1

CONTENT:
• GENERAL MODE OF PROCUREMENT
• COMPETITIVE BIDDING
• STANDARDIZED BIDDING PROCEDURE FOR GOODS AND
INFRA
• I. PRE-PROCUREMENT CONFERENCE
• REFERENCE TO BRAND NAMES
• II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID
• III. PRE-BID CONFERENCE
• CLARIFICATION OF BIDDING DOCUMENTS
• ADDITIONAL REQUIREMENTS
• IV. SUBMISSION AND RECEIPT OF BIDS

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• V. OPENING AND EVALUATION OF 1ST ENVELOPE
• ELIGIBILITY REQUIREMENTS
• MAYOR’S PERMIT
• TAX CLEARANCE
• TAX DELINQUENCY VERIFICATION CERTIFICATE
• COMMITTED LINE OF CREDIT
• NET FINANCIAL CONTRACTING CAPACITY (NFCC)
• STATEMENT OF ON GOING AND COMPLETED CONTRACTS
• PCAB LICENSE
• ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS
• ELIGIBILITY REQUIREMENTS FOR GOVT. CORPORATE ENTITIES
• ELIGIBILITY REQUIREMENTS FOR JOINT VENTURES
• LEGAL ELIGIBILITY CRITERIA
• TECHNICAL ELIGIBILITY CRITERIA
• FINANCIAL ELIGIBILITY CRITERIA
• NFCC COMPUTATION
• BID SECURITY
• BID VALIDITY PERIOD
• DISCLOSURE OF RELATIONS

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VI. OPENING AND EVALUATION OF 2ND ENVELOPE
VII. DETAILED EVALUATION OF BIDS
DOMESTIC PREFERENCE
VIII. POST-QUALIFICATION
RECOMMENDATION OF AWARD
FAILURE OF BIDDING
RESERVATION CLAUSE
IX. AWARD OF CONTRACT
PERFORMANCE SECURITY
NOTICE TO PROCEED
RETENTION MONEY
LIQUIDATED DAMAGES

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 GENERAL MODE OF PROCUREMENT

 Procurement is done through Competitive Bidding.

(Sec. 10, RA 9184; NPM 67-2012)

 Exception: Alternative Methods of Procurement.

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 COMPETITIVE BIDDING

WHAT IS COMPETITIVE BIDDING?

It is 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. (Section 5(h), IRR of
RA 9184)

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 COMPETITIVE BIDDING

Municipal Order requiring an accreditation process for

Bidders as a condition precedent for their participation in
procurement activities of the local government unit runs
counter RA 9184 and its IRR as it would limit the
participation of bidders only to those accredited suppliers,
to the exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic principles of
competitive bidding.

NPM 80-2014

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 STANDARDIZED BIDDING PROCEDURE
FOR GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference

Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope – Financial
Docs & Technical
Proposal
Proposal

Bid Evaluation Post-qualification Award of

& Ranking Contract

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 I. PRE-PROCUREMENT CONFERENCE

 Purpose: Determine the readiness of the procurement

 Conducted prior to advertisement/posting of the

Invitation to Bid

 Mandatory for projects with ABC above PhP 2M (goods)

or 5M (infra projects)

 Attended by the following:

a) BAC
b) BAC Secretariat
c) TWG
d) Consultants
e) End-user unit/Other officials
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 REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

 The prohibition applies to the procurement of goods,
and goods component of Infrastructure Projects and
Consulting Services.

 Specifications should be based on relevant

characteristics, functionality and performance
requirements, except for items or parts that are compatible
with the existing fleet or equipment of the same make and
brand, and to maintain the performance, functionality and
useful life of the equipment.

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Importance:

 Signals the start of the bidding process.

 Signals the availability of the bidding documents to the

prospective bidders. (if not mentioned in the Invitation
to Bid) (Sec. 17.3, IRR of RA 9184)

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
 At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at
least two (2) years before advertisement date.

 Not required for projects with ABC of 2M 10M and

below for Goods or 5M 15M and below for
Infrastructure Projects. (Sec. 21.2.1(c), 2016 IRR of RA
9184)

Two (2) years after the effectivity of the IRR,

advertisement shall no longer be required unless the PE
cannot post its opportunities in the PhilGEPS for justifiable
reasons.
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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID

 Posted continuously for 7 calendar days (cd):

• PhilGEPS
• website of the PE, if any.
• At any conspicuous place in the premises of the
PE.

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M (10M) for
Above 2M (10M)
Goods/ 5M (15M)
Medium for Goods/
for Infra
5M (15M) for Infra
and below
Newspaper of General Nationwide
 
Circulation
PhilGEPS website  
PE’s Website, if available  
Conspicuous Place  
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign  
funded procurement

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 III. PRE-BID CONFERENCE
 Forum where the PE’s representatives & the bidders
discuss the different aspects of the project

 Open to prospective bidders but attendance is not mandatory.

(Sec. 22.3, 2016 IRR of RA 9184)

 Mandatory – ABC 1M or more; Discretionary – ABC

less than 1M

 Held at least 12 cd before deadline for bid submission

but not earlier than seven (7) cd from the PhilGEPS posting of
the Invitation to Bid or Bidding Documents.

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 III. PRE-BID CONFERENCE
 May be held at least 30 cd before the deadline for the
submission and receipt of bids considering the
following:

a) Method, nature, and complexity of contract

b) International participation is more advantageous

 The pre-bid conference shall discuss, clarify and

explain, among other things, the eligibility requirements
and the technical and financial components of the
contract to be bid including questions and clarifications
raised by the prospective bidders before and during the
Pre-Bid Conference. (Sec. 22.3, IRR of RA 9184)
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 III. PRE-BID CONFERENCE

 Pre-bid conference may be conducted in person or face-to-

face through videoconferencing, webcasting, or similar
technology, or a combination thereof.

 PEs with videoconferencing capabilities that have

manufacturers, suppliers, distributors, contractors and/or
consultants that also have videoconferencing capabilities may
conduct their pre-bidding conferences electronically.

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 CLARIFICATION OF BIDDING
DOCUMENTS
 Supplemental/Bid Bulletins– issued by BAC to answer
requests for clarification (query submitted 10 cd before
deadline) or interpretation, and upon BAC’s initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).

 Posted in PhilGEPS and PE’s website, and at any

conspicuous place within the premises of the Procuring Entity.
(Sec. 22.5.3, 2016 IRR of RA 9184)

 Bidders who have submitted bids before issuance of

Supplemental/Bid Bulletin must be informed in writing
and allowed to modify or withdraw their respective bids
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 IV. SUBMISSION AND
RECEIPT OF BIDS
Re-scheduling of bid opening (due to justifiable reasons,
i.e lack of quorum, cancellation of office work due to bad
weather)

• In case the bids cannot be opened as scheduled due to

justifiable reasons, the BAC shall take custody of the bids
submitted and reschedule the opening of bids on the next
working day or at the soonest possible time through the
issuance of a Notice of Postponement to be posted in the
PhilGEPS website and the website of the PE (Sec. 29, 2016
IRR of RA 9184)
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 IV. SUBMISSION AND
RECEIPT OF BIDS
 Two-Envelope System
 1st Envelope – Eligibility Requirements and Technical Component
 2nd Envelope – Financial Component

 Submitted to the BAC on the date, time, and place specified in the
Invitation to Bid. Bids submitted after the deadline should not be accepted.

 Date of submission should not be later than the following period from the
last day of posting of the Invitation to Bid (Sec. 25.4) (Sec. 25.5, 2016 IRR of
RA 9184)

Category Maximum Period (cd)

Goods 45
Infra (50M and below) 50
Infra (above 50M) 65

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements (Legal, financial and technical)
2. Bid Security
3. Technical specifications (Goods) / Project requirements
(Infra)
4. Omnibus sworn statement
 Non-inclusion in blacklist  Responsibilities of bidders
 Authenticity of documents  Labor laws and standards
 Verification authority  Non-payment (directly or
 Signatory’s authority indirectly) any commission,
amount, fee, or any form of
 Disclosure of relations consideration in relation to any
procurement project or activity

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 ELIGIBILITY REQUIREMENTS
GOODS
Class A Documents
LEGAL (2009 IRR):
1. DTI/SEC/CDA Registration
2. Mayor’s permit or equivalent
document for Exclusive Economic
Zones or Areas
3. Tax clearance per Executive
Order 398, series of 2005, as finally
reviewed and approved by the
BIR.
LEGAL (2016 IRR):
1. PhilGEPS Certificate of
Registration and Membership
INFRASTRUCTURE
1. DTI/SEC/CDA Registration
2. Mayor’s permit or equivalent
document for Exclusive Economic
Zones or Areas
3. Tax clearance per Executive
Order 398, series of 2005, as finally
reviewed and approved by the
BIR.
1. PhilGEPS Certificate of
Registration and Membership
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 ELIGIBILITY REQUIREMENTS

Submission of PhilGEPS Certificate of Registration and

Membership in lieu of the Class “A” eligibility documents under
Sections 23.1(a) and 24.1(a)

Section 8.5.2, 2016 IRR of RA 9184 - All bidders shall upload and
maintain in PhilGEPS a current and updated file of the following
Class “A” eligibility documents under Sections 23.1(a) and 24.1(a):
a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.
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 ELIGIBILITY REQUIREMENTS

Submission of PhilGEPS Certificate of Registration and

Membership

 For foreign bidders participating in the procurement by a

Philippine Foreign Service Office or Post, they shall submit
their eligibility documents under Section 23.1, 2016 IRR of
RA 9184. Provided, that the winning bidder shall register
with the PhilGEPS in accordance with Sec. 37.1.4 of the
2016 IRR of RA 9184.

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 ELIGIBILITY REQUIREMENTS
GOODS INFRASTRUCTURE
TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC
3. PCAB license and registration.
FINANCIAL:
1. Audited financial statement 1. Audited financial statement
2. NFCC computation or committed 2. NFCC*
Line of Credit*
Class B Document
JVA or notarized statement from In case of JV, JVA entered into by
the partners that they will enter the parties.
into joint venture if awarded the
contract.
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 MAYOR’S PERMIT

 Mayor’s Permit allows an entity to legally perform the

requirements and obligations of the project and the
resultant contract.

 Recently expired Mayor’s/Business permit shall be

accepted together with the official receipt as proof that
the bidder has applied for renewal within the period
prescribed by the concerned local government unit: Provided,
that the renewed permit shall be submitted as a post-
qualification requirement in accordance with Sec. 34.2 of
the 2016 IRR of RA 9184

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 TAX CLEARANCE

 Submission of BIR receipt for renewal of Tax

Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not allowed
under Section 34.2 of the IRR of RA 9184.

 Submission of Provisionary Tax Clearance issued by

the BIR for bidding purposes is not acceptable form of
Tax Clearance. (GPPB Resolution No. 01-2014)

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 COMMITTED LINE OF CREDIT

• A committed credit line is a monetary spending

loan balance offered by a financial institution that
cannot be suspended without notifying the
borrower. A committed credit line is a legal
agreement outlining the conditions of the credit
line between the financial institution and the
borrower.

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 COMMITTED LINE OF CREDIT

 In the case of procurement of Goods, a bidder may opt to

submit a committed Line of Credit (CLC) from a universal or
commercial bank, in lieu of its NFCC computation. (Sec. 23.1
(a) (viii), 2016 IRR of RA 9184)

 CLC does not apply to procurement of Infrastructure

Projects.

 If the bidder submits a CLC, it must be at least equal to ten

percent (10%) of the ABC to be bid: Provided, that if the same
is issued by a foreign Universal or Commercial Bank, it shall be
confirmed or authenticated by a local Universal or Commercial
Bank.
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 NET FINANCIAL CONTRACTING
CAPACITY (NFCC)

 For goods and infrastructure projects, the NFCC’s K factor

shall be fixed at 15, regardless of contract duration

 The values of the domestic bidder’s current assets and current

liabilities shall be based on the latest Audited Financial
Statements submitted to the BIR .

 For purposes of computing the foreign bidder’s NFCC, the

value of the current assets and current liabilities shall be based
on their Audited Financial Statements prepared in
accordance with international financial reporting
standards.
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 STATEMENT OF ON GOING AND
COMPLETED CONTRACTS
 Statement of the prospective bidder of all its ongoing
government and private contracts, including contracts
awarded but not yet started, if any, whether similar or not
similar in nature and complexity to the contract to be
bid. (Sec. 23.1(a)(iv), IRR of RA 9184)

 For the procurement of Goods, the statement identifying

the bidder’s single largest completed contract similar to
the contract to be bid, except under conditions provided
for in Section 23.5.1.3 Section 23.4.1.3 of this IRR, must be
within the relevant period as provided in the Bidding
Documents.
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 PCAB LICENSE

 A valid PCAB license required as an eligibility requirement

for the procurement of infrastructure projects should be
valid at the time of the deadline for the submission and
opening of bids.

 The submission of a PCAB license with validity period after

the date of the opening of the bids is a ground for the
prospective bidder’s disqualification. (NPM 71-2013)

 As such, the submission of a PCAB License and Registration

cannot be dispensed within the procurement of
infrastructure projects. (NPM 126-2014)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
In the case of foreign bidders, appropriate equivalent
documents issued by the country of the foreign bidder
under Class “A” Documents shall be submitted, provided
that:
 The documents are in English, or
 If the documents submitted are in a foreign language
other than English, it must be accompanied by a
translation of documents in English by any of the
following:
a) relevant foreign government agency;
b) the foreign government agency authorized to
translate documents, or
c) a registered translator in the foreign bidder’s
country.
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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
 Shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent
office having jurisdiction over the foreign bidder’s
affairs in the Philippines.

 Only upon actual determination and confirmation of this

equivalence through post qualification by the BAC may
it be categorically resolved that the foreign documents
submitted are acceptable substitutes of the required
eligibility documents pursuant to Section 23.2 of the IRR.
(NPM 42-2013)

44
 ELIGIBILITY REQUIREMENTS FOR
GOVT. CORPORATE ENTITIES

Government-Owned or -Controlled Corporation

(GOCCs) may be eligible to participate only if they can
establish that they:

1. are legally and financially autonomous,

2. operate under commercial law, and
3. are not attached agencies of the procuring entity.
(Sec. 23.5, 2016 IRR of RA 9184)

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
R.A. 4566 and its IRR.
agreement
WITHOUT AN EXISTING JOINT *Submission of a duly
notarized statement is
VENTURE: submission by each of the not applicable.
potential JV members of a duly notarized
statement stating that they will enter into
and abide by the provisions of the joint
venture in case their bid is successful.
Failure to enter into a joint venture in the event
of a contract award shall be ground for the
forfeiture of the bid security. (Sec. 23.1(b),
2016 IRR of RA 9184)
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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

 All co-venturers shall submit their legal documents,

while any of the co-venturers shall submit technical and
financial documents.

 Each partner of the joint venture shall submit the PhilGEPS

Certificate of Registration in accordance with Sec. 8.5.2 of the
2016 IRR of RA 9184.

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 LEGAL ELIGIBILITY CRITERIA
GOODS
• General rule: 60% Filipino
• Foreign bidder allowed if:
1) Stated in treaty or international or
executive agreement;
2) National of a country offering
reciprocity rights to Filipinos;
3) Goods not available from local
suppliers; or
4) To prevent situations that defeat
competition or restrain trade
INFRASTRUCTURE
• General rule: 75% Filipino
• Foreign contractors allowed if stated
in treaty or international or executive
agreement
• If joint venture, less than 75% is
allowed if -
• Structures to be built require
techniques not possessed by 75%
Filipino-owned; and
• Not less than 25% Filipino
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 TECHNICAL ELIGIBILITY CRITERIA

 Previous contract

 Similar to the contract to be bid out (as defined by the

Bidding Documents)

 Completed within a period as defined by the Bidding

Documents

 25% of the ABC (expendable supplies)

 50% of the ABC (non-expendable supplies)

- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
consumer price index.
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 TECHNICAL ELIGIBILITY CRITERIA

GOODS – SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:

1. Expendable If, at the outset and a) At least 2 similar
Supplies after market contracts aggregate
• 25% of the ABC research, applying amount at least
the general rule will equivalent to
2. Services and Non- likely result to: required percentage;
expendable supplies and
• 50% of the ABC 1. Failure of bidding;
or b) Largest of the similar
contracts amounts to
2. Monopoly at least 50% of
required percentage

52
 TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods Non-expendable Goods

ABC = P1,000,000.00 ABC = P1,000,000.00

GR: 25% of the ABC GR: 50% of the ABC

THUS: Previous contract should be at least THUS: Previous contract should be at least
P250,000.00 (required percentage) P500,000.00 (required percentage)

EXCEPTION: The aggregate amount of at EXCEPTION: The aggregate amount of at

least 2 similar contracts is at least equivalent least 2 similar contracts is at least equivalent to
to the required percentage; and Largest of required percentage; and Largest of the similar
the similar contracts amounts to at least 50% contracts amounts to at least 50% of required
of required percentage. percentage.

THUS: 1st contract = P100,000.00 THUS: 1st contract = P300,000.00

2nd contract = P200,000.00 2nd contract = P400,000.00

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 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT

 Previous contract
 Similar to the contract to be bid, except under conditions
provided for in Sec. 23.5.1.3 Sec. 23.4.1.3 of the IRR
 50% of the ABC
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
 For foreign funded procurement, a different track record
may be agreed upon

54
 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT

Exception:
 Contractors under Small A and Small B categories without
similar experience on the contract to be bid may be allowed to bid if
the cost of such contract is not more than the Allowable
Range of Contract Cost (ARCC) of their registration based on
the guidelines as prescribed by the PCAB.
 A contract shall be considered “similar” to the contract to be bid
if it has the same major categories of work. The PE may clarify
in the Bidding Documents what is regarded as major categories of
work.

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 FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE PROJECTS:

 Audited Financial Statement (showing prospective

bidder’s total and current assets and liabilities. )
 NFCC at least equal to ABC.

57
 NFCC COMPUTATION

Net Financial Contracting Capacity (NFCC) =

(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)

(K) = 10 (contract is 1 year or less)

15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)

The constant NFCC’s K factor is set at 15, regardless of

contract duration
58
 BID SECURITY

 Only 1 form of Bid Security is required to be submitted

 In general, bank issued securities must be issued by a

universal or commercial bank

 However, in biddings conducted by LGUs, securities

may be issued by banks certified by BSP as
authorized to issue said instruments
 Surety Bonds must be accompanied by certification
from Insurance Commission that issuer is authorized to
issue such security

 Bidders have the option to choose their preferred form of bid

security (Sec. 27.2, 2016 IRR of RA 9184)
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 BID SECURITY

 Bid securities shall be returned only after the bidder

with the Lowest Calculated Responsive Bid has signed
the contract and furnished the performance security,
except to those declared by the BAC as failed or post-
disqualified in accordance with this IRR, upon
submission of a written waiver of their right to file a
request for reconsideration and/or protest.

61
 BID SECURITY

Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check

b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
demand
d) Combination of the foregoing
d) Bid Securing Declaration
2%
5%
Proportionate to share of form
with respect to the total
amount of security
No percentage required

62
 BID SECURING DECLARATION

Bid Securing Declaration

 an additional form of bid security

 A document/undertaking signed by the bidder

committing to pay the corresponding fine and be
suspended for a period of time from being qualified
to participate in any government activity in the event
of violation of any of the conditions stated therein as
required by the GPPB Guidelines. (GPPB Resolution
No. 03-2012, 27 January 2012)

63
 BID SECURING DECLARATION

Conditions:
 The Bid Securing Declaration shall be enforced when the
bidder commits any act resulting to the forfeiture of bid
security under:

- Section 23.1(b) – failure to enter into a joint venture in the

event of contract award
- Section 34.2 – failure to submit post-qualification
requirements on time or a finding against the veracity of
such
- Section 40.1 – failure to enter into a contract with the PE
- Section 69.1 – administrative sanctions
(GPPB Resolution No. 15-2014, 20 June 2014)
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 V. OPENING AND EVALUATION OF
1ST ENVELOPE

To ensure transparency and accurate representation of the bid

submission, the BAC Secretariat shall notify in writing all
bidders whose bids it has received through its PhilGEPS-
registered physical address or official e-mail address. The
notice shall be issued within seven (7) cd from the date of the bid
opening. (Sec. 25.7, 2016 IRR of RA 9184)

65
 V. OPENING AND EVALUATION OF
1ST ENVELOPE

Unsealed or unmarked bid envelopes shall be rejected.

However, bid envelopes that are not properly sealed and
marked, as required in the Bidding Documents, shall be
accepted, provided that the bidder or its duly authorized
representative shall acknowledge such condition of the bid as
submitted. The BAC shall assume no responsibility for the
misplacement of the contents of the improperly sealed or marked
bid, or for its premature opening. (Sec. 25.9, 2016 IRR of RA
9184)

66
 BID VALIDITY PERIOD

 Bids and bid securities (including bid securing

declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid Docs.

 Not to exceed 120 cd

 If the period is extended, PE shall request in writing all

those who submitted bids for such extension before the
expiration date. However, bidders have a right to refuse
to grant such extension without forfeiting their bid
security.

67
 DISCLOSURE OF RELATIONS

Relatives within the third civil degree, by affinity or

consanguinity of the following shall be disqualified:

 Head of the procuring entity

 Members of the BAC, Secretariat and TWG
 Head of the end-user unit or project management
office or implementing unit
 Project consultants

68
 VI. OPENING AND EVALUATION OF
2ND ENVELOPE

CONTENTS:

1. Financial Bid Form (includes bid prices and bill of

quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI if
claiming preference as Domestic Bidder (RA 10667)
3. Other documents required in the bidding
documents

NOTE: Only the 2nd envelope of eligible bidders whose

1st envelope have been rated “passed” shall be opened.

69
 VII. DETAILED EVALUATION
OF BIDS
 Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to
highest

 A non-discretionary criterion shall be used, which shall

include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections

70
 VII. DETAILED EVALUATION
OF BIDS
 No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.

 The “no contact” rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination until the issuance of Notice of Award.

 No communication should be made by bidders until a decision

to award a contract is made by the BAC.

 Bidders who waived their right to utilize the protest mechanism

or those whose request for reconsideration and/or protest were
subsequently denied are not covered by the prohibition under
Sec. 32.1 of RA 9184 IRR. (NPM 07-2013)
71
 VII. DETAILED EVALUATION
OF BIDS

 Unless the ITB specifically allows partial bids, those not

providing all required items shall be considered non-
responsive

 Placing no price is considered as non-responsive

 Specifying a “0” or “-” means it is offered for free

72
 DOMESTIC PREFERENCE

 Applicable only for GOODS

 Applies where the lowest bid has a foreign component

(foreign bid/entity) and the next lowest bid has a
domestic component (domestic bidder/entity)

 Requires procuring entity to give preference to domestic

bidder PROVIDED that:

1. The lowest foreign bid is increased by 15%; and

2. The lowest domestic bidder matches the lowest bid
of the foreign bidder

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 DOMESTIC PREFERENCE

SAMPLE COMPUTATION
Next Lowest Calculated
Lowest Calculated Bid
Bid
Foreign Bidder Domestic Bidder/Entity
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as increased 3,051,364.00 3,009,492.00

Award to Domestic Bidder/Entity at 2,653,360.00, or

Result Award to Foreign Bidder if Domestic Bidder/Entity refuses

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 VIII. POST-QUALIFICATION

 To determine whether bidder with LCB complies with

and is responsive to all requirements and conditions of
eligibility and the bidding of the contract – to be
declared the Lowest Calculated and Responsive Bid
(LCRB)

 A non-discretionary pass/fail criterion shall be used to

“Verify, Validate and Ascertain” all statements and
documents (licenses, certificates, etc.)

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 VIII. POST-QUALIFICATION

 Completed in not more than 7 cd 12 cd, or up to 30 cd

45 cd in exceptional cases, upon approval of the HOPE.

 In case of post-disqualification of the LCB, the BAC shall be

given the same fresh period to conduct the post-
qualification of the next lowest calculated bid. (Sec. 34.8,
2016 IRR of RA 9184)

 BAC will notify the Bidder with the Lowest Calculated

Bid that it was determined as such. (Sec. 34.2, IRR of RA
9184)

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 VIII. POST-QUALIFICATION

 Within 3 c.d (5 cd) from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration; and
3. Other appropriate Licenses and permits required by
law and stated in the Bidding Documents.

 Failure to submit any of the post-qualification requirements

on time, or a finding against the veracity thereof, shall
disqualify the bidder for award. Should there be a finding
against the veracity of any of the documents submitted, the
Bid Security shall be forfeited in accordance with Sec. 69 of
the 2016 IRR of RA 9184.
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 VIII. POST-QUALIFICATION

For Goods, the BAC shall check:

a) Delay in the partial delivery of goods amounting to ten percent
(10%) of the contract price in its ongoing government and private
contracts;
b) If any of these contracts shows the bidder’s failure to deliver or
perform any or all of the goods or services within the period(s) specified
in the contract or within any extension thereof granted by the PE
pursuant to a request made by the supplier prior to the delay, and such
failure amounts to at least ten percent (10%) of the contract price; or
c) Unsatisfactory performance of the supplier’s obligations as per
contract terms and conditions at the time of inspection.

If the BAC verifies any of these deficiencies to be due to the bidder's fault or
negligence, the BAC shall disqualify the bidder from the award, for the
procurement of Goods. (Sec. 34.3(b), 2016 IRR of RA 9184)
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 VIII. POST-QUALIFICATION

For Infrastructure Projects, BAC shall check:

a) Negative slippage of at least 15% in any one project or
a negative slippage of at least 10% in each of 2 or
more contracts;
b) Failure of the contractor to commence repair works on
ongoing contracts in accordance with Section 34.3
c) Failure of the contractor to commence repair works on
contracts with pending certificates of acceptance in
accordance with Sec. 34.3
d) Substandard quality of work or unsatisfactory
performance at the time of inspection.
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 RECOMMENDATION OF AWARD

The BAC shall notify all other bidders, in writing, of its

recommendation to HOPE of award of contract to LCRB/HRRB
within 3 cd from the issuance of the resolution recommending
award. (Sec. 37.1.1, 2016 IRR of RA 9184)

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 RECOMMENDATION OF AWARD

 The BAC shall recommend award of contract to the

LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price, whichever is
lower.

 The HOPE has 7 cd 15 cd to decide whether or not to

approve or disapprove the recommendation. For GOCCs
and GFIs, the period provided shall be 15 cd.

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 FAILURE OF BIDDING

GROUNDS:

1) No bids received
2) Bids received but no one was eligible
3) All bids failed to post qualify
4) Someone post qualified but refused w/o justifiable
cause to accept the award.

(Sec. 35, IRR of RA 9184)

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 FAILURE OF BIDDING

EFFECTS:

1) Mandatory review shall be conducted by BAC

2) Based on findings, BAC shall:
 Revise terms, conditions, specifications
 Adjust ABC, subject to required approvals
3) Re-bidding
4) Re-advertisement

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 RESERVATION CLAUSE

 HOPE reserves the right to:

◦ Reject any and all bids;
◦ Declare a failure of bidding;
◦ Not award the contract.
(Sec. 41, IRR of RA 9184)

 GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding
procedures;
3. For justifiable reasons, the award of contract will not redound to the
benefit of the Government:
 Physical and economic conditions have significantly changed;
 Project is no longer necessary
 Source of funds for the project has been withdrawn/reduced.
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 IX. AWARD OF CONTRACT

 Contract shall be awarded to the bidder with the Lowest

Calculated and Responsive Bid (LCRB) at its submitted
price or total calculated bid price, whichever is lower

 In case of approval of the recommendation of the BAC,

the Notice of Award (NOA) shall be immediately issued
by HOPE to the LCRB.

 The BAC Sec shall post the NOA in the PhilGEPS and
PE’s websites, and in any conspicuous place within 3
cd from its issuance.

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 IX. AWARD OF CONTRACT

 Award of contract is subject to the following conditions

within 10 cd from issuance of NOA:

- If joint venture, submission of JVA

- In the case of procurement by a Philippine Foreign Office
or Post, PhilGEPS Registration Number
- If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
- Posting of Performance Security
- Signing of Contract upon compliance with all
documentary requirements
- If required, approvals by higher authority
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 PERFORMANCE SECURITY

 Posted by winning bidder upon signing of contract to

guarantee performance of obligation, in such form and
amount specified in the Bidding Documents.

EFFECTS OF FAILURE TO POST:

1. Ground for disqualification

2. Next-ranked LCB shall undertake post-qualification
3. Bid security shall be forfeited without prejudice to the
imposition of sanctions

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 PERFORMANCE SECURITY

Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashier’s/manager’s
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
30%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security

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 IX. AWARD OF CONTRACT

 When required, the approving higher authority or his

duly authorized representative shall be given a
maximum of 15 cd 20 cd from receipt to approve or
disapprove the contract.

 In the case of GOCCs, the concerned board or its duly

authorized representative shall be given a maximum of
25 cd 30 cd from receipt to approve or disapprove the
contract.

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 IX. AWARD OF CONTRACT

PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS

In the case of Jacomille v. Abaya, et al., the petitioner contends that

the public respondents failed to comply with the periods provided
by law, specifically the 3-month period from the opening of the bids
up to the award of the contract under Section 38 of RA 9184. The
Supreme Court held that “[t]he different periods provided by RA
9184 within which certain stages of the procurement process must
be completed is not merely directory but mandatory.” Thus, it
concluded that such irregularity rendered the procurement process
null and void. (G.R. No. 212381, 22 April 2015)

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 NOTICE TO PROCEED

 The concerned PE shall issue the Notice to Proceed

(NTP) together with a copy or copies of the approved
contract to the successful bidder within 3 cd 7 cd from
the date of approval of the contract by the appropriate
government approving authority.

 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 BAC Sec shall post the NTP and the approved
contract in the PhilGEPS and PE’s websites within 15 cd
from the issuance of the NTP.
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 RETENTION MONEY

 For Goods, retention money is 10% at least 1% (Sec. 62,

2016 IRR of RA 9184)

 For Infrastructure Projects, retention money is 10%

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 LIQUIDATED DAMAGES

Once the cumulative amount of liquidated damages

reaches ten percent (10%) of the amount of the contract,
the PE shall may rescind or terminate the contract,
without prejudice to other courses of action and remedies
available under the circumstances.

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THANK YOU!!

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