant’s eligibility requirements or statements against a checklist of requirements. Subject to the short listing of consultants as provided in this IRR-A. only an eligible consultant as defined and determined in accordance with this IRR-A may participate in the bidding and subsequently be awarded the contract being bid out if his bid is found to be responsive in accordance with this IRR-A. he shall be rated “passed” for that particular requirement.Implementing Rules and Regulations of Republic Act No.” If a consultant is rated “failed” in any of the eligibility 25 Refer to Appendix J for the Guidelines in the Determination of Eligibility of Foreign Suppliers. 24.

69 . and who have submitted their LOI. and the BAC shall mark the set of eligibility documents of the consultant concerned as “ineligible. The BAC may request a prospective bidder to clarify its eligibility documents. XXII.15. the BAC shall hold the eligibility documents of the said ineligible consultant until such time that the motion for reconsideration has been resolved. or any changes in the situation of the consultant which will affect the capability of the consultant to undertake the project so that the consultant fails the preset eligibility criteria. statements or documents. 24. Short Listing of Prospective Bidders 24.15. if it is deemed necessary. and the grounds for its ineligibility.14. the procuring entity concerned reserves the right to review his qualifications at any stage of the procurement process if it has reasonable grounds to believe that a misrepresentation has been made by the said consultant. based on the Invitation to Apply for Eligibility and to Bid. the concerned procuring entity shall only consider for short listing those consultants whose submitted contracts. subject to the short listing of consultants as provided in this IRR-A.Implementing Rules and Regulations of Republic Act No. 26 As amended by GPPB Resolution 005-2007.” In either case. however. the BAC shall inform an ineligible consultant that it has been found ineligible to participate in the bidding. as stated in the eligibility documents submitted for registration. the procuring entity shall consider the said consultant as ineligible and shall disqualify him from submitting a bid or from obtaining an award or contract. With respect to a particular contract for consulting services to be bid.26 24. the markings shall be countersigned by the BAC chairperson or duly designated authority. or that there has been a change in the consultant’s capability to undertake the project from the time he submitted his eligibility requirements. within which to file a request for a reconsideration with the BAC: Provided. which shall be determined in the pre-procurement conference. in accordance with Rules XXI.13. both in accordance with the provisions of this IRR-A. Notwithstanding the eligibility of a consultant and/or inclusion in the short list of consultants. 9184 requirements. Should such review uncover any misrepresentation made in the eligibility requirements. 24. The BAC shall inform an eligible consultant that he has been found eligible. Those found ineligible have three (3) calendar days upon receipt of written notice or. The BAC shall not be allowed to receive bids of ineligible consultants. dated 04 May 2007. and XXIII of this IRR-A. he shall be considered ineligible to participate in a bidding. the BAC shall consider the same. and/or pass the minimum score required in the short listing. That the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. if present at the time of bid opening. published in the Official Gazette on 30 July 2007. upon verbal notification. On the other hand.15. 24. shall consist of three (3) to seven (7) consultants. pass the eligibility check. The BAC shall draw up the short list of consultants from those who have been determined as eligible. with five (5) as the preferable number. are similar in nature and complexity to the contract to be bid. If an ineligible consultant signifies his intent to file a motion for reconsideration.1. Should less than the required number apply for eligibility and short listing.2. The number of short list of consultants.

and (iii) in two (2) separate sealed bid envelopes. The Bid Security as to form. dated 27 June 2005.27 Section 25. Submission and Receipt of Bids 25. 9184 24. The BAC shall specify in the Invitation to Apply for Eligibility and to Bid the set of criteria and rating system for short listing of consultants to be used for the particular contract to be bid. as specified in the bidding documents.Implementing Rules and Regulations of Republic Act No. including its annexes. dated 20 July 2006.28 The first envelope (Technical Proposal) shall contain the following technical information/documents. 2. 176. and Current workload relative to capacity.15.15. The bidder shall mark the two envelopes: “Do not open before (date and time of opening of bids). 27 25. 28 As amended by Memorandum Order No.4. Eligible bidders shall submit their bids through their authorized managing officer or their duly authorized representative (i) in the prescribed Bid Form. with the name of the contract to be bid and the name of the bidder in capital letters. As amended by GPPB Resolution 014-2006. 4. For the procurement of goods: 1. considering both the overall experiences of the firm and the individual experiences of the principal and key staff including the times when employed by other consultants. which shall consider the following. 25. the first containing the technical component of the bid. 70 . Eligibility requirements and bids submitted after the deadline shall not be accepted by the BAC. Authority of the signatory. b) c) 24.2.” Both envelopes shall then be sealed in an outer envelope which shall be addressed to the BAC and shall be marked as specified in the Instructions to Bidders. (ii) on or before the specified deadline. among others: a) Applicable experience of the consultant and associates in case of joint ventures. at the least: A. Manpower requirements. Production/delivery schedule. if applicable. 5. Qualification of personnel who may be assigned to the job vis-à-vis extent and complexity of the undertaking. After-sales service/parts. 3. published in the Philippine Star on 09 September 2006. and the second containing the financial component of the bid. addressed to the BAC of the agency concerned.1. The entire process of eligibility check and short listing shall not exceed twenty (20) calendar days. published in the Official Gazette on 29 August 2005. The BAC shall recommend the short list of consultants to the head of the procuring entity for consideration and approval.3.3. amount and validity period.

9184 6.. Certificate from the bidder under oath of its compliance with existing labor laws and standards. in the case of procurement of services. Bid Security as to form. 6. 7. the said previously submitted document shall suffice. 11. 13. 3019. Technical specifications. and Foremen). 5. which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid: Provided. Commitment from a licensed bank to extend to the bidder a credit line if awarded the contract to be bid. Project Manager. B. 15. which are owned. Certificate from the bidder under oath of its compliance with existing labor laws and standards. Construction methods.Implementing Rules and Regulations of Republic Act No. Construction schedule and S-curve. or a cash deposit certificate. 4.A. Authority of the signing official. List of contractor’s personnel (viz. with their complete qualification and experience data. Construction safety and health program of the contractor. to be assigned to the contract to be bid. 10. Commitment from a licensed bank to extend to the bidder a credit line if awarded the contract to be bid. 2. or a cash deposit certificate. supported by certification of availability of equipment from the equipment lessor/vendor for the duration of the project . For the procurement of infrastructure projects: 1. however. the said previously submitted document shall suffice. Affidavit of site inspection. 9.7 of the IRR-A. Project Engineers. Equipment utilization schedule.7 of the IRR-A. amount and validity period. and 8.A. 12. in an amount not lower than that set by the procuring entity in the Bidding Documents. 8. and/or under purchase agreements. and Other documents/materials as stated in the Instructions to Bidders. which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid: Provided. Materials Engineers. 9. 71 . 14. 3019. 3. and A sworn statement attesting compliance to the responsibilities of a Prospective or Eligible Bidder as provided in Section 17. Manpower schedule. 7. That if the bidder previously submitted this document as an eligibility requirement. List of contractor’s equipment units. 11. That if the bidder previously submitted this document as an eligibility requirement. Ibid. leased. 10.29 A sworn affidavit of compliance with the Disclosure Provision under Section 47 of the Act in relation to other provisions of R. 29 30 Ibid. in an amount not lower than that set by the procuring entity in the Bidding Documents. however. A sworn statement attesting compliance to the responsibilities of a Prospective or Eligible Bidder as provided in Section 17.30 A sworn affidavit of compliance with the Disclosure Provision under Section 47 of the Act in relation to other provisions of R. Organizational chart for the contract to be bid.

Organizational chart for the contract to be bid. Approach.7 of the IRR-A. Section 26.31 A sworn affidavit of compliance with the Disclosure Provision under Section 47 of the Act in relation to other provisions of R. 5. and Cash flow by the quarter and payments schedule. A bidder may modify its bid. 2. Bid prices in the Bill of Quantities in the prescribed Bid Form. if applicable. A sworn statement attesting compliance to the responsibilities of a Prospective or Eligible Bidder as provided in Section 17. List of key personnel to be assigned to the contract to be bid. 4. 8. The second envelope (Financial Proposal) shall contain the following financial information/documents. amount and validity period. For the procurement of goods: 1. 9. 7. 10. For the procurement of infrastructure projects: 1. the information and/or documents to be provided by the bidder shall be specified in the bidding documents. linked to its original bid and marked as a 31 Ibid. Authority of the signatory. and schedule: Provided. 3. 3. submission of architectural plans and designs shall not be required during the consultant’s selection process. and Other information and/or documents specified in the bidding documents. properly identified. For the procurement of consulting services.Implementing Rules and Regulations of Republic Act No. it shall not be allowed to retrieve its original bid. at the least: A. 6. Modification and Withdrawal of Bids 26. Documents/materials to comply with other non-discretionary criteria and requirements as stated in the Instructions to Bidders. provided that this is done before the deadline for the submission and receipt of bids. and The recurring and the maintenance costs. with their complete qualification and experience data.1. Certificate from the bidder under oath of its compliance with existing labor laws and standards. That for architectural design.4. B. 3019. labor rates and equipment rentals used in coming up with the bid. 72 . 9184 16. C. 2. Where a bidder modifies its bid. however. 2. Detailed estimates including a summary sheet indicating the unit prices of construction materials.A. The Bid Security as to form. For the procurement of consulting services: 1. C. 25. List of completed and on-going projects. Bid prices in the Bill of Quantities in the prescribed Bid Form. but shall only be allowed to send another bid equally sealed. work plan.

withdraw its bid before the deadline for the receipt of bids. through a letter. All bids shall be accompanied by a Bid Security. Cash. enter into contract with the procuring entity and furnish the performance security provided for in Section 39 of the Act and this IRR-A. and not lower than. A bidder may. 27. b) c) d) e) The required amount of the above forms of security shall be in accordance with the following schedule: Form of Security 1. Surety bond callable upon demand issued by a reputable surety or insurance company. Section 27. Irrevocable letter of credit issued by a reputable commercial bank or in the case of an irrevocable letter of credit issued by a foreign bank. 9184 “modification. bonded by a foreign bank. Failure to enclose the required Bid Security in the form and amount prescribed herein shall automatically disqualify the bid concerned. A bidder may also express its intention not to participate in the bidding through a letter which should reach and be stamped received by the BAC before the deadline for the receipt of bids. cashier’s check. A bidder that withdraws its bid shall not be permitted to submit another bid. 26.Implementing Rules and Regulations of Republic Act No. certified check. and stamped “received” by the BAC.” thereof. within ten (10) calendar days. payable to the procuring entity concerned as a guarantee that the successful bidder shall.1. as may be required by the head of the procuring entity concerned. directly or indirectly. in any of the following forms: a) Cash. Bid modifications received after the applicable deadline shall not be considered and shall be returned to the bidder unopened. from receipt of the Notice of Award. or Foreign government guarantee as provided in an executive. The Bid Security shall be in an amount at least equal to. for the same contract.2. Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions as prescribed in this IRR-A. or less as indicated in the Instructions to Bidders. Any combination thereof. bilateral or multilateral agreement. bank draft/guarantee confirmed by a reputable local bank or in the case of a foreign bidder. cashier’s check/manager’s check. bank draft or irrevocable letter of credit 73 Minimum Amount in % of Approved Budget for the Contract to be Bid One percent (1%) .2. the same shall be confirmed or authenticated by a reputable local bank. manager’s check. as advertised by the concerned procuring entity. a percentage of the approved budget for the contract to be bid. Bid Security 27. certified check.

except to those that (i) failed to comply with any of the requirements to be submitted in the first bid envelope of the bid or (ii) were post-disqualified and submitted a written waiver of its right to file a motion for reconsideration and/or protest. All members of the BAC or their duly authorized representatives who are present during bid opening. 27.Implementing Rules and Regulations of Republic Act No. Bid Securities shall be returned only after the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.3. Bid Opening The BAC shall open the bids at the time. No Bid Securities shall be returned to bidders after the opening of bids and before contract signing. as prescribed in this IRR-A. The minutes of the bid opening shall be made available to the public upon written request and payment of a specified fee to recover cost of materials. and shall be indicated in the bidding documents. Foreign government guarantee 27. date and place specified in the Invitation to Apply for Eligibility and to Bid and the bidding documents. Surety bond 4. based on the above schedule.4. dated 06 December 2006. as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to 32 As amended by GPPB Resolution 021-2006. but in no case later than the expiration of the Bid Security validity period indicated in the Instructions to Bidders. using a non-discretionary “pass/fail” criteria. For this purpose. but in no case shall exceed one hundred twenty (120) calendar days from the date of the opening of bids. Bid Validity Bids and Bid Securities shall be valid for a reasonable period as determined by the head of the procuring entity concerned. as provided in this IRR-A.32 Section 28. 74 . RULE IX – BID EVALUATION Section 30.1. shall be stated in Philippine Pesos in the bidding documents. The bidders or their duly authorized representatives may attend the opening of bids. Bank guarantee 3. shall initial every page of the original copies of all bids received and opened. 9184 2. Without prejudice to the provisions the Act and this IRR-A on the forfeiture of Bid Securities. The BAC shall open the first bid envelopes (Technical Proposals) of eligible bidders in public to determine each bidder’s compliance with the documents required to be submitted for the first component of the bid. published in the Official Gazette on 09 April 2007. Section 29. the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present in the first bid envelope. has signed the contract and furnished the Performance Security. One and a half percent (1 ½%) Two and a half percent (2 ½%) One hundred percent (100%) The required minimum bid security. as the case may be. Preliminary Examination of Bids 30.

The concerned BAC shall then evaluate the technical merits of the proposals received from eligible bidders vis-à-vis the required performance standards. Under this procedure. or an incomplete or patently insufficient submission. shall be considered “failed” for the particular requirement concerned. 75 . That the request 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. a two (2)-stage bidding procedure may be employed. within which to file a request for a reconsideration with the BAC: Provided. incomplete. or patently insufficient. Immediately after determining compliance with the requirements in the first envelope. if present at the time of bid opening. upon verbal notification.33 For the procurement of goods where. however. That the BAC shall decide on the request for reconsideration within seven (7) calendar days from receipt thereof. 30. A bidder determined as “failed” has three (3) calendar days upon written notice or. If a failed bidder signifies his intent to file a motion for reconsideration. copies of the same shall be issued to all the bidders identified in the first stage who shall 30. dated 20 July 2006. published in the Philippine Star on 09 September 2006. the required technical specifications/requirements of the contract cannot be precisely defined in advance of bidding.3. In this regard. the BAC shall rate the bid concerned as “failed” and immediately return to the bidder concerned its second bid envelope unopened. except as provided under Section 33 of this IRR-A. prospective bidders shall be requested at the first stage to submit their respective Letter of Intent. the BAC shall forthwith open the second bid envelope (Financial Proposals) of each remaining eligible bidder whose first bid envelope was rated “passed.4. Otherwise. and initial technical proposals only (no price tenders). including the technical specification in the form of performance criteria only.Implementing Rules and Regulations of Republic Act No. eligibility requirements if needed. it shall be rated “passed” for that particular requirement. failure to submit a requirement.” 30. and/or if the submitted total bid price exceeds the approved budget for the contract. the BAC shall rate the bid concerned as “failed. due to the nature of the requirements of the project.” The second envelope of each complying bidder shall be opened within the same day. or where the problem of technically unequal bids is likely to occur.” 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. further. the BAC shall hold the second bid envelope of the said failed bidder unopened and duly sealed until such time that the motion for reconsideration has been resolved. Once the final revised technical specifications are completed and duly approved by the concerned BAC. In case one or more of the above required documents in the first envelope of a particular bid is missing. If a bidder submits the required document. A meeting/discussion shall then be held by the BAC with those eligible bidders whose technical tenders meet the minimum required standards stipulated in the bidding documents for purposes of drawing up the final revised technical specifications/requirements of the contract. the procuring entity concerned shall prepare the bidding documents.2. In these cases. the BAC shall rate the said first bid envelope as “passed. in the case of a bidder who fails in the first bid envelopes. 9184 Bidders. In case one or more of the requirements in the second envelope of a particular bid is missing. incomplete or patently insufficient. 33 As amended by GPPB Resolution 014-2006.

32. at a specified deadline. Bid Evaluation for the Procurement of Goods and Infrastructure Projects 32. is higher than the approved budget for the contract under bidding. 32. If after post-qualification the Lowest Calculated Bid is determined to be post-qualified it shall be considered the Lowest Calculated Responsive Bid and the contract shall be awarded to the bidder.3. 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. There shall be no lower limit or floor on the amount of the award. Members of the BAC. Section 32.Implementing Rules and Regulations of Republic Act No.34 34 Ibid. If a bid price. For the procurement of goods and infrastructure projects. as well as its Secretariat and TWG.5. 30. after which time no more bids shall be received. the detailed implementation of the procedure specified in this Section shall be as provided in Section 33 of this IRRA. including its staff and personnel. The entire evaluation process shall be completed in not more than seven (7) calendar days for the procurement of goods and infrastructure projects from the deadline for receipt of proposals. Ceiling for Bid Prices The approved budget for the contract under bidding shall be the upper limit or ceiling for acceptable bid prices. For the procurement of consulting services. the bidder submitting the same shall be automatically disqualified. to establish the correct calculated prices of the bids. Section 31. The bid with the lowest price shall be identified as the Lowest Calculated Bid. the purpose of bid evaluation is to determine the Lowest Calculated Bid. the Lowest Calculated Bid shall be determined in two steps: a) b) The detailed evaluation of the financial component of the bids. 9184 then be required to submit their revised technical tenders. The concerned BAC shall then proceed in accordance with the procedure prescribed in this IRR-A. for infrastructure projects costing fifty (50) million and below. 76 . However. as evaluated and calculated in accordance with this IRR-A.2. and The ranking of the total bid prices as so calculated from the lowest to the highest. For the procurement of goods and infrastructure projects. the entire evaluation process shall be completed in not more than five (5) calendar days from the deadline for receipt of proposals. including their price proposals in two (2) separate sealed envelopes in accordance with this IRR-A. This bid shall be subject to post-qualification in accordance with Rule X of this IRR-A to determine its responsiveness to the eligibility and bid requirements.1. unless otherwise allowed in this IRR-A.

shall be considered non-responsive and. and 77 . date and place of bid opening. The Abstract of Bids shall contain the following: a) b) Name of the contract and its location. 32. automatically disqualified. to identify the Lowest Calculated Bid. Unless the Instructions to Bidders specifically allow partial bids.4. 9184 32. value added tax (VAT). income tax. including said taxes. 32.” using a non-discretionary criteria. (c) unit cost in the detailed estimate and unit cost in the bill of quantities. the latter shall prevail. those that comply with the abovementioned requirements shall be ranked in the ascending order of their total calculated bid prices. in the bidding documents to enable proper comparison of all eligible bids. after the preliminary examination of bids.5. which shall include a consideration of the following: a) The bid must be complete. evaluated and ranked. After all bids have been received. b) 32. the latter shall prevail. the latter shall prevail. In case of discrepancies between: (a) bid prices in figures and in words.4. but not limited to. which exceed the approved budget for the contract shall not be considered.4. For this purpose. In the evaluation of bids. Based on the detailed evaluation of bids. omissions and discounts if allowed. bill of quantities.4. as evaluated and corrected for computational errors. opened. Detailed Evaluation of Bids for the Procurement of Goods and Infrastructure Projects To determine the Lowest Calculated Bid for the procurement of goods and infrastructure projects.4. thus. In this regard. shall be the basis for bid evaluation and comparison. such as. 32. the BAC shall prepare the corresponding Abstract of Bids. where a required item is provided. Total calculated bid prices.Implementing Rules and Regulations of Republic Act No.2. 32. the BAC shall evaluate all bids on an equal footing to ensure fair and competitive bid evaluation. if applicable. examined. and other fiscal levies and duties which shall be itemized in the bid form and reflected in the detailed estimates. Such bids. all bidders shall be required to include the cost of all taxes. All members of the BAC shall sign the Abstract of Bids and attach thereto all the bids with their corresponding Bid Securities and the minutes or proceedings of the bidding. Time.4. but no price is indicated.1. as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders.3. discounts and other modifications. the same shall be considered as non-responsive. Any adjustment shall be calculated in monetary terms to determine the calculated prices. but specifying a “0” (zero) for the said item would mean that it is being offered for free to the Government. discounts and other modifications. the BAC shall immediately conduct a detailed evaluation of all bids rated “passed. where applicable. local taxes. bids not addressing or providing all of the required items in the bidding documents including. as evaluated and corrected for computational errors. (b) total prices and unit prices. and Minor arithmetical corrections to consider computational errors.

the head of the procuring entity shall have the option as to the evaluation procedure to be adopted for consultants. 33. b) 33.1. The consultant evaluation procedure adopted shall be stated in the Invitation to Apply for Eligibility and to Bid and the bidding documents. The bid with the highest rating shall be identified as the Highest Rated Bid. which shall either be quality-based or quality-cost based. as well as its Secretariat and TWG. members of the BAC. shall be 78 33. Likewise. bidders that have submitted their bids are prohibited from making any kind of communication with any BAC member.1.3. the amount of Bid Security and the name of the issuing entity. .2. numerical ratings shall be used. the purpose of bid evaluation is to determine the Highest Rated Bid. In order to eliminate bias in evaluating the technical proposals.Implementing Rules and Regulations of Republic Act No. 33. Detailed Evaluation Procedure for the Procurement of Consulting Services Notwithstanding the provisions of Section 29 of this IRR-A. For the evaluation of proposals. regarding matters connected to their bids until the approval by the head of the agency of the ranking of short listed bidders.3. including its staff and personnel. as well as the manner by which the actual evaluation of proposals shall be conducted. Section 33. This bid shall be subject to post-qualification in accordance with Rule X of this IRR-A to determine its responsiveness to the eligibility and bid requirements. including the submission of the results thereof to the head of the agency for approval. Bid Evaluation of Short Listed Bidders for Consulting Services 33.2. Once the Highest Rated Bid is determined and post-qualified the contract shall then be awarded to the bidder with the Highest Rated Responsive Bid.3. 33. the Highest Rated Bid shall be determined in two steps: a) The detailed evaluation of the bids of the short listed bidders using numerical ratings based on either the quality-based evaluation/selection procedure or the quality-cost based evaluation/selection procedure. except when the evaluation is conducted in a collegial manner. The entire evaluation process. as a general policy. For the procurement of consulting services. it is recommended that the highest and lowest scores given by the BAC members for each consultant for each criterion shall not be considered in determining the average scores of the consultants.3. 9184 c) Names of bidders and their corresponding calculated bid prices arranged from lowest to highest. After the bids have been submitted to the BAC and during the evaluation period. as well as its Secretariat and TWG. and The ranking of the bidders based on the numerical ratings from the highest to the lowest.3. For the procurement of consulting services. are prohibited from making any kind of communication with any bidder regarding the evaluation of their bids until the approval by the head of the procuring entity of the ranking of short listed bidders. including its staff and personnel.

3. and the quality of interpretation of project problems. 33. and suggested solutions. Quality-Based Evaluation Procedure For the quality-based evaluation procedure. at the option of the agency concerned.1. Said results shall also be posted in the G-EPS and the website of the agency.Implementing Rules and Regulations of Republic Act No. The experience of the consultant to the project shall consider both the overall experiences of the firm and the individual experiences of the principal and key staff including the times when employed by other consultants. risks. The head of the procuring entity shall approve or disapprove the recommendations of the BAC within two (2) calendar days after receipt of the results of the evaluation from the BAC. All participating short listed consultants shall be furnished the results (ranking and total scores only) of the evaluation after the approval by the head of the agency of the ranking. . For complex or unique undertakings. feasibility. 33.3. participating short listed consultants may be required. and Plan of approach and methodology with emphasis on the clarity. overall work commitments. to make an oral presentation to be presented by each consultant. a two-stage procedure shall be adopted whereby each consultant shall be required to submit his technical 79 33.6. for a period of not less than two (2) weeks to inform the GPPB and the umbrella organization of consultants of the results. or its nominated Project Manager or head. The technical proposals of consultants shall be evaluated based on the following criteria: a) Quality of personnel to be assigned to the project which covers suitability of key staff to perform the duties of the particular assignments and general qualifications and competence including education and training of the key staff.4. within fifteen (15) calendar days after the deadline for submission of technical proposals. Experience and capability of the consultant which include records of previous engagement and quality of performance in similar and in other projects. relationship with previous and current clients. such as those involving new concepts/technology or financial advisory services.4. in case of consultant firms. innovativeness and comprehensiveness of the plan approach. geographical distribution of current/impending projects and attention to be given by the consultant.3. 9184 completed in not more than twenty-one (21) calendar days after the deadline for receipt of proposals.4. and. The proposal with the highest rank shall be identified as the Highest Rated Bid. 33.5. whenever available. b) c) The BAC shall assign numerical weights to each of the above criteria which shall be indicated in the bid documents. 33.

Discussion and finalization of the methodology and work program proposed by the consultant. if any. facilities and data. 37 Ibid. taking note of over-qualified personnel to be commensurate with the compensation of personnel with the appropriate qualifications. The financial proposal of the consultant with the Highest Rated Bid shall then be opened by the BAC in the presence of the consultant concerned for the purpose of conducting negotiations with the said consultant.Implementing Rules and Regulations of Republic Act No. the BAC shall inform the consultant of the issues in the technical proposal the BAC may wish to clarify during negotiations. number of man-months and schedule of activities (manning schedule). The BAC shall rank the consultants in descending order based on the numerical ratings of their technical proposals subject to Section 33. number of man-months and the personnel to be assigned to the job. Discussion on the services. to be provided by procuring entity concerned. 35 Except for meritorious reasons. 80 .4. and Provisions of the contract. however. dated 27 June 2005. and the evaluation of consultants shall be made based only on the technical proposals without consideration of the estimated cost or financial terms of the services. that the Highest Rated Bid shall pass the minimum score required.3. the financial proposal of the second in rank consultant shall be opened for negotiations. Consideration of appropriateness of qualifications and pertinent compensation. In the letter of notification. negotiations shall cover the following: a) b) c) Discussion and clarification of the TOR and Scope of Services. provided that the amount indicated in the financial envelope shall be made as the basis for negotiations and the total contract amount shall not exceed the amount indicated in the envelope and the approved budget for the contract as stated in the Invitation to Apply for Eligibility and to Bid. published in the Official Gazette on 29 August 2005.3 of this IRR-A and identify the Highest Rated Bid: Provided.4. Discussion on the financial proposal submitted by the consultant. and so on. When the negotiation with the first in rank consultant fails.5. After approval by the head of the procuring entity. 33. 176. d) e) f) 33. 9184 and financial proposals simultaneously in separate sealed envelopes. 33.35 33. dated 20 July 2006. of the Highest Rated Bid. published in the Philippine Star on 09 September 2006. the BAC shall within three (3) calendar days notify and invite the consultant with the Highest Rated Bid for negotiation.37 Quality-Cost Based Evaluation Procedure As amended by Memorandum Order No.2. 36 As amended by GPPB Resolution 014-2006.4. negotiations with any one consultant shall be completed within ten (10) calendar days.4.36 Basically.

it is hereby clarified that. within three (3) calendar days. Once the contract has been awarded. each consultant shall be required to submit his technical and financial proposals simultaneously in separate sealed envelopes. 33. dated 27 June 2005. as evaluated and corrected for minor arithmetical corrections. the BAC shall. and not during negotiations. 39 40 As amended by GPPB Resolution 014-2006. 176.4. published in the Philippine Star on 09 September 2006. The procuring entity shall immediately consider negotiation with the next ranked consultant if unjustifiable replacement of personnel by the first ranked firm is made. the financial and technical proposals shall be given corresponding weights with the financial proposal given a weight of fifteen percent (15%) up to a maximum of forty percent (40%). 9184 For the quality-cost based evaluation procedure.41 Total calculated bid prices. as distinguished from a Quality-Based Evaluation. except for justifiable reason. After approval by the head of the procuring entity of the HRB. such as. the financial proposals of the consultants who meet the minimum technical rating shall be opened on a separate date and time set by the BAC. For this purpose. There should be no replacement of key personnel before the awarding of contract. The technical proposals shall be evaluated first and only the financial proposals of the consultants who meet the minimum technical rating shall be opened. delay in the evaluation process due to the fault of the Government. Said consultants shall be notified of the date and time set for the opening of the financial proposal. dated 20 July 2006. The methodology to be used in the evaluation of the financial proposal shall be described in the Instructions to Bidders. That subsequent negotiations in accordance with Section 33. Ibid. published in the Official Gazette on 29 August 2005. 41 Ibid.6. such as computational errors. which should be at least fifty percent (50%) of the total basic rate for the duration of the engagement. 81 . negotiations with any one consultant shall be completed within ten (10) calendar days. Violators will be fined an amount equal to the refund of the replaced personnel’s basic rate. among others.39 The BAC shall rank the consultants in descending order based on the combined numerical ratings of their technical and financial proposals and identify the Highest Rated Bid. This shall be indicated in the Invitation to Apply for Eligibility and to Bid and the bidding documents. and the technical proposal together with the financial proposal shall be considered in the evaluation of consultants. no replacement shall be allowed until after fifty percent (50%) of the personnel’s man-months have been served. notify and invite the consultant with the HRB for negotiation:40 Provided. The exact weight shall be approved by the head of the procuring entity upon the recommendation of the BAC.Implementing Rules and Regulations of Republic Act No.38 Furthermore. however. except for item (e) thereof. The weight of the technical criteria shall be adjusted accordingly such that their total weight in percent together with the weight given to the financial proposal shall add to one hundred percent (100%). Except for meritorious reasons.3 of this IRR-A shall still be undertaken with the first in rank consultant. in the case of a Quality-Cost Based Evaluation. 38 As amended by Memorandum Order No. except for justifiable reasons. which exceed the approved budget for the contract shall not be considered.

To determine compliance of the goods. distributors. in applicable cases. Technical Requirements.2. validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid. and/or inspection and testing. These criteria shall consider. infrastructure projects or consulting services offered with the requirements of the contract and bidding documents. of equipment units to be owned or leased by the bidder. 9184 RULE X – POST-QUALIFICATION Section 34. or substandard quality of work as per contract plans and specifications. as the case may be. contractors and consultants “blacklisted” by the Government or any of its procuring entities. 82 . the BAC shall conduct and accomplish a post-qualification of the bidder with the Lowest Calculated Bid/Highest Rated Bid. (iii) verification and/or inspection and testing of the goods/product. for the procurement of infrastructure projects. or the “Highest Rated Responsive Bid” for the procurement of consulting services. for the procurement of goods. The post-qualification shall verify. at the time of inspection. in which case the said bidder’s bid shall be considered and declared as the “Lowest Calculated Responsive Bid” for the procurement of goods and infrastructure projects. but in no case shall the aggregate period exceed thirty (30) calendar days. after-sales and/or maintenance capabilities. and the competence and experience of the bidder’s key personnel to be assigned to the project.42 34.Implementing Rules and Regulations of Republic Act No. the GPPB shall maintain a consolidated file of all manufacturers. suppliers. the bidding of the contract. as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders. but shall not be limited to. as specified in the bidding documents. the agency shall disqualify the contractor from the award). validate and ascertain licenses and agreements submitted by the bidder and the fact that he is not included in any Government “blacklist. To verify. and if the BAC verifies any of these deficiencies to be due to the contractor’s fault or negligence. Within seven (7) calendar days from the determination of Lowest Calculated Bid or the Highest Rated Bid. using non-discretionary criteria. including. the following: a) Legal Requirements.” For this purpose. where applicable: (i) verification and validation of the bidder’s stated competence and experience. to determine whether the bidder concerned complies with and is responsive to all the requirements and conditions for eligibility. Objective and Process of Post-Qualification 34. for the procurement of infrastructure projects and consulting services. as well as checking the performance of the bidder in its ongoing government and private contracts (if any of these on-going contracts shows a reported negative slippage of at least fifteen percent (15%). In exceptional cases. the post-qualification period may be extended by the head of the procuring entity. or unsatisfactory performance of his obligations as per contract terms and conditions. and (iv) ascertainment of the b) 42 Ibid.1. (ii) verification of availability and commitment.

the bidder’s stated net worth and liquid assets.4. The post-disqualified bidder shall have three (3) calendar days from receipt of the said notification to request from the BAC. immediately after the BAC has notified the first bidder of its post-disqualification. In the case of the quality-based evaluation procedure. net working capital. The BAC shall evaluate the request for reconsideration. and provided that the request for reconsideration of the first bidder has been denied. immediately after the BAC has notified the first bidder of its post-disqualification. 34. and shall issue its final determination of the said request within seven (7) calendar days from receipt thereof. it shall immediately notify the said bidder in writing of its post-disqualification and the grounds for it.5. as the case may be. a reconsideration of this decision. the sealed financial envelopes of the unsuccessful bidders shall be returned by the BAC unopened and duly sealed 34. For the procurement of infrastructure projects. if any. 34. however. the value of all outstanding or unfinished works under ongoing contracts including awarded contracts yet to be started. and the head of the procuring entity concerned shall award the contract to it. whenever applicable. c) Financial Requirements. 43 Ibid. the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid fails the criteria for post-qualification. and it passes the post-qualification. For the procurement of consulting services. and the bidder’s NFCC. validate and ascertain the bid price proposal of the bidder and. 34. if it so wishes. 83 . To verify. using the same non-discretionary criteria. If the negotiations with the second bidder are successful. and validity period. If the second bidder passes the post-qualification. the second bidder shall be post-qualified as the bidder with the Highest Rated Responsive Bid. the BAC shall initiate and complete the same post-qualification process on the bidder with the second Lowest Calculated Bid. to ensure that the bidder can sustain the operating cash flow of the transaction. If.3. If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid passes all the criteria for post-qualification. 9184 sufficiency of the Bid Security as to type. and the head of the procuring entity concerned shall award the contract to the said bidder. amount. and notwithstanding any pending request for reconsideration thereof. the second bidder shall be post-qualified as the bidder with the Lowest Calculated Responsive Bid. form and wording.6. the BAC shall initiate and complete the negotiation and post-qualification process on the bidder with the second Highest Rated Bid.Implementing Rules and Regulations of Republic Act No. it shall declare the said bidder as the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. this shall cover as well.43 For the procurement of goods and infrastructure projects. and notwithstanding any pending request for reconsideration thereof. whenever applicable. and the head of the procuring entity concerned shall award the contract to it. and provided that the request for reconsideration of the first bidder has been denied. the required bank commitment to provide a credit line to the bidder in the amount specified and over the period stipulated in the Instructions to Bidders.

when necessary. and it meets the eligibility requirements or criteria.2. only one prospective bidder submits an LOI and/or applies for eligibility check. 35. as the case may be. after which it submits a bid which is found to be responsive to the bidding requirements. without justifiable cause to accept the award of contract. to change the scope of work or to adjust the procuring entity’s cost estimates or specifications. 35. in the case of consulting services. or d) The bidder with the Lowest Calculated Responsive Bid/Highest Rated Responsive Bid refuses.7. and no award is made in accordance with Section 40 of the Act and this IRR-A.3. Single Calculated/Rated and Responsive Bid Submission A single calculated/rated and responsive bid shall be considered for award if it falls under any of the following circumstances: a) If after advertisement. The BAC shall modify the terms. Section 35. and so on until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. the procuring entity concerned may enter into a negotiated procurement. c) All bids fail to comply with all the bid requirements or fail postqualification. conditions and specifications in the first bidding documents. however. in accordance with the provisions of this IRR-A. All bidders who have initially responded to the Invitation to Apply for Eligibility and to Bid and have been declared eligible in the first bidding shall be allowed to submit new bids. as provided for in Section 21 of the Act and this IRR-A. conditions and specifications of the first bidding. is determined for award. Should there occur a second failure of bidding. If the second bidder. All prospective bidders are declared ineligible. 34. The BAC shall declare the bidding a failure and conduct a re-bidding with readvertisement and/or posting. The BAC shall observe the same process and set the new periods according to the same rules followed during the first bidding. as provided for in Section 53 of the Act and this IRR-A. 84 . Failure of Bidding 35. Section 36. fails the post-qualification.1. 9184 only when the consultant with the Highest Rated Responsive Bid has signed the contract and furnished the Performance Security. However. when: a) b) No prospective bidder submits an LOI or no bids are received. the ABC shall be maintained. the procedure for post-qualification shall be repeated for the bidder with the next Lowest Calculated Bid/Highest Rated Bid. after a re-evaluation of the terms. or. there is no successful negotiation.Implementing Rules and Regulations of Republic Act No.

Within the same period provided herein. or If after the eligibility check. whichever is lower. the procuring entity concerned shall request in writing all those who submitted bids for such extension before the expiration date 37. In the case of GOCCs and GFIs. the head of the procuring entity or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. IMPLEMENTATION AND TERMINATION OF THE CONTRACT Section 37. In the case of Single Calculated/Rated Responsive Bid.1. the head of the procuring entity or his duly authorized representative shall approve or disapprove the said recommendation within four (4) calendar days. the bidder with the Single Calculated /Rated Responsive Bid shall be awarded the contract. after which it submits a bid which is found to be responsive to the bidding requirements. if applicable. However. and the recommendation of the award. but only one bidder submits a bid.2. the period provided herein shall be fifteen (15) calendar days.2. the BAC shall notify all losing bidders of its decision. 37. Should it become necessary to extend the validity of the bids and. Award of contract shall be made to the bidder with the Lowest Calculated Responsive Bid or the Highest Rated Responsive Bid.Implementing Rules and Regulations of Republic Act No.2. the bid securities. c) In all instances. Contract Award Within a period not exceeding seven (7) calendar days from the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.1. RULE XI – AWARD. 37. Notice and Execution of Award 37. and its bid is found to be responsive to the bidding requirements.2. In the case of quality-based procurement of consulting services. 9184 b) If after advertisement. at its submitted bid price or its calculated bid price. for infrastructure projects with an ABC of fifty (50) million and below. the procuring entity shall ensure that the ABC reflects the most advantageous prevailing price for the Government. more than one bidder meets the eligibility requirements. 85 . in accordance with the provisions of this IRR-A.44 Contract award shall be made within the bid validity period. whichever is lower. as the case may be. In case of approval. 44 Ibid. as provided for in Section 36 of the Act and this IRR-A. the head of the procuring entity or his duly authorized representative shall approve or disapprove the said recommendation. the award shall be based on the negotiated price or the submitted price. more than one prospective bidder submits an LOI and/or applies for eligibility check. but only one bidder meets the eligibility requirements or criteria.

and Other pertinent documents that may be required by existing laws and/or the procuring entity concerned. if applicable. Approval of Contract 45 As amended by Memorandum Order No. published in the Official Gazette on 29 August 2005. Performance Security. the following supporting documents shall be submitted: a) b) c) d) e) f) Duly approved program of work or delivery schedule. Notice of Award of Contract and winning bidder’s ”Conforme” thereto. 176. prior to formally entering into contract with the procuring entity concerned within ten (10) calendar days from receipt by the winning bidder of the Notice of Award. documents and/or statements. if any. Credit Line issued by a licensed bank in accordance with the provisions of this IRR-A.4. Drawings/Plans. Specifications. Bid form including all the documents/statements contained in the winning bidder’s two bidding envelopes.2. Approval of award by appropriate government approving authority. Addenda and/or Supplemental/Bid Bulletins. if any. and Cost Estimates.3. 37. Conditions of Contract.Implementing Rules and Regulations of Republic Act No. if applicable. Invitation to Apply for Eligibility and to Bid. The Procuring Entity shall enter into contract with the winning bidder within the same ten (10) day period provided that all the documentary requirements are complied with. To facilitate the approval of the contract by the head of the procuring entity. Resolution of the BAC or duly designated procurement office recommending Award. shall have the right to refuse to grant such extension without forfeiting their bid security. as annexes.3.45 37.4. Contract Signing The winning bidder or its duly authorized representative shall comply with all the remaining documentary requirements. Contract Agreement. Abstract of Bids. dated 27 June 2005. Certificate of availability of funds. 37. Bidding Documents. if applicable. Eligibility requirements. Bidders. 86 . however. 9184 therefor. The following documents shall form part of the contract: a) b) c) d) e) f) g) h) i) i) k) l) m) 37. and Other contract documents that may be required by existing laws and/or the procuring entity concerned.2.

47 48 Ibid. or his duly authorized representative. Notice to Proceed The concerned procuring entity shall then issue the Notice to Proceed together with a copy or copies of the approved contract to the successful bidder within three (3) calendar days from the date of approval of the contract by the appropriate government approving authority. the approving authority for the contract. However. That where further approval by the Office of the President is required. or special non-working holiday. to approve or disapprove it. The maximum periods and earliest possible time for action on specific procurement activities are provided for in Annex “C” of this IRR-A. the contract shall not be deemed approved 46 As amended by GPPB Resolution 014-2006.4 of this IRR-A. for infrastructure projects with an ABC of fifty (50) million and below. However.48 38. All members of the BAC shall be on a “jury duty” type of assignment until the Notice of Award is issued by the head of the procuring entity in order to complete the entire procurement process at the earliest possible time. or a shorter period to be determined by the procuring entity concerned. the term “jury duty” shall be understood to mean a state by which the members give utmost priority to BAC assignment over all the other duties and responsibilities until the requirements for the said assignments at hand are completed. shall act on the approval of the contract within twenty-five (25) calendar days from receipt thereof together with all documentary requirements to perfect the said contract. 87 . legal holiday. dated 20 July 2006.46 37. Ibid. 9184 When further approval of higher authority is required. In the case of GOCCs. In case the deadline for each activity falls on a non-working day (i. If no action on the contract is taken by the head of the procuring entity within the periods specified in Section 37. Saturday and Sunday).2. published in the Philippine Star on 09 September 2006. the deadline shall be the next working day. the concerned board.1. or its duly authorized representative. for infrastructure projects with an ABC of fifty (50) million and below. the contract concerned shall be deemed approved: Provided. For purposes of this section. If an effectivity date is provided in the Notice to Proceed by the procuring entity concerned.e. together with all documentary requirements to perfect the said contract. All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the successful bidder. the maximum period is two (2) calendar days. Period of Action on Procurement Activities 38. the maximum period is five (5) calendar days. however.5. The procurement process from the opening of bids up to the award of contract shall not exceed three (3) months.47 Section 38. shall be given a maximum of fifteen (15) calendar days from receipt thereof.Implementing Rules and Regulations of Republic Act No. such date shall not be later than seven (7) calendar days from issuance thereof.

9184 unless and until the Office of the President gives actual approval to the contract concerned.1. bilateral or multilateral agreement. as may be required by the head of the procuring entity concerned. the following conditions shall be complied with: a) b) It shall be executed in the form prescribed by the procuring entity concerned in the Instructions to Bidders. bank draft or irrevocable letter of credit 2. To guarantee the faithful performance by the winning bidder of its obligations under the contract prepared in accordance with the bidding documents. Surety bond callable upon demand issued by any reputable surety or insurance company. The Performance Security may be in any of the following forms: a) Cash. It shall at least be co-terminus with the final completion of the contract. cashier’s/manager’s check. certified check. and shall be forfeited in favor of the procuring entity in the event it is established that the winning bidder is in default in any of its obligations under the contract. Foreign government guarantee 39. Minimum Amount in % of Total Contract Price Five percent (5%) Ten percent (10%) Thirty percent (30%) One hundred percent (100%) The Performance Security shall be posted in favor of the procuring entity concerned. Section 39. certified check. the same shall be confirmed or authenticated by a reputable local bank.3.2. and 88 39. or A foreign government guarantee as provided in an executive. . Cash. A combination of the foregoing. manager’s check. bank draft/guarantee confirmed by a reputable local bank or in the case of a foreign winning bidder. Bank guarantee 3. b) c) d) e) The required amount of the above forms of security shall be in accordance with the following schedule: Form of Security 1. bonded by a foreign bank. Surety bond 4. Irrevocable letter of credit issued by a reputable commercial bank or in the case of an irrevocable letter of credit issued by a foreign bank.Implementing Rules and Regulations of Republic Act No. cashier’s check. Performance Security 39. it shall post a Performance Security upon the signing of the contract. In the execution of the Performance Security.

89 . in the case of procurement of infrastructure projects. Section 40. 50 As amended by Memorandum Order No. published in the Official Gazette on 29 August 2005. fails.2. in the case of procurement of goods or consulting services. The winning bidder shall cause the extension of the validity of the Performance Security to cover approved contract time extensions. provided that there are no claims filed against the contract awardee or the surety company. the bid security shall be forfeited and the appropriate sanctions provided in this IRR- 49 Per GPPB Resolution 012-2005. as the case may be.50 In case of a reduction in the contract value. corporation and association supplying the contractor with labor and materials for the prosecution of the work is hereby acknowledged and confirmed. For this reason.A. partnership. the coverage of the performance security shall include the defects liability period of one (1) year and shall be due for release only after the Certificate of Acceptance is issued by the procuring entity. or. the performance security shall cover the period from the time of the signing of the contract until the final acceptance of the project by the government wherein the warranty period as prescribed in Sec. 176.6. or.5. the said agency or procuring entity shall allow a proportional reduction in the original Performance Security. the following provisions shall form part of the Performance Security: “The right to institute action on the penal bond pursuant to Act No. for partially completed works under the contract which are usable and accepted by the Government. dated 27 June 2005.Implementing Rules and Regulations of Republic Act No. the Performance Security may be released by the procuring entity concerned after the issuance of the Certificate of Acceptance of the goods.49 For the procurement of infrastructure projects. Subject to the conditions of the contract. the winning bidder shall post an additional performance security following the schedule above to cover any cumulative increase of more than ten percent (10%) over the original value of the contract as a result of amendments to order or change orders. 39. 9184 shall have commenced.4. in the case of procurement of infrastructure projects. 9184 c) For the procurement of infrastructure projects.2 of the IRR-A of R. If the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. 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. or the bidder with the Single Calculated/Rated Responsive Bid.” 39. 62. extra work orders and supplemental agreements. after the issuance of the Certificate of Completion of the contract. as the case may be.1. Failure to Enter into Contract and Post Performance Security 40. provided that there are no claims for labor and materials filed against the contractor or the surety company. and the use of which in the judgment of the implementing agency or the procuring entity will not affect the structural integrity of the entire project. in case of procurement of infrastructure projects. refuses or is unable to make good its bid by entering into a contract with the procuring entity or post the required Performance Security within the period stipulated in the bidding documents. 3688 of any individual firm. 39.

to enter into contract and post the required Performance Security. Should there occur another failure of bidding after the conduct of the contract’s rebidding. or For any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the Government as follows: (i) if the physical and economic conditions have significantly changed so as to render the project no longer economically. Reservation Clause 41. if no bidder passes post-qualification. b) c) 90 . refusal or inability is through no fault of the said bidder. financially or technically feasible as determined by the head of the procuring entity. or not award the contract in the following situations: a) If there is prima facie evidence of collusion between appropriate public officers or employees of the procuring entity. the BAC shall disqualify the said bidder. That in the case of consulting services. suppress or nullify competition. In the case of the failure. declare a failure of bidding. as provided for in Sections 21 and 25 of this IRR-A. or between the BAC and any of the bidders. 40. as the case may be. and (iii) if the source of funds for the project has been withheld or reduced through no fault of the procuring entity. except where such failure. suppresses or nullifies or tends to restrict. and shall initiate and complete the post-qualification process on the bidder with the second Lowest Calculated Bid/Highest Rated Bid: Provided. If the BAC is found to have failed in following the prescribed bidding procedures. however. the second Highest Rated Bid has successfully undergone the negotiation stage in accordance with Section 33. the BAC shall disqualify the said bidder.1. Section 41. This procedure shall be repeated until the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid. as provided in this Section. refusal or inability of the bidder with the Single Calculated/Rated Responsive Bid to enter into contract and post the required Performance Security. including any act which restricts. (ii) if the project is no longer necessary as determined by the head of the procuring entity. or if the collusion is between or among the bidders themselves. Should there occur another failure of bidding after the conduct of the contract’s re-bidding.2. The procuring entity reserves the right to reject any and all bids. the procuring entity concerned may enter into a negotiated procurement. as provided in this Section. and shall declare the bidding a failure and conduct a re-bidding with re-advertisement and/or posting.3. or between a bidder and a third party.4 of this IRR-A. In the case of failure. the BAC shall declare the bidding a failure and conduct a re-bidding with re-advertisement. 9184 A and existing laws shall be imposed. 40. refusal or inability of the bidder with the Lowest Calculated and Responsive Bid or Highest Rated and Responsive Bid. However.Implementing Rules and Regulations of Republic Act No. is determined for award. as the case may be. the procuring entity concerned may enter into a negotiated procurement.

however. Procurement of Domestic and Foreign Goods Consistent with the Government’s obligations under international treaties or agreements. supplies and materials are provided for in Annex “D” of this IRR-A. 51 As amended by Memorandum Order No. No incentive bonus. further. 91 . RULE XIII – BIDDING OF PROVINCIAL PROJECTS Section 44.Implementing Rules and Regulations of Republic Act No.3. dated 08 May 2006. 42. 138. Provided. the procuring entity may give preference to the purchase of domestically-produced and manufactured goods. in the interest of availability.2. goods may be obtained from domestic or foreign sources: Provided. Provided further. That. shall constitute “provincial projects” and shall be governed by this Section and Section 45 of this IRR-A. Bidding of Provincial Projects Priority programs and infrastructure projects funded out of the annual GAA which are intended for implementation within the province shall be subject to the same public bidding and to the procurement processes prescribed in this IRR-A. published in the Manila Times on 12 May 2006. 42. The contract implementation guidelines for the procurement of infrastructure projects are provided for in Annex “E” of this IRR-A. no payment on the letter of credit shall be made until delivery and acceptance of the goods as certified to by the procuring entity in accordance with the delivery schedule provided for in the contract.1.4. manufacturers and distributors: Provided. that. The contract implementation guidelines for the procurement of consulting services are provided for in Annex “F” of this IRR-A. 213.51 RULE XII – DOMESTIC AND FOREIGN PROCUREMENT Section 43. supplies and materials that meet the specified or desired quality.5. 42. efficiency and timely delivery of goods. Procuring entities may issue a letter of credit in favor of a local or foreign suppliers. that. The contract implementation guidelines for the procurement of goods. For purposes of this Section. in accordance with provisions of Commonwealth Act No. That the procurement thereof shall be open only to eligible suppliers. Engineering District infrastructure projects and priority programs fully funded by the Government and identified in consultation with the concerned members of Congress. the cost for the opening of letter of credit shall be for the account of the local or foreign supplier and to be so stated in the bidding documents. 42. 9184 Section 42. in whatever form or for whatever purpose. Contract Implementation and Termination 42. shall be allowed.

The release of funds for said projects shall be published in a local newspaper with the widest circulation and posted at any conspicuous place reserved for the purpose in the premises of the procuring entity and posted continuously in the website of DBM and the G-EPS during the same period for the advertisement and posting of the Invitation to Apply for Eligibility and to Bid under Section 21 of this IRR-A. finally. a contractor who participates in the bidding of provincial priority programs and infrastructure projects as defined in Section 44 of this IRR-A. Lease Contracts The lease of construction and office equipment. COMMUNICATIONS. shall be given forty-eight (48) hours from receipt of written advice from the BAC to match in writing the Lowest Calculated Bid. That this Section shall not cover the procurement of consulting services: Provided.1.A. all bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the head of the procuring entity by consanguinity or affinity up to the third civil degree. he shall be awarded the contract provided he passes the post-qualification. the contract shall be awarded to the bidder with the Lowest Calculated Bid. That this Section shall not apply to projects located within Metro Manila. 9184 or after 26 January 2008. Provided. communication and information technology equipment are subject to the same public bidding and to the processes prescribed under this IRR-A. including computers. and who submits the lowest bid among the provincial bidders which is higher than the Lowest Calculated Bid made by a contractor with principal office outside the said province. That this Section shall not apply to contracts the coverage of which includes more than one province: Provided. however.Implementing Rules and Regulations of Republic Act No.2. whose principal office is within the same province. 45. Provincial Bidders52 45. RULE XV – DISCLOSURE OF RELATIONS Section 47. INFORMATION AND OTHER EQUIPMENT Section 46. Should the said provincial bidder fail to match the Lowest Calculated Bid within the specified period. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance with Section 30 52 This provision will not apply to procurement projects advertised/published five (5) years after the effectivity of R. Matching shall be made through appropriate adjustments in his unit bid prices without changing the Scope of Work and work items prescribed by the procuring entity in the bidding documents. Lease may also cover lease purchases or lease-toown and similar variations. RULE XIV – LEASE OF COMPUTERS. 92 . Within five (5) years from the effectivity of the Act. 9184 Section 45. Disclosure of Relations In addition to the proposed contents of the Invitation to Apply for Eligibility and to Bid as mentioned under Section 21 of this IRR-A. further. If the provincial bidder is able to match the submitted Lowest Calculated Bid within the specified period.

such as. coal) and consulting services 93 . the members of the BAC. Alternative methods shall be resorted to only in the highly exceptional cases provided for in this Rule.Implementing Rules and Regulations of Republic Act No. and maintained updated with. the GPPB. On the part of the bidder. to the bidder himself. Subject to the prior approval of the head of the procuring entity or his duly authorized representative. the procuring entity shall ensure that the most advantageous price for the Government is obtained. 48. the BAC Secretariat. In accordance with Section 10 of this IRR-A. The BAC of the concerned procuring entity shall directly send to the pre-selected bidders the invitation to bid. and If the bidder is a joint venture. the provisions of items (a). and whenever justified by the conditions provided in this Act. Alternative Methods 48. sophisticated defense equipment. but not limited to. On the part of the procuring entity. this provision shall also apply to any of its officers or employees having direct access to information that may substantially affect the result of the bidding. relation to the head of the procuring entity within the third civil degree of consanguinity or affinity shall automatically disqualify the bidder from participating in the procurement of contracts of the procuring entity. Limited Source Bidding Limited Source Bidding. (b) or (c) of this Section shall correspondingly apply to each of the members of the said joint venture. as may be appropriate. and the designers of the project. If the bidder is a corporation. to all its officers. to all its officers and members.2. the members of the PMO.g. If the bidder is a partnership. the procuring entities shall adopt public bidding as the general mode of procurement and shall see to it that the procurement program allows sufficient lead time for such public bidding. directors. which shall already indicate the relevant information required to enable the bidders to prepare their bids as prescribed under the pertinent provisions of this IRR-A. 9184 of this IRR-A. as a general rule. resort to any of the alternative methods of procurement provided in this Rule. which list should have been submitted to. Limited source bidding may be employed by concerned procuring entities under any of the following conditions: a) Procurement of highly specialized types of goods (e. complex air navigation systems. For this reason.1. RULE XVI – ALTERNATIVE METHODS OF PROCUREMENT Section 48. is a method of procurement of goods and consulting services that involves direct invitation to bid by the concerned procuring entity from a set of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. the members of the TWG. the procuring entity may. and controlling stockholders. in order to promote economy and efficiency. The pre-selected suppliers or consultants shall be those appearing in a list maintained by the relevant Government authority that has expertise in the type of procurement concerned. Section 49. this provision shall apply to the following persons: a) b) c) d) If the bidder is an individual or a sole proprietorship. In all instances. otherwise known as selective bidding.

supplier or distributor is a condition precedent to hold a contractor to guarantee its project performance. Repeat orders from the previous winning bidder may be resorted to by procuring entities only in cases where the procured item is clearly superior to the other bids not only in terms of the price quoted but also in terms of equipment reliability. availability of spare parts. The offer may be accepted immediately or after some negotiations. Section 50. among others.Implementing Rules and Regulations of Republic Act No.1 of this IRR-A. in accordance with the provisions of its contract. and b) c) 94 . is a method of procurement of goods from the previous winning bidder. The repeat order will not result in splitting of contracts. when provided for in the APP. provided that such prices are still the most advantageous to the Government after price verification. whenever there is a need to replenish goods procured under a contract previously awarded through Competitive Bidding. such that resorting to the public bidding method will not likely result in any additional suppliers or consultants participating in the bidding. Repeat Order Repeat Order. Repeat orders shall likewise be subject to the following conditions: a) Contract prices of the repeat order must be the same as or lower than those in the original contract. Except in cases duly approved by the GPPB. as provided for in Section 54. b) c) Section 51. When the procurement of critical plant components from a specific manufacturer. Direct contracting may be resorted to by concerned procuring entities under any of the following conditions: a) Procurement of items of proprietary nature which can be obtained only from the proprietary source. or b) Procurement of major plant components where it is deemed advantageous to limit the bidding to known qualified bidders in order to maintain uniform quality and performance of the plant as a whole. trade secrets and copyrights prohibit others from manufacturing the same item.e. or Those sold by an exclusive dealer or manufacturer which does not have subdealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the Government. The supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale. Direct Contracting Direct Contracting or single source procurement is a method of procurement of goods that does not require elaborate bidding documents. when patents. i. the repeat order shall be availed of only within six (6) months from the date of the Notice to Proceed arising from the original contract. 9184 where only a few suppliers or consultants are known to be available. requisitions or purchase orders. after-sales service and delivery period.

000).000).000): Provided. however. Section 52. “ordinary or regular office supplies” shall be understood to include those supplies. however. website of the procuring entity. are necessary in the transaction of its official businesses. and in conspicuous place within the premises of the procuring entity. office supplies shall not include services such as repair and maintenance of equipment and furniture. Negotiated Procurement Negotiated Procurement is a method of procurement of goods. b) The above amounts shall be subject to a periodic review by the GPPB. dated 20 January 2006. This method of procurement shall be employed only in any of the following cases: a) When there is an unforeseen contingency requiring immediate purchase: Provided. and related or analogous services.1 of this IRR-A: Provided. the GPPB shall be authorized to increase or decrease the said amount in order to reflect changes in economic conditions and for other justifiable reasons. (4) Recourse to this type of procurement shall be approved by the Head of the procuring entity. That the amount shall not exceed fifty thousand pesos (P50. published at the Official Gazette on 03 July 2006) 54 Per GPPB Resolution 012-2006. That the procurement does not result in splitting of contracts. as provided in Section 54. 9184 d) The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item in the original contract. as well as trucking. Section 53.53 or Procurement of ordinary or regular office supplies54 and equipment not available in the Procurement Service involving an amount not exceeding two hundred fifty thousand pesos (P250. further. However. provided the same is included in the APP as an alternative mode of procurement and said procurement does not result into splitting of contracts. (2) The supplies or equipment must not be available in the Procurement Service. whereby the procuring entity directly negotiates a contract with a technically. Shopping Shopping is a method of procurement of goods whereby the procuring entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. (See GPPB Resolution 005-2006. security. if any. depending on the procuring entity’s mandate and nature of operations. 53 Suppliers are exempted from posting performance security provided that the goods procured shall be delivered upon purchase. For this purpose. legally and financially capable supplier. dated 14 June 2006. 95 . and (5) The award of contract must be posted at the G-EPS website. and consumed in the day-to-day operations of said procuring entity. commodities or materials which. janitorial.Implementing Rules and Regulations of Republic Act No. infrastructure projects and consulting services. hauling. That at least three (3) price quotations from bona fide suppliers shall be obtained. contractor or consultant only in the following cases: a) Where there has been failure of public bidding for the second time as provided in Section 35 of the Act and this IRR-A. Resort to this alternative method of procurement shall be subject to the following rules: (1) The amount of goods to be procured should not exceed Two Hundred Fifty Thousand Pesos (P250. (3) The procuring entity must obtain at least three (3) price quotations from bonafide suppliers.

Implementing Rules and Regulations of Republic Act No. 57 As amended by GPPB Resolution 003-2007. or at their option. otherwise known as the Corporation Code of the Philippines. For purposes of this paragraph. series of 1989. infrastructure facilities and other public utilities. where the consultants have unique experience and expertise to deliver the required service. as determined by the head of the procuring entity concerned. Where the subject contract is adjacent or contiguous to an on-going infrastructure project: Provided. (ii) the subject contract to be negotiated has similar or related scopes of work. which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. The GPPB shall issue guidelines to implement this provision. recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function. and (vi) the contractor has no negative slippage: Provided. infrastructure facilities and other public utilities. Whenever applicable. further. consulting services and goods from another agency of the Government. 56 Refer to Appendix H for Guidelines on Implementation of Infrastructure Projects Undertaken By AFP Corps of Engineers. 9184 b) In case of imminent danger to life or property during a state of calamity. in high security risk areas. may request other agencies to undertake such procurement for them. or (ii) primarily confidential or policy determining. or when time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property. In the case of infrastructure projects. 168. Take-over of contracts. dated 30 March 2007. That negotiations for the procurement are commenced before the expiry of the original contract. In order to hasten project implementation. agencies which may not have the proficiency or capability to undertake a particular procurement. this principle shall also govern consultancy contracts. however. or to restore vital public services. published in the Official Gazette on 09 July 2007. (v) the amount involved does not exceed the amount of the ongoing project. such as the PS-DBM. through the AFP56. 755 and Executive Order No. Procurement of infrastructure. 359. where trust and confidence are the primary consideration for the hiring of the 55 Refer to Appendix I for Revised Guidelines on Implementation of Infrastructure Projects By Administration. where immediate action is necessary to prevent damage to or loss of life or property. (iv) the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost. That (i) the original contract is the result of a Competitive Bidding. (iii) it is within the contracting capacity of the contractor. the term agency shall exclude GOCCs incorporated under Batas Pambansa Blg. or to restore vital public services. the procuring entity has the option to undertake the project through negotiated procurement or by administration55 or.57 c) d) e) f) In the case of individual consultants hired to do work that is (i) highly technical or proprietary. which have been rescinded or terminated for causes provided for in the contract and existing laws. 96 .

however. and when the procurement for use by the AFP involves major defense equipment and/or defense-related consultancy services. at the most. g) Upon prior approval by the President of the Philippines. That the performance by the supplier of its obligations under the procurement contract shall be covered by a foreign government guarantee of the source country covering one hundred percent (100%) of the contract price. dated 20 January 2006. 97 . or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and this IRR-A. 9184 consultant: Provided. That the term of the individual consultants shall. the procuring entity may enter into a Memorandum of Agreement with an NGO. subject to guidelines to be issued by the GPPB. 59 As amended by GPPB Resolution 004-2006.1. 58 As amended by Memorandum Order No. when the expertise or capability required is not available locally. dated 14 November 2005. Splitting of Government Contracts means the division or breaking up of Government Contracts into smaller quantities and amounts. 61 As amended by GPPB Resolution 012-2007.1 of this IRRA: Provided. 195.00) and below. For this purpose.Implementing Rules and Regulations of Republic Act No. The above amount shall be subject to the periodic review by the GPPB. dated 29 June 2007. but in no case shall exceed the term of the latter.59 or i) j) Lease of privately owned real estate for official use. that the procurement does not fall under Shopping in Section 52 of this IRR-A. however. and the Secretary of National Defense has determined that the interests of the country shall be protected by negotiating directly with an agency or instrumentality of another country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations: Provided. further.60 When an appropriation law or ordinance earmarks an amount to be specifically contracted out to Non-Governmental Organizations (NGOs). Terms and Conditions for the use of Alternative Methods 54. be on a six month basis. especially the necessity of public bidding and the requirements for the alternative methods of procurement.61 h) Section 54. Splitting of Government Contracts is not allowed.000. Provided. subject to guidelines to be issued by the GPPB. dated 04 May 2007.58 Where the amount involved is Fifty Thousand Pesos (P50. however. the GPPB shall be authorized to increase or decrease the said amount in order reflect the changes in economic conditions and for other justifiable reasons. published in the Official Gazette on 16 January 2006. published in the Official Gazette on 30 July 2007. published in the Philippine Star on 09 September 2006. renewable at the option of the appointing head of the procuring entity. as provided under Section 54. that the procurement does not result in splitting of contracts. 60 As amended by GPPB Resolution 004-2007.

and other tender documents for their use in submitting their quotation and other information called for in the format. specifications. Negotiation may be made in ascending order starting from the lowest complying offerer. all the suppliers or consultants appearing in the list specified in the same section shall be invited.Implementing Rules and Regulations of Republic Act No. d) For item (b) of Section 53 of the Act and this IRR-A. conditions. whichever is applicable. is not responsive to the original specifications and ABC. For item (a) of Section 53. contractors. bona fide contractors licensed with the CIAP whose eligibility documents are on file with the procuring entity concerned or the Department of Public Works and Highways (DPWH) Contractors’ Registry. contractor or consultant of good standing situated within the vicinity where the calamity or emergency occurred.2. 9184 54. In all cases. published in the Manila Times on 12 May 2006. the negotiation shall be made with a previous supplier. Eligible contractor(s) for the project under consideration shall be furnished copies of the instructions to offerers. the bid security as stipulated above. or consultants in good standing which will be invited to submit bids and negotiate with the bidder who submitted the lowest calculated bid or highest rated bid. Other contractors not previously deemed eligible may also apply for eligibility. or a supplier. website of the procuring entity. dated 08 May 2006. simultaneously with their quotation. limitations and restrictions on the application of each of the alternative methods specified in Sections 48 to 53 of this IRR-A. whichever is applicable. the procuring entity shall draw up a list of at least three (3) suppliers. The bidder whose bid is found to be responsive to the original specifications and ABC shall be considered for award. plans. as the case may be. if c) 62 As amended by Memorandum Order No. and in conspicuous place within the premises of the procuring entity. 213. if any. website of the procuring entity. The contractors shall submit. The award of contract shall be posted at the G-EPS website. In addition to the specific terms. proposal book form. suppliers and consultants as basis for drawing up the short list and/or selecting the contractors. contractor or consultant of good standing of the procuring entity concerned. 98 . If the offer of the bidder who submitted the lowest calculated bid or highest rated bid.62 In the case of infrastructure projects. suppliers and consultants for negotiations. the following shall also apply: a) b) For item (a) of Section 49. All procuring entities shall maintain a registry of contractors. and who have been classified under the type of contract/project where the subject contract falls are eligible to be invited for negotiation. negotiation shall be made in ascending order starting from the lowest offer. the award of contract shall be posted at the G-EPS website.

2. If the negotiation fails again. Protests on Decisions of the BAC 55. in case of goods and infrastructure projects. the procuring entity shall draw up a list of at least three (3) suppliers.64 f) g) h) i) RULE XVII – PROTEST MECHANISM Section 55. a short list of at least three (3) eligible contractors shall be invited to submit their bids. the contract may be negotiated starting with the second lowest calculated bidder for the project under consideration at the bidder’s original bid price. within their respective limits of approving authority.63 e) For item (c) of Section 53 of the Act and this IRR-A. and the same has been resolved. With respect to item (a) of Section 52 of the Act and this IRR-A while the procurement activity would still have to be posted in accordance with the provisions of Section 21. however. dated 20 January 2006. If negotiation fails. The protest must be filed within seven (7) calendar days from receipt by the party concerned of the resolution of the BAC denying its motion for reconsideration. . 9184 any. and in conspicuous place within the premises of the procuring entity. With respect to item (d) of Section 53 of the Act and this IRR-A. the terms “adjacent” and “contiguous” shall be considered synonymous and shall mean that the projects concerned shall be in actual physical contact with each other. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the heads of the procuring entities concerned.3 of this IRR-A. in case of consulting services. With respect to item (h) of Section 53 of this IRR-A. or curriculum vitae. A protest may be made by filing a verified position paper with 63 64 As amended by GPPB Resolution 004-2006. That the procurement of common-use goods and supplies shall be undertaken through the PS-DBM. and negotiation shall be made starting with the lowest bidder. however. the period for posting required therein may be waived by the procuring entity concerned.Implementing Rules and Regulations of Republic Act No.1. contractors or consultants of known qualifications which will be invited to submit proposals. 99 Ibid. That a prior motion for reconsideration should have been filed by the party concerned within the reglementary periods specified in this IRR-A. then negotiation shall be done with the third lowest calculated bidder at his original price. published in the Philippine Star on 09 September 2006. Decisions of the BAC with respect to the conduct of bidding may be protested in writing to the head of the procuring entity: Provided. a direct negotiation may be made with the Government agency concerned: Provided. With respect to item (e) of Section 53 of the Act and this IRR-A.

however.e. Section 58. The regional trial court shall have jurisdiction over final decisions of the head of the procuring entity. Section 57. 58. A brief statement of facts. and Such other matters and information pertinent and relevant to the proper resolution of the protest. branches. and results to the outright dismissal of the protest.Implementing Rules and Regulations of Republic Act No. That protests must first be resolved before any award is made. An unverified position paper shall be considered unsigned. accompanied by the payment of a non-refundable protest fee. Section 56. The verified position paper shall contain the following information: a) b) c) d) e) f) g) The name of bidder. the decision of the local chief executive shall be final. Non-interruption of the Bidding Process In no case shall any protest taken from any decision treated in this Rule stay or delay the bidding process: Provided. constitutional commissions or instrumentalities of the Government to approve contracts. The issue to be resolved. Resolution of Protests The protests shall be resolved strictly on the basis of records of the BAC. Resort to Regular Courts. i. With respect to LGUs.2.1. 9184 the head of the procuring entity concerned. This provision is without prejudice to any law conferring on the Supreme Court the sole jurisdiction to issue temporary restraining orders and injunctions relating to Infrastructure Projects of Government. The non-refundable protest fee shall be in an amount equivalent to no less than one percent (1%) of the ABC. 100 . 55. produces no legal effect. The position paper is verified by an affidavit that the affiant has read and understood the contents thereof and that the allegations therein are true and correct of his personal knowledge or based on authentic records.2. Court action may be resorted to only after the protests contemplated in this Rule shall have been completed. Subject to the provisions of existing laws on the authority of Department Secretaries and the heads of agencies. The head of the procuring entity shall resolve the protest within seven (7) calendar days from receipt thereof. the decisions of the head of the procuring entity concerned shall be final up to the limit of his contract approving authority. Certiorari 58. The office address of the bidder. The implementing office/agency or procuring entity. resolved by the head of the procuring entity with finality. The name of project/contract. Court actions shall be governed by Rule 65 of the 1997 Rules of Civil Procedure.

that local suppliers availing of this option to denominate portion of its cost in foreign currency shall submit. distributors and contractors may denominate their bids in foreign currency. provided. distributors and contractors who do not engage in importation and therefore do not 101 . manufacturer. manufacturers. otherwise known as the "Arbitration Law": Provided. and may denominate and be paid in foreign and Philippine currencies. further.65 All contracts shall be denominated and payable in Philippine currency. That. 876. That subject to the guidelines issued by the GPPB. 9184 58. the relevant import documents as proof thereof.Implementing Rules and Regulations of Republic Act No. Contract Prices 61. The petition shall raise pure questions of law and shall be governed by the Rules of Court. In the event of failure to submit said documents within a reasonable period of time as determined by the procuring entity.1. RULE XIX – CONTRACT PRICES AND WARRANTIES Section 61. further. distributor or contractor specific to the procurement contract and undertaken within the contract implementation period. the parties may agree in writing to resort to other alternative modes of dispute resolution. the procuring entity may provide in the bidding documents that obligations may be paid in foreign currency66. dated 12 September 2005. payment shall be made in Philippine currency based on the exchange rate at the time of bid opening. and therefore not subject to price escalation during contract implementation. all bid prices shall be considered as fixed prices. Section 60. except under extraordinary circumstances and upon prior approval of the GPPB. For the given scope of work in the contract as awarded. Provided. as a pre-requisite for payment. (2) Local suppliers. manufacturers. however. manufacturers. by mutual agreement. That 65 66 Refer to Appendix B for the Guidelines on Contract Price Escalation. distributors and contractors shall denominate their bids in Philippine currency except where they engage in importation and their goods have import content in which case the bidder. import documents shall be those used in the importation by the supplier. Arbitration Any and all disputes arising from the implementation of a contract covered by the Act and this IRR-A shall be submitted to arbitration in the Philippines according to the provisions of Republic Act No. the following guidelines govern payment in foreign currency: (1) Foreign suppliers. RULE XVIII – SETTLEMENT OF DISPUTES Section 59. (3) For purposes of the immediately preceding rule. Per GPPB Resolution 017-2005. (4) Local suppliers. Contracts with said parties may be denominated and paid in foreign currency. shall disaggregate the cost components into foreign and local costs. disputes that are within the competence of the Construction Industry Arbitration Commission to resolve shall be referred thereto. and this shall be stated in the bidding documents: Provided. however. The head of the BAC Secretariat of the procuring entity concerned shall ensure that the GPPB shall be furnished a copy of the cases filed in accordance with this Section. That.3. Appeals The arbitral award and any decision rendered in accordance with the foregoing Section shall be appealable by way of a petition for review to the Court of Appeals. in his bid. The process of arbitration shall be incorporated as a provision in the contract that will be executed pursuant to the provisions of the Act and this IRR-A: Provided.

dated 08 May 2006. 102 . Their contract shall be denominated and be paid wholly in Philippine peso. have import contents in their bids. and one (1) year. Cash deposit. NEDA shall only respond to such request after receiving the proof and the necessary documentation.1. shall denominate their bids wholly in Philippine currency. as well as the works. equipment. and the public at large. in the case of equipment. however. Section 62.Implementing Rules and Regulations of Republic Act No. That the goods supplied are free from patent and latent defects and all the conditions imposed under the contract have been fully met. after performance of the contract. and convenience of his personnel. a warranty shall be required from the contract awardee for a minimum period of three (3) months.2. 67 As amended by Memorandum Order No. installation and the like to be affected by his construction work and shall be required to put up a warranty security in the form of cash.3. or distributor. 9184 should the procuring entity receive bids denominated in foreign currency. protection. bank guarantee. in order to assure that manufacturing defects shall be corrected by the supplier. The contractor shall be fully responsible for the safety. For the procurement of goods. third parties. Any request for price escalation under extraordinary circumstances shall be submitted by the concerned entity to the National Economic and Development Authority (NEDA) with the endorsement of the procuring entity. Bank guarantee Minimum Amount in % of Total Contract Price Five percent (5%) Ten percent (10%) 62. For the procurement of infrastructure projects. For purposes of this Section. manufacturer. 61. in accordance with the following schedule: Form of Warranty 1. as the case may be. letter of credit. 213. and upon the recommendation of the procuring entity concerned. Warranty 62. security. published in the Manila Times on 12 May 2006. or a special bank guarantee equivalent to at least ten percent (10%) of the total contract price. The burden of proving the occurrence of extraordinary circumstances that will allow for price escalation shall rest with the entity requesting for such escalation.67 61. “extraordinary circumstances” shall refer to events that may be determined by the NEDA in accordance with the Civil Code of the Philippines. cash bond or letter of credit 2. The said amounts shall only be released after the lapse of the warranty period: Provided. in the case of supplies. the contractor shall assume full responsibility for the contract work from the time project construction commenced up to final acceptance by the government and shall be held responsible for any damage or destruction of the works except those occasioned by force majeure. the same shall be converted to Philippine currency based on the exchange rate prevailing on the day of the bid opening for purposes of bid comparison and evaluation. GSIS or surety bond callable on demand. The obligation for the warranty shall be covered by either retention money in an amount equivalent to at least ten percent (10%) of every progress payment.2.

2.2. ports.2. pedestrian overpass. 176. and shall be returned only after the lapse of the said warranty period. Surety bond Thirty percent (30%) The warranty security shall be stated in Philippine Pesos. at his own expense. 9184 3.68 62. published in the Official Gazette on 29 August 2005. and renewable every year thereafter. shall remain effective during the applicable warranty period provided in Section 62. transmission and communication towers.2. or masonry construction). The defects liability period for infrastructure projects shall be one year from project completion up to final acceptance by the Government.1. 103 . dikes. filtration and treatment plants. steel and concrete bridges. concrete roads. power plants. wharves. flyovers. In case of failure or refusal to comply with this mandate.Implementing Rules and Regulations of Republic Act No. except those occasioned by force majeure and those caused by other parties: a) Permanent Structures: Fifteen (15) years Buildings of types 4 (steel. concrete. piers. of any damage to the infrastructure projects on account of the use of materials of inferior quality within ninety (90) days from the time the head of the procuring entity has issued an order to undertake repair. b) Semi-Permanent Structures: Five (5) years Buildings of types 1 (wooden). municipal ports and river landing. the contractor shall undertake the repair works. concrete aircraft movement areas. river control. dams. After final acceptance of the project by the Government. or masonry construction with walls. the Government shall undertake such repair works and shall be entitled to full reimbursement of expenses incurred therein upon demand. the contractor shall be held responsible for structural defects and/or failure of the completed project within the following warranty periods from final acceptance. ceilings. Any contractor who fails to comply with the preceding paragraph shall suffer perpetual disqualification from participating in any public bidding and his property or properties shall be subject to attachment or garnishment proceedings to recover the costs. iron. and permanent partitions of incombustible fire resistance) and 5 (steel.2 hereof. concrete.and c) Other Structures: Two (2) years 68 As amended by Memorandum Order No. and other similar structures. railway system. drainage. diversion tunnels. 62. iron. and other similar structures. sewerage systems. dated 27 June 2005. irrigation and drainage canals. All payables of government in his favor shall be offset to recover the costs. on a straight line basis. causeways. subject to depreciation after the first year. The warranty shall be full for the first year. and 3 (masonry and wood construction). 2 (wood with 1 hour fire resistance). deep wells. rock causeway. During this period. asphalt roads.

shallow wells. underground cables and electrical wires. of expenses incurred therein upon demand. Users . 9184 Bailey and wooden bridges. Third Parties . 62. then the user concerned shall be held liable. The term “Structural Failures” is defined as an occurrence where one or more key structural elements in an infrastructure facility fails or collapses.Third Parties shall be held liable in cases where structural defects/failures are caused by work undertaken by them such as leaking pipes. in which case the applicable warranty to such structure should be levied to third parties for their construction or restoration works. and any violation of the contract plans & specifications.2.In cases where structural defects/failures are due to abuse/misuse by the end user of the constructed facility and/or non– compliance by a user with the technical design limits and/or intended purpose of the same. and/or endangering the safety of the users or the general public. Consultants – Where structural defects and/or failures arise due to faulty and/or inadequate design and specifications as well as construction supervision.Implementing Rules and Regulations of Republic Act No. 62. and/or criminal charges against the responsible persons 104 . and supervisor(s) shall be held liable in cases where the structural defects/failures are due to his/their willful intervention in altering the designs and other specifications. mining shaft and the like. the following persons/parties shall be held liable: a) Contractor – Where structural defects and/or failures arise due to faults attributable to improper construction use of inferior quality/substandard materials. project manager.4. then the consultant who prepared the design or undertook construction supervision for the project shall be held liable. diggings/excavations. construction manager. In cases where structural defects and/or failures arise during the warranty period. the contractor shall be held liable. and the use of substandard construction materials in the project.2. In case of structural defects/failure occurring during the applicable warranty period provided in Section 62. underground tunnel. without prejudice to the filing of appropriate administrative. and other similar structures. the Government shall undertake the necessary restoration or reconstruction works and shall be entitled to full reimbursement by the parties found to be liable. b) c) d) e) For purposes of this section. civil. thereby rendering the facility or part thereof incapable of withstanding the design loads.2. negligence or omission in not approving or acting on proposed changes to noted defects or deficiencies in the design and/or specifications. the term “Structural Defects” shall mean major faults/flaws/deficiencies in one or more key structural elements of the project which may lead to structural failure of the completed elements or structure. spring developments.2 hereof. Procuring Entity’s Representatives/Project Manager/Construction Managers and Supervisors – The project owner’s representative(s).3.

To prepare a generic procurement manual and the standard bidding forms for procurement. The GPPB Technical Support Office The GPPB shall create a Technical Support Office (TSO) which shall provide support in the performance of its duties and responsibilities specified in the Act and this IRR-A. and amend. To ensure the proper implementation by procuring entities of the Act. having due regard to the country’s regional and international obligations. subject to DBM approval.3. The GPPB shall determine the TSO’s organizational structure and staffing. The TSO shall provide research. 63. Organization and Functions 63.2. 105 . To conduct an annual review of the effectiveness of the Act and recommend any amendments thereto. shall have the following duties and responsibilities: a) To protect national interest in all matters affecting public procurement. technical and administrative support to the GPPB. 63. 9184 as well as the forfeiture of warranty securities posted in favor of the Government. as may be necessary. including: a) b) Research based procurement policy recommendations and rule-drafting. The Government Procurement Policy Board (GPPB).Implementing Rules and Regulations of Republic Act No. The TSO shall be headed by an Executive Director of good moral character. this IRR-A and all other relevant rules and regulations pertaining to public procurement. Development and updating of generic procurement manuals and standard bidding forms. To formulate and amend public procurement policies. rules and regulations. To establish a sustainable training program to develop the capacity of Government procurement officers and employees. whenever necessary. RULE XX – THE GOVERNMENT PROCUREMENT POLICY BOARD Section 63. b) c) d) e) f) The GPPB shall be under the administrative supervision of the DBM for general oversight and for budgeting purposes. and to ensure the conduct of regular procurement training programs by and for procuring entities.1. as established in Section 63 of the Act. unquestionable integrity and known probity. this IRR-A.

A. or their duly authorized representatives and a representative from the private sector to be appointed by the President upon the recommendation of the GPPB. Education. Monitoring the compliance to the Act and assisting procuring entities improve their compliance. Science and Technology. 359. as Alternate Chairman. the screening for eligibility. without justifiable cause. Opening any sealed Bid including but not limited to Bids that may have been submitted through the electronic system and any and all documents required to be sealed or divulging their contents. Trade and Industry. and Energy. All functions related to procurement policy-making of the Infrastructure Committee of the NEDA Board are transferred to the GPPB. and awarding of contracts beyond the prescribed periods of action provided for in this IRR-A. 2. functions and responsibilities of the Procurement Policy Board created under Executive Order No. The GPPB may invite a representative from the COA to serve as a resource person. opening of bids. Membership The GPPB shall be composed of the Secretary of the Department of Budget and Management. Section 64. Delaying. Finance. Monitoring the implementation and effectiveness of the G-EPS. and Secretariat support. RULE XXI – PENAL CLAUSE Section 65. 3019 and other penal laws.4. In addition to the powers granted under the Act and this IRR-A. Health. Transportation and Communications. public officers who commit any of the following acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day. the Secretaries of the Departments of Public Works and Highways. prior to the appointed time for the public opening of Bids or other documents. 9184 c) d) e) f) g) 63. 106 . Evaluation of the effectiveness of the government procurement system and recommendation of improvements in systems and procedures.Implementing Rules and Regulations of Republic Act No. with the following as Members. but not more than fifteen (15) years: 1. as Chairman. the Director-General of NEDA. Interior and Local Government. Management and conduct of training on procurement systems and procedures. series of 1989. evaluation and post evaluation of bids.1. Offenses and Penalties 65. National Defense. Without prejudice to the provisions of R. the GPPB shall absorb all the powers.

In addition. and any public officer who conspires with them. 3. and any public officer conspiring with them. the private individuals shall likewise be liable for the offense. 5. all the while knowing that the bid(s) of one or more of them was so much higher than the other that the latter could not be honestly accepted and that the contract will surely be awarded to the prearranged lowest bid. suffer the penalty of imprisonment 107 . 9184 3. while the private individual shall be permanently disqualified from transacting business with the Government. Private individuals who commit any of the following acts. 4. suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years: 1. When two or more bidders agree and submit different bids as bona fide.3. 65. When a bidder maliciously submits different bids through two or more persons. In addition. 4. 2. When any of the foregoing acts is done in collusion with private individuals. by himself or in connivance with others. partnerships or any other business entity in which he has an interest to create the appearance of competition that does not in fact exist so as to be adjudged as the winning bidder. with manifest preference to any bidder who is closely related to him in accordance with Section 47 of the Act and this IRR-A. shall upon conviction. Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of the procuring entity to take a particular action which favors. the public officer involved shall also suffer the penalty of temporary disqualification from public office. in order to secure an undue advantage to any one of them. bidders. Splitting of contracts which exceed procedural purchase limits to avoid competitive bidding or to circumvent the limits of approving or procurement authority. Abuse by the head of the procuring entity of his power to reject any and all bids as mentioned under Section 41 of the Act and this IRR-A.Implementing Rules and Regulations of Republic Act No. shall upon conviction. When a bidder. corporations. employs schemes which tend to restrain the natural rivalry of the parties or operates to stifle or suppress competition and thus produce a result disadvantageous to the public. When two or more bidders enter into an agreement which calls upon one or more of them to refrain from bidding for procurement contracts. the public officer persons involved shall also suffer the penalty of temporary or perpetual disqualification from public office and the private individual shall be permanently disqualified from transacting business with the Government. Private individuals who commit any of the following acts. or which requires one or more of them to withdraw Bids already submitted. or tends to favor a particular bidder. 65.2.

Submitting Bidding Documents of whatever kind and nature that contain false information or falsified documents or conceal such information in the Bidding Documents. or refuse to accept an award. 2. 108 . at the discretion of the courts. criminal liability and the accessory penalties shall be imposed on its directors. It is understood that the above penalties and offenses shall cover all types of procurement whether done manually or electronically. 3019 shall carry with it civil liability. or delaying the submission of requirements such as. 3. Jurisdiction Jurisdiction over the offenses defined under this Rule shall belong to the appropriate courts. 4. Submitting eligibility requirements of whatever kind and nature that contain false information or falsified documents calculated to influence the outcome of the eligibility screening process or conceal such information in the eligibility requirements when the information will lead to a declaration of ineligibility from participating in public bidding. officers or employees who actually commit any of the foregoing acts. RULE XXII – CIVIL LIABILITY Section 67. This shall include the non-submission within the prescribed time. a conviction under the Act and this IRR-A or R. 65. after it shall have qualified as the Lowest Calculated Bid/Highest Rated Bid. If a person previously held liable or found guilty under the provisions of the Act and this IRR-A has a controlling interest in a prospective bidder-entity the said bidder-entity shall be disqualified to participate in any procurement activity being conducted by the Government. 9184 of not less than six (6) years and one (1) day but not more than fifteen (15) years: 1. Withdrawing a Bid. according to laws existing at the time of the commission of the offenses. in order to influence the outcome of the public bidding.Implementing Rules and Regulations of Republic Act No. preparatory to the final award of the contract. Civil Liability in Case of Conviction Without prejudice to administrative sanctions that may be imposed in proper cases. which may either consist of restitution for the damage done or the forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both. Section 66. Participating in a public bidding using the name of another or allow another to use one’s name for the purpose of participating in a public bidding. without just cause or for the purpose of forcing the Procuring Entity to award the contract to another bidder. 65. When the bidder is a juridical entity.A. but not limited to. performance security.4.5.

the amount of the liquidated damages shall be in accordance with Annex “E. 9184 Section 68. Imposition of Administrative Penalties 69.1%) of the cost of the unperformed portion for every day of delay.” Once the cumulative amount of liquidated damages reaches ten percent (10%) of the amount of the contract. after he had been adjudged as having submitted the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. Refusal or failure to post the required performance security within the prescribed time. Liquidated Damages All contracts executed in accordance with the Act and this IRR-A shall contain a provision on liquidated damages which shall be payable in case of breach thereof. subject to the authority delegated to the BAC.Implementing Rules and Regulations of Republic Act No. as well as disqualification from further participating in the public bidding being undertaken by the procuring entity concerned. For the procurement of infrastructure projects. 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. or refusal to accept an award. In addition to the provisions of Rules XXI and XXII of this IRR-A. the administrative penalty of suspension for one (1) year for the first offense. 6. Submission of Bids that contain false information or falsified documents. 5. without prejudice to other courses of action and remedies open to it. Termination of the contract due to the default of the bidder. Allowing the use of one’s name. For the procurement of goods and consulting services. Submission of eligibility requirements containing false information or falsified documents. or using the name of another for purposes of public bidding. or enter into contract with the Government without justifiable cause. 109 . the procuring entity shall rescind the contract. 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. the amount of the liquidated damages shall be at least equal to one-tenth of one percent (0. if any. the head of the procuring entity. Withdrawal of a bid.1. 2. for the following violations: 1. shall impose on bidders or prospective bidders. 7. 4. and suspension of two (2) years for the second offense from participating in the public bidding process. where applicable. 3. RULE XXIII – ADMINISTRATIVE SANCTIONS Section 69.

4. or consultants for Government projects shall be undertaken in accordance with the guidelines to be issued by the GPPB. 69 Refer to Appendix C for the Uniform Guidelines for Blacklisting of Manufacturers. 69. In addition to the penalty of suspension. due process as mandated by the Constitution and Civil Service laws. such as an eligible contractor not buying bid documents. Private Legal Assistance All the members of the BAC are hereby authorized to engage the services of private lawyers or external counsel immediately upon receipt of Court Notice that a civil or criminal action. shall be strictly observed. contractors. otherwise known as the Administrative Code of 1987. except for valid reasons. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor. and contractors habitually withdrawing from bidding or submitting letters of nonparticipation for at least three (3) times within a year. 110 . Section 71. the Bid Security or the Performance Security posted by the concerned bidder or prospective bidder shall also be forfeited. Lifting of Suspension and Removal of Administrative Disabilities Lifting of preventive suspension pending administrative investigation. Book V of Executive Order No.3. Title I. 69.Implementing Rules and Regulations of Republic Act No. 9.2. rules and regulations. All other acts that tend to defeat the purpose of the competitive bidding. Subtitle A (Civil Service Commission). Distributors. RULE XXIV – LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS Section 72. distributors. Suppliers. 292. The procedures for the blacklisting of manufacturers. as well as removal of administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53. 69. all existing blacklisting guidelines and reports of the Government or any of its procuring entity shall continue to remain in force. Contractors and Consultants. In all cases. The head of the procuring entity may delegate to the BAC the authority to impose the aforementioned administrative penalties. the substantive and procedural due process under its justice system shall be applied. Preventive Suspension The head of the procuring entity may preventively suspend any member of the Technical Working Group or the Secretariat. For uniformed personnel of the AFP. or the BAC if there are strong reasons or prima facie evidence showing that the officials or employees concerned are guilty of the charges filed against them under Rules XXI and XXII of this IRR-A or for dishonesty as defined by the Civil Service Laws. suppliers. Section 70.69 Pending the issuance of the guidelines by the GPPB. 9184 8. Chapter 6.

As the need arises. Indemnification of BAC Members 73. RULE XXV – FINAL PROVISIONS Section 74.3. shall also be entitled to medical assistance for injuries incurred in the performance of their functions. or have been made. Section 73. indemnification shall be confined only on matters covered by the settlement.1. such as the members of the TWG and the BAC Secretariat. 262. 40. unless they are finally adjudged in such action or proceeding to be liable for gross negligence or misconduct or grave abuse of discretion.” Executive Order No. 74. Government-Owned or -Controlled Corporations and/or Government Financial Institutions. entitled "Amending 70 Refer to Appendix K for the Guidelines for Legal Assistance and Indemnification of Bids and Awards Committee (BAC) Members and its Support Staff. subject to the provisions of Section 73 of the Act and this IRR-A. this IRR-A may be recommended for amendment by the GPPB jointly with the members of the Oversight Committee. a party by reason of the lawful performance of their official functions and duties. costs.O. and other forms of protection and indemnification for all reasonable fees. subject to Section 74 of the Act.Implementing Rules and Regulations of Republic Act No. which may be in the form of free legal assistance.70 In the event of a settlement or compromise. 111 . The lawyer's fee shall be part of the indemnification package for the BAC members. 9184 suit or proceeding is filed against them in connection with the lawful performance of their official functions and duties as BAC members. and expenses incurred by such persons in connection with any administrative. The members of the BAC and its support staff. Amendment 74. 73. series of 2000. For purposes of this IRR-A.2. Any amendment to this IRR-A shall be applicable to all procurement activities.1. such as the members of the TWG and the BAC Secretariat. civil or criminal action. suit or proceeding to which they may be. the advertisement or invitation of which were issued after the effectivity of the said amendment. Section 75. Repealing Clause The Act repeals E. liability insurance.2. for approval by the President of the Philippines. and Requiring the Use of the Government Electronic Procurement System. or otherwise held liable or guilty of the complaints or charges. The GPPB shall establish an equitable indemnification package for public officials providing services in and for the BAC. as to which the procuring entity had been advised by counsel that the public officials to be indemnified have not committed gross negligence or misconduct or grave abuse of discretion in the performance of their functions and duties. the BAC members shall be understood to include its support staff. entitled “Consolidating Procurement Rules and Procedures for All National Government Agencies. 73.

A.A. 302. or other applicable laws. 7160 and its IRR.D. entitled “An Act Providing for the Modernization of the Armed Forces of the Philippines and for Other Purposes. P. Section 76.D. proclamation. the relevant provisions of Executive Order No. in furtherance thereto. or application of such provision to any circumstance. Book One of the same law. is declared invalid or unconstitutional. 7160 (R. Guidelines.O. P." Executive Order No. 40 and its IRR. Section 78. 7160 and its IRR. series of 2000. 1995. modified or amended accordingly. entitled "Providing Additional Guidelines in the Processing and Approval of Contracts of the National Government. Separability Clause If any provision in this IRR-A. as the case may be. if the advertisement or invitation for bids was issued prior to the effectivity of the Act. Effectivity Clause This IRR-A shall take effect fifteen (15) calendar days after its publication in the Official Gazette or in a newspaper of general nationwide circulation." and the relevant provisions of Republic Act No. rule or regulation and/or parts thereof contrary to or inconsistent with the provisions of the Act is hereby repealed. otherwise known as the “Local Government Code of 1991. the other provisions not affected thereby shall remain valid and subsisting. Title One. series of 1996. Three (3) of Executive order No. Guidelines.A. 302. entitled "Providing Polices. Transitory Clause In all procurement activities. 1594 (P. presidential decree or issuance. Book Two of Republic Act No. charter. Rules and Regulations for Government Infrastructure Contracts. or other applicable laws. Rules and Regulations for the Procurement of Goods/ Supplies by the National Government" and Sec." and. R.” This law amends Title Six.O. letter of instruction. 40 and its IRR. Rules and Regulations for the Procurement of Goods/Supplies by the National Government" and Presidential Decree No. 1594). the provisions of E. 201." Any other law. 7898 dated February 23. dated June 11. Guidelines. procuring entities may continue adopting the procurement procedures.Implementing Rules and Regulations of Republic Act No. as the case may be. entitled "Providing Additional Policies and Guidelines in the Procurement of Goods/Supplies by the National Government. rules and regulations provided in E.D. 164. series of 1996. R. series of 1987. entitled “Prescribing Policies. Section 77. In cases where the advertisements or invitations for bids were issued after the effectivity of the Act but before the effectivity of this IRR-A. Chapter Five. 112 . executive order. 1594 and its IRR. 9184 Executive Order No. 1978. administrative order. 1594 and its IRR. entitled "Providing Policies. 7160). shall govern.

monumenting and other surveys shall be carried out in accordance with the design guidelines. including their effects on the cost. specific recommendations for such changes shall be supported by detailed justifications. All survey and investigation works shall be prepared in a manner satisfactory to carry out accurate design and production of plans. in the course of this exercise. 2. the following: a) Design Standards – Design standards shall be in accordance with appropriate standards and accepted detailed engineering practice adopted by the agency concerned. hydrologic. The findings contained in the feasibility study. but not necessarily be limited to. 9184 Annex “A” ANNEX “A” DETAILED ENGINEERING FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS 1. if undertaken for the project. among other things. Design standards for structures shall take into account. b) 113 . criteria and standards adopted by the agency concerned. If. Detailed engineering shall proceed only on the basis of the feasibility or preliminary engineering study made which establishes the technical viability of the project and conformance to land use and zoning guidelines prescribed by existing laws. the seismicity of the area to determine the optimum safety of structures and to minimize possible earthquake damage. as proposed. shall be examined. hydrographic.Implementing Rules and Regulations of Republic Act No. sub-surface. Field Surveys And Investigations – Necessary field surveys and investigations which may include aerial. A schedule of detailed engineering activities shall include the following: a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) Survey Site Investigation Soils and Foundation Investigation Construction Materials Investigation Preparation of Design Plans Preparation of Technical Specifications Preparation of Quantity and Cost Estimates Preparation of Program of Work Preparation of Proposed Construction Schedule (and estimated Cash Flow for projects with Schedule over Six (6) Months) Preparation of Site or Right-of-Way Plans including Schedule of Acquisition Preparation of Utility Relocation Plan Preparation and Submission of Design Report Environmental Impact Statement for critical project as defined by the Department of Environment and Natural Resources (DENR) Preparation of minimum requirements for a Construction Safety and Health Program for the project being considered Preparation of Bid/Tender Documents 3. it is found that changes would be desirable in the design standards of principal features. Work under detailed engineering shall include. and (if necessary) the economic justification. topographic.

The approved budget for the contract to be bid shall specify for each major work item. In no construction funds be remitted to field offices or construction project be started before the program of work is approved. incorporating at least the following: (i) (ii) (iii) (iv) (v) (vi) Site development plan Plans and profile sheet Typical sections and details Drainage details where applicable Structural plans at appropriate scales indicating all details necessary in order that the complete structure can be set out and constructed Other details which may be required by the head of the agency d) e) Quantities – All construction quantities shall be computed to a reasonable accuracy of plus or minus ten percent (10%). measurement and payment under each contract. labor. divided into local and foreign exchange costs. the necessary work shall be prepared and submitted for approval.Implementing Rules and Regulations of Republic Act No. Program of Work – Before prosecuting any project. which are not covered by Standard Construction and Material Specifications adopted by the procuring entity concerned. materials and overhead. fuel. f) g) h) i) Bidding Documents as provided for in the IRR. Unit Prices – These shall be prepared for each contract using costs based on reasonable approved current prices as projected over the proposed construction period. including the cost of the approved construction safety and health program and warranty premium. program of case shall work on a accordance 114 . the components for equipment rentals. It shall be approved by the head of the procuring entity or his duly designated official. It shall also show the local and foreign currency requirements. and massive concreting. Special Provisions – Specifications shall be prepared for specific terms of work or methods of construction. in with existing laws. Since the contracts are fixed price contracts. 9184 Annex “A” c) Contract Plans – The following plans shall be prepared for each construction contract in accordance with guidelines and standards adopted by the procuring entity concerned. Approved Budget for the Contract – the approved budget for the contract to be bid shall be prepared by official(s) duly designated by the head of the procuring entity concerned or by his duly authorized official. as the case may be. the approved budget for the contract to be bid shall provide for the projected movements of construction costs over the construction period considering the projected inflation and foreign exchange rates as issued by the Development Budget Coordination Committee (DBCC). roadwork. as the case may be. such as earthwork.

j) In the preparation of the bidding documents. and shall be made the basis of the total contract time. However. in which case continuity of construction up to the completion of a usable portion must be assured. quantities and costs and a PERT/CPM network of the project activities. The program of work shall cover at least a usable portion of the project and no construction shall be started for portions of the project that are less than usable. Likewise. as prescribed by the head of the appropriate infrastructure agency and approved by the Infrastructure Committee of the National Economic and Development Authority Board. 9184 Annex “A” No program of work for any project shall be approved without detailed engineering. the contract time is presumed to have excluded the unfavorable conditions. the bidding documents shall specify the type of project and the corresponding warranty period required by the procuring entity. detailed engineering works shall be conducted in accordance with the guidelines and procedures. the agency shall make an estimate of the number of rainy/unworkable days considered unfavorable for the prosecution of the works at the site. except projects requiring stage construction. while maintaining the safety and integrity of the structure. estimates of the work. the agency shall make an estimate of the actual number of working days required to complete the project through PERT/CPM analysis of the project activities and corrected for holidays and weekends. among other things. which shall be indicated in the tender documents. Without the estimated number of rainy/unworkable days established before the bidding date and known to all participating bidders.Implementing Rules and Regulations of Republic Act No. items. The program of work shall include. Likewise. under emergency or extraordinary cases involving major calamities and disasters as declared by the President where time is of the essence to save lives and properties and restore damaged infrastructures. k) 4. The above rules shall apply to the implementation of infrastructure projects under normal or ordinary conditions. 115 . The estimated number of rainy/unworkable days considered unfavorable for the prosecution of the works at the site shall be made known before the date of bidding through the Instructions to Bidders for the purpose of guiding both the government and winning contractors in the request for an approval of time extensions. and incorporate the same in the corrected actual number of working days determined above. to enable quick response to said cases.

as well as management. This type of services normally consists of three (3) phases: a) Pre-Design Phase – establishes the general size and scope of the project and its location on the site. Advisory and Review Services. Pre-Investment or Feasibility Studies. layouts. outline specifications. working drawings. These are the studies which normally precede decisions to go (or not to go) forward with specific projects. and in preparing b) c) 116 . basic resource inventories. among others.Studies for this objective include. testing and quality control. and management systems. administrative problems. These services include advice on particular projects or problems. among others. tabulation and analysis of bid results. These will include advice on and review of. The services include but are not limited to reconnaissance. production. To determine the basic features and the feasibility of individual projects Studies for this objective include. such as. and studies of alternative development patterns and of sectors on a regional or nationwide scale. topographical and other engineering and land surveys. operations and institutions necessary for the successful implementation or functioning of investment projects . manpower resources and training requirements. specifications. among others. boards or other judicial bodies to give evidence or otherwise submit professional opinions.Implementing Rules and Regulations of Republic Act No. planning. 2. project site selection. 9184 Annex “B” ANNEX “B” TYPES OF CONSULTING SERVICES 1. preliminary cost estimates and specific recommendations prior to actual design. analysis of project related organizations. the functional design. soils investigations. Design. transport sector surveys. Basic Design Phase – includes the preparation of detailed plans.Studies for this objective include. regulatory and marketing policies. and the economic. detailed cost estimates and tender documents required for invitations of bids for construction works and equipment. financial and environmental impact analyses required for project evaluation. designs. inspection. among others. river basin surveys. These studies may have as their objectives: a) To establish investment priorities and sector policies . b) c) 3. preparation of preliminary architectural/engineering designs. and Support Services During Construction – includes assistance and advice in securing bids. To define and propose changes in governmental policies. accounting. planning machinery. design and other professional services. architectural and space programming and physical layout of specific projects. They also include such services as appearances before commissions. and making recommendations on the award of construction contracts. preliminary design and cost estimates.

5. and productivity improvement. information systems design and development. superintendence or management of construction. and Provision of record or as-built drawings of the completed projects. Marketing management and systems. checking detailed construction and as-built drawings. These include the following: a) b) Inspection and expediting of the work. specifications. training and technology transfer. including procurement advisory services. Management and Related Services. Issuance of instruction for corrections of defects on the work. economic. including but not limited to. Construction Supervision. and programs of work. and network design and installation. Production management. observing performance tests and start-up and making report thereon. preparation of supplementary drawings required to suit actual field conditions. These may include the following: a) b) c) d) e) f) Sector policy and regional development studies. and development. 4. and post-evaluation services. financial. inventory control. Planning. manpower g) h) 117 . operations and sociological studies. Information and communications technology services. Review and recommendation for approval of progress and final billings of the contractor. General management consultancy.Implementing Rules and Regulations of Republic Act No. impact monitoring. shop and erection drawings submitted by contractors. Project management. and making a final inspection and reporting of completed project. Verification and checking of quantities and qualities of work accomplished by the contractor as against the approved plans. c) d) e) f) The above do not mean direction. Verification and recommendation for approval of statements of work accomplished and certificate of project completed by the contractor. market. Institutional strengthening. 9184 Annex “B” formal contract documents. feasibility. organization requirements. technical. making periodic visits to check on the general progress of work and quality of materials and workmanship.

Investigation involving detailed consideration of the operation. The Technical Services may include the following: a) b) c) d) Institution building. and business process re-engineering and development . Detailed mill. and overhead expenses. appraisals. Provision of staff to carry out certain functions and to train their replacements. Studies. Engineering surveys (for design and construction) and photogrammetry. Land surveys.Implementing Rules and Regulations of Republic Act No. Design and execution of training programs at different levels. and related office computations and drafting. Parcellary surveys. and Tasks relating to economic and financial studies such as those of tariff structures. Other Technical Services or Special Studies. maintenance. The Special Studies may include the following and other studies not covered under any of the services and studies described above: a) b) c) d) e) f) g) h) Soils investigation. shop. and the preparation of rate schedules. establishment of boundaries and monuments. tests and process determination performed to establish design criteria for water facilities. feasibility studies. and/or laboratory inspection of materials and equipment. including organization and management studies. Assistance in litigation arising from the development or construction of projects and in hearings before various approving and regulatory agencies. and material audits or inventories required for certification of force account construction performed by the agencies. 6. Preparation of environmental statements and assistance to the agencies in public hearings. Preparation of operating instructions and manuals for facilities and training of personnel and assistance in initial operation of facilities. 9184 Annex “B” i) Other related services. evaluations. i) j) 118 . earning and expense statements.

tornadoes. Housing. cultural. or blasts. Site and physical planning.Implementing Rules and Regulations of Republic Act No. or satisfy unique or abnormal tolerances. 119 . l) m) n) o) p) q) r) s) Technology and knowledge transfer should be considered an important objective in the provision of consulting services. Environmental and other aspects of planning. including self-reliance defense program. Interior design. safety requirements. etc. and Defense systems design. Studies on preservation and restoration of historical. and artworks. 9184 Annex “B” k) Designs to meet unique and/or above normal requirements brought about by severe earthquakes.. Landscaping. Construction management.

ANNEX “C” 7 cd 7 cd ACTIVITIES PERIOD OF ACTION ON PROCUREMENT 7 cd 7 cd MAXIMUM PERIODS Deadline 30 cd Within 7cd from the last day of posting n/a Refer to stage 6 3 cd Available for at least 7cd from the date of issuance 12 cd before the deadline of submission of bids 1 cd 10 cd before deadline of submission of bids 7 cd before the deadline of submission of bids 1 cd (includes eligibility check) 7 cd 1 cd 5 cd 1 cd 7 cd 1 cd 21 cd + 2 cd for approval of ranking n/a 7 cd 7 cd 7 cd 3 cd 10 cd 7 cd 1 cd 1 cd 1 cd 3 cd 7 cd 7 cd For ABC costing 50M and below 36 cd For ABC costing above 50M 50 cd 7 cd 20 cd Stage Activities Goods Civil Works Consulting Services 60 cd 1 Advertisement/Posting of IAEB 2 Letter of Intent 3 Eligibility Check for civil works and consulting services/Short listing for consulting services 4 Issuance and availability of bidding documents Implementing Rules and Regulations of Republic Act No. 9184 120 5 Pre-bid Conference Request for clarification Supplemental/Bid Bulletin 6 Submission and Opening of Bids 7 Bid Evaluation 8 Notification for Negotiation 9 Negotiation Annex “C” 10 Post-Qualification .

9184 121 Note: The periods indicated in the boxes are the maximum periods to be observed from the day of advertisement and/or 1st day of posting of the Invitation to Apply for Eligibility and to Bid up to opening of bids.MAXIMUM PERIODS Deadline For ABC costing 50M and below 7 cd 10 cd 15 cd 5 cd 2 cd 3 cd 15 cd 3 cd 10 cd 10 cd 4 cd 7 cd For ABC costing above 50M 7 cd 10 cd 15 cd 3 cd Stage Activities Goods Civil Works Consulting Services 11 Approval of Resolution/Issuance of Notice of Award 12 Contract Preparation and Signing 13 Approval of Contract by Higher Authority 14 Issuance of Notice to Proceed Total Maximum Periods 80 cd 70 cd 100 cd 139 cd Implementing Rules and Regulations of Republic Act No. Annex “C” .

) 1 cd (12 days before the submission of bids 1 cd (12 days before the submission of bids 1 cd (12 days before the submission of bids Request for Clarification Supplemental/Bid Bulletin 6 Submission and Opening of Bids 1 cd 1 cd 1 cd 1 cd + 1 cd for approval of ranking 1 cd 1 cd 7 Bid Evaluation 8 Notification for negotiation Annex “C” 9 Negotiation . 9184 122 5 Pre Bid Conference (Note: For goods. the pre-bid conference is conducted prior to eligibility check. 1 cd for short listing and 1 cd for notification) 7 cd 7 cd 4 Issuance and availability of bidding documents Implementing Rules and Regulations of Republic Act No.ANNEX “C” PERIOD OF ACTION ON PROCUREMENT ACTIVITIES Deadline Goods 7 cd Within 7 cd from the last day of posting n/a 7 cd 7 cd EARLIEST POSSIBLE TIME Civil Works Consulting Services 7 cd 7 cd Stage Activities 1 Advertisement/Posting of IAEB 2 Letter of Intent 3 Eligibility Check for civil works and consulting services/Short listing for consultants refer to stage 6 Available for at least 7 cd from the date of the issuance 12 days before the deadline of submission of bids 10 days before deadline of submission of bids 7 days before deadline of submission of bids 1 cd (includes eligibility check) 1 cd n/a refer to stage 1 1 cd 3 cd (1 cd for eligibility.

9184 123 Total Estimated Earliest Possible Time 28 cd 43 cd 48 cd Note: The procurement process from the opening of bids up to the award of contract shall not exceed three (3) months. All members of the BAC shall be on a “jury duty” type of assignment until the Notice of Award is issued by the head of the procuring entity in order to complete the entire procurement process at the earliest possible time. or a shorter period to be determined by the procuring entity concerned.Stage Goods 1 cd 1 cd 1 cd Civil Works Activities Deadline EARLIEST POSSIBLE TIME Consulting Services 10 Post-Qualification 11 Approval of Resolution/Issuance of Notice of Award 2 cd (1 cd for BAC Resolution and 1 cd for issuance of NOA) 2 cd (1 cd for BAC Resolution and 1 cd for issuance of NOA) 2 cd (1 cd for BAC Resolution and 1 cd for issuance of NOA) 12 Contract Preparation and Signing 2 cd (1 cd for contract preparation and 1 cd for contract signing) 1 cd 1 cd 1 cd 1 cd 2 cd (1 cd for contract preparation and 1 cd for contract signing) 2 cd (1 cd for contract preparation and 1 cd for contract signing) 1 cd 1 cd 13 Approval of Contract by Higher Authority 14 Issuance of Notice to Proceed Implementing Rules and Regulations of Republic Act No. Annex “C” .

9184 Annex “D” ANNEX “D” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF GOODS.1. That the corresponding amendment to order shall immediately be prepared and submitted for approval to the head of the procuring entity concerned or his duly authorized representative. an equitable adjustment in contract price and/or delivery schedule shall be mutually agreed upon between the parties concerned. 124 . Payments for these additional items shall be based on the unit prices in the original contract for items of goods similar to those in the original contract.3.71 1. If the contract does not contain any rate applicable to the additional items. or damage to life and/or property or when time is of the essence: Provided. SUPPLIES AND MATERIALS 1. further. As an exception to the rule. Amendment to Order 1. which were not included in the original contract. the Regional Director/Head concerned may authorize the immediate start of work under any amendment to order in the event of emergencies to avoid detriment to public service. Under no circumstances shall a supplier proceed to commence work under any amendment to order unless the same has been approved by the head of the procuring entity concerned or his duly authorized representative. dated 27 June 2005. design or specifications. That the same is valid only on items up to the point where the cumulative increase in the contract cost which has not yet been duly fully approved by the head of the procuring entity concerned or his duly authorized representative does not exceed five percent (5%) of the original contract cost: Provided. 176. if the goods to be furnished are to be specifically manufactured for the Government in accordance therewith. The contract time shall likewise be extended if the acquisition of such additional items so warrants. amendments to order may be issued at any time by the procuring entity concerned. Subject to the conditions set forth below. then suitable prices shall mutually be agreed upon between the parties. giving a detailed accounting and record of amount for which it claims payment. or place of delivery.2.Implementing Rules and Regulations of Republic Act No. Request for payment by the supplier for any additional items shall be accompanied by a statement with the approved supporting forms. however. published in the Official Gazette on 29 August 2005. For an amendment to order involving a cumulative amount exceeding five percent (5%) of the original contact price. and the contract modified in writing. If any such order increases or decreases the cost of. 1. no work 71 As amended by Memorandum Order No.4. or the time required for executing any part of the work under the original contract. method of shipment or packing. 1. An amendment to order may be issued only in emergency cases or during fortuitous events requiring necessary adjustments within the general scope of the contract in any one or more of the following is required in order to fully meet the requirements of the project: a) b) c) drawings. An amendment to order may also be issued by the concerned procuring entity where there are additional items needed and necessary for the protection of the goods.

as it deems necessary due to force majeure or any fortuitous events as defined in the contract. In no case shall the total sum of liquidated damages exceed ten percent (10%) of the total contract price.1. dated 19 May 2005. the said cumulative amount does not exceed ten percent (10%) of the original contract price. The supplier or consultant shall take all reasonable steps to minimize the costs allocable to the work covered by such order during work stoppage.4 of these guidelines.1.72 2. The procuring entity may suspend the work wholly or partly by written order for a certain period of time.3 and 4. published in the Official Gazette on 25 July 2005. an amount equal to one-tenth (1/10) of one percent (1%) of the cost of the delayed goods scheduled for delivery for every day of delay until such goods are finally delivered and accepted by the procuring entity concerned. When the supplier fails to satisfactorily deliver goods under the contract within the specified delivery schedule. 172. 3. That. Advance Payment74 4. or collected from any securities or warranties posted by the supplier. 2. in which event the procuring entity concerned shall automatically rescind the contract and impose appropriate sanctions over and above the liquidated damages to be paid. In accordance with Presidential Decree 1445. whichever is convenient to the procuring entity concerned. 9184 Annex “D” thereon shall be commenced unless the same has been approved by the head of procuring entity concerned or his duly authorized representative: Provided.2.Implementing Rules and Regulations of Republic Act No. the procuring entity concerned shall either lift such order or terminate the work covered by the same. if any. and the contract shall be modified accordingly. 3. 72 73 74 As clarified/corrected in GPPB Circular 02-2003. the supplier shall be liable for damages for the delay and shall pay the procuring entity liquidated damages. no prior approval by the President shall be necessary. or both.2. the supplier or consultant shall have the right to resume work. Appropriate adjustments shall be made in the delivery or contract schedule. As amended by Memorandum Order No. advance payment shall be made only after prior approval of the President. inclusive of duly granted time extensions. Liquidated Damages 3. or contract price. Provided. however. not by way of penalty. Suspension of Work 2. . dated 01 December 2003. If the suspension order is lifted. 125 Ibid. that for cases mentioned under 4. and shall not exceed fifteen percent (15%) of the contract amount. Before the suspension order expires.1. Such amount shall be deducted from any money due or which may become due to the supplier. unless otherwise directed by the President.73 4. or if the period of the order expires. The procuring entity need not prove that it has incurred actual damages to be entitled to liquidated damages.

Implementing Rules and Regulations of Republic Act No. Taxes and Duties. Lease of office space. Payment. Use of conference/seminar and exhibit areas. Advance payment not to exceed fifteen percent (15%) of the contract amount. Standards. Hotel and restaurant services. but not limited to. Other Rules and Guidelines The rules and regulations for the other aspects of contract implementation shall be included in the manuals to be issued by the GPPB. and 3. Inspections and Tests. 5. Packing. A single advance payment not to exceed fifty percent (50%) of the contract amount shall be allowed for contracts entered into by a procuring entity for the following services where requirement of down payment is a standard industry practice: 1. Delays in the Supplier’s Performance. unless otherwise directed by the President. Prices. Subcontracts. All progress payments shall first be charged against the advance payment until the latter has been fully exhausted. Spare Parts. unless otherwise approved by the President.4. such as. the following: a) b) c) d) e) f) g) h) i) j) k) l) m) Incidental Services. 4. Insurance. 2.2. shall also be allowed for procurement of goods required to address contingencies arising from natural or man-made calamities in areas where a “State of Calamity” has been declared by appropriate authorities. Transportation. 9184 Annex “D” 4. 126 .3. Purchaser’s Responsibilities. 4.

Limitations of Liability. Termination for Convenience. Termination for Default.Implementing Rules and Regulations of Republic Act No. 127 . Termination for Insolvency. and Assignment. 9184 Annex “D” n) o) p) q) r) s) Patent Rights.

In exceptional cases where it is urgently necessary to complete the original scope of work. provided that the cumulative amount of the Variation Order does not exceed ten percent (10%) of the original project cost. including the introduction of new work items that are not included in the original contract or reclassification of work items that are either due to change of plans. or where there are duly unknown physical conditions at the site of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent in the work or character provided for in the contract. 4. Variation Orders may be issued by the procuring entity to cover any increase/decrease in quantities. The preparation and submission of Variation Orders are as follows: a. In claiming for any Variation Order. That appropriate sanctions shall be imposed on the designer. An Extra Work Order may be issued by the implementing official to cover the introduction of new work necessary for the completion. If the Project Engineer believes that a Change Order or Extra Work Order should be issued. improvement or protection of the project which were not included as items of work in the original contract. A Change Order may be issued by the implementing official to cover any increase/decrease in quantities of original work items in the contract. Failure to provide either of such notices in the time stipulated shall constitute a waiver by the contractor for any claim. where there are subsurface or latent physical conditions at the site differing materially from those indicated in the contract. the contractor shall. A Variation Order may either be in the form of a change order or extra work order. Any cumulative Variation Order beyond ten percent (10%) shall be subject of another contract to be bid out if the works are separable from the original contract. he shall prepare the proposed Order accompanied with the notices submitted 128 . however. 2. consultant or official responsible for the original detailed engineering design which failed to consider the Variation Order beyond ten percent (10%). within seven (7) calendar days after such work has been commenced or after the circumstances leading to such condition(s) leading to the extra cost. 3. The addition/deletion of works should be within the general scope of the project as bid and awarded.Implementing Rules and Regulations of Republic Act No. design or alignment to suit actual field conditions resulting in disparity between the preconstruction plans used for purposes of bidding and the "as staked plans" or construction drawings prepared after a joint survey by the contractor and the Government after award of the contract. 5. and within twenty-eight (28) calendar days deliver a written communication giving full and detailed particulars of any extra cost in order that it may be investigated at that time. 9184 Annex “E” ANNEX “E” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS 1 VARIATION ORDERS ORDER/SUPPLEMENTAL AGREEMENT CHANGE ORDER/EXTRA WORK 1. the head of the procuring entity may authorize the variation order beyond ten percent (10%) but not more than twenty percent (20%) subject to the guidelines to be determined by the GPPB: Provided. such as.

the plans therefore. together with his justifications for the need of such Change Order or Extra Work Order. the contractor shall be paid for additional work items whose unit prices shall be derived based on the following: a. The timeframe for the processing of Variation Orders from the preparation up to the approval by the procuring entity concerned shall not exceed thirty (30) calendar days. The Regional Director or equivalent official concerned. c. form lumber.e. 129 . provided the same is acceptable to both the Government and the contractor. If.). shall review the estimated quantities and prices and forward the proposal with the supporting documentation to the head of procuring entity for consideration. e. the date of his inspections and investigations thereon. etc. A report of such verification shall be submitted directly to the Regional Director or equivalent official concerned. upon receipt of the proposed Change Order or Extra Work Order shall immediately instruct the technical staff of the Region to conduct an on-the-spot investigation to verify the need for the work to be prosecuted. labor rate. the head of the procuring entity or his duly authorized representative. shall approve the same. All new components of the new work item shall be fixed prices. equipment rental.g. believing the Change Order or Extra Work Order to be in order. For Variation Orders. 9184 Annex “E” by the contractor. and a detailed estimate of the unit cost of such items of work. after review of the plans. rebars. For additional/extra works duly covered by Change Orders involving work items which are exactly the same or similar to those in the original contract. after being satisfied that such Change Order or Extra Work Order is justified and necessary. b. unit cost of cement. The Regional Director or equivalent official concerned.Implementing Rules and Regulations of Republic Act No. the unit prices of the new work items shall be based on the direct unit costs used in the original contract (e. The direct cost of the new work item shall then be combined with the mark-up factor (i. 2 .ADDITIONAL/EXTRA WORK COSTING 1. and provided further that the direct unit costs of new components shall be based on the contractor's estimate as validated by the procuring entity concerned via documented canvass in accordance with existing rules and regulations. the applicable unit prices of work items original contract shall be used. For additional/extra works duly covered by Extra Work Orders involving new work items that are not in the original contract. the proper office of the procuring entity empowered to review and evaluate Change Orders or Extra Work Orders recommends approval thereof. his computations as to the quantities of the additional works involved per item indicating the specific stations where such works are needed. and the log book thereof. d. taxes and profit) used by the contractor in his bid to determine the unit price of the new work item. b. and shall submit the same to the Regional Director or equivalent official of office/agency/corporation/LGU concerned. quantities and estimated unit cost of the items of work involved.

and/or When time is of the essence. the corresponding Change Order or Extra Work Order shall be prepared and submitted for approval in accordance with the above rules herein set. with the approved supporting forms. For a Change Order or Extra Work Order involving a cumulative amount exceeding five percent (5%) of the original contract. authorize the immediate start of work under any Change or Extra Work Order under any or all of the following conditions: (1) (2) In the event of an emergency where the prosecution of the work is urgent to avoid detriment to public service. make an advance payment to the contractor in an amount equal to fifteen percent (15%) of the total contract price.ADVANCE PAYMENT 1. The procuring entity shall. 2. upon a written request of the contractor which shall be submitted as a contract document. to be made in lump sum or. That immediately after the start of work. The advance payment shall be made only upon the submission to and acceptance by the procuring entity of an irrevocable standby letter of credit of equivalent value from a commercial bank. Under no circumstances shall a contractor proceed to commence work under any Change Order or Extra Work Order unless it has been approved by the head of the procuring entity or his duly authorized representative. at the most two. further. or damage to life and/or property. installments according to a schedule specified in the Instructions to Bidders and other relevant Tender Documents. Said request for payment shall be included with the contractor's statement for progress payment. 9184 Annex “E” 2. That such approval is valid on work done up to the point where the cumulative increase in value of work on the project which has not yet been duly fully approved does not exceed five percent (5%) of the adjusted original contract price whichever is less. Request for payment by the contractor for any extra work shall be accompanied by a statement. issued by a 130 .CONDITIONS UNDER WHICH CONTRACTOR IS TO START WORK UNDER VARIATION ORDERS AND RECEIVE PAYMENTS 1. 4 . a bank guarantee or a surety bond callable upon demand. giving a detailed accounting and record of amount for which he claims payment. subject to the availability of funds. no work thereon may be commenced unless said Change Order or Extra Work Order has been approved by the Secretary or his duly authorized representative. Exceptions to the preceding rule are the following: a. 3 .Implementing Rules and Regulations of Republic Act No. Payments for works satisfactorily accomplished on any Change Order or Extra Work Order may be made only after approval of the same by the head of the procuring entity or his duly authorized representative. b. Provided. however. Provided. The Regional Director or equivalent official may.

materials and equipment delivered on the site but not completely put in place shall not be included for payment. Once a month. the ten percent (10%) retention shall be made. the ten percent (10%) retention shall be imposed. provided that the project is on schedule and is satisfactorily undertaken. The advance payment shall be repaid by the contractor by deducting fifteen percent (15%) from his periodic progress payments. If. 5 . however. to be posted in favor of the Government shall be valid for a duration to be determined by the concerned implementing office/agency or procuring entity and will answer for the purpose for which the ten percent (10%) retention is intended.RETENTION MONEY 1. Said irrevocable standby letters of credit. are completed. bank guarantees and/or surety bonds. The procuring entity shall have the right to deduct from the contractor's progress billing such amount as may be necessary to cover third party liabilities.PROGRESS PAYMENT 1. 7 . after fifty percent (50%) completion. Such request for payment shall be verified and certified by the Government project engineer concerned. 4. The contractor may reduce his standby letter of credit or guarantee instrument by the amounts refunded by the Monthly Certificates in the advance payment. 2. no additional retention shall be made. Otherwise. 2. Progress payments are subject to retention of ten percent (10%) referred to as the "retention money.. i. as well as uncorrected discovered defects in the project. 6 . The total "retention money" shall be due for release upon final acceptance of the works. bank guarantees or surety bonds callable on demand.CONTRACT COMPLETION Once the project reaches an accomplishment of ninety five (95%) of the total contract amount. 9184 Annex “E” surety or insurance company duly licensed by the Insurance Commission and confirmed by the procuring entity.Implementing Rules and Regulations of Republic Act No. The contractor may. to cover uncorrected discovered defects and third party liabilities. the procuring entity may create an inspectorate team to make preliminary inspection and submit a punch-list to the contractor in preparation for the final turnover of 131 ." Such retention shall be based on the total amount due to the contractor prior to any deduction and shall be retained from every progress payment until fifty percent (50%) of the value of works. of amounts equivalent to the retention money substituted for and acceptable to Government. the work is satisfactorily done and on schedule. as determined by the procuring entity. request the substitution of the retention money for each progress billing with irrevocable standby letters of credit of from a commercial bank. Except as otherwise stipulated in the Instruction to Bidders. the contractor may submit a request for payment for work accomplished.e. otherwise. 3.

9184 Annex “E” the project. in pesos prevailing opportunity cost of capital for government projects set by NEDA. of construction cost = annual inflation rate as defined by NEDA The head of procuring entity may also impose additional liquidated damages on the contractor provided such is prescribed in the Instructions to Bidders. Said punch-list will contain. and the specific duration/time to fully complete the project considering the approved remaining contract time. and not by way of penalty. This. in pesos Total Contract Price. an amount to be determined in accordance with the following formula until the work is completed and accepted or taken over by the procuring entity: TLD = VUUP x [ (1+ OCC)n .VCUP WHERE: TLD = Total Liquidated Damages. which is currently pegged at 15% total number of years that the contract work is delayed after the expiry date of the contract adjustment factor to cover additional losses 1 + C + ( i x n) VUUP = TCP = VCUP = OCC = n K = = = WHERE: C i = cost of construction supervision as a percentage.LIQUIDATED DAMAGES 1. the contractor shall pay the procuring entity for liquidated damages.Implementing Rules and Regulations of Republic Act No. not exceeding 10%. 8 . 132 . however. work deficiencies for necessary corrections. as of the expiry date of the contract. as of the expiry date of the contract. In Pesos value of the completed and usable portion of the contract work. In Pesos value of the uncompleted and unusable portions of the contract work. among others. plus any time extension duly granted and is hereby in default under the contract. the remaining works. shall not preclude the procuring entity's claim for liquidated damages.1] x K VUUP = TCP . Where the contractor refuses or fails to satisfactorily complete the work within the specified contract time.

the procuring entity does not have to prove that it has incurred actual damages. b. as the case may be. due to the following: a. 6. in which event the contract shall automatically be taken over by the procuring entity concerned or award the same to a qualified contractor through negotiation and the erring contractor's performance security shall be forfeited. Requisite construction plans which must be owner-furnished are not issued to the contractor precluding any work called for by such plans. to carry out valid orders given by the procuring entity or to perform any provisions of the contract. Such amount shall be deducted from any money due or which may become due the contractor under the contract and/or collect such liquidated damages from the retention money or other securities posted by the contractor whichever is convenient to the procuring entity. to work. due to force majeure or any fortuitous events or for failure on the part of the contractor to correct bad conditions which are unsafe for workers or for the general public. For terminated contracts where negotiation shall be undertaken. 3. The contractor or its duly authorized representative shall have the right to suspend work operation on any or all projects/activities along the critical path of activities after fifteen (15) calendar days from date of receipt of written notice from the contractor to the district engineer/regional director/consultant or equivalent official. shall the total sum of liquidated damages exceed ten percent (10%) of the total contract price.Implementing Rules and Regulations of Republic Act No. 2. the procedures prescribed in the IRR shall be adopted. Peace and order conditions make it extremely dangerous. or due to adjustment of plans to suit field conditions as found necessary during construction. 9184 Annex “E” 2. c. if not possible. A project or a portion thereof may be deemed usable when it starts to provide the desired benefits as certified by the targeted end-users and the concerned procuring entity. 4. forfeit the contractor's performance security and takeover the prosecution of the project or award the same to a qualified contractor through negotiated contract. In no case however. There exist right-of-way problems which prohibit the contractor from performing work in accordance with the approved construction schedule. The procuring entity shall have the authority to suspend the work wholly or partly by written order for such period as may be deemed necessary. 9 . the procuring entity concerned may rescind the contract. The contractor shall immediately comply with such order to suspend the work wholly or partly. The amount of the forfeited performance security shall be aside from the amount of the liquidated damages that the contractor shall pay the government under the provisions of this clause and impose other appropriate sanctions. this condition must be certified in writing by the Philippine National Police 133 . In case that the delay in the completion of the work exceeds a time duration equivalent to ten percent (10%) of the specified contract time plus any time extension duly granted to the contractor. To be entitled to such liquidated damages. 5. However.SUSPENSION OF WORK 1.

supplies or materials. in excess of the number of rainy/unworkable days pre-determined by the government in relation to the original contract time during the conduct of detailed engineering and in the preparation of the contract documents as agreed upon by the parties before contract perfection.EXTENSION OF CONTRACT TIME 1. Should the amount of additional work of any kind or other special circumstances of any kind whatsoever occur such as to fairly entitle the contractor to an extension of contract time. and/or for equivalent period of delay due to major calamities such as exceptionally destructive typhoons. 10 . delivered to the procuring entity notices in order that it could have investigated them at that time. No extension of contract time shall be granted the contractor due to (a) ordinary unfavorable weather conditions and (b) inexcusable failure or negligence of contractor to provide the required equipment. 4. 3. 3. 2. Extension of contract time may be granted only when the affected activities fall within the critical path of the PERT/CPM network. Extension of contract time shall be granted for rainy/unworkable days considered unfavorable for the prosecution of the works at the site. There is failure on the part of the procuring entity to deliver government-furnished materials and equipment as stipulated in the contract. provided that the procuring entity is not bound to take into account any claim for an extension of time unless the contractor has. the elapsed time between the effective order of suspending operation and the order to resume work shall be allowed the contractor by adjusting the contract time accordingly.Implementing Rules and Regulations of Republic Act No. In case of total suspension. or suspension of activities along the critical path. and 134 . which is not due to any fault of the contractor. 5. Upon receipt of full and detailed particulars. d. prior to the expiration of the contract time and within thirty (30) calendar days after such work has been commenced or after the circumstances leading to such claim have arisen. the findings of facts justify an extension. floods and earthquakes. 9184 Annex “E” (PNP) station which has responsibility over the affected area and confirmed by the Department of Interior and Local Government (DILG) Regional Director. e. Failure to provide such notice shall constitute a waiver by the contractor of any claim. based on the actual conditions obtained at the site. in the procuring entity's opinion. the procuring entity shall examine the facts and extent of the delay and shall extend the contract time completing the contract work when. No extension of contract time shall be granted when the reason given to support the request for extension was already considered in the determination of the original contract time during the conduct of detailed engineering and in the preparation of the contract documents as agreed upon by the parties before contract perfection. Delay in the payment of contractor's claim for progress billing beyond forty-five (45) calendar days from the time the contractor's claim has been certified to by the procuring entity’s authorized representative that the documents are complete unless there are justifiable reasons thereof which shall be communicated in writing to the contractor. the procuring entity shall determine the amount of such extension.

Implementing Rules and Regulations of Republic Act No. 9184

Annex “E”

epidemics, and for causes such as non-delivery on time of materials, working drawings, or written information to be furnished by the procuring entity, non-acquisition of permit to enter private properties within the right-of-way resulting in complete paralyzation of construction activities, and other meritorious causes as determined by the Government's authorized Engineer and approved by the procuring entity. Shortage of construction materials, general labor strikes, and peace and order problems that disrupt construction operations through no fault of the contractor may be considered as additional grounds for extension of contract time provided they are publicly felt and certified by appropriate government agencies such as DTI, DOLE, DILG, and DND, among others. The written consent of bondsmen must be attached to any request of the contractor for extension of contract time and submitted to the procuring entity for consideration and the validity of the performance security shall be correspondingly extended. 11 - ACCREDITATION OF TESTING LABORATORIES 1. To help ensure the quality of materials being used in infrastructure projects, the Bureau of Research and Standards (BRS) of the DPWH, Department of Science and Technology (DOST), or Department of Trade and Industry (DTI) shall accredit, in accordance with industry guidelines, the testing laboratories whose services are engaged or to be engaged in infrastructure projects. All government infrastructure project owners must accept results of material test(s) coming only from DOST/BRS/ accredited laboratories. 12 - EVALUATION OF CONTRACTORS PERFORMANCE 1. SUBJECT AND SCOPE All procuring entities implementing government infrastructure projects are mandated to evaluate the performance of their contractors using the NEDA-Approved Constructors Performance Evaluation System (CPES) Guidelines for the type of project being implemented. These guidelines cover all infrastructure projects awarded by the government regardless of contract amount and funding source. CPES evaluation shall be done during construction and upon completion of each government project. To ensure continuous implementation of CPES, all procuring entities concerned are required to include in their Projects’ Engineering and Administrative Overhead Cost the budget for the implementation of CPES pursuant to NEDA Board Resolution No. 18 (s.2002). 2. EVALUATION GUIDELINES For project types which do not have specific CPES Guidelines, the procuring entities concerned may formulate and adopt their own implementing Guidelines specific to their needs provided the NEDA-INFRACOM poses no objections to their adoption, and provided further that said Guidelines are made known to all prospective bidders. 3. IMPLEMENTATION MECHANISM FOR CPES All procuring entities implementing infrastructure projects are required to establish CPES Implementing Units (IUs) in their respective offices/agencies/corporations. The CPES Implementing Units shall be responsible for the implementation of the CPES Implementing guidelines, including but not limited to, the supervision of Constructors Performance Evaluators (CPEs) to be accredited by the Construction Industry Authority of the Philippines

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(CIAP). The procuring entity’s CPES IU shall be responsible for the following: a) prescreening of applications of CPEs, b) funding for CPEs accreditation training and seminars; and c) yearly evaluation of CPEs. 4. SUBMISSION AND DISSEMINATION OF EVALUATION RESULTS All procuring entities implementing CPES shall submit the results of their performance evaluation to the CIAP on a monthly basis or as often as necessary. The procuring entity’s CPES-IU shall likewise develop and maintain a databank and disseminate the CPES reports to the concerned units/departments within the procuring entity and to other interested users. 5. UTILIZATION OF EVALUATION RESULTS The CIAP shall consolidate all of the CPES evaluation results received and shall disseminate the same to all procuring entities concerned. The CPES rating and other information shall be used by the concerned government agencies for the following purposes: a) pre qualification/eligibility screening of constructors; b) awarding of contracts; c) project monitoring and control; d) issuance of Certificate of Completion; e) policy formulation/review; f) industry planning; g) granting of Incentives/Awards, and, in adopting measure to further improve performance of contractors in the prosecution of government projects. 13 – OTHER RULES AND GUIDELINES The rules and regulations for the other aspects of contract implementation shall be included in the manuals to be issued by the GPPB, such as, but not limited to, the following: 1. Sub-contracting; 2. Interference with Traffic and Adjoining Properties; 3. Clearance of Project Site of Obstruction; 4. Inspection and Testing; 5. Daywork; 6. Measurement of Works; and 7. Other Implementation Aspects.

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Annex “F”

ANNEX “F” CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT OF CONSULTING SERVICES
1. Advance Payment for Mobilization

The Government, as it considers fair and reasonable, may allow advance payment to the Consultant in the amount which shall not exceed fifteen percent (15%) of the contract amount to cover the cost of mobilization, subject to the posting of an irrevocable standby letter of credit issued by an entity acceptable to the agency and of an amount equal to the advance payment. The advance payment shall be repaid by the Consultant by deducting from his progress payments such sum as agreed upon during the contract negotiations until fully liquidated within the duration of the contract. 2. Cost of Consulting Services

All Consultancy contracts shall be fixed price contracts. Any extension of contract time shall not involve any additional cost. 3. Other Rules and Guidelines

The rules and regulations for the other aspects of contract implementation shall be included in the manuals to be issued by the GPPB.

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Annex “G”

ANNEX “G” GUIDELINES FOR THE PROCUREMENT AND IMPLEMENTATION OF CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
1. SCOPE AND APPLICATION These guidelines shall govern the procurement and implementation of contracts for design and build infrastructure projects and shall supplement applicable provisions of Republic Act No. 9184 (RA 9184) and its Implementing Rules and Regulations Part A (IRR-A) in particular Section 17.6 and Annex E. 2. PURPOSE These guidelines are formulated to determine the conditions for the use of the design and build scheme for infrastructure projects and the procedures for the implementation thereof. 3. GUIDING PRINCIPLES The procuring entity, prior to resorting to the design and build scheme, should consider the following advantages and disadvantages of said scheme: 3.1. Advantages: a) In making use of the design and build scheme, the procuring entity is assured that only one contractor shall bear all responsibilities, which shall include the risks related to design; The design and construction periods, as well as the final project cost, will definitely be reduced; and, The procuring entity is assured of the quality of the structure, considering that only infrastructure and design experts are involved in a construction utilizing the design and build scheme.

b) c)

3.2.

Disadvantages: a) Procuring entities should, however, take into account that in utilizing the design and build scheme for a particular project, contractors are given too much discretion in determining the project cost and there is difficulty in predicting its final cost until the actual commencement of construction; and Considering that the extent of the integration of design and construction of the project is exceptionally dependent on the contractor, there may be cases when the end-result may not be exactly in accordance with what the procuring entity has required.

b)

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4.

DEFINITION OF TERMS a. Approved Budget for the Contract (ABC). This shall be a lump sum amount that shall cover the cost of design and construction works (at the option of the procuring entity) based on the conceptual design and performance specifications and in accordance with applicable provisions of the law or agency guidelines. The ABC shall be calculated based on either the approximate quantities of work of the conceptual design, from standardized designs or from cost records of previous projects of similar kind. Bidding Documents for Design and Build Scheme. These shall basically be similar to the bidding documents for infrastructure projects and shall also include the performance specifications and parameters to be followed by the design and build contractors and the method for allocation of risks for the design and build contract, among others. Conceptual Design. This shall describe the general idea of the procuring entity with regard to the completed facility and shall identify the scope or physical components and structures, specific outputs and requirements of the structures and proposed methods of construction, where necessary. Design and Build Projects. This refers to infrastructure projects where the procuring entity awards a single contract for the architectural/engineering design and construction to a single firm, partnership, corporation, joint venture or consortium. Performance Specifications and Parameters. The procuring entity shall define the required performance specifications and criteria and its means of measurement based on the operating outputs and in accordance with appropriate design and construction standards, legal and technical obligations and any other relevant government commitments as required by existing laws and regulations. It shall not be drawn up to favor a particular solution, design and construction method. Preliminary Investigations. These shall include, among others, information on soil, geotechnical, hydrologic, hydraulic, seismic, traffic, and environmental conditions that shall be used to define project design criteria, to set the basis for any changed conditions and establish preliminary project cost estimates. Preliminary Survey and Mapping. These shall determine boundaries and provide stationing along control lines to establish feature and design criteria location, and identify existing and future right-of-way limits and construction easements associated with the procuring entity’s conceptual design. Project Description. This shall define the objectives, purpose, limitations or constraints, as well as the allocation of risks between the procuring entity and the winning bidder. Utility Locations. The procuring entity shall provide information on existing utilities in and around the project’s area.

b.

c.

d.

e.

f.

g.

h.

i.

139

The DBC shall assist the project management office (PMO) in the preparation of the conceptual design and performance specifications and parameters. CREATION OF DESIGN and BUILD COMMITTEE The procuring entity may create a Design and Build Committee (DBC) composed of highly technical personnel experienced in the field of architecture. CONDITIONS FOR THE USE OF THE DESIGN AND BUILD SCHEME 5. priority and fast track projects that need to be completed on a tight completion schedule. c. The Design and Build scheme shall be applied under any of the following cases: a. For flagship.1. engineering and construction in the particular type of project to be bid. among others. b. d. or For small projects where there are previously approved drawings or standardized designs and an innovation in design and construction methods under the design and build scheme will result in lower costs and higher quality projects. 7. For infrastructure projects where design. as included in the Medium Term Public Investment Program (MTPIP) for national projects and in the Regional Development Investment Plan (RDIP) for regional and provincial projects. 6. the following: 140 . rural health units. equipment. 5. review of detailed engineering design and supervision of the project. plant and construction can be provided exclusively by a company or where manufacturer’s know-how is important in the construction of such facility. assist the Bids and Awards Committee (BAC) and the Technical Working Group (TWG) in the evaluation of technical proposals in accordance with the criteria set in the bid documents. For infrastructure projects requiring advanced engineering or construction technologies or whose intellectual property rights belong to private companies.Implementing Rules and Regulations of Republic Act No. Examples of these are school buildings. All design and build projects shall be included in the Annual Procurement Plan (APP) of the procuring entity concerned and shall be subject to prior approval by the head of the procuring entity or his/her duly authorized representative. likewise. It shall. among others. PRELIMINARY DESIGN AND CONSTRUCTION STUDIES No bidding and award of design and build contracts shall be made unless the required preliminary design and construction studies have been sufficiently carried out and duly approved by the head of the procuring entity that shall include.2. 9184 Annex “G” 5.

Project Description Conceptual Design Performance Specifications and Parameters Preliminary Survey and Mapping Preliminary Investigations Utility Locations Approved Budget for the Contract Proposed Design and Construction Schedule Minimum requirements for a Construction Safety and Health Program for the project being considered Tender/Bidding Documents The above data are for reference only. All instructions for rectification shall be in writing stating the reasons for such rectification. the winning bidder shall be responsible for the preparation and submission of all necessary detailed engineering investigations. iii. Upon award of the design and build contract. ELIGIBILITY REQUIREMENTS 9. ii. including the above. viii. The procuring entity shall review. vii.the submitted plans within these schedules. x. 9. vi. 8. ix. (with the exception of the bid documents and the ABC). which shall include a preliminary budget for this purpose. The procuring entity does not guarantee that these data are fully correct. The contractor is responsible for the accuracy and applicability of all data.3. 8. and applicable to the project at hand. iv. 9184 Annex “G” i. that it will use in its design and build proposal and services. 8. as follows: 141 .2. confirmation and approval of the detailed engineering design and the details of the construction methods and procedures shall be included in the contract documents. The acquisition of right-of-way and the conduct of eminent domain proceedings shall still be the responsibility of the procuring entity. 9. surveys and designs in accordance with the provisions of Annex “A” of this IRR-A. The design and build contractor shall be solely responsible for the integrity of the detailed engineering design and the performance of the structure irrespective of the approval/confirmation by the procuring entity.Implementing Rules and Regulations of Republic Act No. order rectification.2. and approve or disapprove – for implementation only . The procuring entity shall ensure that all the necessary schedules with regard to the submission. The eligibility requirements for Design and Build Infrastructure Projects shall comply with the applicable provisions of Sections 23-24 of IRR-A. v. A modified set of requirements integrating eligibility documents and criteria for infrastructure projects and consulting services shall be adopted.1.1. DETAILED ENGINEERING REQUIREMENTS 8. up to date.

curriculum vitae of key staff. with at least 50% of the cost of the ABC.11. 9184 Annex “G” i.1 of the IRR-A of R.2. 9184. where one of the parties (in a joint venture/consortia) should have at least one similar project.Implementing Rules and Regulations of Republic Act No. The joint venture/consortia shall be jointly and severally responsible for the obligations and the civil liabilities arising from the design and build contract: Provided. That Filipino ownership or interest thereof shall be at least seventy five percent (75%): Provided further.7.1 (Technical Documents) of this IRR. Eligibility Criteria a) The eligibility of design and build contractors shall be based on the legal. however. The relevant provisions under Section 23. Technical and Financial Documents) and Class “B” Documents The prospective bidder shall submit all the required Class “A” and Class “B” documents for infrastructure projects and the following: a) relevant statements of all on-going. 9184.A. 9184 on eligibility requirements shall be observed. finally. Class “A” Documents (Legal. If the bidder has no experience in design and build projects on its own it may enter into partnerships or joint venture with design or engineering firms for the design portion of the contract. completed.A. In the technical requirements. the design and build contractor (as solo or in joint venture/consortia) should be able to comply with the experience requirement under the IRR-A of R. b) ii. both in design and construction. that when the design services in which the joint venture wishes to engage involve the practice of professions regulated by law. awarded but not yet started design/design and build related contracts. technical and financial requirements abovementioned. That joint ventures/consortia in which Filipino ownership or interest is less than seventy-five percent (75%) may be eligible where the structures to be built require the application of techniques and/or technologies which are not adequately possessed by Filipinos and that Filipino ownership or interest shall not be less than twenty-five percent (25%): Provided. with the following exceptions: b) c) Joint ventures/consortia among Filipino contractors and consultants or among Filipino contractors and foreign consultants shall be allowed subject to pertinent laws and the relevant provisions of the IRR-A of R. partners or principal officers.A. all those who will actually 142 . and valid licenses issued by the Professional Regulatory Commission (PRC) for design professionals in accordance with the provisions under Section 24.

iii. BID EVALUATION For the detailed evaluation of the design and build proposals a two-step procedure shall be adopted by the BAC. Lump sum bid prices.1. Detailed estimates including a summary sheet indicating the unit prices of construction materials. with their complete qualification and experience data. the first envelope (Technical Proposal) shall contain all the required documents for infrastructure projects under Section 25. Design and construction methods. 9184 Annex “G” perform the services shall be Filipino citizens and registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions and where foreign designers are required.1.A 9184 and the following additional documents: i. ii. iii. the foreign designer must be authorized by the appropriate Philippine Government professional regulatory body to engage in the practice of those professions and allied professions. and Cash flow by the quarter and payments schedule.3 (b) of the IRR-A of R. 11. iv. 11. and Value engineering analysis of design and construction method. The first step of the evaluation shall involve the review of the preliminary conceptual designs and track record submitted by the contractor as indicated in the bid documents using a non-discretionary “pass/fail” criteria that involve compliance with the following requirements: 143 . labor rates and equipment rentals used in coming up with the bid. to be assigned to the contract to be bid. List of design and construction personnel. which may be undertaken with the assistance of the DBC. First-Step Procedure: i. In the submission of bids.Implementing Rules and Regulations of Republic Act No. 10. 10. ii. which shall include the detailed engineering cost. The second envelope (Financial Proposal) shall contain all the required documents for infrastructure projects under Section 25.2.A 9184 and the following additional documents: i.3 (b) of the IRR-A of R. Preliminary Conceptual Design Plans in accordance with the degree of details specified by the procuring entity. in the prescribed Bid Form. SUBMISSION AND RECEIPT OF BIDS 10.

If after post-qualification the Lowest Calculated Bid is determined to be post-qualified it shall be considered the Lowest Calculated and Responsive Bid (LCRB) and the contract shall be awarded to the bidder.2.1. Quality of personnel to be assigned to the project which covers suitability of key staff to perform the duties of the particular assignments and general qualifications and competence including education and training of the key staff. and the quality of interpretation of project problems. The head of the procuring entity concerned shall award the contract to the said bidder pursuant to the provisions of Section 37. Adherence of preliminary design plans to the required performance specifications and parameters and degree of details. to make an oral presentation within fifteen (15) calendar days after the deadline for submission of technical proposals. POST-QUALIFICATION and AWARD OF THE CONTRACT 12. 12. For complex or unique undertakings. Rule XI of this IRR-A. Second-Step Procedure: Only those bids that passed the above criteria shall be subjected to the second step of evaluation. 144 . and suggested solutions. ii. in ascending order.Implementing Rules and Regulations of Republic Act No. 11. The financial bids as so calculated shall be ranked. from lowest to highest. 9184 Annex “G” a. eligible bidders may be required. In case of post-disqualification of the LCB. innovativeness and comprehensiveness of the plan approach. The head of the procuring entity shall approve or disapprove the recommendations of the BAC within a period not exceeding seven (7) calendar days from the determination and declaration by the BAC of the LCRB. The LCB shall be subject to post-qualification in accordance with Section 34. the procedure under Section 34 shall also be followed. Concept of approach and methodology for detailed engineering.2. feasibility. design and construction with emphasis on the clarity. 12. The bid with the lowest price shall be identified as the Lowest Calculated Bid (LCB). The BAC shall open the financial proposal of each “passed” bidder and shall obtain the correct calculated prices. Rule X of this IRR-A to determine its responsiveness to the eligibility and bid requirements.3. 12. c. b. such as those involving highly specialized or advanced engineering technology. risks. at the option of the agency concerned.

iv. Periods for review of specific outputs and any other submissions and approvals. contingencies and other circumstances which may affect the works and shall prepare and submit all necessary documents specified by the procuring entity to meet all regulatory approvals as specified in the contract documents. The following provisions shall supplement these procedures: 13. 13. the contractor shall notify the procuring entity within a reasonable period of time and shall shoulder the cost of such changes. inconsistencies. Any errors.2. v.Implementing Rules and Regulations of Republic Act No.5. The Contractor shall submit a detailed program of work within fourteen (14) calendar days after the issuance of the Notice to Proceed for approval by the procuring entity that shall include. General description of the design and construction methods to be adopted. vii. 13. vi. resubmitted and reviewed at the contractor’s cost. If the Contractor wishes to modify any design or document which has been previously submitted. reviewed and approved. As a rule. No works shall commence unless the contractor has submitted the required documentary requirements and the procuring entity has given written approval. omissions. The contractor shall be responsible for obtaining all necessary information as to risks. Sequence of timing for inspections and tests as specified in the contract documents. iii.3. changes in design and construction requirements shall be limited only to those that have not been anticipated in the contract documents prior 13. contract implementation guidelines for the procurement of infrastructure projects shall comply with Annex “E” of this IRR-A. CONTRACT IMPLEMENTATION As a rule. List of equipment required on site for each major stage of the work.4.1. 13. inadequacies or failure submitted by the contractor that do not comply with the requirements shall be rectified. Work execution shall be in accordance with reviewed and approved documents. and Description of the quality control system to be utilized for the project. ii. 9184 Annex “G” 13. among others: i. 145 . The order in which it intends to carry out the work including anticipated timing for each stage of design/detailed engineering and construction. Number and names of personnel to be assigned for each stage of the work.

forms and evaluation documents. 13. 13. as well as.10. formulate.9.8. 14. 13. This is without prejudice. The contractor shall provide all necessary equipment. The contractor shall be entitled to advance payment subject to the provisions of Section 4 of Annex E. 13. provided. or payment for such costs as specified in the contract documents. whenever necessary. that the cumulative amount of the variation order does not exceed ten percent (10%) of the original project cost.6. b. 146 . however. an extension of time for any such delays under Section 10 of Annex E. personnel. The contractor shall be held liable for design and structural defects and/or failure of the completed project within the warranty periods specified in Section 62. omissions or nonconformance with the performance specifications and parameters and the contract documents by the contractor shall be implemented by the contractor at no additional cost to the procuring entity. instruments. the GPPB may issue additional guidelines or introduce modifications thereto through the amendment of its specific provisions as the need arises.2 of the IRR-A. All design and build projects shall have a minimum Defects Liability Period of one (1) year after contract completion or as provided for in the contract documents. The following guidelines shall govern approval for change or variation orders: i.Implementing Rules and Regulations of Republic Act No. documents and others to carry out specified tests. The procuring entity shall define the quality control procedures for the design and construction in accordance with agency guidelines and shall issue the proper certificates of acceptance for sections of the works or the whole of the works as provided for in the contract documents. 9184 Annex “G” to contract signing and approval. to the liabilities imposed upon the engineer/architect who drew up the plans and specification for a building sanctioned under Section 1723 of the New Civil Code of the Philippines.7. AMENDMENTS AND FORMS In the implementation of these guidelines.11. Change Orders resulting from design errors. he shall be entitled to either one of the following: a. 13. Provided that the contractor suffers delay and/or incurs costs due to changes or errors in the procuring entity’s performance specifications and parameters. ii.2. The contract documents shall include the manner and schedule of payment specifying the estimated contract amount and installments in which the contract price will be paid. approve and disseminate standard bidding documents. 13.

EFFECTIVITY These Guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines.Implementing Rules and Regulations of Republic Act No. 147 . 9184 Annex “G” 15.

.

.

A. as proposed by GPPBTSO and DILG. unanimously agreed to adopt. crucial to the implementation of R. 9184”). administrative order. Section 4 of R. Title One. with certain amendments. to wit: 150 . including the barangays. by virtue of the powers vested in US by law. NOW. executive order. WHEREAS.” was signed into law on January 10. 9184 is repealed. letter of instruction. WHEREAS.” and Section 76 provides that any other law.A. Book One of R. WHEREAS. and the members of the GPPB. 9184 amends Title Six. the DILG submitted a draft proposal as to the composition of the BAC on January 29. offices and agencies. for and in consideration of the foregoing. its Implementing Rules and Regulations Part A (“IRR-A”) took effect on October 8. the Members of the Government Procurement Policy Board. 2003. during its meeting on March 10.A. WE. 2003. which refers to the Local Prequalification. 9184 provides that it shall apply to the procurement of infrastructure projects. in compliance with the instructions of the GPPB. for the effective dissemination of the BAC composition at the local government level.A. goods and consulting services. regardless of source of funds.A. entitled “An Act Providing for Modernization. including government-owned and/or controlled corporations and local government units. 2003. Standardization and Regulation of the Procurement Activities of the Government for other Purposes. WHEREAS.A. Bids and Awards Committee. on December 11. Section 76 of R. Book Two (Property and Supply Management in Local Government Units) of Republic Act No. charter. hereby RESOLVE to adopt and confirm. whether local or foreign by all branches and instrumentalities of Government. its departments. and took effect on January 26. including the barangays. 2003.BAC Composition for LGUs Appendix A APPENDIX A GPPB RESOLUTION 01-2004 BAC COMPOSITION FOR LGUS WHEREAS. rule or regulation and/or parts thereof contrary to or inconsistent with provisions of R. Republic Act No. WHEREAS. 7160. 2004. THEREFORE. 9184 and its IRR-A in the local government level is the creation of the Bids and Awards Committee (“BAC”) in all local government units (“LGUs”) including the barangays. WHEREAS. proclamation. otherwise known as the “Local Government Code of 1991. 9184 (“R. the Government Procurement Policy Board (“GPPB”) tasked the Government Procurement Policy Board-Technical Support Office (“GPPB-TSO”) and the Department of Interior and Local Government (“DILG”) to study and make a proposal on the possible composition of the BAC at the barangay level including the determination of the ranking of officials who may be designated as Chairman of the BAC in other LGUs. On the other hand. 2004. as WE hereby adopt and confirm the following BAC composition in LGUs. the BAC composition in LGUs including the barangays. the DILG is hereby directed to issue a memorandum circular reflecting the BAC composition contained herein for LGUs’ compliance. presidential decree or issuances. modified or amended accordingly. Section 75 of IRR-A further amends Chapter Five. 7160. WHEREAS.

but not more than seven (7) regular members of the Sangguniang Barangay. Barangays: 2. in the case of cities and municipalities. but not more than seven (7). Philippines. 2004 at Pasig City. In no case shall the local chief executive and/or the approving authority be the Chairman or a member of the BAC. however. except the Punong Barangay. For purposes of determining the rank. 1.2. The members to be designated by the local chief executive to the BAC shall be at least five (5). and the mayor. 2. the third ranking permanent official shall be the head of any of the regular offices under the Office of the Local Chief Executive: Provided.3.1. and. The BAC shall be composed of at least five (5). 2. being the local chief executive. APPROVED this 10th day of March. the first ranking permanent official shall be the governor. In no case shall the local chief executive and/or the approving authority be the Chairman or a member of the BAC. but not limited to the following: Office of the Administrator. and the vice mayor. The Chairman of the BAC shall be at least a third ranking permanent official of the procuring entity. Provinces.2. Legal Office. General Services Offices. in the case of cities and municipalities. 1. the second ranking permanent official shall be the vice governor. in the case of provinces. The end user office shall always be represented in the BAC. That the vice governor or the vice mayor shall not be designated as member of the BAC as its office is not one of the regular offices under the Office of the Local Chief Executive.1. The Punong Barangay. The members shall elect among themselves who shall act as the Chairman and ViceChairman. 151 . shall designate the members of the BAC. 2.3. The local chief executive shall designate the members of the BAC. The BAC shall be composed of one (1) representative each from the regular offices under the Office of the Local Chief Executive such as.4. 1. Budget Office.BAC Composition for LGUs Appendix A 1. in the case of provinces. Cities and Municipalities: 1. Engineering Office. The members of the BAC shall be personnel occupying plantilla positions of the procuring entity concerned. The members shall elect among themselves who shall act as the Chairman and Vice-Chairman.

Guidelines on Contract Price Escalation Appendix B APPENDIX B GUIDELINES FOR CONTRACT PRICE ESCALATION 1.3 To prescribe the rules and procedures in the approval by the Government Procurement Policy Board (GPPB) of requests for price escalation. in accordance with the provisions of the Civil Code of the Philippines. 2.1 2. as enumerated in Section 4 hereof.1 Price Escalation.A. 3. 9184). offices and instrumentalities of the Government. 3.2 2. PURPOSE These guidelines are being formulated to meet the following objectives: 2. departments. 9184 shall be undertaken competently.2. state universities and colleges (SUCs).A.3 Extraordinary Inflation or Deflation. including government-owned and/or controlled corporations (GOCCs).2 Extraordinary Circumstances. objectively and expeditiously by the GPPB and the National Economic and Development Authority (NEDA). government financial institutions (GFIs). These guidelines shall apply to all branches. and local government units (LGUs). DEFINITION OF TERMS 3. SCOPE These guidelines shall govern requests for contract price escalation during contract implementation of all contracts for the procurement of goods and infrastructure projects under extraordinary circumstances pursuant to and in accordance with Section 61 of Republic Act No. Refers to the decrease or increase of the purchasing power of the Philippine currency which is unusual or beyond the common fluctuation in the value of said currency.b of these guidelines and such decrease or increase could not have been 152 . 3. To ensure that the task mandated by Section 61 of R. constitutional commissions and offices. in accordance with the two (2) standard deviation rule computed under Section 5. otherwise known as “Government Procurement Reform Act” and its Implementing Rules and Regulations Part A (IRRA). agencies. bureaus. and To establish the legal and technical parameters for an objective determination of events that will result to extraordinary circumstances in accordance with the Civil Code of the Philippines. or series of events or occurrences during contract implementation which give/s rise to price escalation as may be determined by the NEDA. Refers to an event or occurrence. 9184 (R. Refers to an increase in the contract price during contract implementation on the basis of the existence of “extraordinary circumstances” as determined by the NEDA and upon prior approval of the GPPB.

Refers to an occurrence or happening which could not be foreseen. which measures the monthly changes in the general price level of commodities. Refers to the Producer Price Index. storms. 3. fires. and (2) by the act of man. e. The cause of the extraordinary circumstance must be independent of the will of the parties. attack by bandits. The event must be either unforeseeable or unavoidable.5 WPI. c. FOR PURPOSES OF THESE GUIDELINES. Refers to the Consumer Price Index. Refers to the Wholesale Price Index. and Vehicular accidents Provided that the following requisites are present: a. 153 . b.1 Article 1174. It is necessary that the contractor or supplier is free from negligence. b. 3. or even if foreseen. Typhoons. but not limited to the following: a. as it pertains to Ordinary Fortuitous Events or those events which ordinarily happen or which could be reasonably foreseen but are inevitable. is inevitable. floods. Thunderstorms. 4. and The allowance for price escalation should an ordinary fortuitous event occur is stipulated by the parties or the nature of the obligation requires the assumption of risk. which measures the monthly changes in the average retail prices of goods and services commonly purchased by a particular group of people in a particular area. robbery. The supplier or contractor must be free from any participation in or aggravation of the injury to the procuring entity. c. 3. such as but not limited to. which measures the average change in the unit price of a commodity as it leaves the establishment of the producer. f. 3. Flooding of lowly areas. governmental prohibitions. THE TERM “EXTRAORDINARY CIRCUMSTANCES” SHALL REFER TO THE FOLLOWING ARTICLES OF THE CIVIL CODE OF THE PHILIPPINES: 4. armed invasion. such as but not limited to. The event must be such as to render it difficult but not impossible for the supplier or contractor to fulfill his obligation in a normal manner or within the contemplation of the parties.6 CPI. epidemics. that flow into the wholesale trading system.7 PPI. usually in large quantities. earthquakes. provided that they have the force of an imposition which the contractor or supplier could not have resisted.4 Fortuitous Event. d. Fortuitous events may be produced by two (2) general causes: (1) by Nature. such as.Guidelines on Contract Price Escalation Appendix B reasonably foreseen or was manifestly beyond the contemplation of the parties at the time of the establishment of the obligation.

if implementation. f. as awarded. e. but not limited to the following: a. 5. Original cost estimates and/or bill of materials of the items. Certified copy of the original contract including the original scope of work and the original contract price. as it enumerates Extraordinary fortuitous events or those events which do not usually happen. Unusual flood.3 hereof. the procuring entity shall comply with the following conditions before the same can be acted upon: 5. through its Director-General. supporting documents shall contain information/data in accordance with Section 5. A certification from the Head of the Procuring Entity stating that the request for price escalation is justified in accordance with R. War. and Earthquake Provided that the circumstances before. such as. including information on the quantity of materials/components and/or scope of work being 154 . e. Pestilence. d. its IRR and these Guidelines. d. Fire. Locusts. applicable. revised schedule of contract b. c. b. c. Article 1680. goods or components affected by the request for price escalation and the proposed escalated prices thereof. as it pertains to Extraordinary Inflation or Deflation. accompanied by the following documents: a. f. Original and.2.1 Endorsement.3 Article 1250. during and after the event shall be taken into consideration. as defined in Section 3.A.b hereof.Guidelines on Contract Price Escalation Appendix B 4. 9184. Original copy of the request for price escalation submitted by the contractor/supplier to the procuring entity. as applicable to the type of contract. The Head of the Procuring Entity concerned shall endorse the request for price escalation to the NEDA. A description of the nature of the requested price escalation as well as the identification of the specific legal and technical parameters stated in these guidelines that have been complied with by the request.2 4. For the technical requirements. REVIEW AND ESCALATION APPROVAL PROCESS FOR REQUESTS FOR PRICE In the review and approval of a request for price escalation.

as determined from the prevailing price index at the time of bid submission. ii.) to be used in computing the mean shall be determined based on the volatility of the price concerned. good or component. item. b. After establishing the legal basis under the First Stage review. item. Data for a locally available good. the following shall be observed: i. the review of a request for escalation in price of an item. data shall be those issued/published by the appropriate foreign entity. The escalation in the price of an item. In case of an international good. monthly. shall be reviewed pursuant to this Section wherein the subject applicable price index of a request should have registered an increase of more than ten percent (10%). the request for price escalation shall be further reviewed in accordance with the technical parameters stipulated herein. etc..2.g. The prevailing price (e. reckoned from the time when the contract was awarded or the time when the latest price escalation was awarded. should at least be two (2) standard deviations from the mean calculated based on the historical trend of said price covering a ten (10) year period.and Other information/documents as may be required by NEDA/GPPB.2 Ten (10)-year historical data on the price indices of the materials or goods under consideration. g. In computing for the standard deviation. h. A request for price escalation shall only be granted if it satisfies both the First and Second Stage reviews.2 Ten Percent (10%) Increase. If Section 5. The determination shall strictly be in accordance with any of the extraordinary circumstances mentioned in Section 4 of these guidelines.1 hereof is inapplicable based on the conditions set forth therein. This stage shall establish the legal basis for extraordinary circumstances that will allow contract price escalation. good. as requested. or component. Two-Stage Review Process. 5. Second Stage: Technical Parameters. or component shall be those issued/published by the appropriate entity.b. as requested. The review process shall commence only after the NEDA has acknowledged the completeness of the request in accordance with this Section. daily. a. 155 . First Stage: Legal Parameters. b.1 Standard Deviation. or component wherein appropriate data is not available from domestic sources. weekly.Guidelines on Contract Price Escalation Appendix B proposed for price escalation. b. including the source of data.

based on availability and applicability. and PPI. which is the coefficient representing the increase or decrease of the unit price as a result of price fluctuation. Yo.85. Zo.2. and lastly the PPI. materials and other contract items at the time of the request for price escalation. WPI. … Ni are the current price indices representing cost of labor. Xi. Xo.b above shall use the coefficient K. CPI. the WPI for the commodity group shall first be utilized. Provided that. b + c +d … +n = 0.2 The items/components being proposed for price escalation by a contractor shall be the ones that shall be considered in the validation of the corresponding coefficients. followed by the CPI.1 The value K varies for each item of work and is represented by the following: K = a+ b (Xi/Xo) + c (Yi/Yo) + d (Zi/Zo) + … n (Ni/No) Where: a is a 0.2. For an item. Yi. 5. good or component wherein the prevailing price index cannot be established. d. the review shall be conducted utilizing the most relevant and applicable index. Detailed Technical Parameters/Applicable Price Indices for Infrastructure Projects.15 fixed coefficient representing contractor’s profit. … n are the coefficients representing the proportionate value of each pay item to the total. the contractor shall demonstrate the effect of the extraordinary circumstance on all of the component items of K. Detailed Technical Parameters/Applicable Price Indices for Goods. The detailed computation and validation of price escalation for goods as described in Sec. 156 . b. The indices for commodity groups shall be those presented under Annex A. d. as classified and issued by the National Statistics Office (NSO). The sum of a +b +x + … n must be equal to 1 (100%) d. if the fluctuation factor K is being claimed as a whole. The detailed computation and validation of price escalation for infrastructure projects as described in Sec. materials and other contract items at the time of bid submission. Zi.c. 5. and other non-adjustable items.b above shall use the most appropriate price index of the commodity group under the three types of price indices.Guidelines on Contract Price Escalation Appendix B c.d. while those items/components not included in the proposal shall have a corresponding coefficient equal to 1. However. … No are the price indices representing cost of labor.

upon completion of its review pursuant to Section 5. For contracts wherein the duration is shorter than six (6) months. Recommendation/Approval.90 < K < 1. to be attended by the Head of the Procuring Entity concerned or his duly authorized representative/s. Further.10. P = Po K < 0. Where Where Where Where K > 1.4 Period and Frequency of Requests for Price Escalation. those listed in Annex B.2.90. the amount of escalation to be granted in the case of goods should only be the remaining amount over and above the thresholds as computed under Sections 5.5 5.6 6.1 or 5. submit its recommendations to the GPPB for appropriate action. among others.2 hereof. NEDA shall. P = Po (K – 0.3 5. that requests for price escalation shall be made not shorter than six (6) months reckoned from the start of contract implementation.b. Requests for price escalation shall only be made for cost items already incurred by the contractor/supplier. AUTHORITY TO APPROVE CONTRACT PRICE ESCALATION The Head of the Procuring Entity shall not pay any contract price escalation until after the GPPB has approved the claim. Provided further.10) 0. Any misrepresentation made by the procuring entity or the contractor/supplier in any stage of the processing of a particular request for price escalation shall cause the automatic denial/disapproval of said claim.2. 7. price escalation shall only be granted to those items included in a specific request. The GPPB shall then approve/act upon the request for price escalation during one of its meetings. Upon completion of the contract. the procuring entity shall calculate the amount of price escalation supposedly due the contractor/supplier/consultant to consider likewise any downward movement in prices during the entire contract 157 .2 hereof. Misrepresentation.b. REVIEW OF CONTRACT PRICES AFTER THE COMPLETION OF THE CONTRACT. 5.10) P escalated bid/unit price Po original bid/unit price K fluctuation factor 5. Amount of Price Escalation to be Granted. P = Po (K + 0. and not shorter than six (6)-month period thereafter. the request for contract price escalation shall be made after the completion of the contract. No request for price escalation shall be made for prospective application.3 The fluctuation factor and its application in the parametric formula shall include.Guidelines on Contract Price Escalation Appendix B d. In the case of civil works. the amount to be granted shall be determined based on the following: a.10. After this determination.

The amount of materials for which advance payment was made. b.75 75 Issued through GPPB Resolution 07-2004. Nevertheless. in case of goods. OTHER CONDITIONS FOR APPROVAL In case the project is behind schedule based on the approved Project Evaluation Review Technique/Critical Path Method (PERT/CPM) network or schedule. If the resulting amount of price escalation is lower than the amount of price escalation already paid. 10. dated 22 July 2004. 8. but was not. the GPPB may formulate supplemental guidelines in the form of addenda or annexes for the review process as stipulated in Section 5. Payment of the computed amount shall not be made until said unaccomplished portion of the work is completed and upon prior approval of the GPPB and the Head of the procuring entity. That portion of work accomplished during the period corresponding to a value equal to the amount of recoupment of advance payment. 158 . AMENDMENT AND ADDENDA The GPPB may amend these Guidelines as may be necessary.2 hereof without need of amending these Guidelines.Guidelines on Contract Price Escalation Appendix B implementation period. 8.1 Where advance payment has been made. EFFECTIVITY These Guidelines or any amendments thereof shall take effect immediately after publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. and published in the Official Gazette on 04 October 2004. the amount of overpayment shall be deducted by the procuring entity from the retention money. in case of infrastructure projects. actually accomplished within the period shall be based on the applicable price index for the period in which it should have been accomplished. 9. price escalation on the portion of work that should have been. or the warranty security. on or before its expiration. no price escalation shall be granted for the following: a.

PPI Commodity Groups. glass and glass products. lubricants and related materials.1 b. PRICE INDICES FOR COMMODITY GROUPS The indices listed herein shall be used for the detailed computation and validation of price escalation for goods WPI Commodity Groups: a. c. textile. miscellaneous non-metallic mineral. housing and repairs. chemicals including animal and vegetable oils and fats. fuel.1 c.3 a.11 c. cement. plastic products. petroleum products. and miscellaneous manufactured articles. rubber products.19 beverage. machinery and transport equipment.7 c. footwear and wearing apparel.5 b.8 c.8 food.16 c. 159 . wood and wood products. non-ferrous metal.4 c.15 c.6 c.2 a.10 c. iron and steel. mineral fuels.5 c.1 a. crude materials except fuel. basic metals.14 c.Guidelines on Contract Price Escalation Appendix B ANNEX A. chemical products. beverages and tobacco.2 b. publishing and printing.4 a.3 b.17 c. manufactured goods classified chiefly by materials. services.5 a. clothing.9 c. light and water. tobacco.12 c. and miscellaneous.18 c. furniture and fixtures. non-metallic mineral products.13 c.7 a.3 c.4 b.7 c.6 food.6 a. paper and paper products. beverages and tobacco. CPI Commodity Groups: b. leather products.2 c.

electrical machinery. 160 .23 c.21 c.22 c. machinery. and other manufacturing industries.24 fabricated metal products. transport equipment.20 c.Guidelines on Contract Price Escalation Appendix B c.

12 (Fi/Fo) + 0.02 (Li/Lo) + 0.01 (Li/Lo) + 0.01 (Ei/Eo) 9. Common earthwork fluctuation factor for clearing and grubbing.60 (Ei/Eo) 6.38 (Ei/Eo) 3.20 (Fi/Fo) 2.62 (Ai/Ao) + 0.16 (Ei/Eo) 8.15 + 0.15 + 0.15 + 0. Daywork fluctuation factor for equipment K5 = 0.15 + 0. Graded subbase or vase course fluctuation factor using screened or processed aggregate.01 (Fi/Fo) + 0.58 (Ei/Eo) 4. Rock excavation fluctuation factor K2 = 0. crushed adobe or the like K7= 0.05 (Li/Lo) + 0. common excavation. common fill or backfill and select borrow.08 (Li/Lo) + 0.20 (Fi/Fo) + 0.15 + 0. Daywork fluctuation factor for labor K6 = 0.08 (Li/Lo) + 0. K1 = 0. Asphaltic concrete fluctuation factor for bituminous wearing or surface course K9 = 0.05 (Li/Lo) + 0.53 (Ei/Eo) 5.05 (Fi/Fo) + 0.15 + 0.07 (Ei/Eo) 161 .62 (Bi/Bo) + 0. PARAMETRIC FORMULA FOR INFRASTRUCTURE PROJECTS The fluctuation factor and its application in the parametric formula shall include among others.19 (Fi/Fo) + 0. common borrow. any or combination of the following: 1. subgrade preparation. Structural excavation fluctuation factor K3 = 0.15 (Li/Lo) + 0. embankment construction.27 (Zi/Zo) + 0.85 (Li/Lo) 7.Guidelines on Contract Price Escalation Appendix B ANNEX B.03 (Fi/Fo) + 0.15 + 0.12 (Bi/Bo) + 0.01 (Li/Lo) + 0. granular materials.17 (Fi/Fo) + 0.15 + 0. K8 = 0.82(Ai/Ao) + 0.60 (Ei/Eo) + 0. Structural backfill fluctuation factor K4 = 0.15 + 0. Asphaltic materials fluctuation factor for prime or tack coat.

27 (Ci/Co) + 0. manhole.13 (Li/Lo) + 0.03 (Li/Lo) + 0.04 (Fi/Fo) + 0.06 (Ei/Eo) 14. piles.25 (Ci/Co) + 0.20 (Ei/Eo) 18.03 (Di/Do) + 0. Concrete fluctuation factor for curb.18 (Ei/Eo) 12.09 (Ei/Eo) 17.10 (Ei/Eo) 13.15 + 0.18 (Li/Lo) + 0.15 + 0. precast.15 + 0.41 (Ci/Co) + 0.03 (Fi/Fo) + 0.47 (Ci/Co) 0.28 (Ci/Co) + 0.09 (Bi/Bo) + 0. columns.19 (Ri/Ro) + 0. culvert.15 + 0. gutter and sidewalk K11 = 0. drop inlet concrete post.06 (Li/Lo) + 0.19 (Bi/Bo) + 0. Concrete masonry (CHB) fluctuation factor 162 .10 (Ei/Eo) + 0.16 (Bi/Bo) + 0. Concrete for structure Class A or B fluctuation factor K16 = 0.25 (Ri/Ro) + 0. bulkhead.15 + 0.13 (Bi/Bo) + 0.06 Fi/Fo) + 0. Reinforced concrete structures fluctuation factor for headwall. retaining wall.09 (Di/Do) + 0.03 (Li/Lo) + 0.01 (Bi/Bo) + 0.01 (Bi/Bo) 16.21 (Li/Lo) + 0.05 (Li/Lo) + 0. Non-reinforced concrete pipes fluctuation factor K15 = 0.02 (Li/Lo) + 0. Portland cement concrete pavement (PDCP) fluctuation factor K10 = 0.15 + 0. supporting slab and beam K12 = 0. K13 = 0.03 (Di/Do) + 0.36 (Ci/Co) + 0. footing.02 (Ci/Co) + 0.04 (Fi/Fo) + 0.15 + 0. Reinforced concrete pipe (RCP) or culvert pipe (RCCP) fluctuation factor K14 = 0.12 (Ei/Eo) 15. catch basin.Guidelines on Contract Price Escalation Appendix B 10.02 (Fi/Fo) + 0.07 (Fi/Fo) + 0. Reinforced concrete structures fluctuation factor for bridge. Grouted rip-rap or stone masonry fluctuation factor K17 = 0.03 (Di/Do) + 0.61 (Qi/Qo) + 0.02 (Ci/Co) + 0. parapet wall.15 + 0. railing.13 (Bi/Bo) + 0.02 (Di/Do) + 11.03 (Fi/Fo) + 0.21 (Bi/Bo) + 0.69 (Qi/Qo) + 0.

06 (Li/Lo) + 0.15 + 0. wood guardrail K26 = 0.20 (Fi/Fo) + 0. Painting fluctuation factor with use of equipment K24 = 0. Structural steel works fluctuation factor K20 = 0.15 + 0.13 (Ci/Co) + 0.60 (Ei/Eo) 24.02 (Fi/Fo) + 0.Guidelines on Contract Price Escalation Appendix B K18 = 0.04 (Fi/Fo) + 0. Reinforcing steel bars fluctuation factor K19 = 0.04 (Bi/Bo) + 0.06 (Li/Lo) + 0.15 + 0.15 (Li/Lo) + 0.57 (Ei/Eo) 23.33 (Li/Lo) + 0.28 (Li/Lo) + 0.15 + 0.03 (Li/Lo) + 0.15 + 0. Cast and / or galvanized iron pipes fluctuation factor 163 .12 (Ei/Eo) 27.07 (Li/Lo) + 0.09 (Li/Lo) + 0.71 (Si/So) + 0.66 (Ni/No) 26.02 (Fi/Fo) + 0. Demolition AC pavement strip fluctuation factor K23 = 0.07 (Ei/Eo) 25. Wood structure fluctuation factor for falsework.20 (Fi/Fo) + 0. temporary wood bridge. Painting fluctuation factor using labor only K25 = 0.05 (Li/Lo) + 0.01 (Fi/Fo) + 0.58 (Ei/Eo) 22.04 (Fi/Fo) + 0.15 + 0.62 (Di/Do) + 0.63 (Di/Do) + 0. Demolition of PCCP strip fluctuation factor K22 = 0.19 (Fi/Fo) + 0.08 (Ei/Eo) 21. Demolition of concrete structure fluctuation factor K21 = 0.08 (Ei/Eo) 20.67 (Ri/Ro) + 0. Carpentry works fluctuation factor K27 = 0.30 (Qi/Qo) + 0.48 (Ni/No) + 0.15 + 0.04 (Ei/Eo) 19.03 (Fi/Fo) + 0.06 (Ei/Eo) 28.15 + 0.15 + 0.15 + 0.19 (Li/Lo) + 0.

Guidelines on Contract Price Escalation Appendix B K28 = 0.04 (Li/Lo) + 0.15 + 0.15 + 0.02 (Li/Lo) + 0.15 + 0.02 (Li/Lo) + 0.08 (Li/Lo) + 0.09 (Li/Lo) + 0.15 + 0.01 (Fi/Fo) + 0. Marble floor finish fluctuation factor K38 = 0. PVC pipes fluctuation factor K31 = 0.03 (Ei/Eo) 33.10 (Bi/Bo) 38.69 (Ii/Io) + 0.1 sheets fluctuation factor K36 = 0. Cement plaster fluctuation factor K37 = 0.77 (Pi/Po) 36.10 (Li/Lo) + 0.10 (Ei/Eo) 30. Water service connection fluctuation factor K34 = 0.02 (Fi/Fo) + 0.04 (Ei/Eo) 31.07 (Li/Lo) + 0. Plain and corrugated G.07 (Ei/Eo) 32. Asbestos cement pipes fluctuation factor K30 = 0. Plumbing fixtures fluctuation factor K35 = 0.07 (Li/Lo) + 0.03 (Ci/Co) + 0.15 + 0.03 (Fi/Fo) + 0. Gate valves and fire hydrants fluctuation factor K32 = 0.02 (Ei/Eo) 34. Steel pipes fluctuation factor K29 = 0.15 + 0.15 + 0.01 (Bi/Bo) + 0.65 (Xi/Xo) + 0.15 + 0.35 (Ji/Jo) 35.78 (Ii/Io) + 0.03 (Li/Lo) + 0 .15 + 0.02 (Fi/Fo) + 0.38 (Li/Lo) + 0.79 (Pi/Po) + 0.69 (Ji/Jo) + 0.77 (Ii/Io) + 0.15 + 0.77 (Ki/Ko) + 0.15 + 0.76 (Wi/Wo) 37.04 (Ei/Eo) 29.03 (Li/Lo) + 0.01 (Fi/Fo) + 0.37 (Ci/Co) + 0.01 (Fi/Fo) + 0.40 (Pi/Po) + 0.06 (Ei/Eo) 164 . Check valves fluctuation factor K33 = 0.03 (Fi/Fo) + 0.

Transformers (10KVA to 50KVA) fluctuation factor K48 = 0. Glazing fluctuation factor K41 = 0.15 + 0.09 (Li/Lo) + 0.08 (Ei/Eo) 46. Bare copper wire fluctuation factor 165 .01 (Fi/Fo) + 0.15 + 0. Window frames and grills fluctuation factor K40 = 0.15 + 0.66 (Xi/Xo) + 0. Glazed and ceramic tiles fluctuation factor K39 = 0. PVC waterstop (9”) fluctuation factor K44 = 0.01 (Li/Lo) + 0.74 (Di/Do) 47.73 (Di/Do) + 0.53 (Si/So) + 0. Lightning arrester (3.69 (Vi/Vo) 43. Lighting fixtures and devices fluctuation factor K43 = 0.000v) fluctuation factor K47 = 0. Electrical wood pole fluctuation factor K45 = 0.03 (Fi/Fo) + 0.15 + 0. Electrical rough-in fluctuation factor K42 = 0.82 (Ji/Jo) 45.72 (Ui/Uo) 44.11 (Li/Lo) + 0.17 (Ei/Eo) 41.81 (Ti/To) + 0.06 (Fi/Fo) + 0.03 (Li/Lo) + 0.000v to 15.12 (Li/Lo) + 0.15 + 0.82 (Gi/Go) 42.Guidelines on Contract Price Escalation Appendix B 39.02 (Bi/Bo) 40.13 (Li/Lo) + 0.15 + 0.15 + 0. Wood crossarm fluctuation factor K46 = 0.15 + 0.05 (Ci/Co) + 0.15 + 0.09 (Li/Lo) + 0.01 (Li/Lo) + 0.03 (Li/Lo) + 0.76 (Ti/To) 48.02 (Ei/Eo) 49.15 + 0.16 (Li/Lo) + 0.

20 (Fi/Fo) + 0.04 (Li/Lo) + 0. Bare aluminum wire fluctuation factor K50 = 0.06 (Li/Lo) + 0.13 (Li/Lo) + 0.79 (Ti/To) + 0.02 (Ei/Eo) 51.85 (MI/Mo) Where: Mi Mo Li Lo Ei Eo Ai Ao Bi Bo Ci Co Di Do Fi Fo Gi Go Hi Ho current general construction price index figure base general construction price index figure current labor index figure base labor index figure current equipment index figure base equipment index figure current asphaltic material price index figure base asphaltic material price index figure current aggregates material price index figure base aggregates material price index figure current cement price index figure base cement material price index figure current lumber material price index figure base lumber material price index figure current automotive fuel price index figure base automotive fuel price index figure current glass and glazing material price index figure base glass and glazing material price index figure current hardware material price index figure base hardware material price index figure 166 .Guidelines on Contract Price Escalation Appendix B K49 = 0.15 + 0. Dredging fluctuation factor K51 = 0.01 (Fi/Fo) + 0.15 + 0.01 (Ei/Eo) 50.15 + 0.69 (Ti/To) + 0.01 (Fi/Fo) + 0. General construction fluctuation factor (for others not covered by any or combination of the above 51 fluctuation factors) K52 = 0.59 (Ei/Eo) 52.15 + 0.

Labor cost index as published by the Department of Labor and Employment.Guidelines on Contract Price Escalation Appendix B Ii Io Ji Jo Ki Ko Ni No Pi Po Qi Qo Ri Ro Si So Ti To Ui Uo Vi Vo Wi Wo Xi Xo Zi Zo - current galvanized and / or cast iron pipe (Plumbing) material price index figure base galvanized and / or cast iron pipe (Plumbing) material price index figure current polyvinyl chloride pipe (Plumbing) material price index figure base polyvinyl chloride pipe (Plumbing) material price index figure current asbestos cement pipe (Plumbing) material price index figure base asbestos cement pipe (Plumbing) material price index figure current paint material price index figure base paint material price index figure current plumbing fixture material price index figure base plumbing fixture material price index figure current concrete products material price index figure base concrete products material price index figure current reinforcing steel material price index figure base reinforcing steel material price index figure current structural steel material price index figure base structural steel material price index figure current exterior electrical material price index figure base exterior electrical material price index figure current electrical fixtures / devices material price index figure base electrical fixtures / devices material price index figure current electrical (rough-in) material price index figure base electrical (rough-in) material price index figure current metal products material price index figure base metal products material price index figure current tile work material price index figure base tile work material price index figure current blasting material price index figure base blasting material price index figure For the preceding formula. the following Price Indices shall be used: General construction price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Equipment index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. 167 .

Hardware material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Cement material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Asbestos cement (Plumbing) material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Structural steel material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Plumbing fixture material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Galvanized and/or cast iron pipe (Plumbing) material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Paint material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Reinforcing steel material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Automotive fuel price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Electrical fixtures / devices material price index as published by the National Statistics Office 168 . Electrical (rough-in) material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Glass and glazing material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Concrete products material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Aggregates material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Polyvinyl chloride pipe (Plumbing) material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Exterior electrical material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Lumber material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency.Guidelines on Contract Price Escalation Appendix B Asphaltic material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency.

Tile work material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. Metal product material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. In the absence of any price index for a specified adjustable item. Blasting material price index as published by the National Statistics Office (NSO) or other appropriate/authorized government agency. 169 . the price index of the nearest related item shall be used.Guidelines on Contract Price Escalation Appendix B (NSO) or other appropriate/authorized government agency.

and local government units (“LGUs”). DEFINITION OF TERMS 3. that blacklisting decisions of government agencies that are not subject to general and/or administrative 170 . government units.Uniform Guidelines for Blacklisting Appendix C APPENDIX C UNIFORM GUIDELINES FOR BLACKLISTING OF MANUFACTURERS. not allowed to participate in any government procurement during the period of disqualification. government financial institutions (“GFIs”). PROHIBITION ON BLACKLISTED PERSONS/ENTITIES TO PARTICIPATE IN THE BIDDING OF GOVERNMENT PROJECTS/CONTRACTS A person/entity that is blacklisted by a procuring entity and/or included in the Government Procurement Policy Board (“GPPB”) Consolidated Blacklisting Report shall not be allowed to participate in the bidding of all government projects during the period of disqualification unless it is delisted as provided for in these guidelines. 9184 (“R. departments. 9184”). GOCCs and SUCs under their jurisdiction. In the case of corporations. contractors and consultants (“contractors” for brevity) involved in government procurement for offenses or violations committed during competitive bidding and contract implementation. together with his/her relatives up to the third civil degree of consanguinity or affinity. SCOPE These guidelines shall govern the blacklisting of manufacturers. holding at least twenty percent (20%) of the shares therein. a single stockholder. 3. bureaus. Provided.” These guidelines shall apply to all branches. agencies. CONTRACTORS AND CONSULTANTS 1. suppliers. constitutional commissions and offices. including government-owned and/or controlled corporations (“GOCCs”). Department level agencies shall exercise appellate authority over offices. The department. offices. shall be blacklisted after they have been determined to hold the same controlling interest in a previously blacklisted corporation or in two corporations which have been blacklisted. the corporations of which they are part shall also be blacklisted. likewise.A. SUPPLIERS. its chairman and president. and their assignees. 2. further. distributors. agencies. state universities and colleges (“SUCs”). bureaus. office or government unit exercising general and/or administrative supervision/control over the blacklisting agency. A joint venture or consortium which is blacklisted or which has blacklisted member/s and/or partner/s as well as a person/entity who is a member of a blacklisted joint venture or consortium are. DISTRIBUTORS. otherwise known as the “Government Procurement Reform Act.1 Appellate Authority.4 of the Implementing Rules and Regulations Part A (“IRR-A”) of Republic Act No. and instrumentalities of the Government. in accordance with Section 69.

A report prepared by the GPPB containing the list of suppliers. 3. Extinction of contract by reason of resolution or rescission under Articles 1191. 2.A. SANCTIONS AND GROUNDS FOR BLACKLISTING 4. 3. 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.A person/entity who was disqualified by an agency and/or is included in the GPPB Consolidated Blacklisting Report. contractors or consultants blacklisted by procuring entities. A written notice from the procuring entity accepting a bid or proposal. the procuring entity shall impose on bidders or prospective bidders the penalty of suspension for one (1) year for the first offense.4 Award.9 Delist.8 3. 3.5 Consolidated Blacklisting Report. Suspension. pursuant to Section 69 of R. Blacklisting. whereby such contractor is prohibited from further participation in the bidding process of an agency. 3. Termination of Contract.6 3. without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution.A. The administrative penalty imposed for infractions committed by a contractor during the competitive bidding stage. Report.3 3.Uniform Guidelines for Blacklisting Appendix C supervision/control of any department. Submission of eligibility requirements containing false information or falsified documents.2 3. 4.1 Competitive Bidding Stage During the competitive bidding stage. office or government unit shall be final and executory. 9184. 9184 and other applicable laws arising from the default of the contractor.7 Contract Implementation. An administrative penalty disqualifying a person or an entity from participating in any government procurement for a given period. A process of undertaking a project or contract in accordance with the contract documents. manufacturers. 171 . distributors. 1380. for the following violations: 1. Section 68 of the IRR-A of R. Submission of Bids that contain false information or falsified documents. as provided by applicable laws. Removal of a person/entity from the Consolidated Blacklisting Blacklisted Person/Entity. 1381 of the Civil Code. suspension for two (2) years for the second offense from participating in the public bidding process.

competent 172 b) . Failure by the contractor to fully and faithfully comply with its contractual obligations without valid cause. the bid security posted by the concerned bidder or prospective bidder shall also be forfeited.2 Contract Implementation Stage Pursuant to Section 69 (6) of R. or failure by the contractor to comply with any written lawful instruction of the procuring entity or its representative(s) pursuant to the implementation of the contract. In addition to the penalty of suspension. Unauthorized use of one’s name. for violations committed during the contract implementation stage. 4. lawful instructions include but are not limited to the following: i. due solely to his fault or negligence. 4. which include but not limited to the following: a) Failure of the contractor.A. to mobilize and start work or performance within the specified period in the Notice to Proceed (“NTP”). 9184 and without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution as provided by applicable laws. the procuring entity shall impose on contractors after the termination of the contract the penalty of suspension for one (1) year for the first offense. except for valid reasons. For the procurement of infrastructure projects or consultancy contracts. suspension for two (2) years for the second offense from participating in the public bidding process. 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. Withdrawal of a bid. Employment of competent technical personnel. Refusal or failure to post the required performance security within the prescribed time.Uniform Guidelines for Blacklisting Appendix C 3. 8. 5. after he had been adjudged as having submitted the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. or enter into contract with the government without justifiable cause. 6. 7. or using the name of the name of another for purpose of public bidding. All other acts that tend to defeat the purpose of the competitive bidding. and contractors habitually withdrawing from bidding or submitting letters of non-participation for at least three (3) times within a year. or refusal to accept an award. such as but not limited to: an eligible contractor not buying bid documents or not complying with the requirements during bid evaluation. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor.

g) Willful or deliberate abandonment or non-performance of the project or contract by the contractor resulting to substantial breach thereof 173 . For the procurement of consulting services. and Renewal of the effectivity dates of the performance security after its expiration during the course of contract implementation. Stockpiling in proper places of all materials and removal from the project site of waste and excess materials. Allowing defective workmanship or works by the contractor being supervised by the consultant. and Specifying materials which are inappropriate. For the procurement of goods.Uniform Guidelines for Blacklisting Appendix C ii. Failure to deliver critical outputs due to consultant’s fault or negligence. supplier or distributor arising from his fault or negligence and/or unsatisfactory or inferior quality of goods. poor performance by the contractor or unsatisfactory quality and/or progress of work arising from his fault or negligence as reflected in the Constructor's Performance Evaluation System (“CPES”) rating sheet. Defective design resulting in substantial corrective works in design and/or construction. iv. d) e) f) For the procurement of infrastructure projects. engineers and/or work supervisors. as may be provided in the contract. including broken pavement and excavated debris in accordance with approved plans and specifications and contract provisions. ii. the existing performance monitoring system of the procuring entity shall be applied. Any of the following acts by the consultant shall be construed as poor performance: i. Negative slippage of 15% and above within the critical path of the project due entirely to the fault or negligence of the contractor. support staff and manpower. In the absence of the CPES rating sheet. Deployment of committed equipment. and Quality of materials and workmanship not complying with the approved specifications arising from the contractor's fault or negligence. ii. unsatisfactory progress in the delivery of the goods by the manufacturer. facilities. c) Assignment and subcontracting of the contract or any part thereof or substitution of key personnel named in the proposal without prior written approval by the procuring entity. ii. or way above acceptable standards. Any of the following acts by the constructor shall be construed as poor performance: i. iii. substandard. Provision of warning signs and barricades in accordance with approved plans and specifications and contract provisions. iii. iv. poor performance by the consultant of his services arising from his fault or negligence.

2 Notification Upon verification of the existence of grounds for blacklisting. or he has been considered by the BAC for suspension and blacklisting. 5.3 Hearings If a hearing is requested. the BAC shall immediately notify the contractor concerned in writing. the BAC shall immediately set the date and time for 174 . b) c) d) Within five (5) calendar days from receipt of notification. the performance security posted by the contractor shall also be forfeited. if he so desires. the contractor shall submit its written answer with documentary evidence to the BAC with a manifestation for request of hearing to determine questions of fact. he has the opportunity to show cause why he should not be suspended and blacklisted. upon his request. No time extension shall be allowed.Uniform Guidelines for Blacklisting Appendix C without lawful and/or just cause.1 AND BLACKLISTING DURING THE Initiation of Action Any bidder/prospective bidder or duly authorized observer may initiate the suspension and blacklisting proceedings by filing a written complaint with the Bids and Awards Committee (“BAC”). Should the contractor fail to answer within the same period. the BAC shall issue a resolution recommending to the Head of the Procuring Entity the immediate suspension of the contractor from participating in any bidding process of the agency and the forfeiture of his bid security. At the option of the procuring entities. verbal testimony and crossexamine the witnesses presented against him. The BAC may also motu proprio (by itself) commence the proceedings upon prima facie (self-sufficient) determination that the contractor as a bidder or prospective bidder has committed any of the grounds for blacklisting during the competitive bidding stage. a hearing shall be conducted before the BAC. stating the grounds for such. In addition to the penalty of suspension. advising him that: a) a complaint for suspension and blacklisting has been filed against him. 5. PROCEDURE FOR SUSPENSION COMPETITIVE BIDDING STAGE 5. where he may present documentary evidence. 5. and the consequences of being suspended and blacklisted. a reasonable fee may be required for initiating the suspension and blacklisting proceedings.

he shall issue a decision suspending the contractor from participating in any bidding process of the agency. The suspension shall remain in effect during the period of motion for reconsideration and protest and shall terminate only upon a reversal of the decision by the Head of the Procuring Entity or appellate authority. within fifteen (15) days from receipt of the resolution and the records of the BAC proceedings. 175 . answer. The BAC may also invite a representative from a duly recognized private group in a sector or discipline relevant to the procurement at hand as an observer for each hearing. the Head of Procuring Entity shall issue a Blacklisting Order disqualifying the erring contractor from participating in the bidding of all government projects. If no motion for reconsideration or protest is filed. the decision shall become final and executory after the lapse of seven (7) calendar days from the receipt of the notice of decision. and further declaring that his bid security is forfeited. 5. The hearing shall be non-litiguous and shall be terminated within five (5) days.4 Decision The Head of the Procuring Entity shall. Otherwise.6 Effect of Decision A contractor is suspended upon receipt of the notice of decision prohibiting him from participating in the bidding process of the agency. If the Head of the Procuring Entity determines that such reasonable cause exists.Uniform Guidelines for Blacklisting Appendix C hearing. the BAC shall make a determination of the case based on the complaint. each violation shall be meted the corresponding penalty. it shall issue a resolution recommending to the head of the agency the suspension of the contractor from participating in any bidding process of the agency and the forfeiture of his bid security. If no request is made. If the BAC is convinced that the contractor is at fault. In case a contractor commits more than one offense or a combination of offenses for the same project/contract in a particular agency. 5. evidence and the law on which it is based. Thereafter.5 Notice of Decision The Head of the Procuring Entity shall furnish the suspended contractor a copy of the decision immediately from its promulgation. The decision shall clearly and distinctly state the facts. if any. 5. as well as the date of effectivity of the penalty. documentary evidence submitted and facts verified. he shall dismiss the case. determine whether reasonable cause exists for the suspension of the contractor and the forfeiture of the latter’s bid security. The Head of the Procuring Entity may delegate to the BAC the authority to impose the corresponding sanction(s) provided for in these guidelines.

8 Protest from Decision A protest may be filed under Section 55. The performance security of said contractor shall also be forfeited. the affirmed. But if Blacklisting Order is issued prior to the date of the notice of award 176 . 7. the Head of Procuring Entity or appellate authority shall issue a Blacklisting Order disqualifying the erring contractor from participating in the bidding of all government projects. provided that only one (1) Motion for Reconsideration shall be filed with the blacklisting agency: a) b) The decision is not in conformity with the evidence and/or facts presented.A. 5. PROCEDURE FOR BLACKLISTING IMPLEMENTATION STAGE DURING THE CONTRACT Upon termination of contract due to default of the contractor.9 Finality of Decision The decision of the agency shall become final and executory after the lapse of seven (7) calendar days from the receipt of the notice of decision or resolution on the motion for reconsideration. 9184 by the suspended contractor with the appellate authority within seven (7) calendar days from receipt of the resolution on the Motion for Reconsideration.Uniform Guidelines for Blacklisting Appendix C 5. modified or reversed decision shall become final and executory upon receipt thereof by the agency and person/entity concerned. 6. the Head of the Procuring Entity shall immediately issue a Blacklisting Order disqualifying the erring contractor from participating in the bidding of all government projects. Upon finality of the decision suspending the contractor. and Newly discovered evidence or facts which not be discovered and produced at the investigation and which when presented would probably alter the result of the investigation. 5.1 of the IRR-A of R. If a protest is filed.7 Motion for Reconsideration A Motion for Reconsideration may be filed by the suspended person/entity within seven (7) calendar days from receipt of the notice of decision and shall be for either or both of the following causes. STATUS OF BLACKLISTED PERSON/ENTITY Before the issuance of a Blacklisting Order. the erring contractor may participate in the procurement of any government project except in the agency where he is suspended. The Head of the Procuring Entity shall resolve with finality the motion for reconsideration within fifteen (15) calendar days from the filing thereof and furnish suspended contractor a copy of the resolution immediately from its promulgation.

DELISTING 8. name of project/contract and location/amount.1 A blacklisted person/entity shall be automatically delisted after the period for the penalty shall have elapsed. license number. Unless otherwise provided in these guidelines. unless the blacklisting agency requests the GPPB to maintain the blacklisted person/entity in the GPPB Consolidated Blacklisting Report due to justifiable reasons. specific sanction being lifted and the number of previously issued blacklisting Department/Office Orders or Board Resolutions. among others. name and address of the blacklisted person/entity. and other conditions which can extend duration of sanctions in Sections 4 hereof.A. if applicable. effectivity date of delisting. b) 9. specific ground(s)/offense(s) committed as provided in Section 4 hereof. 9184 and its IRR-A. however. 9. the blacklisted person/entity shall not be qualified for award and such project/contract shall be awarded to another bidder pursuant to R.1.1(a) hereof and disseminate the same to procuring entities and the Commission on Audit (“COA”). the type of offense/violation committed. Department/Office Order or Board Resolution number. the blacklisting agency concerned shall submit to the GPPB. the penalty imposed. 8. that the said offense(s) committed by the blacklisted person/entity is/are not connected with the awarded project/contract. name and address of the blacklisted person/entity. METHODOLOGY FOR NOTIFICATION TO THE GPPB 9. The report shall be further posted in the GPPB website and the Government Electronic Procurement System (“G-EPS”) and shall indicate the number of times a person/entity has been blacklisted. If the Blacklisting Order is issued after award of a government project/contract to the blacklisted person/entity. sanction imposed and its date of start and completion. date of issuance of the order to blacklist. In the latter case. among others. Department/Office Order or Board Resolution number.Uniform Guidelines for Blacklisting Appendix C (“NOA”). name of project/contract and location. the awarded project/contract shall not be prejudiced by the said order: Provided. Delisting Order duly signed by the blacklisting agency containing.2 The GPPB shall prepare the Consolidated Blacklisting Report every quarter. and date of delisting approval. based on the submitted Blacklisting Orders as provided for in Section 9. Authorized Managing Officer (“AMO”). and the blacklisting agency 177 . the blacklisted person/entity shall be delisted only upon the backlisting agency’s issuance of a Delisting Order. the following documents: a) Blacklisting Order duly signed by the Head of the Procuring Entity/appellate authority containing. within seven (7) calendar days after the issuance of the blacklisting order/delisting orders made by the agency.

Uniform Guidelines for Blacklisting

Appendix C

concerned. The GPPB shall delist from such report those whose sanctions are lifted automatically after serving the given penalty as provided for in Section 8.1 hereof and those whose sanctions are lifted through the issuance of Delisting Orders. 9.3 In the case of procurement of infrastructure projects, should a blacklisting agency decide to refer the case of its blacklisted person/entity to the Philippine Contractors Accreditation Board (“PCAB”) for license suspension/revocation, it shall submit to PCAB a copy of the decision accompanied with supporting documents. All existing blacklisting reports of the Government or any of its procuring entities, as well as the list of constructors whose licenses are suspended or revoked by the PCAB as of the date of effectivity of the IRR-A, are hereby adopted and made part of the GPPB Consolidated Blacklisting Report upon the issuance of these guidelines.

9.4

10.

AMENDMENTS 10.1 In the implementation of these guidelines, the GPPB may introduce modifications thereto through the amendment of its specific provisions as the need arises. Any amendment to these guidelines shall be applicable to government projects advertised for bid after the effectivity of the said amendment

10.2

11.

EFFECTIVITY These Guidelines or any amendments thereof shall take effect immediately after publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines.76

76

Issued through GPPB Resolution 09-2004, dated 20 August 2004, and published in the Official Gazette on 30 November 2004.
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Appendix D

APPENDIX D GUIDELINES ON TERMINATION OF CONTRACTS
I. PURPOSE, SCOPE, AND APPLICATION

These guidelines aim to promote fairness in the termination of procurement contracts and to prescribe contract conditions and measures to enable government to protect its interests. For this purpose, policies and procedures relating to the whole or partial termination of government procurement contracts of goods, infrastructure projects, and consulting services are herein established. II. DEFINITION OF TERMS 1. Coercive Practice means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract. Collusive Practice means a scheme or arrangement including practice among bidders (prior to or after bid submission) designed to establish bid prices at artificial non-competitive levels to prevent free and open competition. Corrupt Practice means the offering, giving, receiving or soliciting of anything of value to influence the action of a public official in the selection process or in contract execution. It also means entering, on behalf of the Government, into any contract or transaction manifestly and grossly disadvantageous to the same, whether or not the public officer profits or will profit thereby; and similar acts as provided in Republic Act 3019. Fraudulent Practice means a misrepresentation of facts in order to influence a selection process or the execution of a contract to the detriment of the Procuring Entity. Head of the Procuring Entity refers to: (i) the head of the agency or his duly authorized official, for national government agencies; (ii) the governing board or its duly authorized official, for government-owned and/or controlled corporations; or (iii) the local chief executive, for local government units. Provided, that in a department, office or agency where the procurement is decentralized, the Head of each decentralized unit shall be considered as the Head of the Procuring Entity subject to the limitations and authority delegated by the head of the department, office or agency. Implementing Unit refers to the unit or office having direct supervision or administration over the implementation of the contract such as the Project Management Office or the End-User Unit. Termination in Part means the termination of a part but not all, of the work that has not been completed and accepted under a contract. Termination in Whole means the termination of all of the work that has not been completed and accepted under a contract.

2.

3.

4.

5.

6.

7. 8.

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9.

Show Cause refers to a notice which the Procuring Entity is required to issue prior to terminating a contract. The purpose of a show cause notice is to enable the contractor to present its position why the contract should not be terminated.

10. 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. III. GROUNDS FOR TERMINATION OF CONTRACTS A. Termination for Default 1. In contracts for Goods: The Procuring Entity shall terminate a contract for default when any of the following conditions attend its implementation: a) Outside of force majeure, the Supplier fails to deliver or perform any or all of the Goods within the period(s) specified in the contract, or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contact price; b) As a result of force majeure, the Supplier is unable to deliver or perform any or all of the Goods, amounting to at least ten percent (10%) of the contract price, for a period of not less than sixty (60) calendar days after receipt of the notice from the Procuring Entity stating that the circumstance of force majeure is deemed to have ceased; or c) The Supplier fails to perform any other obligation under the Contract. 2. In contracts for Infrastructure Projects: The Procuring Entity shall terminate a contract for default when any of the following conditions attend its implementation: a) Due to the Contractor’s fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more in accordance with Presidential Decree 1870; b) Due to the Contractor’s fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the work; or c) The Contractor: i. abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring Entity or fails to proceed expeditiously and without delay despite a written notice by the Procuring Entity;

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Appendix D

ii. does not actually have on the project site the minimum essential equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project; iii. does not execute the Works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; iv. neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or v. sub-lets any part of the contract works without approval by the Procuring Entity. 3. In contracts for Consulting Services: The Procuring Entity shall terminate a contract for default when any of the following conditions attend its implementation: a) Outside of force majeure, the Consultant fails to deliver or perform the Outputs and Deliverables within the period(s) specified in the contract, or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Consultant prior to the delay; b) As a result of force majeure, the Consultant is unable to deliver or perform a material portion of the Outputs and Deliverables for a period of not less than sixty (60) calendar days after the Consultant’s receipt of the notice from the Procuring Entity stating that the circumstance of force majeure is deemed to have ceased; or c) The Consultant fails to perform any other obligation under the contract. B. Termination for Convenience The Procuring Entity may terminate the Contract, in whole or in part, at any time for its convenience. 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, financially or technically impractical and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and national government policies. C. Termination for Insolvency The Procuring Entity shall terminate the contract if the Supplier/Contractor/Consultant is declared bankrupt or insolvent as determined with finality by a court of competent jurisdiction. In this event, termination will be without compensation to the Supplier/Contractor/Consultant, 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/Contractor/Consultant.

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Guidelines on Termination of Contracts

Appendix D

D. Termination for Unlawful Acts The Procuring Entity may terminate the contract in case it is determined prima facie that the Supplier/Contractor/Consultant has engaged, before or during the implementation of the contract, in unlawful deeds and behaviors relative to contract acquisition and implementation. Unlawful acts include, but are not limited to, the following: a) Corrupt, fraudulent, collusive and coercive practices; b) Drawing up or using forged documents; c) Using adulterated materials, means or methods, or engaging in production contrary to rules of science or the trade; and d) Any other act analogous to the foregoing. E. Termination by Contractor/Consultant 1. In contracts for Infrastructure Projects: The Contractor may terminate its contract with the Procuring Entity if the works are completely stopped for a continuous period of at least sixty (60) calendar days through no fault of its own, due to any of the following reasons: a) Failure of the Procuring Entity to deliver, within a reasonable time, supplies, materials, right-of-way, or other items it is obligated to furnish under the terms of the contract; or b) The prosecution of the work is disrupted by the adverse peace and order situation, as certified by the Armed Forces of the Philippines Provincial Commander and approved by the Secretary of National Defense. 2. In contracts for Consulting Services: The Consultant may terminate its agreement with the Procuring Entity if the latter is in material breach of its obligations pursuant to the contract and has not remedied the same within sixty (60) calendar days following its receipt of the Consultant’s notice specifying such breach. IV. PROCEDURES FOR TERMINATION OF CONTRACTS 1. Verification. Upon receipt of a written report of acts or causes which may constitute ground(s) for termination as aforementioned, or upon its own initiative, the Implementing Unit shall, within a period of seven (7) calendar days, verify the existence of such ground(s) and cause the execution of a Verified Report, with all relevant evidence attached. 2. Notice to Terminate. Upon recommendation by the Implementing Unit, the Head of the Procuring Entity shall terminate contracts only by a written notice to the Supplier/Contractor conveying the termination of the contract. The notice shall state:

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A. Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper. The termination shall only be based on the ground(s) stated in the Notice to Terminate. Decision. If a Procuring Entity terminates the contract due to default. 4. 6. 9184 and its IRR-A. or performed before the Supplier’s/Contractor’s/Consultant’s receipt of the notice. It shall serve a written notice to the Supplier/Contractor/Consultant of its decision and. The goods that have been performed or are ready for delivery 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. whether in whole or in part. The Procuring Entity may. the Head of the Procuring Entity shall decide whether or not to terminate the contract. at anytime before receipt of the Supplier’s/Contractor’s/Consultant’s verified position paper to withdraw the Notice to Terminate if it is determined that certain items or works subject of the notice had been completed. Within a period of seven (7) calendar days from receipt of the Notice of Termination. 3. If the Supplier/Contractor/Consultant fails to show cause after the lapse of the seven (7) day period. b) the extent of termination. Contract Termination Review Committee (CTRC). it may enter into a negotiated procurement pursuant to Section 53(c) of R. Rescission of Notice of Termination. c) an instruction to the Supplier/Contractor/Consultant to show cause as to why the contract should not be terminated.Guidelines on Termination of Contracts Appendix D a) that the contract is being terminated for any of the ground(s) aforementioned. unless otherwise provided. if any. the Head of the Procuring Entity shall issue an order terminating the contract. the Supplier/Contractor/Consultant shall submit to the Head of the Procuring Entity a verified position paper stating why the contract should not be terminated. All decisions recommended by the CTRC shall be subject to the approval of the Head of the Procuring Entity. Take-over of Contracts. the Contract is deemed terminated from receipt of the Supplier/Contractor/Consultant of the notice of decision. and d) special instructions of the Procuring Entity. The Head of the Procuring Entity may create a committee to assist him in the discharge of his function under these Guidelines. Show Cause. either by inaction or by default. Procuring Entity’s Options in Termination for Convenience in Contracts for Goods. and a statement of the acts that constitute the ground(s) constituting the same. or for cause. 5. For goods not yet performed or ready for delivery. The Notice to Terminate shall be accompanied by a copy of the Verified Report. the Procuring Entity may elect: 183 . delivered. 8. 7. insolvency.

AMENDMENTS 1. it shall be allowed to recover partially from the 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. 184 . EFFECTIVITY These Guidelines or any amendments thereof shall take effect immediately after fifteen (15) days following the publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these Guidelines.77 77 Issued through GPPB Resolution 018-2004. Notice by Contractor/Consultant. the fact of loss must be established under oath by the Supplier to the satisfaction of the Procuring Entity before recovery may be made. and published in the Official Gazette on 16 May 2005.Guidelines on Termination of Contracts Appendix D a) to have any portion delivered or performed and paid at the contract terms and prices. dated 22 December 2004. Before recovery may be made. Any amendment to these Guidelines shall be applicable to government projects advertised for bid after the effectivity of the said amendment. VI. and/or b) to cancel the remainder and pay to the Supplier an agreed amount for partially completed or performed goods and for materials and parts previously procured by the Supplier . In the implementation of these Guidelines. on a quantum meruit basis. the Government Procurement Policy Board (GPPB) may introduce modifications hereto through the amendment of its specific provisions as the need arises. such as purchase of raw materials for goods specially manufactured for the Procuring Entity which cannot be sold in open market. V. 2. If the Supplier suffers loss in its initial performance of the terminated contract. The Contractor/Consultant 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. 9.

Unknown Quantity. and it is inadvisable for said procuring entity to carry it on stock or commit to purchase a certain quantity within a given period. 3. This excludes parts required for routine maintenance. government-owned and/or controlled corporations. the Delivery Order Contract shall signify exercise by the procuring entity of the option to purchase in the amount and quantity not exceeding those indicated in the 185 b. it can not be determined in advance that a definite/certain quantity will be required within a given period. offices and agencies. SCOPE AND APPLICATION These guidelines shall govern the use of ordering agreements. In which case. Delivery Order Contract. its departments. keeping in stock of said parts for possible future use or by procuring them for inventory shall be disadvantageous to the government. in the procurement of certain items. for reasons of economy. Non-inventory items. bureaus. government financial institutions and local government units intend to procure non-inventory parts necessary to maintain the operational effectiveness of existing major equipment. its departments. PURPOSE These guidelines are formulated to meet the following objective: To prescribe the procurement rules and procedures to govern situations wherein the procurement by the national government. 2. including state universities and colleges. the requirement thereof. although identified. Therefore. government financial institutions and local government units necessitate entering into ordering agreements for parts of unknown quantity. . Refers to a situation where. DEFINITION OF TERMS a. offices and agencies. Refers to a contract that authorizes and obligates a supplier to deliver a certain quantity of items within an agreed period pursuant to the Ordering Agreement entered into between the procuring entity and said supplier. including state universities and colleges. limited to situations where the national government. government-owned and/or controlled corporations. the quantity and the exact time of need for said parts cannot be accurately predetermined. Refer to non-routinary or non-recurring requirements not ordinarily kept in stock by the procuring entity but which may become necessary upon the happening of a fortuitous event. bureaus. c. For purposes of these guidelines.Guidelines on the Use of Ordering Agreement Appendix E APPENDIX E GUIDELINES ON THE USE OF AN ORDERING AGREEMENT UNDER THE GOVERNMENT PROCUREMENT REFORM ACT 1. becomes necessary only upon the happening of a fortuitous event. the volume and delivery time being determinable at an earlier period.

The estimated quantity of items to be procured should not exceed the expected number to be required by the agency should the need arise. List of parts and their corresponding quantities that by its nature have been identified to be of the type where procurement utilizing an Order Agreement is the most practical. shall include. an Order Agreement List which shall remain unchanged. Ordering Agreement. economical. in preparing its APP. Refers to a written instrument of understanding. of supplies to be delivered including lead time for the receipt thereof. and advantageous for a procuring entity. vi. The Ordering Agreement shall contain (1) terms and clauses applying to future contracts (orders) between the parties during its term. such estimated quantity of items shall not be deemed as the minimum purchase. It grants the procuring entity the option to either place an order or not buy at all. d. The estimated agency unit contract price per item shall be determined after careful consideration of variables that may affect future market prices. It shall be used only for the purpose of approximating a quantity of items which will be needed by the procuring entity and which the supplier is bound to deliver upon the happening of a fortuitous event. The APP shall indicate the types of items considered for inclusion in the Order Agreement List. 186 . within a given period of time. in which case. (2) a description. The estimated unit contract price. The estimated quantity in the event that the need for the product arises. PROCUREMENT PLANNING No procurement shall be undertaken under these guidelines unless the same is in accordance with the Annual Procurement Plan (APP) and the Project Procurement Management Plan (PPMP) prepared by the procuring entity. The type and nature of the item to be procured. negotiated between the procuring entity and the Lowest Calculated and Responsive Bidder and used to expedite the procurement process when anticipated needs for specific items are not known. as specific as practicable. v. and (3) methods for issuing and delivering future orders under the ordering agreement. ii. e. 4. Order Agreement List. for purposes of entering into an Ordering Agreements. The procuring entity. iv. The total ABC including budgetary allotments per type of product. and Other appropriate information as may be required.Guidelines on the Use of Ordering Agreement Appendix E Ordering Agreement List and shall constitute the actual purchase by the procuring entity. neither to be increased or decreased after advertisement and during its life span of one (1) year. iii. The technical specifications of the item. The Order Agreement List shall indicate the following information: i.

9184 and its IRR-A. and (3) the requested delivery lead time from execution of Delivery Order Contract or from any date determined by the procuring entity. 6.A. the head of the procuring entity or his duly authorized representative shall approve or disapprove the recommendation for award. COMPETITIVE BIDDING The procuring entity shall package the contract for Ordering Agreements in the most practicable manner and conduct the bidding using the single stage. among others. shall be declared and recommended to the Head of the procuring entity for the issuance of the Notice of Award. the procuring entity. whereby bidders are to bid on a per item basis as presented in the Ordering Agreement List.Guidelines on the Use of Ordering Agreement Appendix E The total ABC shall be the ceiling amount for any item or a combination of items to be purchased under the Delivery Order Contract/s. all laws. a Notice of Award shall be issued in favor of the winning bidder. through its BAC. The Ordering Agreement shall not state or imply any agreement by the procuring entity to place future contracts or release orders with the contractor. It shall (1) include a fixed contract price per item. Within a period of fifteen (15) calendar days. from the determination/declaration of the winning bidders. The eligibility requirements shall include. (1) an estimate of the budgetary allocation for each item. in case of GOCCs. For this purpose. (2) the estimated quantity it may procure when needed. (4) specify that the execution and issuance of Delivery Order Contracts shall reckon the perfection of the actual procurement contract. ORDERING AGREEMENT Within ten (10) calendar days from receipt by the winning bidder of the Notice of Award. and (5) that upon the execution and issuance thereon. 9184. (3) include terms of payment. shall prepare separate Technical Specifications and/or Terms of Reference for every line item to be bid out and indicate. three-envelope procedure as prescribed in Sections 23 and 25 of R. determined in accordance with the provisions of the Implementing Rules and Regulations Part A of R. and thirty (30) calendar days. the capacity of the bidder to deliver the estimated quantity as prescribed in the Ordering Agreement List. (2) include delivery terms and conditions.A. among others. The Lowest Calculated and Responsive Bidders. In case of approval. 5. rules and guidelines governing 187 . the winning bidder or its duly authorized representative shall formally enter into an Ordering Agreement with the procuring entity concerned for an option amount of one peso to be paid by the procuring entity as a consideration for the privilege granted to the procuring entity to buy the items only upon its determination that it is necessary. in case of NGAs.

And. and the procuring entity fails to favorably negotiate for a price equal to. provided that the succeeding Delivery Order Contracts shall be with the same unit price as originally stated in the Ordering Agreement. there is no limit on the number of Delivery Order Contracts that may be executed or issued. and guidelines. No other costs are authorized unless otherwise specified in the Ordering Agreement. the Ordering Agreement shall automatically terminate under the following conditions: i. The Ordering Agreement shall be valid only for a period as stated in the Bidding Documents but which. it shall require the delivery of the line item identified in the Order Agreement List in the quantity stated therein and at the price for which it was awarded. 8. and 188 . IMPLEMENTATION AND TERMINATION OF ORDERING AGREEMENTS Without prejudice to the provisions of applicable laws. the prevailing rate. for any reason. When the total ABC for the project has been exhausted regardless of the actual number of items procured or of the unit quantity per item. rules. or lower than. become higher than the prevailing market rate at the time of demand for delivery.A. except on conditions warranting the termination of the Ordering Agreement as provided in Section 8 hereof. Should the price indicated in the Ordering Agreement. The procuring entity may execute or issue Delivery Order Contracts requiring delivery to multiple destinations or performance at multiple locations. No modification of Order Agreements during its lifetime shall be allowed. 7. DELIVERY ORDER CONTRACTS When the procuring entity has determined the necessity for one or more of the items covered in the Ordering Agreement. in any case. The procuring entity shall execute or issue a Delivery Order Contract in favor of the supplier to obligate the latter to make deliveries according to the terms and conditions stated in the Ordering Agreement. shall not exceed one (1) year from the time the Ordering Agreement was formally entered into by the parties. 9184 and its IRR-A shall be applicable.Guidelines on the Use of Ordering Agreement Appendix E implementation of procurement contracts under R. the procuring entity shall not execute or issue a Delivery Order Contract in favor of the supplier but shall conduct another public bidding to determine the most suitable offer. The procuring entity may issue or execute as many Delivery Order Contracts for the same line item as may be needed.

All other rules governing contract implementation and termination under R.78 78 Issued through GPPB Resolution 06-2005. 9. its IRR-A. When the one-year period duration of the contract have expired.Guidelines on the Use of Ordering Agreement Appendix E ii. EFFECTIVITY These Guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. 9184. dated 01 April 2005 and published in the Official Gazette on 22 May 2005. and relevant Guidelines or Resolutions shall be applicable. 189 .A.

Provided. Section 7 of R. that.A. if the procuring entity resorts to negotiated procurement. as provided for in the General Appropriations Act (GAA) and/or continuing appropriations. the terms “ABC. Section 5 (b) of R. the procuring entity should conduct another public bidding with re-advertisement and/or posting. 8292 in the case of SUCs. and throughout. However. in connection with this. this IRR-A. 9184 and its IRR-A provides that all procurement should be within the approved budget of the procuring entity and should be meticulously and judiciously planned.A. and Republic Act No.A. No government procurement shall be undertaken unless it is in accordance with approved Annual Procurement Plan (APP). pursuant to Executive Order No. 9184 defines ABC as “The budget for the contract duly approved by the head of the procuring entity. 518). if after two failed biddings.Rules on Adjustment of the ABC Appendix F APPENDIX F GPPB RESOLUTION 07-2005 RULES ON ADJUSTMENT OF THE ABC WHEREAS. otherwise known as “Government Procurement Reform Act” and its Implementing Rules and Regulations Part A (IRR-A) took effect on January 26. For purposes of. conditions and specifications of the project as well as the ABC must be maintained. Section 35. the procuring entity may enter into a negotiated procurement. in case of failure in the negotiated procurement due to all bids exceeding the ABC.” “Approved Budget for the Contract” and “Approved Budget” shall have the same meaning and shall be used interchangeably”. Therefore. 9184 (R. Accordingly. all procuring entities are required to indicate the amount of ABC for the project in the Invitation to Apply for Eligibility and to Bid (IAEB) and in the bidding documents to inform all prospective bidders of the ceiling for their bid price. Republic Act No. series of 1979 (E. 9184). WHEREAS. WHEREAS. the procuring entity must review and update the APP and the corresponding Procurement Planning Management Plan (PPMP) in accordance with the Section 7. the corporate budget for the contract approved by the governing board. Bids higher than the ABC shall be automatically disqualified. then the BAC must make an evaluation of the responsiveness of the ABC to the project at hand. conditions and specifications in the first bidding documents to change the scope of work or to adjust the procuring entity’s cost estimates or specifications. WHEREAS. and decides to revise the ABC accordingly. the procuring entity finds that there is a need to evaluate the responsiveness of the ABC. 518. 2003 and October 8.3 of the IRR-A provides that should there occur a second failure of bidding. the Bids and Awards Committee (BAC) shall modify the terms. Section 31 of abovementioned law provides that the ABC shall be the upper limit or ceiling for bids. Further.O. in case failure of bidding where all bids exceed the ABC. 2003 respectively. it is stated that the Approved Budget for the Contract (ABC) for the contract shall be at all times consistent with the appropriations for the project. the ABC shall be maintained. which must be consistent with approved yearly budget.5 of the IRR-A. in the case of GOCCs and GFIs. WHEREAS. in the case of national government agencies (NGAs). WHEREAS. 190 . the terms. WHEREAS. WHEREAS. and the budget approved by the Sanggunian in the case of LGUs.

This resolution shall take effect immediately. Quezon City wherein the Members of the Board requested that the subject matter be submitted to the Inter-Agency Technical Working Group (IATWG) of the GPPB for further review and evaluation. 2005 at Pasig City. Any succeeding adjustment of the ABC shall be in accordance with these guidelines. and There has been previous modification of the terms. NOW. 2005 at Unit 2506 Raffles Corporate Center. Pasig City. WHEREAS. conditions and specifications of the project based on Section 35 of the IRR-A. by virtue of the powers vested in US by law. on March 17. Ortigas Center. the Members of the GOVERNMENT PROCUREMENT POLICY BOARD. the IATWG discussed. 2. APPROVED this 1st day of April. Emerald Avenue. III. the TSO of the Government Procurement Policy (GPPB) presented the draft rule on adjustment in the ABC in the 2nd GPPB meeting on February 24. There has been failure of bidding for the second time due to all bids submitted exceeding the ABC or no bids have been submitted. hereby RESOLVE to approve and adopt the foregoing rule on adjustment in the Approved Budget of the Contract. during the 3rd GPPB meeting on April 1. the Members of the Board discussed. WHEREAS. except when the project is indivisible. where the technical component is an integral part of the whole that cannot be reduced. in view of the foregoing. 2005 at Unit 2506 Raffles Corporate Center. WE. 2005. The ABC may be adjusted downwards if there is a need to reflect actual market prices and/or scope of work or suit actual field conditions of the project. reviewed and made necessary changes in the said rule.Rules on Adjustment of the ABC Appendix F WHEREAS. The ABC may be adjusted upwards only under the following conditions: 1. Pasig City. considered and unanimously agreed to approve and adopt the proposed rule on adjustment in the ABC. Emerald Avenue. Upon adjustment of ABC. II. THEREFORE. and it constitutes the minimum requirement of the procuring entity for which there are no substitutes. the procuring entity must conduct re-bidding with re-advertisement/posting. at DND Social Hall. for and in consideration of the foregoing. and recommended to present the revised rule on adjustment in the ABC to the GPPB for approval. to wit: I. or failure in the negotiated procurement after two failed biddings. Philippines 191 . Camp Emilio Aguinaldo. Ortigas Center.

these guidelines shall not apply to contracts with water. Telecommunications and Internet Service Providers provided issued by the Government Procurement Policy Board under Resolution No. The procuring entity concerned has substantially undertaken the procurement activities required prior to award of the new contract under R.Guidelines for Contract Extension Appendix G APPENDIX G REVISED GUIDELINES ON THE EXTENSION OF CONTRACTS FOR GENERAL SUPPORT SERVICES 1.0 POLICY STATEMENT As a general policy. and internet service providers. which shall be governed by the Guidelines on Procurement of Water.0 PURPOSE These guidelines are formulated to identify the conditions for the allowance of contract extension and to prescribe the rules and procedures governing the same. dated 6 December 2006. 192 .A. indispensable. 9184) and its Implementing Rules and Regulations Part A (IRR-A).A. 3. or necessary in the operations of a procuring entity. 19-2006. The aforesaid contract extension is undertaken due to circumstances beyond its control and the procuring entity concerned cannot award a new contract within a month after the expiration of the term of the original contract. non-personal or contractual services such as maintenance of equipment and furniture.0 GENERAL CONDITIONS FOR EXTENSION Procuring entities may extend the duration or effectivity of an ongoing contract about to expire. 9184 and its IRR-A. but shall not be limited to. However. or necessary to support the operations of any of the procuring entities or for the enhancement of the welfare of its personnel to include.0 SCOPE AND APPLICATION These guidelines shall govern the extension of ongoing contracts of general support services which are essential. indispensable. extensions of contracts for general support services are discouraged. janitorial and security services. electricity. Electricity. telecommunications. 2. 4. under the following conditions: No contract extension shall exceed one (1) year. The original contract subject of the extension was awarded in accordance with the provisions of Republic Act 9184 (R. for the purpose of averting hiatus in support services essential.

0 REPEALING CLAUSE These Guidelines repeal GPPB Resolution 08-2005 and the amendments thereto per GPPB Resolution 03-2006.0 PROCEDURAL REQUIREMENTS All contract extensions shall be subject to the prior approval of the Head of the Procuring Entity or his/her duly authorized representative upon recommendation of the Bids and Awards Committee. if the proposed contract extension exceeds six (6) months. 7. 5. respectively.Guidelines for Contract Extension Appendix G The contemplated extension is merely an emergency measure to maintain status quo in the operations of the Procuring Entity and to avoid interruption of service. The terms and conditions of the original contract shall not be changed or modified.79 79 Issued through GPPB Resolution 023-2007. dated 28 April 2005 and 11 March 2006. The current service provider has not violated any of the provisions of the original contract. In addition to the foregoing. 193 . 6. the Head of the Procuring Entity or his/her duly authorized representative shall immediately report to the Government Procurement Policy Board in writing of its intent to extend beyond six months. except when changes or modifications will redound to the advantage of the government at no additional cost to the Procuring Entity.0 EFFECTIVITY These guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation. dated 28 September 2007.

4 3. from the point of view of the AFPCOE. The Implementing Unit prepares a payroll that serves as the basis for the payment of wages to the workers.3 3. The Implementing Unit may recruit workers from the locality and directly hire them to provide the required labor for the project being undertaken.Guidelines for Implementation of Infrastructure Projects by AFPCOE Appendix H APPENDIX H GUIDELINES ON IMPLEMENTATION OF INFRASTRUCTURE PROJECTS UNDERTAKEN BY THE AFP CORPS OF ENGINEERS 1. 3. and Air Force. namely: Army.0 POLICY STATEMENT The Armed Forces of the Philippines Corps of Engineers (AFPCOE). through appropriate procurement procedures.2 End-User Agency – The agency that is the beneficiary of the project or source of funds of the project to be implemented by the AFPCOE. has the capability to undertake infrastructure projects. 2. equipment and tools. and manages the project implementation. rules and regulations. “pakyaw” groups to submit price quotations for the labor component required for a specified piece of work. As such.0 DEFINITION OF TERMS 3. as well as procures the construction supplies and materials necessary for project completion.0 PURPOSE AND COVERAGE These guidelines shall streamline and provide rules governing the implementation of infrastructure projects undertaken by the AFPCOE. The “pakyaw” groups shall comprise a group of laborers residing within the vicinity of the project site. 3. and shall not be a regular licensed contractor.1 3. being an integral part of the Government. subject to applicable laws. Implementing Unit – The AFPCOE unit tasked to undertake the project as covered by a Construction Directive issued by the AFP Chief of Engineers or the Chief Engineers of the major services. “Pakyaw” system – The system of hiring laborers where the Implementing Unit invites. it is the policy of the Government to engage the services of the AFPCOE in directly implementing projects as provided in these guidelines. Navy. Projects Undertaken by Administration . Job Order – The hiring of laborers for piece work or intermittent job of short duration not exceeding six (6) months and pay is on a daily or hourly basis.An infrastructure project is said to be undertaken by administration. if the Implementing Unit undertakes the project using its organic personnel through force account and/or “pakyaw” system.5 194 .

Projects related to Civil Defense / Disaster Relief . maintenance. However.0 REQUIREMENTS FOR IMPLEMENTATION 5. national development.0 TYPES OF PROJECTS THAT MAY BE UNDERTAKEN BY ADMINISTRATION The following types of projects may be undertaken by administration by the AFPCOE: 4. In all cases. and repair of facilities and utilities of the Department of National Defense (DND). security and stability. Moreover. Special projects . 5. These include infrastructure projects funded out of the DND appropriations and the proceeds of the disposition of military camps/stations under Republic Act 7227 which are intended for the replication of AFP facilities affected by such disposition. in support of disaster relief and rehabilitation operations. and trust receipts managed by the AFP. End-User Agency infrastructure projects in high security risk areas – Projects funded by other government agencies and covered by a Memorandum of Agreement between them and the DND-AFP.1 All projects undertaken by administration should be included in the Annual Procurement Plan (APP) of the end-user. it is sufficient that the project is included in the approved APP of the end-user or source agency. as specified and determined by the President.Projects categorized as listed below. as determined by the authorized officials of the DND/AFP. 195 .3. BCDA funds. unless the same is related to Civil Defense/Disaster Relief. there must be an approved program of work for the project. but are not limited to. 4. 4. The project funds shall be transferred to the DND/AFP prior to the implementation of the project subject to existing laws and regulations. these projects may only be undertaken by the AFPCOE in areas which are considered as high security risk areas or in areas with potential conflict or peace and order problem.3. to be implemented by the AFPCOE through funds transferred from the end-user agency to the DNDAFP. For projects funded out of appropriations of other agencies. Armed Forces of the Philippines (AFP).2.1. school buildings.1. Projects directed by the President .2.Projects specifically directed by the President to be undertaken by the AFPCOE for the promotion of peace and order.3. housing and resettlement sites. bridges. DND-AFP infrastructure projects – Projects involving the construction. or is an unforeseen contingency. irrigation and electrification projects and other vital facilities and utilities. These include. the construction and rehabilitation of roads.Guidelines for Implementation of Infrastructure Projects by AFPCOE Appendix H 4.Projects specifically directed by the SND as Chairman of the National Disaster Coordinating Council. 4. 4. and guidelines that shall be formulated by the Secretary of National Defense (SND). and other DND bureaus and agencies. the AFPCOE shall only be required to prepare the Project Procurement Management Plan (PPMP) and corresponding APP for projects funded out of DND-AFP appropriations.

3. however. on the other hand. The GHQ-AFP shall release the funds and corresponding Cash Cover to the Implementing Unit subject to the conditions herein specified.5 of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act 9184 (R. Liquidation for funds transferred shall be the responsibility of the Implementing Unit. as necessary. and A&S expenses shall not exceed three percent (3%) of the project cost.2 7. or no technical capability to undertake the project on its own. subject to the approval of the AFP Chief-of-Staff and the SND or his duly authorized representative. The SND or his duly authorized representative shall approve projects undertaken by administration. For projects funded by other agencies. A&E expenses shall be used to support the preparation of plans.0 ARCHITECTURAL AND ENGINEERING (A&E) AND ADMINISTRATION AND SUPERVISION (A&S) EXPENSES The budget for the project may include a provision for Architectural and Engineering (A&E). in accordance with the provisions of Section 23. 6.3 6. shall be used to support the project management requirements of the unit. The funds shall be taken up in the Trust Account for Inter-Agency Transferred Funds for Infrastructure. estimates and other documents related to and necessary for the commencement of the project. material testing and quality control. except for projects under Section 4. but not limited to. travel for project inspection. 196 . A&E expenses shall not exceed three percent (3%) of the project cost. and only if the project is located in a high security risk area or in areas with potential conflict or peace and order problem. specifications. the Chief of Engineers of the AFP or the Engineering Brigade Commander concerned and the Head of the End-User Agency or his duly authorized representative shall enter into a Memorandum of Agreement (MOA).1 hereof. A&S expenses. as well as Administration and Supervision (A&S) expenses. 5. as determined by the authorized officials of the DND/AFP.A.0 FUNDS MANAGEMENT 6. to be supported by the approved program of work in the MOA. 9184). including. The SND shall issue guidelines to determine the appropriate amount of A&E as well as A&S expenses. and overhead expenses.2 End-User Agency may only request AFPCOE to implement projects and transfer funds to it if the End-User Agency has no proficiency to conduct the procurement.1 The approved MOA or the Memorandum shall be the basis for the transfer of funds from the End-User Agency to the GHQ-AFP.Guidelines for Implementation of Infrastructure Projects by AFPCOE Appendix H 5. which will be set up in the books of accounts of the GHQ-AFP. If the end-user is another government entity. subject to existing COA rules and regulations.

The rental fees collected shall be deposited in the National Treasury as mandated by Executive Order 338. The Implementing Unit may hire additional labor to augment their organic personnel.3 8. 1-97 dated 02 January 1997.0 AUTHORITY TO CHARGE FEES FOR RENTAL OF EQUIPMENT In order to ensure the operational readiness and maintenance of the construction equipment of the AFPCOE.4 9. Provided. the same should be provided for in the approved program of work. in accordance with existing laws. however. The AFPCOE shall ensure that unskilled laborers hired are paid the minimum wage applicable to the area.1 AND Subject to the agreement of the DND-AFP and the End-User Agency. In the acquisition of goods. and project management. dated 17 May 1996. the Implementing Unit shall be responsible only for hiring of labor. shall be sourced from the project locality.Guidelines for Implementation of Infrastructure Projects by AFPCOE Appendix H 8. if warranted. 8. SUPPLIES AND MATERIALS. SERVICES FOR THE PROJECTS UNDERTAKEN BY AFPCOE 8. rules and regulations on the lease of equipment. In the case of “pakyaw” system. In case the End-User Agency is responsible for the procurement of construction supplies and materials.A. supplies and services. and that semi-skilled and skilled workers are paid wages not exceeding the prevailing market rates in the area. provision of equipment. Section 3 of the GPPB Guidelines for the Implementation of Projects Undertaken “By Administration” or Force Account shall be followed. In hiring the laborers and workers. the AFPCOE shall abide with the provisions of R.0 PROCUREMENT OF EQUIPMENT. to cover the cost of equipment utilization in the project. The Implementing Unit may likewise lease supplemental equipment and tools as may be needed. and. either the DND BAC or AFP BAC. including construction materials and equipment. operation. 197 . if necessary.2 8. labor. supplies. The AFPCOE may also enter into lease contracts with option to purchase. or End-User Agency BAC shall handle all procurement of equipment. the AFP shall be authorized to charge up to one hundred percent (100%) of the authorized current Department of Public Works and Highways (DPWH) equipment rental rate for the utilization of AFP equipment in the implementation of projects. Furthermore. chargeable against project funds. that the civilian labor component for the project shall not be more than sixty percent (60%). the Implementing Unit may adopt either the direct hiring system or the “pakyaw” system. 9184 and its IRR-A. and shall be disbursed in accordance with the provisions of COADBM-DOF Joint Circular No. including depreciation. repair and maintenance. materials. as far as practicable. consultancy services and other requirements of the AFPCOE in the implementation of its mandate.

80 80 Issued through GPPB Resolution 09-2005.0 EFFECTIVITY These Guidelines or any amendments thereto shall take effect fifteen (15) days after publication in the Official Gazette or a newspaper of general circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. and published in the Official Gazette on 13 June 2005. dated 28 April 2005. 198 .Guidelines for Implementation of Infrastructure Projects by AFPCOE Appendix H 10.

Labor-only Contractor refers to a person or entity that engages in the supply of workers/laborers to an employer but does not have substantial capital or investment in the form of tools.0 Purpose and Coverage These guidelines shall provide rules for the implementation of projects “by administration” by all Departments.Guidelines on Implementation of Infrastructure Projects Appendix I APPENDIX I REVISED GUIDELINES FOR THE IMPLEMENTATION OF INFRASTRUCTURE PROJECTS BY ADMINISTRATION 1. and the workers recruited and placed perform activities directly related to the principal business of the employer. Pakyaw refers to a system of hiring a labor group for the performance of a specific work and/or service incidental to the implementation of an infrastructure project by administration whereby tools and materials are furnished by the implementing agency. 2. the performance or completion of a specific job. the following terms shall be defined as follows: 2. Semi-skilled jobs may 199 2. Semi-skilled Work/Job refers to a work/job which needs some skills but does not require doing the more complex work duties. supervision and control. Job-Contractor refers to a person or entity who carries out. Government Financing Institutions (GFIs).0 Definition of Terms For purposes of these guidelines.7 . Projects undertaken “by administration” by the Armed Forces of the Philippines Corps of Engineers (AFPCOE) shall be governed by the guidelines issued by the GPPB through Resolution 09-2005 dated 28 April 2005. Implementing Agency refers to any government unit undertaking the construction of an infrastructure project.5 2. and Local Government Units (LGUs).2 2. under his own responsibility. machineries. equipment. among others. work premises.1 “By Administration” refers to the procedure by which the implementation of an infrastructure project is carried out under the administration and supervision of the concerned agency through its own personnel. a lump-sum payment is made either through the group leader or divided among the pakyaw workers and disbursed using a payroll system.3 2. Offices and Agencies of the National Government (NGA). Bureaus. service or work which has been farmed out by another for the latter’s benefit. Job-order refers to employment of individuals to undertake piece or lump sum works. For the specific work/service output.4 2. Government-Owned and/or Controlled Corporations (GOCCs). or intermittent jobs of short duration not exceeding six months on a daily basis.6 2. State Universities and Colleges (SUCs).

determining the suitability and needed quantities of materials. by administration or by contract. property. and b.8 Skilled Work/Job refers to work that requires qualifications in which a person uses judgment to determine the machine and manual operations in order to obtain the proper form. or quantity of material to be produced. reading blueprints or other specifications.9 3. 2.3 Any project costing Five Million (P 5.1 Projects undertaken by Administration shall be included in the approved Annual Procurement Plan (APP) of the procuring entity concerned. A job may be classified as semiskilled where coordination and dexterity are necessary. or supervised a project.2 200 . Unskilled Work/Job refers to work which needs little or no judgment that can be learned on the job in a short period of time. or other types of activities which are similarly less complex than skilled work. To undertake projects by administration. or the project to be undertaken by administration has not been previously included.000) or less may be undertaken by administration or force account by the implementing agency concerned. If the original mode of procurement recommended in the APP was Public Bidding but cannot be ultimately pursued. 2.000. own the tools and construction equipment to be used or have access to such tools and equipment owned by other government agencies. 3. quality. but more complex than unskilled work. or making necessary computations or mechanical adjustments to control or regulate the work. have a track record of having completed. similar to and with a cost of at least fifty percent (50%) of the project at hand. Skilled work may require laying out work estimating quality. materials. making precise measurements. or tending or guarding equipment.000. damage or injury. as when hands or feet must be moved quickly to do repetitive tasks. the BAC. or persons against loss. through a resolution shall justify and recommend the change in the mode of procurement or the updating of the APP to be approved by the Head of the Procuring Entity. The job may or may not require considerable strength. the implementing agency must: a.Guidelines on Implementation of Infrastructure Projects Appendix I require alertness and close attention to watching machine processes.000) may be undertaken by the agency concerned only in the following cases: 3. testing or otherwise looking for irregularities. The criteria for evaluating the track record and capability of implementing agencies shall be in accordance with the guidelines to be issued by the Department of Public Works and Highways in consultation with the leagues enumerated under the Local Government Code. A project costing over Five Million (P 5.0 Conditions and Requirements for the use of “By Administration” 3. or inspecting.

000). as certified by the concerned government authority. For projects funded by the National Government and implemented by a Local Government Unit. e. termination or rescission of contract.5 3. the latter shall be required to post the necessary warranty security in accordance with Section 62 of RA 9184 and its IRR-A.Guidelines on Implementation of Infrastructure Projects Appendix I a. to comply with government commitments. In-house labor is undertaken if the workers are employees or personnel occupying regular plantilla positions in the implementing agency. Job-order contracts shall be governed by relevant Commission on Audit (COA) and/or Civil Service Commission (CSC) rules. or Pakyaw labor groups belong to various Barangay Associations contiguous to the project site. The formation of Pakyaw Groups should actively involve the Barangay leaders and the community.000). if the project cost is Five Million (P5. A Project Facilitator (PF) shall be appointed by the implementing agency to assist in the organization of the Pakyaw Groups and in the preparation of the Pakyaw Contracts. emergency arising from natural calamities or where immediate action is necessary to prevent imminent loss of life or property.2 201 . failure to award a contract after competitive bidding for a valid cause. semi-skilled labor shall be recruited within the municipality.7 4. directly or indirectly for works undertaken by administration. PROVIDED. that prior authority shall be obtained from the Secretary of Public Works and Highways. by job-order or through the pakyaw contracting system. Procurement of tools and construction equipment shall be subject to the rules on public bidding. 3. or from the President of the Philippines.0 Pakyaw Contracting System 4. d.6 No contractor shall be used by the procuring entity.4 3. skilled labor shall be recruited within the province but preferably within the Barangay/Municipality. Unskilled labor should be drawn from the Barangay where the project is located.000. 4. areas with critical peace and order problems as certified by the Local Peace and Order Council. 3. upon the favorable recommendation of the Secretary of Public Works and Highways. b. c.000.1 Pakyaw labor shall be drawn from the vicinity of the project. The PF shall. if the project cost is more than Twenty Million (P 20.000. preferably within the Barangay. The manual labor component of projects undertaken by administration may be undertaken in-house by the implementing agency concerned. for purposes of informing the community of the project and of organizing pakyaw groups.000) up to Twenty Million (P20.

after due notice to the Project Facilitator and the Barangay Chairperson. The PF shall cause the registration of all unemployed or underemployed members of the community who are interested to join Pakyaw groups being formed for the project.6 4. In no case may Pakyaw Groups be regular or licensed contractors or organized by and/or under the management of a regular or licensed contractor. There is deemed to be a competition for the award of pakyaw contracts when the number of laborers who registered during the community meeting is more than what is reasonably needed for the lump sum work required under the project. In case of competitive selection.0 Repealing Clause This set of guidelines repeals GPPB Resolution 13-2005 approving and adopting the Guidelines for the Implementation of Infrastructure Projects through Negotiated Procurement under Sec. 4.00) per pakyaw group.5 4. He may be replaced at any time by the group through an election for that purpose. 4. the pakyaw labor contract shall be awarded through competitive selection with at least three (3) Pakyaw Groups participating.2 (d) of IRR-A of RA 9184 and by Administration.4 4. pakyaw groups which were not selected for a particular lump sum work may choose to compete for other works requiring pakyaw groups.Guidelines on Implementation of Infrastructure Projects Appendix I shall convene community meetings. The amount of a pakyaw labor contract per project shall not exceed Five Hundred Thousand Pesos (P500. For purposes of Item 4. with the assistance of the Barangay Chairperson/s. And the winner(s) shall be determined based on what group(s) undertake(s) to deliver the desired output at the lowest rate.3 The Pakyaw workers should be formed into groups of workers based on the lump sum works.4 hereof. the number of members per group shall be determined by the Project Facilitator to ensure that at least three Pakyaw Groups are organized for the competitive selection.7 4. The competitive selection shall be done on a “per-output” basis. Where there is competition for the award of Pakyaw works. The determination by the Project Facilitator of the number of members per Pakyaw Group shall be exercised with regard to the objective of providing work to as many laborers as possible.8 6.000. Any such replacement shall not invalidate any previous Pakyaw Contract. 202 . either per item of output or per lump sum work. Laborers supplied by job-contractors/labor-only contractors are likewise disqualified to become members of the Pakyaw groups when the jobcontracting/labor-only contracting is specifically carried out for the purpose. within the required period. 54. A Group Leader shall be elected from among the members of the group who shall be the signatory to the Pakyaw Contract and any other documents pertaining to the work on behalf of the Pakyaw Group.

dated 06 December 2006.Guidelines on Implementation of Infrastructure Projects Appendix I 7. and published in the Official Gazette on 09 April 2007.81 81 Issued through GPPB Resolution 018-2006. 203 .0 Effectivity These Guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines.

DEFINITION OF TERMS For purposes of these guidelines.3.A. Foreign Contractor refers to a citizen of a foreign country or an entity where Filipino ownership or interest is less than seventy five percent (75%) offering infrastructure related services other than consulting services. 3.1. domestic materials. infrastructure projects. and consulting services by all Departments. however. in consonance with Republic Act No. Bureaus. provided. State Universities and Colleges. corporation or joint venture as defined in Section 24. Government-Owned and/or Controlled Corporations. and locally produced goods. Most-Favored Nation (MFN) status and non-discrimination treatments under applicable laws and treaties are complied with. CONTRACTORS. 9184. GENERAL POLICY In line with the economic policies enunciated in the Constitution. qualified foreign nationals may be eligible to participate in the public procurement of goods.2. sole proprietorship. 5183.Guidelines on Determination of Eligibility of Foreign Bidders Appendix J APPENDIX J GUIDELINES IN THE DETERMINATION OF ELIGIBLITY OF FOREIGN SUPPLIERS. Foreign Supplier refers to a citizen of a foreign country or an entity where Filipino ownership or interest is less than sixty percent (60%) who is engaged in the manufacture or sale of the merchandise or performance of the general services covered by his bid. in light of the principles of economic exchange and expansion of trade and exports with other countries on the basis of equality and reciprocity. SCOPE. the following terms or words and phrases shall be defined as follows: 3. 9184. Government Financing Institutions. 204 . Foreign Consultant refers to an individual.1(2) of the IRR-A of R. infrastructure projects and consultancy services. However. 3. Republic Act No. 2. APPLICATION AND PURPOSE These guidelines shall govern procurement of goods. adopts as general principle the preference for Filipino nationals in the award of Government’s procurement contracts. particularly on the promotion of Filipino labor. 3. Offices and Agencies of the National Government. partnership. with due regard to the government’s initiatives in the prohibition and/or regulation of monopolies and other situations that restrain trade and fair competition. within the framework of national and international economic and trade policies. and Local Government Units and are formulated to clarify procurement policy on the eligibility of foreign bidders to participate in domestically-funded public procurement opportunities. AND CONSULTANTS TO PARTICIPATE IN GOVERNMENT PROCUREMENT PROJECTS 1. that provisions on domestic preference.

where the structures to be built require the application of techniques and/or technologies which are not adequately possessed by a person/entity which meets the seventyfive percent (75%) under Section 23.2 of the IRR-A. subject to Item 6 herein.5. or any corporate body or commercial company duly organized and registered under the laws of the Philippines where Filipino ownership or interest is at least sixty percent (60%). However. 3.2.2. habitually established in business and engaged in the manufacture or sale of the merchandise or performance of the general services covered by his bid. Local Contractor refers to a Filipino citizen or sole proprietorship. 4.1. sole proprietorship.Guidelines on Determination of Eligibility of Foreign Bidders Appendix J 3. AND CONSULTANTS ELIGIBLE TO PARTICIPATE 4. When there is a need to prevent situations that defeat competition or restrain trade. they may be eligible to participate in the bidding. provided that their interest in or ownership of the joint venture shall not exceed twenty-five percent (25%). In the procurement of goods. and of which at least seventy-five percent (75%) of the outstanding capital stock belongs to citizens of the Philippines.1.11. or partnership duly organized under the laws of the Philippines and of which at least seventy-five percent (75%) of the interest belongs to the citizens of the Philippines. or 4. or 4.1. foreign bidders may be eligible to participate under any of the following circumstances: 4. subject to Item 5 herein. When the foreign supplier. corporations or associations of the Philippines. manufacturer and/or distributor is a citizen. duly licensed under Philippine laws to undertake infrastructure activities in the Philippines. 205 . 3. irrespective of the availability of goods from local suppliers. 4. corporation or association of a country the laws or regulations of which grant reciprocal rights or privileges to citizens. Local Supplier refers to any citizen of the Philippines.6. 9184 and complying with the relevant requirements therein. When provided for under any treaty or international or executive agreement. or a corporation duly organized under the laws of the Philippines. CONTRACTORS. or 4.4. corporation or joint venture satisfying the definition of a consultant under the IRR-A of R. regardless of the procurement method used. In the procurement of infrastructure projects.4. foreign contractors may be eligible to participate in the bidding if they form a joint venture with local contractors.3.1. FOREIGN SUPPLIERS.1. When the goods sought to be procured are not available from local suppliers.A. Local Consultant refers to an individual. partnership.1.

5. such as.1. when applicable. 9184 and its IRR-A warrant resort to alternative methods of procurement. the goods sought to be procured are not available from Local Suppliers. capability. supplier. at any time before advertisement for their procurement. in which case. chemicals. 5. 206 . distributor. shall not be modified or changed. it is determined that no Local Supplier is capable to supply the required goods to the Government. 5.3. In cases where the procuring entity intends to procure goods from an exclusive local manufacturer. 5. medicine. as advertised. For purposes of these guidelines. Therefore. as determined by the head of the procuring entity. The procurement of unavailable goods must be through competitive or public bidding unless conditions prescribed under R. but not limited to. the bidding requirements and conditions. the head of the procuring entity or his duly authorized representative shall certify that. THERE IS NEED TO PREVENT SITUATIONS THAT DEFEAT COMPETITION OR RESTRAIN TRADE 6. the head of the procuring entity shall certify that it has advertised the same for public bidding and shall make a statement that no local supplier participated in the bidding and that the same is due to reasons not attributable to the procuring entity. and capacity to render the services required under the project. the procuring entity shall secure a certification from the appropriate Government regulatory body. GOODS ARE NOT AVAILABLE FROM LOCAL SUPPLIERS 5.A. when said method is recommended by the BAC and approved by the Head of the Procuring Entity.Guidelines on Determination of Eligibility of Foreign Bidders Appendix J 4. foods and other consumer products. In the procurement of consulting services. the Bureau of Product Standards of the Department of Trade and Industry (DTI) for electrical products. no local supplier is interested to participate in the procurement process. foreign consultants may be hired if local consultants do not have the sufficient expertise. mechanical/building & construction materials. In addition. or dealer through direct contracting under Section 50 (c) of the IRR-A. In the case mentioned in Item 5. and other related medical devices. manufacturers and/or distributors may be invited to participate in the bidding.4. modifications and/or changes in the requirements and conditions of the bidding shall disallow the procuring entity to resort to invitation of foreign bidders. manufacturers and/or distributors to participate in the procurement process.2.3. goods are not available from Local Suppliers when. that based on its available records.3.1. In the procurement of goods not available from Local Suppliers. for purposes of inviting foreign suppliers. after diligent market research conducted by the procuring entity. 5. and the Bureau of Food and Drugs of the Department of Health (DOH) for drugs. 5. Otherwise. the procuring entity may invite foreign suppliers. If despite the availability of the goods sought to be procured. the goods sought to be procured are not available from Local Suppliers. foreign suppliers. 6.

and in the Philippine Government Electronic Procurement System (PhilGEPS). If the country of the prospective foreign bidder is not in the list. and published in the Official Gazette on 27 March 2005. The sworn statements mentioned above shall be validated during posqualification of bidders. 7.3. 8. citing its country’s relevant laws. 207 . an invitation to foreign manufacturers to submit a manifestation of its intention to participate. are allowed to participate in government procurement projects. a supplier. In the procurement of goods. the procuring entity shall require from the said bidder the submission of a sworn statement that the country of which he is a citizen or in which the corporation or partnership is organized and registered grants reciprocal rights or privileges to Filipino citizens. it shall. Should any foreign manufacturer submit such manifestation within the period prescribed in the invitation. with which the Philippines enjoys reciprocal rights on matters of eligibility of its nationals in public procurement abroad. or dealer. maintained by the Department of Foreign Affairs (DFA) and as shown in the GPPB website. the procuring entity may proceed with the intended procurement through direct contracting with the said exclusive local manufacturer. If no foreign manufacturer submits such manifestation within the said period.82 82 Issued through GPPB Resolution 018-2005. supplier. RECIPROCITY RULE IN THE PROCUREMENT OF GOODS 7. post through the website of the procuring entity. corporation or association of a country whose laws or regulations grant reciprocal rights or privileges allowing Filipino nationals to participate in public procurement in their country.1. the procuring entity shall commence the conduct of public bidding. distributor. 7.Guidelines on Determination of Eligibility of Foreign Bidders Appendix J and reflected in the approved Annual Procurement Plan. dated 12 September 2005. before commencing any negotiations with a local supplier. manufacturer and/or distributor who is a citizen. EFFECTIVITY These Guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. if any. 7.2. The procuring entity shall confirm from the list of countries. corporations or associations.

9184). 2. damage.A. To establish the legal parameters for the effective implementation of the legal assistance and indemnification provided for BAC members and BAC Support Staff. bureaus. offices and instrumentalities of the Government. or injury caused to them by reason of the lawful performance of their duty. 9184. and Local Government Units (LGUs). Government Financial Institutions (GFIs). Indemnification. 3. 208 . SCOPE These guidelines shall govern the indemnification package for public officials providing services in and for the Bids and Awards Committee (BAC) pursuant to and in accordance with Section 73 of Republic Act No. Refer to the regular and provisional members of the BAC determined accordance with Rule V of the IRR-A. BAC members. These guidelines shall apply to all branches. agencies. PURPOSE These guidelines are formulated to meet the following objectives: To prescribe the rules and procedures in granting legal assistance and indemnification to the Bids and Awards Committee (BAC) members and BAC Support Staff.Guidelines for Legal Assistance and Indemnification Appendix K APPENDIX K GUIDELINES FOR LEGAL ASSISTANCE AND INDEMNIFICATON OF BIDS AND AWARDS COMMITTEE (BAC) MEMBERS AND ITS SUPPORT STAFF 1. State Universities and Colleges (SUCs). 9184 (R. DEFINITION OF TERMS BAC.A. otherwise known as “Government Procurement Reform Act” and its Implementing Rules and Regulations Part A (IRR-A). damage or injury arising from the lawful exercise of their functions is implemented in accordance with the provisions of R. To ensure that the mandate to insulate government procurement personnel from the unnecessary loss. Refers to the assistance or remuneration given to the members of the BAC and/or the BAC Support Staff for any loss. departments. including Government-Owned and/or Controlled Corporations (GOCCs). Refers to the Bids and Awards Committee as defined and established in accordance with Rule V of the Implementing Rules and Regulations Part A (IRR-A) of RA 9184.

Refers to the services of a private lawyer or external counsel engaged by or in behalf of the members of the BAC and/or the BAC Support Staff resulting from the filing against him of any criminal or civil action or proceeding for acts made in connection with the lawful performance of his functions. Refers to the members of the BAC Secretariat and the Free Legal Assistance 1. The free legal assistance shall cover actual cost of suit and attorney’s fees. The procuring entity shall. indemnify a BAC member and/or any of the BAC Support Staff who was or is a party to a pending or completed action. unless such action.Guidelines for Legal Assistance and Indemnification Appendix K Private Legal Assistance. proceeding. For this purpose. Refers to the insurance policy purchased and maintained by the procuring entity in favor of a member of the BAC and/or the BAC Support Staff against any liability asserted against or incurred by the person in any such capacity or arising out of the person’s status as such.A. Medical Assistance. The BAC member or BAC Support Staff must have not been adjudged as guilty of gross negligence. 4. 209 . 4.000. or grave abuse of discretion. misconduct. The BAC member or BAC Support Staff concerned must have engaged the services of a private lawyer or external counsel. criminal or administrative in nature brought against him in the performance of his official functions as BAC member or as BAC Support Staff. Technical Working Group duly designated by the procuring entity pursuant to the provisions of Rule V of the IRR-A of R.00) per appearance which shall be paid by the procuring entity. 3. suit or proceeding whether civil. “injury” means any bodily impairment arising from and in the course of procurement-related activities. The remuneration given by the procuring entity for any injury or disability incurred by members of the BAC and/or the BAC Support Staff in the lawful performance of their official functions and duties. Liability insurance. 5. to the fullest extent permitted by these guidelines. 9184. The free legal assistance shall not cover: a) any action or suit initiated by a BAC member or BAC Support Staff in his personal capacity or in behalf of the procuring entity. GENERAL CONDITIONS BAC Support Staff. or claim was authorized 2. The attorney representing the BAC member or BAC Support Staff shall be entitled to a maximum of Five Thousand Pesos (Php5.

The liability insurance policy shall cover only those liabilities asserted against the public official and incurred by him in his capacity as such BAC members or BAC Support Staff as the case may be. 4. The BAC member or BAC Support Staff shall be entitled to actual. 5. or b) 6. or grave abuse of discretion in the performance of their duties and functions.Guidelines for Legal Assistance and Indemnification Appendix K by the head of the procuring entity or the approving authority therein. 3. such BAC members or BAC Support Staff shall not be adjudged in such action or proceeding to be guilty of gross negligence. misconduct. the term “loss” shall include judgments. as well as all reasonable fees and other expenses incurred by such persons in connection with any administrative. and to which the procuring entity had been advised by counsel that the person to be indemnified have not committed gross negligence. For purposes of this issuance. expenses for settlement or compromise. Provided further. or criminal action. 6. the attorney representing the BAC member or BAC Support Staff shall be entitled to attorney’s fees awarded by the court. Likewise. suit or proceeding to which they may be or have been made a party by reason of the lawful performance of their official functions and duties in such capacity. Medical assistance shall be provided to BAC members and BAC Support Staff for Injuries/disabilities incurred in the lawful performance of their official functions and duties. 2. The insurer shall pay for the loss arising from the claim or suit made against the BAC members or BAC Support Staff during the policy period wherein they serve in such capacity. any action or suit initiated by the Government against the BAC member or BAC Support Staff. Liability Insurance 1. moral. The procurement of liability insurance shall be subject to the setting of schedule of premium by the GPPB. Medical Assistance 1. misconduct. indemnification shall be confined only to matters covered by the settlement. civil. or grave abuse of discretion or guilty of any other complaint or charges. The procuring entity shall have the responsibility to procure and maintain adequate liability insurance for and in behalf of its BAC members or BAC Support Staff. and exemplary damages when awarded by the court. 210 . In the event of settlement or compromise. 7. that.

The medical assistance herein provided shall consist of indemnification for medicines. 5. If the BAC member or its support staff is found to be not guilty for gross negligence. 4. verify and validate the authenticity of the documents presented by the claimant.2. PROCEDURE FOR GRANTING LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS The claimant(s) shall file their respective claim(s) for legal assistance. 6. misconduct. Upon finding that all the requirements have been duly complied with and that all the necessary documents submitted are genuine. Provided further. he shall liquidate his cash advances by presenting receipts of payment and other necessary documents mentioned in Item 5. misconduct. that they exercised due diligence to prevent harm or injury to themselves. The head of the procuring entity shall be given at least fifteen (15) to thirty (30) calendar days to examine. or grave abuse of discretion. review. On the other hand. laboratory and hospitalization expenses. Indemnification shall only be made upon presentation of the proof of payment in connection with the injury or disability suffered. if the BAC member or its support staff is found to be guilty for gross negligence. it shall then order the processing of the claims and the subsequent release of funds for the approved claims. with the head of the procuring entity. Any expenses incurred in advance by the claimant arising from the performance of his official functions in such capacity shall be subject to reimbursement upon submission of the necessary documents and approval thereof by the head of the procuring entity. 5. The medical assistance granted herein shall be granted to the claimant as a matter of right and subject to the conditions mandated by law. The claimant or his/her relatives must notify the head of the procuring entity within seven (7) calendar days from the occurrence of the injury or disability. substantiated by receipts and other supporting documents. or medical assistance as the case may be. provided that the amount claimed shall not exceed the actual amount incurred. The claimant(s) shall be entitled to indemnification for any injury or disability resulting from the performance of their official functions as defined by law and without any contributory negligence on their part. or 211 . 3. and shall secure the approval of the latter on the terms and conditions of the engagement of counsel.Guidelines for Legal Assistance and Indemnification Appendix K 2. liability insurance.

dated 07 October 2005. EFFECTIVITY These guidelines or any amendments thereof shall take effect within fifteen (15) days after publication in the Official Gazette or a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines. 8. AMENDMENTS In the implementation of these guidelines. FUNDING SOURCE The funds to be used for the grant of the free legal assistance. and published in the Official Gazette on 09 January 2006. he shall pay the cash advances made through salary deductions or reimbursement. Protest fees. 212 . and any other additional funds derived from other income-generating activities of the agency may be used to augment the funding source provided in this section. the GPPB may introduce modifications thereto through the amendment of its specific provisions as the need arises.Guidelines for Legal Assistance and Indemnification Appendix K grave abuse of discretion. 6.83 83 Issued through GPPB Resolution 021-2005. 7. liability insurance or medical assistance shall be taken from the agency’s annual appropriation. proceeds from the sale of bidding documents.

as the ceiling. necessitates procurement from major suppliers for purpose of economies of scale. Total Contract Price . To prescribe the rules and procedures on the use of index-based pricing scheme for the procurement of POL.refers to the difference of the WPP of the prospective supplier less discounts given plus delivery cost. b.1. to meet the volume requirement for each type of POL product. and the sum of MOPS or ICIS-LOR assessments. in case of procurement using the MOPS or ICIS-LOR index. To identify the conditions for the applicability of the index-based pricing scheme in the procurement of POL products by a procuring entity.Revised Guidelines on Index-Based Pricing Appendix L APPENDIX L REVISED GUIDELINES ON INDEX-BASED PRICING FOR PROCUREMENT OF PETROLEUM. AND LUBRICANT PRODUCTS 1. and lubricants (POL) in accordance with Section 61 of Republic Act No. Bid Price. SCOPE AND APPLICATION These guidelines shall govern the use. Bulk Procurement – refers to any procurement which. 9184 (R. government financial institutions and local government units when POL is a major operational requirement necessary for the prosecution of their principal mandate. and the GPPB Guidelines for Contract Price Escalation. oil.2. 3. its departments.A. in case of procurement using the WPP index. PURPOSE These guidelines are formulated to meet the following objectives: 2. 2. DEFINITION OF TERMS a. government-owned and/or controlled corporations.refers to the aggregate of the amounts set by a procuring entity. offices and agencies. under extraordinary circumstances. the premium imposed and delivery cost. by the totality of its POL requirements and by their sheer volume. 2. bureaus. These rules and procedures shall govern the procurement of POL by the national government. otherwise known as “Government Procurement Reform Act” and its Implementing Rules and Regulations Part A (IRR-A). including state universities and colleges. OIL. Procurement of POL from retailers or dealers other than major suppliers as hereafter defined. 213 . or from those who are engaged in the business of selling the same to the general public for ultimate consumption and which are sold at pump prices shall not be subject to these guidelines. 9184). c. of an index-based pricing scheme for procurement of petroleum. the value of which shall not exceed the approved budget for the contract (ABC).

l. margin. For this purpose.refer to POL wholesale suppliers and who. Mean of Platts Singapore or MOPS . f. Petroleum. a publishing/trading house based in Singapore which publishes daily information on oil price and shipping rates. h. including state universities and colleges. oil and lubricant in the Philippines. i. bureaus. which give(s) rise to price movements in petroleum and its derivative products. etc. or series of events or occurrences. Premium .) to arrive at a landed cost of petroleum.for purposes of these guidelines. Independent Commodity Information System – London Oil Report or ICIS-LOR. foreign exchange. Extraordinary Circumstance .. and all other costs as verified and confirmed by the Department of Energy (DOE). storage/handling/throughput fees. 4. j. shall refer to those enumerated in Section 5 hereof. k. in the operation of their business. 214 .Revised Guidelines on Index-Based Pricing Appendix L d. a private entity. profit. and Lubricant or POL Products . g.refers to a consumption tax on the sale or importation of goods and services in the ordinary course of business.. before or during contract implementation.refers to an information provider for the chemical and oil industry. based in London with office in Singapore Major Suppliers .refers to the total deductions from the WPP. or oil terminal/depot to delivery point for deliveries ex-depot Discounts .e. and is part of the Reed Business Information Ltd. Oil. Expanded Value Added Tax (E-VAT) . i.refers to the mean of the high and low components of a Platts assessment for oil cargoes loading from Singapore as officially released by Platts.refers to the reference fuel prices individually set by local refiners and traders subject to periodic changes based on the movement in crude oil prices. either maintains a refinery in the Philippines or directly imports POL products from production or trading venues. government financial institutions and local government units where POL procurement is a major requirement in their operations. m. CONDITIONS FOR APPLICABILITY OF THESE GUIDELINES These guidelines shall be applicable in cases of bulk procurement of POL by the national government. ocean loss. its departments. government-owned and/or controlled corporations. offices and agencies. refinery to delivery point for deliveries exrefinery.e. Delivery Cost . ocean freight. Wholesale Posted Price or WPP.refers to all applicable and reasonable cost or expenses (i. e. procuring entities intending to use these guidelines for their POL procurement shall notify the Government Procurement Policy Board (GPPB) in writing. marine insurance.refers to an event or occurrence. bank charges.refers to cost of freight incurred by the Supplier from the source to the delivery point.

PRICING FOR PETROLEUM. In the procurement of all types of lubricant products.Revised Guidelines on Index-Based Pricing Appendix L POL requirements shall be considered major if the use of the same are necessary in the primary operation of the procuring entity and in the prosecution of its principal mandate.4. Singapore. iii.3. The foregoing list shall be subject to annual review. The duration of the contract to cover the POL requirement of the procuring entity shall not exceed one (1) year. WPP. 6. without prejudice to the applicability of any guidelines that may govern multi-year contracts. 215 . INDEX-BASED PRODUCTS 5. 6. the Bid Price shall be determined based on the average ICIS-LOR assessments of the immediately preceding calendar month prior to the date of bid opening as officially released by ICIS-LOR. AVGAS 5. Unleaded or Regular Gasoline. Premium. MOPS AND ICIS-LOR-BASED PRICING SCHEME 6. 5. iii. Automotive Diesel Oil Jet A-1. 5. The MOPS index shall be used in the procurement of the following products: i. the Bid Price shall be determined based on the average MOPS of the immediately preceding calendar month prior to the date of bid opening. ii. Low Sulfur Fuel Oil. then it shall adopt the ICIS-LOR index. OIL AND LUBRICANT The WPP index shall be used in the procurement of the following products: i. subject to the rules under Item 7 hereunder. iv. ii. For the procurement of products using the MOPS index. subject to the rules under Item 7 hereunder. If its assessment or costbenefit analysis indicates that index-based pricing is more advantageous.1. the procuring entity may adopt either a fixed or index-based pricing. 6.1. the Bid Price shall be determined based on the prospective supplier’s WPP ten (10) days prior to the date of bid opening as verified with the Oil Industry Management Bureau of the Department of Energy.3. 5. Industrial Fuel Oil. modification or reclassification by the GPPB. For the procurement of lubricant products using the ICIS-LOR index.2.2. or as often as it deems necessary. For the procurement of products using the WPP index. and Industrial Diesel Oil.

if any. 9. ACTUAL PRICES PAYABLE 9.4. The amount to be paid by the procuring entity for POL requirements actually delivered and duly received by it shall be: (i) the WPP less the discounts offered. BID AND CONTRACT PRICES 7. the discount or premium and the delivery cost stated in the contract shall be fixed from the time of the bidding through the term of the contract. For staggered deliveries. On the other hand.1. 8. or (ii) the MOPS or ICIS-LOR. For contracts stipulating consignment whereby a supplier makes a delivery of POL products to a procuring entity’s holding area and payment is based on volume consumed. referenced to the average of the MOPS or ICIS-LOR of the calendar month immediately preceding the date of actual delivery. BID EVALUATION AND COMPARISON OF BIDS 8. the total contract price for the project would have been consumed notwithstanding that the requirements were not 9. For purposes of payment. the Bid Price for procurement using the MOPS and ICISLOR indices in accordance with Sections 5. Bid Prices for procurement using the WPP index shall be the individual WPP of the prospective supplier less the discounts given. Cost for E-VAT and other governmental costs which fall equally on all prospective suppliers are presumed to be included in the computation of the bid price. at the date of actual delivery. after every delivery.2. plus the premium imposed and the delivery cost charged. If during contract implementation. plus delivery cost.2. the procuring entity shall make.1. 9. The same rule shall apply for contracts where a major supplier delivers the POL products to the procuring entity through its authorized stations and/or distribution centers.3.2. an accounting of the amount actually payable based on the date of the delivery receipt to determine the allowable unit/volume that may still be ordered from the remaining amount allotted for each POL product. 7. For purposes of bid evaluation and/or comparison of bids. the Lowest Calculated Bid shall be determined by identifying the bidder who offered the lowest Bid Price.1. regardless of the index used. the actual price payable shall be determined based on the weighted average of the applicable index from the date the order is placed up until the cut-off date for payments agreed upon by the parties. 216 . The procuring entity shall be allowed to make adjustments in the units/volume to be delivered per type of product to conform to the remaining amount in the total contract price. if any. 9. 8.3 hereof shall be the MOPS or ICIS-LOR plus premium and delivery cost charged by the bidder.Revised Guidelines on Index-Based Pricing Appendix L 7. plus the delivery cost charged.2 and 5.

EFFECTIVITY These Guidelines amend GPPB Resolution No. dated 31 May 2007. 217 .Revised Guidelines on Index-Based Pricing Appendix L fully delivered in the units/volume contemplated. This provision shall form part of the bidding documents. and shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies. 10.84 84 Issued through GPPB Resolution 011-2007. and published in the Official Gazette on 13 August 2007. 09-2006. dated 10 April 2006. no further order and payments shall be made.

A.2 Telecommunications (Landline and Cellular Phones) 3. whether national or local. This provision does not apply to the purchase of bottled water or to the procurement by any agency of the government.2 3. and Provide additional guidelines to ensure that contractual arrangements with service providers continue to be favorable to the interest of the government applying cost-benefit analysis and. telecommunications. TELECOMMUNICATIONS AND INTERNET SERVICE PROVIDERS 1.A.A. SCOPE AND APPLICATION These guidelines shall govern the procurement of water. PURPOSE These guidelines are formulated to meet the following objectives: 2.1 Water and Electricity Services Considering that water and electricity service providers are granted exclusive franchises to operate within a specific territory. and internet service providers by government agencies as end users. Telecommunications. in its operation as water or electric concessionaire (e. electricity. and general support services which may be needed in the transaction of public business or in the pursuit of any government undertaking. electricity. 9184. Further. 3. and telecommunication services. Electricity. 2. Section 5 (h) of Republic Act No.Guidelines on Procurement of Water. PROCEDURES AND GUIDELINES 3. 9184 that applies to the procurement of water.2. remain consistent with the principles of R. and internet service providers. telecommunications (landline and cellular phone). Such definition necessarily includes the procurement of internet service providers and public utility services. thus. Their continuity ensures proper coordination within the organization and the efficient delivery of public service.A. 9184. procurement of water and electricity services shall be done through direct contracting under Section 50 (c) of the Implementing Rules and Regulations Part A (IRR-A) of R. (R. such as water. and Internet Service Providers Appendix M APPENDIX M GUIDELINES ON PROCUREMENT OF WATER.) 9184 defines goods as referring to all items. materials. repair of pumping stations). telephone 218 . supplies. ELECTRICITY. electricity.1 Prescribe the appropriate method under R.g. 2.1 Existing Lines Telephone and cellular lines are critical in the day-to-day pursuit of public business.

Thus: 3. For instance. 3.2. any public service dependent on such access. 3. the following procurement methods are prescribed: 3. Electricity. is not satisfied with the performance of its previous service contractor. then the procuring entity should bid said services in accordance with Subsection 3. 3.3 Internet Service Providers (ISP) 3.2. into with 3.2 of these guidelines. then the procuring entity may simply renew its services. 9184 may be resorted to by the procuring entity if additional lines are needed during the year.2.A.g. For this purpose.2.1 Contractual agreements previously entered telecommunication companies shall be respected.2. the requirement under Section 51 (c) of the IRR-A that the repeat order may only be availed of within six (6) months from Notice to Proceed may be dispensed with. and Internet Service Providers Appendix M and cellular numbers are usually identified with certain government agencies or a range of public services that the government may offer (e.1 Contractual agreements previously entered into with ISPs shall be respected. 3.Guidelines on Procurement of Water.2 At the end of each year. 117). changing ISPs entails interruption of internet access and.3 If results of said assessment or cost-benefit analysis continue to favor the existing service provider. 3. If it does not. direct contracting.3. competitive public bidding.1.3..2. Telecommunications. thus.2. cabling) necessary in the provision of internet access.1.1 If there is more than one service contractor operating within the area.g.2. As such: 3. after conduct of a cost-benefit analysis as required in the preceding subsection. however.2 New Lines If the procuring entity does not have an existing telephone service contractor or. Further.1.2 If there is only one service contractor operating within the area. the procuring entity must assess the quality of service provided by its telecommunication service provider. 219 . Changing ISPs every year may therefore prove to be more costly to government as every new ISP would have to charge the procuring entity for this initial investment. it must compare the cost charged by its existing telephone or cellular phone service provider and the range of services it offers as against other service providers in the area.4 Repeat order under Section 51 of R.2..1 Existing ISPs ISPs provide the initial infrastructure requirements (e.1.2.1.

It shall include the estimated budget for each service and the procurement method employed.2 At the end of each year. 3. and internet service shall be stated in the Annual Procurement Plan of the procuring entity. If it does not. 4. 5. then the procuring entity should bid said services in accordance with subsection 3.2 If there is only one service contractor operating within the area.3. EFFECTIVITY These guidelines shall take effect immediately.3 If the results of said assessment or cost-benefit analysis continue to favor the existing ISP. electricity. the procuring entity must assess the quality of service provided by its ISP. direct contracting. or Commission on Information and Communication Technology. 3. dated 06 December 2006. the following procurement methods are prescribed: 3.3.1.85 85 Issued through GPPB Resolution 019-2006. however. It may also consider new technologies that may prove less costly. and published in the Official Gazette on 09 April 2006. it must compare the cost charged by said ISP and the range of services it offers as against other service providers in the area.3. procuring entities are encouraged to consult the National Telecommunications Commission. and Internet Service Providers Appendix M 3.2 New ISPs If the procuring entity does not presently engage an ISP or. REPORTORIAL REQUIREMENT Procurement of water.2. For instance. or other relevant government agencies regarding any new policy or directive in the implementation or use of new technology. In assessing the quality of service provided by its ISP. 220 . Telecommunications.3.1 If there are more than one service contractor operating within the area. 3. Electricity.2 of these guidelines. telecommunications.1. after conduct of a cost-benefit analysis as required in the preceding subsection.3. public bidding.2.Guidelines on Procurement of Water.3. then the procuring entity may simply renew its services. is not satisfied with the performance of its existing ISP.

Thus. and Procurement of goods from the Procurement Service. Refers to a tool used to aid decision-making by evaluating the benefits to be attained from an action against the costs for its implementation. Cost-benefit Analysis.A. 1989. procurement from another agency of the government is more efficient and economical for the government. it acknowledges that. referred to as Agency-to-Agency Agreements). 755 and Executive Order No. 359. which is tasked with a centralized procurement of commonly used goods for the government in accordance with Letters of Instruction No. 9184. 3. 221 . POLICY RATIONALE It is the general policy of government to purchase its requirements from the private sector. Infrastructure projects undertaken through the Armed Forces of the Philippines Corps of Engineers (AFPCOE) which shall continue to be governed by the Guidelines on Implementation of Infrastructure Projects Undertaken by the AFP Corps of Engineers under Government Procurement Policy Board (GPPB) Resolution No. s. PURPOSE These guidelines are being issued to strictly prescribe the conditions when a government agency may procure from another government agency without need of public bidding pursuant to the 1st paragraph of Section 53 (e) of the IRR-A of R. (R. Only in highly exceptional cases.A.) 9184 and its Implementing Rules and Regulations Part A (IRR-A). b. all procurement shall be done through open and competitive public bidding. However. in accordance with Section 10 of Republic Act No. and when justified by the conditions prescribed under these guidelines. SCOPE AND APPLICATION The following are excluded from the application of these guidelines: a. 9184 (hereinafter. the following terms shall have the corresponding meanings: a.A.Implementing Guidelines On Agency-To-Agency Arrangements Appendix N APPENDIX N IMPLEMENTING GUIDELINES ON AGENCY-TO-AGENCY AGREEMENTS Negotiated Procurement under Section 53 (e) of IRR-A 1. 09-2005. can the procuring entity procure from another government agency under the 1st paragraph of Section 53(e) of the IRR-A of R. 2. DEFINITION OF TERMS For the purpose of these guidelines. in some exceptional cases. 4.

infrastructure. which are vested with proprietary functions to enable them to compete with the private sector. or a distinct unit therein. are excluded from the definition of Servicing Agency. Total amount of all goods. iii. and infrastructure projects undertaken or to be undertaken through Agency-to-Agency Agreements shall not exceed twenty-five percent (25%) of the Procuring Entity’s total procurement budget for each category (i. 9184. iv. GENERAL CONDITIONS a. which purchases goods.A.e. government-owned or controlled corporation (GOCC). consulting. Servicing Agency has the mandate to deliver the goods and services required to be procured or to undertake the infrastructure project or consultancy required by the Procuring Agency. In addition. instrumentality.Implementing Guidelines On Agency-To-Agency Arrangements Appendix N b. c. Job-order contracts shall be governed by the applicable rules of the Commission on ii. not qualified to act as Servicing Agency under the 1st paragraph of Section 53(2) of the IRR-A of R. or engages the services of another agency to undertake an infrastructure project or render consultancy services.A. 5. by administration or by contract. or provide consulting services. Servicing Agency shall refer to the agency which delivers the goods. or consulting) as reflected in its approved APP. or supervised a project. 222 . Agency-to-Agency Agreements may only be resorted to if the following conditions are complied with: i. and thus. office. and It shall not directly or indirectly engage private contractors to undertake the project and may only implement the infrastructure project in-house. by job-order. It must have a track record of having completed. in accordance with Section 53(e) of the IRR-A of R. and Servicing Agency owns or has access to the necessary tools and equipment required for the project. as amended. undertakes the infrastructure project. Procuring Agency shall refer to any of the various units of the Government. Conduct of a Cost-benefit Analysis by the Procuring Agency indicating that entering into an Agency-to-Agency Agreement with the Servicing Agency is more efficient and economical for the government. for procurement of infrastructure projects under Agency-to-Agency agreements. 168 or the Corporation Code of the Philippines. or through the pakyaw contracting system.. the Servicing Agency must comply with the following conditions: i. similar to and with a cost of at least fifty percent (50%) of the project at hand. However. In-house labor is undertaken if the workers are employees or personnel occupying regular plantilla positions in the Servicing Agency. GOCCs incorporated under Batas Pambansa Blg. or a local government. goods. bureau. including a department. b. ii. 9184.

A. e. e. d. d. f. Upon approval of the BAC resolution. Pakyaw Contracting System shall be governed by Section 4 of the GPPB Revised Guidelines for the Implementation of Infrastructure Projects by Administration. in the following areas: i. the Procuring Agency may require the Servicing Agency to post a performance security under Section 39 of R. 223 .A. All procurement to be undertaken by the Servicing Agency. c. 9184 and/or post a warranty security under Section 62 of R. the BAC shall issue a resolution recommending the use of Agency-to-Agency Agreement to the head of the Procuring Agency. taking into consideration the following factors: prevailing standard cost for the project in the market. including those required for the project. iii. Pursuant to Section 3 (c). and Any conspicuous place in the premises of the Procuring Agency. Philippine Government Electronic Procurement System or (PhilG-EPS). shall continue to be governed by the provisions of R.Implementing Guidelines On Agency-To-Agency Arrangements Appendix N Audit and/or Civil Service Commission. All projects undertaken through Agency-to-Agency Agreements shall be subject to pertinent budgeting. 7. Based on the assessment and recommendation of the end-user unit. b. PROCEDURAL REQUIREMENTS a. and such other factors. Website of the Procuring Agency and its electronic service provider.A. It shall likewise secure a certificate from the relevant officer of the Servicing Agency that the latter complies with all the conditions prescribed under Section 5 (a) and (b). 6. For purposes of transparency. the Procuring Agency shall post for a period of seven (7) calendar days. general information pertaining to the procurement activity conducted. accounting. the MOA shall reflect the agreement of the parties with regard to the posting of a performance bond and/or a warranty security. if any. The end-user unit shall undertake a Cost–benefit analysis. EFFECTIVITY These guidelines shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.86 86 Issued through GPPB Resolution 018-2007. 9184. ii. c. and auditing rules. 9184. the Procuring Agency shall enter into a Memorandum of Agreement (MOA) with the Servicing Agency. absorptive capacity of the Servicing Agency. Subject to appropriate guidelines. dated 31 May 2007.

3. and local government units.4 of these Guidelines. offices and agencies.3.4. bureaus. DEFINITION OF TERMS 3. 9184). 3. including state universities and colleges. .1. SCOPE AND APPLICATION The Guidelines shall apply to national government. 2. The formula for this method is provided in Item 6. It shall not apply to lease of government properties for private use. Refers to the method of computation in determining reasonableness of rental rate using a depreciation rate determined by the Bids and Awards Committee (BAC) or its Technical Working Group (TWG) after meticulous ocular inspection of the actual condition of the real estate.1 of these Guidelines. its branches. Refers to the method of comparing the price quotations obtained pursuant to Item 5. constitutional offices. Refers to the interest rate on the cost or value of the property. Comparative Price Analysis. Capitalization Rate. It shall assist government agencies in determining reasonableness of rental rates prior to entering into lease contracts. PURPOSE The Guidelines on Lease of Privately-Owned Real Estate (the “Guidelines”) set forth the rules and procedures in entering into contracts for lease of privately-owned real estate by government agencies for official use pursuant to Section 53(i) of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act 9184 (R. Refers to a tool used to aid decision-making by evaluating the benefits to be attained from an action against the costs for its 224 3.3 of these Guidelines. Cost-benefit Analysis. The formula for this method is provided in Item 6. Refers to the method of computation in determining reasonableness of rental rate using a depreciation rate based on the Table of Structural Depreciation provided by the Department of Public Works and Highways (DPWH) under Appendix B of these Guidelines. Computation based on Observed Depreciation.2. 3. government-owned and/or –controlled corporations. Computation based on Straight Line Depreciation.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O APPENDIX O IMPLEMENTING GUIDELINES FOR LEASE OF PRIVATELYOWNED REAL ESTATE 1.A. 3. government financial institutions.5.5 of these Guidelines against the prevailing market rate of lease contracts within the vicinity of the selected location as determined pursuant to Item 5. departments.

or corporation having absolute ownership over the real estate to be leased. Refers to the estimated total cost of replacing the real estate with the same utility. and/or maintenance of the real estate. 4. Estimated Unit Construction Cost. 3. 4.7. Refers to the decrease in the value of a real estate due to ordinary wear and tear brought about by its use. It is more preferred that government agencies lease publicly-owned real estate from other government agencies. Rentable Area. association. 3. if no publicly-owned real estate is available or if cost-benefit analysis indicates that lease of privately-owned real estate is more favorable to government. 3. 3. Refers to the total area of the real estate in square meters being occupied or to be occupied by the Lessee less the common area like lobby. furnishing. association. the costs for the transfer to. The respective Estimated Unit Construction Cost of types of real estate for each region may be obtained from the Bureau of Maintenance of the DPWH. and other areas of common use by the public or upper floor occupants. machine room for air conditioner. Refers to any government agency temporarily occupying a real estate on the basis of a contract executed with the private individual. including free services and facilities offered by the Lessor are considered. Lessee. facilities and other requirements. However. 3. 3. and include a market analysis of prevailing lease rates within the vicinity of the selected location. Real Estate. GUIDING PRINCIPLES 4. 3. neighborhood data and real estate structural condition. elevator hall. where payment is usually made on a monthly basis. partnership. the cost-benefit analysis should consider. 3. cooperative. Refers to any private individual. Refers to the amount paid by the Lessee for the use and/or occupancy of the privately-owned real estate to the Lessor. among others. procuring entities shall have the option to enter into lease 225 .13. Refers to land and buildings.11. or corporation having absolute ownership over such real estate.1. functionality. Reproduction Cost. Lessor.9. cooperative. 3.6. partnership.2.12. Refers to the rating factor where locations and site conditions. Refers to the estimated prevailing cost of construction per square meter of the real estate being appraised. Depreciation. For purposes of these Guidelines. including office spaces or units.14. Factor Value. The rating factors and its corresponding weights are provided in Appendix A of these Guidelines. stairway. common comfort room.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O implementation.10.8. Rental.

226 . such as association dues. In no case shall the rental rates. The recommendation of the end user unit to lease a privately-owned real estate shall be supported by the necessary analytical data establishing the benefits to the procuring entity if it enters into a lease contract.5. PROCEDURES AND GUIDELINES 5.1. 4. The Approved Budget for the Contract (ABC) of lease shall be determined using the mid point of the range obtained from the results of the market analysis on the prevailing lease rates for real estates within the vicinity of the selected location complying with the criteria and technical specifications of the end user unit.3.A. rental rates are considered reasonable when they represent or approximate the value of what the Lessee gets in terms of accommodation. and the Lessor gets an equitable return of capital or investment in the construction and maintenance of the real estate. 5. The location of the real estate to be leased should have been meticulously determined by the procuring entity after taking into consideration.2. 9184. 4. As a general rule. exceed the ABC.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O contracts either through public bidding or negotiated procurement under Section 53(i) of the IRR-A of R. 9184 shall be followed. The BAC shall evaluate the recommendation of the end user unit. 4. and approve the same if it finds such recommendation to be more advantageous to the government. The end user unit shall conduct a cost-benefit analysis to assess the feasibility of entering into a lease contract for a privately-owned real estate as against purchasing or leasing from a government-owned real estate.4. extravagant. 5. 4. The reasonableness of the computed rental rates is likewise determined by comparing rental rates of real estates with the same or similar condition or classification and located within the vicinity. or unconscionable expenditure. the procedures under the IRR-A of R.7. including additional expenses.6.8. 4. In the public bidding of lease contracts. the need for prudence and economy in government service and the suitability of the area in relation to the mandate of the office and its accessibility to its clients. It should also consider real estate amenities and/or facilities provided free by the Lessor.A.3. excessive. The recommendation shall also indicate the result of the market analysis of the prevailing rate of lease contracts within the vicinity of the selected location. if shouldered by the procuring entity. The procuring entity shall ensure that the objectives and purpose of the lease contract do not constitute an unnecessary. facility. 5. and convenience from the leased real estate. among others. 4.

and its reasonableness computed. 5.8 or 6 of these Guidelines.2. 5. Entering into a lease contract through Negotiated Procurement under Section 53(i) shall be included in the approved APP of the procuring entity concerned. If the BAC determines that the LCB is reasonable pursuant to Item 5. it shall immediately notify the said bidder in writing of its disqualification and the grounds therefor.1 of these Guidelines. The BAC shall prepare and finalize the draft contract and the technical specifications for the lease of the real estate taking into consideration the rating factors under Appendix A of these Guidelines. the BAC. In case all price quotations are considered unreasonable pursuant to Item 5. but not limited to. However. 227 . through a resolution. After the required posting period. it shall declare said bid as the Lowest Calculated Responsive Bid (LCRB). the next LCB will be subjected to the same comparative price analysis until the LCRB is determined for award. in accordance with Item 6 of these Guidelines.12.A.8 or 6 of these Guidelines. the BAC shall conduct a comparative price analysis between the LCB and the prevailing market rate previously determined under Item 5. 5.8. the BAC shall open the price quotations and determine the Lowest Calculated Bid (LCB). 5. If the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued.11. The BAC shall then proceed to determine the reasonableness of the second LCB.6.8 or 6 of these Guidelines. 5.9. if the BAC determines that the LCB is unreasonable in accordance with Item 5. The APP of the procuring entity shall reflect the details of the lease contract including. or the updating of the APP. The price quotation of the bidder with the LCB shall be evaluated. On the date specified in the notice.5. 9184 for a period of seven (7) calendar days. or the project to be undertaken has not been previously included. the procuring entity shall determine reasonableness of the proposed rate using a comparative price analysis as guided by the zonal valuation of the real estate issued by the city or municipality having jurisdiction over the property. the ABC and the general description of the requirements for the lease of real estate. 5. shall justify and recommend the change in the mode of procurement.1 of these Guidelines.4 of the IRR-A of R. 5.10. If all price quotations exceed the prevailing market rate as determined under Item 5.4.7. the BAC shall declare a failure of negotiated 5. to be approved by the head of the procuring entity.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O 5. In the case of a proposed lease of a vacant lot or other land spaces. and recommend to the head of the procuring entity the award of contract thereto. The BAC shall then post the notice for the procurement opportunity in accordance with Section 21. the BAC shall invite at least three (3) prospective Lessors to submit sealed price quotations. If the LCB exceeds the prevailing market rate. This procedure shall be repeated for the next LCB until the LCRB is determined for award.

4. However.2. and its quotation may then be considered for award. Immediately after the determination of the LCRB. The following weights may be used in arriving at the observed depreciation rate: Status Good Fair Poor Very poor 6. in lease contracts for land spaces. Depreciation (%) 20 40 60 80 Computation based on Straight Line Depreciation This method uses the following formula and a depreciation rate determined from the Table of Structural Depreciation provided by the DPWH under Appendix B of these Guidelines: 228 . DETERMINATION OF REASONABLENESS OF RENTAL RATES 6. The reasonableness of rental rates may be determined using either of the two (2) methods provided in Items 6.8. The procuring entity must adopt only one method of computation and consistently apply this method to all price quotations submitted for said procurement. Sample computations using the above-mentioned formulae are provided in Appendix C of these Guidelines. 6. in which case a public bidding or another negotiated procurement process will be conducted. Computation based on Observed Depreciation This method uses the following formula and a depreciation rate determined by the BAC or its TWG after meticulous ocular inspection of the actual condition of the real estate: Reproduction Cost Formula Rate Rental Rate Monthly Rental = Estimated Unit Construction Cost × (1 – Depreciation Rate) = Reproduction Cost × Monthly Capitalization Rate = Formula Rate × Factor Value = Rentable Area × Rental Rate 6.1.3.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O procurement. 6. 6. the rental rate offered may be regarded as reasonable. depending on the recommendation of the BAC. If the price quotation of the prospective Lessor does not exceed the computed monthly rental. the BAC shall recommend to the head of the procuring entity the award of contract to such bidder.1.3. 5.4 of these Guidelines. reasonableness of rental rate shall be determined in accordance with Item 5.3 and 6.13.

Lease contracts may be entered into on a multi-year basis. = Current Year – Year of Construction = See Appendix B for the Table of Structural Depreciation = Estimated Unit Construction Cost × (1 – Depreciation Rate) = Reproduction Cost × Monthly Capitalization Rate = Formula Rate × Factor Value = Rentable Area × Rental Rate TERMS AND CONDITIONS OF LEASE CONTRACTS 7. EFFECTIVITY These Guidelines shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation. dated 29 June 2007.87 87 Issued through GPPB Resolution 019-2007.2. subject to the application of any set of guidelines that governs multi-year contracts.1. 229 . 7. 8.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O Age of Real Estate Depreciation Rate Reproduction Cost Formula Rate Rental Rate Monthly Rental 7. The procuring entity shall ensure that the lease contract provide the most advantageous terms and conditions to the Government.

Property utilization 5.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O APPENDIX A TABLE OF RATING FACTORS RATING FACTORS Location and Site Condition 1. Sidewalk and waiting shed 4. Circulation d. Police and fire station 6. Air conditioning 3. Fire escapes e. Neighborhood Data 1. Parking space 5. Janitorial and security 2. Real estate 1. Water supply and toilet b. Elevators d. Other added amenities WEIGHT (%) 25 20 15 15 10 10 5 100 RATING I. Structural condition 2. Lighting system c. Water and light consumption 20 20 20 20 230 . Maintenance b. Functionality a. Repair and maintenance 4. Economic potential 6. Land classification. Free Services and Facilities 1. Attractiveness 30 6 6 6 6 6 6 6 6 6 6 5 5 100 IV. Space requirements 3. Banking/postal/telecom 20 20 15 15 15 10 5 100 III. Sanitation and health condition 3. and assessment 7. Facilities a. Prevailing rental rate 2. Cafeterias 7. Adverse influence 4. Accessibility 2. Topography and Drainage 3. II. Module b. utilization. Light and ventilation e. Room arrangement c. Fire fighting equipment 4. Other requirements a.

10 = = = = I. Location and Site Condition Neighborhood Data Real estate Free Services and Facilities FACTOR VALUE 231 .20 . II.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O 5. Secured parking space 20 100 × × × × .50 . III.20 . IV.

7 17.5 24.5 2.5 11.7 22.4 25 27.6 24.4 55.2 15.9 60.3 73 75 STRUCTURAL REINFORCED (100 years) 1.9 5.1 10.4 27.6 21.7 8.7 14.2 5.3 37 30.6 38 42.8 29 33.5 20.1 9.8 4.9 32.5 60.1 57.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O APPENDIX B TABLE OF STRUCTURAL DEPRECIATION AGE WOODEN FRAME (40 years) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 3 6 8.3 64.5 17.3 71.3 59.9 18 15.3 24.2 65 56.3 75 232 .1 75 67.5 2 4.8 13 14.8 50 42.5 36.9 11.3 10.3 62 64.7 15.6 52.2 34.5 18.8 29.6 53.8 39 49.4 73.6 9 7.5 6.4 17.3 17 13.3 70.5 67 69.9 22.1 12.5 3.3 16.8 6.7 65 70 75 ESTIMATED LIFE OF REAL ESTATE SEMI-CONCRETE REINFORCED (60 years) CONCRETE (75 years) Percentage (%) of estimated life 2.5 20 26.5 68.4 11.1 13.8 43.5 72.1 9.8 36.5 18.6 47.8 22.5 29.1 46 49.1 56.2 19.

× P300/sq.20) = P20.000 (0.m.000/sq.60/sq. i.m. = Rentable Area × Rental Rate = 200/sq.m.000/sq.e.20/12) = 20. elevator. etc.00 sq. Formula Rate Rental Rate Rentable Area Monthly Rental COMPUTATION BASED ON STRAIGHT LINE DEPRECIATION Age of Real estate = Current Year – Year of Construction = 2007 – 1987 = 20 years = See Appendix B for the Table of Structural Depreciation = Estimated Unit Construction Cost × (1 – Depreciation Rate) = P25.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O APPENDIX C SAMPLE COMPUTATION A 5-storey office building made of reinforced concrete structure with mechanical equipment.m.000/sq.m. Depreciation Rate Reproduction Cost 233 . say 300/sq.m 20% (Good condition) 20% (Variable based on bank rate) 90% (Based on rating) COMPUTATION BASED ON OBSERVED DEPRECIATION Reproduction Cost = Estimated Unit Construction Cost × (1 – Depreciation Rate) = P25..m.800/sq.000 (0.000/sq./mo. (1 – 0.248) = P18.000./mo. = 200.m.m.m. Date of Construction Estimated Unit Construction Cost Depreciation Capitalization Rate Factor Value 1987 P25.90) 300. air conditioning system.m./mo.0167) = P334/sq. (1 – 0. = P60. = Reproduction Cost × Monthly Capitalization Rate = 20. = Formula Rate × Factor Value P334 (0.00/mo.

00/mo. say P285.Implementing Guidelines for Lease of Privately-Owned Real Estate Appendix O Formula Rate = Reproduction Cost × Monthly Capitalization Rate = P18.m.m. = 200.56/sq.800 (0.20/12) = 18.m. = Rentable Area × Rental Rate = 200 sq. = P57. × P285.96 (0.00/sq. = Formula Rate × Factor Value = P313.0167) = P313.96/sq.m.000./mo. Rental Rate Rentable Area Monthly Rental 234 .00/sq.800 (0.00 sq.m.90) = P282.m./mo.

4. offices and agencies. departments. the procuring entity may select an NGO through competitive public bidding or negotiated procurement under Section 53 (j) of the IRR-A. POLICY STATEMENT Section 23. As a general rule. its branches. bureaus.Guidelines on NGO Participation in Public Procurement Appendix P APPENDIX P GUIDELINES ON NON-GOVERNMENTAL ORGANIZATION PARTICIPATION IN PUBLIC PROCUREMENT 1. A Non-Governmental Organization or NGO refers to a non-stock. all procurement shall be done through competitive public bidding. SCOPE AND APPLICATION These guidelines prescribe the allowable modes of selecting an NGO in case an appropriation law or ordinance specifically earmarks an amount for projects to be specifically contracted out to NGOs. non-profit domestic corporation duly registered with the Securities and Exchange 4. 2. government financial institutions.1 3.1 When an appropriation law or ordinance specifically earmarks an amount for projects to be specifically contracted out to NGOs. Article II of the Philippine Constitution prescribes that the State shall encourage the participation of Non-Governmental Organizations (NGOs). government-owned and/or controlled corporations. including state universities and colleges.2 If the procuring entity decides to conduct public bidding. However. These guidelines shall apply to national government. PURPOSE These guidelines are formulated to meet the following objectives: 3. and local government units. when an appropriation law earmarks an amount for projects to be specifically contracted out to NGOs. 9184 (R. and If the procuring entity decides to enter into negotiated procurement under Section 53 (j) of the Implementing Rules and Regulations Part A (IRR-A) of Republic Act No. 3. to provide the necessary steps and procedures in the selection of the NGO.A. or sectoral organizations in the promotion of the welfare of the nation. to prescribe the rules and procedures that shall govern public bidding limited to NGOs. it is the intent of Congress to give due preference to NGOs. constitutional offices.2 235 . communitybased. GENERAL GUIDELINES 4. 9184).

3. In addition to the information enumerated under Section 21.7.1 of the IRR-A. Unless otherwise provided by law. it shall advertise and post the Invitation to Apply for Eligibility and to Bid in accordance with Section 21.6 and 24. However: 5. In addition to the legal eligibility documents. audited financial statements for the past three (3) years must be submitted under Section 23.6 (1) (j) of the IRR-A. the Invitation to Apply for Eligibility and to Bid shall also include (i) the legal basis or appropriation law or ordinance which earmarks a specific amount or project to NGOs. 4.3 5.2 5.1 In lieu of the registration certificate issued by the Securities and Exchange Commission (SEC). a participating NGO must submit its latest articles of incorporation in order that the procuring entity may determine that it falls within the definition of NGO under Item 4. PUBLIC BIDDING LIMITED TO NGOs 5.3 5.4 4. The determination of an NGO’s eligibility shall be based on the submission of the documents enumerated under Sections 23.3 The selected NGO shall keep and maintain separate savings account and accounting records in accordance with generally accepted accounting rules and principles. and (ii) a statement that the project shall be limited to NGOs.1 If the procuring entity decides to select the NGO through competitive public bidding. subject to visitorial audit and examination by the procuring entity or the Commission on Audit.5 5.3. whether selected through public bidding or negotiated procurement.1 of the IRR-A.4 236 . a cooperative may submit a registration certificate issued by the Cooperatives Development Authority (CDA). technical specifications prescribed for the School Building Program under the Department of Education shall be the same as those prescribed by the Department of Public Works and Highways.2 of these Guidelines. 5.3. 4.Guidelines on NGO Participation in Public Procurement Appendix P Commission (SEC) or a cooperative duly registered with the Cooperative Development Authority (CDA) committed to the task of socio-economic development and established primarily for providing goods and services to the public.A. Participating NGOs need not submit the financial document prescribed under Section 23. shall be required to post a performance security in accordance with Section 39 of the IRR-A of R. 9184. To establish the financial stability of the participating NGO.1 of IRR-A. 9184 and a warranty in accordance with Section 62 of the IRR-A of R.A.3.6 (1) (i) of the IRR-A.2 5.2. For the erasure of doubt. the NGO.

A. the procuring entity shall ensure that the LCB does not include any profit margin or mark-up. After determination that the proposal submitted by the NGO with the Lowest Calculated Bid complies with the technical requirements of the project.1 To ensure transparency in the selection of NGO through negotiated procurement. Latest articles of incorporation Valid and current mayor’s permit/municipal license.6 (f) of the IRR-A of R.1 Availability of its key personnel. and Latest tax returns and tax clearance pursuant to Executive Order No.4 6. 398. Certificate of G-EPS registration. Thus. of 2005. After the required posting period. and h) In the case of procurement of infrastructure projects. designs.2. the prospective bidder’s statement of: f. blueprints. legally.Guidelines on NGO Participation in Public Procurement Appendix P 5. budgets and charts. that may be used for construction contracts. no profit should be included in its bid. s. Consistent with the nature of an NGO. such as project managers.4 Other stages of the bidding process shall be observed in accordance with the relevant provisions of the IRR-A of R. project engineers. the procuring entity shall invite at least three (3) prospective NGOs to submit sealed price quotations. plans. 9184. Taxpayer’s Identification Number. NEGOTIATED PROCUREMENT UNDER SECTION 53 (J) OF IRR-A 6. The procuring entity shall likewise require submission of the complete project proposal together with supporting feasibility studies. posting shall be done in accordance with Section 21. On the date specified in the notice. if any in accordance with Section 23. the procuring entity shall require submission of the following eligibility documents to ensure that said NGO is technically.2 6.4 of the IRR-A of R.3 6. materials engineers and foremen. the procuring entity shall open the price quotations and determine the Lowest Calculated Bid (LCB). 9184. 6. and financially capable to undertake the proposed project: 6.5 Legal Documents a) b) c) d) e) f) SEC or CDA registration certificate. 237 . including contracts awarded but not yet started. 9184. where applicable.A.A. Technical Documents g) Statement of all its ongoing and completed government and private contracts within the relevant period.

2 Availablity of equipment that it owns.8 7. and reporting terms of payment. Release of funds to the NGO shall follow the payment schedule prescribed by the MOA or contract. the selected NGO shall not receive additional payment unless reporting/liquidation requirements of the previous payment shall have been complied with.Guidelines on NGO Participation in Public Procurement Appendix P f. No funds may be released prior to signing of the MOA or contract. The selected NGO shall return any amount not utilized upon completion of the project. 6. has under lease. As a general rule. TERMS OF PAYMENT 7. stamped “received” by the BIR or its duly accredited and authorized institutions. periodic inspection or evaluation schedule. and/or has under purchase agreements that may be used for construction contracts.3 7. the selected NGO shall post a Performance Security upon the signing of the MOA in accordance with Section 39 of the IRR-A. the procuring entity shall enter into a Memorandum of Agreement (MOA) with the NGO which prescribes: a) b) c) d) e) the terms of reference for the project commitment to comply with technical requirements of the project systems and procedures for project monitoring and implementation timelines.6 After submission of the eligibility documents. such as.1 Payment to the NGO shall be made on a staggered basis. 7. provided that ownership of equipment is not a requisite for eligibility.2 7. its total and current assets and liabilities. showing. which shall be in accordance with Item 7 herein 6.7 To guarantee its faithful performance. After performance of its obligations under the MOA. for the immediately preceding calendar year. among others. but not limited to. Financial Documents i) Audited financial statements for the past three (3) years.2 Personnel performing functions that are regulated by laws of the Philippines are registered professionals authorized by the appropriate regulatory body to practice those and allied professions f.4 238 . the selected NGO shall likewise submit a warranty security in accordance with Section 62 of the IRRA. 6. date of completion.

dated 29 June 2007. EFFECTIVITY These guidelines shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general nationwide circulation. 239 .88 88 Issued through GPPB Resolution 012-2007.Guidelines on NGO Participation in Public Procurement Appendix P 8.

9184 (R. 2. the winning bid is determined by the lowest calculated and responsive bid.0 ADDITIONAL SET OF TECHNICAL PARAMETERS 4. such as security and janitorial services. repair and maintenance of equipment and furniture.Guidelines on Procurement of Security and Janitorial Services Appendix Q APPENDIX Q GUIDELINES ON THE PROCUREMENT OF SECURITY AND JANITORIAL SERVICES 1. 4. procurement of general support services.0 POLICY STATEMENT Under Section 5 (h) of Republic Act No. the minimum standard for each parameter shall be determined by the procuring entity. and other services. considering that procuring entities have different needs and requirements. However.0 PURPOSE These guidelines are formulated to meet the following objectives: 3. hauling.1 Procuring entities are highly encouraged to evaluate the technical proposal of bidders using the additional set of parameters prescribed in Appendix A of these guidelines. but should also take into consideration a range of other factors. 240 . in the procurement of security or janitorial services. To provide conditions on the use of multi-year contracts for security and janitorial services. and adherence to labor and other social legislation. 3. 3. standards of internal governance. however.1. such as. 9184). but not limited to. It is recognized.0 SCOPE AND APPLICATION These guidelines shall govern the procurement of security and janitorial services by government agencies. To prescribe an objective set of parameters in the evaluation of technical proposals for security and janitorial services.A. that the proper and efficient procurement of security and janitorial services should be based not solely on cost. including non-personal or contractual services. falls under the definition of goods. adequacy of resources. length of contract. as reiterated in Section 5 (k) of its Implementing Rules and Regulations Part A (IRR-A). These guidelines shall not apply to the procurement of other general support services.0. levels of training. Thus. such as. trucking.

which shall form part of the contract under Section 13. The procuring entity shall ensure that the foregoing allowable price adjustments are specified under Section 8. provided that the ABC for the relevant year is not exceeded.1.1 of the Special Conditions of Contract of the PBDs.2 To determine compliance with these parameters. in the procurement of security and janitorial services. The Approved Budget for the Contract (ABC) for the first year only. which should not exceed three (3) years. The Financial Proposal shall contain a breakdown of all costs.2.1.2. Technical Specifications of the Philippine Bidding Documents for the Procurement of Goods (PBDs). 4. procuring entity may require additional documents or materials as part of the bidder's technical proposal.2.3 5.A.4.3.3 (A) of the IRR-A of R. subject to the following conditions: 5. All bid prices for a duration of three (3) years shall be fixed and shall not be adjusted during contract implementation. the resulting cost of said increase or decrease. Increase in minimum daily wage pursuant to law or new wage order issued after date of bidding. 5. Increase in taxes. Procuring entities shall expressly provide. including cost of supplies and equipment.1. 5. 5.2. 5. that the service 241 . except for the following: 5. Technical Specifications. but not to exceed three (3) years.1 of the General Conditions of the Contract of the PBDs. and 5.Guidelines on Procurement of Security and Janitorial Services Appendix Q Additional technical parameters and minimum standard for each parameter must be expressly stated under Section VII.3. The procuring entity shall check compliance with the technical parameters using a non-discretionary "pass/fail" criteria 4.2. These additional documents or materials must be expressly stated in Item 14. 5. under Section Vll. 9184.2.1.1. If during the term of the contract the procuring entity sees the need for an increase or decrease in the number of security guards or janitorial attendants.(j) of the Bid Data Sheet consistent with Item 11. Duration of the contract to be bid. necessary for the execution of the contract.0 MULTI-YEAR CONTRACTS Procuring entities may enter into multi-year contracts.1. The Invitation to Apply for Eligibility and to Bid must expressly state the following: 5. Section 25.

Technical Specifications.018-2004 dated 22 December 2004. 6. Based on its assessment. dated 28 September 2007. 5. (iii) management and suitability of personnel. procuring entities shall conduct an assessment or evaluation of the performance of the service provider/contractor based on the set of performance criteria prescribed under Section VII. 5. 242 . the following: (i) quality of service delivered.6. The performance criteria to be applied shall include.89 89 Issued through GPPB Resolution 024-2007.0 EFFECTIVITY These Guidelines shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines.5. among others. (ii) time management.Guidelines on Procurement of Security and Janitorial Services Appendix Q provider/contractor shall maintain a satisfactory level of performance throughout the term of the contract based on a prescribed set of performance criteria. Before end of each year. and (v) provision of regular progress reports. (iv) contract administration and management. the procuring entity may pre-terminate the contract for failure by the service provider/contractor to perform its obligations thereon following the procedure prescribed under the Guidelines on Termination of Contracts issued by the Government Procurement Policy Board under Resolution No.

Stability (a) (b) (c) Years of Experience Liquidity of the Contractor Organizational Set-up 2. No. Other Factors (a) (b) Recruitment and Selection Criteria Completeness of Uniforms and Other Paraphernalia B. Janitorial Services 1. No. and Kind of Equipment and Supplies No. of Janitors and Supervisors 3. Other Factors (a) (b) Recruitment and Selection Criteria Completeness of Uniforms and Other Paraphernalia 243 . Stability (a) (b) (c) Years of Experience Liquidity of the Contractor Organizational set-up 2. Housekeeping Plan 4. of Licensed Firearms and Kind of Communication Devices and Kind of Motor Powered Vehicles of Licensed Guards 3. No. Security Services 1. Resources (a) (b) No. Resources (a) (b) (c) (d) No. Security Plan 4.Guidelines on Procurement of Security and Janitorial Services Appendix Q APPENDIX A ADDITIONAL SET OF TECHNICAL PARAMETERS A.

Juan S. (COA) DepEd DOE DOF DOH DILG DND DPWH DOST DTI DOTC Private Sector Representative Resource Person 90 The Inter-Agency Technical Working Group (IATWG) was created to assist the GPPB and its TSO in the review and formulation of procurement laws. Wenceslao Assistant Commissioner Arcadio M. Tan Director Crispinita A. Jr. Sanchez Ms.INTER-AGENCY TECHNICAL WORKING GROUP90 (CY 2007) DBM NEDA Undersecretary Laura B. Griselda S. and guidelines. Dorado Engr. Jr. Benitez Assistant Secretary Mario P. Assistant Director General Ruben S. . Cagadoc Director Antonio V. Danar Ms. Jr. Cuenco Jr. Lorraine C. Molano. Valdez Mr. rules. Martin-Funelas Atty. Emerson L. Santidad Mr. Bungubun Director Gadys M. Ronaldo F. whenever necessary. Reyes. Pascua Atty. Emmanuel C. Jr. consultants’ deliverables for projects under the Institutional Development Fund and Asia-Europe II Trust Funds. Lilia R. Corpus Director Aida N. Reynaldo E. Reyes Mr. Vizmonte Director Venancio G. Delfin J. Estanislao C. Director Ireneo V. Engr. Arnaldo C. Elmer H. Granados. Reinoso. It also acts as the steering committee for selected projects of the GPPB-TSO and reviews. Carpentero Atty. Bravo Engr. Engr.

Pasig City Tel.gppb. ALVAREZ Executive Director III ATTY. (02) 563-9397.procurementservice. (02) 900-5231 to 36 www. Executive Director IV MS. Road. PEÑANO Executive Director II PHILIPPINE GOVERNMENT ELECTRONIC PROCUREMENT SYSTEM Unit 2504 Raffles Corporate Center.net MS. (02) 563-9395 www.ph ATTY. Nos.philgeps. Pasig City Tel.gov. Ortigas Center.DEPARTMENT OF BUDGET AND MANAGEMENT PROCUREMENT SERVICE RR Road. Ortigas Jr. Ortigas Center. FLERIDA G. F. Nos. RUBY U. EMILUISA C. F.org ATTY. Ortigas Jr. Road. Manila Tel. ARIAS Operations Manager GOVERNMENT PROCUREMENT POLICY BOARD TECHNICAL SUPPORT OFFICE Unit 2506 Raffles Corporate Center. Cristobal Street. Nos. GRANADOS JR. Paco. ESTANISLAO C. CLEMENTE Director III . (02) 900-6741 to 44 www. MARIA ROSA M.