Republic of the Philippines

CAVITE STATE UNIVERSITY

Don Severino de las Alas Campus

Indang, Cavite, Philippines

COLLEGE OF ENGINEERING AND INFORMATION TECHNOLOGY

Department of Civil Engineering

CENG106B - ADVANCED CONSTRUCTION METHODS AND EQUIPMENT

BIDDING PROCESS AND REQUIREMENTS

Submitted by:

Doctor, Sealthiel Jireh

Filart, Harvey Klein

Hapita, Nyssah Cheilone Anne

Magbago, Jellamae

Peñalba, Aeron Gabriel

Ramos, Ariane Camille

Saclolo, Maica Mae

GROUP 1

BSCE 4-2
Executive Summary

This provides an overview of the bidding process and requirements in the Philippines.

Public procurement is a crucial component of the government's fiscal responsibility and

accountability. The Philippines follows a well-defined and regulated bidding process to ensure

transparency, competition, and fairness in government procurement. Understanding the details

of the procurement process is essential for both businesses and organizations aiming to

participate in government or private sector contracts. The report explores the regulatory

framework governing bidding, the key steps involved, and the specific requirements for

prospective bidders.

Introduction

The Philippines has established a structured bidding process to ensure transparency,

competitiveness, and fairness in the procurement of goods, services, and public works. This

process applies to government and private sector contracts, each subject to distinct but related

rules and regulations. This introduction provides an initial look at the process and what you

need to know to win contracts in this competitive environment.

These Philippine Bidding Documents (PBDs) for the procurement of Consulting Services

through Competitive Bidding have been prepared by the Government of the Philippines (GoP)

for use by all branches, agencies, departments, bureaus, offices, or instrumentalities of the

Government, including government-owned and/or -controlled corporations (GOCCs),

government financial institutions (GFIs), state universities and colleges (SUCs), local

government units (LGUs), and autonomous regional government. The procedures and

practices presented in this document have been developed through broad experience, and are

for mandatory use in projects that are financed in whole or in part by the GoP or the World Bank

or any foreign government/foreign or international financing institution in accordance with the

provisions of the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act 9184

(R.A. 9184).

The Bidding Documents shall clearly and adequately define, among others: (a) the

objectives, scope, and expected outputs and/or results of the proposed contract; (b) the

minimum eligibility requirements of bidders, such as track record to be determined by the Head

of the Procuring Entity; (c) the expected contract duration, delivery schedule and/or time frame;

and (d) the obligations, duties, and/or functions of the winning bidder.

In order to simplify the preparation of the Bidding Documents for each procurement, the

PBDs group the provisions that are intended to be used unchanged in Section II. Eligibility

Documents of Part I; and Section II. Instructions to Bidders (ITB) and Section IV. General

Conditions of Contract (GCC) of Part II. Data and provisions specific to each procurement and

contract should be included in Section III. Eligibility Data Sheet (EDS) of Part I, Section III. Bid

Data Sheet (BDS), and Section V. Special Conditions of Contract (SCC) of Part II. The forms to

be used are provided in the attachments.

Regulatory Framework

The primary legal framework governing the bidding process in the Philippines is the

Republic Act No. 9184, known as the "Government Procurement Reform Act." Key regulatory

bodies and agencies responsible for overseeing this process include the Government

Procurement Policy Board (GPPB) and the Department of Budget and Management (DBM).

RA 9184, also known as the Government Procurement Reform Act of 2003, is a

significant piece of legislation in the Philippines that regulates the government's procurement

processes. It establishes the legal framework for the entire bidding process in the country. RA

9184 promotes transparency, efficiency, and accountability in government procurement by

setting forth strict guidelines for how government agencies acquire goods, services, and

infrastructure projects.
 This law covers various aspects of procurement, including the preparation of bidding

documents, the conduct of competitive bidding, and post-award procedures. It defines the roles

and responsibilities of government agencies, bidders, and oversight bodies involved in the

procurement process. RA 9184 also provides provisions for procurement methods, bid security,

and dispute resolution. Overall, it serves as the foundation for ensuring fairness and integrity in

the bidding process for government contracts in the Philippines.

Key Steps in the Bidding Process

STEP 1: PRE-PROCUREMENT ACTIVITIES

1. Identification of the Need for Procurement

Government agencies or private entities identify the need for specific goods, services, or

projects. This includes the identification of the existing need or problem of a specific client in

terms of civil works. Moreover, the evaluation of the site is involved in this procedure as they are

being assessed if it is needed for procurement and also fit for construction.

2. Budget Allocation and Planning

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE II

PROCUREMENT PLANNING

SEC. 7. Procurement Planning and Budgeting Linkage. – All procurement should be

within the approved budget of the Procuring Entity and should be meticulously and judiciously

planned by the Procuring Entity concerned. Consistent with government fiscal discipline

measures, only those considered crucial to the efficient discharge of governmental functions

shall be included in the Annual Procurement Plan to be specified in the IRR.

No government Procurement shall be undertaken unless it is in accordance with the

approved Annual Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall

be approved by the Head of the Procuring Entity and must be consistent with its duly approved
yearly budget. The Annual Procurement Plan shall be formulated and revised only in

accordance with the guidelines set forth in the IRR. In the case of Infrastructure Projects, the

Plan shall include engineering design and acquisition of right-of-way.

3. Market Research and Preliminary Documentation

From Republic Act 9184 - Government Procurement Reform Act

APPENDIX 31

GUIDELINES ON THE IMPLEMENTATION OF EARLY PROCUREMENT ACTIVITIES (EPA)

SEC. 2. PREPARATORY ACTIVITIES

2.1 The procuring entity (PE) shall complete all the appropriate preparatory activities

such as, but not limited to, cost-benefit analysis, feasibility studies, market research, and

detailed engineering designs, regulatory clearances and right of way acquisitions for civil works

projects prior to the approval of the indicative APP.

 STEP 2: PROCUREMENT PLANNING

1. Preparation of Bid Documents

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS

SEC. 17. Form and Contents of Bidding Documents. – The Bidding Documents shall

be prepared by the Procuring Entity following the standard forms and manuals prescribed by the

GPPB.

The Bidding Documents shall include the following:

(a) Approved Budget for the Contract;

(b) 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;

(c) Terms of Reference;

(d) Eligibility Requirements;

(e) Plans and Technical Specifications;

(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;

(g) Delivery Time or Completion Schedule;

(h) Form and Amount of Bid Security;

(i) Form and Amount of Performance Security and Warranty; and,

(j) Form of Contract, and General and Special Conditions of Contract.

2. Determination of Eligibility and Qualification Requirements

From the Philippine Bidding Documents for Procurement of Consulting Services Fifth

Edition, August 2016

 SECTION 2. ELIGIBILITY DOCUMENTS

Eligibility Criteria

1.1. The following persons/entities shall be allowed to participate in the bidding for

Consulting Services:

(a) Duly licensed Filipino citizens/sole proprietorships;

(b) Partnerships duly organized under the laws of the Philippines and of which at

least sixty percent (60%) of the interest belongs to citizens of the Philippines;

(c) Corporations duly organized under the laws of the Philippines and of which at

least sixty percent (60%) of the outstanding capital stock belongs to citizens of

the Philippines;

(d) Cooperatives duly organized under the laws of the Philippines; or

(e) Persons/entities forming themselves into a joint venture, i.e., a group of two (2) or

more persons/entities that intend to be jointly and severally responsible or liable

for a particular contract: Provided, however, That Filipino ownership or interest

thereof shall be at least sixty percent (60%). For this purpose, Filipino ownership

or interest shall be based on the contributions of each of the members of the joint

venture as specified in their JVA.

1.2. Foreign bidders may be eligible to participate in the procurement of Infrastructure

Projects under Treaty of International or Executive Agreement

1.3. Those qualified in Section 1.1 of the Implementing Rules and Regulations may

participate in competitive bidding if he has been issued a license by the PCAB to engage

or act as a contractor
 2.1 Government owned or –controlled corporations (GOCCs) may be eligible to

participate only if they can establish that they

(a) are legally and financially autonomous,

(b) operate under commercial law, and

(c) are not attached agencies of the Procuring Entity.

3.1 Notwithstanding the eligibility of a bidder, the Procuring Entity concerned reserves

the right to review the qualifications of the bidder at any stage of the procurement

process if the Procuring Entity has reasonable grounds to believe that a

misrepresentation has been made by the said bidder, or that there has been a change in

the bidder’s capability to undertake the project from the time it submitted its eligibility

requirements.

3. Publication of Invitations to Bid (ITB)

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE VII
INVITATION TO BID

In line with the principle of transparency and competitiveness, all Invitations to Bid for

contracts under competitive bidding shall be advertised by the Procuring Entity in such manner

and for such length of time as may be necessary under the circumstances, in order to ensure

the widest possible dissemination thereof, such as, but not limited to, posting in the Procuring

Entity’s premises, in newspapers of general circulation, the G-EPS and the website of the

Procuring Entity, if available.

The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;

(b) A general statement on the criteria to be used by the Procuring Entity for the eligibility

check, the short listing of prospective bidders, in the case of the Procurement of

Consulting Services, the examination and evaluation of Bids, and post-qualification;

(c) The date, time and place of the deadline for the submission and receipt of the eligibility

requirements, the pre-bid conference if any, the submission and receipt of bids, and the

opening of bids;

(d) The Approved Budget for the Contract to be bid;

(e) The source of funds;

(f) The period of availability of the Bidding Documents, and the place where these may be

secured;

(g) The contract duration; and,

(h) Such other necessary information deemed relevant by the Procuring Entity

STEP 3: BIDDING PROPER

1. Submission of Bid Documents

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE VIII

RECEIPT AND OPENING OF BIDS

SEC. 25. Submission and Receipt of Bids - A bid shall have two (2) components,

namely the technical and financial components which should be in separate sealed

envelopes, and which shall be submitted simultaneously. 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 it sufficient time to complete the
 bidding process and giving the prospective bidders sufficient time to study and prepare

their bids. The deadline shall also consider the urgency of the procurement involved.

SEC. 26. Modification and Withdrawal of Bids. – A bidder may modify his bid,

provided that this is done before the deadline for the receipt of bids. The modification

shall be submitted in a sealed envelope duly identified as a modification of the original

bid and stamped received by the BAC. A bidder may, through a letter, withdraw his bid or

express his intention not to participate in the bidding before the deadline for the receipt

of bids. In such case, he shall no longer be allowed to submit another Bid for the same

contract either directly or indirectly.

SEC. 27. Bid Security. – All Bids shall be accompanied by a Bid security, which shall

serve as a guarantee that, after receipt of the Notice of Award, the winning bidder shall

enter into contract with the Procuring Entity within the stipulated time and furnish the

required performance security. The specific amounts and allowable forms of the Bid

security shall be prescribed in the IRR.

2. Bid Opening and Evaluation

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE VIII

RECEIPT AND OPENING OF BIDS

SEC. 29. Bid 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 shall be made

available to the public upon written request and payment of a specified fee.

SEC. 30. Preliminary Examination of Bids. – Prior to Bid evaluation, the BAC shall

examine first the technical components of the bids using "pass/fail" criteria to determine
whether all required documents are present. Only bids that are determined to contain all

the bid requirements of the technical component shall be considered for opening and

evaluation of their financial component.

SEC. 31. Ceiling for Bid Prices. – The ABC shall be the upper limit or ceiling for the Bid

prices. Bid prices that exceed this ceiling shall be disqualified outright from further

participating in the bidding. There shall be no lower limit to the amount of the award.

SEC. 32. Bid for the Procurement of Goods and Infrastructure Projects. – For the

procurement of Goods and Infrastructure Projects, the BAC shall evaluate the financial

component of the bids. The bids that passed the preliminary examination shall be ranked

from lowest to highest in terms of their corresponding calculated prices. The bid with the

lowest calculated price shall be referred to as the "Lowest Calculated Bid."

SEC. 33. 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 accordance with the evaluation criteria

stated in the Bidding Documents, which shall include factors such as, but not limited to,

experience, performance, quality of personnel, price and methodology. The Bids shall be

ranked from highest to lowest in terms of their corresponding calculated ratings. The Bid

with the highest calculated rating shall be the “Highest Rated Bid.” After approval by the

Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite the bidder

concerned for negotiation and/or clarification on the following items: financial proposal

submitted by the bidder, terms of reference, scope of services, methodology and work

program, personnel to be assigned to the job, services/facilities/data to be provided by

the Procuring Entity concerned, and provisions of the contract. When negotiations with
 the first-in-rank bidder fails, the financial proposal of the second rank bidder shall be

opened for negotiations: Provided, That the amount indicated in the financial envelope

shall be made as the basis for negotiations and the total contract amount shall not

exceed the amount indicated in the envelope and the ABC. Whenever necessary, the

same process shall be repeated until the bid is awarded to the winning bidder.

3. Awarding of the Contract

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE XI

AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

SEC. 37. Notice and Execution of Award. – Within a period not exceeding fifteen (15)

calendar days from the determination and declaration by the BAC of the Lowest

Calculated Responsive Bid or Highest Rated Responsive Bid, and the recommendation

of the award, the Head of the Procuring Entity or his duly authorized representative shall

approve or disapprove the said recommendation. In case of approval, the Head of the

Procuring Entity or his duly authorized representative shall immediately issue the Notice

of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated

Responsive Bid.

Within ten (10) calendar days from receipt of the Notice of Award, the winning

bidder shall formally enter into contract with the Procuring Entity. When further approval

of higher authority is required, the approving authority for the contract shall be given a

maximum of 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.
 The Procuring Entity shall issue the Notice to Proceed to the winning bidder not

later than seven (7) calendar days from the date of approval of the contract by the

appropriate authority. All notices called for by the terms of the contract shall be effective

only at the time of receipt thereof by the contractor.

STEP 4: POST-PROCUREMENT ACTIVITIES

1. Contract Execution

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE XI

AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

SEC. 38. Period of Action on Procurement Activities. – The procurement process

from the opening of bids up to the award of contract shall not exceed three (3) months,

or a shorter period to be determined by the procuring entity concerned. Without prejudice

to the provisions of the preceding section, the different procurement activities shall be

completed within reasonable periods to be specified in the IRR.

2. Monitoring and Evaluation

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE XI

AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

SEC. 39. Performance Security. – Prior to the signing of the contract, the winning

bidder shall, as a measure of guarantee for the faithful performance of and compliance

with his obligations under the contract prepared in accordance with the Bidding

Documents, be required to post a performance security in such form and amount as

specified in the Bidding Documents.

 SEC. 40. Failure to Enter into Contract and Post Performance Security. – If, for

justifiable causes, the bidder with the Lowest Calculated Responsive Bid or Highest

Rated Responsive Bid fails, refuses or is otherwise unable to enter into contract with the

Procuring Entity, or if the bidder fails to post the required performance security within the

period stipulated in the Bidding Documents, the BAC shall disqualify the said bidder and

shall undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest

Rated Bid. This procedure shall be repeated until an award is made. However, if no

award is possible, the contract shall be subjected to a new bidding.

3. Resolution of Disputes or Issues

From Republic Act 9184 - Government Procurement Reform Act

ARTICLE XI

AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

SEC. 42. Contract Implementation and Termination. – The rules and guidelines for

the implementation and termination of contracts awarded pursuant to the provisions of

this Act shall be prescribed in the IRR. The rules and guidelines shall include standard

general and special conditions for contracts.

 REQUIREMENTS FOR BIDDING

Bidding in the Philippines entails specific requirements for both government projects

and private sector contracts.

1. Eligibility and Qualification

● Bidders must be registered and compliant with applicable government regulations.

● Financial capability and technical qualifications may undergo rigorous assessment.

Eligibility Requirements according to Section II: Eligibility Documents

The following eligibility requirements, together with the Eligibility Documents Submission Form,

shall be submitted on or before the date of the eligibility check specified in the Request for

Expression of Interest and Clause 5 for purposes of determining eligibility of prospective

bidders:

(a) Class “A” Documents

● Legal Documents

(i) PhilGEPS (Philippine Government Electronic Procurement System) Certificate of

Registration and Membership in accordance with Section 8.5.2 of the IRR(implementing

rules and regulations), except for foreign bidders participating in the procurement by a

Philippine Foreign Service Office or Post, which shall submit their eligibility documents

under Section 24.1 of the IRR, provided, that the winning Consultant shall register with

PhilGEPS in accordance with Section 37.1.4 of the IRR;

 ● Technical Documents

(ii) Statement of the prospective bidder of all its ongoing and completed

government and private contracts, including contracts awarded but not yet started, if any,

whether similar or not similar in nature and complexity to the contract to be bid, within

the relevant period provided in the EDS (Eligibility Data Sheet). The statement shall

include, for each contract, the following:

(ii.1) the name and location of the contract;

(ii.2) date of award of the contract;

(ii.3) type and brief description of consulting services;

(ii.4) consultant’s role (whether main consultant, subconsultant, or

partner in a JV)

(ii.5) amount of contract;

(ii.6) contract duration; and

(ii.7) certificate of satisfactory completion or equivalent document

specified in the EDS issued by the client, in the case of a completed contract;

(iii) Statement of the consultant specifying its nationality and confirming that those

who will actually perform the service are registered professionals authorized by the

appropriate regulatory body to practice those professions and allied professions in

accordance with Clause 1.2, including their respective curriculum vitae.

(b) Class “B” Document

If applicable, the Joint Venture Agreement (JVA) in case the joint venture is already in existence,

or duly notarized statements from all the potential joint venture partners in accordance with

Section 24.1(b) of the IRR of RA 9184.

The eligibility requirements or statements, the bids, and all other documents to be submitted to

the BAC must be in English. If the eligibility requirements or statements, the bids, and all other

documents submitted to the BAC (Bids and Awards Committee) are in foreign language other

than English, it must be accompanied by a translation of the documents in English. The

documents shall be translated by the relevant foreign government agency, the foreign

government agency authorized to translate documents, or a registered translator in the foreign

bidder’s country; and shall be authenticated by the appropriate Philippine foreign service

establishment/post or the equivalent office having jurisdiction over the foreign bidder’s affairs in

the Philippines. The English translation shall govern, for purposes of interpretation of the bid.

Prospective bidders may obtain a full range of expertise by associating with individual

consultant(s) and/or other consultants or entities through a JV or subcontracting arrangements,

as appropriate. However, subconsultants may only participate in the bid of one shortlisted

consultant. Foreign Consultants shall seek the participation of Filipino Consultants by entering

into a JV with, or subcontracting part of the project to, Filipino Consultants.

2. Bid Documents

● Bidders must prepare and submit comprehensive and accurate bid documents, often

accompanied by a bid bond or security deposit.

 ● Bid documents, also referred to as bidding or tender documents, are formal written

materials offered by a procuring entity to potential bidders or contractors as a

fundamental part of a competitive bidding or procurement process.

The Bidding Documents:

● Approved Budget for the Contract (ABC)- The maximum allocated financial amount

for a project.

● Instructions to Bidders- Guidelines from the procuring entity, detailing eligibility

criteria, bid evaluation, and submission procedures.

● Terms of Reference (TOR)- Describes project scope, objectives, and requirements.

● Eligibility Requirements: Criteria that bidders must meet to participate, including legal,

financial, and technical qualifications.

● Plans and Technical Specifications- Detailed documents with technical drawings and

project specifications.

● Form of Bid, Price Form, and List of Goods or Bill of Quantities- Templates for bid

submission, including proposed prices and itemized quantities.

● Delivery Time or Completion Schedule- Specifies project timelines and milestones.

● Form and Amount of Bid Security- Details the type and value of security bidders must

provide to demonstrate commitment.

● Form and Amount of Performance Security and Warranty- Specifies security for

project completion and quality, including monetary values.

● Form of Contract, and General and Special Conditions of Contract- Outlines the

legal framework and terms governing the relationship between the procuring entity and

the successful bidder, with general and project-specific conditions.

These play a crucial role in ensuring transparency, fairness, and clarity in the

procurement and bidding process, facilitating effective contract execution.

 3. Compliance with Anti-Graft Laws

Bidders must provide certification that they are not involved in any corrupt practices, as

mandated by the Anti-Graft and Corrupt Practices Act.

In line with the Philippines' commitment to preventing corrupt practices in public

procurement, bidders are required to provide certification that they are not involved in any

corrupt practices. This is mandated by the Anti-Graft and Corrupt Practices Act, which aims to

maintain transparency and integrity in government transactions. Failure to provide such

certification can result in disqualification from the bidding process, legal consequences, or both.

4. Tax Clearance

Tax clearance is necessary for bidding on government contracts and other business

operations in the Philippines. A tax clearing is a certification that the taxpayer has paid all of

their outstanding taxes, provided by the local government unit (LGU) or the Bureau of Internal

Revenue (BIR). It functions as evidence that a company or individual has complied with tax

requirements and is qualified to take part in government bidding procedures or other

transactions requiring this certification.

Purpose

To guarantee that the government and other parties entering into contracts with

companies or people are working with entities that are compliant with taxes and have paid their

debts to the government, tax clearance is necessary. In public procurement, this promotes

accountability and openness.

Who Requires It?

Governmental organizations, local government units, and other organizations engaged

in public procurement or related procedures often need tax clearance. When they sign contracts

with firms, private groups or people may also ask for it.

You must also take note of the following critical considerations:

● You should not have unpaid taxes.

● You should not be tagged as a CBL taxpayer which is an abbreviation for Cannot Be

Located taxpayer.

● You should submit a written request for Tax Clearance.

● You should not have any unpaid annual registration fee or ARF.

● You should not have any pending tax or tax-related cases filed in court.

● You should not have a delinquent account.

Validity

The tax clearance certificate is typically valid for a specific period, often up to six months,

but it can vary depending on the issuing authority and their policies.

Inclusion in Bidding Documents

Individuals or companies who participate in a bidding procedure must provide a copy of

their current tax clearance certificate with their bid paperwork. This demonstrates both their

financial responsibility and their eligibility to take part.

Here's a checklist of common requirements to get a tax clearance for bidding in the

Philippines:

Bureau of Internal Revenue (BIR) Tax Clearance:

 1. Updated Tax Returns

2. Settlement of Outstanding Liabilities

3. Proof of Payment

4. Financial Statements

5. Tax Clearance Application Form

6. Affidavit of No Pending Cases

7. Compliance with Documentary Stamp Tax (DST

8. Compliance with Withholding Tax Regulations

9. Submission of Documentary Evidence

10. Review and Verification

11. Payment of Fees

12. Submission of Application

13. Processing and Approval

14. Obtain Tax Clearance Certificate

Local Government Unit (LGU) Tax Clearance (if applicable):

If the bidding procedure involves local taxes, you may additionally need to get a tax

clearance from the appropriate LGU. The conditions for an LGU tax clearance are identical to

those for the BIR tax clearing but apply to local tax responsibilities and compliance.

Always refer to the individual bidding papers and instructions supplied by the purchasing

agency, as they may have additional or changed criteria customized to the specific bidding

opportunity. Additionally, working with tax specialists or contacting the relevant tax authorities

may assist guarantee a smooth and compliance application procedure for tax clearances in the

context of bidding in the Philippines.

Penalties for Non-Compliance

Failure to obtain and submit a tax clearance certificate when required can result in

disqualification from the bidding process or contract award. In addition, individuals and

businesses may face penalties for non-compliance with tax obligations.

In summary, tax clearance is a vital document in Philippine bidding paperwork that

certifies a person or company is compliant with taxes and qualified to take part in government

contracts and other operations. It assists the government and other parties in selecting their

business partners with knowledge and guarantees accountability and openness in public

procurement. In the Philippines, the Bureau of Internal Revenue (BIR) issues an official

document called a Tax Clearance. One of the prerequisites for starting a new or continuing

contract with the government is submitting a Tax Clearance Certificate as proof of timely tax

payments and compliance with tax rules.

5. Technical and Financial Proposals

Detailed technical and financial proposals must be meticulously prepared and

submitted according to the specifications outlined in the bid documents.

TECHNICAL PROPOSALS

A technical proposal is a document that outlines how you will deliver a specific project or

service to a client or customer. It is often required for bidding on contracts, grants, or tenders,

and it should demonstrate your expertise, approach, and value proposition.

A technical proposal serves the same purpose. It ensures that everyone is clear about

the project goals and objectives and how they can benefit clients in solving their issues. This

prevents miscommunications and creates a shared understanding that builds trust between the

parties involved.
List of Technical Proposal Submission Form

● TPF 1 - Technical Proposal Submission Form

Usually, the cover page or first part, here is where you include the essential data

about the proposal submission, like the project title, your firm name, contact information,

and other important information.

● TPF 2 - Consultant's References

References or samples of your prior work should be included in this area to

highlight your credentials and experience. These testimonials might be certain jobs or

agreements you've fulfilled.

● TPF 3 - Comments and Suggestions

You can provide feedback on the project's terms of reference, as well as any

information, services, or resources that the Procuring Entity is required to supply, in this

area. This is your chance to offer suggestions and criticism.

● TPF 4 - Description of the Methodology and Work Plan

This section should include your work plan and suggested methods for carrying

out the project. This is the section where you describe the strategy you want to use and

the actions needed to finish the project.

● TPF 5 - Team Composition and Task

 You include details on the team that will be working on the project in this area,

along with their roles and duties. This aids in comprehending the skills and talents of

your group.

● TPF 6 - Format of Curriculum Vitae (CV)

The structure or template for presenting the curriculum vitae (CV) of the

suggested professional staff members who will be working on the project is usually

described in this section. It could contain particular information and specifications for

submitting a CV.

● TPF 7 - Time Schedule for Professional Personnel

A timetable detailing the times and duration of professional personnel's

involvement in the project should be included in this section. It aids in comprehending

the timeframe of your team's participation.

● TPF 8 - Activity (Work) Schedule

Here's where you give a thorough timetable or schedule for all the different

project tasks and activities. It describes the dates on which each activity will be

completed and how it fits into the larger project schedule.

The Technical Proposal Submission Form consists of these areas, all of which are

essential for showcasing your credentials, methodology, and team for the project proposal.

When writing your proposal, be careful to adhere to any specific instructions or forms given by

the Procuring Entity.

 To sum up, technical proposal documents play a crucial role in the bidding process since

they provide bidders a chance to showcase their credentials, experience, and project

management style. Before going on to the financial proposal assessment step, the purchasing

organization uses the technical proposal evaluation to assist choose the best bidder for the

project.

FINANCIAL PROPOSAL

The Financial Proposal should clearly estimate, as a separate amount, the local taxes

(including social security), duties, fees, levies, and other charges.

The financing proposal contains the details on how you intend to achieve your business

plan outlining: Amount of money needed. How that money will be used. Expected returns.

If you are a consultant who wants to bid for a project, you need to prepare a financial

proposal that shows how you will deliver the best value for money. A financial proposal is a

document that outlines the costs, revenues, and risks of your proposed solution, and how you

will manage them.

List of Financial Proposal Submission Form

This format is commonly used in procurement processes to present the financial aspects

of a proposal.

● FPF 1 - Financial Proposal Submission Form

In this first subject matter, you certify that you prepared and submitted your

financial proposal in accordance with all applicable regulations and standards. It also

includes your consent to the Procuring Entity and Funding Source looking through and

auditing relevant paperwork.

Which is an acknowledgement that, in preparation and submission of the Technical and

Financial Proposals, Consultants have:

a. followed the applicable rules and guidelines indicated in this ITB;

b. not taken any action which is or constitutes a corrupt, fraudulent, or coercive

practice as defined in the applicable rules and guidelines; and

c. agrees to allow the Procuring Entity and the Funding Source, at their option, to

inspect and audit all accounts, documents, and records relating to its Bid and to

the performance of the ensuing contract.

Costs of Consulting Services

● FPF 2 Summary of Costs

An overview of the entire expenses related to the project or contract is given in

this section. It might have a total cost or a summary of the main cost categories.

● FPF 3 Breakdown of Price per Activity

In this section, you provide a detailed breakdown of the proposed price for each

individual activity or task within the project. This helps the Procuring Entity understand

how the total cost is allocated to different project components.

● FPF 4 - Breakdown of Remuneration per Activity

This section outlines the remuneration or compensation for professional staff or

entities involved in each project activity. It may detail the salaries, fees, or other forms of

compensation.

● FPF 5 - Reimbursables per Activity

 Here, you specify the reimbursable expenses associated with each project

activity. Reimbursable expenses typically cover costs incurred by the consultant that will

be reimbursed by the Procuring Entity. This section provides transparency regarding

these costs.

● FPF 6 - Miscellaneous Expenses

This section accounts for any miscellaneous or incidental expenses that may

arise during the project but don't fit neatly into other categories. It's included to ensure

that all potential costs are considered in the financial proposal.

Both the consultant and the procuring entity will be able to comprehend the project's cost

structure and related charges thanks to this format's simplification, which guarantees that the

proposal's financial elements are given in an understandable and thorough manner. When

putting up your financial proposal, be sure to adhere to any particular instructions or templates

that the procurement organization may have provided.

To sum up, while bidding, financial proposal documents are crucial for evaluating a bid's

affordability, competitiveness, and financial sustainability. They are also essential to financial

management, cost control, and budgeting during the project's execution. Finding the most

economical and good offer is aided by the assessment of financial proposals.

CONCLUSION

To sum up, transparency, equity, and efficiency in the distribution of contracts and

resources are vitally dependent on the bidding procedure and requirements in the Philippines,

especially when it comes to public projects and government procurement.

The bidding procedure and requirements in the Philippines are essential instruments for

guaranteeing the effective and fair distribution of public funds and contracts. They are intended

to encourage accountability, competitiveness, and openness; yet, they still have issues that

must be resolved if the procurement system is to continue improving. To further improve the

efficiency and integrity of the bidding process, collaboration between the government and

pertinent parties is essential.

 References

Revenue Region - External Service. BIR. Retrieved November 5, 2023, from

https://www.bir.gov.ph/index.php/rr-external-service-04.html

Philippine Bidding Documents. (n.d.). DPWH. Retrieved November 5, 2023, from

https://www.dpwh.gov.ph/dpwh/sites/default/files/webform/consultancy/advertisement/3.1

%20Part%20II.%20biddocs18IF0007-C.docx

Updated requirements in securing Tax Clearance for bidding purposes_its getting easier. (2017,

December 12). RGA CPAs and Associates. Retrieved November 5, 2023, from

https://rga-cpas.com/2017/12/12/updated-requirements-in-securing-tax-clearance-for-bid

ding-purposes_its-getting-easier/