Step 5 Receive and Open the Technical and Financial Envelopes

For the legal reference, IRR-A Sections 25 to 31 specify the rules in relation to the submission and
receipt of bids. The bid is a signed offer or proposal to undertake a contract by a bidder in
compliance to the requirements in the bidding documents. The two components of bid are
Technical Proposal/Technical Bid and Financial Proposal/Financial Bid.
The Technical Bid/Proposal contains the following documents:
1. The bid security in its required form, amount and validity period
2. The authority of the signatory to sign on behalf of the bidder
3. Construction schedule and S-curve
4. Manpower schedule of skilled and unskilled workers
5. Construction methods or the narrative description of how the contractor will undertake the
works under the contract
6. Organizational chart for the contract to be bid
7. List of contractor’s key personnel to be assigned to the contract to be bid with signature of
the personnel
8. List of contractor’s equipment units pledged for the contract to be bid with certification of
availability of equipment for the duration of the contract
9. Equipment utilization schedule
10. Affidavit of site inspection from the contractor
11. Written commitment from a licensed bank to extend to the bidder a credit line specific to
the contract at hand if awarded the contract
12. Construction safety and health program of the contractor
13. Certificate from the bidder under oath of its compliance with existing labor laws and
standards
14. A sworn affidavit of compliance with the Disclosure Provision under Section 47 of
R.A.9184 and its IRR-A in relation to other provisions of R.A. 3019
15. A sworn statement by the bidder attesting to have complied with the responsibilities
enumerated under IRR-A Section 17.7.1
16. Documents/materials to comply with other non-discretionary criteria and requirements as
stated in the ITB
The Financial Bid/Proposal contains the following:
1. Bid prices in the Bill of Quantities in the prescribed Bid Form
2. Detailed estimates
3. Cash flow by the quarter and payments schedule

Bids should be submitted on or before the specified time and date of the deadline for submission
of bids, as stated in the bidding documents, (IRR-A Section 29), and within the following periods
from date of advertisement and/or 1st day of posting IAEB: (IRR-A Section 21.2.2 [ii])
Approved Budget for the Contract (in Pesos) Period
Fifty (50) million and below 36 calendar days
Above fifty (50) million 50 calendar days

Bids submitted after the specified deadline shall not be received or accepted by the BAC. (IRR-A
Section 25.2)
If only one eligible bidder submits a bid envelope, bidding process may still proceed and if found
to be responsive to the bidding requirements, it will be declared as SCRB and considered for
contract reward. (IRR-A Section 36)
Moreover, if no eligible bidder submits a bid, the BAC is to declare the bidding a failure. The BAC
is to review the terms and conditions stated in the Invitation to Apply for Eligibility to Bid, then if
warranted, revisions are to be made. It must, thereafter, conduct a rebidding, in the process
formulating a new IAEB and posting and publishing this as required. (IRR-A Section 35) All
bidders that have initially responded to the IAEB in the first bidding shall be allowed to submit
new bids.
The people behind the receipt and opening of bids are the BAC, TWG, BAC Secretariat, eligible
bidders and the observers.
In submitting the bids, the Technical and Financial Bids are placed in two separate envelopes
which are addressed to the BAC and marked as specified in the ITB. It will be collected on the Bid
Opening Date. The BAC receives the bids at the time, date and place specified in the bidding
documents and the BAC Secretariat must stamp the envelope as “RECEIVED” and countersigned
by an authorized representative on the indicated time of receipt. The BAC then proceeds with the
opening and preliminary examination of bids in public. The BAC checks the submitted documents
first in the Technical Proposal against a checklist of required documents to ascertain if they are all
present, using non-discretionary “pass/fail” criteria. (IRR-A Section 30.1). When the Technical
Proposal is rated “passed,” the BAC then immediately opens the envelope containing the Financial
Proposal within the same day. The BAC determines whether all requirements/documents are
complete and sufficient and if the total bid price does not exceed the Approved Budget for the
Contract. Only bids that are rated “passed” for both the Technical and Financial Proposals shall be
considered for the next stage of the procurement process. All members of the BAC shall initial
every page of the original copies of all bids received and opened (IRR-A Sections 29). Also, the
BAC members and the observers shall sign the “Abstract of Bids as Read” after the Preliminary
Examination of Bids. The BAC Secretariat shall record the proceedings using an electronic tape
recorder, or a video recorder. Copies of the minutes of the bid opening should be prepared within
3 calendar days after the opening date so that it could be sent to the BAC members, Observers,
Bidders and interested parties, and can be made available to the public upon written request and
payment.
An eligible bidder may modify and withdraw its bid provided that it is done before the deadline
for the submission and receipt of bids. A bidder that withdraws its bid prior to the deadline for
submission of bids, for a justifiable cause, does not forfeit its bid security.
A contractor may engage general subcontractors in the areas of manual and semi-skilled labor or
construction materials, provided that the contractor undertakes not less than fifty percent (50%) of
the value of the contracted works. All subcontracting arrangements should be disclosed at the time
of bidding, and subcontractors shall be identified in the bidding documents submitted by the
eligible bidder. Subcontractors should also pass the eligibility check for the portions of the contract
that they will undertake.

Step 6 Evaluate the Bids

IRR-A Section 32 specifies the rules and guideline relative to the evaluation of bids.
Bid evaluation is done by establishing the correct calculated prices of the bids and ranking of the
total bid prices as so calculated from the lowest to the highest and identify the Lowest Calculated
Bid.
The entire evaluation process for bids must be completed in not more than 15 days from deadline
for receipt of proposals for above ₱50 million worth projects and 5 calendar days for those projects
costing below ₱50 million.

Also, the participants in Bid Evaluation are the BAC, TWG, BAC Secretariat and Observers.
After the preliminary examination of bids, the BAC, through the TWG, shall immediately conduct
a detailed evaluation of all bids rated “passed,” using a nondiscretionary criteria, including a
consideration of the following:
a. Bid must be complete.
 b. Minor arithmetical corrections to consider computational errors, omissions and discounts,
if allowed in the bidding documents, to enable proper comparison of all eligible bids.
c. All bids shall be evaluated on an equal footing to ensure fair and competitive bid
evaluation.
d. Bid prices shall be in words, discrepancies in unit prices and unit cost in the bill of
quantities shall be considered. The corrected per item cost for all items shall be the basis
for the corrected grand total cost.
Based on the detailed evaluation of bids, those that comply with the above-mentioned requirements
shall be ranked in the ascending order of their total calculated bid prices. Total calculated bid
prices, as evaluated and corrected for computational errors, discounts and other modifications,
which exceed the ABC shall be disqualified. (IRR-A Sections 32.4.4)
The Abstract of Bids is to be prepared by the BAC after the evaluation of all the bids and shall be
signed by all the members of BAC, and Observers if, in their independent observation, the bidding
conducted by the BAC followed the correct procedure. The Abstract of Bids contains the name
and location of the contract; time, date and place of bid opening; names of bidders and their
corresponding calculated bid prices; amount of Bid Security and the name of the issuing entity.
The TWG, with the assistance of the BAC Secretariat should prepare the Evaluation Report
preferably within 3 calendar days from the date of evaluation was concluded.
If no bid complies with all bid requirements, the BAC should declare the bidding a failure. In such
a case, the BAC shall issue a Resolution declaring a failure of bidding. The BAC then reviews the
terms and conditions stated in the IAEB. If warranted, it changes any of the terms and conditions,
including the quantities or specifications, provided that the ABC is left unchanged. It must,
thereafter, conduct a re-bidding, in the process formulating a new IAEB and posting and publishing
this as required. (IRR-A Section 35) All bidders that have initially responded to the IAEB in the
first bidding shall be allowed to submit new bids. If the original estimate is found to be inadequate
on reassessment to meet the objectives of the project, it may be necessary to reduce the scope of
the project. Should a second failure of bidding occur and the Procuring Entity finds that there is a
need to evaluate the responsiveness of the ABC, and so decides to revise the ABC accordingly,
the Procuring Entity should conduct another public bidding with re-advertisement and/or posting.
Alternatively, the Procuring Entity may enter into a negotiated procurement with a legally,
technically, and financially capable consultant. (IRR-A Sections 35.3 and 53) However, if the
Procuring Entity resorts to negotiated procurement, the terms, conditions, and specifications of the
project as well as the ABC must be maintained.