06 Alternative Methods of Procurement PDF

1
OUTLINE
I. Procurement Standards
II. Alternative Methods
1. Limited Source Bidding*
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
2
OUTLINE
5. Negotiated Procurement:
a. Two Failed Biddings h. Defense Cooperation Agreement*
b. Take Over Contracts i. Small Value Procurement
c. Emergency Cases j. Lease of Real Property and Venue
d. Adjacent or Contiguous k. NGO Participation*
e. Agency‐to‐Agency l. Community Participation*
f. Scientific, Scholarly or Artistic Work, m. UN Agencies, International
Exclusive Technology and Media Organizations or International
Services Financing Institutions*
g. Highly Technical Consultants
3
PROCUREMENT STANDARD
Procuring Entities shall adopt
Public Competitive Bidding as the
GENERAL mode of procurement.
4
PROCUREMENT STANDARD
EXCEPTION
Alternative methods shall be resorted ONLY:
1. In highly exceptional case For any change in the method
2. To promote economy and efficiency of procurement, the APP shall
3. Justified by conditions specified in IRR be updated first prior to the
4. conduct
GPPB approval as required under EO 423, S. 2005 (as of the procurement
amended)
activity.
 No government procurement shall be undertaken unless it is in

accordance with the approved Annual Procurement Plan (APP) of the
Procuring Entity (PE).
5
CONSENT OF GPPB AS REQUIREMENT FOR THE
CONDUCT OF ALTERNATIVE METHODS
 The approval of GPPB before a PE may proceed with the alternative

method of procurement is only necessary for government contracts
involving an amount of at least 500 Million Pesos per EO 423, where
the Head of the Procuring Entity (HoPE) has made a determination
that such contract falls under any of the exceptions from public
bidding.
6
1. LIMITED SOURCE BIDDING
Also known as “selective bidding” which involves
direct invitation to bid by the procuring entity from
the list of pre‐selected suppliers or consultants.
7
APPLICABILITY:
GOODS INFRASTRUCTURE CONSULTING
 
CONDITIONS:
Highly specialized types where only a few bidders are known
to be available, or
Major plant components beneficial to limit bidding to known
qualified bidders to maintain uniform quality and
performance of the plant
8
 Pre‐selection is based on capability and resources to perform the

contract taking into account:
 Experience and past performance on similar contracts;
 Capabilities with respect to personnel, equipment, and/or
manufacturing facilities; and
 Financial position.
 The pre‐selected list of suppliers and consultants shall be

maintained by thelistrelevant government authority in which the PE
The pre-selected
may be
may be the accessed atgovernment authority.
relevant
http://www.gppb.gov.ph/
monitoring/pre_selected
 The pre‐selected.php list shall be updated periodically and submitted to
the GPPB.
9
2. DIRECT CONTRACTING
Single source procurement that does NOT require
elaborate Bidding Documents.
The supplier is simply asked to submit a price
quotation or a pro‐forma invoice together with the
conditions of sale. The offer may be accepted
immediately or after some negotiations.
12
APPLICABILITY:
REQUIREMENTS PRIOR TO CONDUCT:

 End‐user to conduct survey of the industry and determine the
supply source. End‐user should also justify the necessity for the
item that may be only procured through Direct Contracting and
prove that there is no suitable substitute in the market.
13
CONDITIONS: (Continuation)
Items of proprietary nature from proprietary source, i.e patents,

trade secrets, and copyrights;
Critical components from a specific supplier to hold a
contractor to guarantee its project performance; or
Items sold by an exclusive manufacturer or dealer, subject to the
following conditions:
 No other suppliers selling it at lower prices; and
 No suitable substitute can be obtained at more
advantageous terms to the Government
14
3. REPEAT ORDER
Procurement from the previous winning bidder,

whenever there is a need to replenish goods
procured under a contract previously awarded
through Competitive Bidding.
15
3. REPEAT ORDER
APPLICABILITY:
CONDITIONS:
1. Same or lower unit prices than those in the original contract,
provided that such prices are still the most advantageous to the
GOP after price verification;
2. No splitting of contracts, requisitions and Purchase Orders;
16
3. REPEAT ORDER
3. Availed of within 6 months from the date of the NTP arising from
the original contract, provided that there has been a partial delivery,
inspection and acceptance of the goods within the same period;
4. Not to exceed 25% of the quantity of each item in the original
contract;
5. Original contract awarded through competitive bidding; and
6. The goods under the original contract must be quantifiable, divisible
and consisting of at least four (4) units per item
17
4. SHOPPING
Method where 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.
18
4. SHOPPING
APPLICABILITY [Sec. 52.1(a) and Sec. 52.1(b)]:

 The phrase “ordinary or regular office supplies” are those supplies,
commodities, or materials which are necessary in the transaction
of official business, and consumed in the day‐to‐day operations.
This will not include services such as repair and maintenance of
equipment and furniture, as well as trucking, hauling and related ot
analogous services. 19
4. SHOPPING
CONDITIONS [SHOPPING UNDER Sec. 52.1(a)]:
1. There is an unforeseen contingency requiring immediate
purchase; and
2. Amount does not exceed the threshold.
 The RFQ may be sent directly to the supplier of known technical,

legal and financial qualifications. Sending of one (1) RFQ will
suffice.
 Posting of the RFQ may be dispensed with.
20
4. SHOPPING
CONDITIONS [SHOPPING UNDER Sec. 52.1(b)]:
1. Procurement of ordinary or regular office supplies and equipment

not available in PS‐DBM; and
2. Amount does not exceed the threshold.
 The BAC shall send the RFQs to at least three (3) suppliers of known
qualifications, and at least three (3) price quotations must be
obtained.
 The deadline for submission may be extended thrice, if none or less than the
required number of quotations are received.
 In case no supplier responded after the third extension, the BAC shall conduct
a mandatory review in accordance with Section IV(K) of Annex H.
21
4. SHOPPING
THRESHOLD FOR UNFORESEEN CONTINGENCIES [Sec. 52.1(a)]
 NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government–
PhP200,000
 LGUs :
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
22
4. SHOPPING
THRESHOLD FOR Sec. 52.1 (b):
PhP1,000,000
 LGUs:
Classification
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
23
4. SHOPPING
STANDARD FORM FOR RFQ
 There is no prescribed template or standard form for the RFQ.

 The RFQ must indicate the specification, quantity, ABC, and other
terms and conditions of the item to be procured pursuant to
Section 3(a) of the Guidelines.
 In addition, the RFQ must prescribe the manner by which price
quotations shall be submitted i.e., by sealed or open quotation.
24
5.a NEGOTIATED PROCUREMENT ‐
SMALL VALUE PROCUREMENT
Procurement of goods not covered by Shopping
under Sec. 52, infrastructure projects and consulting
services not exceeding the threshold.
26
APPLICABILITY:
  
 The BAC shall prepare and send the RFQs/RFPs to at least three (3)
suppliers, contractors or consultants of known qualifications.
 Receipt of at least one (1) quotation/proposal is sufficient to
proceed with the evaluation thereof.
27
AWARD OF CONTRACT TO A LONE BIDDER IN SVP
 In SVP, it is mandatory to send the RFQ to at least 3 prospective

bidders/proponents and invite them to submit proposals; but it is
not necessary to actually receive 3 proposals.
 It is enough that the PE receives at least one (1) bid/proposal on the
day of the deadline for submission of quotations.
 Thus, if the lone proposal already complies with the technical, legal
and financial requirements of the procuring entity, the contract can
be awarded to the lone offeror.
•
THRESHOLD:
PhP1,000,000
 LGUs:
Classification
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000
In the case of Barangays, the maximum amount is PhP50,000 29
SHOPPING AND SMALL VALUE
PROCUREMENT
The PE should be able to
produce supporting
documents that it has
PROCEDURAL GUIDELINES: invited at least 3 suppliers.
Send RFQ/RFP to at Post in PhilGEPS, PE’s
least 3 suppliers website and conspicuous
Prepare *May be 1 in case of 52.1(a) place for 3 cd
RFQ/RFP *Receipt of 3 RFQs for 52.1(b) is *Except 52.1(a) and ABC 50k and below
mandatory
*Extend deadline if no quotation is
Receipt of 1 RFQ in SVP will received
suffice
Award to LCB (for

SHP & SVP)/HRB
Prepare Abstract of
(for SVP) that
Quotations complies with specs
and ABC
30
SHOPPING and SMALL VALUE
PROCUREMENT
 For both Shopping under Sec. 52.1(b) and Small Value

Procurement, posting of the following in the PhilGEPS website,
PE’s website, if available, and at any conspicuous place is
required if the ABC of the procurement project is more than
PhP50,000.00:
 Request for Quotation/Proposal (For 3 calendar days);

 Extension of deadline for submission of quotation (For 3
calendar days); and
 Award of contract
31
5.b NEGOTIATED PROCUREMENT ‐
TWO FAILED BIDDINGS
APPLICABILITY:
1. No bids were received;

2. All prospective bidders are ineligible;
3. All bids failed to comply with all the bid requirements,
post-qualification, or there is no successful
  negotiation; or 
4. The Single/LCRB/HRCB refuses, without justifiable
CONDITIONS: cause, to accept the award or no award was made
1. Failed competitive bidding or Limited Source Bidding for the
second time under Sec. 35; and
2. Mandatory review of the Terms, conditions and specifications,
and ABC, which may be adjusted up to 20% of ABC for the last
failed bidding
32
TWO FAILED BIDDINGS
PROCEDURAL GUIDELINES
- Disqualified bidders
in previous biddings
for the project shall
2 Failed Mandatory
also be invited Preparation of
- Even if only one (1) Competitive Review RFQ/Bid docs
bidder should Bidding/LSB
respond, the BAC
shall proceed with the
negotiation
Invite at least Submission

three (3) and opening of
Negotiation Awarding of
suppliers/ best and final contract
contractors/ offer
consultants Requirements, guidelines,
documents, clarifications, or other
information relative to the
negotiations shall be 33
communicated on an equal basis.
TWO FAILED BIDDINGS
 Criteria in selecting the successful offer:
1. Offer should meet the PE’s minimum technical requirements;

and
2. Offer should not exceed ABC.
 Observers shall be invited in all stages
34
TWO FAILED BIDDINGS
FAILURE OF BIDDING AS DECLARED BY HOPE
 If the failure of bidding is due to the declaration by the HOPE

pursuant to Section 41 of the IRR , Negotiated Procurement (Two
Failed Biddings) cannot be resorted to.
35
5.c NEGOTIATED PROCUREMENT ‐
EMERGENCY CASES
APPLICABILITY:
  
36
EMERGENCY CASES
CONDITIONS:
 In case of imminent danger to life or property during a state of

calamity;
 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
• To restore vital public services, infrastructure facilities and other
public utilities
37
EMERGENCY CASES
 In all instances, the HoPE shall confirm in writing the existence and
veracity of the ground/s relied upon before approving the contract.
 Considering that the underlying reason of this modality relates to “time
element”, the PE should consider appropriate timing or the proximity of
time between the actual procurement activity to be conducted and the
emergency sought to be addressed.
 When the reason or cause for the emergency has already been abated,
adoption of competitive bidding shall be considered.
 When the ground is based on imminent danger to life during a state of
calamity, there must be a declaration by a competent authority of a state
of calamity before any procurement activity may be undertaken.
38
5.d NEGOTIATED PROCUREMENT ‐
TAKE‐OVER OF CONTRACTS
APPLICABILITY:
  
39
CONDITIONS:
The contract, previously awarded through Competitive Bidding, has

been rescinded or terminated for causes provided for in the contract
and existing laws; and
Immediate action is necessary:
 To prevent damage to or loss of life or property; or
 To restore vital public services, infrastructure facilities, and other
public utilities.
40
 The BAC shall post‐qualify and negotiate starting with the 2nd LCB or
HRB at the said bidder’s original bid price, then on to the next if
negotiation fails. Authority to negotiate contracts
for projects under this modality
shall be subject to prior approval
 If negotiation fails, the BAC may either: by the HoPE.
1. Invite a short list of at least three (3) suppliers, contractors or

consultants to submit bids and negotiate starting with the LCB or
HRB; or
2. Resort to any other appropriate alternative method of procurement.
41
5.e NEGOTIATED PROCUREMENT ‐
ADJACENT OR CONTIGUOUS
Where the subject contract is adjacent or contiguous to
an on‐going Infrastructure Project or Consulting
Service where the consultants have unique
experience and expertise to deliver the required
service.
42
APPLICABILITY:
 
CONDITIONS:
1. Original contract is a result of competitive bidding;
2. Subject contract has similar or related scopes of work;
3. Within the contracting capacity of the contractor/consultant;
43
4. In determining the SLCC, NFCC and PCAB license, the sum of the value
of the remaining works for the existing contract and the ABC of the
contiguous or adjacent work shall be considered;
5. The same prices or lower unit prices as the original contract less
less mobilization cost,
6. The ABC of the contiguous or adjacent work involved does not exceed
exceed the contract amount of the ongoing project.
7. No negative slippage/delay during the time of negotiation, and
8. Negotiations (e.g. scope of work or terms of reference, unit price and
other terms and conditions) commenced before expiry of original
contract.
44
WHEN ORIGINAL CONTRACT HAS ALREADY BEEN

COMPLETED
 The determination and decision to resort to the alternative modality

of Negotiated Procurement under Section 53.4 is subject to the prior
approval of the HOPE, upon favorable recommendation of the BAC,
provided that the conditions set forth therein are present, one of
which is that “the negotiations for the procurement are commenced
before the expiry of the original contract”.
45
5.f NEGOTIATED PROCUREMENT ‐
AGENCY‐TO‐AGENCY
Procurement from another agency of the government
(Servicing Agency) that has the mandate to deliver
goods or services or to undertake infrastructure
projects or consultancy services as required by the PE.
46
APPLICABILITY:
  
 All procurement to be undertaken by the Servicing Agency, including
those required for the project, shall be governed by the provisions of RA
9184.
 All projects undertaken under A‐to‐A shall be subject to pertinent
budgeting, accounting, and auditing rules and regulations.
47
CONDITIONS:
1. The PE shall justify that entering into an A‐to‐A with the Servicing
Agency is more efficient and economical to the government;
2. The 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;
3. Servicing Agency has the absorptive capacity to undertake the
project;
4. Servicing Agency owns or has access to the necessary tools and
equipment required for the project;
48
CONDITIONS:
5. Sub‐contracting is not allowed. However, the servicing agency

may implement the infrastructure project in‐house, by job‐order, or
through the pakyaw contracting system; and
6. For procurement of infrastructure projects, the Servicing Agency
must have a track record of having completed, or supervised a
project, by administration or by contract, similar to and with a
cost of at least fifty percent (50%) of the project at hand.
49
PROCEDURAL GUIDELINES:
The End-User
The HoPE shall
The End-User shall secure a
enter into a MOA
shall justify to certificate from The BAC shall
with the
the BAC that the the relevant issue a
Servicing
resort to A-to-A officer of the Resolution
Agency upon
is more efficient Servicing recommending
approval of the
and economical Agency that the the use of A-to-A
BAC
to the latter complies to the HoPE.
recommendation
government. with the
.
conditions.
50
5.g NEGOTIATED PROCUREMENT
SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES
Where Goods, Infrastructure Projects and
Consulting Services can be contracted to a
particular supplier, contractor or consultant as
determined by the HoPE.
51
APPLICABILITY:
 All types of Procurement involving:
1. Work of art; commissioned work or services of an artist for

specific artistic skills (e.g., singer, performer, poet, writer,
painter, sculptor, etc.);
2. Scientific, academic, scholarly work or research, or legal
services;
3. Highly‐specialized life‐saving medical equipment, as certified
by the Department of Health;
52
APPLICABILITY: (Continuation)
4. Scientific, technical, economic, business, trade or legal journal,

magazine, paper, subscription, or other exclusive statistical
publications and references;
5. Media documentation, advertisement, or announcement through
television, radio, newspaper, internet, and other communication
media.
6. The construction or installation of an infrastructure facility where
the material, equipment, or technology under a proprietary right
can only be obtained from the same contractor.
53
CONDITIONS:
1. End‐User shall conduct a market study and determine the
probable sources to justify the need to procure through this
negotiated modality;
2. The study should confirm that the supplier, contractor or
consultant could undertake the project at more advantageous
terms; and
3. The market study must be conducted prior to the commencement
of the procurement process.
54
5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL CONSULTANTS
Procurement of consultancy contract involving an
individual consultant who is found to be legally,
technically and financially capable after negotiation.
55
5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL CONSULTANTS
APPLICABILITY:
  
CONDITIONS:
1. Work involves:
 Highly technical or proprietary; or
 Primarily confidential or policy determining, where trust and
confidence are the primary consideration; and
2. Term is, at the most, 6 months, renewable at the option of the appointing
HOPE, but in no case to exceed the term of the latter.
56
5.i NEGOTIATED PROCUREMENT
DEFENSE COOPERATION AGREEMENT
APPLICABILITY:
 Goods and Consulting Services to be used by AFP
 major defense equipment or materiel

 defense‐related consultancy services
CONDITIONS:
1. Prior approval of the President;
2. Expertise or capability required is not available locally;
3. DND Secretary has determined that the interests of the country shall be
protected by negotiating directly with an agency or instrumentality of
another country with existing defense cooperation agreement or
diplomatic relations with the Philippines; and
4. Performance security under §39 of IRR of RA 9184 shall be required to
supplier
57
5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND VENUE
Procurement covering lease of
real property and venue for official use.
58
APPLICABILITY:
 Goods (Real Property and Venue)
• It is preferred that government agencies lease publicly‐owned

real property or venue from other government agencies.
• If there is an available publicly‐owned real property or venue that
complies with the requirements of the PE, it may enter into a
contract of lease with the government‐agency owner.
• In the event that the PE would resort to privately‐owned real
property or venue, the End‐User unit shall justify that the same
is more efficient and economical to the government.
59
CONDITIONS:
1. The End‐User shall prepare a Cost‐Benefit Analysis

indicating leasing privately‐owned real property or venue
is more efficient and economical
The ABC shall be set using the mid point of the range
obtained from the results of the market analysis on the
prevailing lease rates. There is no threshold for the
Rental rates should also use be
of thiswithin
modality so
thelongprevailing
as market
rates it covers lease of privately-
owned real property or venue.
2. Technical Specifications shall be prepared taking into
consideration the Rating Factors under Appendix B.
60
 The BAC shall invite at least three (3) prospective lessors/venues
within the vicinity of the selected location to submit sealed price
The RFQ is not required to
quotations. be posted in the PhilGEPS
website
 Receipt of at least one (1) quotation is sufficient to proceed with the
evaluation.
 Lease contracts amounting to more than PhP50,000.00 shall be

posted in the PhilGEPS website.
61
5.k NEGOTIATED PROCUREMENT ‐
NGO PARTICIPATION
APPLICABILITY:
  
CONDITION:
 Appropriation law or ordinance earmarks an amount to be
contracted to NGOs
PE may opt to:
1. Conduct public bidding; or
2. Enter into a MOA with an NGO, subject to the guidelines issued
by the GPPB for the purpose
62
5.l NEGOTIATED PROCUREMENT ‐
COMMUNITY PARTICIPATION
APPLICABILITY:
 Delivery of goods, including non‐consulting services and
simple infrastructure projects
CONDITION:
 In the interest of project sustainability or to achieve certain
specific social objectives
PROCEDURE:
 Subject to Community Participation Procurement Manual
(CPPM), approved for adoption on 23 May 2014 (GPPB
Resolution No. 09‐2014
63
5.l NEGOTIATED PROCUREMENT ‐
COMMUNITY PARTICIPATION
THRESHOLDS:
MAXIMUM AMOUNT
PROCURING ENTITY (In Philippine Peso)
Goods Infrastructure Projects
NGAs, GOCCs, GFIs and SUCs 2,000,000 5,000,000
LGUs:
1st‐3rd Class Provinces 1,000,000 2,500,000
1st‐2nd Class Cities
Highly Urbanized Cities
4th Class Province 800,000 1,750,000
3rd Class City
5th Class Province 600,000 1,000,000
4th Class City
6th Class Province 500,000 750,000
5th‐6th Class Cities
Municipalities
Barangays
64
5.m NEGOTIATED PROCUREMENT ‐
UN AGENCIES, INTERNATIONAL ORGANIZATIONS OR
INTERNATIONAL FINANCING INSTITUTIONS
APPLICABILITY:
  
CONDITIONS:
Procurement from UN Agencies, IOs or IFIs, of any of the following:
a. Small quantities of off‐the‐shelf goods, primarily in the fields of education and
health;
b. Specialized products where the number of suppliers is limited; or
c. Goods, Infrastructure Projects and Consulting Services, involving advanced
technologies, techniques and innovations not locally available as certified by the
HoPE,.
66
DOCUMENTARY REQUIREMENTS
Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Business License /CV S Reg. License (Infra.) usiness Sworn
Permit (Consulting Number (Infra.) Tax Statement
Services) Return
Direct Contracting   
[Section 50] For ABCs
above
P500K
Shopping [Sec 52.1(b)]  
Emergency Cases     
(Section 53.2)] For For ABCs
ABCs above
above P500K
P500K
67

Services) Return
Take‐Over of Contracts     
(Section 53.3.2; for new
bidders)
Adjacent/ Contiguous  
(Section 53.4)
Scientific, Scholarly or    
Artistic Work, For ABCs
Exclusive Technology above
and Media Services P500K
(Section 53.6)
68

Services) Return
Highly Technical  
Consultant (Section
53.7)
Small Value      
Procurement (Section
53.9)
Lease of Real Property   
Or Venue (Section Except
53.10) for gov’t
agencies
as lessors
69
POSTING REQUIREMENTS
Advertisement in the newspaper and posting requirements may be

dispensed with provided that the BAC through its Secretariat shall
post the procurement opportunity (RFQ or RFP) in PhilGEPS,
website of PE if available, and conspicuous place in the premise of
PE for a period of at least three (3) calendar days, for the following
methods:
 Limited Source Bidding [Sec. 54.2]
 Shopping [Sec. 52.1(b)] above P50K
 Negotiated Procurement under Two Failed Biddings [Sec. 53.1]
 NGO Participation [Sec. 53.11]
 Small Value Procurement [Sec. 53.9] above P50K
70
PHILGEPS REGISTRATION
Bidders are mandated to register with PhilGEPS, and provide

PhilGEPS Registration Number as a condition for award on the
following modalities:
1. Sec. 50 – Direct Contracting;
2. Sec. 52.1(b) – Shopping for ordinary office supplies and
equipment not available in DBM‐PS;
3. Sec. 53.3 – Take Over of Contracts (Only for New Bidders, if any.);
4. Section 53.6 – Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services;
71
PHILGEPS REGISTRATION
Continuation:
5. Section 53.7 – Highly Technical Consultants;
6. Section 53.9 – Small Value Procurement; and
7. Section 53.10 – Lease of Real Property and Venue.
For Sec. 53.1 ‐ Two Failed Biddings, the BAC shall require the
submission of a Certificate of PhilGEPS Registration in
accordance with Sec. 8.5.2 of the IRR of RA 9184
72
INVITATION OF OBSERVERS
 Generally, invitation of Observers are not required when resorting

to alternative methods of procurement except in those where
competitive bidding or semblance a semblance thereof is still
present, such as in Limited Source Bidding and Negotiated
Procurement (Two Failed Biddings) under Sec. 49 and Sec. 53.1,
respectively, of the revised IRR.
 Under Sec. 13.3 of the revised IRR of RA 9184, Observers shall be

invited at least five (5) cd before the date of the negotiation and the
absence of Observers will not nullify the BAC proceedings,
provided that they have been duly invited in writing.
73
REFERENCE TO BRAND NAMES
 Reference to brand names shall NOT BE ALLOWED except for

items or parts that are compatible with the existing fleet or
equipment of the same make and brand and will maintain the
performance, functionality and useful life of the equipment.
 This rule shall also apply to the goods component of infrastructure

projects and consulting services.
74
DELEGATION OF AUTHORITY
The conduct of the following may be delegated to End‐user unit or

any other appropriate bureau, committee, or support unit duly
authorized by the BAC through a Resolution approved by the HoPE:
1. Shopping
2. Negotiated Procurement under Emergency Cases
3. Small Value Procurement
4. Lease of Real Property and Venue
75
PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of Performance Warranty Security
Procurement Security (PS) (WS)
Limited Source Bidding  
Direct Contracting x 
Repeat Order x 
Two‐Failed Biddings  
In no case shall WS be
required in the
procurement of
Consulting Services.
76
PERFORMANCE and
WARRANTY SECURITIES
Procurement Security
(PS)
Emergency Cases Procuring Entity may Procuring Entity may
require PS depending on require WS depending on
the nature of the the nature of the
procurement project. procurement project.
However, for In no case shall WS be
Infrastructure Projects, required in the procurement
PS is required. of Consulting Services.
Take‐over of Contracts  
Adjacent/Contiguous  For Infrastructure Projects,
WS is required.
77
PERFORMANCE and
WARRANTY SECURITIES
Procurement Security
Small Value Procurement (PS)
Procuring Entity may Procuring Entity may
require PS depending on require WS depending on
the nature of the the nature of the
procurement project. procurement project.
However, for In no case shall WS be
Infrastructure Projects, required in the procurement
PS is required. of Consulting Services.
78
OTHER TERMS AND CONDITIONS
 No procurement shall be undertaken unless in accordance

with APP.
 Most advantageous price for government should be obtained
(Sec. 48.1)
 Splitting of contracts is strictly prohibited (Sec. 54.1)
 Bid security NOT necessary, except in Limited Source Bidding.
 The Uniform Guidelines for Blacklisting of Manufacturers,
Suppliers, Distributors, Contractors, and Consultants also
apply to Alternative Methods of Procurement.
79
THANK YOU!!
Contact us at:
Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph
80

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 No government procurement shall be undertaken unless it is in

 The approval of GPPB before a PE may proceed with the alternative

GOODS INFRASTRUCTURE CONSULTING

 Pre‐selection is based on capability and resources to perform the

 The pre‐selected list of suppliers and consultants shall be

GOODS INFRASTRUCTURE CONSULTING

REQUIREMENTS PRIOR TO CONDUCT:

Items of proprietary nature from proprietary source, i.e patents,

Procurement from the previous winning bidder,

GOODS INFRASTRUCTURE CONSULTING

GOODS INFRASTRUCTURE CONSULTING

 The RFQ may be sent directly to the supplier of known technical,

CONDITIONS [SHOPPING UNDER Sec. 52.1(b)]:

1. Procurement of ordinary or regular office supplies and equipment

STANDARD FORM FOR RFQ

 There is no prescribed template or standard form for the RFQ.

GOODS INFRASTRUCTURE CONSULTING

AWARD OF CONTRACT TO A LONE BIDDER IN SVP

 In SVP, it is mandatory to send the RFQ to at least 3 prospective

Award to LCB (for

 For both Shopping under Sec. 52.1(b) and Small Value

 Request for Quotation/Proposal (For 3 calendar days);

1. No bids were received;

Invite at least Submission

 Criteria in selecting the successful offer:

1. Offer should meet the PE’s minimum technical requirements;

 Observers shall be invited in all stages

FAILURE OF BIDDING AS DECLARED BY HOPE

 If the failure of bidding is due to the declaration by the HOPE

GOODS INFRASTRUCTURE CONSULTING

 In case of imminent danger to life or property during a state of

GOODS INFRASTRUCTURE CONSULTING

The contract, previously awarded through Competitive Bidding, has

1. Invite a short list of at least three (3) suppliers, contractors or

GOODS INFRASTRUCTURE CONSULTING

WHEN ORIGINAL CONTRACT HAS ALREADY BEEN

 The determination and decision to resort to the alternative modality

GOODS INFRASTRUCTURE CONSULTING

5. Sub‐contracting is not allowed. However, the servicing agency

1. Work of art; commissioned work or services of an artist for

4. Scientific, technical, economic, business, trade or legal journal,

GOODS INFRASTRUCTURE CONSULTING

 major defense equipment or materiel

• It is preferred that government agencies lease publicly‐owned

1. The End‐User shall prepare a Cost‐Benefit Analysis

 Lease contracts amounting to more than PhP50,000.00 shall be

GOODS INFRASTRUCTURE CONSULTING

GOODS INFRASTRUCTURE CONSULTING

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Advertisement in the newspaper and posting requirements may be

Bidders are mandated to register with PhilGEPS, and provide

 Generally, invitation of Observers are not required when resorting

 Under Sec. 13.3 of the revised IRR of RA 9184, Observers shall be

 Reference to brand names shall NOT BE ALLOWED except for

 This rule shall also apply to the goods component of infrastructure

The conduct of the following may be delegated to End‐user unit or

 No procurement shall be undertaken unless in accordance

Unit 2506 Raffles Corporate Center

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