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Alternative Methods of Procurement
Alternative Methods of Procurement
OF PROCUREMENT
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
I General Guidelines
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Procurement Standard
Justified by conditions
In highly To promote economy specified in the
exceptional cases and efficiency IRR of RA No. 9184
Procurement Standard
Mode of
Procurement
General Guidelines
- (NPM 020-2019)
General Guidelines
Reference to Brand Names
Reference to brand names shall not be allowed except for items or parts that are compatible
with the existing fleet or equipment of the same make and brand and will maintain the
performance, functionality and useful life of the equipment.
This rule shall also apply to the goods component of infrastructure projects and consulting
services.
Delegation of Authority
The conduct of the following may be delegated to End-user unit or any other appropriate
bureau, committee, or unit duly authorized by BAC through a Resolution approved by the HoPE:
Shopping Nego. Proc. Small Value Lease of Real Direct Purchase of POL
[Sec 52.1(a)(b)] Emergency Cases Procurement Property &Venue and Airline Tickets
General Guidelines
PhilGEPS Registration
Bidders are mandated to register with PhilGEPS, and provide PhilGEPS
Registration Number as a condition for award for the following modalities:
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Lease of Real Scientific, Scholarly or Artistic Highly
Property Work, Exclusive Technology Technical
&Venue and Media Services Consultants
General Guidelines
For alternative methods of procurement, the Procuring Entity may dispense with the advertisement in
the newspaper and posting requirement as prescribed in Section 21.2.1 of the IRR of R.A. 9184.
For the following alternative methods, however, the BAC, through its Secretariat, shall post the
procurement opportunity:
In all procurement activities, PEs shall ensure to get the most advantageous price
for the government
PEs shall ensure that the objectives & purpose of the contract do not constitute
unnecessary, excessive, extravagant or unconscionable expenditure
Alternative Method of
Performance Security Warranty Security
Procurement
No Yes
Repeat Order
Yes
Yes (in no case shall WS be required for
Two-Failed Biddings Consulting Services)
Performance and Warranty Securities
Alternative Method of
Performance Security Warranty Security
Procurement
Yes Yes
Take-Over of Contracts
For Infrastructure
Yes Projects,
Adjacent or Contiguous WS is required
Latest Updates on Performance Security
Performance Securing Declaration (PSD) in lieu of a performance security, subject to the following:
An unnotarized PSD may be accepted, subject to submission of a notarized PSD before payment,
unless the same is replaced with a performance security in the prescribed form;
The end-user may require the winning bidder to replace the submitted PSD with a performance
security in any of the prescribed forms under Section 39.2 of the 2016 revised IRR of RA No. 9184
upon lifting of the State of Calamity, or community quarantine or similar restrictions; and
CONDITIONS AND
PROCEDURES OF
ALTERNATIVE METHODS OF
PROCUREMENT
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Alternative Methods of Procurement
3
Repeat Order
2 4
Direct Contracting Shopping
1 5
Limited Source Bidding Negotiated Procurement
Limited Source Bidding
“Selective Bidding”
Highly specialized
Goods equipment/services
Direct invitation to
pre-selected
suppliers or
consultants Consulting Major plants
Services components
Limited Source Bidding
https://www.gppb.gov.ph/preselectedSuppliers.php
Limited Source Bidding
???
=
Who prepares the pre- It is the relevant government
selected list of agency expert in the procurement
suppliers/consultants? concerned. In the absence of
relevant government agency, the
PE through its BAC, with
assistance of its TWG, shall
prepare the preselected list.
Direct Contracting
“Single Source
Procurement” Items of proprietary
nature (i.e. patents, copyrights)
Does not require
elaborate bidding
Goods
documents Critical components
from a specific supplier
Offer may be
accepted
immediately or after
some negotiations. Items sold by exclusive
manufacturer
Direct Contracting
Procedural Guidelines
Preparation of Request Simplified
Market Study Award of Contract
for Quotation (RFQ) Negotiations
Background
Procurement from the previous winning bidder,
whenever there is a need to replenish goods
procured under a contract previously awarded
through Competitive Bidding.
Applicability
Goods
Repeat Order
Conditions
Original contract awarded through competitive bidding
???
=
Repeat order may be undertaken any time
within the 6-month period reckoned from
What stage in the contract effectivity date which should in
procurement process no case be later than 7 calendar days from
can repeat order be the issuance of the NTP & if such mode of
considered to be within procurement has been duly approved by
the reglementary the HoPE and the previous winning
period of 6 months? supplier has been notified before the lapse
of said period. (NPM 003-2010)
Shopping
Threshold Threshold
Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]
PhP200,000.00 Vs.
PhP1,000,000.00
for NGAs, GOCCs, GFIs, for NGAs, GOCCs, GFIs,
SUCs & Autonomous SUCs & Autonomous
Regional Government Regional Government
Shopping
Procedures Procedures
Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]
Two Failed
Biddings Goods Infrastructure Consulting
Projects Services
Background Conditions
Undertaken when there has been All prospective bidders are ineligible
failure of competitive bidding or All bids failed to comply with all of the bid
limited source bidding for the requirements, post-qualification, or there is no
second time successful negotiation; or
Emergency Cases
Goods Infrastructure Consulting
Projects Services
Conditions
Emergency Cases
Goods Infrastructure Consulting
Projects Services
Reminders
PE should consider appropriate timing or the proximity of time between the actual
procurement activity to be conducted and the emergency sought to be addressed.
When the reason or cause for the emergency has already been abated, adoption of
competitive bidding shall be considered.
When the ground is based on imminent danger to life during a state of calamity, there
must be a declaration by a competent authority of a state of calamity before any
procurement activity may be undertaken.
Negotiated Procurement – Emergency Cases
GPPB Resolution No. 03-2020
Latest Updates: Adoption of Efficient, Effective and Expedient Procurement
Procedures during a State of Public Health Emergency
Issued and approved on 09 March 2020 in view of the declaration of the State of Public
Health Emergency throughout the Philippines on even date relative to the recommendation
of the Department of Health due to the confirmed local transmission of novel coronavirus
disease (COVID-19).
Provided necessary updates on the procedure on Negotiated Procurement – Emergency Cases
under Section 53.2 of the 2016 revised IRR of RA No. 9184
Allows the inclusion of items urgently needed to address the current COVID-19 situation in the
list of Common-Use Supplies and Equipment (CSE) as requested by the Department of
Health to expedite the emergency purchase of said items, and to ensure its prompt
mobilization and delivery.
Negotiated Procurement – Emergency Cases
GPPB Resolution No. 03-2020
Latest Updates: Adoption of Efficient, Effective and Expedient Procurement
Procedures during a State of Public Health Emergency
New Provision
New Provision
Coverage
• The procurement projects that may be covered under this modality now
include the lease of Real Property and Venue to be used as follows:
✔ Quarantine centers;
✔ Evacuation sites;
✔ Medical relief and aid distribution locations; and
✔ Warehousing facilities or similar temporary disaster or emergency
response facility.
Negotiated Procurement – Emergency Procurement
Negotiated Procurement
Applicability
Emergency Cases
Goods Infrastructure Consulting
Projects Services
Procedural Guidelines
Take-Over of
Contracts Goods Infrastructure Consulting
Projects Services
Conditions
Conditions
Adjacent or
Contiguous In determining the SLCC, NFCC & PCAB license, the sum of the
value of remaining works for the existing contract and the ABC of
contiguous or adjacent work shall be considered;
Applicability
Same prices or lower unit prices as the original contract less
mobilization cost,
Infrastructure ABC of contiguous or adjacent work involved does not exceed the
Projects contract amount of ongoing project.
Goods
Conditions
Agency-To-Agency
Procedural Guidelines
The End-User
The End-User shall secure a The HoPE
shall justify to certificate The BAC shall shall enter into
the BAC that from the issue a a MOA with
the resort to relevant Resolution the Servicing
A-to-A is more officer of the recommending Agency upon
efficient and Servicing the use of A- approval of
economical to Agency that to-A to the the BAC
the the latter HoPE. recommendati
government. complies with on
the conditions.
Negotiated Procurement
Procedural Guidelines
👨👨👩👩 Background
Applicability
Conditions
Applicability Conditions
DND may directly negotiate with an entity of another
country with which Philippines has entered into a DCA
subject to the following conditions:
Goods Secretary of National Defense deemed it necessary
to protect the interest of the country
Expertise or capability required is not available locally
Consulting The procurement requirements are included in the
Services AFP Modernization Program previously approved by
the President of the Philippines
Negotiated Procurement
GPPB Resolution No. 23-2018
Defense Inventory- The Secretary of National Defense shall now be the final authority
Based Items to approve procurement of defense inventory-based items or
defense related consultancy services as the President has already
approved the AFP Modernization Program
Conditions
DND may directly negotiate with a supplier or manufacturer of defense
inventory-based items subject to the following conditions:
Secretary of National Defense deemed it necessary to protect the interest of
the country
Direct negotiation will address compatibility, interoperability and sustainability
Prospective bidder/s had fully and satisfactorily implemented a contract of the
same item with DND or any of its attached agencies
Prospective bidder/s shall provide performance security
Negotiated Procurement
Applicability
Small Value
Procurement
Goods Infrastructure Consulting
Projects Services
Background
Post in PhilGEPS,
Send RFQ/RFP to at PE’s website and
Prepare conspicuous place
RFQ/RFP least 3 suppliers
Receipt of 1 RFQ will suffice
for 3 cd
*Except for projects with ABC
50k and below
Conditions
The End-User shall prepare a Cost-Benefit Analysis indicating that leasing
privately-owned real property or venue is more efficient and economical
Technical Specifications shall be prepared taking into consideration the Rating
Factors under Appendix B.
Procedural Guidelines
BAC shall invite at least 3 prospective lessors/venues within the vicinity of the
selected location to submit sealed price quotations for real-property & open
price quotations for venue.
Receipt of at least one (1) quotation is sufficient to proceed with the evaluation.
Negotiated Procurement
Lease of
Real Property & Venue
NGO Participation
Goods Infrastructure Consulting
Projects Services
Conditions
PE may opt to conducting public bidding or enter into a MOA with an NGO
References
Goods
Community Participation in Procurement Manual
Supplemental Guidelines for Community Participation in
Procurement Method for Foreign Assisted Projects
Infrastructure
Projects Supplemental Guidelines for Community-Managed
Procurement in Locally-Funded Projects
Negotiated Procurement
Community Participation
Opening &
Preparation of RFQ Posting Award of Contract
Evaluation
BAC, through its Secretariat, shall post the RFQ in the website of the PE (if
2 any), the premises of the PE, & in at least 3 conspicuous places where the
project will be implemented for a period of at least 3 calendar days
Should less than 3 quotations is obtained, the BAC shall continue the
3 procurement process. The opening of sealed quotations shall use a non-
discretionary pass or fail criterion
In case of approval, the HOPE shall issue the notice of award within a
4 period not exceeding 15 calendar days
Negotiated Procurement
Applicability
United Nations Agencies,
International Organizations or
International Financing Goods Infrastructure Consulting
Institutions Projects Services
Conditions
Procurement from UN Agencies, IOs or IFIs, of any of the following:
Small quantities of off-the-shelf goods, primarily in fields of education & health;
Direct Purchase must be made from any commercial airline at fairly reasonable
rates
Procurement of airline tickets must be intended for any official government
vehicles & equipment for immediate consumption
Payment may be made through cash advance, reimbursement or other
allowable payment modalities
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
DOCUMENTARY
REQUIREMENTS
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.
Documentary Requirements
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Highly Small Value Lease of Real
Technical Procurement Property &Venue
Consultants
Mayor’s Permit
Mayor’s Permit Professional Mayor’s Permit
License/CV Except for gov’t agencies as lessors
Professional (for Consulting Services)