Competitive Bidding Procedure - Procurement of Goods & Infra

Competitive Bidding Procedure -
Procurement of Goods & Infra

Renato M. de Vera, MNSA, CESO III
Regional Director, DBM-RO IV-B
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.
Competitive Bidding Procedure - Procurement of Goods & Infra

Advertisement/Posting Pre-bid Conference Bid Opening
Contract Award Post-Qualification Bid Evaluation

also known as….
Single-Stage
Bidding Procedure

for the procurement of Goods….
where, due to the nature of the requirements of the project, the
required technical specifications/requirements of the contract
cannot be precisely defined in advance of bidding, or where
the problem of technically unequal bids is likely to occur, a
Two-Stage
Sec. 30.3, IRR
Bidding Procedure
may be employed.

What are the steps in a…
Two-Stage Sec. 30.3, IRR
Bidding Procedure?
First Stage:
✤ prospective bidders shall submit their respective eligibility requirements if
needed, and initial technical proposals only (no price tenders);
✤ BAC evaluates the technical merits of the proposals received vis-a-vis the
performance standards required;
✤ meeting/discussion shall be held by the BAC with those eligible bidders whose
technical tenders meet the minimum required standards for the purpose of final
revised technical specifications/requirements of the contract;

What are the steps in a…
Two-Stage Sec. 30.3, IRR
Bidding Procedure?
Second Stage:
✤ Once the final revised technical specifications are completed and duly approved
by the concerned BAC, copies of the same shall be issued to all the bidders
identified in the first stage;
✤ eligible bidders shall then be required to submit their revised technical
tenders, including their price proposals in two (2) separate sealed envelopes
at a specified deadline;
✤ BAC shall proceed in accordance with the procedure for single-stage bidding.


… but before any procurement is undertaken, the following requirements should be
considered first:
All procurement should be within the approved budget

of the procuring entity and should be meticulously
planned…
No government procurement shall be undertaken unless it

is in accordance with an approved Annual Procurement
Plan…
Sec. 7, R.A. 9184

… but before any procurement is undertaken, the following requirements should
be considered:
The bidding documents shall be prepared following

standard forms prescribed by the GPPB…
Section 17.1, IRR
The specifications and other terms in the bidding

documents shall reflect minimum requirements or
specifications…
Section 17.2, IRR

… but before any procurement is undertaken, the following requirements should
be considered:
Specifications for the procurement of goods shall be based on

relevant characteristics and/or performance requirements.
Reference to brand name shall not be allowed.
Section 18, IRR
No bidding for infra projects unless the detailed engineering

investigations, surveys and designs, including the acquisition
of ROW, have been sufficiently carried out and duly approved
by the HOPE.
Section 17.6, IRR

after all of those have been considered, but prior to advertisement
or issuance of Invitation to Bid…
the BAC, through

the BAC Secretariat
shall call for a…
Section 20.1, IRR

Pre-Procurement
Conference
but the holding of…
Pre-Procurement Section 20.2 IRR
Conference
may not be required for the
following small procurements:
P2 million and below - Goods
P5 million and below - Infra

during the Pre-Procurement Conference, the participants, led by the BAC shall…
✤ Confirm the description and scope of the contract, the ABC, and contract duration;
✤ Ensure that the procurement is in accordance with project and APP;
✤ Determine the readiness of the procurement at hand;
✤ Review, modify and agree on the criteria for eligibility screening, evaluation and
post-qualification;
✤ Review and adopt the procurement schedule, including deadlines and
timeframes, for the different activities; and
✤ Reiterate and emphasize the importance of confidentiality.
Section 20.1, IRR

“Section 20…The pre-procurement conference shall assess the readiness of the
procurement in terms of confirming the certification of availability of funds, as
well as reviewing all relevant documents and the draft Invitation to Bid, as well as
consultants hired by the agency concerned and the representative of the end -user.
xxx
The above-cited provisions of R.A. No. 9184 demonstrate that the law requires the
availability of funds before the procuring entity commences the procurement of a
government project. As early as the conception of the ABC, the procuring entity
is mandated by law to ensure that its budget is within the GAA and/or continuing
appropriation. In the procurement planning stage, the procuring entity is again
reminded that all procurement must be within its approved budget. Also, even
before the issuance of the invitation to bid, the law requires a pre-procurement
conference to confirm the certification that the funds for the government project
are indeed available. “
Reynaldo M. Jacomille vs. Joseph Emilio Abaya
G.R. 212381, 22 April 2015
22

Advertisement
and/or Posting
Advertisement
and Posting Section 21.2.1, IRR
the Invitation to Bid shall be….

✤ Advertised at least once in a newspaper of general nationwide circulation; and
✤ Posted continuously for seven (7) c.d., starting on date of advertisement, in:
PhilGEPS website;
website of procuring entity (if available);
website prescribed by the foreign gov’t or IFI (if applicable); and
any conspicuous place reserved for the purpose in the premises of the
procuring entity, as certified by the head of the BAC Secretariat.

the following are exempted from…
Advertisement Section 21.2.2, IRR
in newspaper
✤ Contracts with an ABC of:
P2 Million and below for procurement of Goods;

P5 Million and below for procurement of Infra; and
✤ All cases of Alternative Methods of Procurement, no matter

what amount.

Pre-Bid
Conference
at least one mandatory…
Pre-Bid Section 22.1, IRR
Conference
for contracts with an ABC of
P 1 Million or more
…if ABC is less than P1 Million, it may be

conducted at the discretion of the BAC.

Conference
shall be held at least
12 c.d 30 c.d
…before the deadline for submission and receipt of bids.

participants in…
Pre-Bid BAC
Conference BAC Secretariat
TWG, if any
End-user unit
Consultant(s), if any
Observers
Bidders who choose to attend

participation of bidders in…
Conference
at the option of the Procuring Entity

…only bidders who have purchased bidding
documents shall be allowed to participate; and
… raise written requests or clarifications.

as a result of the…
Pre-Bid Section 22.4 and

Section 22.5, IRR
Conference
… minutes of the pre-bid shall be recorded and made available to all
participants NLT 3 c.d. after;
… Supplemental/Bid Bulletin, modifying any terms in the bid docs or

in response to any written request for clarification submitted by any
bidder and received by the BAC at least 10 c.d. before the deadline for
submission of bids, shall be issued at least 7 c.d. before the deadline
for submission of bids, and posted in PhilGEPS and agency website,
if any.

Bid
Opening
at the deadline for submission
of bids and…
Bid Section 25.1, IRR
Opening
Bidders shall submit their bids through their duly

authorized representative using the forms specified in the
Bidding Documents in two (2) separate sealed bid
envelopes, and which shall be submitted simultaneously.

participants during….
Bid BAC
Opening BAC Secretariat
TWG, if any
End-user unit
Consultant(s), if any
Observers
Bidders, who choose to attend, or
their duly authorized representatives

during…
Bid Section 29, IRR
Opening
✤ BAC shall open bids immediately after the deadline for submission and receipt of
bids;
✤ Bidders or their duly authorized representatives may attend the opening of bids;
✤ BAC shall adopt a procedure for insuring the integrity, security and confidentiality
of all bids;
✤ Minutes of bid opening shall be made available to the public upon written request
and payment of the specified fee to recover cost of materials.

during….
Bid Section 25.2(a) and

Opening Technical
Envelope
Section 30.1, IRR
the BAC shall open

the 1st envelope in
public to determine
compliance with the following technical
information/documents required:
For Procurement of Goods:
i. Eligibility Requirements
(under Sec. 23.1 of the IRR)
during…. Section 23.1(a)(i), IRR
Bid
For Procurement of Goods and Infra:
Opening Technical
Envelope i. Eligibility Requirements (under
Sec. 23.1 of the IRR)
a) Class “A” Documents
Legal Documents
i. Registration certificate from SEC, DTI for sole proprietorship, or CDA

for cooperatives, OR any proof of such registration as stated in the
Bidding Documents.

during…. Section 23.1(a)(ii), IRR
Bid For Procurement of Goods and Infra:

Technical
Opening Envelope i. Eligibility Requirements (under
Legal Documents
ii. Mayor’s permit issued by the city or municipality where the principal
place of business of the prospective bidder is located.
(Acceptability of recently expired Mayor’s permit, submitted together

with a copy of Official Receipt evidencing renewal.)

during…. Section 23.1(a)(iii), IRR
Bid
Opening Technical
Legal Documents
iii. Tax Clearance per Executive Order No. 398, Series 2005, as finally
reviewed and approved by the BIR.

during…. Section 23.1(a)(iv), IRR
Bid Technical
Opening Sec. 23.1 of the IRR)
SLCC at least 50% of the ABC
or 25% of ABC for Expendable Supplies
Technical Documents
iv. Statement of ALL 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; and
Statement identifying the bidder’s SLCC similar to the contract to be

bid, within the relevant period as provided in the bidding documents.

Exception: Goods - No SLCC Section 23.5.1.3, IRR
If at the outset and after conducting market research, the PE can already determine
that imposing the same will likely result to: (a) failure of bidding, or (b) monopoly
that will defeat the purpose of public bidding, the procuring entity, in lieu of the SLCC,
may require the following:
1) Prospective bidder should have completed at least two (2) similar contracts and
and the aggregate contract amounts should be equivalent to at least 50% of the ABC
or at least 25% of the ABC (in case of Expendable Supplies);
2) The largest of these similar contracts must be equivalent to at least half of the
percentage of the ABC as required above.
(Note: The similar contracts must have been completed within the period specified
in the Invitation to Bid. The PE may clarify in the bidding docs the definition
or description of what it considers to be similar project.)
Exception:
Infra - No similar contract
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 50% of the Allowable Range of
Contract Cost (ARCC) of their registration based on the guidelines
prescribed by the PCAB.
Section 23.5.2.5, IRR

during…. Section 23.1(a)(v), IRR
Bid Technical

Technical Documents
v. In the case of procurement of infrastructure projects, a valid Philippine

Contractors Accreditation Board (PCAB) license and registration for
the type and cost of the contract to be bid.

during…. Section 23.1(a)(vi), IRR
Bid Technical
Financial Documents
vi. Audited financial statements, showing, among others, the prospective
bidder’s total and current assets and liabilities, stamped “received” by
BIR or its duly accredited and authorized institutions, for the preceding
calendar year which should not be earlier than two (2) years from the
date of bid submission.

during…. (Section 23.1(a)(vii), IRR
Bid Technical

(Value of all ongoing
NFCC = (CA - CL)K - contracts)
Financial Documents
vii. Prospective bidder’s computation of its Net Financial Contracting

Capacity (NFCC)

during…. Section 23.1(b), IRR
Bid Technical
b) Class “B” Document
Valid Joint Venture Agreement (JVA), in case the joint venture is already
in existence (and for procurement of infrastructure projects.)
For procurement of Goods, in the absence of a JVA, duly notarized

statements from all the potential JV partners stating that they will enter
into and abide by the provisions of the JVA in the instance the bid is
successful.

Section 23.2, IRR
during….
Bid Technical
Envelope
i. Eligibility Requirements (under
In the case of foreign bidders…
Class “A” docs may be substituted by the appropriate equivalent docs, if any,
issued by the country of the foreign bidder concerned.
If the docs are in foreign language other than English, it must be accompanied
by English translation by the relevant foreign government agency, the foreign
gov’t agency authorized to translate documents, or a registered translator in
the foreign bidder’s country; and shall be authenticated by the appropriate
Philippine foreign service establishment/post or equivalent office.

Section 23.4, IRR
during….
Bid Technical For Procurement of Goods and Infra:

Eligibility requirements submitted electronically thru the PhilGEPS…
PhilGEPS registry system shall contain the foregoing Class “A” documents, which
should be maintained current and updated by the bidder at least once a year;
A bidder who maintains a current and updated file of his Class “A” documents
may submit to the procuring entity, in lieu of said documents, the Certificate of
Registration and Membership issued by the PhilGEPS.

during….
Bid Section 25.2(a)(ii), IRR
Opening Technical
Envelope
the first envelope,
which contains the
following technical information/
documents is opened first:
ii. Bid Security in the prescribed
form, amount, and validity period

during….
“The Procuring Entity shall indicate in the Bidding
Bid Documents the acceptable forms of bid security that
bidders may opt to use, which shall include the Bid
Opening Technical
Envelope
Securing Declaration provided in Section 27.5 of
check Bid Security this IRR and at least one (1) other form, the
for compliance as amount of which shall be equal to a percentage of the
to the required…. ABC, in accordance with the following schedule…”
FORM and AMOUNT Section 27.2, IRR

during….
Bid
Opening Technical
Envelope
Section 25.2(a)(iii), IRR
the first envelope,

which contains the

iii. Technical specifications, which may include production/
delivery schedule, manpower requirements, and/or after
sales service/parts, if applicable

during….
Bid
Opening Technical
Envelope
Section 25.2(a)(iv), IRR
the first envelope,

which contains the
iv. Sworn statement by the prospective bidder or its
duly authorized representative in the form
prescribed by the GPPB

during….
Bid
Opening Technical
Envelope
Section 25.2(b)(iii), IRR
the first envelope,

which contains the
(Same requirement with procurement
of Goods for Items i, ii, and iv)
For Procurement of Infra:
iii. Project Requirements, which shall include Organizational
Chart, List of contractor’s personnel to be assigned to the
project, List of contractor’s equipment units owned, leased
and/or under purchase agreement

immediately after determining
compliance of the 1st envelope
during…. Section 25.3 and
Financial
Bid Envelope
Section 30.2, IRR
Opening
the BAC shall open the 2nd envelope of each
remaining eligible bidder rated passed, which
shall contain the following information/documents:
…Financial Bid Form, which includes bid prices, and the BOQ,
and applicable Price Schedules;
…If the bidder claims preference as a Domestic Bidder/
Domestic Entity, a certification from the SEC, DTI or CDA.

during….
Section 31.1, IRR
Bid Financial
Envelope
Opening
of financial proposal
the
ABC shall be the upper limit or
ceiling for acceptable bid prices.

Competitive Bidding Procedure - Procurement of Goods & Infra

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Competitive Bidding Procedure - Procurement of Goods & Infra

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Competitive Bidding Procedure -

Procurement of Goods & Infra

Refers to a method of procurement which is open to