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GOVERNMENT

PROCUREMENT 101

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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.
MODULE OBJECTIVES
At the end of this module, participants should have:

DEVELOPED broader knowledge on the major concepts of the


government procurement activities and processes;

ACQUIRED knowledge on how to ensure effective, efficient,


and ethical government procurement operations in their
respective areas of responsibility; and

GATHERED uniform interpretation of the Republic Act No.


9184 and its 2016 revised Implementing Rules and
Regulations.

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 Philippine Government Procurement Laws: Then and Now

II The Government Procurement Policy Board and its Technical


Support Office

III Principles of Public Procurement

IV Key Concepts on Government Procurement

Scope and Application of Republic Act No. 9184 and its revised
V Implementing Rules and Regulations

VI Procurement Organization

VII Legal Indemnification


Procurement Package for the Bids and Awards Committee
Organization

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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.
Key Features of Government
Procurement Reform Act

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Enactment of the GPRA or Republic Act No. 9184

Executive
Orders
Administrative
Issuances

Memorandum
Circulars

Implementing
Rules and
Regulations

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without the author’s approval is prohibited.
Development

CHALLENGES BEFORE SOLUTIONS BROUGHT


GPRA ABOUT BY GPRA

Confusion caused by Enactment of the GPRA


fragmented legal system Creation of the Government
Inconsistent policies, rules, and Procurement Policy Board
regulations due to lack of (GPPB)
standards
Use of Philippine Government
Lack of transparency Electronic Procurement System
Lack of check and balance
Participation of Civil Society

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
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without the author’s approval is prohibited.
Purpose

Modernize

Regulate
Standardize

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
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without the author’s approval is prohibited.
Government Procurement Policy Board (GPPB)
Composed of the following:

▪ Chairperson: Secretary of Department of Budget


and Management
▪ Alternate Chairperson: Director-General of the
National Economic and Development Authority
▪ Thirteen (13) Regular Members
▪ Invited Resource Persons (audit, anti-corruption
agencies)

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without the author’s approval is prohibited.
Functions of the GPPB

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
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without the author’s approval is prohibited.
GPPB- Technical Support Office (TSO)

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10
without the author’s approval is prohibited.
Functions of the GPPB-TSO

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11
without the author’s approval is prohibited.
GPPB AND ITS TSO WEBSITE

www.gppb.gov.ph

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without the author’s approval is prohibited.
Knowledge
Check

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.
Knowledge
Check
Which of the following is a function of the GPPB?
a. Amend IRR of the procurement law
b. Establish a sustainable training program
c. Monitor procurement performance of Procuring
Entities
d. All of the above

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.
5 GOVERNING PRINCIPLES

1 3 5 STREAMLINED

PUBLIC MONITORING COMPETITIVENESS PROCESS

2 4
TRANSPARENCY
ACCOUNTABILITY

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Procurement as a Legal Concept

Simply stated,
Procurement is the
process of selecting
the process and
services which fit our
needs and provides
Sec 5, R.A. No. 9184 value for money
PHILIPPINE PROCUREMENT
Philippine Procurement Paradigm
PARADIGM
HOPE • Review studies HOPE
• Post/Advertise
• Consolidate into opportunity
Budget APP BAC
• Open and
Officer Assess • Decide Selection
evaluate bids
procurement TWG
• Post-qualify
BAC method • Award and enter
• Approve APP BAC Sec
BAC Sec
into contract
• Determine
readiness

End User Procurement Planning and Contract Management Unit End User
Management Unit

Identify • Cost-benefit • Oversee Implement


analysis implementation
• Feasibility study • Inspect and
• Market study accept deliveries
• PPMP

NEEDS SATISFACTION
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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.
Key Concepts on Government Procurement

Increased transparency
in the procurement
process

Use of the Approved


Budget for the Contract
(ABC) as ceiling of bid
price
Key Concepts on Government Procurement

Use of objective and non-


discretionary criteria

Use of Lowest Calculated


and Responsive Bid (LCRB) or
Highest Rated and Responsive Bid
(HRRB)

Simplified eligibility checking


Key Concepts on Government Procurement

Use of Lowest Calculated


and Responsive Bid (LCRB) or
Highest Rated and Responsive Bid
(HRRB)
KEY CONCEPTS ON GOVERNMENT PROCUREMENT

Professional
Procurement
Officials

Penal and Civil


Liabilities

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?
?
GOODS & ?
SERVICES
SUPPLIES &
SUBSCRIPTIONS MATERIALS
& LICENSES

All items, supplies, materials and general support


services, except Consulting Services and
REPAIRS Infrastructure Projects, which may be needed in the SECURITY &
JANITORIAL
transaction of the Procuring Entity. SERVICES

LEASE OF FURNITURES &


OFFICE SPACE OFFICE FIXTURES
EQUIPMENT

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WHAT IS INFRASTRUCTURE PROJECTS?
construction, improvement,
rehabilitation, demolition,
repair, restoration or
maintenance of:

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CONSULTING
SERVICES Other Technical
Services
or
Special
Advisory and Review Studies
Services

Design

Management and Related


Services
Pre-Investment or
Feasibility Studies

Construction
Supervision

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GENERAL MODE OF PROCUREMENT
GENERAL RULE:

COMPETITIVE BIDDING
Section 10, Article IV, RA No. 9184

exemption to the rule:


ALTERNATIVE METHODS OF
PROCUREMENT
under Rule XVI of IRR of RA 9184

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Procurement Methods

Highly Exceptional
Cases

To promote Economy
and Efficiency

Justified by conditions

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without the author’s approval is prohibited.
COMPETITIVE BIDDING

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PROCUREMENT STANDARD
NO APP

NO PROCUREMENT

The METHOD OF PROCUREMENT in


the approved APP shall be used.
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Scope and Coverage

National Government
Agencies State Universities and
Colleges

Government Owned
or Controlled
Corporations

Government Financial Local Government


Institutions Units

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without the author’s approval is prohibited.
Scope and Coverage

(with exceptions)
Scope and Coverage
SCOPE AND COVERAGE
Activities that are NOT CONSIDERED as
procurement undertakings under R.A. No.
9184 and its IRR

Direct financial or material assistance given


to beneficiaries

Participation to both local or foreign


scholarships, trainings, continuing education,
conferences, seminars or similar activities that
are governed by Commission on Audit, Civil
Service Commission, and Department of Budget
and Management rules.

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 Organization

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PROCUREMENT ACTORS

End-User

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HEAD
Head of OF THE PROCURING
Procuring Entity (HoPE) ENTITY (HoPE)

NGAs

GOCCs, GFIs, SUCs GOCCs, GFIs, SUCs

Head of the
Agency
Governing
Board Local Chief
Executive

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FUNCTIONS
Head AND
of Procuring RESPONSIBILITIES
Entity (HoPE) OF THE HoPE

Establishes Ensures
professionalization
BAC and Approves the
of the BAC, its
designates Secretariat and Annual
its members TWG Members Procurement
Plan (APP)

Approves or
Disapproves
the Contract
Resolves
of Award Protest

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OFFICER-IN-CHARGE AS HOPE

Approve or disapprove
the recommendation of
the BAC

NPM 102-2014

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Officer-in-Charge as HoPE

Powers and authority shall depend on the nature of the designation.

Unless there is no The incumbent HoPE The incumbent HoPE


reservation, OIC may may approve or may sign the Notice to
approve or sign: disapprove the Proceed when he was
recommendation of a BAC member but the
the BAC so long as contract must have
he is: been awarded by the
BAC Resolutions
Neither the Chairman previous HoPE.
Notice of Award nor a member of the
BAC who rendered the
Notice to Proceed recommendation
(Section of the IRR)

NPM 102-2014
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without the author’s approval is prohibited.
BIDS AND AWARDS COMMITTEE (BAC)

HoPE must Separate


create a single BACs may be
BAC created

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BIDS AND AWARDS COMMITTEE (BAC)

Head of the Procuring Entity

Approving Official of procurement contracts

Internal Auditors

Local Treasurers and Assistant Local


Treasurers

Chief Accountant or Head of the


Provincial/City/ Municipal Accounting Office
and staff

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.
MEMBERSHIP AND COMPOSITION FOR NGASS, GOCCS,
GFIS AND SUCS
REGULAR

Officer with
Technical Expertise
Legal or
Chairperson Finance Provisional Member
Administrative areas End-User
Representative

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BAC SECRETARIAT

HoPE may create a procurement unit to


act as BAC Secretariat

Head shall be at least 5th or 3rd Ranking


Permanent Employee or if not
available, permanent employee of lower rank
There is no minimum or maximum number of
members of the BAC Secretariat

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.
FUNCTIONS and RESPONSIBILITIES OF THE BAC SECRETARIAT

Provide administrative support to the BAC and


1 TWG Advertise/post bidding opportunities, including
Bidding Documents, and notices of awards 6
Organize BAC and the TWG meetings and
2 conferences
Assist in managing procurement process 7
Prepare Minutes of Meetings and Resolutions
3 of the BAC

Monitor procurement activities and milestones 8


Take custody of procurement of procurement
4 records
Consolidate PPMPs and prepare the APP 9
Manage the sale and distribution of Bidding
5 Documents
Act as central channel of communications 10

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.
TECHNICAL WORKING GROUP (TWG)

Legal Experts Review of the Technical Specifications, Scope of


Work, and Terms of Reference
Technical Experts Financial Experts

Shortlisting of Consultants and Eligibility


screening

Review of Bidding Documents

Evaluation of Bids and Evaluation of Bids

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END-USERS

Prepare actual Plan, prepare,


requirements of the finalize, revise
procurement project PPMPs

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Procurement Organizations

Each procuring entity shall establish a single BAC

HOPE shall designate at least 5-7 members of unquestionable


integrity & procurement proficiency

Prohibited BAC Members:


● HoPE and/or Approving Authority
● Chief Accountants & his/her staff, unless Accounting Office is
the End-User (COA Circular 2003-04)
● Local Treasurers & Assistant Local Treasurers (DOF DO No.
042-2019)
● Internal Auditors (Revised PGIAM, issued through DBM NBC
2020-8)
Procurement Organizations

Separate BACs may be created under any of the following


conditions:

● The items to be procured are complex or specialized;


● If the single BAC cannot reasonably manage the
procurement transactions as shown by delays beyond
the allowable limits;
● If the creation is required according to the nature of
the procurement.
Procurement Organizations

• Recommend approval of APP and


other reports
• Conduct bidding procedures
• Recommend approval of award to
HoPE
• Create TWG
• Periodic assessment
• Recommend sanctions
Alternate BAC Members

Presence in BAC meetings is considered for


purposes of quorum and shall be entitled to
the proportionate honoraria.

The relationship of the principal and the


alternate is of co-equal nature, rather than
hierarchical.

Accountability shall be limited to their


respective acts and decisions.

The same term as the original members

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without the author’s approval is prohibited.
Membership and Composition for NGASs, GOCCs, GFIs and
SUCs

Regular Members Provisional Members


Chairperson (3rd Ranking Permanent
Official) Officer Possessing technical
expertise relevant to the
Member representing the Legal or procurement
Administrative areas (5th or 3rd* Ranking
Permanent Personnel, of if not available, End User Representative
the next in rank)
Member representing the Finance Area
(5th or 3rd* Ranking Permanent
Personnel, of if not available, the next in
rank)
*In the case of bureaus, regional offices and sub-regional/district offices

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without the author’s approval is prohibited.
PROCUREMENT ORGANIZATIONS

● HoPE may create a procurement unit to act as


BAC Secretariat, subject to the rules and
guidelines of the DBM (DBM National Budget
Circular No. 2015-558 dated June 4, 2015)

● BAC Secretariat provides administrative


support to the BAC and TWG

● Head of the BAC Secretariat must be at least a


5th or 3rd ranking permanent employee or if
not available, a permanent official of the lower
rank.
BAC Secretariat Head

Functions:
Head of the BAC Secretariat Provide administrative support to the BAC and TWG
must be at least a 5th or 3rd
ranking permanent employee Organize BAC and TWG meetings and conferences
or, if not available, a Prepare minutes of meetings and resolutions
permanent official of the Take custody of procurement documents and other
lower rank. records
Manage the sale and distribution of bidding documents
Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
Assist in managing the procurement processes
Monitor procurement activities and milestones
Consolidate PPMPs and prepare the APP
Act as central channel of communications.
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without the author’s approval is prohibited.
BAC SECRETARIAT

HoPE may create a procurement unit to


act as BAC Secretariat

Head shall be at least 5th or 3rd Ranking


Permanent Employee or if not
available, permanent employee of lower rank
There is no minimum or maximum number of
members of the BAC Secretariat

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.
Philippine Procurement Paradigm
HOPE • Review studies HOPE
• Post/Advertise
• Consolidate into opportunity
Budget APP BAC
• Open and
Officer Assess • Decide Selection End User
evaluate bids
procurement TWG
• Post-qualify
BAC method • Award and enter
• Approve APP BAC Sec
BAC Sec
into contract
• Determine Procurement/
Procurement/ readiness Supply Unit
Supply Unit

End User Procurement/Supply Unit Procurement/Supply Unit End User

Identify • Cost-benefit • Oversee Implement


analysis implementation
• Feasibility study • Inspect and
• Market study accept deliveries
• PPMP

NEEDS SATISFACTION
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author’s approval is prohibited.
End User
Identify

RESPONSIBILITIES:
1) Identify goods and service requirements based on
actual needs but to consider Value for Money,
Alternatives and Propriety. (Cost-Benefit Analysis)

2) Determine technical specifications such as


functional description, performance,
environmental interface and design standard.

3) Set schedule of requirements.


4) Prepare the PPMP.
Procurement/Supply Unit/ (BAC Secretariat)
Identify

RESPONSIBILITIES:
1) Provide technical support to the End-User in
determining technical specifications.

2) Conduct market study to establish availability, cost,


and alternatives.

3) Coordinate with BAC, TWG, Finance Unit (Budget


Officer/Accountant), and HOPE in pursuing
procurement of the required goods and services.
4) Create and maintain the price monitoring list and
the registry of suppliers.
BAC Secretariat Assess

RESPONSIBILITIES:
1) Consolidate PPMPs of End-Users to APP

2) Assist BAC in the review of goods and


services to be procured, determination of
procurement method and formulation of
recommendations
3) Provide administrative support.
Procurement/Supply Unit
Assess

RESPONSIBILITIES:
1) May serve concurrently as the BAC
Secretariat or assist if not part of it.

2) Provide technical support.

3) Recommend procurement method to the


BAC.
BAC Assess

RESPONSIBILITIES:
1) Determine readiness to procure and
alternatives

2) Review and recommend to the HOPE the


APP containing the description of the project
(specifications), procurement method,
schedule and ABC.
Budget Officer Assess

RESPONSIBILITIES:
1) Review the APP particularly the estimated
budget to consider the agency plans and
budget and other priorities

2) Recommend to the HOPE the priorities for


procurement.
HOPE Assess

RESPONSIBILITIES:
1) Establish the BAC and Secretariat.

2) Ensure that the APP is regularly prepared,


reviewed and updated .

3) Decide on the recommendation of BAC and


Budget Officer (APP and Budget Approval)
BAC Secretariat Selection

RESPONSIBILITIES:
1) Provide administrative support to the BAC and TWG
2) Make necessary arrangements for the BAC & TWG
meetings
3) Attend BAC meetings as Secretary
4) Prepare Minutes of the BAC meetings
5) Take custody of procurement documents and be
responsible for the sale and distribution of bidding
documents
BAC Secretariat Selection

RESPONSIBILITIES:
6) Monitor procurement activities and milestones

7) Make arrangements for the pre-procurement and


pre-bid conferences and bid openings

8) Act as the central channel of communications

9) Assist the BAC in preparing drafts of BAC resolutions


BAC Secretariat Selection

RESPONSIBILITIES:
10) Prepare the procurement documents, i.e., purchase
orders, job orders, contracts, and their attachments
and route to the signing and approving authorities.

11) Monitor the status of the procurements routed for


approval, and cause the correction of any formal
deficiencies in the said procurement documents.

12) Administer PhilGEPS


BAC Selection

RESPONSIBILITIES:
1) Creation of the TWG, if necessary,
2) Undertake the advertisement and/or posting of the
invitation to bid.
3) Conduct pre-procurement and pre-bid conferences.
4) Determine the eligibility of prospective
5) Sole authority to receive and open bids.
6) Conduct the evaluation of bids with the assistance of
the TWG.
BAC Selection

RESPONSIBILITIES:
7) Undertake post-qualification proceedings, with the
assistance of the TWG.

8) Resolve motions for reconsideration

9) Recommend award of contracts to the HOPE

10) Recommend the imposition of sanctions

11) Prepare a PMR that shall be approved and submitted


by the HOPE
12) Invite Observers
TWG Selection

RESPONSIBILITIES:
1) Assist the BAC in the preparation of the bidding
documents

2) Assist the BAC in the conduct of eligibility


screening/shortlisting of prospective bidders

3) Assist the BAC in the evaluation of bids and prepare


the reports for the BAC’s consideration and approval
TWG Selection

RESPONSIBILITIES:
4) Assist the BAC in the conduct of post-qualification
activities and prepare the post-qualification summary
report for the BAC’s approval

5) Assist the BAC and BAC Secretariat in preparing the


resolution recommending award, with regard to the
technical aspect, if necessary
HOPE Selection

RESPONSIBILITIES:
1) Decide on the BAC recommendation for award, sign
Notices of Award and to Proceed

2) Resolve formal protest of bidders

3) Ensure that the BAC and the BAC Secretariat gives


utmost priority to BAC assignments over all other
duties and responsibilities

4) Impose administrative sanctions


RESPONSIBILITIES: Implement

END-USER
1) Oversee implementation

2) Inspect and accept delivered goods and services


Procurement/Supply Unit

1) All post award contract management activities

2) Monitor compliance with the terms and conditions of


the contract
3) Coordinate with the End-Users on the
Acceptance, and Finance Unit for payment
4) Initiate sanctions against erring suppliers.
PHILIPPINE PROCUREMENT
JURY DUTY
PARADIGM

HOPE/BAC/TWG/BAC Sec /
Procurement Unit

To expedite the procurement process, the HOPE shall


ensure that the BAC members, its Secretariat and TWG
shall give utmost priority to BAC assignments over all
other duties and responsibilities, until the requirements
for the procurement at hand are completed.
Section 14.3 of IRR

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author’s approval is prohibited.
Observers

Prepare and
Submit
Observation
Report Notify PE of
Conflict of Shall be invited, in writing at least five (5) calendar
Interest days before the date of the:

Eligibility Checking Preliminary Examination of Bids


Shortlisting Bid Evaluation
Pre-bid Conference Post-Qualification

Private Non-
Government
Organization
Commission
on Audit

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without the author’s approval is prohibited.
Observers

Allowed to access, free of charge: Online Access

Minutes of BAC Meetings Through own facilities of PEs until


such time the modernized PhilGEPS
Abstract of Bids becomes operational`
Post- Qualification Summary Report
In case, unable to provide the said
APP and related PPMP online access, PEs shall inform the
GPPB-TSO in writing by emailing
Opened Proposals
observers@gppb.gov.ph.

subject to signing of Confidentiality Agreement

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without the author’s approval is prohibited.
Knowledge
Check

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Overview of Standard Bidding
Procedures for Goods,
Infrastructure Projects and
Consulting Services

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STANDARD COMPETITIVE BIDDING PROCEDURE
FOR GOODS AND SERVICES & INFRA
Pre-Procurement Advertisement Pre-Bid
Conference 7 Conference 1 cd
cd as
necessary

Opening of 1st Envelope –


Submission of Opening of 2nd Envelope –
Eligibility Documents &
Financial Proposal
Bids 45 Technical Proposal

cd

Bid Evaluation Award


Post-qualification
and Ranking
12/
of Contract 15
7 cd
45 cd cd
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STANDARD COMPETITIVE BIDDING
PROCEDURE FOR CONSULTING SERVICES
>20 12/ 30
7 cd
cd cd
Pre-Procurement Eligibility Check Pre-Bid
Advertisement
Conference and Shortlisting Conference
30 cd
Before bid submission if with
international participation

>75
Bid Opening
cd

> 10 < 12
> 21 to 30 Award
Bid Evaluation cd cd Post- of Contract
Negotiation cd
Qualification

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
PROCUREMENT INNOVATIONS
THROUGH TECHNOLOGY
USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR
TECHNOLOGY
(GPPB Resolution No. 24-2018)

Procurement Activities that may be conducted electronically

All other procurement


Pre-Procurement Conference Bid Opening
activities/ meetings

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USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR
TECHNOLOGY
(GPPB Resolution No. 24-2018)

QUORUM
A member of the BAC (including
Chairperson and Vice-
Chairperson) may be present
either in person or face-to-face
through videoconferencing,
webcasting or similar
technology for PEs with such
technology

Decisions made of at least a majority of the BAC members present, using such
technology shall be considered valid and binding
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GUIDELINES ON THE GRANT OF HONORARIA

Bids and Awards Committee

Technical Working Group


(TWG)

BAC Secretariat (Ad Hoc)


The amount granted does not exceed
twenty-five percent (25%) of their
respective basic monthly salary

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.
GUIDELINES ON THE GRANT OF HONORARIA
DBM Budget Circular No. 2004-5A, dated 07 October 2005, as amended by DBM
Budget Circular No. 2007-3, dated 29 November 2007:

Only for successfully completed procurement projects

Limited to procurement that involves:


Competitive Bidding

Limited Source Bidding

Negotiated Procurement – Two Failed Bidding

Negotiated Procurement under Section 53(b) following the procedures


under Section 54.2(b)

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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.
GUIDELINES ON THE GRANT OF HONORARIA

BAC Secretariat Procurement Unit


(Ad Hoc)

HONORARIA

OVERTIME PAY

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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.
FUNDING SOURCE FOR THE HONORARIA

Proceeds from sale of bid documents

Proceeds from forfeiture of Bid Security

Fees charged from copies of minutes of bid openings,


BAC resolutions, and other documents
Fees from contractor/ supplier registry

Protest Fees

Savings of PE

Collections from SUCCESSFULLY completed procurement projects, limited to activities prior to


the awarding of contracts to winning bidders
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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.
AMOUNT OF HONORARIA
Maximum Honorarium Rate per Procurement Project

BAC Chair
Php 3,000.00
BAC Members
Php 2,500.00
BAC Secretariat (Ad Hoc)
& TWG
Php 2,000.00

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.
LEGAL INDEMNIFICATION
PACKAGE
FOR THE BIDS AND AWARDS
COMMITTEE

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.
LEGAL INDEMNIFICATION PACKAGE
WHAT is INDEMNIFICATION?
This refers to the assistance or remuneration given to the members of the BAC
and/or the BAC Support Staff for any loss, damage, or injury caused to them by
reason of the lawful performance of their duty.

General Conditions

1 FREE LEGAL
ASSISTANCE
2 LIABILITY
INSURANCE
3 MEDICAL
ASSISTANCE

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.
FREE LEGAL ASSISTANCE

Indemnified by PE Legal Assistance shall cover actual cost


and fees with maximum PhP 5,000.00
Engaged the services of a BAC MEMBER OR
per appearance
private lawyer or external
counsel Shall not cover any action or suit initiated SUPPORT STAFF
in personal capacity; and initiated by the
Have not been adjudged as Government against the concerned BAC
guilty of gross negligence, member or staff
misconduct, or grave abuse
of discretion Entitled to actual, moral and exemplary
damages

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.
LIABILITY INSURANCE

The procuring entity shall have the responsibility to procure and maintain adequate liability
insurance for and in behalf of its BAC members or BAC Support Staff.
The liability insurance policy shall cover only those liabilities asserted against the public official
and incurred by him in his capacity as such BAC members or BAC Support Staff as the case
may be.
The insurer shall pay for the loss arising from the claim or suit made against the BAC members
or BAC Support Staff during the policy period wherein they serve in such capacity.

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.
LIABILITY INSURANCE

For purposes of this issuance, the term “loss” shall include judgments, expenses for settlement
or compromise, as well as all reasonable fees and other expenses incurred by such persons in
connection with any administrative, civil, or criminal action, suit or proceeding to which they may
be or have been made a party by reason of the lawful performance of their official functions and
duties in such capacity.
Provided further, that, such BAC members or BAC Support Staff shall not be adjudged in such
action or proceeding to be guilty of gross negligence, misconduct, or grave abuse of discretion or
guilty of any other complaint or charges.

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.
LIABILITY INSURANCE

In the event of settlement or compromise, indemnification shall be confined only to matters


covered by the settlement, and to which the procuring entity had been advised by counsel that
the person to be indemnified have not committed gross negligence, misconduct, or grave abuse
of discretion in the performance of their duties and functions.

The procurement of liability insurance shall be subject to the setting of schedule of premium by
the GPPB.

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.
MEDICAL ASSISTANCE

Medical assistance shall be provided to BAC members and BAC Support Staff for
Injuries/disabilities incurred in the lawful performance of their official functions and duties.
The claimant(s) shall be entitled to indemnification for any injury or disability resulting from the
performance of their official functions as defined by law and without any contributory negligence
on their part.
The claimant or his/her relatives must notify the head of the procuring entity within seven (7)
calendar days from the occurrence of the injury or disability.

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.
MEDICAL ASSISTANCE

The medical assistance herein provided shall consist of indemnification for medicines, laboratory
and hospitalization expenses, provided that the amount claimed shall not exceed the actual
amount incurred, substantiated by receipts and other supporting documents.
Indemnification shall only be made upon presentation of the proof of payment in connection with
the injury or disability suffered.
The medical assistance granted herein shall be granted to the claimant as a matter of right and
subject to the conditions mandated by law.

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.
DROP YOUR
QUESTIONS
HERE!

Contact us:

THANK YOU!
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph

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