RA 9184 Implementing Rules and Regulations (IRR-A) Frequently Asked

Questions

There have been many changes in the procurement process as a result of RA 9184 and
its associated IRR-A. Therefore, we thought it would be beneficial to publish the latest list of
frequently asked questions from the sessions being conducted by Director Antonio Molano,
Jr.

1. When was the effectivity of the IRR-A of R.A. 9184?

IRR-A of R.A. 9184 to effect last October 8, 2003, which means that all Locally Funded
projects advertised/posted for Invitation to Apply for Eligibility and to Bid starting October
8, 2003 should now be following the IRR-A of R.A. 9184.

2. When was the effectivity for the mandatory use of the Standard Bidding
Documents (SBDs) approved by the Government Procurement Policy Board
(GPPB)?

The SBDs for the procurement of Goods, Consulting Services and Civil Works as
approved by the GPPB shall be mandatorilly used by all branches, agencies, departments,
bureaus, offices, or instrumentalities of the Government, including government-owned
and/or controlled corporations (GOCCs), government financial institutions (GFIs), state
universities and colleges (SUCs), and local government units (LGUs) starting July 2005.

3. What are the sequential steps in the procurement of a civil works

project?

The procurement of a civil works project starts with the conduct of the Pre-Procurement
Conference by the Bids and Awards Committee, then followed by the Advertisement/Posting
of the Invitation to Apply for Eligibility and to Bid (IAEB), then Eligibility Screening,
Submission/Receipt of Bids, Bid Evaluation, Post-Qualification, and Award of contract.

4. Pre–procurement Conference is a new step, what is its importance?

A pre-procurement conference, which should be done prior to

advertisement or posting, is important to determine the readiness of the
procurement at hand, including among other aspects, confirmation of the availability
of Right-of-Way (ROW), availability of appropriations and program budget for the
contract, and adherence of bidding documents, technical plans, specifications, scope of work
and other related matters to the general procurement guidelines. Here, the BAC shall
ensure that the procurement is in accordance with the approved Project Procurement
Management Plan (PPMP) and the approved Annual Procurement Plan (APP) of the Office.
The conference will also serve as the venue for reviewing, modifying, agreeing on criteria
for eligibility screening, bid evaluation to ensure their fairness, reasonableness and
applicability to the procurement at hand. It will also serve as the venue for clarifying that
the specifications and other terms in the bidding documents are minimum requirements.
During the said conference, the BAC shall also reiterate and emphasize the importance of
the confidentiality during the bid evaluation process.

5. What is the formula for the Net Financial Contracting Capacity (NFCC)? If a
contractor lacks the NFCC, what other instruments can he use to comply with the
financial requirement?

NFCC = [(Current assets minus current liabilities) (K)] minus the value of all
outstanding projects under on-going contracts, including awarded contracts yet to be
started. K is 10 for a contract duration of one year or less, 15 for a contract duration of
more than one year up to two years, and 20 for a contract duration of more than two years.
The NFCC should at least be equal to the Approved Budget for the Contract (ABC).

If a contractor lacks the necessary NFCC, he can use either the Credit Line Commitment
from a licensed bank or a Bank Deposit of at least 10% of the ABC, both dedicated for the
project.

6. If a contractor became ineligible because his NFCC is less than the ABC, will
the submission of a Credit Line commitment from a licensed bank correct said
deficiency to make him eligible?

No, we cannot allow the correction by submitting a Credit Line commitment because
it would be tantamount to improvement of his eligibility documents.