ae REBT Reviewer Chapter 23 GOVERNMENT PROCUREMENT Law EN, G INCIPLES, SCOPE AND APPLICATION DECLARATION OF PoLicy isthe declared policy of the State to ENERAL PRI Promote the ideals of good governance in all_its branches, departments, agencies, subdivisions, and instrumentalities, including government-owned andjor controlled rporations and local government units. GOVERNING PRINCIPLES All procurement of the national government, its departments, bureaus, offices and agencies, including state universities and colleges, government - owned and/or-controlled corporations, government financial institutions and ‘val government units, shall, in all cases, be governed by these principles: Transparency in the procurement process and in the implementation of Procurement contracts. Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding, Streamlined procurement process that will uniformly apply to all emmient procurement. The procurement process shalt simple and Scanned with CamScannernee : the cas Government Procurement Lavy | refers refert made adaptable o advances in modern technology in order to ensure an basis effective and efficient meth ; . ' 4 Soe of ‘ ccountablity where both the public officials directly or aoe indirectly invlved in the procurement Process 2s ae is te | ines implementation of procurement contracts an rivate pa i ay 9 el ‘are, when warranted by circumstances, eer investigated and held liable for their actions relative thereto. fe 5. Public monitoring of the procurement process and the implementation Wee of awarded contracts with the end in view of guaranteeing that these __-| cons contracts are awarded pursuant to the provisions of this Act and its : | refe implementing rules and regulations, and that all these contracts are \ par performed strictly according to specifications. | of \ cor SCOPE AND APPLICATION | pic This act shall apply to the: sp 1. Procurement of Infrastructure Projects de 2. Goods and Consulting Services —* Regardless of source of funds, whether local of foreign, by all branches and ty instrumentalities of government, its departments, offices and agencies, r including government-owned and/or-controlled corporations and local e government units, subject to the provisions of Commonwealth Act No. 138. t Any treaty or international or executive agreement affecting the subject \ matter of this Act to which the Philippine government is signatory shall be observed. DEFINITION OF TERMS Approved Budget | refers to the budget for the contract duly approved by | for the Contract | the Head of the Procuring Entity, as provided for in the | (ABC) General Appropriations Act and/or continuing | appropriations, in the National Government Agencies; the Corporate Budget for the contract approved by the | governing Boards, pursuant to E.O.No.518, series of | 1979, in the case of Government Financial Institutions | ____| and State Universities and Colleges; and the Budget for | 821 —. Scanned with CamScannerREBT Reviewer Sanggunian, in Sand Awards Commitice 'nts issued by the P; pac_—_—§ refer to docume ments basis for Bids, f ‘the Procuring Entity as the pewn Prospective piace’ *ins all information neccesary for Infrastructure Pret? P®PAre a bid for the Coods, rovided, _** 8Pd Consulting Services to be | a refers to signed of fer or proposal submitied b ya supplier, manufacturer, distributor, contractor or _— consultant in Tesponse to the Bidding Documents. Gonpttoe | refers 10 a method of paren Documents._| siding Participation by any inter ses: advertisement, pre-bid reening of bids, evaluations of conference, eligibility sc bids, post - qualification, and award of contract, the Specific requirements and mechanics of which shall be . defined in the IRR to be promulgated under this Act. ete ‘Consulting tefer to services for Infrastructure Projects and other 5 eit | services types of projects or activities of the Government 7 dg requiring adequate external technical and professional ul experts that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (1) advisory and review services; (ii) pre investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi) other technical services or special studies. ,C-EPS refers to the Government Electronic Procurement System Goods refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of the public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal | property of any kind, including non - Personal or | contractual services such as the repair and maintenance i wellas trucking, haulin; | of equipment and furniture, as wellas trucking, hauling, | j 822 Scanned with CamScannerae = f wot Government Procurem t Law janitorial, security, and related or analogous services, ag well as procurement of materials and supplies provided by the procuring entity or such services. GPPB refers to the Government Procurement Policy Board Head Procuring Entity of the | refers to: The head of the agency or his duly authorized official, for national government agencies; The governing board or its duly authorized official, for government-owned _and/or-controlled corporations; or The local chief executive, for local government units, Provided, That in a department, office or agency where the procurement is decentralized, the Head of each decentralized unit shall be considered as the Head of the Procuring Entity subject to the limitations and authority delegated by the head of the department, office or agency. Infrastructure Projects include the construction, improvement, rehabilitation, and bridges, railways, airports, _ seaports, communication faci9lities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore Protection, energy/power and electrification facilities, national buildings, school buildings and other related | construction projects of the government. demolition, repair, restoration or maintenance of roads | IRR refer to the implementing rules and regulations to be | promulgated in accordance with this Act. Portal refers to a website that aggregates a wide variety of content for the purpose of attracting a large number of users. Procurement ——-—__| Pr tefers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real estate. With respect to real Property, its procurement shall be governed by the isior of Republic Act No.8974, entitled "An Act to Public Act No.8974, entitled "An Act to | | ARATH spb gn Go" Fading DOC naard fOr “ments shalll “approved | instruction and post-q pid Confer bids; Terms of F Eligibility Plans and Form of B Delivery 7 Form and Form and Form of ( “uring | “teations g ets to Prey Scanned with CamScannerSi sh ation fa he ne Infrastructure t Jaws, rules Poses” and i | laws, rules andre and other applicable ang Eig | ween toe talons applicable a B i 3 i i z 3 ] * government financial — Ge local government units peaung Goods, Hing Services and Infrastructure Projects. PREPARATION OF BIDDING DOCUMENTS AND CONTENTS OF BIDDING Doct The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals Prescribed by the Gl Documents shall include the following: ee i. Approved Budget for the Contract; ii, 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; iii, Terms of Reference; iv. Eligibility Requirements; v. Plans and Technical Specifications; vi. Form of Bid, Price Form, and List of Goods or Bill of Quantities; vii, Delivery Time or Completion Schedule; sili, Form and Amount of Bid Security; ix. Form and Amount of Performance Security and Warranty; and, x. Form of Contract, and General and special Conditions of Contract. ‘iv Procuring Entity may require additional document requiremsols or osihvations necessary to complet the information requited fr " ‘ders to prepare and submit theit respective bids. R24 Scanned with CamScanner% QC Sa Reference to Brand Names: Specifications for the Procurement of Goods shall be based on relevant characteristics and/or performance requirements Reference to brand names shall not be allowed. Access to Information: In all stages of the preparation of the Bidding Documents, the Procuring entity shall ensure equal access to information Prior to their official release, no aspect of the Bidding Documents shall be divulged or released on any prospective bidder or having direct or indirect interest in the project to be procured. INVITATION TO BID PRE-PROCUREMENT CONFERENCE ference: Atle Prior to the issuance of the Invitation to Bid, the BAC is mandated to hold a 7 fare Pre-procurement conference on each and every procurement, except those." pre bid contracts below a certain level or amount specified in the IRR, in which case, 5. \( sof any PrOspec 4 the holding of the same is optional. : d conferenc The pre-procurement conference shall assess the readiness of the : Procurement in terms of confirming the certification of availability of ©!" “° eceipt ¢ funds, as well as reviewing all relevant documents and the draft Invitation =‘ bids, wt to Bid, as well as consultants hired by the agency concerned and the ee representative of the end -user. ECEIPT AND DVERTISING AND CONTENTS OF THE INVITATION TO BID In line with the principle of transparency and competitiveness, all Invitations to Bid contracts under Sees bidding shall be advertised by the “CIBILITY REQU Procuring Entity in such manner and for such length of time as may be ‘0 INFRASTRU necessary under the circumstances, in order to ensure the widest Possible = “"stances_ speci dissemination thereof, such as, but not limited to, posting in the Procuring ine the eligib Entity’s premises, in newspapers of general circulation, the G-EPS and the nfrastructure website of the Procuring Entity, if available. The details and mechanics of >it requirem implementation shall be provided in the IRR to be promulgated under this . Act Contents: The Invitation to Bid shall contain, among others: ® bret description of the subject matter of the Procurement: ws Scanned with CamScanner“ge RFBT Reviewer Ageneral statement o te eligibility check, thee Tera to, of the Procurement 9, Ot listing of poe PY the Proc of ring entity for evaluation of Bids, and pose lting Sere eee bidders in the case The datetime and place or ttlification, "© amination and of the eligibility re, submission and recei, The Approved Budg, ec \e deadlines ‘quirement for the suby Pt Feat: the Presid submission and receipt ids, an onference if any, the 1 open et for the Contract toben of bids; id; Y of the Biddi Iding Doc ed and; ‘uments, The contract durations sured and; ‘nts, and the place i. Such other necessary j ion dee: Procurin; Gi. Sud informati ; deemed relevant by the ing pre-bid Conference: At least one pre-bj curement, unless otherwnae ei conderence shall be conducted for each ‘ the i of the BAC, a pre-bid conference may also be pa Subject to the approval request of any prospective bidder. upon the written. The Pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of the bids to allow prospective bidders to adequately prepare their bids, which shall be specified in the IRR. - RECEIPT AND OPENING OF BIDS ELIGIBILITY REQUIREMENTS FOR THE PROCUREMENT OF GOODS AND INFRASTRUCTURE PROJECTS: The BAC or, under special circumstances specified in IRR, its duly designated organic office shall determine the eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects, based on the bidders’ compliance with the igibility requirements within the period set forth in the Invitation to Bid. «eligibility requirements shall provide for fair and equal access to all prospective bidders. The documents submitted in satisfaction of the under oath by the prospective bidder certifying to the correctness of the ibility requirements shall be made shy his duly authorized representative Stemeats made and the completeness an tte ' R26 Scanned with CamScanner d authenticity of the documents i)| Government Procurement Lay, ELIGIBILITY REQUIREMENTS AND SHORT Henne FOR CONSULTING SERVICES: The Eligibility of prospective bidders for the Procurement of Consulting Services shall be determined by their compliance with the eligibility requirements prescribed for the competitive Bidding concemed, within the period stated in the Invitation to bid. The eligibility jAL OF E requirements shall provide for fair Td os pyri i + bidders. The prospective bidder shall certify under ec = : of the statements made, and the completeness and authenticity of the ie jorthe rect ii he documents submitted. anot piTY: ANE arantee th Syall enter | time and f oS and allowat A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said bidder shall later on certify under oath as to correctness of the statements made and the completeness and authenticity of the documents submitted. ecu st The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the short listing requirements prescribed for the Competitive Bidding concerned, within the period stated in the Invitation to Bid to determine the short list of bidders who shall be allowed to submit their 5 VALIDITY: Bid time indic respective bids. ; SUBMISSION AND RECEIPT OF BIDS A bid shall have two (2) components, namely: 2 OPENING: the 1. The technical components; and e specified in tl 2. The financial components alle made avail, ‘fee Subject to the following rules: — a The bids’ components should be in separate sealed envelopes, and which shall be submitted simultaneously, iDEVALUA The bids shall be received by the BAC on such date, time and place ——————— Specified in the invitation to bid. The deadline for the receipt of bids shall be fixed by the BAC, giving the Prospective bidders sufficient time to study and prepare their bids, “UMIN ARY E “all exami 4 The deadline shall also consider the urgency of the procurement “Sil” criteria involved. Bids submitted after the deadline shall not be accepted. 827 Scanned with CamScannerJe REBT Reviewer « GPPB may prescribe innovati apening of bids thro Ve Proce pA ee rough the G-Eps, ‘Mure for the submission, receipt WAL OF BIDS: A bi Y, RA OF BIDS: A bidder mat , through a lett letter, : his intenti pid oF exPFESS tention not oe s owtor the receipt of bide (eee iPate in the biddi withdraw his In 7 ‘Submit another Bid for the same oe eae ee ie ‘act either directly or indirect! ¥- gD eee ee ao be accompanied by a Bid security, which shall serve aS at, after receipt of the Noti ‘ - pilders shall enter into contract with ie Peaang! “teaty waitin te gipulated time and furnish the required performance security. The fate gmounts and allowable forms of the Bid security shall be prescribed in the RR. BID VALIDITY: Bids and Bid securities shall be valid for such reasonable riod of time indicated in the Bidding Documents. The duration for each undertaking shall take into account the time involved in the process of Bid evaluation and award of contract. HID OPENING: the BAC shall publicly open all bids at the time, date, and place specified in the bidding documents. The minutes of the bid opening vet] be made available to the public upon written request and payment of specified fee. BIDEVALUATION ______—— S: Prior to Bid evaluation, the nents of the bids using ed documents are present. PRELIMINARY EXAMINATION OF BID! BAC shall examine first the technical compo ne whether all requir pass/fail" criteria to determi 828 Scanned with CamScanner aedGovernment Procurement Law i the bid requirements of the ids that are determined to contain all the e ony ie at we seri © a financial component. BID PRICES: The ABC shall be the upper limit or ceiling exceed this ceiling shall be disqualified outright from further There shall be no lower limit to the amount of Bid prices that participating in the bidding. the award. BID FOR THE PROCUREMENT OF GOODS AND INFRASTRUCTURE ; PROJECTS: For the procurement of Goods and Infrastructure Projects, the it BAC shall evaluate the financial component of the bids. le The bids that passed the preliminary examination shall be ranked from 1 lowest to highest in terms of their corresponding calculated price shall be {09 referred to as the "Lowest Calculated Bid”. BID EVALUATION OF SHORT LISTED BIDDERS FOR CONSULTING SERVICES: For the Procurement of Consulting Services, the Bids of the short listed bidders shall be evaluated and ranked using numerical ratings in gecTIVEAND “qualification the case 0 » case of { accordance with the evaluation criteria stated in the Bidding Documents, !"*! which shall include factors such as, but not limited to: vether he has ] { 1. Experience Bidding, Doe } 2. Performance | 3. Quality or Personnel tebidder wit! i iy ae a xectiteria for F i . oy The “Low The Bids shall be ranked from highest to lowest in terms of their a the “Hig corresponding calculated ratings. The Bid with the highest calculated rating shall be the “Highest Rated Bid.” ee After approved by the Head of the Procuring Entity of the Highest Rated Bid, “tifa k the BAC shall invite the bidder concerned for negotiation and/or clarification ‘on the following item: “ebidi 1 Tinancial proposal submitted by the bidder 7 2 Lerms ot reference “eb s ldder y Se a0 'squalif Scanned with CamScanner——— | gcope of services 3: Methodology and work program 4 Personnel t0 be assigned to job 5 servicesfacilities/data to be provia a Procuring Entity concerned, and ;_ Provisions ofthe contract, hen negotiations with first-in-tank bi .d rank bidder idder fails, the financial proy ‘unt indicated a be opened for negotiations: ae er te smgotiations and the t tad cial envelope shall be made as the basis f ne total contract eae nedated in the envelope and the amount shall not exceed the amount Whenever necessary, the same process shall be repeated until the bid Jed to th bi POST-QUALIFICATION )BJECTIVE AND PROCESS OF POST-QUALIFICATION Post-qualification is the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents. Ifthe bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-qualification, his Bid shal be considered: i. The "Lowest Calcul: ive Bid,” in the case of Goods and Infrastructure or ii, the “Highest Rated Responsive Bid” in the case of Consulting Services. ve requirements or conditions, he II conduct the post-qualification However, if a bidder fails to meet any of the ist Rated Bid. stall be “postedisqualified” and the BAC shal cok 0 on the bidder with the second Lowest Calculate Bid or Highe rest Calculated Bid or Highest Rated Bid is cond Low' shall be repeated until the Lowest procedure Ihe bidder with the s oot disqualified, the same 830 Scanned with CamScannerGovernment Procurement Law Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined. Inall cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. FAILURE OF BIDDING There shall be a failure of bidding if 1. No bids are received; , . 2. Nobid qualifies as the Lowest Calculated Responsive Bid; or, 3. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable cause to accept the award of contract, as award: In ¢ sporized TEF *ader with the case may be. eral Under any of the above instances, the contract shall be re-advertised and re- bid. The BAC shall observe the same process and set the new periods nto the co’ 4 ten (10) according to the same rules followed during the first bidding. ing bidd After the second failed bidding, however, the BAC may resort to negotiated procurement, as provided below. ntity pews when furthe: INGLE CALCULA’ TED AND. IVE BID SUBMISSION ority for calendar days A single calculated/rated and responsive bid shall be considered for award if it falls under of the following circumstances: ne case OF 1. If after advertisement, only one prospective bidder submits a Letter of concerned bo Intent and/or applies for eligibility check, and meets the eligibility hirty (30) cal requirements or criteria, after which it submits a bid, which is found to be responsive to the bidding requirements; oo 2. Ifafter the advertisement, more than one prospective bidder applies for ae eligibility check, but only one bidder meets the eligibility requirements ng Diciwer or criteria, after which in submits a bid which is found to be responsive oval of the to the bidding requirements; or ns of 3. If after the eligibility check, more than one bidder meets the eligibility contract requirements, but only one bidder submits a bid, and its bid is found to be responsive to the bidding requirements. SRO) q OD OF A ‘ _ Proc {all instances, the Procuring Entity shall ensure that the ABC reflects the tract be ost advantageous prevailing price for the government. shal ‘ined py BAL Scanned with CamScannerAWARD, IMPLEMENT, ‘ATION of THE CONTRACT AND TERMINATION LS \ JoTICE AND EXECUTION OF AWARD iod not i within 2 Peri exceeding fift. = : eee en by ae Rees days from the 4 iv or Highest : e Lowest Calculated pe award, the Hoa ee Responsive Bid, and the recommendation e ‘e Procuring Entity or his duly authorized resentative shall approve or disapprove ep? disapprove the said recommendation. sotce of Award: In case of approval, the % , the Head of the P y to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. Entering into the contract: 1, Within ten (10) calendar days from receipt of the Notice of Award, the Winning, bidder shall formally enter into contract with the Procuring, Entity. 2 further approval of higher authority is required, the approving authority for the contracts shall be given a maximum of twenty (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 \ thirty (30) calendar days from receipt thereof tity shall issue the Notice to Proceed to the (7) calendar days from the date of All notices called for ime of receipt thereof Notice to Proceed: The Procuring, Ei jer not later than seven contract by the appropriate authonity tract shall be effective only at thet winning bidd approval of the by the terms of the con! by the contractor. ACTIVITIES f bids up to the award of horter period to be PERIOD OF ACTION ON PROC! REMENT he procurement process from the opening ©! nths, or 2 SI uw sha exceed thre tract shall not exceed entity concemed. The different procurement deemed by the procuridg, Rt nieve Scanned with CamScannerGovernment Procurement Law activities shall be completed within reasonable periods to be specified in the IRR. If no action on the contract is taken Py: the head ofthe procuring entity or by his duly authorized representative, © py the concerned board, in the case of vernment-owned and/or ‘vontrolled corporations, within the periods specified above, PERFORMANCE a tr tan ageing ok enceezest Cm Wen bidder shall, as a measure of guarantee for the faithful performance of an compliance with his obligations emer the contract prepared in accordance with the Bidding Documents, be i ta jn such form and amount as Bidding Documents. d specified in the FAILURE TO ENTER INTO CONTRACT AND Post SECURITY If, for justifiable causes, the bidder with the Lowest Calculated Responsive - é ge refuses or is otherwise unable to |g" of com Bid or Highest Rated Responsive Bid fails, enter into contract with the Procuring Entity, or if the bidder fails to post the ogres cof proc ds © thin the period stipulated in the Bidding | -#!"® PERFORMANCE required performance security wi Decuments, the BAC shall disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest costructure Pt aases, the Prot lure shall be repeated until an award is made. Rated Bid. This proced the contract shall be subjected to a new ak for each p However, if no award is possible, bidding. In the case of a failure to post the required performance security, the bid)" security shall be forfeited without prejudice to the imposition of sanctions | a prescribed under this Act. \ ne \ 1. Incor eto) =| contr. RESERVATION CLAUSE: The Head of the Agency reserves the righ reject any and all Bids, (2) declare a failure of bidding, or (3) not award the contract in the following situations: 1. If there is prima facie evidence of collusion between appropriate public i officers or employees of the Procuring Entity, or between the BAC and any of the bidders, or if the collusion is between or among the bidders themselves, or between a bidder and a third party, including any act a. T 1 833 | Scanned with CamScannerwehich restricts, suppresses ify competition; °F nullifies o, te IRR. TRACT IMPLEME, OO lines for the ee AND TERMINATION: The rules and rt the provisions of da mination of contract awarded p is Act shall be prescribed in the IRR. The rules vd guidelines shall include stand. as lard general and special conditions for LITTING OF GOVERNME! sm sae NT CONTRACTS: Splitting of Government a Splitting of Government Contracts means the division Ea & UP of government of the Philippine contracts into smaller quantities and amounts, or dividing contract implementation into utificial phases or sub-contracts for the purpose of evading or 2 Fequirement Jaw_an. particularly the necessity of competitive bidding and the requirements for the alternative methods of procurement. Infastructure Projects: for Infrastructure Projects to be implemented by phases, the Procuring Entity shall ensure that there is a clear delineation of work for each phase, which must be usable and structurally sound. GROUNDS FOR TERMINATION 1. Termination for Default i. In contracts for Goods: The following are ground for termination of contract for default: ; a. The Procuring Entity may terminate the contract when outside of force majeure, the Supplier fails to deliver or perform any or all ‘of the Goods within the period(s) specified in the contract, or y extension thereof granted by the Procuring Entity de by the Supplier prior to the delay, to at least ten percent (10%) of the within an pursuant to a request m and such failure amounts contract price t 844 Scanned with CamScannerGovernment Procurement Law sp . er b. The Procuring Entity may terminate the contract when, as a futiae majeure, the Supplier is unable to deliver or oe perform any or all of the Goods, amounting to at least ten percent bp. AS (10%) of the contract price, for a period of not less than sixty (60) or calendar days after receipt of the notice from the Procuring Entity fo stating that the circumstance of force majeure is deemed to have Cc ceased; or st ¢ The Procuring Entity shall terminate the contract when the hi Supplier fails to perform any other obligation under the Contract 7 c. ii, In contracts for Infrastructure Projects: The Procuring Entity shall a terminate a contract for default when any of the following conditions attend its implementation: inatio P a . qermin a. Due to the Contractor's fault and while the project is on-going it, Ty ig has incurred negative slippage of fifteen percent (15%) or more Coe ae Prot in accordance with Presidential Decree 1870; of the b. Due to the Contractor's fault and after the contract time has the Govern expired, it has incurred a negative slippage of ten percent (10%) make Proje or more in the completion of the work; or impractical ¢. The Contractor: event(s) OF 1) abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring Entity or fails to proceed Terminati expeditiously and without delay despite a written notice by ©" ig the Procuring Entity; con 2) does not actually have on the project site the minimum insolvent 2 essential equipment listed on the Bid necessary to prosecute In this e the Works in accordance with the approved work plan and Supplier/C equipment deployment schedule as required for the project; prejudice 3) does not execute the Works in accordance with the contract will ace: or persistently or flagrantly neglects to carry out its Supplier/¢ obligations under the contract; 4) neglects or refuses to remove materials or to performanew Termin, work that has been rejected as defective or unsuitable; or conn 5) sub-lets any part of the contract works without approval by rect the Procuring Entity. “pplier/ iil, In contracts for Consulting Services: the Procuring Entity shall \plemer terminate a contract for default when any of the following conditions ‘ontra, attend its implementation: "e Not fi Corn Dray RY Scanned with CamScannerREBT Reviewer a. Outside of force ce majeure, the erform the Out we Consultan Sane les within the period(s) granted by t or within any extension there ranted by the Procuring Entity purs Wy extension thereot a msultant prior to the da ea ta Feauest made by Asa result of fo: yi ae eter ofc majeure the Consultants unable to diver % for a period of ae of the Outputs and Deliverables + Consultant's receipt ay rit Sty (60) calendar days after the ‘ cea Garin "pt of the notice from the Procuring, Entity ahaa Circumstance of force majeure is deemed to The Consultant fail =o s to perform any other obligation under the e ‘Termination for Convenience: the Procuring Entity may terminate the . Contract, in whole or in part, at any time for its convenience. The Head _ of the Procuring Entity may terminate a contract for the convenience of the Government if he has determined the existence of conditions that make Project Implementation economically, financially or technically impractical and/or unnecessary, such as, but not limited to, fortuitous * event(s) or changes in law and national government policies. _ ] 3. ‘Termination for Insolvency: The Procuring Entity shall terminate the contract if the Supplier/Contractor/Consultant is declared bankrupt or insolvent as determined with finality by a court of competent jurisdiction. In this event, termination will be without compensation to the Supplier/Contractor/Consultant, provided that such termination will not prejudice or affect any right of action or remedy which has accrued or Per accrae thereafter to the Procuring Entity and/or the Supplier/Contractor/Consultant. & Yemutmatien far Cntacotel cee thn Fenonsing ly =? terminate the tis. determined prima facie that "the hhas engaged, before or during the unlawful deeds and behaviors relative Unlawful acts include, but contract in case Suppl ier/Contractor/Consultant plementation of the contract in to contract acquisition and implementation. are-not limited to, the following: : collusive and coercive practices; (orrupt. fraudulent, ; forged documents; por USI yup or UsiD® 3 | } i } Scanned with CamScanner sstcltnicdaateGovernment Procurement Law ¢. Using adulterated materials, means oF methods, or engaging in production contrary to rules ‘of science or the trade; and 4. Any other act analogous to the foregoing: 5, Termination by Contractor/Consultant : a. Incontracts for Infrastructure Projects: the Contractor may terminate its contract with the Procuring Entity if the works are completely stopped for a continuous period of at least sixty (60) calendar days through no fault of its own, due to any of the following reasons: i. Failure of the Procuring Entity to deliver, within a reasonable time, supplies, materials, right-of-way, or other items it is obligated to furnish under the terms of the contract; or ii, ‘The prosecution of the work is disrupted by the adverse peace and order situation, as certified by the Armed Forces of the Philippines Provincial Commander and approved by the Secretary of National Defense. b. Incontracts for Consulting Services: the Consultant may terminate its agreement with the Procuring Entity if the latter is in material breach of its obligations pursuant to the contract and has not remedied the same within sixty (60) calendar days following its receipt of the Consultant's notice specifying such breach. DISCLOSURE OF RELATIONS DISCLOSURE OF RELATIONS: In addition to the proposed contents of the Invitation to Bid as mentioned above, all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer i ion in not related to th Vf th ing Enti Failure to comply with the aforementioned provision shall be a ground for the aut ic_disqualification of the bid and shall therefore not be considered for opening and evaluation of financial component. sgdition pditi ited SOUT procurer services of soure Procure! advanta maintai the plar ECT C Sis othe Method “Ument * Proste “Cepte XtGy, Scanned with CamScannerjn? jtemative methods of Procurement; CY, Fesort to any of the following sMITED. SOURCE BIDDING his is otherwise known as SELECTIVE BIDDING 4 method of Procurement that involves di by the i ; es direct invitatis Pai itation to bid e procuring Entity from a set of pre-selected suppliers or congaliants with jnown experience and proven capabil i ae pability relative to the requirements of a Limited Source Bidding may be resorted to only in any of the following, i. Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited number of sources; or Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to maintain an optimum and uniform level of quality and performance of the plant as a whole. Direct CONTRACTING This is otherwise known as SINGLE SOURCE PROCUREMENT es not require elaborate Bidding .d to submit a price quotation ions of sale, which offer may A method of Procurement that do Documents because the supplier is simply asked ora pro-forma invoice together with the conditi ~~ accepted immediately oF after some negotiations. set Contracting, may be resorted [0 only in any of the following onditions 3 } Scanned with CamScannerGovernment Procurement Law which can be obtained only of Goods of propriety nature, ‘source, ie. when patents, prohibit others from manufacturing the same items; b. When the Procurement of critical components from a specific snanufacturer, supplier, or distributor is a condition precedent to hold a miatractor to guarantee its project performance, in accordance with the provisions his contract; ot, ‘Those sold by an exclusive deal sub-dealers selling at lower prices and for con be obtained at more advantageous terms to the government, a. Procurement from the propriety ler or manufacturer, which does not have which no suitable substitute REPEAT ORDER it is a method of Procurement that involves a direct Procurement of Goods from the previous winning bidder, whenever there is a need to replenish Goods procured under a contract previously awarded through Competitive Bidding. When provided for in the Annual Procurement Plan, Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from the previous winning bidder whenever there arises a need to replenish goods procured under a contract previously awarded through Competitive Bidding, subject to post-qualification process prescribed in the Bidding Documents and provided all the following conditions are present: a. The unit price must be equal to or lower than that provided in the original contract; b. The repeat order does not result in splitting of requisitions or purchase orders; c. Except in special circumstances defined in the IRR the repeat order shall be availed of only within six (6) months from the date of the Notice to Proceed arising from the original contract; and, d. The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of the original contract. SHOPPING Itis a method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off- Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification. 839, bade secretsandeopyrign, |? urement of ple in the D Classifice of LGUs 1 Class 24 Class i Scanned with CamScannerag REBT Reviewer sopping MAY BE resorted to und, when there is an wy 4 purchase, the amount i. For NGAs, Goc SF ANY of the followin, 8 instances: shall not exceeds a not exceed the followi ing im: . ing: ‘Ss, GFI; Government, 200,099 SUCS, and Autonomous Regional ii, For LGUs, i ii. ‘or 'S, in accordance with the following schedul ule DOF Maxim Casto = tum “Amount (in Philippine of LGUs i otic Province [City | Municipal st Class 200,000 | 200,000 me 2nd Class | 200,000” | ~a00.90 "| —ineeee 3rd Class 200,000 160,000 a 4th Class 160,000. 120,000 700,000 5th Class 120,000 100,000 100,000 6th Class 100,000 100,000 100,000 2. Procurement of ordinary or regular office supplies and equipment not available in the DBM-PS, in the amount not to exceed the following: i. For NGAs, GOCCs, GFls, SUCs, and Autonomous Regional Government, P1,000,000. ii, For LGUs, in accordance with the following schedule: DOF Maximum Amount (in Philippine Classification | Peso) of LGUs Province | City _ | Municipality 1 Class 7,000,000 | 1,000,000 | __ 200,000 [21 Class 7,000,000 | 1,000,000 | 200,000 34 Class 7,000,000 | 800,000 | 200,000 "4Clas ‘800,000 | 600,000__| 100,000 a ~ [400,000 ‘orClass | }_| 200,000, usand Pesos (P50,000) tn the case uf barangays, F ity Thow i & phrase “ordinary oF Fe gular office supplies” shal be understood to madities, oF mate and consumed in the day-to-day fies, com erials which are necessary in upphier, € offical businesse> setan a ead Scanned with CamScannerGovernment Procurement Law office supplies shall not include services such as ‘equipment and furniture, as well as trucking, ‘and related or analogous services. operations. However, repair and maintenance of hauling, janitorial, security, Es D ie It is a method of Procurement that may be resorted under the extraordinary gi" -¢5- nacre’ i ni provided for in Section 53 of this Act and other instances that ok shall be specified in the IRR, whereby the Procuring Entity directly negotiates ‘a contract with a technically, legally and financially capable supplier, contractor or consultant. Negotiated Procurement shall be allowed only in the following instances: a. In case of two (2) failed biddings; b. Incase of imminent danger to life or property during a state of calamity, or 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, or to restore vital public services, infrastructure facilities and other public utilities; c. Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where 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; Where the subject contract is adjacent or contiguous to an on-going infrastructure project, as defined in the IRR, subject to the following: i. The original contract is the result of a Competitive Bidding; ii. The subject contract to be negotiated has similar or related scopes of work; It is within the contracting capacity of the contractor; iv. The contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; v. The amount involved does not exceed the amount of the ongoing Project; and, vi. The contractor has no negative slippage. Provided, that negotiations for the procurement are commenced before the expiry of the original contract. Wherever applicable, the Principle shall also govern consultancy contract, where the S41 pti vere € z 3 & Due along awal Proc The cc the m can o1 Highly Te ‘to de denti Nary Scanned with CamScannerprot Reviewer 5 a i z 5 3 g 8 3 3 3 & u No 755 and Executive Order No 0755 359, _ gcentific, Scholarly or Artisti e ‘ : ces. Where Good Fe naatie Work, Exclusive Technology and Medi vi structure Projects and Consulting, Services canbe contracted t0 a particular : ee getermined by the HoPE, for any ee contractor or consultant and as requirement is for: .e following: series of 1989, i. 4. Work of art; commissi i isi specific artist skill (¢ ne work or services of an artist for a etc); -&, Singer, poet, writer, painter, sculptor, 2. Scientific, academic ae ic, scholarly work or research, or legal 3. Highly-specialized life-savis -saving medical equi fi by the Department of Health (DOH); eanipment a» ceed 4. Scientific, technical, economic, business, trade or legal journal, magazine, paper, subscription, or other exclusive statistical publications and references; or 5. Media documentation, advertisement, or announcement through television, radio, newspaper, internet, and other communication media. Due to the nature of the information to be disseminated, alongside principles of transparency, efficiency and economy, ‘ward to more than one (1) supplier may be made by the Procuring Entity. ii, The construction or installation of an infrastructure facility where the material, equipment, OF technology under a proprietary right can only be obtained from the same contractor. Consultants. In the case of individual consultants ; My a imarily is (i) highly technical or proprietary; OF (ii) primarily ae and confidence are the yhere trust determining, where . he consultant: Provided, for the hiring of 4 Highly Technical paed todo work that ntidential or policy ry consideration e442 Scanned with CamScannerhowever, That the term of the individual consultants shall, at the most, be on a six month basis, renewable at the option of the appointing HoPE, but in no case shall exceed the term of the latter. h. Defense Cooperation Agreement; Defense Inventory-Based Items-The DND may directly negotiate with an agency or instrumentality of another Government Procurement Lay noe “tio ste" i country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations when the procurement involves major defense equipment or materiel and/or defense-related consultancy services Small Value Procurement: Procurement of (a) goods not covered by Shopping under (b) infrastructure projects, and (c) consulting services, where the amount involved does not exceed the following threshold: 1. For NGAs, GOCCs, GFls, SUCs, and Autonomous Regional Government, P1,000,000. 2. For LGUs, in accordance with the following schedule: DOF Maximum Amount (in Philippine Classification | Peso) of LGUs Province | City | Municipality 1 Class 1,000,000 | 1,000,000 | 200,000 24 Class 1,000,000 | 1,000,000 | 200,000 3 Class 1,000,000 | 800,000 200,000 4°Class 800,000 _| 600,000 100,000 5t Class 600,000 | 400,000 100,000 6% Class 400,000 [200,000 100,000 In the case of barangays, Fifty Thousand Pesos (P 50,000) j. Lease of Real Property and Venue for official use k. NGO Participation: When an appropriation law or ordinance earmarks an amount to be specifically contracted out to Non-Governmental Organizations (NGOs), the Procuring Entity may enter into a Memorandum of Agreement with an NGO Community Participation: Where, in the interest of project sustainability or to achieve certain specific social objectives, it is desirable in selected Projects, or its components, to call for participation of local communities in the delivery of goods, including non-consulting services, and simple infrastructure projects, subject to the Community Participation Procurement Manual (CPPM) issued by the GPPB sda Scanned with CamScannerunited Nations Agencies, REBT Reviewer International Organizations or International g Procurement from specialized agencies of the United Nations, International Organizations or International Financing Institutions pirect Retail Purchase of Petroleum Fuel, Oil and Lubricant (POL) products and Airline Tickets financing Institutions - Scanned with CamScannerGovernment Procurement Law MULTIPLE CHOICE QUESTIONS 1. Who prescribes the standard forms and manuals pertaining to bidding documents? ‘a. Government Procurement Policy Board ’b. Bids and Awards Committee c. Procuring Entity d. Secretary of Budget and Management 2. Allof the following are information contained in the bidding documents, except: a. Delivery time or completion schedule b. Plans and technical specification cc. Reference to brand names 4. List of goods or bill of quantities 3. Who prepares the bidding documents? indicat a. Government Procurement Policy Board b. Bids and Awards Committee | ye bids 1 ¢ Procuring Entity ey d. Secretary of Budget and Management sa [ a 4. Prior to the issuance of the Invitation to Bid and for each and every». Highe procurement, the Bids and Awards Committee is mandated: « Medi a. To publish in a newspaper of general circulation the bidding Aver documents b. Tohold a pre-procurement conference Itis the. ¢. To submit the bidding documents to the Department of Budget and 3. of Management case of d. To draft the technical specifications of the intended government _ project. : oe nthe B 5. What are the two components of a bid? * Qu a. Operational and fiscal components D Pre b. Marketing and financial components & Po Re ¢. Operational and financial components 4 Technical and financial components Scanned with CamScanneroy REBT Reviewer Cana bidder modify his b 5 id? a. No. Once submitted, it 18 deem . a : "ed to be the complete submission of : a submission of N - — tains a Statement under i oath that the represent ¢ Yes, provided such is don vvemanne 7, Abid security: a. Serves as guarantee that the bi robbery, misappropri: i \ priati nature. anon b, Serves as guarantee finn sik te reco ha the winning bidders shall enter into contract . er entity within the stipulated time. \ Bee aren lat the Procuring Entity will not withdraw from \ p eecere id without indemnification to the winning bidder/s. ee borers that the winning bidders will receive what is lotice of Award in connection with their Bid Offer. . The bids that passed the preliminary examination shall be ranked from lowest to highest in terms of their corresponding calculated price. a. Lowest calculated bid b. Highest calculated bid Median calculated bid \ d. Average calculated bid It is the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents. a. Qualification » Prequalification ; © Post-qualification ‘ § Requalification KAD Scanned with CamScannerjewer POPPE CIcET” ene CIEE Government Procurement Law. jsion OF break: ler quan’ i : gmal 10. If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes entation into 9 all the criteria for post-qualification, in the case of consulting services, his le or cireumv Bid shall be considered as: % Ay the nece a, The Lowest Calculated Responsive Bid 5 iculaey ative me b. The Highest Calculated Responsive Bid Pipe alte gove ¢. The Lowest Rated Responsive Bid pivision of 8 4, The Highest Rated Responsive Bid > Guplicity of Bov & Gplitting of gove \tultiplicity of ‘The Head of the Procuring Entity or his duly authorized representative 11. shall approve or disapprove the recommendation of the award within how many days from the determination and declaration by the BAC of joment 1: Splitti the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid, ment 2: Hf, f and the recommendation of such award? te id Res} a. Five calculated Respes b. Ten js otherwise ur c Fifteen C shall un d. Twenty Calculated Bid or Only Stateme 12. What should be issued in case of approval of the Head of the Procuring Only Statem¢ Entity or his duly authorized representative? «Both statemé 3- Notice of Award Both stateme b. Bidding Documents c. Bid Acceptance . 4. Confirmation of Bid addition to th nove, all biddi 13. Within ten (10) calendar days from receipt of the Notice of Award, the i the bidder t winning bidder: related to the F a. Shall submit the complete bidding documents to the procuring entity a. By consany Shall formally enter into contract with the procuring entity >. By consan By consan Shall forward a formal price quotation to the procuring entity Shall commence negotiations as to the specifications and technical a. By consar descriptions of the project with the procuring entity 14. The procurement process from the opening of bids up to the award of contract shall not exceed: a. 1 month OWN expe b, 3months * Particular: ©. months ‘Biased t d. lyear b. Setectiy Outsou 847 Scanned with CamScanner16. 17. to smaller 7 ” quantities and MeNt of the amounts, or implementation into artificial Pha: Philippine contracts dividing contract evading or circu a venting. the ney sue sonia forthe purpose of irements of law 2 and its IRR, particularly the necessity f dL cthe ternatios iets wt a thods of e bidding and the aes requirements 4. Division of . Duplicity ee g Splitting of government content sessment nee cts statement 1: Splitting of Government atement 2: i it Contracts Calculated ee cus the ie wi he Lowe oy is otherwise unable to or Highest Rated Responsive Bid fails, refuses the BAC shall undertake ee eA erie te eee sae for the next-ranked Lowest a. Only Statement 1 is true. , b. Only Statement 2 is true. i. Both statements are true. d. Both statements are not true. Inaddition to the proposed contents of the Invitation to Bid as mentioned above, all bidding documents shall be accompanied by a swom affidavit of the bidder that he or she or any officer of their corporation in not related to the Head of the a By consanguinity b. By consanguinity or al By consanguinity or affini d. By consanguinity or affini ffinity up to the fourth civil degree ity up to the fifth civil degree ty up to the sixth civil degree tation to bid by the r consultants with rements of involves direct inv jected suppliers 01 relative to the requi Procurement that it set of pre-se! oven capability Itis a method of Procuring Entity from a known experience and Pr srticular contract. jiased bidding cajective bidding bidding, Ouro 848 Scanned with CamScanner“"~a a Government Procurement Law d. Prequalified bidding ding 19. It is a method of Procurement that does not require elaborate Bid, Documents because the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale, which offer may be accepted immediately or after some negotiations, a. Indirect contracting b. Prequalified bidding c. Quasibidding d. Single source procurement It is a method of Procurement whereby 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 qualification. a Shopping b. Repeat order c. Direct contracting d. Limited source bidding 20. Scanned with CamScannergeBT Reviewer ihe ANSWERS TO MULTIPLE CHOICE QUESTIONS PPAR Ae ee FOF PnNaBRaVsry>arwnrwavsnn>» Scanned with CamScanner