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.
 I General Guidelines

II Conditions & Procedures of Alternative Methods of

Procurement

III Documentary Requirements

 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

Procuring Entities (PEs) shall adopt

Competitive Bidding as the general mode of procurement

Alternative Methods shall be resorted

ONLY:

Justified by conditions
In highly To promote economy specified in the
exceptional cases and efficiency IRR of RA No. 9184
Procurement Standard

No procurement shall be undertaken unless it is in

accordance with the approved
Annual Procurement Plan (APP) of the PE

The method of procurement to be used shall

be as indicated in the approved APP

Mode of
Procurement
General Guidelines

Prohibition on Splitting of Government Contracts

Division or breaking up of government contracts into smaller quantities
and amounts, or dividing contract implementation into artificial phases
or sub-contracts for the purpose of evading or circumventing the
requirements of procurement rules & procedures is prohibited.
However, mere act of dividing a contract into smaller quantities or
phases does not automatically constitute splitting of contract.
PEs are authorized to divide a procurement project into lots to attract
the maximum competition but must ensure that doing so is not made
to circumvent any provisions of RA No. 9184 & its IRR.

- (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:

Direct Shopping Take-Over of Small Value

Contracting [Sec 52.1(b)] Contracts Procurement

👨 👨
Lease of Real Scientific, Scholarly or Artistic Highly
Property Work, Exclusive Technology Technical
&Venue and Media Services Consultants
General Guidelines

Advertisement & Posting of Procurement Opportunity

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:

Limited Source Shopping Two-Failed Small Value Procurement

[Sec 52.1(b)] Biddings for projects with ABC above ₱50,000.00) NGO Participation
Bidding
Procurement opportunities for the aforementioned alternative methods shall be posted in the following
for a period of at least three (3) calendar days:
Conspicuous place in
PhilGEPS website PE’s website PE’s premises
General Guidelines

Most Advantageous Price for Government

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

Posting of Notice of Award, Contract and Notice to Proceed

NOA, Contract/PO, including the NTP if necessary shall be posted, within 10 days from
their issuance, in the following:
Conspicuous place in
PhilGEPS website PE’s website PE’s premises
Except for contracts with ABC of ₱50,000.00 & below.
General Guidelines
GPPB Resolution No. 09-2020
Latest Updates:
Measures for Efficient Conduct of Procurement Activities during a State of
Calamity, or Implementation of Community Quarantine or Similar Restrictions

Submission of Procurement Documents through E-Mail/Facsimile

Submission of procurement related documents, except for the submission and receipt of bids, through
electronic mail or facsimile shall be allowed, subject to the submission of the printed copies as soon as
practicable, as determined by the BAC

Maximizing Existing Government Procurement Rules

Use of videoconferencing, webcasting and similar technology in the conduct of any of the meetings
and determination of quorum by the BAC
Use of digital signatures in procurement related documents

Cancellation/Termination of Procurement Activities

Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184, the BAC, upon consultation with the
end-user unit, shall be allowed to cancel or terminate the conduct of procurement activities for any justifiable reason
Performance and Warranty Securities

Alternative Method of
Performance Security Warranty Security
Procurement

For highly-specialized types of

Limited Source Bidding Yes goods, WS is required

Direct Contracting No Yes

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

PE may require PS PE may require WS

Negotiated Procurement depending on the depending on the
nature of the nature of the
Emergency Cases procurement project. procurement project.
However, for In no case shall WS be
Infrastructure required in the
Projects, PS is procurement of
Small Value Procurement required Consulting Services.

Yes Yes
Take-Over of Contracts

For Infrastructure
Yes Projects,
Adjacent or Contiguous WS is required
Latest Updates on Performance Security

GPPB Resolution No. 09-2020

Latest Updates:
Measures for Efficient Conduct of Procurement Activities during a State of
Calamity, or Implementation of Community Quarantine or Similar Restrictions

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
Latest Updates on Performance Security

Similar to the PSD used in Framework

Agreement, such declaration shall
state, among others, that the winning
bidder shall be blacklisted from
being qualified to participate in any
government procurement activity for
one (1) year, in case of first offense
or two (2) years, if with prior similar
offense, in the event it violates any of
the conditions stated in the contract.
 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

Background Applicability Conditions

“Selective Bidding”
Highly specialized
Goods equipment/services
Direct invitation to
pre-selected
suppliers or
consultants Consulting Major plants
Services components
Limited Source Bidding

Pre-selection is based on capability and resources to

perform the contract taking into account:
Experience and performance on similar contracts

👨 Personnel, equipment, manufacturing facilities

👨
Financial position

The pre-selected list may be accessed at the GPPB website

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

Background Applicability Conditions

“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

End-User shall conduct survey of the industry & determine supply

1
source to justify the need to procure through Direct Contracting

BAC, through its Secretariat, shall prepare the RFQ or pro-forma

2
invoice, & send to identified direct supplier

BAC may conduct simplified negotiations on the terms &

3 conditions of the contract to ensure that supplier is technically,
legally and financially capable to undertake the project

4 BAC shall recommend award of contract to the HoPE

Repeat Order

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

Same or lower unit prices than those in the original contract

No splitting of contracts, requisitions & Purchase Orders

Availed of within 6 months from the date of the NTP arising
from the original contract, provided that there has been a
partial delivery, inspection and acceptance of the goods within
the same period
Not to exceed 25% of quantity of each item in original contract
The goods under the original contract must be quantifiable,
divisible and consisting of at least four (4) units per item
Repeat Order

???

=
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

Background Applicability Conditions

PE requests price
quotations
Shopping A
Procurement of [ Section. 52.1(a) ]
readily available off-
the-shelf goods or Goods
ordinary/regular
equipment Shopping B
[ Section. 52.1(b) ]
Procured directly
from suppliers of
know qualifications
Shopping
Conditions
Shopping A
[ Section. 52.1(a) ]
There is an unforeseen Vs.
contingency requiring
immediate purchase; and
Amount does not exceed
the threshold.
Conditions Latest Update:
CSE Items not
Shopping B
available in DBM-PS
[ Section. 52.1(b) ]
may be procured from
Procurement of ordinary other sources without
or regular office supplies the need of securing
and equipment not of Certificate of Non-
available in PS-DBM; and Availability of Stocks
(CNAS), subject to
Amount does not exceed conditions set forth in
the threshold. GPPB-Resolution No.
17-2020
Shopping

Threshold Threshold

Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]

PhP200,000.00 Vs.
for NGAs, GOCCs, GFIs,
SUCs & Autonomous
Regional Government
PhP1,000,000.00
for NGAs, GOCCs, GFIs,
SUCs & Autonomous
Regional Government
Shopping

Threshold for LGUs

Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
Shopping
Procedures
Shopping A
[ Section. 52.1(a) ]
The RFQ may be sent
directly to the supplier of Vs.
known technical, legal and
financial qualifications.
Sending & receipt of one
(1) RFQ will suffice.
Posting of the RFQ may be
dispensed with.
Procedures
Shopping B
[ Section. 52.1(b) ]
BAC shall send RFQs to at least
three (3) suppliers of known
qualifications, & at least three
(3) price quotations must be
obtained.
Deadline may be extended thrice in
case no or less than the required
number of quotation is received.
Negotiated Procurement
Negotiated Procurement
Applicability

Two Failed
Biddings Goods Infrastructure Consulting
Projects Services

Background Conditions

No bids were received

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

👨 The Single/LCRB/HRCB refuses, without justifiable

cause, to accept the award or no award was made
Negotiated Procurement
Exception

Failure of Bidding as Declared by the HoPE

Two Failed
If the failure of bidding is due to the declaration by
Biddings
the HOPE pursuant to Section 41 of the IRR ,
Negotiated Procurement (Two Failed Biddings)
cannot be resorted to.
Procedural Guidelines

Declaration of 2 Failed Preparation of

Mandatory
Competitive RFQ/Bid Docs
Review
Bidding/LSB
Observers shall be
invited in all stages
Invite at least (3) Awarding of
suppliers/contractors/ Best Offer
Contract
consultants
Negotiated Procurement
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Conditions

In case of imminent danger to life or property during a state of calamity;

When time is of the essence arising from natural/man-made calamities;

Other causes where immediate action is necessary:

• To prevent damage to or loss of life or property
• Restore vital public services, infrastructure facilities and other public utilities
Negotiated Procurement
Applicability

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

Instances when Negotiated Procurement - Emergency Cases may be resorted to

• Provision of immediate response and initial recovery steps to avoid loss

of life, injury, disease and other negative effects on human, physical,
mental and social well-being.
• Inclusion of prompt interventions for damage to property, destruction of
assets, social and economic disruption and environmental degradation
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
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

Revision of Direct negotiation

Purchase APP and with a legally,
Request validation of technically and Award of
from available financially capable Contract
End-User budget for supplier,
the purpose contractor,
consultant
Negotiated Procurement
Take-Over of
Contracts
Procedural Guidelines
Post-Qualify & Negotiate
The BAC shall post-qualify and
negotiate starting with the 2nd
LCB or HRB at the said bidder’s
original bid price, then on to the
next if negotiation fails.
Applicability
Goods Infrastructure Consulting
Projects Services
Procedural Guidelines
If negotiation fails…
• Invite a short list of at least three (3)
suppliers, contractors or consultants
to submit bids and negotiate starting
with the LCB or HRB; or
• Resort to any other appropriate
alternative method of procurement.
Negotiated Procurement
Background

Adjacent or Where subject contract is adjacent/contiguous to

Contiguous an on-going civil work or consulting service where
contractors/consultants have unique experience &
expertise to deliver required service
Applicability

Conditions

Infrastructure Original contract is a result of competitive

Projects bidding;

Subject contract has similar or related scopes

👨 of work;
Consulting 👨
Services Within the contracting capacity of the
contractor/consultant;
Negotiated Procurement

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.

No negative slippage/delay during the time of negotiation

Consulting Negotiations shall commenced before expiry of original contract

Services
Negotiated Procurement
Background
Agency-To-Agency Procurement from another government agency (Servicing
Agency) that has the mandate to deliver goods or services
Applicability or to undertake infrastructure projects or consultancy
services as required by the PE.

Goods
Conditions

PE shall justify that entering into an A-to-A with Servicing

Infrastructure Agency is more efficient & economical to the government
Projects
Servicing Agency has the absorptive capacity to
undertake the project;
Servicing Agency owns or has access to necessary tools
Consulting
Services & equipment required for the project;
Negotiated Procurement

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

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

👨 Work of art; commissioned work or services of an artist for specific artistic

skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.);

Scientific, academic, scholarly work or research, or legal services;

Highly-specialized life-saving medical equipment, as certified by the

Department of Health;
Negotiated Procurement

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Scientific, technical, economic, business, trade or legal journal, magazine,

paper, subscription, or other exclusive statistical publications and references;

Media documentation, advertisement, or announcement through television,

radio, newspaper, internet, and other communication media; and
Construction or installation of an infrastructure facility where the material,
👨 👨 equipment, or technology under a proprietary right can only be obtained from
the same contractor.
Negotiated Procurement

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Procedural Guidelines

Markey Study by Direct negotiation with Award of

End-User to supplier, contractor, Contract
justification consultant
Negotiated Procurement

👨 👨 Background

Procurement of consultancy contract involving an

Highly Technical
individual consultant who is found to be legally,
Consultants technically and financially capable after negotiation.

Applicability
Conditions

Work involves highly technical or proprietary; or

primarily confidential or policy determining, where trust
and confidence are the primary consideration; and
Consulting
Services Term is, at the most, 1 year, renewable at the option of
the appointing HOPE, but in no case to exceed the
term of the latter.
Negotiated Procurement
Background

Defense Cooperation Covers procurement of major defense equipment

Agreement (DCA) or material Defense-related consultancy services

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

Procurement not covered by Procedures

Shopping under Sec. 52
Threshold
PhP1,000,000.00
for NGAs, GOCCs, GFIs, SUCs &
Autonomous Regional Government
The BAC shall prepare and send the RFQs/RFPs to at least
three (3) suppliers, contractors or consultants of known
qualifications.
For procurement activities with ABC of above PhP50,000.00,
RFQ shall be posted in the PhilGEPS website, PE’s website
& conspicuous place in the premises of the PE
Receipt of at least one (1) quotation/proposal is sufficient to
proceed with the evaluation.
Negotiated Procurement

Small Value Procurement

Procedural Guidelines

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

Award to LCB /HRB

Prepare Abstract that complies with
of Quotations specs and ABC
Negotiated Procurement
Background
Lease of Procurement covering lease of
Real Property & Venue real property/venue for official use.

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

Publicly-owned vis-à-vis privately-owned real property or venue

It is preferred that government agencies lease publicly-owned real property or
venue from other government agencies
If there is an available publicly-owned real property or venue that complies with
the requirements of the Procuring Entity, it may enter into a contract of lease
with the government-agency owner.

Renewal of Contract of Lease of Real Property

Prior to the expiration of the lease contract, the end-user must conduct a cost-
benefit analysis to assess the quality of service under the lease contract.
If the results of the CBA continue to favor the existing lessor, then the PE may
simply renew its lease contract. If it does not, then the PE should procure a new
lease contract.
Negotiated Procurement
Applicability

NGO Participation
Goods Infrastructure Consulting
Projects Services

Conditions

Appropriation law or ordinance earmarks an amount to be contracted to NGOs

PE may opt to conducting public bidding or enter into a MOA with an NGO

Procedural Guidelines (for Negotiated Procurement)

BAC shall invite at least 3 prospective NGOs to submit sealed price quotations with
complete project proposals
Upon determination of the Lowest Calculated Bid & after the submission & evaluation of
eligibility documents, PE shall enter a MOA with the eligible NGO
Negotiated Procurement
Background
Involvement of people in a community in projects to address
Community their own community needs
Participation
Participation of local communities in the delivery of goods,
including non-consulting services and simple infrastructure
projects
Applicability In the interest of project sustainability or to achieve certain
specific social objectives

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

PE shall prepare RFQ to reflect brief description of the project,

1 specifications or scope of work, ABC & other necessary information

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 Infrastructure Consulting
Goods
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;

Specialized products where the number of suppliers is limited (e.g. vaccines,

drugs); or
Goods, infrastructure projects and consulting services, involving advanced
technologies, techniques and innovations not locally available as certified by the
HoPE,.
Negotiated Procurement
Background

Direct Retail Purchase of In view of the volume of queries on procurement of POL

Petroleum, Fuel, Oil & products, & delisting of airline tickets from the Procurement
Lubricant (POL) Products, Service, GPPB-TSO conducted a study on the modality where
and Airline Tickets POL products & airline tickets may be best procured in terms of
economy and efficiency

New Provision through GPPB Resolution No. 24-2019

Section 53.14 of the 2016 Revised IRR of RA No. 9184:

✔ Direct retail purchase of POL and airline ticket may be made by end-users from
identified direct suppliers or service providers
✔ The BAC and the HoPE shall delegate to specific officials, personnel, committee or
office in the PE the conduct of Direct Retail Purchase
✔ Shall be done through competitive bidding except when PE determined that direct retail
purchase is the best modality to procure non-bulk POL products or airline tickets
Negotiated Procurement
GPPB Resolution No. 24-2019
Direct Retail Purchase of POL Products and Airline Tickets

Conditions for POL

POL requirements necessary for the operations of the PE shall be reflected in

the APP including provisions for foreseeable emergencies based on historical
records
Direct Purchase must be made from any available retailers, dealers or gas
stations at retail pump price
POL procurement 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
Negotiated Procurement
GPPB Resolution No. 24-2019
Direct Retail Purchase of POL Products and Airline Tickets

Conditions for Airline Tickets

Direct purchase of airline tickets required for official travels within the fiscal year
shall be reflected in the APP including provisions for foreseeable emergencies
based on historical records

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

Timeline of Submission of Documentary Requirements

The BAC shall indicate in the RFQ or RFP at what stage of the
procurement process to which the documentary requirements
must be submitted, i.e., submission of offer/s, evaluation of
offer/s, before issuance of Notice of Award or prior to
payment.
Documentary Requirements

Direct Shopping Negotiated Procurement

Contracting [Sec 52.1(b)] Emergency Cases

Mayor’s Permit Mayor’s Permit Mayor’s Permit

PCAB License (for Infra.)

PhilGEPS Reg. No. PhilGEPS Reg. No.
NFCC (for Infra.)
For ABCs above PhP500,000.00
Income/Business
Tax Return Income/Business Tax Return
For ABCs above For ABCs above PhP500,000.00
PhP500,000.00
Omnibus Sworn Statement

For ABCs above PhP500,000.00

Documentary Requirements

Scientific, Scholarly or Artistic

Take-Over of Adjacent or
Work, Exclusive Technology and
Contracts Contiguous Media Services

Mayor’s Permit PCAB License

(for Infra.)
Mayor’s Permit

Professional NFCC (for Infra.) Professional License/CV

License/CV (for Consulting Services)
(for Consulting Services)
PhilGEPS Reg. No.
PhilGEPS Reg. No.
Income/Business Tax Return
PCAB License
(for Infra.)
For ABCs above PhP500,000.00

NFCC (for Infra.)

Documentary Requirements

👨 👨
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
(for Consulting Services)
Professional
License/CV PhilGEPS Reg. No. PhilGEPS Reg. No.
(for Consulting Services)
Except for gov’t agencies as lessors
PCAB License
(for Infra.)
PhilGEPS Reg. No. Income/Business
Income/Business Tax Tax Return
Return
Except for gov’t agencies as lessors
For ABCs above PhP500,000.00
Omnibus Sworn
Statement
For ABCs above PhP50,000.00
Latest Updates on Documentary Requirements

Only applicable during a State of Calamity, or Performance Securing Declaration

implementation of community quarantine or similar
restrictions in lieu of a performance security
Latest Updates on Documentary Requirements

Only applicable during a State of Calamity, or implementation

of community quarantine or similar restrictions