R.A.

9184, also known as the Government Procurement Reform Act: Part 1 Bidding Procedure
for Goods and Infrastructure.

What is R.A 9184? It is “An Act Providing for the Modernization, Standardization, and
Regulation of the Procurement Activities of the Government and for other Purposes”.

In this report, we will tackle the bidding procedures, particularly for goods and infrastructure
projects. To be guided, what we are about to discuss is the procedures for competitive bidding,
the general mode through which procurements are done in accordance with the Act.

What is a Bid?
A Bid refers to a signed offer or proposal to undertake a contract submitted by a bidder in
response to, and in consonance with, the requirements stated in the bidding documents. “Bid” is
also equivalent to and may be used interchangeably with “Proposal” and “Tender”. A Bid has
two components, the Technical Proposal or the Technical Bid, and the Financial Proposal or the
Financial Bid.

What is Competitive Bidding?

Competitive bidding, also known as public bidding is a technique of procurement in

which any interested and qualified party can participate. Its purpose is to avoid or preclude
suspicion of favoritism and anomalies in the execution of public contracts.
Basically, competitive bidding starts with a pre-procurement conference and an
advertisement, followed by a pre-bid conference. After these preliminaries would be the
receipt and opening of bids of the eligible prospective bidders, then the evaluation of such
bids. Lastly, post-qualification would be conducted to finally award the contract.
 This whole process should not take more than three (3) months or a shorter period
decided by the Procuring Entity concerned. If the deadline for each action falls on a non-working
day (Saturday or Sunday), the deadline will be the following working day.

However, for purposes of expediency, economy, and efficiency, as determined by the

BAC, specific procurement activities may be held on a Saturday, Sunday, non-working day or
holiday: provided, that the BAC, Secretariat and TWG members shall be available on such date,
and the appropriate supplemental/bid bulletin is issued and posted pursuant to the posting
requirements embodied in section 22.5.3 of this IRR.

Preparation of Bidding Documents

In bidding, there are numerous bidding documents that must be prepared and issued by the
Procuring Entity because they would serve as the basis for Bids, furnishing all information
necessary for a prospective bidder to prepare a bid for the Goods or Infrastructure Projects.
Overall, these are the Bidding Documents and they shall follow the standard forms and manuals
prescribed by the Government Procurement Policy Board (GPPB):

1. Approved Budget for the Contract (ABC);

2. Instructions to Bidders, including criteria for eligibility, bid evaluation and
post-qualification, as well as the date, time and place of the pre-bid Conference (where
applicable), submission of bids and opening of bids;
3. Terms of Reference;
4. Eligibility Requirements;
5. Plans and Technical Specifications;
6. Form of Bid, Price Form, and List of Goods or Bill of Quantities;
7. Delivery Time or Completion Schedule;
8. Form and Amount of Bid Security;
9. Form and Amount of Performance Security and Warranty; and,
10. Form of Contract, and General and Special Conditions of Contract.

The Procuring Entity may require additional document requirements or specifications that would
be necessary in completing the information required for the bidders to prepare and submit their
respective bids.

Procedural Steps for the Procurement of Goods and Infrastructure Projects

STEP 1 PRE-PROCUREMENT CONFERENCE

What is a Pre-procurement Conference?
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, namely: technical specifications,
the Approved Budget for the Contract (ABC), the applicability and appropriateness of the
recommended method of procurement and the related milestones, the bidding documents, and
availability of the pertinent budget release for the project. It is mandatory for projects with ABC
above P2M for goods and P5M for infrastructure projects. In essence, this conference
determines the readiness of procurement.

When do you conduct a Pre-procurement Conference?

The pre-procurement conference must be conducted 7 calendar days prior to the advertisement
or issuance of the Invitation to Bid (IB) in order to give the technical staff sufficient time to
incorporate the necessary changes, amendments or revisions.

Who calls for a Pre-procurement Conference?

Each procuring entity shall establish a single Bids and Awards Committee (BAC) for its
procurement which shall have at least 5 members, but not more than 7. This is because the
BAC, through its Secretariat, is the one responsible for calling for a pre-procurement
conference. The Secretariat serves as the main support unit of the BAC so as to assist the
committee in the conduct of its functions. (Note only: FUNCTIONS OF BAC: advertise and/or
post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the
eligibility of prospective bidders, receive bids, conduct the evaluation of bids, undertake
post-qualification proceedings, recommend award of contracts to the Head of the Procuring
Entity or his duly authorized representative)

This conference is attended by:

1. The Bids and Awards Committee (BAC);
2. The BAC Secretariat/ Procuring Unit;
3. Representatives of the PMO or end-user unit/s, or implementing unit/s;
4. The members of the Technical Working Group (TWG/s) and consultants hired by the
Procuring Entity;
5. Officials who reviewed the above-enumerated documents prior to final approval, if any; and
6. Other officials concerned

STEP 2 ADVERTISE AND POST AN INVITATION TO BID

What is the Invitation to Bid (IB)?

The Invitation to Bid signals the start of the bidding process as it serves as the notice to the
public and all interested parties of the procurement and bidding opportunities of the Procuring
Entity. The BAC is responsible for ensuring that it is advertised and posted in accordance with
law.

Why do you post an Invitation to Bid?

It ensures openness and as wide a distribution as feasible in order to enhance the number of
prospective bidders and intensify competition for a procurement activity or project.

What does an Invitation to Bid contain?

All in all, the invitation should provide information that enables potential bidders to decide
whether to participate. As such, it should also indicate any important bid evaluation criteria or
qualification requirement.

The submission of bids indicated in the IB should be submitted no later than 45 calendar days
from the last day of posting.
How to advertise the IB?
It must be published:
1. At least once in 1 newspaper of general nationwide circulation that has been regularly
published for at least 2 years before the advertisement date BUT NOT IF the project has
an ABC of P2M and below for goods and P5M and below for infrastructure projects; and
2. Continuously for 7 calendar days in PhilGEPS (Philippine Government Electronic
Procurement System), in the website of the procuring entity if any, in the website
prescribed by the foreign government or international funding institution, and at any
conspicuous place in the premises of the procuring entity.

STEP 3 CALL A PRE-BID CONFERENCE AND, IF NECESSARY, ISSUE

SUPPLEMENTAL/BID BULLETINS

What is a Pre-bid Conference?

The pre-bid conference is the initial forum where the Procuring Entity’s representatives and the
prospective bidders discuss the different aspects of the procurement at hand. In other words, it
is where the ground rules that will govern the procurement are discussed. Thus, the participants
discuss the technical and financial components of the contract to be bid.

This is also an opportunity for the prospective bidders to request for clarifications about the
bidding documents. However, any statement made at the pre-bid conference would not modify
the terms of the bidding documents UNLESS such statement is specifically identified in writing
as an amendment of the documents and issued as a supplemental/bid bulletin.

Who must attend the Pre-bid Conference?

It is attended by:
1. The BAC or the Bids and Awards Committee
2. The BAC Secretariat/Procurement Unit;
3. The TWG or Technical Working Group members and consultants, if any;
4. The procuring unit/end-user or implementing unit;
5. The prospective bidders; and
6. The Observers.

This conference is mandatory for projects with an Approved Budget for the Contract of P1M and
above, and only discretionary for those with P1M and less. As for the prospective bidders, their
attendance shall not be mandatory.
When do you conduct a Pre-bid Conference?
It shall be held at least 12 calendar days before the deadline for the submission of bids. In case
a longer period is necessary for the preparation of bids, it could be held at least 30 calendar
days prior to such submission.

What happens if there is a need for clarification or interpretation on the Bidding

Documents after the Pre-bid Conference had been held?

Requests for clarification(s) on any part of the bidding documents or for an interpretation may be
made by prospective bidders provided that these are in writing and are submitted to the BAC at
least ten (10) calendar days before the deadline for the submission and receipt of bids. In this
case, the BAC shall issue its response by issuing a supplemental/bid bulletin, to be made
available to all those who have properly secured the bidding documents at least.

STEP 4 RECEIPT AND OPENING OF BIDS

an eligibility check
is a procedure to determine if a prospective bidder is eligible to participate in the bidding at
hand. In determining a prospective bidder’s eligibility, the BAC shall use non-discretionary
“pass/fail” criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions
to Bidders

Bids shall be submitted to the Bids and Awards Committee (BAC) on the date, time, and place
specified in the Invitation to Bid (IB), otherwise, they will not be accepted. The bids are
submitted in two sealed envelopes:

1st Envelope: Eligibility Requirements and Technical Component

The first envelope contains the eligibility requirements and technical components. The BAC or
its duly designated organic office (under special circumstances) shall determine the eligibility of
prospective bidders based on their compliance with the eligibility requirements within the period
set forth in the Invitation to Bid as this shall provide for fair and equal access to all prospective
bidders. Then, the documents submitted in satisfaction of the eligibility requirements shall be
made under oath by the prospective bidder or by his duly authorized representative to certify to
the correctness of the statements made and the completeness and authenticity of the
documents submitted. A prospective bidder may be allowed to submit his eligibility requirements
electronically but he shall still later on certify under oath the same. A statement of the
prospective bidder of all its ongoing and completed government and private contracts within the
period specified in the IAEB, including contracts awarded but not yet started, if any.

The technical components to be included in the bid are:

1. Bid security
2. Technical specifications (Goods) / Project requirements (Infrastructure)
3. Omnibus sworn statement
2nd Envelope: Financial Component
Only bids that have been determined to contain all the bid requirements of the technical
component shall be considered for opening and evaluation of their financial component.

This envelope contains:

1. Financial bid form - includes bill prices, bill of quantities, applicable price schedules
2. For Goods: Certification from DTI, SEC, or CDA if claiming preference as Domestic
Bidder or Domestic Entity
3. Other documents required in the bidding documents

Can a bidder withdraw its bid?

A bidder may withdraw its bid before the bid deadline by submitting a Letter of Withdrawal.
However, the act of routinely withdrawing from bidding or sending a letter of non-participation at
least three (3) times within a year is a ground for the position of administrative fines EXCEPT
when done for a good reason.

If the bidder withdraws its bid beyond the deadline for the submission of bids, he will forfeit his
bid security and the imposition of any applicable administrative, civil and/or criminal sanction
prescribed in R.A. 9184 and its 2016 IRR.

What happens if a bidder fails to submit its eligibility envelope and bid on the date, time
and place indicated in the Invitation to Apply for Eligibility and to Bid?
Any eligibility envelope, technical bid or financial bid submitted after the deadline for submission
and receipt of bids prescribed by the Procuring Entity shall be declared “Late” and shall not be
accepted by the BAC.

STEP 5 EVALUATE THE BIDS

What is the purpose of Bid Evaluation?

After the BAC evaluates the financial component of the bids, those that passed the preliminary
examination shall be ranked from lowest to highest in terms of their corresponding calculated
prices. This is done in order to determine the bid with the lowest price which shall then be
identified as the Lowest Calculated Bid (LCB). This is done by:
1. Establishing the correct calculated prices of the bids, through a detailed evaluation of the
financial component of the bids; and
2. Ranking of the total bid prices as calculated from the lowest to the highest.

When should the bids be evaluated?

The entire evaluation must be completed in not more than 7 calendar days from the deadline for
receipt of proposals. However, the BAC should exert effort to complete the Bid Evaluation even
before the lapse of the 7-day period to expedite the procurement process.
Who are the participants in the Bid Evaluation Process?
The following must participate in the bid evaluation process:
1. The BAC;
2. The TWG;
3. The BAC Secretariat/ Procurement Unit; and
4. The Observers.

STEP 6 POST-QUALIFY

What is Post-qualification?
Having identified the bidder with the Lowest Calculated Bid during the evaluation, he will now go
through post-qualification. This is the stage where he undergoes verification and validation so
as to determine whether he has passed all the requirements and conditions as specified in the
Bidding Documents.

If he passes all the criteria for post-qualification, his Bid shall be considered the “Lowest
Calculated Responsive Bid”. However, if a bidder fails to meet any of the requirements or
conditions, he shall be “post-disqualified” and the BAC shall conduct the post-qualification on
the bidder with the second Lowest Calculated Bid. If he is also post-disqualified, the same
procedure shall be repeated until the Lowest Calculated Responsive Bid is finally determined.

What is the Timeline for the conduct of Post-qualification?

The post-qualification process must be conducted and completed in not more than 12 calendar
days from the determination of the LCB. However, in exceptional cases, such as in the
procurement of goods requiring elaborate testing, the Head of the Procuring Entity (HoPE) may
extend the post-qualification period, but the aggregate period should not exceed 45 calendar
days in any case.

Who are involved in the conduct of Post-qualification?

The following Parties are involved in the conduct of post-qualification:
1. The BAC;
2. The TWG;
3. The BAC Secretariat / Procurement Unit; and
4. The eligible supplier/manufacturer, ranked starting from bidder with the LCB.

Failure of Bidding
There may be times when bidding fails. This is when:
1. No bids were received
2. None of the bids were eligible
3. All bids failed to post-qualify
4. Someone was post-qualified but refused to accept the award without justifiable cause
In such instances, the contract shall be re-advertised and re-bid wherein the same process and
new periods according to the same rules will be followed by the BAC. Should this second
bidding also fail, the BAC may resort to negotiated procurement.

What happens if the bidder with the LCB fails Post-qualification?

If the bidder with the LCB fails to pass post qualification, the BAC shall immediately notify the
said bidder of its post-disqualification and the grounds for it in writing . The post-disqualified
bidder shall have three (3) calendar days from receipt of the said notification to request from the
BAC a reconsideration of its decision if he wishes. With that, the BAC shall evaluate the request
for reconsideration using the same non-discretionary criteria, and shall issue its final
determination of the said request within seven (7) calendar days from the receipt of the request.

What happens if all bidders fail Post-qualification?

I have mentioned a while back that if the bidder with the LCB is post-disqualified, the bidder with
the 2nd LCB will undergo the post-qualification and this process will repeat until the LCRB is
determined. However, if no bidder passes post-qualification, this is another instance of a failure
of bidding. When this happens, the BAC shall issue a Resolution to declare the failure of
bidding. The BAC then conducts a mandatory review and evaluation of the terms, conditions,
and specifications in the bidding documents, including cost estimates. Based on its findings, the
BAC will revise the terms, conditions, and specifications. If necessary, adjust the ABC, subject
to the required approvals, and conduct a re-bidding with re-advertisement and/or posting. All
bidders who have initially responded to the IB and have been declared eligible in the previous
biddings will be allowed to submit new bids. The BAC must observe the same process and set
the new periods according to the same rules followed during the previous bidding(s). 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 the second failure of
bidding occur, the Procuring Entity may resort to Negotiated Procurement in accordance with
Section 53.1 of the 2016 IRR.

STEP 7 AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

What is the rule on Contract Award?

The contract shall be awarded to the bidder with the LOWEST CALCULATED RESPONSIVE
BID at its submitted bid price or its calculated bid price, whichever is lower.

Notice and Execution of Award

The head of the Procuring Entity shall approve or disapprove the recommendation of the award
within 15 calendar days from the determination and declaration of the LCB. In case of approval,
the Head or his duly authorized representative shall immediately issue the Notice of Award. It
may be personally delivered, sent by registered mail, sent electronically to the Procuring Entity,
or both. In case the Notice of Award is not received personally, its receipt must be confirmed in
writing within 2 days by the successful bidder himself.
Thereafter, within 10 calendar days from receipt of the Notice of Award, the winning bidder shall
formally enter into contract with the Procuring Entity. When further approval of higher authority is
required, the approving authority for the contract shall be given a maximum of 20 calendar days
to approve or disapprove it. In the case of government-owned and/or -controlled corporations,
the concerned board shall take action on the said recommendation within 30 calendar days. If
no action is taken, the contract concerned shall be deemed approved.

The Procuring Entity shall also issue the Notice to Proceed to the winning bidder not later than 7
calendar days from the date of approval of the contract by the appropriate authority. All notices
called for by the terms of the contract shall be effective only at the time of receipt by the
contractor.

What is the maximum period of time within which a contract can be awarded?
Contract award must be made within 80 calendar days from the date of bid opening but not to
exceed the bid validity period as specified in the bidding documents. If the award cannot be
made within the said period, the bid validity period should be extended.

What happens if the bidder being considered does not accept the Award?
If the bidder being considered does not accept the award within the bid validity period, the BAC
will forfeit his bid security and begin the blacklisting process in accordance with the Uniform
Guidelines for Blacklisting.

The second-lowest calculated bidder is then put through the post-qualification process, starting
and finishing it. The said bidder will be given the contract if they are determined to be qualified.
Up until the Lowest Calculated Bid (LCB) is identified, this process is repeated. If every eligible
bidder fails post-qualification, the BAC must finally deem the auction unsuccessful.

Step 8 Have the Contract Signed and Approved and Issue the Notice to Proceed

When must the winning bidder and the Procuring Entity enter into a contract?
After the winning bidder has delivered the performance security and all other required
documents within the time frame stipulated in the IRR-A, the Procuring Entity and the winning
bidder must immediately engage into a contract. The Notice of Award must be received by the
successful bidder within ten (10) calendar days of the signing of the contract by the parties.
Section 37.3 of the IRR-A. The contract may be signed by the Chief Budget Officer or the Chief
Accountant as a supporting witness.

Who are the Parties involved in Contract Signing and Approval and Issuance
of the NTP?

1. The BAC Secretariat/Procurement Unit/Office;

2. The Head of the Procuring Entity;
3. The winning bidder; and
4. End-user;

What documents form part of the contract?

The contract shall include the following:
1. The Contract Agreement;
2. Conditions of the contract (General and Specific);
3. Technical Specifications of Goods or Scope of Work for services;
4. IAEB;
5. Bidding documents;
6. Addenda and/or Supplemental/Bid Bulletins, if any;
7. Bid form including all the documents/statements contained in the winning bidder’s two bidding
envelopes, as annexes;
8. Eligibility requirements, documents and/or statements;
9. Performance Security;
10. Credit Line issued by a licensed bank in accordance with the provisions of the IRR-A, if
applicable;
11. Notice of Award of Contract and winning bidder’s “Conforme” thereto; and
12. Other contract documents that may be required by existing laws and/or the Procuring Entity
concerned.

Executive Order 423 The guidelines for the evaluation and approval of government contracts
were set down in 2005. Basically, E.O. According to section 423, the Head of the Procuring
Entity shall have full authority to give final approval and/or enter into all government contracts of
his respective government agency, awarded through public bidding, with the exception of those
required by law to be acted upon and/or approved by the President. This full ability to grant final
approval and/or participate into government contracts awarded through public bidding may also
be delegated in writing by the Head of a Procuring Entity, subject to any restrictions that may
impose.

What happens if the bidder with the LCRB or SCRB refuses or is unable, through its own
fault, to post the performance security and sign the contract within the prescribed
period?
If the bidder with the LCRB or SCRB (as defined in Step 4, Receive and Open Eligibility
Envelopes and Bids) refuses to, or is unable, through its own fault, to post the performance
security and sign the contract within the prescribed period:
1. Its bid security is forfeited;
2. It is disqualified from further participating in the bidding at hand;
3. Upon conviction, the relevant officers or individuals will suffer the penalty of imprisonment of
not less than six (6) and one (1) day and not more than fifteen (15) years; and
4. Upon determination of administrative liability, it will suffer the administrative penalties of
suspension for one (1) year from participation in government procurement for the first offense,
and suspension for two (2) years for the second offense. This is without prejudice to the
blacklisting proceedings undertaken in accordance with the Uniform Guidelines for Blacklisting
(GPPB Resolution 09-2004).